99–010

Calendar No. 599

107TH CONGRESS REPORT " SENATE ! 2d Session 107–280

CAPE FOX LAND ENTITLEMENT ADJUSTMENT ACT OF 2002

SEPTEMBER 13, 2002.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 2222] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 2222) to resolve certain conveyances and provide for alternative land selections under the Alaska Native Claims 

Settlement Act related to Cape Fox Corporation and Sealaska Corporation, and for other purposes, having considered the same, reports favorably thereon with an amendment and recommends 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 ‘‘Cape Fox Land Entitlement Adjustment Act of 

2002’’. 

SEC. 2. FINDINGS. 

Congress finds that: 

(1) Cape Fox Corporation (Cape Fox) is an Alaska Native Village Corporation 

organized pursuant to the Alaska Native Claims Settlement Act (ANCSA) (43 

U.S.C. 1601 et seq.) for the Native Village of Saxman. 

(2) As with other ANCSA village corporations in Southeast Alaska, Cape Fox 

was limited to selecting 23,040 acres under section 16 of ANCSA. 

(3) Except for Cape Fox, all other Southeast Alaska ANCSA village corporations were restricted from selecting within two miles of a home rule city. 

(4) To protect the watersheds in the vicinity of Ketchikan, Cape Fox was restricted from selecting lands within six miles from the boundary of the home 

rule City of Ketchikan under section 22(l) of ANCSA (43 U.S.C. 1621(l)). 

(5) The six mile restriction damaged Cape Fox by precluding the corporation 

from selecting valuable timber lands, industrial sites, and other commercial 

property, not only in its core township but in surrounding lands far removed 

from Ketchikan and its watershed. 

(6) As a result of the six mile restriction, only the remote mountainous northeast corner of Cape Fox’s core township, which is nonproductive and of no 

known economic value, was available for selection by the corporation. Selection 

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of this parcel was, however, mandated by section 16(b) of ANCSA (43 U.S.C. 

1615(b)). 

(7) Cape Fox’s land selections were further limited by the fact that the Annette Island Indian Reservation is within its selection area, and those lands 

were unavailable for ANCSA selection. Cape Fox is the only ANCSA village corporation affected by this restriction. 

(8) Adjustment of Cape Fox’s selections and conveyances of land under 

ANCSA requires adjustment of Sealaska Corporation’s (Sealaska) selections and 

conveyances to avoid creation of additional split estate between National Forest 

System surface lands and Sealaska subsurface lands. 

(9) There is an additional need to resolve existing areas of Sealaska/Tongass 

split estate, in which Sealaska holds title or conveyance rights to several thousand acres of subsurface lands that encumber management of Tongass National 

Forest surface lands. 

(10) The Tongass National Forest lands identified in this Act for selection by 

and conveyance to Cape Fox and Sealaska, subject to valid existing rights, provide a means to resolve some of the Cape Fox and Sealaska ANCSA land entitlement issues without significantly affecting Tongass National Forest resources, uses or values. 

(11) Adjustment of Cape Fox’s selections and conveyances of land under 

ANCSA through the provisions of this Act, and the related adjustment of 

Sealaska’s selections and conveyances hereunder, are in accordance with the 

purposes of ANCSA and otherwise in the public interest. 

SEC. 3. WAIVER OF CORE TOWNSHIP REQUIREMENT FOR CERTAIN LANDS. 

Notwithstanding the provisions of section 16(b) of ANCSA (43 U.S.C. 1615(b)), 

Cape Fox shall not be required to select or receive conveyance of approximately 160 

acres of federal unconveyed lands within Section 1, T. 75 S., R. 91 E., C.R.M.

SEC. 4. SELECTION OUTSIDE EXTERIOR SELECTION BOUNDARY. 

(a) SELECTION AND CONVEYANCE OF SURFACE ESTATE.—In addition to lands made 

available for selection under ANCSA, within 24 months after the date of enactment 

of this Act, Cape Fox may select, and, upon receiving written notice of such selection, the Secretary of the Interior shall convey approximately 99 acres of the surface 

estate of Tongass National Forest lands outside Cape Fox’s current exterior selection boundary, specifically that parcel described as follows: 

T. 73 S., R. 90 E., C.R.M. 

Section 33: SW portion of SE 1⁄4: 38 acres. 

Section 33: NW portion of SE 1⁄4: 13 acres. 

Section 33: SE 1⁄4 of SE 1⁄4: 40 acres. 

Section 33 SE 1⁄4 of SW 1⁄4: 8 acres. 

(b) CONVEYANCE OF SUBSURFACE ESTATE.—Upon conveyance to Cape Fox of the 

surface estate to the lands identified in subsection (a), the Secretary of the Interior 

shall convey to Sealaska the subsurface estate to the lands. 

(c) TIMING.—The Secretary of the Interior shall complete the interim conveyances 

to Cape Fox and Sealaska under this section within 180 days after the Secretary 

of the Interior receives notice of the Cape Fox selection under subsection (a). 

SEC. 5. EXCHANGE OF LANDS BETWEEN CAPE FOX AND THE TONGASS NATIONAL FOREST. 

(a) GENERAL.—The Secretary of Agriculture shall offer, and if accepted by Cape 

Fox, shall exchange the federal lands described in subsection (b) for lands and interests therein identified by Cape Fox under subsection (c) and, to the extent necessary, lands and interests therein identified under subsection (d). 

(b) LANDS TO BE EXCHANGED TO CAPE FOX.—The lands to be offered for exchange 

by the Secretary of Agriculture are Tongass National Forest lands comprising approximately 2,663.9 acres in T. 36 S., R. 62 E., C.R.M. and T. 35 S., R. 62 E., 

C.R.M., as designated upon a map entitled ‘‘Proposed Kensington Project Land Exchange,’’ dated March 18, 2002, and available for inspection in the Forest Service 

Region 10 regional office in Juneau, Alaska. 

(c) LANDS TO BE EXCHANGED TO THE UNITED STATES.—Cape Fox shall be entitled, 

within 60 days after the date of enactment of this Act, to identify in writing to the 

Secretaries of Agriculture and the Interior the lands and interests in land that Cape 

Fox proposes to exchange for the federal lands described in subsection (b). The lands 

and interests in lands shall be identified from lands previously conveyed to Cape 

Fox comprising approximately 2,900 acres and designated as parcels A–1 to A–3, B–

1 to B–3, and C upon a map entitled ‘‘Cape Fox Corporation ANCSA Land Exchange 

Proposal,’’ dated March 15, 2002, and available for inspection in the Forest Service 

Region 10 regional office in Juneau, Alaska. Lands identified for exchange within 

each parcel shall be contiguous to adjacent National Forest System lands and in 

reasonably compact tracts. The lands identified for exchange shall include a public 

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trail easement designated as D on said map, unless the Secretary of Agriculture 

agrees otherwise. The value of the easement shall be included in determining the 

total value of lands exchanged to the United States. 

(d) VALUATION OF EXCHANGE LANDS.—The Secretary of Agriculture shall determine whether the lands identified by Cape Fox under subsection (c) are equal in 

value to the lands described in subsection (b). If the lands identified under subsection (c) are determined to have insufficient value to equal the value of the lands 

described in subsection (b), Cape Fox and the Secretary shall mutually identify additional Cape Fox lands for exchange sufficient to equalize the value of lands conveyed 

to Cape Fox. Such lands shall be contiguous to adjacent National Forest System 

lands and in reasonably compact tracts. 

(e) CONDITIONS.—The offer and conveyance of federal lands to Cape Fox in the 

exchange shall, notwithstanding section 14(f) of ANCSA, be of the surface and subsurface estate, but subject to valid existing rights and all other provisions of section 

14(g) of ANCSA. 

(f) TIMING.—The Secretary of Agriculture shall attempt, within 90 days after the 

date of enactment of this Act, to enter into an agreement with Cape Fox to consummate the exchange consistent with this Act. The lands identified in the exchange 

agreement shall be exchanged by conveyance at the earliest possible date after the 

exchange agreement is signed. Subject only to conveyance from Cape Fox to the 

United States of all its rights, title and interests in the Cape Fox lands included 

in the exchange consistent with this Act, the Secretary of the Interior shall complete 

the interim conveyance to Cape Fox of the federal lands included in the exchange 

within 180 days after the execution of the exchange agreement by Cape Fox and 

the Secretary of Agriculture. 

SEC. 6. EXCHANGE OF LANDS BETWEEN SEALASKA AND THE TONGASS NATIONAL FOREST. 

(a) GENERAL.—Upon conveyance of the Cape Fox lands included in the exchange 

under section 5 and conveyance and relinquishment of Sealaska in accordance with 

this Act of the lands and interests in lands described in subsection (c), the Secretary 

of the Interior shall convey to Sealaska the federal lands identified for exchange 

under subsection (b). 

(b) LANDS TO BE EXCHANGED TO SEALASKA.—The lands to be exchanged to 

Sealaska are to be selected by Sealaska from Tongass National Forest lands comprising approximately 9,329 acres in T. 36 S., R. 62 E., C.R.M., T. 35 S., R. 62 E., 

C.R.M., and T. 34 S., Range 62 E., C.R.M., as designated upon a map entitled ‘‘Proposed Sealaska Corporation Land Exchange Kensington Lands Selection Area,’’

dated April, 2002 and available for inspection in the Forest Service region 10 Regional Office in Juneau, Alaska. Within 60 days after receiving notice of the identification by Cape Fox of the exchange lands under Section 5(c), Sealaska shall be entitled to identify in writing to the Secretaries of Agriculture and the Interior the 

lands that Sealaska selects to receive in exchange for the Sealaska lands described 

in subsection (c). Lands selected by Sealaska shall be in no more than two contiguous and reasonably compact tracts that adjoin the land described for exchange to 

Cape Fox in section 5(b). The Secretary of Agriculture shall determine whether 

these selected lands are equal in value to the lands described in subsection (c) and 

may adjust the amount of selected lands in order to reach agreement with Sealaska 

regarding equal value. The exchange conveyance to Sealaska shall be of the surface 

and subsurface estate in the lands selected and agreed to by the Secretary but subject to valid existing rights and all other provisions of section 14(g) of ANCSA. 

(c) LANDS TO BE EXCHANGED TO THE UNITED STATES.—The lands and interests 

therein to be exchanged by Sealaska are the subsurface estate underlying the Cape 

Fox exchange lands described in section 5(c), an additional approximately 2,506 

acres of the subsurface estate underlying Tongass National Forest surface estate, 

described in Interim Conveyance No. 1673, and rights to an additional approximately 2,698 acres of subsurface estate of Tongass National Forest lands remaining 

to be conveyed to Sealaska from Group 1, 2 and 3 lands as set forth in the Sealaska 

Corporation/United States Forest Service Split Estate Exchange Agreement of November 26, 1991, at Schedule B, as modified on January 20, 1995. 

(d) TIMING.—The Secretary of Agriculture shall attempt, within 90 days after receipt of the selection of lands by Sealaska under subsection (b), to enter into an 

agreement with Sealaska to consummate the exchange consistent with this Act. The 

lands identified in the exchange agreement shall be exchanged by conveyance at the 

earliest possible date after the exchange agreement is signed. Subject only to the 

Cape Fox and Sealaska conveyances and relinquishments described in subsection 

(a), the Secretary of the Interior shall complete the interim conveyance to Sealaska 

of the federal lands selected for exchange within 180 days after execution of the 

agreement by Sealaska and the Secretary of Agriculture. 

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(e) MODIFICATION OF AGREEMENT.—The executed exchange agreement under this 

section shall be considered a further modification of the Sealaska Corporation/

United States Forest Service Split Estate Exchange Agreement, as ratified in section 17 of Public Law 102–415 (October 14, 1992). 

SEC. 7. MISCELLANEOUS PROVISIONS. 

(a) EQUAL VALUE REQUIREMENT.—The exchanges described in this Act shall be of 

equal value. Cape Fox and Sealaska shall have the opportunity to present to the 

Secretary of Agriculture estimates of value of exchange lands with supporting information. 

(b) TITLE.—Cape Fox and Sealaska shall convey and provide evidence of title satisfactory to the Secretary of Agriculture for their respective lands to be exchanged 

to the United States under this Act, subject only to exceptions, reservations and encumbrances in the interim conveyance or patent from the United States or otherwise acceptable to the Secretary of Agriculture. 

(c) HAZARDOUS SUBSTANCES.—Cape Fox, Sealaska, and the United States each 

shall not be subject to liability for the presence of any hazardous substance in land 

or interests in land solely as a result of any conveyance or transfer of the land or 

interests under this Act. 

(d) EFFECT ON ANCSA SELECTIONS.—Any conveyance of federal surface or subsurface lands to Cape Fox or Sealaska under this Act shall be considered, for all 

purposes, land conveyed pursuant to ANCSA. Nothing in this Act shall be construed 

to change the total acreage of land entitlement of Cape Fox or Sealaska under 

ANCSA. Cape Fox and Sealaska shall remain charged for any lands they exchange 

under this Act and any lands conveyed pursuant to section 4, but shall not be 

charged for any lands received under section 5 or section 6. The exchanges described 

in this Act shall be considered, for all purposes, actions which lead to the issuance 

of conveyance to Native Corporations pursuant to ANCSA. Lands or interests therein transferred to the United States under this Act shall become and be administered 

as part of the Tongass National Forest. 

(e) EFFECT ON STATEHOOD SELECTIONS.—Lands conveyed to or selected by the 

State of Alaska under the Alaska Statehood Act (Public Law 85–508; 72 Stat. 339; 

48 U.S.C. note prec. 21) shall not be eligible for selection or conveyance under this 

Act without the consent of the State of Alaska. 

(f) MAPS.—The maps referred to in this Act shall be maintained on file in the Forest Service Region 10 Region Office in Juneau, Alaska. The acreages cited in this 

Act are approximate, and if there is any discrepancy between cited acreage and the 

land depicted on the specified maps, the maps shall control. The maps do not constitute an attempt by the United States to convey State or private land. 

(g) EASEMENTS.—Notwithstanding section 17(b) of ANCSA, federal lands conveyed 

to Cape Fox or Sealaska pursuant to this Act shall be subject only to the reservation 

of public easements mutually agreed to and set forth in the exchange agreements 

executed under this Act. The easements shall include easement necessary for access 

across the lands conveyed under this Act for use of national forest or other public 

lands. 

(h) OLD GROWTH RESERVES.—The Secretary of Agriculture shall add an equal 

number of acres to old growth reserves on the Tongass National Forest as are transferred out of Federal ownership as a result of this Act. 

SEC. 8. AUTHORIZATION OF APPROPRIATION. 

(a) DEPARTMENT OF AGRICULTURE.—There are authorized to be appropriated to 

the Secretary of Agriculture such sums as may be necessary for value estimation 

and related costs of exchanging lands specified in this Act, and for road rehabilitation, habitat and timber stand improvement, including thinning and pruning, on 

lands acquired by the United States under this Act. 

(b) DEPARTMENT OF THE INTERIOR.—There are authorized to be appropriated to 

the Secretary of the Interior such sums as may be necessary for land surveys and 

conveyances pursuant to this Act.

PURPOSE

S. 2222 directs the Secretary of Agriculture to complete land exchanges with Cape Fox Corporation and Sealaska Corporation in 

Southeast Alaska. 

BACKGROUND AND NEED

The Alaska Native Claims Settlement Act (Public Law 92–203) 

granted more than 200 village corporations rights to select public 

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lands in Alaska. Each corporation was required to select all public 

land within a township in which the village is located. Any remaining lands need to complete a village’s entitlement were to be selected from areas identified in ANCSA that were withdrawn from 

public land laws. Section 16(b) of ANCSA entitled each of ten village corporations in Southeast Alaska, including Cape Fox Corporation (Cape Fox), to select 23,040 acres of public land. Section 

16(b) also required such selections to be contiguous and in reasonably compact tracts. 

With the exception of Cape Fox, all other Southeast Alaska 

ANCSA village corporations were restricted from selecting within 

two miles of a home rule city. Cape Fox was restricted from selecting lands within six miles from the home rule City of Ketchikan 

in order to protect the watersheds in the vicinity of Ketchikan. 

The six mile restriction precluded the Cape Fox Corporation from 

selecting valuable timber lands, industrial sites, and other commercial property within that area, leaving only the remote mountainous northeast corner of Cape Fox’s core township, which is nonproductive and of no economic value, available for selection. Selection of this parcel was required by section 16(b) of ANCSA that requires village corporations to select lands within its core township. 

Cape Fox’s land selections were further limited because the Annette Island Indian Reservation is within its selection area, and 

those lands were unavailable for ANCSA selection. 

S. 2222 directs the Secretary of Agriculture to complete a land 

exchange with Cape Fox in southeast Alaska. Sealaska Corporation 

is the Regional Corporation in the area. Regional Corporations received the subsurface estate to lands selected by village corporations. S. 2222 also directs the Secretary to complete a land exchange with Sealaska. The transfers and exchanges will resolve 

problems for both Cape Fox and Sealaska as well as allow the federal government to acquire several thousand acres of subsurface estate that presently encumbers management of Tongass National 

Forest Surface lands. 

LEGISLATIVE HISTORY

S. 2222 was introduced by Senator Murkowski on April 23, 2002. 

The Subcommittee on Public Lands and Forests held a hearing on 

S. 2222 on June 8, 2002. At the business meeting on July 31, 2002, 

the Committee on Energy and Natural Resources ordered S. 2222, 

as amended, favorably reported. 

COMMITTEE RECOMMENDATIONS

The Committee on Energy and Natural Resources, in open business session on July 31, 2002, by a voice vote of a quorum present, 

recommends that the Senate pass S. 2222, if amended as described 

herein. 

COMMITTEE AMENDMENT

During its consideration of S. 2222, the Committee adopted an 

amendment in the nature of a substitute. The amendment makes 

numerous technical and clarifying changes. The amendment also 

requires that the exchanges be of equal value, not net loss of old 

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growth reserves in the Tongass occur as a result of this act, and 

deletes the 500 buffer in section 5(b). 

SECTION-BY-SECTION ANALYSIS

Section 1 provide the short title. 

Section 2 sets forth a series of findings. 

Section 3 states that notwithstanding the provisions of section 

16(b) of ANCSA, Cape Fox Corporation shall not be required to select or receive conveyance of 160 acres of federal unconveyed lands. 

Section 4(a) states that within 24 months after the date of enactment of this act, if Cape Fox selects the identified 99 acres outside 

their selection area within the Tongass National Forest, the Secretary shall convey the land to Cape Fox. 

Subsection (b) states that, upon the conveyance described in subsection (a), the Secretary shall convey to Sealaska Corporation the 

subsurface estate to the same lands. 

Subsection (c) states that the Secretary shall complete the conveyances described in subsections (a) and (b) within 180 days after 

Cape Fox’s selection. 

Section 5 requires the Secretary to offer approximately 2.664 

identified acres of Tongass National Forest land to Cape Fox. If 

Cape Fox accepts the offered lands, Cape Fox shall, within 60 days 

after the date of enactment of this Act, identify for exchange lands 

totaling 2,900 areas that the Forest service agrees are equal in 

value to the Federal exchange lands. 

Subsection (d) states that the Secretary and Cape Fox shall mutually identify, if necessary additional Cape Fox lands to equalize 

the values of the lands involved in the exchange.

Subsection (e) states that, notwithstanding section 14(f) of 

ANCSA, the exchange described in this section shall be of the surface and subsurface estate subject to valid existing rights and all 

other provisions of section 14(g) of ANCSA. 

Subsection (f) states that the Secretary of Agriculture shall attempt, within 90 days after the date of enactment of this Act, to 

enter into an agreement with Cape Fox to consummate the exchange. This subsection also states that the lands identified in the 

exchange agreement shall be exchanged by conveyance at the earliest possible date after the exchange agreement is signed. Finally, 

this subsection states that, subject only to said agreement, the Secretary of the Interior shall complete the interim conveyance to 

Cape Fox of the Federal lands included in the exchange within 180 

days after the date of the execution of the exchange agreement. 

Section 6(a) states that, upon Cape Fox’s conveyance pursuant to 

section 5 and Sealaska’s conveyance pursuant to subsection (c), the 

Secretary of the Interior shall convey to Sealaska the Federal lands 

identified for exchange under subsection (b). 

Subsection (b) states that the lands to be conveyed to Sealaska 

are the approximately 9,329 identified acres of Tongass National 

Forest land. This subsection also states that Sealaska shall be entitled, within 60 days after receiving notice of the identification of 

Cape Fox exchange lands pursuant to subsection 5(c), to identify 

lands it wants as part of an exchange and that the Secretary of Agriculture agrees are equal in value to the Sealaska exchange lands 

described in subsection (c). Finally, this subsection states that the 

exchange conveyance to Sealaska shall be the surface and subVerDate Sep 04 2002 04:21 Sep 14, 2002 Jkt 099010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR280.XXX SR280
7

surface of the identified lands subject to valid existing rights and 

all other provisions of section 14(g) of ANCSA. 

Subsection (c) states that the lands to be transferred from 

Sealaska to the Federal Government are (1) the subsurface estate 

underlying the Cape Fox exchange lands described in section 5(c), 

2 an additional 2,506 acres of subsurface underlying the Tongass 

National Forest described in Interim Conveyance No. 1673, and (3) 

2,698 acres of subsurface estate of Tongass National Forest lands 

remaining to be conveyed to Sealaska in an identified agreement 

between Sealaska and the Forest Service. 

Subsection (d) states that the Secretary of Agriculture shall attempt, within 90 days after receipt of the selection of lands by 

Sealaska, to enter into an agreement to consummate the exchange. 

It further provides that the Secretary of the Interior shall complete 

the interim conveyance to Sealaska within 180 days after the execution of the exchange agreement between Sealaska and the Secretary of Agriculture. 

Subsection (e) states that the exchange pursuant to this section 

shall be considered a further modification of the Sealaska Corporation/Forest Service Split Estate Exchange Agreement, as ratified in 

section 17 of Public Law 102–415. 

Section 8(a) states that the exchanges described in this Act shall 

be of equal value. 

Subsection (b) requires Cape Fox and Sealaska to provide title 

acceptable to the Secretary for their respective lands to be exchanged to the United States pursuant to this Act. 

Subsection (c) provides that Cape Fox, Sealaska, and the United 

States shall not incur any liability for any hazardous substance 

solely as a result of the conveyances. 

Subsection (d) provides that any conveyance of Federal lands to 

Cape Fox or Sealaska pursuant to this Act shall be considered land 

conveyed pursuant to ANCSA and that Cape Fox and Sealaska 

shall remain charged with lands they exchange but shall not be 

charged for lands they receive under this Act with respect to their 

entitlements. This subsection also states that lands conveyed to the 

United States pursuant to this Act shall become part of the 

Tongass National Forest. 

Subsection (e) states that lands conveyed to or selected by the 

State of Alaska under the Statehood Act (Public Law 85–508) shall 

not be eligible for selection or conveyance under this Act without 

the consent of the State of Alaska. 

Subsection (f) states that if there is any discrepancy between 

cited acreage and the land depicted on the specified maps in this 

Act the maps shall control. 

Subsection (g) requires that, not withstanding section 17(b) of 

ANCSA, Federal lands conveyed to Cape Fox or Sealaska pursuant 

to this Act shall be subject only to the reservation of public easements mutually agreed to and set forward in the exchange agreements executed under this Act. 

Subsection (h) requires the Secretary of Agriculture to add an 

equal number of acres to old growth reserves on the Tongass National Forest as are transferred out of Federal ownership as a result of this Act. 

Section 8 authorizes to be appropriated such sums as may be 

necessary for any required surveys, value estimation and related 

8

costs of exchanging lands specified in this Act, and for road rehabilitation habitat and timber stand improvement, including 

thinning and pruning, on lands acquired by the Forest Service pursuant to this Act. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the cost of this measure has been provided by the Congressional Budget office:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 4, 2002. 

Hon. JEFF BINGAMAN, 

Chairman, Committee on Energy and Natural Resources, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2222, the Cape Fox Land 

Entitlement Adjustment Act of 2002. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Megan Carroll. 

Sincerely, 

BARRY B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

S. 2222—Cape Fox Land Entitlement Adjustment Act of 2002

CBO estimates that enacting S. 2222 would have no significant 

impact on the federal budget. The bill could affect direct spending 

(including offsetting receipts); therefore, pay-as-you-go procedures 

would apply, but we estimate that any such impacts would not exceed $10,000 a year. 

S. 2222 would direct the Secretary of the Interior to convey to 

Cape Fox Corporation, an Alaska Native village corporation, the 

surface estate to 99 acres of federal lands located within the 

Tongass National Forest in Alaska. The bill also would direct the 

Secretary to convey to Sealaska Corporation, an Alaska Native regional corporation, the subsurface estate to those lands. According 

to the Forest Service, those lands are not expected to generate significant receipts over the next 10 years; hence, CBO estimates that 

conveying them would have a negligible impact on the federal 

budget. 

In addition, S. 2222 would authorize the Secretary of Agriculture 

to convey to Cape Fox Corporation the surface and subsurface estates to about 2,664 acres of national forest lands in exchange for 

other lands currently owned by that corporation. Following that exchange, the bill also would authorize the Secretary of Agriculture 

to convey to Sealaska Corporation the surface and subsurface estates to federal lands to be identified by that corporation in exchange for its interests in the subsurface estate of roughly 5,204 

acres of other lands. Under the bill, any lands or interests exchanged must be equal in value. 

According to the Forest Service, completing the land exchanges 

authorized by the bill could affect offsetting receipts from timber 

harvests on the affected lands. S. 2222 does not specify all of the 

lands to be exchanged under the bill, but does identify areas from 

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which such lands would be selected. The bill also specifies that, if 

the Secretary of Agriculture conveys interests in national forest 

lands that are currently designated as old growth preserve, she 

must set aside other lands that, under current law, might be harvested in the future in order to keep constant the number of acres 

in such preserves. However, based on information from the Forest 

Service about the level of timber harvesting expected to occur on 

lands that could be affected by S. 2222, CBO estimates that any 

forgone offsetting receipts from timber harvests probably would not 

exceed $10,000 a year. 

S. 2222 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. The conveyances and exchanges authorized by this bill would be voluntary on 

the part of Cape Fox Corporation and Sealaska Corporation. 

The CBO staff contact for this estimate is Megan Carroll. This 

estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 2222. The bill is not a regulatory measure in the sense of imposing Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 2222, as ordered reported. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Forest Service at the Subcommittee hearing follows:

STATEMENT OF TOM THOMPSON, DEPUTY CHIEF, NATIONAL

FOREST SYSTEM, USDA FOREST SERVICE

Mr. Chairman and Members of the Subcommittee, thank 

you for the opportunity to appear before you today. I am 

Tom Thompson, Deputy Chief for the National Forest System, USDA Forest Service. I am here today to provide the 

Department’s views on S. 2222, to resolve certain conveyances and provide for alternative land selections under the 

Alaska Native Claims Settlement Act related to Cape Fox 

Corporation and Sealaska Corporation, and for other purposes. 

S. 2222—CAPE FOX LAND ENTITLEMENT ADJUSTMENT ACT OF

2002

This bill, as introduced, provides for an additional 99 

acres of Alaska Native Claims Settlement Act (ANCSA) selection area for Cape Fox and Sealaska Corporations at 

Clover Passage, on Revillagigedo Island. It also requires 

the Forest Service to offer a land exchange, and if accepted 

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by Cape Fox, complete a land exchange with Cape Fox and 

Sealaska Corporations. The Department of Agriculture 

could support the enactment of S. 2222 with the changes 

described below. 

Through this land exchange: 

• Cape Fox Corporation would receive the surface and 

subsurface of 2,663.9 acres of national forest system (NFS) 

lands at the Jualin Mine site near Berners Bay, north of 

Juneau. 

• Sealaska Corporation would receive the surface and 

subsurface of NFS lands to equalize values of Sealaska 

subsurface lands and land interests they convey to the 

U.S. Sealaska Corporation will select NFS lands of equal 

value from within a 9,329-acre pool of NFS lands at the 

Kensington Mine, also near Berners Bay. 

• The Forest Service would receive lands and land interests of equal value from within: (1) a pool of approximately 

3,000 acres and a public trail easement offered by Cape 

Fox (surface) and Sealaska (subsurface) on Revillagigedo 

Island; (2) 2,506 acres of Sealaska split estate subsurface, 

located at Upper Harris River and Kitkun Bay, on Prince 

of Wales Island; and (3) 2,698 acres of Sealaska subsurface 

land interests remaining as entitlement from the Haida 

Land Exchange Acts and the Sealaska/Forest Service Split 

Estate Exchange Agreement of 1991. Cape Fox will choose 

the lands to be conveyed to the United States from the 

3,000-acre pool in (1) above. 

Recently, the Forest Service has been working with the 

Committee as well as the Cape Fox and Sealaska Corporations to clarify and improve S. 2222 language. Some areas 

we have agreed to in concept include: 

• There is no intent to add to the total land entitlement 

acreage available to Cape Fox or Sealaska Corporations 

under the Alaska Native Claims Settlement Act (ANCSA). 

• Lands to be exchanged will be equal in value. 

• Federal lands conveyed to Cape Fox or Sealaska shall 

be subject to the reservation of rights-of-ways for public access for the Alaska Department of Transportation and 

Public Facilities Juneau Access Project. 

• Addition of a funding mechanism for the Secretary of 

Interior to conduct required surveys, value estimates, and 

related costs of exchanging lands specified in the Act, etc. 

The Forest Service will continue to clarify and seek 

agreement with both Cape Fox and Sealaska Corporation 

in five general areas related to S. 2222 language as outlined below: 

• Land valuation standards and acceptance process. 

• Time frames for completing land exchanges. 

• Applicability of federal standards for title and hazardous substances certification for exchanged lands. 

• The advisability of having the Forest service maintain 

a five hundred foot buffer inland of the marine shoreline 

in and adjacent to the waters of Berners Bay. 

11

• Reservation of rights-of-way necessary for public access or other national forest purposes for Federal lands 

conveyed to Cape Fox or Sealaska.

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill S. 2222, as ordered reported.

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