HB 76:  APPROP: KACHEMAK BAY ST. PK.TIMBER RIGHTS                            
                                                                               
  Number 044                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS, PRIME SPONSOR OF HB 76,                        
  briefly described the background of the Kachemak Bay State                   
  Park timber rights purchase, which she said had been an                      
  issue in Alaska for almost twenty years.  Lands were set                     
  aside for Kachemak Bay State Park but private lands within                   
  the park became an issue when they were granted to the                       
  Seldovia Native Corporation as part of the Alaska Native                     
  Interests Lands Claim Act (ANILCA).  Attempts at land trades                 
  and sales have not been successful, she said.  The state now                 
  has the means to make a settlement, she explained, without                   
  any money coming from the general fund.                                      
                                                                               
  REPRESENTATIVE PHILLIPS noted the events that have occurred                  
  relating to financing the timber rights purchase.  She                       
  alleged $20.5 million was deposited in the Alyeska                           
  Settlement Fund for an agreement and consent decree in a                     
  civil settlement entered into on November 20, 1992.  This,                   
  she said, included an allotment of $7.5 million for the                      
  purchase of the inholdings of Kachemak Bay State Park.                       
  Additionally, the Exxon Oil Spill trust Council approved                     
  $7.5 million from the Exxon Settlement Fund for Kachemak                     
  Bay.                                                                         
                                                                               
  REPRESENTATIVE PHILLIPS said the purpose of the $7 million                   
  appropriation requested in HB 76 will come out of the Exxon                  
  criminal settlement fund that was not appropriated and not                   
  spent in 1992.  On March 4, 1993, she explained, Governor                    
  Hickel formally announced an agreement between all parties                   
  concerned to buy back the private inholdings in Kachemak Bay                 
  State Park.  She said the agreement was formally signed by                   
  Seldovia Native Association, Cook Inlet Region, Timber                       
  Trading Company, and the state of Alaska.                                    
                                                                               
  Number 097                                                                   
                                                                               
  REPRESENTATIVE PAT CARNEY asked Representative Phillips to                   
  clarify whether the governor had already signed that                         
  agreement.                                                                   
                                                                               
  REPRESENTATIVE PHILLIPS explained that a copy of the                         
  purchase agreement was in committee members' packets, and                    
  constituted an agreement toward which the money would come                   
  from the three components she described.  (A copy of the                     
  purchase agreement may be found in the House Resources                       
  Committee Room, Capitol Room 124, and after the adjournment                  
  of the second session of the 18th Alaska State Legislature,                  
  in the Legislative Reference Library.)                                       
                                                                               
  CHAIRMAN WILLIAMS noted for the record that Representative                   
  Cliff Davidson was present, as well as Representative Tom                    
  Brice.                                                                       
                                                                               
  Number 110                                                                   
                                                                               
  VICE CHAIRMAN HUDSON asked whether a previously raised                       
  question regarding subsurface rights had been resolved.                      
                                                                               
  REPRESENTATIVE PHILLIPS answered that the issue had been                     
  resolved and was included in the agreement, signed for and                   
  agreed upon by Cook Inlet Region.                                            
                                                                               
  REPRESENTATIVE JOHN DAVIES noted that he intended to sign                    
  "do pass" on the bill.                                                       
                                                                               
  REPRESENTATIVE CON BUNDE MOVED to pass HB 76 from the                        
  committee with individual recommendations.  He asked                         
  unanimous consent.                                                           
                                                                               
  CHAIRMAN WILLIAMS asked whether anyone else wished to                        
  testify on HB 76.  Hearing none, he asked whether there were                 
  any objections to the motion.  Hearing none, the MOTION                      
  PASSED.