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." REPRESENTATIVE ANNA FAIRCLOUGH, co-sponsor, introduced the bill. She explained that Eklutna has had a quarry with a stockpile of unusable material for a number of years. This legislation would authorize the Alaska Railroad Corporation (ARRC) to transfer its interest in the 48-acre quarry back to Eklutna, Inc. Issues on the conditional use process have yet to be worked out. She requested support for the bill to "right a wrong". Vice Chair Stoltze agreed that this issue needs to be resolved. 3:22:13 PM CURTIS MCQUEEN, DIRECTOR CORPORATE AFFAIRS, EKLUTNA INCORPORATED, related the history of the Alaska Railroad Corporation's relationship with Eklutna, Inc. He looked forward to resolving the issue. JIM ARNESON, LAND AND REGULATORY MANAGER, EKLUTNA INCORPORATED, explained how the land management agreement was reached. Mr. McQueen related support from Mayor Begich as well as many others. Representative Hawker asked about who will end up owning the $1 million worth of inventory. Mr. McQueen explained the conditional use process used. He spoke of support from the railroad. Vice Chair Stoltze described the importance of Eklutna's holdings and their commitment to education. 3:29:03 PM PATRICK GAMBLE, PRESIDENT & CEO, ALASKA RAILROAD CORPORATION, related the history of the problems and business issues surrounding the quarry. He shared how he learned of the village's perspective about the issue and the need for a cultural solution. He spoke of his journey to acquaint himself with Eklutna's concerns. He gave an example of the give and take during the process of transfer. He testified in support of HB 212. Vice Chair Stoltze pointed out that the Commissioner of Commerce is a member of the Board of Directors. 3:35:05 PM DENNIS FENERTY, GROH EGGERS, LLC, stated that his firm represents Wells Fargo. He related that Wells Fargo owns adjoining land to the railroad. A spur bisects Wells Fargo's parcel. He wondered if the railroad will be finished with the spur after the rock has been extracted. He stated concern that the bill not take action that would affect the spur. DAN ALEX, CHIEF, EKLUTNA, offered to answer questions. 3:39:16 PM Representative Hawker asked if the $2 million rock triggers any section 7(i) Alaska Native Claims Settlement Act (ANCSA) consequences for Cook Inlet Region, Incorporated (CIRI). Mr. McQueen reported that they have worked very close with CIRI, which supports the cultural approach. CIRI has worked closely with Eklutna on a river restoration project. Mr. Arneson thought that in 1998 or 1999 Congress changed the law regarding section 7(i) to exempt gravel from sharing amongst corporations. Representative Hawker wondered if there are any residual consequences for Cook Inlet. Mr. Arneson could not say. 3:43:41 PM Co-Chair Chenault suggested that further questions be asked of the organizations involved. HB 212 was heard and HELD in Committee for further consideration.