HB 197:  APPROP: ALYESKA SETTLEMENT                                          
                                                                               
  Number 028                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG, PRIME SPONSOR OF HB 197, gave                  
  an overview of the bill by saying the bill represents an                     
  agreement made last November between the United States of                    
  America, the state of Alaska, and Alyeska Pipeline Service                   
  Company.  The total of the lawsuit was $31.7 million.  He                    
  advised $28.2 is appropriated by HB 197 for a variety of                     
  projects and the remaining $3.5 million was paid to the                      
  federal government and the state of Alaska for expenses                      
  incurred in the process.                                                     
                                                                               
  REPRESENTATIVE OLBERG explained that $14.5 million is                        
  appropriated for the construction of dock facilities at                      
  Chenega and Tatitlek, $6 million is appropriated for                         
  construction of a road to Shepards Point from Cordova, $7.5                  
  million is appropriated as a contribution of the total price                 
  of the Kachemak Bay buy-back, and $200,000 is appropriated                   
  for communication equipment, which hopefully will be in the                  
  emergency center in Valdez.  This is a settlement that only                  
  occurred last November, he concluded.                                        
                                                                               
  Number 077                                                                   
                                                                               
  REPRESENTATIVE JOE SITTON asked Representative Olberg what                   
  part of the money was going to the road, and the cost of                     
  construction of the facility at Shepards Point.                              
                                                                               
  Number 086                                                                   
                                                                               
  REPRESENTATIVE OLBERG said the specific facilities have not                  
  been designed.  The $6 million is an estimate of what it                     
  will cost to build a road from Cordova to Shepards Point,                    
  build a staging facility, and the potential exists for a                     
  dock.  He further stated the significance for Shepards Point                 
  is that this is the nearest point to the City of Cordova,                    
  where a deep water port facility can be built.                               
                                                                               
  Number 106                                                                   
                                                                               
  REPRESENTATIVE SITTON asked if the road will go through Eyak                 
  lands.                                                                       
                                                                               
  Number 110                                                                   
                                                                               
  REPRESENTATIVE OLBERG stated as he understood it the road                    
  primarily crosses Eyak lands.                                                
                                                                               
  Number 115                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS asked if the committee was dealing                 
  with the committee substitute for HB 197 from the House                      
  State Affairs Committee.                                                     
                                                                               
  Number 118                                                                   
                                                                               
  VICE CHAIRMAN KOTT stated that was incorrect, that the                       
  committee was dealing with the original HB 197.                              
                                                                               
  Number 123                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS said he was in the House State                       
  Affairs Committee during their hearing on HB 197 and he is                   
  now more familiar with the bill.  He disclosed that in the                   
  State Affairs Committee, Kachemak Bay was pulled from the                    
  bill, and at that time they did not have the court decision                  
  in front of them.  He does not have any objections now, like                 
  he did at an earlier date, he added.                                         
                                                                               
  Number 139                                                                   
                                                                               
  VICE CHAIRMAN KOTT stated he was also in the State Affairs                   
  Committee meeting and felt the same way as Representative                    
  Davis.                                                                       
                                                                               
  Number 142                                                                   
                                                                               
  REPRESENTATIVE SITTON felt this committee was doing far                      
  superior work by sticking with the original HB 197.                          
                                                                               
  Number 149                                                                   
                                                                               
  MS. ANNE WIELAND testified on behalf of the KACHEMAK BAY                     
  CITIZEN'S COALITION.  She expressed support for replacing                    
  the $7.5 million for the Kachemak Bay buy-back and was glad                  
  to see it placed back in HB 197.                                             
                                                                               
  Number 178                                                                   
                                                                               
  REPRESENTATIVE DAVIS MOVED that HB 197 be moved out of                       
  committee with individual recommendations.  There being no                   
  objections, IT WAS SO MOVED.                                                 
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Number 181                                                                   
                                                                               
  VICE CHAIRMAN KOTT adjourned the meeting at 5:17 p.m.