NON-RIGHT-OF-WAY LANDS (continued)

9,028 (80,400,000)

4737.4 Acres

STATEMENT OF ROBERT W. WARD

COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES

STATE OF ALASKA

Mr. Chairman, Members of the Public Lands and National Parks Subcommittee, I am Robert W. Ward, Commissioner of the Alaska Department of Transportation and Public Facilities. Thank you for this opportunity to appear before you today to present the views of the State of Alaska regarding H. R. 6308, which contains provisions relating to the disposition of the Alaska Railroad to the State of Alaska. I should mention that my testimony here today represents not only the views of the Hammond Administration, but also those of key members from the Alaska State Legislature.

The continued operation of the Alaska Railroad in a viable

manner is critical to the economic well-being of our State. Undoubtedly, it will also play a major and crucial role in our future development. In light of the determination of the national Administration to end Federal involvement with the railroad, we support the notion that the railroad be transferred to the State. To that end, we have participated in discussions with the Administration and in the Congressional process in a good faith effort to structure an acceptable framework for the transfer.

The successful and orderly transfer of an institution as unique as the Alaska Railroad out of the Federal Government raises a number of difficult questions. While the bill introduced at the request of

the Administration has identified and attempts to deal with most of them, we have developed a somewhat different approach in some areas. Before describing our concerns in greater detail, with particular emphasis on the land-related concerns of this Subcommittee, I would first like to offer the premise of the State's approach.

The railroad's recently improved "balance sheet" notwithstanding, the Alaska Railroad remains a marginal operation. For this reason as well as out of a fundamental interest in retaining the essential competitive posture of the railroad, the State has insisted that the railroad be transferred with the same flexibility the Federal Government currently has in operating the railroad itself. This means that no artificial restraints should be imposed on its ability to operate. This principle has guided the development of the State's substantive concerns with respect to rail lands, employees and the regulatory climate in which the railroad will operate. Particularly with respect to regulation of the railroad, the State feels strongly that the Alaska Railroad should be treated no differently than any other railroad of its class in operation in the Lower 48. The railroad, upon transfer, will shed its privileged status as the only railroad operated by the United States Government. To suggest that anything more restrictive than normal I.C.C. regulation, under the same circumstances attendant any other railroad, is neither necessary nor acceptable to the State and would jeopardize the future viability of the railroad.

The State has remained actively aware of subsequent drafts

of transfer legislation, and when appropriate, has offered substantive improvements relative to our major concerns. These fall into three broad areas: employees, rail lands, and the regulatory climate in which the railroad will operate. During this process, we in the Administration have been working closely with key members of the legislature to develop a broader consensus with respect to the State's position on the transfer legislation.

In the area of rail lands, the State's position has matured and we now propose to approach some of these issues somewhat differently than we initially envisioned. This area presents a troublesome set of issues. Under Federal ownership, the railroad has not had to worry about the quality of its title to the land over which it operates. However, our research has indicated that management of rail lands has been loose and was certainly never undertaken with an eye towards this transfer. Our fundamental concern is that the State receive an interest in rail properties sufficient to ensure continued operation of the railroad as it exists today.

Accordingly,

a number of changes to the original bill were suggested which would shore up the quality of title the State would receive.

It is my understanding that this Subcommittee has several specific land-related concerns relative to the proposed transfer. will now address myself to the State's view on each of these items:

I

(1) Railroad Inholdings in Denali National Park: The State
endorses the approach in the Administration bill which
would convey to the National Park System all railroad
parcels which are not being used for railroad purposes.
Our major concern relates to the right-of-way land within
the park boundaries and our need to be able to conduct
normal rail operations without interference. Section

202 (3) (a) of ANILCA itself recognized this concern, and
we would support the continuation of similar language
which mandated coordination between the Secretary of the
Interior and the State on appropriate regulation of
activity within this area.

(2) Future Rights-of-Way:

The railroad today consists of some

419 miles of main line track and 115 miles in branch lines.
In order to best serve the growing need for transportation
infrastructure in Alaska, we envision expanding the rail-

road eventually.

As you can appreciate, since the Federal Government remains the largest landholder in Alaska, traversing Federal land will be necessary to accomplish the envisioned expansion. Existing law seems to provide mechanisms for securing such rights-of-way. While it remains to be seen whether existing law will cover all our needs, the State hopes that these mechanisms will prove adequate and therefore, will not seek the inclusion of a totally new process for obtaining these rights-of-way.

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