SENATE BILL NO. 307                                                     
       "An Act authorizing the Department of Natural Resources                 
  to   exchange with the federal government state land within,                 
  and  adjoining, Dude Creek Critical Habitat Area for federal                 
  land      adjacent  to  Fall  Creek;  and  providing  for an                 
  effective date."                                                             
                                                                               
  Senator  Frank  explained  that  this   bill  related  to  a                 
  hydroelectric  project  for  Gustavus  and  the  bill  would                 
  authorize  the  necessary  land  exchange  with the  federal                 
  government.  Senator Zharoff said the project was being done                 
  at local initiation and this was a worthwhile consideration.                 
  There was no  opposition from the  City of Gustavus to  this                 
  project.                                                                     
                                                                               
  Mr.  Nico  Bus  was  invited  to  join the  committee.    He                 
  explained the  fiscal note  and said  he would  enter a  new                 
  fiscal note reflecting  the monied  changes as requested  by                 
  the committee.                                                               
                                                                               
                                                                               
  Dick Mylius, DNR and John  Baker, Assistant Attorney General                 
  testified via  teleconference  from Anchorage.   Mr.  Mylius                 
  addressed provisions that apply and those that did not.  Mr.                 
  Baker  referred  to  the land  exchange  statute  to protect                 
  public access and mineral rights.                                            
                                                                               
  Senator Frank moved  amendment #1  and without objection  it                 
  was adopted for inclusion into a new CS.  He further moved a                 
  conceptual  amendment on page 2, line 9, deleting  "another"                 
  and  inserting   "any other"  and without  objection  it was                 
  adopted.    Senator Frank  moved  CSSB 307(FIN)  and without                 
  objection    it   was    reported   out    with   individual                 
  recommendations and adjusted fiscal note  to be submitted by                 
  the Department of Natural Resources.                                         
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Co-chairman Halford adjourned the meeting at 11:00 A.M.