CHAIRMAN PHILLIPS announced that the committee would have a substantive hearing on SB 263-AFTER ACQUIRED TITLE IN REAL  PROPERTY. MR. JON TILLINGHAST, representing Sealaska Corporation, explained the intent of SB 263 is to allow ANCSA regional corporations, as the owner of the subsurface, to work out acceptable use agreements with owners of surface rights. The Senate Judiciary Committee decided to restrict SB 263 to ANCSA property because that's where the initial problem arose. Sealaska supports that decision. He noted that a drafting problem arose in the Senate Judiciary substitute in that it can be read to say that the bill only applies if the surface owner is a Native corporation. That was not the intent: the intent is that it applies to ANCSA property no matter who owns the surface. The proposed Senate Rules Committee Substitute (CS) removes that ambiguity (page 2, lines 3-6) by defining ANCSA property as real property that at some point in the chain of title came from the federal government to a regional corporation. It will apply to property that has been reconveyed several times. SENATOR ELLIS moved to adopt the Senate Rules CS as the working document of the committee. There being no objection, the motion carried. SENATOR ELLIS moved CSSB 263(RLS) and its accompanying fiscal notes from committee for calendaring at the Chairman's discretion. There being no objection, CHAIRMAN PHILLIPS noted the motion carried.