00001 1 EXXON VALDEZ OIL SPILL 2 TRUSTEE COUNCIL 3 Public Meeting 4 Friday, June 14, 2002 5 10:00 o'clock a.m. 6 441 West 5th Avenue, Suite 500 7 Anchorage, Alaska 8 TRUSTEE COUNCIL MEMBERS PRESENT: 9 STATE OF ALASKA - MR. CRAIG TILLERY 10 DEPARTMENT OF LAW: Assistant Attorney General 11 (Chairman) State of Alaska 12 U.S. DEPARTMENT OF AGRICULTURE, MR. DAVE GIBBONS 13 U.S. FOREST SERVICE Forest Supervisor 14 U.S. DEPARTMENT OF COMMERCE, MR. JAMES W. BALSIGER 15 National Marine Fisheries Svc: Administrator, AK Region 16 STATE OF ALASKA - DEPARTMENT MR. FRANK RUE 17 OF FISH AND GAME: (Telephone) Commissioner 18 U.S. DEPARTMENT OF INTERIOR: MS. DRUE PEARCE 19 U.S. Department of Interior 20 STATE OF ALASKA - DEPARTMENT MR. RON KLEIN for 21 OF ENVIRONMENTAL CONSERVATION: Commissioner Brown 22 Proceedings electronically recorded, then transcribed by: 23 Computer Matrix Court Reporters, LLC, 3522 West 27th, 24 Anchorage, AK 99517 - 243-0668 00002 1 TRUSTEE COUNCIL STAFF PRESENT: 2 MS. MOLLY McCAMMON Executive Director 3 MS. SANDRA SCHUBERT Program Coordinator 4 DR. PHIL MUNDY Science Coordinator 5 DR. BOB SPIES Chief Scientist 6 MS. PAULA BANKS Administrative Assistant 7 MS. DEBBIE HENNIGH Special Staff Assistant 8 MR. ROBERT WALKER Data Manager 9 MS. CARRIE GOMBOS Intern, Department of Law 10 MS. DEDE BOHN U.S. Geological Service 11 MR. KEN HOLBROOK U.S. Forest Service 12 MR. STEVE SHUCK U.S. Fish and Wildlife Svc. 13 MR. BILL HAUSER ADF&G 14 MS. CAROL FRIES ADNR 15 MR. ALEX SWIDERSKI Department of Law 16 MR. BUD RICE National Park Service 17 MR. JIM BODKIN USGS 18 MS. REGINA BELT Department of Justice 19 MR. DOUG MUTTER Department of Interior 00003 1 TABLE OF CONTENTS 2 3 Call to Order 04 4 Approval of Agenda 05 5 Approval of Meeting Notes (April 18, 2002) 06 6 Executive Director's Report 06 7 8 PUBLIC COMMENT 12 9 10 Ms. Patty Brown-Schwalenberg 13 11 Mr. Gary Kompkoff 15 12 Ms. Michelle Wilson Nordhoff 16 13 Mr. Jim Adams 25 14 Mr. Craig Matkin 30 15 Ms. Theresa Obermeyer 40 16 Mr. Henry Makarka 46 17 Ms. Nancy Hillstrand 137 18 19 Old Harbor Land Exchange 59 20 Revisions to Draft PAC Charter 66 21 Solicitations of Subcommittee and PAC Nominations 75 22 GEM Briefing on NRC Report 82 23 FY03 Draft Invitation, Phase II 109 24 Revised Operating and Report Procedures 114 25 Adjournment 151 00004 1 P R O C E E D I N G S 2 (On record - 10:05 a.m.) 3 CHAIRMAN TILLERY: This is the June 14th 4 meeting of the Exxon Valdez Oil Spill Trustee Council. I'm 5 Craig Tillery, the Chair of the meeting today. With us we 6 have Dave Gibbons with the Forest Service; Ron Klein is 7 representing Commissioner Michele Brown for the Department 8 of Environmental Conservation. Jim Balsiger is not here, 9 right now he is apparently on his way in from the airport 10 and should be here shortly. Drew Pearce is with us from 11 the Department of the Interior and Frank Rue should be on 12 line from Fish and Game. Frank, are you on line? 13 (No audible response) 14 CHAIRMAN TILLERY: Frank? 15 (No audible response) 16 CHAIRMAN TILLERY: Okay, we're..... 17 MR. MEACHAM: This is Chuck Meacham in 18 Juneau with the Public Advisory Group and I am on line. 19 CHAIRMAN TILLERY: Okay, thank you, Chuck. 20 You haven't seen Frank, have you? 21 MR MEACHAM: Negative. 22 CHAIRMAN TILLERY: Okay. So we're going to 23 wait a few minutes until Jim Balsiger gets here and until 24 Frank Rue is available. Public testimony is scheduled to 25 begin at 10:15, if Mr. Balsiger has not gotten here by 00005 1 then, what I'm going to do is see if there's anyone who 2 needs to testify right away because of time limitations, we 3 can go ahead and take that testimony, otherwise it's 4 obviously preferable to wait until everyone is here. 5 So we'll be in recess for a few minutes 6 until we hear from our other members of the Council. 7 (Off record - 10;07 a.m.) 8 (On record - 10:09 a.m.) 9 CHAIRMAN TILLERY: We're still waiting for 10 Mr. Balsiger, he should be here shortly, the plane has 11 arrived, I'm informed he should actually be here very soon. 12 What we're going to go ahead and do is to start with the 13 meeting at this time and he should be here by the time that 14 we get to public comment. So the first item on the agenda 15 is the approval of the agenda. 16 MS. PEARCE: So moved, Mr. Chairman. 17 CHAIRMAN TILLERY: It's been moved, is 18 there a second? 19 MR. KLEIN: Second. 20 CHAIRMAN TILLERY: It's been moved and 21 seconded to approve the agenda; is there any discussion? 22 (No audible response) 23 CHAIRMAN TILLERY: Hearing none, all in 24 favor say aye. 25 IN UNISON: Aye. 00006 1 CHAIRMAN TILLERY: Okay, the agenda is 2 approved. The second item is the approval of the meeting 3 notes from the April 18th, 2002 meeting; is there a motion? 4 MS. PEARCE: So moved. 5 CHAIRMAN TILLERY: It's been moved. 6 MR. KLEIN: Second. 7 CHAIRMAN TILLERY: And Mr. Klein has 8 seconded the motion. Is anyone opposed? 9 (No audible response) 10 CHAIRMAN TILLERY: Okay, the April 18, 2002 11 meeting notes are approved. The next item on the agenda is 12 the Executive Director's report. Ms. McCammon. 13 MS. McCAMMON: Mr. Chairman, thank you. I 14 have a few items I wanted to report on. First of all you 15 have your investment reports through April of this year. 16 We do have just some preliminary numbers from the 17 Department of Revenue for May, and the fund did earn 18 310,000 in May. And we'll get you those full reports when 19 we receive them. 20 The Investment Work Group will be meeting 21 in July. According to the resolution that the Council 22 adopted in March of 1999, the investment account gets split 23 into two funds on October 1. One will be for research 24 monitoring, general restoration and one for habitat 25 protection activities. And so we'll be preparing to get 00007 1 that account set up. The habitat account itself gets split 2 into a further account, assuming that the Koniag agreement 3 gets finalized by that time. And then it would be the 4 Koniag subaccount and the habitat account and then the 5 remainder, which is about 25 million, would be available 6 for other habitat protection activities. 7 The agreement that we had with Koniag is 8 that the Trustee Council would be responsible for investing 9 those funds, but with input from Koniag. And so we do plan 10 on having some meetings later in the summer talking to them 11 about what that investment structure might look like and 12 whether it would be different than what the Trustee Council 13 has. There was some talk earlier that they might want a 14 more aggressive investment strategy, but I'm not sure, but 15 that's their thinking right now. 16 The other thing I needed to report on is 17 that John Jenks, who is head of the Treasury Division at 18 the Alaska Department of Revenue, has resigned to take a 19 new position in San Francisco. He's being replaced by Lee 20 Livermore, who has been working at Treasury for about two 21 years. So there is a transition there. We met with both 22 John and Lee, we're assured that there will be no 23 significant changes in how Department of Revenue operates 24 and is managing the funds, but it something that we should 25 be aware of and kind of keep our eyes open, especially as 00008 1 we get to the change in administration. 2 (Mr. Balsiger arrives - 10:12 a.m.) 3 MS. McCAMMON: Also in your packet you have 4 a quarterly project report and basically most things are 5 going forward. We continue to have a problem, once again, 6 with late reports. A number of these go back a number of 7 years. So any assistance from you in getting reports that 8 come from within your agency, getting those to us, would be 9 greatly appreciative. 10 In May we held the last meeting of our core 11 reviewer group in Homer, this was led by Chief Scientist 12 Bob Spies and kind of our core group, Pete Peterson, George 13 Rose, Steve Braund, Jim Reynolds, I think there's one more 14 here that I'm missing. And they met for two days and then 15 had a half day meeting with the new Scientific and 16 Technical Advisory Committee. It was a really nice 17 transition to have that as their final meeting and be able 18 to meet with the new STAC. And we'll be talking a little 19 bit more later about the STAC process. 20 Next week we are busy finalizing all the 21 arrangements for the Oceans and Watershed Symposium. We 22 have approximately 350 to 375 people signed up. I think 23 there's going to be excellent attendance, so I hope all of 24 you can be there for that.