SENATE COMMITTEE ON WATER AND LAND USE

January 27, 2003 Hearing Room D

3:00 p.m. Tapes 3 - 5

MEMBERS PRESENT: Sen. Ted Ferrioli, Chair

Sen. Charlie Ringo, Vice-Chair

Sen. Jason Atkinson

Sen. Rick Metsger

STAFF PRESENT: Judith Callens, Committee Administrator

Megan Jensen, Committee Assistant

MEASURE/ISSUES HEARD: Informational Meeting

Division of State Lands overview

Department of Land Conservation and Development overview

Oregonians in Action Land Use comments

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 3, A
005	Chair Ferrioli	Calls meeting to order at 3:10 pm. Opens informational meeting.
INFORMATIONAL MEETING
010	Ann Hanus	Director of Division of State Lands (DSL). Presents overview of DSL (EXHIBIT A). States that the purpose of DSL is to manage Common School Fund assets and provides an overview of the Common School Fund.
042	Hanus	Continues discussion of DSL organization. Land management activities include: Submerged and submersible waterways leases Timber harvests in the Elliott State Forest Communication site leasing Fiber optic cables from international areas Gravel mining royalties, mineral gas exploration and grazing. Discusses overview of DSL land management and finances. Indicates that DSL contracts with the Oregon Department of Forestry to manage the Elliott State Forest and is currently involved in revising their management plan.
090	Sen. Ringo	Inquires why DSL manages Elliott State Forest and not other state forests.
099	Hanus	Explains that the Elliott is held in trust for the Common School Fund, while other state forests are held in trust to benefits counties.
110	Chair Ferrioli	Comments on history of Common School Fund and the creation of the Elliott State Forest.
120	Sen. Ringo	Clarifies explanation of Common School Fund.
121	Hanus	Elaborates on land management plan for the Common School Fund.
122 132	Sen. Metsger	Clarifies that the federal government gave states rights to certain properties but can trade those rights for other properties.
149	Sen. Ringo	Inquires about DSL rangeland leases.
151	Hanus	Responds.
160	Chair Ferrioli	Asks whether rangelands are leased for fair market value.
163	Steve Purchase	DSL Assistant Director. Replies and submits written materials (EXHIBIT B).
198	Chair Ferrioli	Comments on rangelands leasing issue.
200	Sen. Ringo	Questions the amount the state received for range leases.
202	Purchase	Responds.
212	Hanus	Explains DSL Removal-Fill Program. Refers to the Columbia County Rock Creek removal-fill project and the irrigation diversion on North Fork of Butte Creek near Eagle Point.
235	Chair Ferrioli	Asks about situations that are exempt from removal and fill permits.
243	Purchase	Clarifies situations where removal and fill permits are not necessary.
273	Chair Ferrioli	Asks for explanation of a “push up dam.”
276	Purchase	Explains that a push up dam is created by using pushing up the ground to create a diversion that would direct water into a stockpiling area. Describes permit-exempt situations for removal and fill permitting.
305	Chair Ferrioli	Comments that permit exempt situations are confusing and questions the minimum amount of removal or fill necessary for requiring a permit.
319	Purchase	Responds.
328	Chair Ferrioli	Suggests that the DSL permitting brochure might be made more clear.
339	Purchase	Acknowledges that the information needs clarification.
355	Chair Ferrioli	Refers to SB 219, which intends to help clarify those issues.
362	Purchase	Responds.
366	Sen. Atkinson	Reiterates the confusion with the amount of removal or fill allowed without a permit. Asks for comments on SB 172 (01) and what administrative rules have been put in place since last session.
396	Purchase	Responds.
427	Hanus	States that SB 219 allows DSL to move forward and assume Section 404 of the Federal Clean Water Act in order to streamline the removal fill permitting process.
435	Chair Ferrioli	Reiterates that DSL should clarify permitting to help move forward with Section 404.
455	Hanus	Responds.

TAPE 4, B (Tapes recorded out of order, numbers are correct)
003	John Lily	DSL Assistant Director. Discusses the implementation of SB 172 and DSL’s policy for improving certainty, consistency, conservation and service.
060	Lily	Continues.
082	Hanus	Remarks that public workshops were held with other states that had Section 404. Continues DSL overview with discussion of Industrial Lands Wetlands Project.
100	Chair Ferrioli	Asks if there is an element of mitigation banking in the project.
103	Hanus	Responds. Continues discussion of Wetlands Project.
110	Chair Ferrioli	Requests clarification of permitting issues surrounding isolated and unconnected wetlands.
112	Hanus	Responds.
126	Sen. Ringo	Requests clarification on definition of isolated wetland.
129	Hanus	States that it is not connected to a waterway.
140	Lily	Provides detailed explanation of DSL policies for isolated wetlands.
182	Hanus	Continues DSL overview: · Common School Fund · DSL legislation (EXHIBIT C) · Current agency issues (EXHIBIT D)
282	Hanus	Continues discussion of removal-fill permit concerns.
347	Sen. Metsger	Questions state ownership of submerged lands.
360	Purchase	Responds that they are statutory lands and discusses DSL submerged lands policies.
TAPE 3, B
005	Sen. Metsger	Asks if the state has the right to sell submerged lands in some cases.
110	Purchase	Explains that submersible lands are the areas between high and low waters. States that he believes the state could transfer those lands subject to public trust authorities, but the issue needs more legal analysis.
018	Chair Ferrioli	Asks for the citation with a phrase that states that waterways are to remain forever free.
020	Purchase	Refers to an Oregon Admissions Act requirement.
026	Chair Ferrioli	Inquires about the meaning of that requirement.
027	Purchase	Responds.
030	Chair Ferrioli	Brings up the issue of why the state would charge a fee for the utilization of some of waterways if waterways are supposed to be free highways.
035	Sen. Metsger	Asks about the state’s rights for asserting cleanup of lands they own when contaminated by private citizens.
049	Purchase	States that state lessees must pay for hazardous waste damage and elaborates on DSL policies.
080	Sen. Metsger	Asks if that requirement would apply to a situation that happened sometime in the past.
082	Purchase	Responds.
090	Bob Rindy	Department of Land Conservation and Development (DLCD) Policy Coordinator. Provides DLCD overview and discusses legislative concerns.
150	Rindy	Continues discussing DLCD legislative concerns (EXHIBIT E).
200	Rindy	Discusses how local governments can make sure there is a sufficient supply of land for commercial and industrial development.
250	Rindy	Brings up periodic review issues.
320	Rindy	Suggests starting a process of reengagement for Oregonians in the land use program.
331	Chair Ferrioli	Requests clarification about what agencies were connected by the Governor’s Executive Order 98-10.
340	Rindy	Offers a brief overview on implementation of Executive Order 98-10.
389	Chair Ferrioli	Inquires whether the Community Solutions Team concept is still viable.
392	Rindy	Responds.
TAPE 5, A
005	Chair Ferrioli	Asks if agency land use programs distort local markets.
027	Rindy	Responds that DLCD has not benchmarked that issue and relates examples of other studies.
040	Chair Ferrioli	Suggests that the issue is availability, not suitability, of lands in urban growth boundary.
050	Rindy	Responds.
070	Chair Ferrioli	States that he looks forward to continuing discussions on water and land use issues.
080	Ross Day	Oregonians in Action Land Use (OALU) Director of Legal Affairs. Provides comments on OALU.
130	Day	Continues discussion of increasing equity and efficiency in land use policies and processes.
180	Sen. Ringo	Asks if OALU would make the financial contributors list public.
195	Day	Responds that their financial contributor list is as public as any other non-profit organization.
227	Sen. Ringo	Remarks on urban sprawl and invites OALU to present specific solutions to land use problems at future meetings.
237	Day	Suggests restoring local control as a possible solution.
260	Ferrioli	Closes informational meeting. Adjourns the meeting at 4:50 p.m.

EXHIBIT SUMMARY

A – Informational Meeting, DSL, written testimony, Ann Hanus, 10 pp.

B – Informational Meeting, DSL, permit brochure, Steve Purchase, 2 pp.

C – Informational Meeting, DSL, legislative proposal, Ann Hanus, 1 pp.

D – Informational Meeting, DSL, agency contacts, Ann Hanus, 1 pp.

E – Informational Meeting, DLCD, written report, Bob Rindy, 95 pp.