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Southeast News
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A Petersburg based tender turned in the salmon to the Alaska Department of Fish and Game. The fish came from a gillnetter in lower Sumner Strait. More...
The first Atlantic salmon caught this year in the Petersburg-Wrangell area was reported last week.
A Petersburg based tender turned in the salmon to the Alaska Department of Fish and Game. The fish came from a gillnetter in lower Sumner Strait.
Atlantic salmon are not native to Alaska but are farmed for meat in offshore net pens in the waters off British Columbia. Sometimes fish escape into the wild where they compete with wild salmon for food. Fish and Game Port sampling supervisor, Jeff Rice, says the most recent one caught should not be a cause for alarm.
“One atlantic salmon is pretty common in a given year. A couple years ago, we saw three of four after a big escape from the net fisheries, no net pens down in Canada.”
Rice says escapees are rarely caught. And so far, when they have been caught, their skin appears battered as opposed to silver. The color indicates that the fish only recently left their pens, as opposed to fish that might have been in the wild, actively competing with native salmon for food.
Fish and Game's invasive species program project leader Tammy Davis could not be reached for comment. The number of Atlantic salmon caught in the region is substantially down from the near 100 brought in yearly during the 1990s. From 2005 to present, one to three fish are reported caught annually, with the exception of 2008, when an escape in British Columbia led to 40 atlantic salmon were confirmed caught in Southeast waters.
Angoon holds key federal permits needed to study the Ruth and Scenery Lake hydropower projects in Thomas Bay, about 15 miles north of Petersburg.
The Admiralty Island village is about 70 miles northwest of the bay. And no one expects a power line to link the two anytime soon.
But backers say the completed projects could bring income to the cash-strapped city.
"It’s the future. Our community’s going to not exist anymore if we don’t look to the future and try to solve the problems that exist in the future," said Mayor Albert Howard, speaking at a recent tribal economic summit.
He’s been among those supporting a plan to partner with a private developer and seek government grants to build Ruth Lake.
"The city of Angoon operates on $500,000 a year. When you start these projects, once they get into place, you can get that $500,000 a year from these projects. It’s a revenue-generating project," he said.
But that plan appears to be on hold.
Meeting minutes show that Angoon’s City Council earlier this year voted to freeze all action on the projects. And the council recently asked its attorney to try to void all contracts with Cascade Creek. That’s the private company attempting to develop Ruth and Scenery Lakes, as well as the Thomas Bay project the firm is named after.
At the summit, speaker Ben Johnson said the council’s direction made sense.
"They made it clear at that time that the mayor was not to proceed any further with this project. That all resources and energy were supposed to be put toward getting Thayer Creek together and up and running. And that Ruth Lake was not to be put forward as it has been lately," he said.
Thayer is a nearby hydropower project being developed by Kootzoowoo, Angoon’s village Native corporation. Some supporters say the Ruth Lake project has taken focus and funding opportunities away from Thayer. That project is expected to stabilize or lower high power costs in the community.
Cascade Creek’s Tom Fisher attended the summit, where he discussed plans for developing hydroprojects. But in a recent phone interview from his Bellingham, Washington, office, he said he knew of no change in his company’s relationship with Angoon.
"Cascade Creek is in the middle of developing the Cascade Creek Project, which is right near those. A lot of what we do will overlap into the other ones. So as we do our field studies, we’re also doing studies that would be applicable to those other two projects," he said.
He said costs so far have been covered by Cascade Creek and its investors.
Fisher also said the company, which plans to go public and sell stock, will work with Angoon on figuring out how to pay for the hydroplants.
"There’s certain funding that municipalities can get that the rest of us can’t. There’s certain funding that Native American tribes can get that the rest of us can’t. And there’s certain funding private companies can get, such as ours, that would go public," he said.
A larger plan calls for running electrical lines across the border into British Columbia, and selling power through the mainland grid.
But city council minutes show that plan will not involve Angoon, at least for now. A number of contentious meetings this year have focused on Ruth Lake, Angoon’s relationship with Fisher, and the need to develop hydro closer to town.
Even Mayor Howard, one of Ruth Lake’s strongest supporters, said he wanted to cut ties with Cascade Creek and its employees. He said company officials lied to him and he was walking away from the arrangement.
But Angoon still holds Federal Energy Regulatory Commission permits needed to work toward building the projects. And they’re good for about another two years. Howard has suggested a partnership involving Petersburg, Wrangell and possibly other communities, though representative have not met to discuss that idea.
Petersburg, Wrangell and Cascade Creek, separately, also applied for those permits. And Petersburg has filed suit in the U.S. Court of Appeals, seeking to void Angoon’s permit. If it wins, it could have another shot at being the project’s developer.
Hear earlier reports:
Angoon proposes talks on hydro development, may drop agreement with private sector
The Poorman’s Mine project would tap a surface deposit of iron ore, also called magnetite, from a site near Kasaan. Eagle Industrial Minerals of Mill Valley, California, wants to develop the small open-pit project, about 30 miles northwest of Ketchikan.
Developer Chuck Eaton says he’s conducting an environmental evaluation to see if the project should proceed. He says he should have a better idea in six months to a year. Eaton wouldn’t speak on tape.
Jack DiMarchi of the state Department of Natural Resources is watching the project. If it’s developed, he says it would blast the ore out of the ground and collect iron using a magnetic separator.
"There’s no chemical treatment, there’s no heating process, there’s no fine grinding. Even the tailings is a relatively course material, part of which would be placed back in the pit. And some of it would probably be stored on the surface with some sort of soil cover on top of it," he said.
The company’s website says the deposit includes approximately 3 million tons of good quality magnetite. It says there are also small, but recoverable, amounts of copper and gold. DiMarchi says the mine, if it proceeds, might be active for about three years.
The proposal has raised concerns in Kasaan, a community of about 60 residents, because it’s less than a mile away. Neli Nelson works for the Organized Village of Kasaan, the Haida tribal government.
"It’s just so close to the town and they say there’s going to be no disturbance, but I just don’t feel that’s possible. They do blasting for rock and they can hear that further away than the mine is going to be," he said.
He says it would also disrupt plans for an ecotourism lodge the tribe wants to build.
Nelson says the tribe is also concerned that a salmon stream would have to be moved. DiMarchi says the state is also looking at that issue.
"Our approach is basically no loss of fish habitat. And that is an important issue for us. So he would have to come up with an acceptable design that would mitigate loss of fish habitat long term," he said.
Another concern is acid runoff, created when water reacts with a mine’s exposed rock. Guy Archibald follows mining issues for the Southeast Alaska Conservation Council.
"The main way of dealing with acid mine drainage in an open pit is just to flood it with water. That keeps the oxygen away from the rock so it doesn’t oxidize, and create sulfuric acid, which dissolves metals and heavy metals into the water table," he said.
He says that would be difficult for the Poorman’s Mine because it’s on a steep slope.
Eaton, the developer, says he’s heard the various concerns and is considering them as he decides whether to proceed.
The mine is surrounded by land owned by the Sealaska, Southeast’s regional Native corporation.
Michele Metz, of Sealaska’s Natural Resources Department, says it’s discussed options with Eaton.
"In order to get out they have to negotiate some kind of a lease agreement, whether it’s to build a road or ore belt or something to transfer the ore out of there. That would be Sealaska’s only involvement," she said.
But she says the corporation’s policy is for the developer to work out differences with the nearby community before proceeding.
The Poorman’s Mine is one of four projects being pursued by Eaton’s company. The others are in Utah and on Vancouver Island.
Other developers are also looking into Prince of Wales Island prospects. Niblack, a copper, zinc, gold and silver deposit, is being pursued by the CBR Gold Corporation of Alberta. And Bokan-Dotson Ridge, a former uranium mine, is being considered as a rare-earth-element project by Ucore Rare Metals of Nova Scotia.
Copper and other prospects are also being pursued on the island.
Miller, a Fairbanks attorney, admits he doesn’t have much experience with Southeast Alaska. But he says he’s heard a lot from the region’s residents since he began his campaign to replace Murkowski.
He says he’s gotten e-mails and calls from dozens of people concerned about the incumbent’s Sealaska lands-selection bill. He’s concluded its development has not been open and transparent.
"I think that if you’re a congressman or a congresswoman and you have a bill that’s proposed, I think that you shouldn’t be giving it selectively to one or two groups and asking those groups to keep it to themselves or not fully disseminating it to other groups. I think it’s critical that all constituents have access so that they’re part of that process," he said.
He’s called for Murkowski to withdraw the bill for further review and discussion.
The legislation would allow Sealaska to select land guaranteed by the Alaska Native Claims Settlement Act outside current legal boundaries. The regional Native corporation wants tens of thousands of acres of valuable Prince of Wales Island timberland. The bill also includes sites for energy, ecotourism and transportation development.
Congressional and campaign staffers say the public has had plenty of opportunities to review the measure and offer input. Robert Dillon is Murkowski’s Senate Energy and Natural Resources Committee spokesman.
"To suggest that the process hasn’t been open and transparent couldn’t be further from the truth. Senator Murkowski’s staff and the energy committee have held meetings in every affected community and taken testimony from thousands of Alaskans. Changes have been made because of that testimony and changes continue to be made based on that testimony to try to find a bill that strikes the proper balance," he said.
Hundreds of Southeast residents spoke for and against the measure during Congressional hearings held earlier this year. And proposed changes quietly circulated among interest groups were made public this month.
Miller says some residents are telling him their concerns were ignored.
"Yeh, we had meetings. Yeh, we actually got to say something. But was anything we said actually considered? Did we actually see a consequence? Or was there any evidence that what we actually did had any impact on the ultimate outcome? That’s why they’re saying, and why I’ve got concern in part about the process, it doesn’t appear that that’s had an impact," he said.
Murkowski staffers say the proposed changes, which have yet to be finalized, show that the office has been listening.
Sealaska CEO Chris McNeil says the corporation has agreed to numerous public requests to change the bill. He points to amendments shifting timberland selections and removing about a third of the future-development sites.
"There has been a desire for us, for Sealaska to move some of its original selections into yet other areas. And our board has considered these changes and has been responsive to them so that the new maps, which have been published, represent a significant change," he said.
Those changes have not satisfied critics, including a group of small communities on or near Prince of Wales Island. Environmental groups, including the Southeast Alaska Conservation Council, also continue to oppose the bill’s focus on large-scale logging. (Hear a report on community opposition.)
Miller says he’s not allying himself with environmentalists, and wants to see federal land opened to development. But he shares concerns from a hunting and fishing group that the bill could lead to stronger federal protections for wildlife, which could limit development.
Dillon, of Murkowski’s office, says the measure will not be finalized before the end of July. It’s not expected to pass on its own, but could be added to a larger lands bill.
The Department of Law filed a lawsuit in March over continuing problems with equipment powering the ferries Fairweather and Chenega. The suit named Derecktor, the east Coast shipyard that built the vessels, as well as the German company that made the engines.
The parties were already discussing solutions when the lawsuit was filed. Marine Highway General Manager John Falvey says talks are ongoing.
"We are in the process of mediating that situation as to how we remedy the situation of the engines that do have a mechanical problem. That’s an ongoing thing with the attorney general’s office," he said.
The Fairweather and Chenega are 235-foot aluminum-hulled catamarans. The Juneau-based Fairweather sails to Sitka, Petersburg, Haines and Skagway. The Cordova-based Chenega sails to Valdez and Whittier. Both carry up to 35 vehicles and 250 passengers.
Falvey says one solution would be to replace the engines. Only eight were made, four each for the two ferries. But he says another widely-used engine could probably substitute.
"They are a very high horsepower lightweight highly turbocharged engine. They tend to operate at the edge of the operational envelope. They’re under a lot of stress and strain," he said.
The Chenega just underwent its first major overhaul, which cost about $5.2 million. The ferry tied up in Ketchikan and its engines were removed and shipped to Kent, Washington for repairs.
It’s the same overhaul the Fairweather underwent a year ago.

"We completely dismantle those engines. Every single part is inspected. New parts where needed, and remanufacturing and conditioning of things," he said. "Those engines were completely inspected, checked and put back together and we have the boat operating again."
The Chenega resumed sailing in Prince William Sound on July 1st. Falvey says it will run through the winter. Officials earlier said the lightweight ship might not be able to handle the weather.
The Chenega sails Prince William Sound.
Image by AMHS/Peter Metcalfe.
The original bill allowed Sealaska to select a significant amount of timberland on northern Prince of Wales Island. That drew opposition from the area’s small communities, which hunt, fish and conduct small-scale logging on some of the acreage.
The revised measure shifts most harvest areas to other parts of the island, as well as remote islands to the west and north.
Murkowski spokesman Robert Dillon says those and other changes are an attempt at a compromise.
"You’re trying to resolve Sealaska shareholders’ land claims. But you also realize fully that there are people who have lived there a long time. And that different interest groups have staked their interest in the area and you want to be responsive to their concerns," he said.
Sealaska says the changes appear to keep timber acreage about the same, as well as the balance of old- and second-growth forest.
Overall, the measure turns up to 85,000 acres of Tongass National Forest land over to the Southeast regional Native corporation. It would complete selections promised by the Alaska Native Claims Settlement Act.
Sealaska needs Congressional approval to select land outside ANCSA boundaries. It says most of that land is not appropriate for logging or other development, since it involves valuable wildlife habitat or community watersheds.
In addition to timber land, the bill authorizes selection of what are called Native Futures Sites. The Juneau-based corporation is concerned the revision drops 17 of those 46 properties.
"Our hope was to provide different opportunities throughout the region for alternative economic development beyond timber and mineral development," said Jaeleen Kookesh Araujo, Sealaska’s general counsel.
"We thought it was a good thing to offer some different alternatives for economic development. So it is disappointing but I think we still have some sites to work with and hopefully we’re still going to be able to reach all of our communities in the region," she said.
The remaining sites are slated for ecotourism, transportation and energy development.
Araujo says Sealaska has objections to other revisions, such as the removal of some sacred and educational sites. And it will try to restore some of those before the revisions become final.
"But we still believe that there’s still a package here that is still worthwhile to pursue and that will still meet the economic, social and cultural needs of our corporation and met the economic needs of our region," she said.
The legislation has faced opposition from environmental organizations. The revisions try to meet some of those concerns by setting aside 150,000 acres to offset logging impacts on Prince of Wales.
The groups say that’s not enough. They say it still allows too much logging and just shifts environmental impacts from one area to another.
"Overall we still think the proposal provides a solution for a single stakeholder and doesn’t go far enough to mitigate the concerns that we had," said Laurie Cooper, Rainforest Program director at the Juneau office of the Alaska Wilderness League.
"Certainly we recognize that there have been some additions for conservation. But in an island like Prince of Wales where the impacts have already been so high there is a much higher level of scrutiny of what more intensive logging would mean in a more focused area, which is what Sealaska is proposing," she said.
Owen Graham, executive director of the Alaska Forest Association, based in Ketchikan, doesn’t like the additional conservation areas.
"I’m going to personally hold my nose and support the legislation," he said. "To add a bunch more set-asides is silly. They’re not big fisheries or wildlife areas. They’re just another notch in the pistol for the conservationists. But if that’s the price we have to pay to keep the jobs going, I guess it’s a small price to pay and we’re willing to pay it."
He says the bill will keep Sealaska logging going, while leaving enough Forest Service timber to support area mills.
"The way the senator’s got the bill now it will have no negative impact on the Viking Mill. I think she made some good changes and I think it’s a good piece of legislation. We’re frankly getting pretty desperate about hanging onto those Sealaska jobs so the sooner they get this passed the better," he said.
The revised bill is not the final measure to be presented to Congress.
Murkowski spokesman Dillon says it was released to answer allegations it was being revised in secret.
"I think Senator Murkowski felt that even though it is not done and the bill isn’t approved and she hasn’t signed off on it, but if people feel they’re not having enough buy-in in the process then let’s put this out now and let people comment while we do," he said.
It’s not clear when the bill will next be heard. It’s in the Senate Energy and Natural Resources Committee, where Murkowski is the ranking Republican.
Link to the Murkowski press release with more details on the changes.
Link to the Sealaska's lands bill website.
Read SEACC's take on the bill.
Hear an earlier report on changes being circulated in June.
Lines promised to drop the suit if the Legislature passed a bill reducing the tax and changing its structure. Governor Sean Parnell signed that bill last week (June 24). The suit was dismissed with prejudice, which means the lines will not sue again over the issue.
Voters imposed the $46-per-person tax by passing the 2006 Cruise Ship Initiative.
Legislation passed in April removed a regional impact fund, which directed some tax proceeds to communities hundreds of miles from cruise-ship docks. The industry pointed to federal legislation requiring cruise taxes be used closer to ports.
The bill also reduces the fee by the amount collected by Ketchikan and Juneau, which charge their own head taxes. Most ships sailing Alaska waters stop at both communities.
As a result, most passengers will see their tax drop about 60 percent, to $19.50. The reduction will be in effect for the 2011 tourist season.
The bill made no change to a $4 passenger fee that funds an onboard environmental monitoring program.
Supporters and cruise lines say the change will bring more ships and passengers to Alaska. Critics say ship numbers, which are shrinking, are affected more by the world economy than state taxes.
Hear a report about the bill signing.


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