SENATE RESOURCES COMMITTEE March 18, 1994 3:35 P.M. MEMBERS PRESENT Senator Mike Miller, Chairman Senator Loren Leman, Vice Chairman Senator Steve Frank Senator Drue Pearce Senator Dave Donley MEMBERS ABSENT Senator Al Adams Senator Fred Zharoff COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 132(FIN) "An Act extending the time period of permits issued by the Department of Environmental Conservation, the Department of Fish and Game, and the Department of Natural Resources relating to the extraction or removal of resources if the permittee, or an agency issuing a permit to the permittee, is involved in administrative or judicial proceedings concerning the issuance or validity of a permit related to the extraction or removal of resources, and the permittee is unwilling to engage in the resource extraction or removal activity due to the proceedings." SENATE BILL NO. 339 "An Act relating to the management of state land and resources; relating to certain remote parcel and homestead entry land purchase contracts and patents; and providing for an effective date." PREVIOUS ACTION HB 132 - No previous action to record. SB 339 - See Resources minutes dated 3/21/94. WITNESS REGISTER Ben Williams, Legislative Aide c/o Representative Tom Brice State Capital Juneau, Ak. 99801-1182 POSITION STATEMENT: Commented on HB 132. Neil Johannsen, Director Division of Parks Department of Natural Resources P.O. Box 107001 Anchorage, Ak. 99510-7001 POSITION STATEMENT: Supported SB 339. ACTION NARRATIVE TAPE 94-22, SIDE A Number 001 CHAIRMAN MILLER called the Resources Committee meeting to order at 3:35 p.m. and announced CS HB 132 (FIN) (EXTEND RESOURCE EXTRACTION ION PERMIT/LEASE) to be up for consideration. BEN WILLIAMS, Aide for Representative Brice, said that many resource developments in Alaska are delayed by time consuming litigation and administrative proceedings which drive up the cost of a project or even kill it. CSHB 132 (FIN) will fix this problem. State permits relating to a resource extraction or removal project will be extended by the amount of time lost in the law suit not to exceed the original length of the permit and there would be no fee for the extension. The Alaska Minerals Commission and the Governor's Task Force on Regulatory Reform both recommend extensions for permits shortened by proceedings, Mr. Williams said. SENATOR LEMAN moved to adopt the Senate CS for CSHB 132 (FIN), Luckhaupt version m. There were no objections and it was so ordered. SENATOR FRANK asked what would happen if a federal permit was under question. MR. WILLIAMS said the state wouldn't charge for the extra time if the permit holder prevailed. SENATOR LEMAN moved to pass Senate CS to CSHB 132 (RES) with accompanying fiscal notes and with individual recommendations. There were no objections and it was so ordered. Number 91 SENATOR MILLER announced SB 339 (MANAGEMENT OF STATE LAND AND RESOURCES) to be up for consideration. NEIL JOHANNSEN, Director, Division of Parks, said that Title 38 is the basic direction with which they manage all of the state's natural resources. The bill before them is part 1 of a 2 part process. He said they support SB 339 which is basically a housekeeping measure dealing with land disposals, native allotments in parks, setnet and aquatic farm sites, direct negotiated timber sales, oil and gas leasing, and mining. This measure would create a lot more efficient Department of Natural Resource from the standpoint of management. He said it protects the public process and it doesn't craft any sale of the resources that is not in the sunlight. MR. JOHANNSEN concluded that he was present as a coordinater, not a commander. RON SWANSON, Director, Division of Lands, said sections 1 and 2 would merge the former land disposal bank into an existing state land disposal program. The land bank is obsolete since they have already identified more than enough land for disposal. Section 3 would combine two separate legislative reports into one. The annual report on land classifications would include acreage on lands classified for various types of land disposal. Section 4 would put the state land disposal program on the same footing as other natural resource sale programs. They would submit a budget request each year that would be discretionary, not mandatory. Each budget proposal would be complete. Section 5 would make technical corrections and section 6 would make it clear that the five acre limit on subdivision lot size applies only to residential and recreational sales and not to agricultural parcels or commercial parcels. It would also allow larger lots if it would be more profitable for the state. Section 7 would update a list of state land disposal programs by auditing the homestead law and section 8 would delete a reference to the annual land demand study. Section 9, however, would allow the Department to create new land disposal programs by regulation so long as they provide for competition and provide at least fair market value for the land. Section 10 clarifies the legislature's policy that sales of public land to private individuals should be at fair market value unless otherwise directed and gives further guidance on the remote cabin program. Section 11 would deal with native allotments in state parks Sections 12 - 14 and 32 respond to a superior court decision saying it is unconstitutional to make state land purchasers appear in person at a sale. Sections 16 - 18 simplify the process of leasing tideland for setnet fishing. Section 16 would allow standard leasing methods to be used for setnet fishing sites. Section 17 removes language limiting fees for setnet leases to administrative costs. Section 18 with conforming amendments in section 29 and several repealers would streamline authorizations for public farming. Section 19 modernizes requirements to restore surface lease sites after lease termination protecting the state against liability for high cleanup costs. Section 28 would clarify that the Division could allow livestock raising and similar low value uses by issuing permits. Section 33 would raise the fee to receive a nonagricultural homestead entry permit to $20 per acre. Section 34 would insure that the setnet leasing changes made in section 16 and 17 would not be affected by replacement legislation that goes into effect in 1997. Section 36 protects valid existing rights of homestead entry permitees and aquatic farm site permits. Section 37 allows the Department to adopt regulations in advance of the bill's effective date. Section 38 affects the remote parcel program. It would prohibit the Department from imposing the conditions of former AS 30.05.078 (d) in new remote parcel purchase contracts. These conditions restricted the sale or subdivision of remote parcels after it was conveyed into private ownership. MR. SWANSON said, on behalf of the Department of Agriculture, section 15 replaces "approximate vicinity," a term that is not used anywhere else in the statutes with "adjacent," a term that is used elsewhere in the statute. SENATOR LEMAN asked if this bill would have aided the process involved in the Kachemak Bay buy back process. MR. JOHANNSEN said this is aimed at native allotments under the 1906 Federal Native Allotment Act which are limited to 160 acres, a different law. SENATOR MILLER said it was his intention to go through this bill more and bring it up again next Monday. SENATOR MILLER adjourned the meeting at 4:02 p.m.