SENATOR MILLER announced  SJR 21  (THANK MEXICO FOR GRAY WHALE                
 PROTECTION) to be up for consideration.                                       
                                                                               
 CAROL CARROL, Legislative Aide to Senator Kerttula, stated that               
 gray whales no longer exist in the Atlantic Ocean and their status            
 in the western Pacific is uncertain, although it may be nearing               
 extinction.  Only in the northern Pacific is the species no longer            
 endangered.  Mexico has severely limited access to a number of                
 breeding and calving grounds to encourage growth of the species.              
                                                                               
 SENATOR ZHAROFF moved to pass  SJR 21  from Committee with individual    al   
 recommendations.  There were no objections and it was so ordered.             
                                                                               
 Number 150                                                                    
                                                                               
 SENATOR MILLER announced  SB 339  (MANAGEMENT OF STATE LAND AND               
 RESOURCES) to be up for consideration.                                        
                                                                               
 TOM BOUTIN, Director, Division if Forestry, explained section 20              
 provides that the Division of Forestry be able to offer sales under           
 certain conditions without the requirement in AS 38.05.113 that a             
 sale needs to be in a five year plan for at least the two prior               
 years.  Section 21 amends AS 38.05.118 allowing long term                     
 negotiated sales provided certain conditions exist.                           
                                                                               
 MR. GALLAGHER explained that section 22 is the only oil and gas               
 provision.  This removes a requirement that a lease sale be held              
 within 90 days of the quarter it's scheduled.                                 
                                                                               
 Section 23 allows the Commissioner to close land to mineral entry             
 in the future, but not valid existing rights.  Section 24 deletes             
 language to make it consistent with every other business in the               
 state of Alaska.  Section 25 they changed to make increments of $5            
 per acre annual rent rather than having it change at a specific               
 time so the Department can deal with whole numbers.                           
                                                                               
 Section 26 changes "permit" to a long term lease to accommodate               
 miners who are trying to get financing.  Section (b) exempts it               
 from competitive bidding procedures.                                          
 Section 27 clarifies language on "abandonment."  Section 28                   
 provides specific language to allow the Department to issue permits           
 for a slightly broader range of things than they have issued in the           
 past.  This is particularly in reference to reindeer grazing.                 
                                                                               
 Sections 29 through 32 are the conforming sections to the lands               
 package they discussed last week.  He highlighted the repealer in             
 38.05.207 which is the section on production licenses which were              
 constructed in 1983 as a defense against the 6 (i) challenge.                 
                                                                               
 SENATOR ZHAROFF asked if land that was used could be returned to              
 the state.  MR. GALLAGHER said that was not discussed in this bill,           
 but he said he was willing to discuss the issue with him.                     
                                                                               
 SENATOR ZHAROFF asked about the sections referring to fishing.  MR.           
 GALLAGHER said under the current scheme setnet sites and                      
 mariculture sites are treated different from every other type of              
 lease in the Department.  Section 16 - 18 put those authorizations            
 into the standard department process for issuance which is                    
 essentially competitive bidding.  SENATOR ZHAROFF said he saw a lot           
 of problems if fishing sites were made available on a bid process.            
 For one thing there is enough confusion out there in just getting             
 people to lease sites, let alone going through the process of                 
 bidding for a site location.  He noted that the lease fee had                 
 recently doubled without any public hearings or notification.                 
                                                                               
 MR. GALLAGHER said he would welcome discussion on this issue.                 
 SENATOR ZHAROFF said he saw a big problem with these provisions.              
 He said the system has been basically working, but if the bid                 
 process is used people from out of state will get the sites.