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HomeMy WebLinkAboutMental Health Trust 1994 Alaska Energy Authority ’ 9 March 14, 1994 Mr. Ron Swanson, Director Division of Land, SCRO Alaska Department of Natural Resources P.O. Box 107005 Anchorage, Alaska 99510-7005 Subject: Mental Health Trust - Lands Nominated for Reconstituted Trust Dear Mr. Swanson: The Alaska Energy Authority has reviewed maps of lands that may be designated or conveyed to the Mental Health Trust. Overall, we object to nominations which may affect existing hydroelectric projects operated by the Alaska Energy Authority under licenses granted by the Federal Energy Regulatory Commission; which may affect the Snettisham Project which is being sought for State acquisition by the Alaska Industrial Development and Export Authority; and which may affect a federal power site withdrawal which has been selected by the State due to its relatively high potential for development. The specific nominations we object to are listed below. Federal Energy Regulatory Commission Licensed Projects Proposed Substitute Land No. C20211.001 - Bradley Lake Hydroelectric Project Proposed Substitute Land wel C20774 - Tyee Lake Hydroelectric Project Proposed Substitute Land No. C20921 - Swan Lake Hydroelectric Project Proposed Substitute Land No. C70195 - Solomon Gulch Hydroelectric Project Proposed Substitute Land No. C70212 - Bradley Lake Hydroelectric Project Existing Project Desired for State Acquisition Proposed Substitute Land No. C20527 - Snettisham Hydroelectric Project Federal Power Site Classification Proposed Substitute Land No. C20526 - Lake Dorothy PSC 238 WP0066.DOC 480 West Tudor Road, Anchorage, Alaska 99503-6690 (907) 561-8050 Mr. Ron Swanson March 14, 1994 page 2 Our specific objections to inclusion of the above lands are discussed below. Serving Public Interest The primary reason that the State of Alaska is seeking to own lands that the above listed projects are located on is to stabilize or reduce, at least partially, the land use fees that must be borne by the projects. If the lands which listed above are included in the Trust and land use fees increase, these costs must be passed on to the ratepayers. This action contradicts to the intent of the Energy Program for Alaska (A.S. 44.83.380) which was established to provide inexpensive, stable priced energy for Alaskans and which also provided the impetus to build or acquire the affected hydroelectric projects. The geographical areas where these rate increases would be most probable would be Juneau, which is served by the Snettisham project and the Copper Valley which | the Solomon Gulch project serves. Areas which are served by Federal Energy Regulatory Commission licensed hydropower plants located on U.S. Forest Service lands in Southeast Alaska may be immune to increased fees by virtue of Section 24 of the Federal Power Act (explained below). In several instances, rates increases will need to be approved by the Alaska Public Utilities Commission. Economic Development Inexpensive energy and stable rates are essential for economic development. Increased energy costs and uncertainty are seen as the primary impact of hydropower project lands being included in the Trust. This will create a disincentive for economic development in areas served by these projects. Federal Power Act Issues Section 24 of the Federal Power Act requires that when a Preliminary Permit Application or License Application for hydroelectric development is filed with the Federal Energy Regulatory Commission (FERC), the federal lands within the proposed project boundary are reserved from entry, location or other disposal under the laws of the United States until otherwise directed by the FERC or Congress. If FERC determines that lands reserved or classified as power sites will not be injured or destroyed for the purposes of power development by location, selection or entry under the public land laws, the Secretary of the Interior can declare the lands open to location, entry and selection under such restrictions as FERC may determine necessary and subject to, and with a reservation of the right of the WP0066.DOC Mr. Ron Swanson March 14, 1994 page 3 United States or its permittees or licensees to enter upon, occupy and use any part or all of the lands for hydroelectric development and that_no claim or right to compensation shall accrue from occupation or use of said lands Under the terms of this provision, the use of federal lands which have been reserved by classification or filing of a license application or preliminary permit and then conveyed from federal ownership cannot be charged for (except by the federal government). Section 24 will affect selections made at Bradley Lake, Tyee Lake, Swan Lake, and Dorothy Lake Hydroelectric project sites. Where FERC licenses have already been granted, conveyances to the Trust would also be subject to, at least, the following FERC Standard License Conditions: Article 5 - This requires, that licensees obtain land use in perpetuity. FERC may require a perpetual land use agreement to be executed between the Trust and the Licensee (AEA) before any conveyance can be made. Article 6 - The right of occupancy obtained to satisfy Article 5 would need to be assignable to all future licensees or the federal government. Article 13- The Trust could not restrict the use of these lands by other parties if ordered to do so by the Commission. It also appears that compensation for such uses could go to the licensee rather than the Trust. Article 16- Reserves the right of the United States to enter onto the land at no cost to construct and/or enhance fish and wildlife ‘ facilities. Article 18- Reserves the right of public access for recreation, navigation, hunting and fishing. Article 25- Allows any agency of the United States to, without charge, build roads, railroads, ditches, canals, etc. Snettisham Purchase Lands proposed for inclusion in the Trust are those selected by the State to facilitate the purchase of the Snettisham Hydroelectric Project by the Alaska Industrial Development and Export Authority. Under the terms of the sale agreement, which has already been negotiated, the federal land which is occupied by the project would be conveyed to the State under its statehood entitlement. Supposing this would have be done without cost, allowances have not been made for land use fees in the sale contract. WP0066.DOC Mr. Ron Swanson March 14, 1994 page 4 Since the sale is promulgated on the concept that it would stabilize and maintain electric rates close to what they presently are for Juneau area residents, and because the sale price has already been arrived at by consideration of key factors, significant, additional costs related to land use would nullify the desirability of the sale. If you have any questions regarding our comments, please do not hesitate to contact Mr. Tom Arminski at 561-8050. Sincerely, lic Gt — Dennis V. McCrohan Deputy Director, Energy WP0066.DOC j co no ie @Ef rm WALTER J. HICKEL, GOVERNOR iT fa\ | 6 Mis Jalil fa\N Xf STAY Or IAViSIAL® INIA DEPARTMENT OF NATURAL RESOURCES / C STREET, SUIT, February 24, 1994 DIVISION OF LAND f Et ! Tom Arminski Alaska Energy Authority FEB 24 1994 480 W. T } eae 99503 Alaska Industrial Development and Export Authority Dear Mr. Arminski: The enclosed maps depict state lands that may be designated or conveyed to the Mental Health Trust. This information is provided to give you an opportunity to comment on these potential designations or conveyances under the authority of AS 38.05.945. I have also attached a copy of the public notice for your information. Chapter 66, SLA 1991, establishes the basis for the reconstitution of the Mental Health Trust. Under this legislation, the state is to designate and convey to the Mental Health Trust Authority all unencumbered Original Mental Health Trust Land (OMHTL) (approximately 600,000 acres) and replace OMHTL encumbered by third-party interests with state land of equal value and similar characteristics. There are about 400,000 acres of non-conveyable OMHTL. The Settling Plaintiffs have nominated about 500,000 acres of state land throughout Alaska to compensate for the encumbered, non-conveyable OMHTL. Chapter 66 has not yet been approved by the court, and certain amendments may be necessary. Legislation may also be enacted during the current session of the Legislature to resolve the Mental Health Trust litigation in whole or part. This legislation may be separate from the overall Trust reconstitution process provided for under Chapter 66. The information in this letter is provided to meet the requirements of AS 38.05.945, should the Legislature enact such legislation. The purpose of this redesignation and conveyance is to replace some or all OMHTL that has been transferred or conveyed to third-party interests or that is within Legislatively Designated Areas (LDAs).! Much of this OMHTL was transferred or conveyed as a result of the Legislature redesignating Mental Health Trust Land as General Grant land in 1978. The Alaska Supreme Court determined that redesignation to be a breach of trust and ordered the State to reconstitute the Trust to the maximum extent practicable. Chapter 66 validates and protects title to OMHTL held by individuals and municipalities and protects other important areas, such as parks and game refuges, by replacing them with other state land. This land exchange will fulfill the obligation the Alaska Supreme Court imposed on the state to reconstitute the Mental Health Trust. In evaluating the public comment in response to this notice, the state must weigh the need to retain proposed replacement land in state ownership against the court imposed requirement to reconstitute the Trust, as well as the need to protect entities holding OMHTL. If the state land that is the subject of this notice is not conveyed to the Trust, other state land must be identified and conveyed to the Trust to complete the reconstitution of the Trust. 1 LDAs include, for example, state parks, forests, game refuges, recreation rivers, and critical habitat areas. Chapter 66 does provide for the conveyance of the OMHTL within the Haines and Tanana State Forests to the Mental Health Trust. MH/Pub. Not./SI-1 © printed on recycled paper b y C.C February 24, 1994 Page 2 We have enclosed regional overview maps of these nominations. There are also 1:63,360 USGS quadrangle maps of these nominations available for review at the Public Information Centers of the Department of Natural Resources.2 Department Personnel at these centers are available to answer questions. In addition, the boroughs listed below have copies of the USGS quadrangle maps on a statewide basis and the cities have quadrangle maps that directly pertain to their community.3 Note that the regional GIS map indicates three categories of land: Proposed Substitute Land, Disputed Proposed Substitute Land, and non-conveyable Original Trust Land. The latter category represents the areas of encumbered OMHTL for which compensation is required under Chapter 66. The ‘Disputed’ Proposed Substitute Land category represents those nominations to which the Department has expressed opposition. The basis for our objection is derived from our knowledge of the importance of a particular state facility or area. If additional clarification or information is required, you should have your staff contact the Department’s Public Information Centers listed below. Comments should be received on or before March 17, 1994. Thank you for your cooperation in this review. Sincerely, Ron Swanson, Director Attachment 2 Anchorage-762-2261, 3601 C Street, Suite 200; Fairbanks-451-2700, 3700 Airport Way; Juneau-465-3400, 400 Willoughby Ave., 4th floor. 3 Boroughs - Municipality of Anchorage, Denali, Fairbanks North Star, Haines, Juneau, Kenai Peninsula, Ketchikan Gateway, Kodiak Island, Lake and Peninsula, Matanuska-Susitna, North Slope, Northwest Arctic, Sitka, Yakutat. Cities - Barrow, Bettles, Coffman Cove, Cordova, Delta Junction, Fairbanks, Homer, Kasaan, Kenai, Ketchikan, Kupreanof, Nome, North Pole, Nulato, Pelican, Petersburg, Port Lions, Seldovia, Seward, Skagway, Soldotna, Tanana, Tenakee Springs, Thorne Bay, Valdez, Wasilla, Wrangell. MH/Pub. Not./SI-1 DEPARTMENT OF NATURAL RESOURCES DIVISION OF LAND Public Notice under AS 38.05.945 of the Proposed Redesignation and Conveyance of Land to Reconstitute the Mental Health Trust The Department of Natural Resources (Department) invites your comments on a proposal to redesignate or convey land or certain interests in state land to the Mental Health Trust Authority, once established under the provisions of Chapter 66, SLA 1991. Chapter 66 provides for the replacement of encumbered Original Mental Health Trust Land (OMHTL) through a process of land exchanges based upon equal fair market value, comparable character, benefit to the Trust, and overall public interest. In addition, the Legislature may enact legislation during 1994 that authorizes the redesignation or conveyance of state land to replace certain OMHITL parcels. This notice provides the opportunity for the public to comment on such proposed redesignations and conveyances to decide if the land described in this notice should be used for potential exchanges. The proposed exchanges are intended to validate and protect title to OMHTL held by individuals and municipalities and protect other important areas, such as parks and game refuges, by replacing them with other state land. Much of this OMHTL was transferred or conveyed as a result of the Legislature redesignating Mental Health Trust Land as General Grant land in 1978. The Alaska Supreme Court determined that redesignation to be a breach of trust and ordered the State to reconstitute the Mental Health Trust to the maximum extent practicable. These land exchanges will partially fulfill the obligation the Alaska Supreme Court imposed on the state to reconstitute the Mental Health Trust. In evaluating the public comment in response to this notice, the state must weigh the need to retain proposed replacement land in state ownership against the court imposed requirement to reconstitute the Trust, as well as the need to protect entities holding OMHTL. If the state land that is the subject of this notice is not conveyed to the Trust, other state land may be identified and conveyed to the Trust to complete the reconstitution of the Trust. Land Description and Information: The areas and approximate acreages shown below may be designated or conveyed as Mental Health Trust Land. State land that is the subject of this notice may be used in its entirety, or in part, to replace all or some part of the encumbered OMHTL. Community Parcels Acres Barrow 1 729 Bettles 1 605 Cordova 22 5,370 Chandalar 1 10,240 Chena Area 2 32,603 Copper River Basin 40 S172 Cape Yakataga 26 29,061 Delta Junction 77 19,013 DeLong Mountains 3 16,000 Denali 21 6,482 Elfin Cove 1 37 Fairbanks 155 24,171 MH/Public Notice-Display ad modified wording Gustavus 6 282 Haines 1 3,468 Healy 43 11,901 Homer 26 6,217 Tliamna 5 16,712 Juneau 31 19,343 Kodiak 2 1,788 Kenai-Soldotna 92 3,391 Ketchikan 234 21,127 Lake Minchumina 2 71 Livengood-Circle 8 32,470 McCarthy 5 16,686 Muni of Anchorage 10 2,711 Mat-Su 47 3,041 Nenana 26 2,765 Nulato 3 70,704 Nome 6 8 Northwest 1 640 Petersburg 131 11,619 Skagway 29 3,106 Salcha 21 2,057 Sitka 29 2,275 Seward 71 8,744 Talkeetna 3 689 Tanana 1 735 Tok 38 374 Tyonek 6 4,510 Valdez 16 10,190 Willow 40 521 Wrangell 52 8,787 Yakutat 1 767 More detailed information on these lands affected by the above action is available for review at the following Public Information Centers of the Department of Natural Resources: Anchorage- 3601 C Street, Suite 200; Fairbanks-3700 Airport Way; Juneau-400 Willoughby Ave., 4th floor. Maps of the affected state land are available at the following Municipal Offices: Boroughs - Municipality of Anchorage, Denali, Fairbanks North Star, Haines, Juneau, Kenai Peninsula, Ketchikan Gateway, Kodiak Island, Lake and Peninsula, Matanuska-Susitna, North Slope, Northwest Arctic, Sitka, Yakutat. Cities - Barrow, Bettles, Coffman Cove, Cordova, Delta Junction, Fairbanks, Homer, Kasaan, Kenai, Ketchikan, Kupreanof, Nome, North Pole, Nulato, Pelican, Petersburg, Port Lions, Seldovia, Seward, Skagway, Soldotna, Tanana, Tenakee Springs, Thorne Bay, Valdez, Wasilla, Wrangell. Public Comment: Comments from the public on this proposed action must be received in writing at the Division of Land, Attention: Mental Health Settlement Project, P.O. Box 107005, Anchorage, Alaska 99510-7005 on or before 4:30p.m. March 17, 1994. This deadline is required to supplement the administrative hearing record and to receive public comment solicited by this notice. 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