79–006

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 106–489

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 sur-
2

face 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.
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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.
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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 muchneeded 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.
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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 cor-
6

porations 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.
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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 geo-
8

thermal 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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