Palin targets development of Mental Health Trust lands - Alaska Journal of Commerce

Governor-elect tells miners' convention that the trust must expedite process of responding to developers

By Tim Bradner
Alaska Journal of Commerce

Governor-elect Sarah Palin said the Mental Health Trust must be more proactive in developing its lands.

In her first official appearance as Alaska's governor-elect, Sarah Palin told Alaska miners she plans to shake up the state's Mental Health Land Trust administration to make it more friendly to developers.

Palin addressed the Alaska Miners Association's annual convention in Anchorage Nov. 9.

"The Mental Health Land Trust needs to be more proactive in development of lands they control. They need to expedite their process of responding to individuals and companies wishing to do business with them," Palin told the miners.

"If they do not possess the knowledge they need to expedite this process, we must hire people who have the experience and ability to make resource development decisions. The trust needs to not be a stumbling block, but a partner in safe, sound development opportunities," she said.

Palin was apparently referring to problems mining companies and other potential developers have had with the state Mental Health Land Trust, although she was not specific about what the problems were. Attempts to contact Palin for elaboration on her statements were unsuccessful.

Palin may find she has limited ability to influence management of the land trust, however. Under current law, land management policies are actually set by the board of trustees of the Mental Health Authority, not the state administration.

The trust manages about 1 million acres of land around the state on behalf of the Alaska Mental Health Authority, which funds programs that serve mentally ill and disabled Alaskans. Trust lands are leased for oil and gas and mineral development as well as real estate and other commercial activities. Because the land trust is intended to generate revenues to support mental health programs in the state, the lands are intended to be managed more for development than for other uses, such as recreation or wildlife habitat. In contrast, the Department of Natural Resources is charged with managing other state lands for multiple uses. Lands were set aside in a trust to support the mentally ill when Alaska was a territory, but when the Alaska became a state, the trust lands were combined with other state lands and administered by the Department of Natural Resources. A settlement of litigation in 1994 led to the recreation of the land trust as a separate entity. The lands designated for the trust are managed by a separate group within the resources department that are funded from trust revenues and report to the trustees of the Mental Health Authority, rather than the commissioner of Natural Resources. A memorandum of understanding between the trust authority and DNR spells out the relationship between the entities. The executive director of the lands trust, currently Marty Rutherford, is hired by the trustees, not the DNR commissioner.

"Trust lands are managed pursuant to the court settlement and statutes passed by the Legislature. The lands cannot be managed as general state lands," Rutherford said. The board must also abide by general trust law as it has evolved over the years, she said.

Palin supports state control of wastewater permits

In a second policy statement, Palin said she supports Alaska assuming administrative control of wastewater discharge permits from the federal government, a process that was started in Gov. Frank Murkowski's administration.

The U.S. Environmental Protection Agency now administers National Pollution Discharge Elimination System discharge permits under the federal Clean Water Act, although the state plays a role by certifying that the permits meet Alaska standards for clean water.

Many states also administer the permits under guidelines of the Clean Water Act, and Alaska is on a track to do the same. Palin said she supports this.

Palin also said she will push to take formal title to state-selected land on a more aggressive schedule and will make infrastructure projects, on which mining companies depend, a priority.

Palin was received warmly by the miners. "I've been a commercial fisherman and a politician. I haven't been a miner, but I'm willing to listen and learn," she told listeners in a jammed-packed Howard Rock Ballroom at the Anchorage Sheraton Hotel.

"We admire Sarah Palin's streak of independence and her willingness to take long-shot risks. Those are qualities miners share," said John Reeves, a Fairbanks businessman who introduced her to the convention.

During her campaign, Palin sent a strong signal that she was receptive to mining when she said she was at least open to letting Northern Dynasty Mines Inc. submit applications for its controversial Pebble copper-gold mine. If developed, the mine would be located at the headwaters on rivers that flow into Bristol Bay. Palin said she would allow the public review process to work, although with her Bristol Bay commercial fishing background, she is still concerned about the mine. In contrast, her Democratic opponent, Tony Knowles, said he flatly opposed the Pebble project even before the company has finished its proposed mine plan. Knowles also took frequent campaign flights on a jet owned by Anchorage businessman Bob Gillam, an opponent of the mine. Tim Bradner can be reached at tim.bradner@alaskajournal.com.