HOUSE RESOURCES STANDING COMMITTEE February 16, 2000 1:05 p.m. COMMITTEE CALENDAR BRIEFING: ALASKA MINERALS COMMISSION TAPES 00-9 SIDE(S) A & B CALL TO ORDER REPRESENTATIVE BILL HUDSON, Co-Chair, convened the House Resources Standing Committee meeting at 1:05 p.m. PRESENT Committee members present were Representatives Masek, Hudson, Joule, Whitaker, Harris, Barnes and Morgan. SUMMARY OF INFORMATION IRENE ANDERSON, Alaska Minerals Commission, explained that the commission's number-one concern is the crisis on the issuance of permits from exploration to development. She suggested that the Alaska State Legislature, the Governor and the Department of Environmental Conservation (DEC) work together for a solution. KARL HANNEMAN, Alaska Minerals Commission, commented on the report the commission came out with in January 2000. He explained that the report usually includes recommendations to the legislature, but this year focuses on permit issuance at the DEC and fees for services. He further explained that there is dire need for an effective permitting program. REPRESENTATIVE JOULE asked Mr. Hanneman and Ms. Anderson to comment on what is happening in the industry right now as well as the situation at the DEC and its permitting process. MR. HANNEMAN explained that there is a lot of activity in the mining industry right now, specifically with the Red Dog Mine. He said it is important to maintain competent personnel at the DEC, but that they could contract out on projects as well. He explained that recommendations take money and that there should possibly be priorities within recommendations. Along with a long-range fiscal plan, there needs to be a bill to address the fees issue. CHARLOTTE MACCAY, Alaska Minerals Commission, explained that existing projects as well as new projects need a permitting process that does not give room for hidden costs or payments. NIEL MCKINNON, Alaska Minerals Commission, discussed how the State of Alaska collects money on mining claim rent. TOM IRWIN, General Manager, Fort Knox Mine, discussed the benefits to the community from the Fort Knox Mine. He explained that they net about $107 million and much of that goes back into the community. He is not asking for shortcuts, but protection that is strong and credible. STEVE BORELL, Executive Director, Alaska Miners Association, credited the importance of the Alaska Minerals Commission report. He explained that metals pricing is improving and that the industry is seeing growth. There are 50,000 total claims within the state. He further explained that right-of- way access is crucial for the mining industry. REPRESENTATIVE BARNES commented that the only economical development project during the Sheffield Administration was the Red Dog Mine, and it is a success story. COMMITTEE ACTION The committee took no action during this portion of the meeting. ADJOURNMENT CO-CHAIR HUDSON ended this portion of the meeting at 2:30 p.m. [See the House Resources Standing Committee minutes for February 16, 2000, 2:30 p.m., for discussion regarding legislation.] 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 129 6th Street, Suite 229, Juneau, Alaska 99801, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature this information may be obtained by contacting the Legislative Reference Library at 129 6th Street, Suite 102, Juneau, Alaska 99801, (907) 465-3808.