HB 212-LAND TRANSFERS ALASKA RR & EKLUTNA 8:06:25 AM CO-CHAIR FAIRCLOUGH announced that the first order of business would be HOUSE BILL NO. 212, "An Act authorizing the transfer of land from the Alaska Railroad Corporation to Eklutna, Inc.; and providing for an effective date." 8:06:43 AM BEN MULLIGAN, Staff to Representative Bill Stoltze, Alaska State Legislature, explained that HB 212 is land conveyance legislation in which land from the Alaska Railroad Corporation (ARRC) would be conveyed to Eklutna, Inc. In order for a land transfer to happen, ARRC has to request and obtain approval of the legislature to transfer the land known as the Eklutna Quarry, which is 48 acres [north of] Eagle River. Prior to the introduction of HB 212, ARRC, Eklutna, Inc., and the Native Village of Eklutna all worked out the logistics of what would occur with this parcel and signed a memorandum of understanding (MOU) to that effect. Everyone is [in agreement] with the deal and thus coming before the legislature is a formality. What has already been blasted in the quarry will be taken out and then the parcel will be conveyed to Eklutna. 8:09:12 AM CURTIS MCQUEEN, Corporate Affairs, Eklutna, Inc.; Native Village of Eklutna (NVE), thanked the committee for hearing this matter, which has been lingering for 30 years. Mr. McQueen related that Eklutna, Inc. has worked closely with NVE, which is the tribal side of the organization. Over 30 years ago, Eklutna was promised this land and quarry through the Alaska Native Claims Settlement Act (ANCSA). Although ARRC, Eklutna, Inc., and NVE don't have the best history in regard to finding resolution, Mr. Gamble has been very proactive in attempting to resolve this matter. Over the last two years, an agreement was reached after working closely with ARRC. 8:11:00 AM PAT GAMBLE, President & CEO, Alaska Railroad Corporation (ARRC), Department of Commerce, Community, & Economic Development, noted his agreement with Mr. McQueen in that ARRC hasn't had a great history with Eklutna as the 48 acres resulted in ARRC being taken to supreme court three times. However, there is rich potential with regard to the future of Eklutna. Mr. Gamble explained that after spending a day in NVE talking with the elders, he came to understand the deeper meaning of the quarry in relation to the culture. The aforementioned resulted a cultural approach to the solution. He echoed earlier remarks that the Railroad Transfer Act specifies that ARRC must obtain approval from the legislature to transfer land, which is why HB 212 is before the committee today. Mr. Gamble highlighted [the importance] of the relationship ARRC has established with Eklutna through this process as there is promising development for Eklutna and ARRC. The geographic area [of Eklutna] holds a considerable future and ARRC is already discussing the possibilities of development through the area. Mr. Gamble characterized this transfer as a "no-brainer" because the intention is to pull up rocks and finds on the ground, cleanup the property, possibly adjust the face of the quarry, and pull up the track. All of the aforementioned will be performed per the MOU. In conclusion, Mr. Gamble requested the committee's approval of the land transfer embodied in HB 212. 8:14:56 AM CO-CHAIR LEDOUX noted her appreciation for Mr. Gamble visiting NVE to actually see the situation. MR. GAMBLE said the visit made all the difference in resolving the matter. He commented that this land transfer doesn't hurt ARRC, which he characterized as a good value for the state and the right thing to do. 8:16:25 AM REPRESENTATIVE NEUMAN asked if any other reclamation is necessary to the area beyond taking out the rock that was blasted. MR. GAMBLE replied no. 8:17:24 AM CO-CHAIR FAIRCLOUGH asked if explosives will be able to be used to remove the materials off the property with 24-hour notice to the village. MR. GAMBLE replied yes, noting that's specified in the MOU. CO-CHAIR FAIRCLOUGH related her understanding that a conditional use permit will be required. The conditional use permit from planning and zoning that happened on December 4, 2006, specifies that ARRC shall seek jurisdiction from the U.S. Army Corps of Engineers (COE) and shall seek clean water authorization, as necessary, from COE and the Environmental Protection Agency (EPA). The document further specifies that ARRC will sod and hydro seed the site in order to maintain runoff and air quality. The aforementioned is located on page 2 of the document and is different than the MOU. She inquired as to which is the abiding document. MR. GAMBLE informed the committee that ARRC has already received the conditional use permit to pick up the rock. He said that he isn't familiar with the document to which Co-Chair Fairclough is referring and thus would need to obtain that information. CO-CHAIR FAIRCLOUGH said that she merely wanted the record to reflect how the site will be left and whether NVE and Eklutna, Inc. are happy with planning and zoning's expectations for ARRC to leave the site with some vegetation. She related her belief that NVE and Eklutna, Inc. may want to return the area to its natural habitat. 8:19:44 AM CO-CHAIR FAIRCLOUGH then turned to the disparity between the value of the materials coming off the site. She pointed out that the sponsor statement specifies that the value of the materials is approximately $2 million while a letter dated January 22, 2007, specifies that the value is $1 million. MR. GAMBLE specified that the correct value is $2 million. He explained that the $1 million was the first review of the property and the material on the ground. Given the market value of those materials at the time, the estimate was $1 million. However, once the actual tonnage and specific materials were determined, the estimate rose to $2 million. 8:21:12 AM JIM ARNESEN, Corporate Land & Regulatory Manager, Eklutna, Inc., informed the committee that Eklutna is interested in stopping the destruction. The area is barren rock and the residents don't want to sod and seed the area because there are no plans for the land at this point. He related that Eklutna, Inc. and NVE basically want the property to be returned as soon as possible and to be left in as original condition as possible. Mr. Arnesen then related that at one time Eklutna Reserve had 390,000 acres that was reduced to its current 1,200 acres around the village. Even within that 1,200 acres, other entities were allowed to come in and take various parcels from Eklutna. However, once ANCSA passed, Eklutna reclaimed some of its land. The parcel addressed in HB 212 was addressed in ANCSA, mentioned in the Alaska National Interest Lands Conservation Act (ANILCA) and the 3(e) agreements. Because the federal government was using the property at the time, it wasn't available for selection. However, the [federal] legislation included an allowance for a future transfer, which is what is occurring with HB 212. 8:23:47 AM REPRESENTATIVE NEUMAN inquired as to what will happen with the rail spur. MR. ARNESEN related his understanding that after ARRC removes the materials on the ground, the rail spur will be removed. 8:24:14 AM CO-CHAIR FAIRCLOUGH, upon determining no one else wished to testify, closed public testimony. CO-CHAIR FAIRCLOUGH, relating her perspective as a resident of the area, said that NVE and Eklutna, Inc. have been outstanding community partners. In fact, Eklutna has leased the land on which Chugiak High School sits for $1. She then applauded ARRC for taking a different direction, and noted that it benefits Alaska because it provides access to material that has been in dispute for many years. That material would reduce construction costs for future ARRC and highway projects. 8:26:41 AM CO-CHAIR LEDOUX moved to report HB 212 out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE SALMON objected. A roll call vote was taken. Representatives Olson, Cissna, Salmon, Neuman, LeDoux, and Fairclough voted in favor of reporting HB 212 from committee. Therefore, HB 212 was reported out of the House Community and Regional Affairs Standing Committee by a vote of 6-0. The committee took an at-ease from 8:28 a.m. to 8:30 a.m.