PRELIMINARY DECISION

Transcription

1 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINING, LAND AND WATER PRELIMINARY DECISION ADL Trinity Point communications site ADL Pigot Bay communications site Alaska Wireless Network, LLC Application for Lease AS (e) This Preliminary Decision (PD) is the initial determination on a proposed disposal of interest in State land and is subject to comments received during the public notice period. The public is invited to comment on this PD. The deadline for commenting is 5:00 PM October 26, Please see the comments section on page 8 of this decision for details on how and where to send comments for consideration. Only the applicant and those who comment have the right to appeal the Final Finding and Decision (FFD). Proposed Action: The Department of Natural Resources (DNR), Division of Mining, Land and Water (DMLW), Southcentral Regional Office (SCRO) has received a request from the Alaska Wireless Network, LLC (AWN) to lease a total of +/- 2 acres of land for 10 years for the Trinity Point and Pigot Bay communications sites. The location of the Trinity Point site is further described as being within Section 10, Township 8 north, Range 5 ast, Seward Meridian. The location of the Pigot Bay site is further described as being within Section 25, Township 9 north, Range 6 east, Seward Meridian. AWN is proposing to use these sites for the continued operation and maintenance of existing communication towers and associated equipment to provide communication services to Whittier, Alaska and the surrounding area. SCRO is considering the issuance of 10-year leases under AS (e) to AWN for the continued operation and maintenance of the existing Trinity Point and Pigot Bay communications sites. Scope of Review: The scope of this decision is to determine if it is the State s best interest to issue 10-year leases for. Preliminary Decision Page 1 of 18

2 Authority: This lease application is being adjudicated pursuant to AS (b)(1) and AS (e) Powers and Duties of the Director; AS (b) Generally; AS (e) Public and Charitable; and AS Notice. The authority to execute the FFD and leases have been delegated to the Regional Managers of DMLW. Administrative Record: Case files constitute the administrative record for the Trinity Point and Pigot Bay lease applications. Legal Description, Location, and Geographical Features: The State land where this proposed lease site is located is described as follows: Trinity Point Communications Site (ADL ) Legal description: Section 10, Township 8 north, range 5 east, Seward Meridian Geographical location: Southside of Passage Canal, west side of Shotgun Cove, 4 miles east of Whittier, USGS map Seward D-5 Approximate Lat/Long: 60 48' 22.9" N, ' 20.0" W Existing surveys: None Municipality/Borough: Valdez-Cordova Census Area Native Corporations/Federally Recognized Tribes: None Size: +/- 1 acre Pigot Bay Communications Site (ADL ) Legal description: Section 25, Township 9 north, Range 6 east, Seward Meridian Geographical location: Northeast side of Pigot Bay, south side of Zeigler Cove, USGS map Seward D-4 Approximate Lat/Long: N, W Existing surveys: None Municipality/Borough: Valdez-Cordova Census Area Native Corporations/Federally Recognized Tribes: None Size: +/- 1 acre Title: Trinity Point Communications Site (ADL ) The State of Alaska holds fee title to the subject land and mineral estates under U. S. Patent No dated May 17, A DNR Title Report (9557) issued on May 11, 2017 from DMLW s Preliminary Decision Page 2 of 18

3 Realty Services Section attests that aside from the usual reservations for ditches, canals, railroads, telegraph and telephone lines, and water rights. Pigot Bay Communications Site (ADL ) The State of Alaska holds fee title to the subject land and mineral estates under U. S. Patent No dated September 24, A DNR Title Report (9558) issued on May 11, 2017 from DMLW s Realty Services Section attests that aside from the usual reservations for ditches, canals, railroads, telegraph and telephone lines, and water rights. Third Party Interests: There are no known third party interests. Classification and Planning: Trinity Point Communications Site (ADL ) The Trinity Point site (ADL ) is subject to the Prince William Sound Area Plan, Management Unit 2: Passage Canal, Subunit 2f: Shotgun Cove and Vicinity. The primary surface classification for these lands are Settlement and Public Recreation. Due to the remote and isolated location of the site, there should be very little interference with public recreation or other public uses. ADL is compatible with the management intent designated in the area plan. Pigot Bay Communications Site (ADL ) The Pigot Bay site (ADL ) is subject to the Prince William Sound Area Plan, Management Unit 5: Port Wells, Subunit 5d: Ziegler Cove in Pigot Bay. As per Land Classification Order SC , the lands are classified as Public Recreation and Wildlife Habitat. Due to the remote and isolated location of the site, there should be very little interference with public recreation or other public uses. Further, land leases are allowed and are considered a compatible use under the Public Recreation and Wildlife Habitat designations, therefore ADL is compatable with the management intent designated in SC Access: Access to the remote Trinity Point site (ADL ) is by foot, boat, or helicopter. The site is accessed by boat from Whittier Harbor to Shotgun Cove, approximately 4 miles east. A narrow, steep, and overgrown trail that leads to the site, approximately 600 in elevation, makes access by foot difficult. The surface at the site is covered to a depth of 6 or less of topsoil with a bedrock out-cropping scattered throughout the area. Access to the remote Pigot Bay site (ADL ) is by foot, boat, or helicopter. The site is accessed by boat from Whittier Harbor to Ziegler Cove, approximately 11 miles east. A narrow, steep, and overgrown trail that leads to the site, approximately 700 in elevation, makes access by foot difficult. Preliminary Decision Page 3 of 18

4 Agency Review: A combined agency review was conducted on February 24, 2017 for both sites. The deadline for agency comments was March 27, The following agencies were included in the review: DNR DMLW Mining DNR Parks and Recreation DNR DMLW Water DNR DMLW Realty Services DNR Office of History and Archaeology/SHPO DNR Land Sales DNR Department of Agriculture DNR Contract Administration DNR Division of Oil and Gas DNR Natural Resource Conservation and Development Board Department of Commerce, Community, and Economic Development Department of Fish and Game - Habitat Department of Fish and Game - Wildlife Conservation Department of Environmental Conservation Department of Transportation and Public Facilities US Environmental Protection Agency US Army Corps of Engineers US Fish and Wildlife Service US Coastguard National Oceanic and Atmospheric Administration No comments were received. Lease Discussion: The Trinity Point (ADL ), Pigot Bay (ADL ), and Perry Island (ADL ) are a chain of communications sites which relay terrestrial communications from mariners in Prince William Sound to a communications site in Whittier. The sites were originally owned and operated by Yukon Telephone Company (YTC). YTC stated their interest in establishing these communications sites was in response to public requests for improved communications in the area. In July 1999, YTC submitted 10-year lease applications to DNR for the three sites. A Land Use Permit (LAS 19491) for the construction of the Trinity Point microwave repeater site was issued in 1995, and the site was constructed in In 2005, DNR issued a 10-year lease for Preliminary Decision Page 4 of 18

5 the site. Infrastructure at Trinity Point consists of an 8 x 10 hut containing repeater equipment and a 10 tall microwave tower The site has been continuously powered through a combination of solar power and wind generators. Construction of the Pigot Bay site occurred after issuance of a 10-year lease in The infrastructure at the site is similar to the Trinity Point site, and consists of a 50 tall microwave tower, an 8 x 10 hut containing repeater equipment, and two empty storage containers that are being left on site for future use. The site is powered by a combination of wind and solar power. After submitting a 10-year lease application for the Perry Island site in 1999, YTC informed DNR in 2002 that they no longer wished to persue construction of the site. In 2005, YTC re-submitted a lease application to DNR and a 10-year lease was issued in In 2017 however, YTC relinquished the site back to the State, removed all improvements, and the site was remediated. In 2015, YTC was acquired by AWN, a subsidiary of GCI, and AWN subsequently acquired the infrastructure at the Trinity Point and Pigot Bay sites. The existing leases for the Trinity Point and Pigot Bay sites expired in 2015 during the acquisition of YTC by AWN. DNR requested that AWN submit lease applications to reflect the change in ownership and authorize both sites. In 2017, AWN submitted applications for the Trinity Point and Pigot Bay sites for the purpose of continued operation and maintenance. No further development is planned at either site. DMLW is proposing to issue 10-year land leases under AS (e) for the Trinity Point and Pigot Bay communications sites. The proposed leases will be subject to the terms of SCRO s standard lease document (available for review upon request) and any Stipulations based, in part, upon the following considerations. Development Plan: The Development Plans (DP) attached to this decision (Attachment A) and dated November 11 th, 2016, is under consideration by SCRO. Should the proposed leases be granted, it is anticipated that the DP will need to be updated throughout the life of the lease as activities and/or infrastructure are added or subtracted. All updates must be approved, in writing, by SCRO before any construction, deconstruction, replacement of infrastructure, or change in activity will be permitted. SCRO reserves the right to require additional agency review and/or public notice for changes that are deemed by SCRO to be beyond the scope of this decision. Hazardous Materials and Potential Contaminants: The use and storage of all hazardous substances must be done in accordance with existing federal, state, and local laws. Debris (such as soil) contaminated with used motor oil, solvents, or other chemicals may be classified as a hazardous substance, and must be removed from the site and disposed of in accordance with state and federal law. Preliminary Decision Page 5 of 18

6 AWN will not store nor dispose of any waste, hazardous materials, or potential contaminates of any type at the project site. Lease Performance Guaranty (bonding): In accordance with AS , AS , and 11 AAC (a) Performance Guaranty, AWN will be required to submit a performance guaranty for each lease site. $5,000 Performance Bond for each site: A $5,000 performance bond for each site was submitted on August 25, These bonds will remain in place for the life of the proposed leases. The bond amounts are based upon previous bonds for the lease sites, the level of development, amounts of hazardous material/substances on site, and the perceived liability to the State. These bonds will be used to ensure the applicant s compliance with the terms and conditions of the leases issued for their project. These bond amounts will be subject to periodic adjustments and may be adjusted upon approval of any amendments, assignments, reappraisals, changes in the DP, changes in the activities conducted, or changes in the performance of operations conducted on the authorized premises, and as a result of any violations to one or more of the authorizations associated with these projects. Reclamation Bond: SCRO is reserving the right to require a reclamation bond due to noncompliance issues during the term of the leases or near the end of the life of the projects. Insurance: In accordance with 11 AAC Insurance, AWN will be required to submit proof of liability and worker's compensation insurance to SCRO, with the State of Alaska listed as a NAMED insured party. AWN will be responsible for maintaining such insurance throughout the term of the EA and the lease. Survey: In accordance with AS , these short-term leases do not require a survey. However, the State of Alaska reserves the right to require one in the future, should the need arise due to changes in statutes or increased use of the area. Compensation/Appraisal: As this application is for two, short-term leases, 1-acre each, for communications sites that are located off the road system and have no public utilities, the proposed leases qualify under DMLW s Fee Schedule (report number ), which sets the annual fees at $1, The annual fee has been paid for each ADL continuously and no back fees are currently owed. As the Fee Schedule satisfies the requirements of AS , no appraisal will be required from the Preliminary Decision Page 6 of 18

7 applicant. Furthermore, in accordance with AS , the proposed leases will be subject to reappraisal at five-year intervals after the issuance of the proposed authorization. Subleasing: Subleasing is permissible through AS , if the proposed lease is approved. All potential subleases must first be approved in writing by SCRO. Depending on the activity of any potential subleases, SCRO is reserving the right to reevaluate the need for further agency review and/or public notice before making a determination on the appropriateness of the proposed sublease. Sublease compensation to the State will be determined by SCRO according to AS (m), under the authority of AS (a) Leasing Procedures. In any case, the sublease fee for commercial activities will not be less than 25% of the annual fee paid to AWN by the sub lessee. Assignment of Lease: The proposed leases, if issued, may be transferred or assigned to another individual or corporation only with written approval from the State of Alaska. A lease will not be assigned to an entity if that entity does not meet the statutory requirements of the lease, or if the lessee is considered not to be in good standing with this or any other agency authorization. Reclamation: In accordance with AS (b), all lessees must restore their leased sites to a good and marketable condition within 120 days after the termination of their leases. What level of reclamation constitutes as being good and marketable is at the discretion of SCRO. Preliminary Decision Page 7 of 18

8 Public Notice of the Preliminary Decision: Pursuant to AS , this PD will be advertised for a 30-day public comment period, starting on September 26, Courtesy notices will also be mailed or ed to neighboring property owners, permit/lease holders, and other interested parties on October 26, In addition, the post offices located near the sites (Whittier, Valdez, Cordova) will be requested to post the notice pursuant to AS (b)(3)(C). The notice will also be posted on the State of Alaska Online Public Notice website pursuant to AS (b)(3)(B) located at: Comment(s): This decision is subject to both public and agency comments, and all comments received by the comment deadline will be considered in the FFD. Only those who comment and the applicant have the right to appeal this decision. Written comments about this project must be received in this office no later than 5:00 PM on October 26, 2017 to be considered. To submit comments, please choose one of the following methods: Postal: Department of Natural Resources Division of Mining, Land and Water Southcentral Region Office ATTN: April Parrish 550 West 7 th Avenue, Suite 900C Anchorage, AK april.parrish@alaska.gov Fax: (907) Questions about the lease portion of this project can be directed to April Parrish at (907) If public comments result in significant changes to the Preliminary Decision, additional public notice will be given. To be eligible to appeal the Final Finding and Decision, a person must provide written comments during the Preliminary Decision comment period per AS (i)-(m). Preliminary Decision Page 8 of 18

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10 Attachment A Development Plans Attachment A Development Plans Page 10 of 18

11 Attachment A Development Plans ADL and ADL Attachment A Development Plans 11 of 18

12 Attachment A Development Plans Trinity Point Site Attachment A Development Plans Page 12 of 18

13 Attachment A Development Plans Trinity Point Site Attachment A Development Plans Page 13 of 18

14 Attachment A Development Plans Attachment A Development Plans Page 14 of 18

15 Attachment A Development Plans Attachment A Development Plans Page 15 of 18

16 Attachment A Development Plans Pigot Bay Site Attachment A Development Plans Page 16 of 18

17 Attachment A Development Plans Pigot Bay Site Attachment A Development Plans Page 17 of 18

18 Attachment B Location Maps Trinity Point Site Pigot Bay Site Attachment B - Location Maps Page 18 of 18