CHAIRMAN MILLER called the Resources Committee meeting to order at 3:36 p.m. and announced SB 280 (ESTABLISH AFOGNAK ISLAND STATE PARK) to be up for consideration. CRAIG TILLERY, Department of Law, said SB 280 establishes Afognak Island State Park from lands that were acquired by the Exxon Valdez Trustee Council from the Seal Bay Timber Company. This area was ranked as second in importance in habitat value. The United States expressed a strong desire to acquire these lands. The state trustees said no and indicted that if they were to be acquired it was to be under state ownership. The United States agreed, but added that the lands would have to go within a state park within one year, by November 23, 1994. MR. TILLERY said SB 280 is supported by the Kodiak Island Borough, the City of Kodiak, the Kodiak Chamber of Commerce, fishing organizations, tour operators, visitor associations, and many Kodiak area citizens. It is supported by Koncor Forest Products, the timber company that operates in the area and the Alaska Forest Association. Mayor Selby has written a letter to the Governor saying no jobs were lost as a result of this acquisition, MR. TILLERY said. Number 85 There is a new provision in this bill on page 1, line 5 adding to existing rights, "including those rights created by the Afognak Island Road Use Agreement executed on July 24, 1991 and as amended from time to time." There is a new section on page 2, line 7 relating to existing rights, as well. SENATOR LEMAN asked if subsurface estate becomes part of the park with its purchase. MR. TILLERY said that is correct. Number 175 SENATOR LEMAN moved to adopt the CS to SB 280 (RES) for discussion purposes. There were no objections and it was so ordered. SENATOR FRANK asked what kind of restrictions there were. MR. TILLERY said there is a restriction against commercial timber harvest and a restriction on the disposal, also. If there is an attempt to convey the property to an entity other than the state, it would revert to the Nature Conservancy which would be required to deed it over to the federal government, he explained. SENATOR LEMAN asked if the state could, at some time in the future, change the classification of the land and then have to repay the trustee council. MR. TILLERY guessed that it could be changed, but it would have to be done before the trustee council was out of business or done through a court action. SENATOR MILLER asked if any new commercial hunting and fishing lodges could be added. MR. TILLERY said there is no lodge in the park, but the lodges use the park. They do not want to prohibit that, because it is a restoration purpose. Number 245 SENATOR FRANK asked if there were other examples of this type of ownership. MR. TILLERY explained that this was not dissimilar to other parks, but that the Exxon Valdez settlement was unprecedented. Number 266 SENATOR FRANK asked what was the purchase price. MR. TILLERY answered $38.7 million, or about $900 per acre. CHUCK MEACHAM, Deputy Commissioner, Department of Fish and Game, said they strongly support this legislation. NEIL JOHANNSEN, Director, Division of Parks, said the DNR supports the legislation. Number 340 SENATOR ZHAROFF moved to pass CSSB 280 (RES) from Committee with individual recommendations. There were no objections and it was so ordered.