CHAIRMAN MILLER called the Resources Committee meeting to order at 3:10 p.m. and announced SB 210 (DISPOSAL OF DALTON HWY RIGHT-OF-WAY AY LAND) to be up for consideration. SENATOR SHARP explained the proposed CS to SB 210. Under current statute the state is prohibited from disposing of or leasing state land within five miles of the right-of-way of the Dalton Highway. He said total prohibition seems harsh since they have received testimony saying we need better communications up there. Number 75 SENATOR ADAMS asked if he preferred lease or sale of the property. SENATOR SHARP said he had no preference as long as the lease would be long enough to allow amortization of the type of facility that would be considered on utilities. SENATOR ADAMS said he agreed with that, but his real concern is lease/owning around the Dalton Highway because of the environment and subsistence migration. Number 94 RICK SMITH, Department of Natural Resources, said they support SB 210, because they have had difficulties because of the prohibitions. DOT has applied for material for upgrading the Dead- Horse airport that they are prohibited from issuing. They have had indications from Coldfoot Services that they would like to expand their lease to provide additional telephone services, among others. SENATOR ADAMS said the North Slope Borough did not have a position on this issue, yet, and asked how much land they were talking about and what is the market value of it. MR. SMITH said he didn't know the acreage. He said the state, a year ago, received and additional 615,000 acres from the federal government along the Dalton Highway. No market value has been done on that. The present fiscal note is $0, because they don't think it would substantially impact their operations at the time. Number 130 SENATOR FRANK asked if they were bound by some fair market value requirement in law? MR. SMITH answered they had that requirement when they process a lease. SENATOR ADAMS clarified his comment earlier stating he wanted a positive fiscal note if they were going to lease or sell land. SENATOR LEMAN asked him to describe in more detail the federal land the state received recently along the Dalton Highway. MR. SMITH said the land consisted of approximately 10 miles south of the Yukon River Crossing, the development at Coldfoot and Happy Valley, and a fairly large block of land located on the federal land north of Happy Valley, which went east/west. Number 155 SENATOR ADAMS asked how this would affect the portion of the Highway that is not open to the public. MR. SMITH answered that this legislation would not have any affect other than allowing telephone service at Coldfoot. If the Dalton Highway was every opened to the public, it would provide opportunity to supply service the public would need. Number 187 SENATOR ZHAROFF asked what was the length of the Dalton Highway. SENATOR FRANK said it was about 430 miles. Number 203 JUDY STOOP, Summit Telephone Co, Fairbanks, said they support SB 210, because they need it for efficient communications, especially at Coldfoot and Wiseman. They feel, as much as possible, that land should not be held by the state, but be available for purchase by the people of Alaska. Number 217 MICK MANNS, Paradise Valley, Bettles, supported SB 210, because of all the reasons listed. Also, he said it is unconstitutional and illegal to keep the road closed according to the Statehood Act. He said the Dalton Highway would have to be developed if we were to be competitive with other Pacific Rim nations and tourism. Number 241 DAVE LACEY, Manager, Yukon River Tours, Fairbanks, said he is involved in eco-tourism along the Dalton Highway. He opposed SB 210, because his clients want to see wilderness and undeveloped areas. They can see development anywhere in the lower 48. Tourism as an industry needs to protect what people come up here to see. Number 273 EARL FINKLER, City of Barrow, recalled that the original purpose of the prohibition was to protect the transportation and industrial functions of the corridor. He asked if there had been any study of how this would impact the future needs. He asked if there was a land use plan for the areas under question. Number 288 JERRY GALLAGHER, Department of Natural Resources, said this is a very limited piece of legislation authorizing only the Department to issue long term leases in some very specific and few development nodes that are already identified and have existing facilities - Coldfoot, Happy Valley, Franklin Bluffs, Yukon Crossing, and Dead Horse. He explained that their leases will soon expire. Number 327 REPRESENTATIVE THERRIAULT supported the proposed CS to SB 210. He thought there was some misunderstanding as to the intent. He supported Mr. Gallagher's testimony. The needs and areas are addressed very specifically and these activities are already going on along the road. Construction material can already be taken from the 5 mile corridor for maintenance of the road, but not for the airports. In addition, when many of the federal leases that have been taken over by the state expire, the state has no authority to reissue them without a change in statute. Number 327 SENATOR LEMAN moved to adopt the CS to SB 210(RES) (8-LS1110/E Luckhaupt). There were no objections and it was so ordered. SENATOR LEMAN moved to discharge CSSB 210 (RES) with individual recommendations. There were objections and Senator Miller asked for a roll call vote: Senator Miller, Senator Leman, Senator Frank, and Senator Pearce voted yes; Senator Adams and Senator Zharoff voted no and CSSB 210 (RES) passed.