Native corps., state agree

PALMER — One large barrier between the state corporation developing the Susitna-Watana Hydroelectric dam and the federal permits it needs was cleared away late last week.

“This is by far the most critical relationship and partnership going forward,” Alaska Energy Authority spokeswoman Emily Ford said Monday. “So, we’re very excited to have this multi-year permit and to be able to work together.”

That partnership is between AEA and a group of seven Alaska Native corporations with land in the area AEA needs to study: Chickaloon Moose Creek Native Association, Knikatnu Inc., Ninilchik Natives Association Inc., Salamatof Native Association Inc., Seldovia Native Association Inc., Tyonek Native Corp. and Cook Inlet Region Inc.

According to an AEA press release disseminated Friday, the first six corporations have surface rights to land there, the seventh, CIRI, owns subsurface rights.

The negotiations had dragged on and had begun causing problems for AEA. When Gov. Sean Parnell put together his budget for 2015, he initially drastically reduced funding to the dam, saying that he didn’t think it was right to allocate funds to project studies before the access had been resolved.

Then, in late February, Parnell seemed to see promise in those negotiations. He asked the Legislature for an extra $32.7 million in a supplemental appropriation, contingent on reaching the access agreements. Friday’s announcement appears to satisfy that contingency.

Asked what the sticking point was in the negotiations, Ford pointed to their sheer complexity.

“There were eight boards of directors, eight different corporations,” she said. “When you’re dealing with multiple groups and making sure that the land and the landowners are protected, it takes a lot of work to make sure everyone is comfortable.”

As part of the agreement, AEA will pay those corporations for the right to work on their land. Ford said the exact amount isn’t clear because the permit is for multiple years and the fees are based on how much AEA uses the land. She said it is not a significant portion of the project’s cost.

The dam is planned for a section of the Susitna River above Devil’s Canyon at river mile 184, northeast of Talkeetna. It’s projected to cost $5.19 billion and be 735 feet tall. AEA says it will stand for more than 100 years and would provide half of the energy the state’s Railbelt area currently consumes.

Project opponents say the dam could harm salmon and that it is a costly boondoggle that will draw funding away from other essential projects. They also point to the dangers of building a large dam in an earthquake zone.

Contact Andrew Wellner at 352-2270

or andrew.wellner@frontiersman.com.