II

104TH CONGRESS

1ST SESSION S. 536

To authorize the Secretary of the Interior to consolidate the surface and

subsurface estates of certain lands within 3 conservation system units

on the Alaska Peninsula, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 1 (legislative day, MARCH 6), 1995

Mr. MURKOWSKI (for himself and Mr. STEVENS) introduced the following bill;

which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To authorize the Secretary of the Interior to consolidate

the surface and subsurface estates of certain lands within

3 conservation system units on the Alaska Peninsula,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Alaska Peninsula Sub5 surface Consolidation Act of 1995’’.

6 SEC. 2. DEFINITIONS.

7 As used in this Act:

8 (1) AGENCY.—The term agency—
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1 (A) means—

2 (i) any instrumentality of the United

3 States; and

4 (ii) any Government corporation (as

5 defined in section 9101(1) of title 31,

6 United States Code); and

7 (B) includes any element of an agency.

8 (2) ALASKA NATIVE CORPORATION.—The term

9 ‘‘Alaska Native Corporation’’ has the same meaning

10 as is provided for ‘‘Native Corporation’’ in section

11 3(m) of the Alaska Native Claims Settlement Act

12 (43 U.S.C. 1602(m)).

13 (3) KONIAG.—The term ‘‘Koniag’’ means

14 Koniag, Incorporated, which is a Regional Corpora15 tion.

16 (4) KONIAG ACCOUNT.—The term ‘‘Koniag Ac17 count’’ means the account established under section

18 4.

19 (5) PROPERTY.—The term ‘‘property’’ has the

20 same meaning as is provided in section 12(b)(7)(vii)

21 of Public Law 94–204 (43 U.S.C. 1611 note).

22 (6) REGIONAL CORPORATION.—The term ‘‘Re23 gional Corporation’’ has the same meaning as is pro24 vided in section 3(g) of the Alaska Native Claims

25 Settlement Act (43 U.S.C. 1602(g)).
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1 (7) SECRETARY.—Except as otherwise provided,

2 the term ‘‘Secretary’’ means the Secretary of the In3 terior.

4 (8) SELECTION RIGHTS.—The term ‘‘selection

5 rights’’ means those rights granted to Koniag, pur6 suant to subsections (a) and (b) of section 12, and

7 section 14(h)(8), of the Alaska Native Claims Settle8 ment Act (43 U.S.C. 1611 and 1613(h)(8)), to re9 ceive title to the oil and gas rights and other inter10 ests in the subsurface estate of the approximately

11 275,000 acres of public lands in the State of Alaska

12 identified as ‘‘Koniag Selections’’ on the map enti13 tled ‘‘Koniag Interest Lands, Alaska Peninsula’’,

14 dated May 1989.

15 SEC. 3. ACQUISITION OF KONIAG SELECTION RIGHTS.

16 (a) The Secretary shall determine, pursuant to sub17 section (b) hereof, the value of Selection Rights which

18 Koniag possesses within the boundaries of Aniakchak Na19 tional Monument and Preserve, Alaska Peninsula National

20 Wildlife Refuge, and Becharof National Wildlife Refuge.

21 (b) VALUE.—

22 (1) IN GENERAL.—The value of the selection

23 rights shall be equal to the fair market value of—
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1 (A) the oil and gas interests in the lands

2 or interests in lands that are the subject of the

3 selection rights; and

4 (B) in the case of the lands or interests in

5 lands for which Koniag is to receive the entire

6 subsurface estate, the subsurface estate of the

7 lands or interests in lands that are the subject

8 of the selection rights.

9 (2) APPRAISAL.—

10 (A) SELECTION OF APPRAISER.—

11 (i) IN GENERAL.—Not later than 90

12 days after the date of enactment of this

13 Act, the Secretary and Koniag shall meet

14 to select a qualified appraiser to conduct

15 an appraisal of the selection rights. Sub16 ject to clause (ii), the appraiser shall be se17 lected by the mutual agreement of the Sec18 retary and Koniag.

19 (ii) FAILURE TO AGREE.—If the Sec20 retary and Koniag fail to agree on an ap21 praiser by the date that is 60 days after

22 the date of the initial meeting referred to

23 in clause (i), the Secretary and Koniag

24 shall, by the date that is not later than 90

25 days after the date of the initial meeting,
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1 each designate an appraiser who is quali2 fied to perform the appraisal. The 2 ap3 praisers so identified shall select a third

4 qualified appraiser who shall perform the

5 appraisal.

6 (B) STANDARDS AND METHODOLOGY.—

7 The appraisal shall—

8 (i) be conducted in conformity with

9 the standards of the Appraisal Foundation

10 (as defined in section 1121(9) of the Fi11 nancial Institutions Reform, Recovery, and

12 Enforcement Act of 1989 (12 U.S.C.

13 3350(9)); and

14 (ii) utilize risk adjusted discounted

15 cash flow methodology.

16 (C) SUBMISSION OF APPRAISAL REPORT.—

17 Not later than 180 days after the selection of

18 an appraiser pursuant to subparagraph (A), the

19 appraiser shall submit to the Secretary and to

20 Koniag a written appraisal report specifying the

21 value of the selection rights and the methodol22 ogy used to arrive at the value.

23 (3) DETERMINATION OF VALUE.—

24 (A) DETERMINATION BY THE SEC25 RETARY.—Not later than 60 days after the date
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1 of the receipt of the appraisal report under

2 paragraph (2)(C), the Secretary shall determine

3 the value of the selection rights and shall notify

4 Koniag of the determination.

5 (B) ALTERNATIVE DETERMINATION OF

6 VALUE.—

7 (i) IN GENERAL.—Subject to clause

8 (ii), if Koniag does not agree with the

9 value determined by the Secretary under

10 subparagraph (A), the procedures specified

11 in section 206(d) of the Federal Land Pol12 icy and Management Act of 1976 (43

13 U.S.C. 1716(d)) shall be used to establish

14 the value.

15 (ii) AVERAGE VALUE LIMITATION.—

16 The average value per acre of the selection

17 rights shall not be more than $300.

18 SEC. 4. KONIAG ACCOUNT.

19 (a) IN GENERAL.—

20 (1) The Secretary shall enter into negotiations

21 for an agreement or agreements to exchange Federal

22 lands or interests therein which are in the State of

23 Alaska for the Koniag Selection Rights referred to

24 in section 3.
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1 (2) If the value of the Federal lands to be ex2 changed is less than the value of the Koniag Selec3 tion Rights established in section 3, then the Sec4 retary may exchange the Federal lands for an equiv5 alent portion of the Koniag Selection Rights. The re6 maining selection rights shall remain available for

7 additional exchanges.

8 (3) For purposes of this section, the term

9 ‘‘Federal lands’’ means lands or interests therein lo10 cated in Alaska, administered by the Secretary and

11 the title to which is in the United States but exclud12 ing all lands and interests therein which are located

13 within a conservation system unit as defined in the

14 Alaska National Interest Lands Conservation Act

15 section 102(4).

16 (b) ACCOUNT.—

17 (1) IN GENERAL.—With respect to any Koniag

18 Selection Rights for which an exchange has not been

19 completed by October 1, 2004 (hereafter in this sec20 tion referred to as ‘‘remaining selection rights’’), the

21 Secretary of the Treasury, in consultation with the

22 Secretary, shall, notwithstanding any other provision

23 of law, establish in the Treasury of the United

24 States, an account to be known as the Koniag Ac25 count. Upon the relinquishment of the remaining se-
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1 lection rights to the United States, the Secretary

2 shall credit the Koniag Account in the amount of the

3 appraised value of the remaining selection rights.

4 (2) INITIAL BALANCE.—The initial balance of

5 the Koniag Account shall be equal to the value of

6 the selection rights as determined pursuant to sec7 tion 3(b).

8 (3) USE OF ACCOUNT.—

9 (A) IN GENERAL.—Amounts in the Koniag

10 Account shall—

11 (i) be made available by the Secretary

12 of the Treasury to Koniag for bidding on

13 and purchasing property sold at public

14 sale, subject to the conditions described in

15 this paragraph; and

16 (ii) remain available until expended.

17 (B) ASSIGNMENT.—

18 (i) IN GENERAL.—Subject to clause

19 (ii) and notwithstanding any other provi20 sion of law, the right to request the Sec21 retary of the Treasury to withdraw funds

22 from the Koniag Account shall be assign23 able in whole or in part by Koniag.

24 (ii) NOTICE OF ASSIGNMENT.—No as25 signment shall be recognized by the Sec-
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1 retary of the Treasury until Koniag files

2 written notice of the assignment with the

3 Secretary of the Treasury and the Sec4 retary.

5 (C) BIDDING AND PURCHASING.—

6 (i) IN GENERAL.—Koniag may use

7 the Koniag Account to—

8 (I) bid, in the same manner as

9 any other bidder, for any property at

10 any public sale by an agency; and

11 (II) purchase the property in ac12 cordance with applicable laws, includ13 ing the regulations of the agency of14 fering the property for sale.

15 (ii) REQUIREMENTS FOR AGENCIES.—

16 In conducting a transaction described in

17 clause (i), an agency shall accept, in the

18 same manner as cash, an amount tendered

19 from the Koniag Account.

20 (iii) ADJUSTMENT OF BALANCE.—The

21 Secretary of the Treasury shall adjust the

22 balance of the Koniag Account to reflect

23 each transaction under clause (i).

24 (4) SPECIAL PROCEDURES.—The Secretary of

25 the Treasury, in consultation with the Secretary,
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1 shall establish procedures to permit the Koniag Ac2 count to—

3 (A) receive deposits;

4 (B) make deposits into escrow when an es5 crow is required for the sale of any property;

6 and

7 (C) reinstate to the Koniag Account any

8 unused escrow deposits if a sale is not con9 summated.

10 (c) TREATMENT OF AMOUNTS FROM ACCOUNT.—

11 The Secretary of the Treasury shall—

12 (1) deem as a cash payment any amount ten13 dered from the Koniag Account and received by an

14 agency as a proceed from a public sale of property;

15 and

16 (2) make any transfer necessary to permit the

17 agency to use the proceed in the event an agency is

18 authorized by law to use the proceed for a specific

19 purpose.

20 (d) REQUIREMENT FOR THE ADMINISTRATION OF

21 SALES.—

22 (1) IN GENERAL.—Subject to paragraph (2),

23 the Secretary of the Treasury and the heads of

24 agencies shall administer sales described in sub-
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1 section (a)(3)(C) in the same manner as is provided

2 for any other Alaska Native Corporation that—

3 (A) is authorized by law as of the date of

4 enactment of this Act; and

5 (B) has an account similar to the Koniag

6 Account for bidding on and purchasing property

7 sold for public sale.

8 (2) PROHIBITION.—Amounts in an account es9 tablished for the benefit of a specific Alaska Native

10 Corporation may not be used to satisfy the property

11 purchase obligations of any other Alaska Native Cor12 poration.

13 (e) REVENUES.—The Koniag Account shall be

14 deemed to be an interest in the subsurface for purposes

15 of section 7(i) of the Alaska Native Claims Settlement Act

16 (43 U.S.C. 1601 et seq.).

17 SEC. 5. CERTAIN CONVEYANCES.

18 (a) INTERESTS IN LAND.—For the purpose of section

19 21(c) of the Alaska Native Claims Settlement Act (43

20 U.S.C. 1620(c)), the following shall be deemed to be an

21 interest in land:

22 (1) The establishment of the Koniag Account

23 and the right of Koniag to request the Secretary of

24 the Treasury to withdraw funds from the Koniag

25 Account.
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1 (2) The receipt by a Settlement Trust (as de2 fined in section 3(t) of such Act (43 U.S.C. 1602(t))

3 of a conveyance by Koniag of any right in the

4 Koniag Account.

5 (b) AUTHORITY TO APPOINT TRUSTEES.—In estab6 lishing a Settlement Trust under section 39 of such Act

7 (43 U.S.C. 1629e), Koniag may delegate the authority

8 granted to Koniag under subsection (b)(2) of such section

9 to any entity that Koniag may select without affecting the

10 status of the Settlement Trust under this section.

Æ