HB 113-STAMPEDE STATE RECREATION AREA  5:08:21 PM CO-CHAIR FEIGE announced that the final order of business would be HOUSE BILL NO. 113, "An Act creating the Stampede State Recreation Area." 5:08:42 PM REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature, referred to a map provided in the committee members' packets that identifies the location of the proposed Stampede State Recreation Area. 5:09:44 PM The committee took an at-ease from 5:09 p.m. to 5:10 p.m. 5:10:36 PM REPRESENTATIVE GUTTENBERG explained that HB 113 would establish a state recreation area in the Stampede Road corridor, northwest of Healy and flanked on three sides by the Denali National Park. He described the land surrounding the proposed recreational area as federal land. The people of the Denali Borough, which this is part of, have decided to take control and create a recreation area to allow for traditional activities, ranging from walking to operating monster trucks. He explained that the Alaska Supreme Court made the Denali Borough part of the Fairbanks legislature district during legislative redistricting. 5:11:56 PM REPRESENTATIVE GUTTENBERG offered his belief that the Denali Borough was created to prevent the Matanuska-Susitna Borough from extending north and the Fairbanks North Star Borough from extending south. The Denali Borough decided to turn this area into a recreational area and wishes to allow traditional uses. New trails cannot be put into place without undergoing a planning process, he said. He characterized the process of creating the recreational area as an inclusive process. He reiterated that the proposed Stampede Recreation Area would not exclude any customary uses and he commended the people in his district for doing a good job. 5:14:02 PM CO-CHAIR FEIGE inquired as to whether the land is currently state land. REPRESENTATIVE GUTTENBERG answered yes. CO-CHAIR FEIGE asked what for the advantage to designate the land as a recreation area. REPRESENTATIVE GUTTENBERG answered it puts into place that an advisory board will decide what would be allowable in the proposed recreation area. 5:14:56 PM REPRESENTATIVE P. WILSON asked him to describe the planning process and what it would entail. REPRESENTATIVE GUTTENBERG responded that the Denali Borough would consider any new activities in the proposed Stampede State Recreation Area such as whether to build a new trail, add a parking lot with picnic tables, or other recreational activities that cannot occur on state land without undergoing the planning process. 5:15:25 PM REPRESENTATIVE P. WILSON related her understanding that the land is surrounded by federal land. She asked for the current designation of the proposed land. REPRESENTATIVE GUTTENBERG answered that the proposed Stampede State Recreation Area is state land surrounded by federal land. In further response to Representative P. Wilson, he indicated that the state land is currently without any designation. 5:15:55 PM REPRESENTATIVE MUNOZ asked whether any current applications for land use are underway. REPRESENTATIVE GUTTENBERG answered yes. He explained that the Usibelli Coal Mine, Inc. has some has some gas leases that may touch the northern boundary, although these leases do not cross the national park. 5:16:25 PM REPRESENTATIVE MUNOZ inquired as to whether the designation of the proposed state recreation area would affect any of the applications. REPRESENTATIVE GUTTENBERG answered he did not think so. 5:17:07 PM REPRESENTATIVE MUNOZ again asked whether any land use applications would affect the proposed site and how this bill, if passed, would affect land use. BEN ELLIS, Director, Central Office, Division of Parks & Outdoor Recreation, answered that limited data is available, but the department believes some gas potential may exist. He offered to have someone else from the department provide additional information. 5:18:01 PM REPRESENTATIVE DICK referred to a letter from Steve Borell of Alaska Miners Association opposing the designation. He read a portion of the letter, including the state has 8.5 million acres designated as parks, refuges, and other land closed to multiple uses. He asked the legislature to not block any additional state lands. REPRESENTATIVE GUTTENBERG understood the letter was one just received. 5:18:52 PM REPRESENTATIVE DICK asked for further clarification. REPRESENTATIVE GUTTENBERG answered the letter goes right to the point that the proposed designation of the proposed Stampede State Recreation Area would not preclude anything, but would allow for a planning process for the area. He acknowledged some gas potential may exist in the area, plus the Usibelli leases dip into the area. He explained that the intent is not to lock up any land, but to establish a planning process to decide what could happen in the area. He did not think anything was being precluded. He offered his view that the people in the Denali Borough are as open to economic development. He agreed the question raised is a good question to ask, but he maintained no activity would be precluded from planning. 5:20:15 PM CO-CHAIR SEATON said he was not familiar with the restraints of the planning process in a state recreation area. He inquired as to whether such a designation would limit oil and gas and mining activities. MR. ELLIS answered that he did not think so, but there could be exceptions. He offered to research this and get back to the committee. CO-CHAIR SEATON requested an answer be sent to the committee in writing. 5:21:35 PM REPRESENTATIVE KAWASAKI referred to Section 1 of HB 113, which discusses the purpose of the proposed Stampede State Recreation Area. The second part of the bill deals with incompatible uses and seems to say that if the uses are incompatible with the primary purposes of the recreation area that it would be up to the ADF&G to determine what would be allowed. The bill goes on to outline what the commissioner cannot restrict. He inquired as to whether language could be added that firms up the commissioner cannot restrict natural resource development such as the oil and gas development outlined in the Alaska Miners Association letter. REPRESENTATIVE GUTTENBERG offered his belief the letter from the Alaska Miners Association made some big assumptions. He reported that currently there is not any active exploration. He understood leases to the north of the area have some oil and gas activity. He explained that some people in the Denali Borough would like restrictions and a significant number of the residents do not want restrictions. These residents recognize any gas activity could enhance their economic ability. At this time there are not any inholders in this area. The land does not contain timber, but consists of high alpine country. He indicated that as sponsor of HB 113, he did not object to ensuring oil and gas activity would not be restricted. 5:23:47 PM REPRESENTATIVE KAWASAKI asked whether transiting the proposed Stampede State Recreation Area would be considered a compatible use in the event that potential oil and gas leases were adjacent to the area, but required crossing the proposed recreation land. REPRESENTATIVE GUTTENBERG answered that if oil and gas facilities existed, access would be by roads directly to the east on state or borough land or else the parties would need permitting from the National Park Service (NPS). 5:24:38 PM ROGER HEALY, Director/Chief Engineer, Division of Statewide Design & Engineering Services, Department of Transportation & Public Facilities (DOT&PF) referred to the department's testimony during the 26th legislature on a similar bill. He said the DOT&PF recommends reservation of a corridor not currently included in the proposed Stampede State Recreation Area bill for future transportation and utility infrastructure. This corridor would not consist of an easement, but would be a reservation of a corridor for rights-of-way purposes. Based on lack of survey and resource information, the department recommends a corridor 1,000 feet wide, 500 feet on either side of the centerline of the existing R.S. 2477 route, running the length of the route and connecting to existing infrastructure on the east end. He reported that the DOT&PF does not have any immediate plans for transportation infrastructure along the corridor and it also does not anticipate any long-term plans. However, the DOT&PF still recommends corridor reservation for transportation, and utility infrastructure would provide future Alaskans with the opportunity for transportation, energy resource, and recreation that may develop over time that is currently unknown. Additionally, it would also provide Alaskans an opportunity to enhance recreational opportunities in the proposed recreation area that cannot be seen or predicted today. 5:26:26 PM CO-CHAIR SEATON indicated the map in members' packets does not show the R.S. 2477 trail. He asked for clarification on the location, in general terms, and whether it is a single trail. MR. HEALY responded that the R.S. 2477 trail basically runs along the old Stampede road and generally along the northern portion of the proposed recreation area. He recalled the route was shown on maps on a similar bill and that is what he is looking at today. CO-CHAIR SEATON related his understanding the R.S. 2477 trail is located in the upper quadrant of the map. MR. HEALY answered that he is correct. 5:28:11 PM HANNAH RAGLAND, Friends of Stampede, stated local residents via the assembly initiated the process for the proposed Stampede State Recreation Area in 2006. Since October 2010, the local residents created an informal group to support the recreation area and other local issues. She reported that over 50 people have attended meetings and over 70 local people are on their e- mail list. She reported that the group has received statewide support and little or no opposition. She explained that the area is a pretty special place that has historically been used for recreation. It has seen more and more use, as well as an increase in search and rescues as people try to find Christopher McCandless's bus. She recalled a Swiss resident drowned while crossing a river in the area last summer. She pointed out that public safety issues will need to be addressed by establishing a recreation area. She concluded by reiterating local support for the bill. She encouraged members to pass HB 113. 5:30:27 PM JON NIERENBERG, Lodge Owner, said he has resided at Mile 4, Stampede Road in Healy since 1983. He has lived for 13 years on a remote homestead, building his home and business on Stampede Road in 1996. He and his wife own and operate EarthSong Lodge and several other tourism businesses year round. The proposed Stampede State Recreation area would directly impact his personal and professional life. He asked to place on the record that he supports the proposal and all the goals of the Friends of Stampede local advocacy group and Denali Citizen's Council. He said his commercial operations relies 100 percent on the scenic and recreational values the proposed recreation area would protect and guarantee. He reported that their visitors come from all over the country and world, including visitors to the Denali National Park who stay at his lodge as an alternative to the commercial, overdeveloped establishments near the national park entrance. Visitors spend time at the lodge, hike, and berry pick along the road, and some hike the Stampede trail out to the bus from the film Into the Wild on the Sushana River. 5:32:03 PM MR. NIERENBERG related that his winter guests seek an authentic, natural wilderness dogsled experience. He holds a concession for guiding in Denali National Park, which is accessed through the Stampede corridor, the Wolf townships, and the proposed Stampede State Recreation Area. He predicted that the proposed Stampede State Recreation Area would guarantee all tourist- related businesses some measure of security against conflicting development and other activities. He predicted the future of this area lies in tourism and recreation for visitors and local Alaskans. He said he came to the area for its spectacular recreational resources. 5:33:09 PM MR. NIERENBERG reported in addition to a few other inholdings in the Stampede State Recreation Area, that his homestead would be an inholding in the proposed recreational area. However, he still supports the designation of the proposed Stampede State Recreation area. He offered his belief that too few protected lands are available for current traditional uses. He envisioned a land unit that would continue to allow for diverse activities for local residents. He said that protecting this area would demonstrate the legislature's commitment to proactively guarding the local resident's way of life. He urged members to move forward with creation of the Stampede State Recreation Area to better serve the residents of Healy, all Alaskans, and visitors from around the world. 5:34:36 PM CO-CHAIR SEATON referred to page 3, lines 14-15 of HB 113. He related his understanding that the language indicates that the commissioner shall minimize additional infrastructure in order to maintain the natural character of the area. He asked whether that would that limit the ability of residents to plan. He said it seems to say that the commissioner's duty shall not allow activities such as a natural gas line. He asked if this provision is essential to the bill. REPRESENTATIVE GUTTENBERG responded that it has always been the intent that in situations like that the commissioner has the ability to make exceptions. He related his understanding that the commissioner could allow for natural gas development under the existing language. 5:36:28 PM CO-CHAIR SEATON asked the sponsor to confirm with the commissioner whether this specific language would restrict the department with respect to approving infrastructure. He also suggested that the sponsor confirm his constituent's intentions with respect to removing infrastructure decisions from the local planning process. REPRESENTATIVE GUTTENBERG agreed to do so. He noted he received an e-mail from his constituents and other testimony was given that confirmed his understanding that the local residents understood the commissioner would have the ability to allow resource development to happen. He offered to confirm this and provide additional information to the committee. 5:37:43 PM [HB 113 was held over.]