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The Pebble Mine's would-be developers are concerned about the state Habitat Division's current home in the Department of Natural Resources, according to a letter they wrote to Gov. Sarah Palin.

"There is a perception that Gov. (Frank) Murkowski weakened state regulatory oversight when he moved the Habitat Division out of the Department of Fish and Game and into the Department of Natural Resources," wrote Bruce Jenkins, interim general manager of Pebble Mines Corp., which wants to open a multi-metal mine in the Bristol Bay region of Southwest Alaska.

Murkowski's administration moved the Habitat Division to promote development of natural resources.

In her election campaign, Palin criticized the move, but she has not restored the division to Fish and Game. House Bill 41, proposed last year and now being considered by the Alaska Legislature, would return the Habitat Division to its former home.

The Pebble Mine letter was released in a package of public comments at a Friday hearing of the House Fisheries Committee.

Jenkins wrote that Pebble wasn't in a position to support or oppose changes to the departmental structure, and would work with whatever existed. But the public perception of a compromised Habitat Division troubled the company, he wrote.

The legislation's co-sponsor Rep. Les Gara, D-Anchorage, testified at the hearing that he had not seen the Pebble Mine letter until that morning. He had been expecting opposition from the mine project, he said.

Gara said he sponsored the bill to move the division partly because he worries that Habitat's current placement would allow a development-minded commissioner to stifle science from fisheries biologists. The commissioner's position is filled by political appointment.

He added that he did not suspect this of the current natural resources commissioner, Tom Irwin.

Habitat biologist Jackie Timothy bristled at the perception that the division was somehow compromised in its new place.

"The quality of work is as fine as it's ever been," Timothy said. "Actually, we have a larger field presence and feel like we can make a lot more difference out there."

An executive order from Palin, a bill passed by the Legislature or a ballot measure can reorganize the state's department structure. The executive order is a simpler process than changing the law. The Legislature has held the bill to give Palin time to consider an order, said committee Chairman Rep. Paul Seaton, R-Homer.

If Palin issues an executive order, the Legislature must have 60 days to consider overturning it. Therefore she must produce the order by Feb. 13 so lawmakers have adequate time before the session ends.

So far, the Legislature has seen 26 written comments in favor of moving the Habitat Division and four opposing it.

One opposing comment came from Wally Hickel, former governor: "The wildlife biologists from the division staff look through the eyes of what's best for wildlife, as they should. But without guidance, they sometimes fail to make decisions that address the needs of people, too."

The move would be effective Jan. 1, 2009, in the current version of the bill.

The bill is co-sponsored by Reps. Bob Buch, D-Anchorage; Harry Crawford, D-Anchorage; Beth Kerttula, D-Juneau; and Gabrielle LeDoux, R-Kodiak.

Besides House Bill 41, a ballot measure, called the Fisheries Habitat Protection Initiative, has been proposed to return Habitat to Fish and Game.