03/03/2005 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB42 | |
| SB40 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 40 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 42 | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 3, 2005
1:40 p.m.
MEMBERS PRESENT
Senator Charlie Huggins, Chair
Senator John Cowdery, Vice Chair
Senator Albert Kookesh
Senator Hollis French
MEMBERS ABSENT
Senator Gene Therriault
COMMITTEE CALENDAR
HOUSE BILL NO. 42
"An Act naming the Joe Williams, Sr., Coastal Trail."
MOVED HB 42 OUT OF COMMITTEE
SENATE BILL NO. 40
"An Act relating to the establishment of the Kuskokwim Port
Authority; and providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 42
SHORT TITLE: JOE WILLIAMS, SR., COASTAL TRAIL
SPONSOR(s): REPRESENTATIVE(s) ELKINS
01/10/05 (H) PREFILE RELEASED 12/30/04
01/10/05 (H) READ THE FIRST TIME - REFERRALS
01/10/05 (H) CRA, TRA
01/20/05 (H) CRA AT 8:00 AM CAPITOL 124
01/20/05 (H) Moved Out of Committee
01/20/05 (H) MINUTE (CRA)
01/21/05 (H) CRA RPT 5DP
01/21/05 (H) DP: SALMON, LEDOUX, NEUMAN, OLSON,
THOMAS
01/21/05 (H) FIN REFERRAL ADDED AFTER TRA
02/08/05 (H) TRA AT 1:30 PM CAPITOL 17
02/08/05 (H) Moved Out of Committee
02/08/05 (H) MINUTE (TRA)
02/09/05 (H) TRA RPT 5DP
02/09/05 (H) DP: SALMON, NEUMAN, THOMAS, GATTO,
ELKINS
02/14/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/14/05 (H) Moved Out of Committee
02/14/05 (H) MINUTE (FIN)
02/16/05 (H) FIN RPT 9DP
02/16/05 (H) DP: HAWKER, WEYHRAUCH, CROFT, HOLM,
KELLY, STOLTZE, FOSTER, MEYER, CHENAULT
02/16/05 (H) ALL MEMBERS COSPONSORS
02/16/05 (H) TRANSMITTED TO (S)
02/16/05 (H) VERSION: HB 42
02/18/05 (S) READ THE FIRST TIME - REFERRALS
02/18/05 (S) TRA, CRA
03/01/05 (S) TRA AT 1:30 PM BUTROVICH 205
03/01/05 (S) Scheduled But Not Heard
BILL: SB 40
SHORT TITLE: KUSKOKWIM PORT AUTHORITY
SPONSOR(s): SENATOR(s) COWDERY, HOFFMAN
01/11/05 (S) PREFILE RELEASED 1/07/05
01/11/05 (S) READ THE FIRST TIME - REFERRALS
01/11/05 (S) TRA, FIN
02/03/05 (S) TRA AT 1:30 PM BUTROVICH 205
02/03/05 (S) <Bill Hearing Postponed to 02/08/05>
02/08/05 (H) TRA AT 1:30 PM CAPITOL 17
02/08/05 (S) Heard & Held
02/08/05 (S) MINUTE (TRA)
02/15/05 (S) TRA AT 1:30 PM BUTROVICH 205
02/15/05 (S) Scheduled But Not Heard
02/17/05 (S) TRA AT 1:30 PM BUTROVICH 205
02/17/05 (S) Heard & Held
02/17/05 (S) MINUTE (TRA)
03/01/05 (S) TRA AT 1:30 PM BUTROVICH 205
03/01/05 (S) Heard & Held
03/01/05 (S) MINUTE (TRA)
03/03/05 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
Mr. Jos Govars
Staff to Representative Jim Elkins
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Introduced HB 42
Mr. Mathew Nickoli, President and CEO
Calista Corporation
301 Calista Ct. Ste A
Anchorage, AK 99518
POSITION STATEMENT: Testified in support of SB 40
Mr. Max Angellan
No address provided
POSITION STATEMENT: Testified in support of SB 40
Mr. Thor Williams
Bethel City Councilman
P.O. Box 1388
Bethel, AK 99559
POSITION STATEMENT: Testified in support of SB 40
ACTION NARRATIVE
CHAIR CHARLIE HUGGINS called the Senate Transportation Standing
Committee meeting to order at 1:40:39 PM. Present were Senators
Albert Kookesh, Hollis French, John Cowdery and Chair Charlie
Huggins.
HB 42-JOE WILLIAMS, SR., COASTAL TRAIL
1:41:10 PM
CHAIR CHARLIE HUGGINS announced HB 42 to be up for
consideration.
SENATOR FRENCH moved Version \A as the working document. There
being no objections the motion carried.
1:41:32 PM
MR. JOS GOVARS, staff to Representative Jim Elkins, presented HB
42. Joe Williams Sr. was the mayor of Saxman for many years and
a well-respected citizen. Mr. Govars noted the many letters of
support in the packet of proposed legislation.
1:43:05 PM
CHAIR HUGGINS asked Mr. Govars if there was any opposition to HB
42.
MR. GOVARS replied no one has contacted Representative Elkins'
office with opposition. He has heard some negative talk around
Ketchikan referencing Mr. Williams in a personal nature.
CHAIR HUGGINS commented HB 42 was not new construction; it was
naming an existing trail.
MR. GOVARS agreed. The trail has been in place more than 8
years.
SENATOR JOHN COWDERY commented that opposition is frequently
personal.
MR. GOVARS replied naming something could always be problematic.
SENATOR COWDERY asked Mr. Govars if negative talk was
representative of the community of Ketchikan.
MR. GOVARS answered no.
CHAIR HUGGINS asked for an explanation of the fiscal note.
MR. GOVARS explained in the House Community and Regional Affairs
Standing Committee, the fiscal note from the Department of
Transportation and Public Facilities (DOTPF) regarded placing
the sign. The DOTPF estimated a cost of around $2,000, which
they later decided to fund. There was a fiscal note adopted in
the House Transportation Standing Committee, which the DOTPF
would fund.
1:46:32 PM
CHAIR HUGGINS asked for testimony and heard none.
SENATOR COWDERY moved HB 42 out of committee with individual
recommendations and attached fiscal notes. There being no
objection, the motion carried.
CHAIR HUGGINS announced a short at ease at 1:47:10 PM.
SB 40-KUSKOKWIM PORT AUTHORITY
1:48:48 PM
CHAIR HUGGINS announced SB 40 to be up for consideration. He
recognized Mathew Nickoli.
1:48:54 PM
MATHEW NICKOLI, President and CEO, Calista Corporation, spoke
via teleconference in support of SB 40. Calista is looking into
financing for infrastructure projects. Calista owns 6.5 million
acres of subsurface property. Calista has aggressively marketed
for exploration. As a result multiple mineral companies have
invested over $65 million. Mineral mining has been successful in
the past. SB 40 would have a major impact on the regional
economy. Transportation and energy are two major issues that
need resolved. The port in Bethel is maximized in the summer
months and cannot meet the needs of Donlin Creek development.
1:52:36 PM
Placer Dome can finance a port on their own but the region must
be involved for economic reasons. Calista wants to build a trust
between all participants and form a regional planning group
under SB 40 and work with all of the stakeholders. The group
would look at all the projects together keeping in mind the
subsistence activities of the region. Development is new to the
region and a regional planning group is needed to manage all the
projects. An alternative tax-exempt financing mechanism would
allow the stakeholders to take part in the most monumental
development project to take place in the region. Calista wants
to address financing alternatives to the project.
1:55:43 PM
When all of the resources at Donlin Creek are depleted and the
money companies leave, they want to have a financing structure
that would continue to bring in new, long-lasting projects. One
reason Calista seeks to have a port authority is because they
foresee the need for a port and road system to receive cargo and
fuel for transit up the Kuskokwim River. On many occasions, sea-
going barges have been stuck for weeks at a time just above
Napakiak.
1:57:30 PM
Donlin Creek will need transportation infrastructure that can
support the movement of 150,000 tons of construction material
and 110,000 tons of supplies. Calista anticipates providing many
jobs for its shareholders from the infrastructure.
1:58:41 PM
Due to economies of scale, sea, river and land transportation
costs will drop. Diesel and heating fuel will become economical.
1:59:39 PM
Borough formation is a politically sensitive issue. Calista
wants to start with a port authority because they see it as a
way to bring all the stakeholders together to address the
financing needs of the project and to assist with its
development.
2:01:05 PM
A community meeting with Napakiak showed support from the
community.
2:02:05 PM
Calista expects Placer Dome to complete its work to determine
the feasibility within a year or so.
2:02:44 PM
MR. NICKOLI said borough formation would take too much time to
move forward with development. He asked for legislative help and
hoped that Placer Dome would work with Calista for the
development of economic projects.
2:03:55 PM
Calista is trying to take a global approach to developing the
region to become prosperous. He summarized with support for SB
40.
2:04:37 PM
SENATOR COWDERY asked Mr. Nickoli whether he heard prior
testimony on the bill.
MR. NICKOLI responded he was in Washington DC but he was briefed
on the testimony.
SENATOR COWDERY noted there was extensive testimony from the
people of Bethel that was not positive. He asked the number of
villages represented in the proposed area.
MR. NICKOLI informed the immediate impact would be to Crooked
Creek. There are 19 total villages that would be affected on the
transportation route.
2:06:37 PM
SENATOR COWDERY asked whether the plan was to ship all the ore
or to do processing on site.
MR. NICKOLI said there was no determination yet. Placer Dome has
identified that they want private project financing.
2:10:41 PM
MR. NICKOLI added the negative testimony against the bill is not
representative of the region.
SENATOR COWDERY asked the number of people in the proposed area.
MR. NICKOLI responded approximately 9,000.
2:15:29 PM
SENATOR KOOKESH asked Mr. Nickoli whether he had discussions
with Kuskokwim Corporation.
MR. NICKOLI advised they presented a resolution at their January
meeting to address the multiple issues that affect Donlin Creek.
Their board decided not to take up the memorandum of
understanding that Calista wanted to move forward. The multiple
issues are business development, subsistence protection,
sustainability, remediation and land use, energy development,
and transportation.
2:18:07 PM
SENATOR KOOKESH asked whether there has been further discussion
on the memorandum of agreement and whether he was planning on
meeting with them.
MR. NICKOLI said he emailed the president so they have had
contact. Calista would like an agreement with Kuskokwim
Corporation.
2:19:43 PM
CHAIR HUGGINS suggested Mr. Nickoli contact his state
representatives for assistance.
2:27:14 PM
CHAIR HUGGINS asked the likelihood of putting a planning group
together.
MR. NICKOLI expressed confidence that it would happen. He added
the Kuskokwim River is a major river that provides sustenance to
the people. The impact of the Donlin Creek project would have a
tremendous affect on the people.
2:32:10 PM
CHAIR HUGGINS asked Mr. Nickoli to describe how mine would
proceed if the port authority doesn't happen.
MR. NICKOLI asserted Placer Dome could construct it but
landowners need the other projects to serve the people when the
gold is gone.
2:34:51 PM
MR. NICKOLI added SB 40 would open the door for economic
development. Crooked Creek residents support the project.
Kuskokwim Corporation would also benefit.
2:38:40 PM
CHAIR HUGGINS asked him to characterize the impact factors along
the river for economic development.
MR. NICKOLI said fisheries have always sustained jobs in the
region. Federal subsidies have created jobs and the health
corporation employs over one thousand people but those are
federal monies coming in. He said he is thinking of private
money. Since he has been president he has heard from the people
they want resource development from private companies. Mining
and resource development are the key.
2:42:03 PM
SENATOR COWDERY asked the life of the Donlin Creek project.
MR. NICKOLI speculated a 20-30 year life.
2:43:20 PM
SENATOR COWDERY stated it would be a big asset if it happened.
He asked the reason that Placer Dome has been silent.
MR. NICKOLI said last year they wrote a letter on another port
authority because Calista asked them to. Placer Dome feels this
is a political issue and they don't need a public port. They
could do the project on their own.
2:49:02 PM
SENATOR COWDERY asked him to contact the people who are opposed
to SB 40 and turn them around.
MR. NICKOLI said, "We will."
2:49:21 PM
CHAIR HUGGINS asked Mr. Nickoli to act as an energizing force to
bring the community together on SB 40.
MR. NICKOLI invited legislatures to visit the impacted villages.
2:52:12 PM
MR. MAX ANGELLAN, testified via teleconference in support of SB
40. He said he lives in a village that is 20 miles east of
Bethel and he is concerned about the cost of living in the
future.
2:59:04 PM
MR. THOR WILLIAMS offered his support on SB 40.
CHAIR HUGGINS asked for a resolution from the City of Bethel.
SENATOR COWDERY asked about commerce on the river in winter.
MR. WILLIAMS said trucks move up and down the river in winter on
ice that is 3-4 feet thick.
CHAIR HUGGINS held SB 40 in committee.
There being no further business to come before the committee,
Chair Huggins adjourned the meeting at 3:04:05 PM.
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