The Honorable Benigno R. Fitial
Speaker of the House of Representatives
Fourteenth Northern Islands Commonwealth Legislature
Capitol Hill
Saipan, MP 96950

Dear Mr. Speaker:

     Your Committee on Natural Resources to which House Bill No. 14-204 was referred, entitled:

begs leave to report as follows:

     After considerable discussion and deliberation on the bill, the Committee recommends that the House pass House Bill No. 14-204, in the form of Committee Draft 1.

     A. Purpose

     The purpose of House Bill No. 14-204 is to require a comprensive assesment of pozzolan mineral extraction in the Northern Islands be undertaken and to suspend any pozzolan extraction activities until such time the study is completed and rules and regulations based on the study have been promulgated.

     B. Committee Findings

     The Committee finds that in 1981, Pagan experienced a major volcanic eruption in which the flow of lava destroyed the airfield and the only village on the island. The eruption deposited over 200 million tons of natural pozzolan.

     Pozzolan is a finely-divided material that reacts with calcium hydroxide and alkalies to form compounds possessing cementitious properties. Natural pozzolan is used as a concrete strengthening additive to improve characteristics, such as durability, compressive strength, chemical resistance, hydration heat, and permeability. It is also found to be an excellent soil modification that allows soils to absorb and hold water, increases quality and quantity of yields, and accelerates blooming and optimizes maturation.

     On August 1, 1993 the Marianas Public Lands Authority (MPLA) granted a permit to a Saipan-based company to mine basalt and pozzolan from Pagan. In 1995, MPLA granted the company's request for a new 20 year permit even though the company has outstanding debts in the amount of $192,000.00.(1) According to the MPLA, this company has not been actively mining. Other companies, such as Azmar Foundation and Consolidated American Energy Resources Inc., have also expressed their interest in acquiring a permit for commercial mining on Pagan.

     The Committee further finds that the lack of any study or assessment by MPLA or other government agencies as to the characteristics and actual value of Pagan's natural pozzolan and of the potential rists to the environment posed by the mining operation places the Commonwealth at a disadvantage. To ensure that the Commonwealth receives a fair sharre of the pozzolan extraction and marketing and that the potential risks to the environment posed by the mining are reduced, if not eliminated, the Committee finds it necessary that a comprehensive assessment of pozzolan mineral extraction on Pagan be undertaken. Because there is no such study, pozzolan extraction activities should be suspended until its completion and rules have been promulgated.

     C. Legislative History

     House Bill 14-204 was introduced by Speaker Benigno R. Fitial on June 08, 2004 and was referred to the Committee on Natural Resources.

     D. Committee Amendment

     The Committee amended the bill to specify that the Commissioner of Marianas Public Lands Authority would serve as the representative of MPLA and as the Chairman of the task force.

     E. Cost-Benefit

     There are anticipated costs to be insurred as the tast force undertakes the duties assigned by this Act. Costs to be incurred will be funded through the reprogramming of unoblicated funds balances from appropriations made to the agencies that make up this task force.

     Your Committee is in accord with the provisions of House Bill 14-204 and recommends that it be passed by the House in the form of Committee Draft 1.

Respectfully Submitted,

Rep. Claudio K. Norita
Acting Chairperson

Rep. Timothy L.P. Villagomez
Member

Rep. Crispin M. Ogo
Member

Rep. Arnold I. Palacios
Member

Rep. Jesus SN. Lizama
Member

Rep. David M. Apatang
Member

Reviewed By:

(1) Audit of Division of Public Land's Collection of Rentals on Land Leases with Quarries for Six Lease Years from 1990 to 1995 (Report# AR-00-04, Issued 11/22/00).