ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                       February 26, 2014                                                                                        
                           3:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Fred Dyson, Vice Chair                                                                                                  
Senator Peter Micciche                                                                                                          
Senator Click Bishop                                                                                                            
Senator Lesil McGuire                                                                                                           
Senator Anna Fairclough                                                                                                         
Senator Hollis French                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 26                                                                                                   
Urging  the  United  States  Congress  to  provide  a  means  for                                                               
consistently  and   equitably  sharing  with  all   oil  and  gas                                                               
producing  states adjacent  to  federal  outer continental  shelf                                                               
areas  a   portion  of  revenue   generated  from  oil   and  gas                                                               
development on the  outer continental shelf to  ensure that those                                                               
states   develop  necessary   infrastructure  to   support  outer                                                               
continental   shelf   development  and   preserve   environmental                                                               
integrity.                                                                                                                      
                                                                                                                                
     - MOVED HJR 26 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 15(RES)                                                                                       
Supporting the introduction and  enactment of federal legislation                                                               
acknowledging   that  the   federal  government   is  financially                                                               
responsible  under the  Alaska Native  Claims Settlement  Act for                                                               
the remediation of contaminated  land subject to conveyance under                                                               
the Act.                                                                                                                        
                                                                                                                                
     - MOVED SCS CSHJR 15(RES) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE BILL NO. 137                                                                                                             
"An  Act extending  the termination  date of  the Alaska  Seismic                                                               
Hazards Safety Commission; and providing for an effective date."                                                                
                                                                                                                                
     - MOVED SB 137 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 105                                                                                                             
"An Act requiring the state to quitclaim to the federal                                                                         
government land or an interest in land that was wrongfully or                                                                   
erroneously conveyed to the state by the federal government."                                                                   
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 26                                                                                                                  
SHORT TITLE: OFFSHORE OIL & GAS REVENUE SHARING                                                                                 
SPONSOR(s): REPRESENTATIVE(s) SADDLER                                                                                           
                                                                                                                                
02/17/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/14       (H)       RES                                                                                                    
02/19/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/19/14       (H)       Moved Out of Committee                                                                                 
02/19/14       (H)       MINUTE(RES)                                                                                            
02/21/14       (H)       RES RPT 5DP                                                                                            
02/21/14       (H)       DP: SEATON, JOHNSON, OLSON, FEIGE,                                                                     
                         SADDLER                                                                                                
02/21/14       (H)       TRANSMITTED TO (S)                                                                                     
02/21/14       (H)       VERSION: HJR 26                                                                                        
02/24/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/14       (S)       RES                                                                                                    
02/24/14       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/24/14       (S)       Scheduled But Not Heard                                                                                
02/26/14       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HJR 15                                                                                                                  
SHORT TITLE: FEDERAL CONTAMINATION OF ANCSA LANDS                                                                               
SPONSOR(s): REPRESENTATIVE(s) MILLETT                                                                                           
                                                                                                                                
03/27/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/27/13       (H)       RES                                                                                                    
02/10/14       (H)       RES AT 1:00 PM BARNES 124                                                                              
02/10/14       (H)       Moved CSHJR 15(RES) Out of Committee                                                                   
02/10/14       (H)       MINUTE(RES)                                                                                            
02/12/14       (H)       RES RPT CS(RES) 6DP 1AM                                                                                
02/12/14       (H)       DP: HAWKER, JOHNSON, SEATON, TARR,                                                                     
                        OLSON, P.WILSON                                                                                         
02/12/14       (H)       AM: KAWASAKI                                                                                           
02/17/14       (H)       TRANSMITTED TO (S)                                                                                     
02/17/14       (H)       VERSION: CSHJR 15(RES)                                                                                 
02/18/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/14       (S)       RES                                                                                                    
02/26/14       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 137                                                                                                                  
SHORT TITLE: EXTEND SEISMIC HAZARDS SAFETY COMMISSION                                                                           
SPONSOR(s): SENATOR(s) BISHOP                                                                                                   
                                                                                                                                
01/24/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/14       (S)       RES                                                                                                    
02/24/14       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/24/14       (S)       Scheduled But Not Heard                                                                                
02/26/14       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE SADDLER                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HJR 26.                                                                                        
                                                                                                                                
ADRIAN HERRERA, Coordinator                                                                                                     
Arctic Power                                                                                                                    
Washington, D.C.                                                                                                                
POSITION STATEMENT Supported HJR 26.                                                                                          
                                                                                                                                
VASILIOS GIALOPSOS                                                                                                              
Staff to Representative Millett                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HJR 15 for the sponsor.                                                                         
                                                                                                                                
REPRESENTATIVE MILLETT                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HJR 15.                                                                                        
                                                                                                                                
MAVER CAREY, President and CEO                                                                                                  
Kuskokwim Corporation                                                                                                           
POSITION STATEMENT: Supported HJR 15.                                                                                         
                                                                                                                                
BRENNAN KANE, Chair                                                                                                             
Land Committee                                                                                                                  
Alaska Native Village CEO Association                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Supported HJR 15.                                                                                         
                                                                                                                                
PJ SIMON, Second Chief                                                                                                          
Allakaket, Alaska                                                                                                               
POSITION STATEMENT: Supported HJR 15.                                                                                         
                                                                                                                                
CURTIS MCQUEEN, Chief Executive Officer                                                                                         
Eklutna, Inc.                                                                                                                   
Alaska                                                                                                                          
POSITION STATEMENT: Supported HJR 15.                                                                                         
                                                                                                                                
MICHELE METZ, Lands Manager                                                                                                     
Sealaska Corporation                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Supported HJR 15.                                                                                         
                                                                                                                                
BRITTANY HUTCHISON                                                                                                              
Staff to Senator Bishop                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented SB 137 for the sponsor.                                                                         
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Division of Legislative Audit                                                                                                   
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Supported SB 137.                                                                                         
                                                                                                                                
ROBERT SCHER, Chair                                                                                                             
Alaska Seismic Hazards Safety Commission                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Supported SB 137.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:56 PM                                                                                                                    
CHAIR  CATHY   GIESSEL  called  the  Senate   Resources  Standing                                                             
Committee meeting  to order at 3:30  p.m. Present at the  call to                                                               
order  were Senators  Fairclough,  Micciche,  French, Bishop  and                                                               
Chair Giessel.                                                                                                                  
                                                                                                                                
           HJR 26-OFFSHORE OIL & GAS REVENUE SHARING                                                                        
                                                                                                                                
3:31:30 PM                                                                                                                    
CHAIR GIESSEL announced HJR 26 to be up for consideration.                                                                      
                                                                                                                                
3:31:38 PM                                                                                                                    
REPRESENTATIVE SADDLER, sponsor of HJR 26, Alaska State                                                                         
Legislature, said this resolution simply asks the federal                                                                       
government  to  enact a  fair  and  equitable system  of  sharing                                                               
federal  revenues from  offshore development.  He explained  that                                                               
offshore oil  and gas development is  a boon for the  country; it                                                               
brings us a  secure source of domestic energy,  revenue and jobs,                                                               
but it creates costly impacts  in states like Alaska. The federal                                                               
government  recognizes  these  strains  by sharing  some  of  the                                                               
proceeds of  this development  to help  state's offset  the costs                                                               
for the  improvements and services necessary  to have responsible                                                               
and safe  development. On  land they share  half of  the revenues                                                               
and within three  miles from shore they share 27  percent. In the                                                               
four states  bordering the Gulf  of Mexico they share  a whopping                                                               
37.5  percent.  Current  law  says Alaska  will  receive  a  zero                                                               
percent  share from  oil  produced in  the  Chukchi and  Beaufort                                                               
Seas, Cook Inlet and offshore.                                                                                                  
                                                                                                                                
Everyone knows the federal waters  offshore contain a lot of oil,                                                               
but   development   of   Alaska's  offshore   resources   require                                                               
infrastructure   investments  including   new  roads,   airports,                                                               
utilities and  housing, and additional services  must be provided                                                               
for  including oil  spill and  emergency response,  environmental                                                               
monitoring mitigation, public health and safety.                                                                                
                                                                                                                                
3:34:04 PM                                                                                                                    
The Chukchi and  Beaufort Seas sales generated  $2.75 billion and                                                               
that would  have brought more  than $1  billion to Alaska  if the                                                               
same revenue sharing provisions were  afforded Alaska as the Gulf                                                               
of Mexico states. But Alaska didn't get a single cent.                                                                          
                                                                                                                                
Opponents  of revenue  sharing argue  that  the federal  treasury                                                               
cannot afford to give up  money, but Representative Saddler would                                                               
argue  that revenue  sharing opportunities  can incentivize  more                                                               
lease sales and bring in  more development, ultimately opening up                                                               
more  opportunities  for the  federal  government  and states  to                                                               
share more money.                                                                                                               
                                                                                                                                
REPRESENTATIVE SADDLER said  the time couldn't be  better or more                                                               
opportune  to have  this  kind of  legislation  move through  the                                                               
Congress as Senator  Lisa Murkowski is the ranking  member in the                                                               
Senate Energy and Natural Resources  Committee, and the new chair                                                               
of that committee is Senator  Merrill Landrew of Louisiana who is                                                               
also  a strong  advocate for  the  oil industry  and OCS  revenue                                                               
sharing. These two senators have  introduced the Fixing America's                                                               
Inequities with  Revenue Act  (FAIR ACT),  which would  extend to                                                               
Alaska and  all Outer Continental  Shelf States (OCS)  states the                                                               
same 37.5 percent share that the Gulf States now receive.                                                                       
                                                                                                                                
3:35:58 PM                                                                                                                    
ADRIAN  HERRERA,  Coordinator,  Arctic Power,  Washington,  D.C.,                                                               
supported HJR  26. He said  Arctic Power is a  501(c)(6) not-for-                                                               
profit organization  arguing for the  environmentally responsible                                                               
oil  and  gas  exploration  in  Alaska's  Arctic.{  Arctic  Power                                                               
strongly supports  HJR 26  as it will  bring parity  with onshore                                                               
resource development  and parity with  the Gulf of  Mexico states                                                               
which currently  do enjoy revenue  sharing. They believe  it will                                                               
allow  for much  safer and  environmentally sound  development to                                                               
occur  nationwide, particularly  in  Alaska's  rural Arctic,  the                                                               
area closest to  the most active OCS leasing areas  in the nation                                                               
currently.                                                                                                                      
                                                                                                                                
Zero revenue sharing does nothing  to encourage or allow safe OCS                                                               
resource development  and by allowing  the state to have  a share                                                               
of the  resources will allow for  a much more even  playing field                                                               
and safer situations as states develop their offshore areas.                                                                    
                                                                                                                                
3:37:49 PM                                                                                                                    
SENATOR MCGUIRE joined the committee.                                                                                           
                                                                                                                                
MR. HERRERA said  the House of Representatives has  passed an OCS                                                               
revenue sharing  bill, HR  2231, that passed  last summer  with a                                                               
vote of  2035 in  favor and  186 against. This  issue is  quite a                                                               
non-partisan  issue. Senator  Begich also  has a  revenue sharing                                                               
bill, S  199, but  it is Alaska-centric  only and  probably won't                                                               
generate  much support.  It uses  the  same 37.5  percent as  the                                                               
Landrew Murkowski bill.                                                                                                         
                                                                                                                                
MR. HERRERA  said this  resolution will be  up against  the White                                                               
House  view  and the  Bureau  of  Ocean Energy  Management.  They                                                               
testified  last  year  against  the   FAIR  Act  and  their  main                                                               
complaint  was that  this  will  be a  loss  of  revenue for  the                                                               
national treasury.  But they strongly  disagree and feel it  is a                                                               
short  sighted  view  for  many  of  the  reasons  Representative                                                               
Saddler  does. They  believe the  perceived  notion that  revenue                                                               
sharing  will  take  away   from  the  President's  environmental                                                               
policies.  Ironically,  the  prime  beneficiary of  the  fund  is                                                               
Louisiana, Chair Landrew's home state.                                                                                          
                                                                                                                                
Further, he said if you make  OCS developed and more attractive -                                                               
whether  it be  a wind  turbine or  an offshore  oil field  - you                                                               
could expect more  companies to operate in these  areas. Thus you                                                               
would get a better revenue  stream, and under revenue sharing the                                                               
state would be  mandated to use 10 percent of  their winnings for                                                               
environmental   conservation,    environmental   mitigation   and                                                               
alternative  energy  development,  which  are  exactly  the  same                                                               
projects  that  the Land  and  Water  Conservation Fund  and  the                                                               
President's environmental policies are trying to achieve.                                                                       
                                                                                                                                
CHAIR  GIESSEL  found  no  further  comments  and  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
3:41:04 PM                                                                                                                    
SENATOR FAIRCLOUGH  moved to report HJR  26, version 28-LS1439\N,                                                               
from committee  to the next  committee of referral  with attached                                                               
fiscal note and individual recommendations.                                                                                     
                                                                                                                                
SENATOR  FRENCH  objected,  saying  that about  a  week  ago  the                                                               
committee heard  a nearly identical resolution,  SJR 5, sponsored                                                               
by  Senator  Wielechowski,  which   was  held  in  committee.  He                                                               
supported this resolution  but wondered why the  other one didn't                                                               
pass. He  thought his caucus  member had not been  treated fairly                                                               
in this instance. He then withdrew his objection.                                                                               
                                                                                                                                
Finding no  further objections, Chair  Giessel said HJR  26 moved                                                               
from the Senate Resources Standing Committee.                                                                                   
                                                                                                                                
3:43:37 PM                                                                                                                    
At ease from 3:43 to 3:45 p.m.                                                                                                  
                                                                                                                                
          HJR 15-FEDERAL CONTAMINATION OF ANCSA LANDS                                                                       
                                                                                                                                
3:45:26 PM                                                                                                                    
CHAIR GIESSEL announced HJR 15  to be up for consideration [CSHJR                                                               
15(RES), version 28-LS071\U, was before the committee].                                                                         
                                                                                                                                
VASILIOS GIALOPSOS,  staff to Representative Millett,  sponsor of                                                               
HJR 15, explained that the  resolution urges the U.S. Congress to                                                               
pass  legislation  to  hold the  federal  government  financially                                                               
responsible  for  contaminated sites  that  were  found on  lands                                                               
conveyed to Native corporations  through the Alaska Native Claims                                                               
Settlement Act (ANCSA). Though the  intentions were good, several                                                               
encumbrances  occurred in  the late  1980s and  early 1990s  that                                                               
culminated in  the U.S. Congress  passing legislation in  1995 to                                                               
have a  report commissioned by  the U.S. Department  of Interior.                                                               
That report  identified 650 such  contaminated sites  that ranged                                                               
in size  and from  a variety  of agencies  and departments  and a                                                               
variety  of  contaminants  (PCPs, arsenic,  mercury,  petroleum);                                                               
many  of the  sites are  in the  area of  living settlements  and                                                               
cultural habitats.                                                                                                              
                                                                                                                                
3:46:06 PM                                                                                                                    
SENATOR DYSON joined the committee.                                                                                             
                                                                                                                                
MR. GIALOPSOS explained  that lands were conveyed  for a specific                                                               
societal  purpose, but  now have  an additional  encumbrance upon                                                               
the  corporations  and  shareholders. Remediation  costs  in  the                                                               
range from tens of millions to  tens of tens of millions. But the                                                               
main  motivation  was   just  the  hypocrisy  that   there  is  a                                                               
consideration for  wildlife in in  one decision in one  aspect of                                                               
the Department of  the Interior or another  federal department or                                                               
agency and yet the situation is allowed to perpetuate.                                                                          
                                                                                                                                
3:48:31 PM                                                                                                                    
REPRESENTATIVE  MILLETT,  sponsor  of  HJR  15,  said  these  are                                                               
similar  to the  legacy wells  except that  these are  lands that                                                               
were  given to  Native with  the right  to develop,  live on  and                                                               
subsist.  You can't  live  on contaminated  lands  or subsist  on                                                               
them.                                                                                                                           
                                                                                                                                
3:50:05 PM                                                                                                                    
SENATOR FAIRCLOUGH  said that when  they refer to  "legacy wells"                                                               
that  "travesty" strikes  closer to  the  mark of  what they  are                                                               
trying to say  as far as devastation of the  lands that have been                                                               
left behind.                                                                                                                    
                                                                                                                                
3:51:30 PM                                                                                                                    
MAVER CAREY,  President and CEO, Kuskokwim  Corporation, an ANCSA                                                               
corporation  comprised of  ten villages  upriver from  Bethel all                                                               
the  way up  to Stony  River, said  she is  also Chairman  of the                                                               
Board  of  the Alaska  Native  Village  CEO Association  that  is                                                               
comprised of other village corporations  and their executives and                                                               
9 out  of 13 regional  corporations. When the  federal government                                                               
conveyed millions  of acres of  land to ANCs they  included lands                                                               
contaminated   with    arsenic,   asbestos,    PCBs,   unexploded                                                               
ordinances,   mining  waste   chemicals,  spilled   diesel  fuel,                                                               
petroleum and oil, solvents, toxic  metals, and mercury. As ANVCA                                                               
gathers more data  about these sites, they are  finding even more                                                               
than 650 and contamination in  drinking water and drums of toxins                                                               
buried  in soil  saturating the  tundra and  infecting the  local                                                               
food and water sources. White  Alice sights that were left behind                                                               
after  the Cold  War are  leaking contaminants  such as  PCBs and                                                               
PCEs.  The known  health effects  of these  specific contaminants                                                               
include  cancer, miscarriages,  attacks  on  the central  nervous                                                               
system,  suppression   of  the  immune  system   to  neurological                                                               
learning disabilities. Clearly contaminated  land can result in a                                                               
significant health  risks to  residents of  the State  of Alaska,                                                               
the animals and the environment.                                                                                                
                                                                                                                                
3:53:54 PM                                                                                                                    
MS. CAREY  said that almost 20  years after ANCSA was  passed and                                                               
signed  into  law the  Alaska  Native  community has  raised  the                                                               
concern  that  the  Department of  Interior  (DOI)  had  conveyed                                                               
contaminated lands to ANCs.                                                                                                     
                                                                                                                                
In 1995, Congress  directed the Secretary of  Interior to prepare                                                               
a report on these specific  contaminated lands that were conveyed                                                               
to  ANCs; so  in  December 1998  the DOI  submitted  a report  to                                                               
Congress  entitled "Hazardous  Substance Contamination  of Alaska                                                               
Native Claims  Settlement Act  Lands in  Alaska." In  that report                                                               
the DOI  acknowledged conveying 650  contaminated sites  to ANCs;                                                               
the  report   identified  numerous  types  of   hazardous  wastes                                                               
including  the   ones  she  spoke  of   earlier  recognizing  the                                                               
unjustness of conveying these lands  to ANCs in the Settlement of                                                               
the  aboriginal  rights  and recommended  an  approach  to  fully                                                               
identify these  sites and to  clean them up. The  report included                                                               
six recommendations almost 20 years ago and none have been done.                                                                
                                                                                                                                
The  conveyance  of  these significant  amounts  of  contaminated                                                               
lands to ANCs  is unjust and although Congress did  not intend to                                                               
stick Alaska Natives with them BLM  has spent over $10 million on                                                               
cleaning  them up  and  the  job is  not  done.  This would  have                                                               
bankrupted the corporation.                                                                                                     
                                                                                                                                
3:57:27 PM                                                                                                                    
She had  five recommendations on  how the state could  assist the                                                               
situation.                                                                                                                      
1. Pass this resolution                                                                                                         
2.  Push the  federal government  to acknowledge  their financial                                                               
responsibility   to  clean   up  the   contaminated  lands   they                                                               
transferred to ANCs.                                                                                                            
3. Urge Alaska's governor to include  this as one of the lobbying                                                               
priorities of his Washington, D.C. office staff.                                                                                
4.  Conduct  high  level  meetings   with  all  relevant  federal                                                               
agencies and  identify which lead  agency is responsible  for the                                                               
timely remediation.                                                                                                             
5. Help ANVCA identify these sights and prioritize them.                                                                        
                                                                                                                                
3:58:27 PM                                                                                                                    
CHAIR GIESSEL said  that Senator McGuire would  be in Washington,                                                               
D.C. related to Arctic issues and would carry that message.                                                                     
                                                                                                                                
3:58:55 PM                                                                                                                    
BRENNAN KANE,  Chair, Land Committee,  Alaska Native  Village CEO                                                               
Association,  Anchorage,   Alaska,  supported  HJR  15   and  its                                                               
companion SJR 12. He said he  was also Vice President and General                                                               
Counsel of Eyak Corporation.                                                                                                    
                                                                                                                                
He said  that Representative Millett's  staff mentioned  the 1998                                                               
Interior Department report, a copy  of which was being emailed to                                                               
the committee right  now. The report was a "solid  piece" of work                                                               
that  included   six  recommendations.  Three   bear  mentioning:                                                               
establishing a  forum for ANCSA  land owners and  federal, state,                                                               
local  and tribal  agencies to  collaborate on  cleanup of  these                                                               
contaminated  sites,  compiling   a  comprehensive  inventory  of                                                               
contaminated  sites  and  recommending  further  cleanup  federal                                                               
actions.                                                                                                                        
                                                                                                                                
In the report  the department said they were  going to coordinate                                                               
the  implementation of  these  six  recommendations, but  nothing                                                               
happened over  the next 15  years, Mr. Kane said.  It's important                                                               
to  note  that  BLM's  people are  "solid  people"  and  recently                                                               
informed them that they will now  review those 650 sites that are                                                               
listed and  see which  ones had  been remediated.  But additional                                                               
sites  have   been  found  since   1998.  ANVCA  wants   to  work                                                               
collaboratively with everyone to  address these sites. This issue                                                               
needs   attention  and   this  resolution   will  give   it  that                                                               
visibility.                                                                                                                     
                                                                                                                                
MR. KANE  said the cost  to clean  up these sites  would bankrupt                                                               
most native corporations  and HJR 15 addresses  the unjustness of                                                               
Alaska Native  Corporations being  subject to legal  exposure for                                                               
contamination   caused  by   the  federal   government.  And   as                                                               
landowners,  Alaska Native  Corporations  are  subject to  strict                                                               
liability under federal and state  law for contamination on their                                                               
lands,  even  if  that  land  was  contaminated  by  the  federal                                                               
government prior to conveyance.                                                                                                 
                                                                                                                                
So HJR  15 proposes a  solution to  this problem: if  the federal                                                               
government  conveyed  contaminated  land   to  an  Alaska  Native                                                               
Corporation through  ANCSA the federal government  is financially                                                               
responsible for the remediation of that land.                                                                                   
                                                                                                                                
4:04:04 PM                                                                                                                    
P.J. SIMON,  Second Chief, Allakaket,  Alaska, said he  also sits                                                               
on the  Tanana Chief's Executive  Board and he supported  HJR 15.                                                               
He lives in  Allakaket next to Hughes that has  had a White Alice                                                               
early warning  site since  the Cold  War called  Indian Mountain.                                                               
The planes are in a museum  and Air Force personnel have retired,                                                               
but  right now  this site  has contamination;  remediation is  in                                                               
order to protect the natural resources up there.                                                                                
                                                                                                                                
He said they  support the military at Alatna and  Hughes and hope                                                               
they  can bring  the White  Alice  site behind  Hughes where  600                                                               
truckloads     of    contamination     needs    to     go    out.                                                               
This would also add an economic boost for the area.                                                                             
                                                                                                                                
4:06:02 PM                                                                                                                    
CURTIS MCQUEEN,  Chief Executive Officer, Eklutna,  Inc., said he                                                               
has the  authority to  testify on  behalf of  the Tribe  and Cook                                                               
Inlet Regional, Inc.  (CIRI). They are in strong  support of this                                                               
resolution, but  are in a  bit of  a different situation  in that                                                               
contamination has  been being  cleaned up  on some  Eklutna lands                                                               
for the last  six or seven years through Army  Corps of Engineers                                                               
funds. They even recently found a  large diesel spill from an old                                                               
motor pool and were able to  cook that gravel into asphalt, which                                                               
ended up in the Anchorage road system.                                                                                          
                                                                                                                                
They are also due 17,000 acres  of JBER land, however some of the                                                               
lands  that have  had contamination  identified on  them and  are                                                               
looking for  funds to try  to clean  those lands before  they are                                                               
delivered. Some other communities are not as lucky.                                                                             
                                                                                                                                
4:08:34 PM                                                                                                                    
MICHELE  METZ,  Lands   Manager,  Sealaska  Corporation,  Juneau,                                                               
Alaska,  supported HJR  15. Their  issue was  community landfills                                                               
that were conveyed with their  land. She had also been authorized                                                               
to  convey that  the  ANCSA  regional CEOs  had  met earlier  and                                                               
passed a motion in support of  this issue and getting it resolved                                                               
at the federal level.                                                                                                           
                                                                                                                                
4:09:45 PM                                                                                                                    
CHAIR  GIESSEL,  finding  no   further  comments,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR GIESSEL offered Amendment 1, labelled 28-LS0717\U.1.                                                                      
                                                                                                                                
                                                 28-LS0717\U.1                                                                  
                                                       Nauman                                                                   
                                                      2/25/14                                                                   
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR GIESSEL                                                                 
     TO:  CSHJR 15(RES)                                                                                                         
                                                                                                                                
     Page 2, following line 9:                                                                                                  
     Insert new clauses to read:                                                                                                
          "WHEREAS, in that report, the United States                                                                         
    Department    of    the     Interior    proposed    six                                                                     
     recommendations to "fully identify contaminated sites                                                                      
     and clean-up needs of Alaska Native Claims Settlement                                                                      
     Act lands"; and                                                                                                            
          WHEREAS the United States Department of the                                                                         
       Interior has not fully implemented any of the six                                                                        
        recommendations it proposed to the United States                                                                        
     Congress; and"                                                                                                             
                                                                                                                                
     Page 2, line 22, following "Act":                                                                                          
          Insert "; and be it                                                                                                   
          FURTHER   RESOLVED    that   the    Alaska   State                                                                  
     Legislature urges the United States Department of the                                                                      
     Interior to fully implement the six recommendations in                                                                     
     its 1998 report to the United States Congress"                                                                             
                                                                                                                                
REPRESENTATIVE  MILLETT said  she fully  supported the  amendment                                                               
and agreed  with two  whereas clauses and  one resolve  that were                                                               
inserted. The  other body had  some consideration about  who they                                                               
had  addressed the  resolution  to  and decided  not  to fill  in                                                               
names, since  a new Department  of Interior Secretary  people was                                                               
being appointed.                                                                                                                
                                                                                                                                
4:11:40 PM                                                                                                                    
She  introduced  three  Kuskokwim  Student  Education  Foundation                                                               
Scholarships students  who are  shareholders in  the contaminated                                                               
lands.                                                                                                                          
                                                                                                                                
CHAIR GIESSEL moved Amendment 1.  There were no objections and it                                                               
was adopted.                                                                                                                    
                                                                                                                                
SENATOR DYSON  moved to  report HJR  15, version  28-LS0717\U, as                                                               
amended, from  committee to the  next committee of  referral with                                                               
attached fiscal notes and individual recommendations.                                                                           
                                                                                                                                
There  were  no  objections  and SCS  CSHJR  15(RES)  moved  from                                                               
committee.                                                                                                                      
                                                                                                                                
4:14:08 PM                                                                                                                    
At ease 4:14 to 4:15 p.m.                                                                                                       
                                                                                                                                
        SB 137-EXTEND SEISMIC HAZARDS SAFETY COMMISSION                                                                     
                                                                                                                                
4:15:38 PM                                                                                                                    
CHAIR GIESSEL announced SB 137 to be up for consideration.                                                                      
                                                                                                                                
4:15:57 PM                                                                                                                    
BRITTANY HUTCHISON, staff  to Senator Bishop, sponsor  of SB 137,                                                               
presented the bill for the sponsor.  She said that SB 137 extends                                                               
the  termination  date  of  the   Alaska  Seismic  Hazard  Safety                                                               
Commission from  June 30, 2014  to June  30, 2020. She  said that                                                               
Alaska has more  earthquakes than any other region  in the United                                                               
States  and is  one of  the most  seismic reactive  areas in  the                                                               
world. In fact,  we are fast approaching the  50th Anniversary of                                                               
the 1964  Good Friday Earthquake,  the most powerful  recorded in                                                               
North American history.                                                                                                         
                                                                                                                                
Given the  historical record and  inevitable potential  of future                                                               
earthquake activity,  she said Alaska needs  this Commission. The                                                               
Commission  was  created in  2002  in  able  to help  reduce  the                                                               
disaster potential of major earthquakes  and reduce dependence on                                                               
disaster relief. It is an  advisory body administered through the                                                               
Department  of Natural  Resources in  the Division  of Geological                                                               
and  Geophysical  Surveys.  They  operate  on  a  $10,000  annual                                                               
budget; they  have six  standing committees  and 11  members each                                                               
appointed  for  three-year  terms   by  the  governor.  They  are                                                               
designed to include a cross-section  of public and private sector                                                               
representatives.                                                                                                                
                                                                                                                                
She  said  the  Commission  serves  all  Alaskans  and  works  in                                                               
providing  policy,  goal,  and priority  recommendations  to  the                                                               
governor,  legislature, local  governments,  and  the public  and                                                               
private   sectors  alike   in  order   to   reduce  the   state's                                                               
vulnerability  to   seismic  hazards   and  to  advise   them  on                                                               
approaches for mitigating earthquake  risks and potential damage.                                                               
They have  significantly impacted school safety  by collaborating                                                               
with the Department of Education  and Early Development (DEED) on                                                               
seismic issues concerning school construction and renovations.                                                                  
                                                                                                                                
In addition, they have amended  state regulation and departmental                                                               
practices  to ensure  that all  registered  civil and  structural                                                               
engineers  have a  full  understanding  of Alaska's  earthquakes.                                                               
They  also  assist  with  seismic   hazard  training  efforts  by                                                               
coordinating with  the Department of Military  & Veterans Affairs                                                               
(DMVA) in  order to  help put  on two  day workshops  focusing on                                                               
post  disaster facility  safety assessments  and work  with other                                                               
organizations who are concerned with seismic hazards.                                                                           
                                                                                                                                
MS.  HUTCHISON  said for  these  reasons  and many  more  Senator                                                               
Bishop agrees  with the legislative  audit, which  concluded that                                                               
the commission  should be  extended for six  more years  and that                                                               
they are serving the public's interest.                                                                                         
                                                                                                                                
4:19:01 PM                                                                                                                    
SENATOR  MICCICHE  asked if  six  years  is a  typical  extension                                                               
period.                                                                                                                         
                                                                                                                                
MS. HUTCHISON answered no; they  were originally designed in 2002                                                               
and came  up again  two years  ago. The  problem with  a two-year                                                               
extension is  that the commission is  not able to focus  on their                                                               
job in that short of a time.                                                                                                    
                                                                                                                                
SENATOR MICCICHE asked if the budget is $10,000 a year.                                                                         
                                                                                                                                
MS. HUTCHISON answered yes.                                                                                                     
                                                                                                                                
4:20:24 PM                                                                                                                    
KRIS  CURTIS, Legislative  Auditor,  Legislative Audit  Division,                                                               
Legislative  Affairs  Agency, said  their  agency  did conduct  a                                                               
sunset  audit of  the commission  and the  purpose was  to review                                                               
whether  it was  serving the  public's interest  and whether  its                                                               
termination date  should be  extended. The last  time they  did a                                                               
sunset  audit was  2011 and  then  they recommended  a four  year                                                               
extension accompanied by some recommendations.  They were given a                                                               
two  year extension  at that  point and  their progress  is being                                                               
reviewed.  They did conclude  that the commission was serving the                                                               
public's interest and recommended a six year extension.                                                                         
                                                                                                                                
4:22:01 PM                                                                                                                    
At ease from 4:22 to 4:27 p.m.                                                                                                  
                                                                                                                                
4:27:06 PM                                                                                                                    
MS. CURTIS said the audit included four recommendations:                                                                        
                                                                                                                                
1.   Improve  prioritization   and   accountability  within   its                                                               
strategic planning  documents: the  prior sunset audit  found the                                                               
commission  lacked   a  clear   strategy  for   prioritizing  and                                                               
monitoring its efforts,  but this audit found  the commission had                                                               
made  significant  progress  toward  resolving  this  finding  by                                                               
developing  a  strategic  plan  that  identifies  objectives  and                                                               
strategies to correlate with  the commission's statutory mandate.                                                               
Each  strategy lists  a priority,  a  target date  and a  planned                                                               
outcome; the commission  also used goals contained  in its annual                                                               
report and action list during  committee meetings to really focus                                                               
its efforts.                                                                                                                    
2.  They offered  another recommendation  to basically  fine tune                                                               
their strategic  plan (page 9).  They clearly need  to prioritize                                                               
their tasks. While  each task has a priority, 27  of 29 tasks are                                                               
listed as  important and  the commission  goals and  action lists                                                               
did  not   contain  priorities.  They   recommended  consistently                                                               
identifying  the  person  or subcommittee  responsible  for  task                                                               
completion.                                                                                                                     
3.  They recommended  associating  their goals  and action  lists                                                               
with the commission's over-arching  strategic plan objectives and                                                               
consistently  identifying specific  outcomes. By  improving their                                                               
prioritization and  accountability, the commission  could improve                                                               
its ability to serve the public.                                                                                                
                                                                                                                                
4:29:03 PM                                                                                                                    
On page  12 of the audit  they found that the  commission did not                                                               
consistently   specify    the   organization    responsible   for                                                               
implementing a recommendation. Additionally,  they found that not                                                               
all  recommendations   adequately  identify  the  action   to  be                                                               
performed. At times  the commission was uncertain  about where to                                                               
direct its  recommendations. So they  recommended that  it ensure                                                               
that   recommendations   clearly    identify   the   organization                                                               
responsible  for implementing  an  action and  the  action to  be                                                               
performed. Additionally, they recommend  that the commission seek                                                               
assistance from Department of  Natural Resources (DNR) management                                                               
in  identifying  the  appropriate  organization  responsible  for                                                               
implementing their recommendations.                                                                                             
                                                                                                                                
4.   Finally,   there   are    two   more   administrative   type                                                               
recommendations:  one  directing   the  commission  to  recommend                                                               
replacement of  habitually absent members  and the other  to work                                                               
with the  Office of the  Governor to  fill vacant positions  in a                                                               
timely manner.                                                                                                                  
                                                                                                                                
4:30:11 PM                                                                                                                    
ROBERT SCHER,  Chair, Alaska  Seismic Hazards  Safety Commission,                                                               
Anchorage, Alaska,  supported SB 137.  He said the  Commission is                                                               
an  advisory  body  that  recommends  goals  and  priorities  for                                                               
mitigating seismic  hazards - things like  strong ground shaking,                                                               
landslides, avalanches, tsunami  inundation, fault displacements,                                                               
large area  subsidence -  recommending policies  including needed                                                               
research  mapping, monitoring  programs,  reviewing practice  for                                                               
recovery   and   reconstruction   after   a   major   earthquake,                                                               
recommending   improvements  to   mitigate  losses   from  future                                                               
earthquakes as  well as  gathering, analyzing,  and disseminating                                                               
information of general interest  on seismic hazards. These duties                                                               
are  done  on behalf  of  the  legislature, the  Governor,  local                                                               
governments, as well as the  public and private sectors at large;                                                               
these  duties are  not shared  by any  other state  department or                                                               
commission.                                                                                                                     
                                                                                                                                
MR. SCHER said  the commission was originally formed  under HB 53                                                               
in 2002;  but in 2005  the first commissioners were  appointed by                                                               
Governor Murkowski. In 2006, HB  83 increased the membership from                                                               
9 to  11 commissioners and  extended the commission  through 2012                                                               
(6 years).  Most recently,  HB 279 extended  it through  June 30,                                                               
2014, which  is where they  are right  now. They are  an eclectic                                                               
body,   comprised  of   geologists,   seismologists,  civil   and                                                               
structural engineers,  emergency response planners  and managers,                                                               
and a representative from the insurance industry.                                                                               
                                                                                                                                
They  believe  they have  been  functioning  in the  state's  and                                                               
publics'   interest  as   was  concluded   by  the   Division  of                                                               
Legislative Audit's  report of September 2013.  They look forward                                                               
to being extended  for another six years and already  have a full                                                               
list  of projects  that are  either  started or  in the  planning                                                               
stages that they  would take advantage of  performing during that                                                               
period  of time.  They would  welcome any  opportunity to  assist                                                               
this committee  and the full legislature  with matters pertaining                                                               
to earthquakes and tsunamis.                                                                                                    
                                                                                                                                
4:35:43 PM                                                                                                                    
SENATOR  DYSON asked  him  to  talk a  little  about their  large                                                               
gathering of seismologists this summer.                                                                                         
                                                                                                                                
MR. SCHER answered  that it is the 50th year  following 1964 Good                                                               
Friday  Alaska  Earthquake  and   the  Seismological  Society  of                                                               
America  is  hosting  its  annual meeting  in  Anchorage  in  its                                                               
commemoration and  hundreds of seismologists and  geologists will                                                               
attend;  then  in  July  there will  be  a  week-long  conference                                                               
sponsored  by  the   Earthquake  Engineering  Research  Institute                                                               
entitled   the   Tenth    National   Conference   on   Earthquake                                                               
Engineering. It  is held every  four years in the  North America,                                                               
but it has international influence  and over 800 papers are being                                                               
presented.                                                                                                                      
                                                                                                                                
CHAIR GIESSEL thanked him for serving.                                                                                          
                                                                                                                                
4:37:44 PM                                                                                                                    
CHAIR  GIESSEL,  finding  no   further  comments,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
SENATOR DYSON moved  to report SB 137 from committee  to the next                                                               
committee of  referral with attached  fiscal note  and individual                                                               
recommendations. There were no objections and it was so ordered.                                                                
                                                                                                                                
4:38:48 PM                                                                                                                    
Finding no further business to come before the committee, Chair                                                                 
Giessel adjourned the Senate Resources Standing Committee                                                                       
meeting at 4:37 p.m.