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[House Report 106-489]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-489

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               KAKE TRIBAL CORPORATION LAND TRANSFER ACT

                                _______
                                

January 27, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 430]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(S. 430) to amend the Alaska Native Claims Settlement Act, to 
provide for a land exchange between the Secretary of 
Agriculture and the Kake Tribal Corporation, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Kake Tribal Corporation Land Transfer 
Act''.

SEC. 2. DECLARATION OF PURPOSE.

  The purpose of this Act is to authorize the reallocation of lands and 
selection rights between the State of Alaska, Kake Tribal Corporation, 
and the City of Kake, Alaska, in order to provide for the protection 
and management of the municipal watershed.

SEC. 3. AMENDMENT OF ALASKA NATIVE CLAIMS SETTLEMENT ACT.

  The Alaska Native Claims Settlement Act (43 U.S.C. 1601 note) is 
amended by adding at the end the following new section:
                ``kake tribal corporation land transfer
  ``Sec. 42. (a) In General.--If--
          ``(1) the State of Alaska relinquishes its selections rights 
        under the Alaska Statehood Act (P.L. 85-508) to lands described 
        in subsection (c)(2) of this section; and
          ``(2) Kake Tribal Corporation and Sealaska Corporation convey 
        all right, title, and interest to lands described in subsection 
        (c)(1) to the City of Kake, Alaska,
then the Secretary of Agriculture (hereinafter referred to as 
`Secretary') shall, not later than 180 days thereafter, convey to Kake 
Tribal Corporation title to the surface estate in the land identified 
in subsection (c)(2) of this section, and convey to Sealaska 
Corporation title to the subsurface estate in such land.
  ``(b) Effect on Selection Totals.--(1) Of the lands to which the 
State of Alaska relinquishes selection rights and which are conveyed to 
the City of Kake pursuant to subsection (a), 694.5 acres shall be 
charged against lands to be selected by the State of Alaska under 
section 6(a) of the Alaska Statehood Act and 694.5 acres against lands 
to be selected by the State of Alaska under section 6(b) of the Alaska 
Statehood Act.
  ``(2) The land conveyed to Kake Tribal Corporation and to Sealaska 
Corporation under this section is, for all purposes, considered to be 
land conveyed under this Act. However, the conveyance of such land to 
Kake Tribal Corporation shall not count against or otherwise affect the 
Corporation's remaining entitlement under section 16(b).
  ``(c) Description of Lands Subject to Exchange.--(1) The lands to be 
transferred to the City of Kake and under subsection (a) are the 
surface and subsurface estate to approximately 1430 acres of land owned 
by Kake Tribal Corporation and Sealaska Corporation, and depicted as 
`KTC Land to City of Kake' on the map entitled `Kake Land Exchange-
1999', dated September, 1999.
  ``(2) The lands subject to relinquishment by the State of Alaska and 
to conveyance to Kake Tribal Corporation and Sealaska Corporation under 
subsection (a) are the surface and subsurface estate to approximately 
1389 acres of Federal lands depicted as `Jenny Creek-Land Selected by 
the State of Alaska to KTC' on the map entitled `Kake Land Exchange-
1999', dated September, 1999.
  ``(d) Withdrawal.--Subject to valid existing rights, the lands 
described in subsection (c)(2) are withdrawn from all forms of 
location, entry, and selection under the mining and public land laws of 
the United States and from leasing under the mineral and geothermal 
leasing laws. This withdrawal expires 18 months after the effective 
date of this section.
  ``(e) Maps.--The maps referred to in this Act shall be maintained on 
file in the Office of the Chief, United States Forest Service, the 
Office of the Secretary of the Interior, and the Office of the 
Petersburg Ranger District, Alaska.
  ``(f) Watershed Management.--The United States Forest Service may 
cooperate with the Kake Tribal Corporation and the City of Kake in 
developing a watershed management plan that provides for the protection 
of the watershed in the public interest. Grants may be made, and 
contracts and cooperative agreements may be entered into, to the extent 
necessary to assist the City of Kake and the Kake Tribal Corporation in 
the preparation and implementation of a watershed management plan for 
the land within the City of Kake's municipal watershed.
  ``(g) Effective Date.--This section is effective upon the execution 
of one or more reciprocal agreements that provide for one or more 
reciprocal conservation easements that, subject to valid existing 
rights of third parties--
          ``(1) encumber all lands depicted as `KTC Land to City of 
        Kake' and `KTC Land-Conservation Easement to City of Kake' on a 
        map entitled `Kake Land Exchange-1999' dated September 1999;
          ``(2) provide for the relinquishment by Kake Tribal 
        Corporation to the Corporation's development rights on lands 
        described in paragraph (1); and
          ``(3) provide for perpetual protection and management of 
        lands depicted as `KTC Land-Conservation Easement to City of 
        Kake' on the map described in paragraph (1) as--
                  ``(A) a watershed;
                  ``(B) a municipal drinking water source in accordance 
                with the laws of the State of Alaska;
                  ``(C) a source of fresh water for the Gunnuk Creek 
                Hatchery; and
                  ``(D) habitat for black bear, deer, birds, and other 
                wildlife.
  ``(h) Authorization of Appropriations.--There are authorized such 
sums as may be necessary to carry out this Act. No funds authorized 
under this section may be paid to Kake Tribal Corporation unless Kake 
Tribal Corporation is a party to any reciprocal agreements entered into 
under subsection (g).''.

                          Purpose of the Bill

    The purpose of S. 430 is to amend the Alaska Native Claims 
Settlement Act, to provide for a land exchange between the 
Secretary of Agriculture and the Kake Tribal Corporation, and 
for other purposes.

                  Background and Need for Legislation

    The Kake Tribal Corporation (KTC) is a Native village 
corporation organized under the Alaska Native Claims Settlement 
Act (ANCSA). Pursuant to ANCSA, KTC was awarded lands in and 
around the core township of the City of Kake. Some of KTC's 
holdings are on the municipal watershed supplying the City of 
Kake with its drinking water. These lands have timber that is 
eligible for harvest by KTC.
    For several years, City residents have been concerned that 
KTC will log its watershed property. In recognition of this 
local concern, KTC's board of directors has refrained from 
authorizing timber harvest on the watershed. However, late in 
1999, KTC come under intense pressure to generate revenue. A 
previous effort by KTC to set up a special program to care for 
the needs of certain shareholders such as Native elders led to 
a lawsuit which forced KTC to file for bankruptcy. KTC's severe 
financial situation increases the likelihood that KTC will log 
the municipal watershed to pay creditors.
    KTC is faced with a dilemma: it may have to exercise the 
unpopular choice of logging the municipal watershed to pay 
creditors, or preserve the watershed, which might place KTC's 
other assets at higher risk.
    S. 430 as passed by the Senate sets up one locally popular 
approach to resolve this dilemma. The measure provides for an 
equal value land exchange in which KTC conveys the watershed 
lands to the Tongass National Forest, and receives lands away 
from the problem area. (See Senate Report 106-31 for more 
information on the terms and conditions of this exchange). 
Under this concept, KTC would be able to log its property 
without any effect on the city's watershed.
    After S. 430 was referred to the House Committee on 
Resources, certain federal officials, the State of Alaska, KTC, 
the City and other local interests agreed in concept to an 
alternative land exchange. An amendment in the nature of a 
substitute adopted by the Committee reflects the new proposal.
    Under this concept, KTC would agree to convey 1430 acres of 
its watershed property to the City of Kake, and retain 
ownership of the remaining 1127 acres of its watershed land. 
Both the land conveyed to the City and the land retained by KTC 
would then be encumbered by a conservation easement that 
prohibits logging and protects the watershed.
    In compensation for conveying the 1430 acres of watershed 
property to the City, KTC would receive certain land to which 
the State gives up its Statehood selection rights. This land, 
known as the Jenny Creek property, is located away from the 
watershed and may be logged without controversy.
    In compensation for agreeing to put the other portion of 
the watershed under a conservation easement, KTC would be 
compensated, subject to appropriation of funds, in cash for the 
value of its relinquished development and logging rights.
    Under this exchange there will no net loss to the Tongass 
National Forest land base, and the City watershed will be 
preserved.
    A matter involving the disposition of the subsurface estate 
of the lands subject to the exchange has come to the attention 
of the Committee. Sealaska Corporation, as the owner of the 
subsurface estate beneath KTC's watershed lands, must be 
treated fairly in this exchange. Sealaska Corporation, the 
Native Regional Corporation for Southeast Alaska, has expressed 
to the Committee its willingness to exchange its subsurface 
estate to facilitate the much-needed land exchange. With 
respect to that portion of the KTC land to be exchanged for the 
Jenny Creek property, the reported bill directs the exchange of 
Sealaska's subsurface estate beneath the surface estate owned 
by KTC for the subsurface estate beneath the Jenny Creek 
property. The Committee concludes that, with respect to the 
portion of the surface estate owned by KTC that will be subject 
to conservation easements, it would be inequitable to have 
Sealaska continue to own the subsurface estate in this area. It 
has been suggested that Sealaska exchange to the United States 
this remaining subsurface estate for equivalent subsurface 
estate in Southeast Alaska, perhaps pursuant to an already 
existing agreement between Sealaska and the U.S. Forest 
Service. This solution would provide equitable treatment to 
Sealaska Corporation.
    While S. 430 as approved by the Committee resolves the 
local controversy over the watershed lands, further refinement 
of the details of the conservation easements may be desirable. 
In this vein, the Committee urges Kake Tribal Corporation and 
the City, to the extent that it is feasible and timely, to 
produce a signed agreement providing for appropriate 
conservation easements that can be incorporated by reference 
into the bill.

                            Committee Action

    S. 430 was introduced on February 22, 1999, by Senator 
Frank H. Murkowski (R-AK). The bill passed the Senate on April 
19, 1999, with amendments. The bill was then referred to the 
Committee on Resources. Hearings on an earlier version of a 
bill (H.R. 2756) addressing the same problem were held in the 
105th Congress on February 25, 1998. On November 3, 1999, the 
Full Resources Committee met to consider the bill. Chairman Don 
Young (R-AK) offered an amendment in the nature of a 
substitute, as described above. It was adopted by voice vote. 
The bill as amended was then ordered favorably reported to the 
House of Representatives by voice vote.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   Constitutional Authority Statement

    Article I, section 8, and Article IV, section 3, of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

           S. 430--Kake Tribal Corporation Land Transfer Act

    Summary: S. 430 would authorize the Secretary of 
Agriculture to make grants and enter into cooperative 
agreements with the city of Kake, Alaska, to prepare and 
implement a watershed management plan for certain lands located 
within its municipal watershed. S. 430 also would direct the 
Secretary to convey to the Kake and Sealaska tribal 
corporations the surface and subsurface estate of certain lands 
within the Tongass National Forest, subject to certain 
conditions.
    Based on information from the Forest Service and the Kake 
Tribal Corporation (KTC), CBO estimates that implementing S. 
430 would cost $15 million over the 2001-2004 period, assuming 
appropriation of the necessary amounts. The act would not 
affect direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply. S. 430 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA). Any costs incurred by the 
state of Alaska under this act would be voluntary.
    Estimated cost to the Federal Government: Several steps 
would be necessary before the land exchange between the 
Secretary of Agriculture and the tribal corporations would 
occur. First, the tribal corporations must grant a conservation 
easement for about 2,500 acres of land owned by the 
corporations that are located within the city's municipal 
watershed. Next, the tribal corporations would need to transfer 
ownership of some of their land within the municipal watershed 
to the city. Finally, the state of Alaska would need to 
relinquish its selection rights to about 1,400 acres of land in 
the Tongass National Forest that would be conveyed to the 
tribal corporations under the act. Based on information from 
each of these interested parties, CBO expects that agreements 
to fulfill each of these conditions will be reached in 2000.
    Because the state of Alaska currently has selection rights 
to certain lands in the Tongass National Forest, the Forest 
Service does not plan to harvest timber on the 1,400 acres that 
would be transferred to the tribal corporations under S. 430. 
Therefore, this transfer would not affect federal receipts. 
Based on information from the Forest Service and the KTC, CBO 
estimates that the tribal corporation will seek monetary 
compensation from the federal government in exchange for the 
conservation easement granted on its land within the municipal 
watershed. Based on the potential value to the tribal 
corporation of developing these lands, we estimate the 
conservation easement could be worth as much as $15 million. 
Any such compensation would be subject to the availability of 
appropriated funds.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
S. 430 contains no intergovernmental mandates as defined in 
UMRA. The state of Alaska might incur some costs should it 
choose to relinquish its selection rights to the land proposed 
for conveyance to the tribal corporations. Such costs would be 
incurred voluntarily, however. The tribal corporations would 
benefit from enactment of this legislation because the land 
they would receive could be developed to generate income.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimate: On March 11, 1999, CBO transmitted a 
cost estimate for S. 430 as ordered reported by the Senate 
Committee on Energy and Natural Resources on March 4, 1999. 
Under that version of S. 430, the Secretary of Agriculture and 
the tribal corporations would enter into an equal value land 
exchange. The tribal corporations would receive the surface and 
subsurface estate of unspecified lands within the Tongass 
National Forest in exchange for the surface and subsurface 
estate of the municipal watershed lands, which the Forest 
Service would manage.
    The Senate version would not authorize the Secretary of 
Agriculture to enter into agreements and make grants to assist 
in implementing a watershed management plan, which CBO 
estimates could cost up to $15 million over the 2001-2004 
period, assuming the appropriation of the necessary amounts.
    Estimate prepared by: Federal costs: Megan Carroll. Impact 
on State, local, and tribal governments: Marjorie Miller.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

               Preemption of State, Local, or Tribal Law

    This bill is not intended to preempt any State, local, or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

         SECTION 42 OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT

                 kake tribal corporation land transfer

  Sec. 42. (a) In General.--If--
          (1) the State of Alaska relinquishes its selections 
        rights under the Alaska Statehood Act (P.L. 85-508) to 
        lands described in subsection (c)(2) of this section; 
        and
          (2) Kake Tribal Corporation and Sealaska Corporation 
        convey all right, title, and interest to lands 
        described in subsection (c)(1) to the City of Kake, 
        Alaska,
then the Secretary of Agriculture (hereinafter referred to as 
``Secretary'') shall, not later than 180 days thereafter, 
convey to Kake Tribal Corporation title to the surface estate 
in the land identified in subsection (c)(2) of this section, 
and convey to Sealaska Corporation title to the subsurface 
estate in such land.
  (b) Effect on Selection Totals.--(1) Of the lands to which 
the State of Alaska relinquishes selection rights and which are 
conveyed to the City of Kake pursuant to subsection (a), 694.5 
acres shall be charged against lands to be selected by the 
State of Alaska under section 6(a) of the Alaska Statehood Act 
and 694.5 acres against lands to be selected by the State of 
Alaska under section 6(b) of the Alaska Statehood Act.
  (2) The land conveyed to Kake Tribal Corporation and to 
Sealaska Corporation under this section is, for all purposes, 
considered to be land conveyed under this Act. However, the 
conveyance of such land to Kake Tribal Corporation shall not 
count against or otherwise affect the Corporation's remaining 
entitlement under section 16(b).
  (c) Description of Lands Subject to Exchange.--(1) The lands 
to be transferred to the City of Kake and under subsection (a) 
are the surface and subsurface estate to approximately 1430 
acres of land owned by Kake Tribal Corporation and Sealaska 
Corporation, and depicted as ``KTC Land to City of Kake'' on 
the map entitled ``Kake Land Exchange-1999'', dated September, 
1999.
  (2) The lands subject to relinquishment by the State of 
Alaska and to conveyance to Kake Tribal Corporation and 
Sealaska Corporation under subsection (a) are the surface and 
subsurface estate to approximately 1389 acres of Federal lands 
depicted as ``Jenny Creek-Land Selected by the State of Alaska 
to KTC'' on the map entitled ``Kake Land Exchange-1999'', dated 
September, 1999.
  (d) Withdrawal.--Subject to valid existing rights, the lands 
described in subsection (c)(2) are withdrawn from all forms of 
location, entry, and selection under the mining and public land 
laws of the United States and from leasing under the mineral 
and geothermal leasing laws. This withdrawal expires 18 months 
after the effective date of this section.
  (e) Maps.--The maps referred to in this Act shall be 
maintained on file in the Office of the Chief, United States 
Forest Service, the Office of the Secretary of the Interior, 
and the Office of the Petersburg Ranger District, Alaska.
  (f) Watershed Management.--The United States Forest Service 
may cooperate with the Kake Tribal Corporation and the City of 
Kake in developing a watershed management plan that provides 
for the protection of the watershed in the public interest. 
Grants may be made, and contracts and cooperative agreements 
may be entered into, to the extent necessary to assist the City 
of Kake and the Kake Tribal Corporation in the preparation and 
implementation of a watershed management plan for the land 
within the City of Kake's municipal watershed.
  (g) Effective Date.--This section is effective upon the 
execution of one or more reciprocal agreements that provide for 
one or more reciprocal conservation easements that, subject to 
valid existing rights of third parties--
          (1) encumber all lands depicted as ``KTC Land to City 
        of Kake'' and ``KTC Land-Conservation Easement to City 
        of Kake'' on a map entitled ``Kake Land Exchange-1999'' 
        dated September 1999;
          (2) provide for the relinquishment by Kake Tribal 
        Corporation to the Corporation's development rights on 
        lands described in paragraph (1); and
          (3) provide for perpetual protection and management 
        of lands depicted as ``KTC Land-Conservation Easement 
        to City of Kake'' on the map described in paragraph (1) 
        as--
                  (A) a watershed;
                  (B) a municipal drinking water source in 
                accordance with the laws of the State of 
                Alaska;
                  (C) a source of fresh water for the Gunnuk 
                Creek Hatchery; and
                  (D) habitat for black bear, deer, birds, and 
                other wildlife.
  (h) Authorization of Appropriations.--There are authorized 
such sums as may be necessary to carry out this Act. No funds 
authorized under this section may be paid to Kake Tribal 
Corporation unless Kake Tribal Corporation is a party to any 
reciprocal agreements entered into under subsection (g).

                                

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