SB 190-KENAI RIVER SPECIAL MANAGEMENT AREA                                                                       
                                                                                                                                
CHAIR SCOTT  OGAN called the Senate  Resources Standing Committee                                                             
meeting to order at 3:32  p.m. Present were Senators Ben Stevens,                                                               
Ralph Seekins,  Kim Elton and  Chair Scott Ogan. The  first order                                                               
of business to come before the committee was SB 190.                                                                            
                                                                                                                                
MS. AMY SEITZ, staff to Senator  Wagoner, sponsor of SB 190, said                                                               
the  bill  had been  discussed  last  Monday  and there  were  no                                                               
changes. However,  Senator Elton wanted  to know how  moving EVOS                                                               
(Exxon Valdez  Oil Spill) lands  into KRSMA (Kenai  River Special                                                               
Management Area)  would affect oil  and gas development.  She was                                                               
told  that  the conservation  easements  in  the EVOS  purchasing                                                               
agreement  would  not change  when  the  parcels are  moved  into                                                               
KRSMA.                                                                                                                          
                                                                                                                                
SENATOR KIM ELTON  said he appreciated the  Department of Natural                                                               
Resources' work  and Chair Ogan  asked that its memo  be included                                                               
in the record, which follows.                                                                                                   
                                                                                                                                
        · The subsurface estate is the dominant estate                                                                          
        · EVOS  conservation  easements  only apply  to  the                                                                    
         portion of the estate acquired with EVOS funds                                                                         
        · The  use  of lands  acquired  with  EVOS funds  is                                                                    
          controlled  by  the   terms  of  the  conservation                                                                    
          easements on them. The  KRSMA designation does not                                                                    
          affect the conservation easements                                                                                     
        · Conservation easements associated  with EVOS lands                                                                    
          apply to  the specific land interest  acquired. If                                                                    
          the  subsurface  estate  was not  a  part  of  the                                                                    
          purchase, the  conservation easement  cannot limit                                                                    
          access  to the  mineral estate  any more  than the                                                                    
          surface  owner of  any parcel  of  land can  limit                                                                    
          access to the minerals underlying his estate                                                                          
        · Typically,  we  did  not  acquire  the  subsurface                                                                    
          state  with  EVOS funds.  If  we  did acquire  the                                                                    
          subsurface  estate  on  any  of  the  EVOS  funded                                                                    
          parcels,  utilization  of  the  minerals  on  that                                                                    
          specific parcel  would be limited by  the terms of                                                                    
          the conservation easement                                                                                             
        · Typically, the oil  and gas rights on  many of the                                                                    
          EVOS acquired parcels  were previously conveyed to                                                                    
          the State of  Alaska via patent and  as such would                                                                    
          be  subject  to  the  terms  of  the  conservation                                                                    
          easement                                                                                                              
        · Generally,  the  conservation   easement  on  EVOS                                                                    
          acquired   parcels  is   consistent  with   Parks'                                                                    
          management intent and the KRSMA designation.                                                                          
        · The  conservation   easement  has  no   effect  on                                                                    
          adjacent parcels                                                                                                      
                                                                                                                                
SENATOR  BEN STEVENS  moved to  pass CSSB  190(STA), version  \I,                                                               
from  committee   with  attached   fiscal  note   and  individual                                                               
recommendations. There were no objections and it was so ordered.