HOUSE RESOURCES STANDING COMMITTEE                                                                                     
                 February 17, 1999                                                                                              
                     1:10 p.m.                                                                                                  
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
ALASKAN SHELLFISH GROWERS ASSOCIATION OVERVIEW                                                                                  
                                                                                                                                
TAPE(S)                                                                                                                         
                                                                                                                                
99-8, SIDE(S) A & B                                                                                                             
99-9, SIDE(S) A                                                                                                                 
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Representative Scott Ogan, Co-Chairman, convened the House                                                                      
Resources Standing Committee meeting at 1:10 p.m.                                                                               
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Committee members present at the call to order were Representatives                                                             
Ogan, Sanders, Masek and Harris.  Representative(s) Barnes,                                                                     
Whitaker, Morgan, Joule and Kapsner arrived as the meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
RODGER PAINTER, Vice President, Alaskan Shellfish Growers                                                                       
Association (ASGA), presented issues on aquatic farming and                                                                     
intertidal water farming.  He mentioned meeting with the Governor                                                               
and that he will provide answers to the questions in their packet                                                               
within two weeks.  The major concerns of ASGA are that they want                                                                
the Department of Natural Resources (DNR) 1) to carry out existing                                                              
state law; 2) to accept and issue permits on a case-by-case basis;                                                              
3) to process and issue permits for indigenous permits; and 4) to                                                               
agree that all aquatic stock is private property.                                                                               
                                                                                                                                
CO-CHAIR SCOTT OGAN asked questions about the Seward hatchery.                                                                  
                                                                                                                                
KEVIN DUFFY, Acting Deputy Director, Alaska Department of Fish and                                                              
Game (ADF&G), explained statutes on critical habitat, lease fees                                                                
and negotiations with ASGA.                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked about the specific critical habitat issues for                                                              
this area.                                                                                                                      
                                                                                                                                
ROBERT HARTLEY, President, Alaskan Shellfish Growers Association                                                                
(ASGA), discussed information in handout on lease fees.  Alaska's                                                               
lease fees for aquatic farming are two times higher than those in                                                               
any other state.                                                                                                                
                                                                                                                                
REPRESENTATIVE BEVERLY MASEK asked questions about the DNR.                                                                     
                                                                                                                                
LARRY COTTER, CEO, Aleutian Pribilof Island Community Development                                                               
Association (APICDA), discussed APICDA's interest in establishing                                                               
a sea urchin farm.  This will help meet the community development                                                               
quota.  However, the leasing fees make their vision unattainable.                                                               
                                                                                                                                
CO-CHAIR OGAN brought up the idea of possible fee reductions for                                                                
this fledgling industry.                                                                                                        
                                                                                                                                
GARY SEIM, Kachemak Shellfish Growers Cooperative (KSGC), expressed                                                             
concern with restrictions in Kachemak Bay, noting the high demand                                                               
for shellfish but lack of supply.  The high lease fees deter                                                                    
aquatic farmers from having farms large enough to meet demand.                                                                  
Application process requirements are prohibitive, and there is lack                                                             
of support for the concept.                                                                                                     
                                                                                                                                
REPRESENTATIVE RAMONA BARNES offered to help with establishing                                                                  
additional Taiwan contacts, if needed.                                                                                          
                                                                                                                                
CO-CHAIR OGAN wrapped up and thanked participants.                                                                              
                                                                                                                                
REPRESENTATIVE BARNES mentioned an article regarding resource                                                                   
development and the oil industry.                                                                                               
                                                                                                                                
COMMITTEE ACTION                                                                                                                
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 2:52 p.m.                                                                                              
                                                                                                                                
NOTE:                                                                                                                           
                                                                                                                                
The meeting was recorded and handwritten log notes were taken.  A                                                               
copy of the tape(s) and log notes may be obtained by contacting the                                                             
House Records Office at 130 Seward Street, Suite 211, Juneau,                                                                   
Alaska  99801-1182, (907) 465-2214, and after adjournment of the                                                                
second session of the Twenty-first Alaska State Legislature, in the                                                             
Legislative Reference Library.