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[Senate Report 107-280]
[From the U.S. Government Publishing Office]

                                                       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 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 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 shallbe 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.
    (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 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 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 
subsurface 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 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 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 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.
     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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