I

104TH CONGRESS

1ST SESSION H. R. 566

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

subsurface estates of certain lands within three conservation system

units on the Alaska Peninsula, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 19, 1995

Mr. YOUNG of Alaska introduced the following bill; which was referred to the

Committee on Resources

A BILL

To authorize the Secretary of the Interior to consolidate

the surface and subsurface estates of certain lands within

three 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 Executive agency (as defined

3 in section 105 of title 5, United States

4 Code), except as provided in clause (iii) of

5 this paragraph;

6 (ii) any instrumentality of the United

7 States; and

8 (iii) any Government corporation (as

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

10 United States Code); and

11 (B) includes any element of an agency.

12 (2) ALASKA NATIVE CORPORATION.—The term

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

14 given the term ‘‘Native Corporation’’ in section 3(m)

15 of the Alaska Native Claims Settlement Act (43

16 U.S.C. 1602(m)).

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

18 Koniag, Incorporated, which is a Regional Corpora19 tion.

20 (4) KONIAG ACCOUNT.—The term ‘‘Koniag Ac21 count’’ means the account established under section

22 5.

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

24 same meaning given such term by section
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1 12(b)(7)(vii) of Public Law 94–204, as amended (43

2 U.S.C. 1611 note).

3 (6) REGIONAL CORPORATION.—The term ‘‘Re4 gional Corporation’’ has the same meaning given

5 such term by section 3(g) of the Alaska Native

6 Claims Settlement Act (43 U.S.C. 1602(g)).

7 (7) SECRETARY.—Except as otherwise provided

8 in this Act, the term ‘‘Secretary’’ means the Sec9 retary of the Interior.

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

11 rights’’ means those rights granted to Koniag pursu12 ant to subsections (a) and (b) of section 12 and sec13 tion 14(h)(8) of the Alaska Native Claims Settle14 ment Act (43 U.S.C. 1611 and 1613(h)(8)) to re15 ceive title to the oil and gas rights and other inter16 ests in the subsurface estate of the approximately

17 275,000 acres of public lands in the State of Alaska

18 identified as ‘‘Koniag Selections’’ on the map enti19 tled ‘‘Koniag Interest Lands, Alaska Peninsula’’ and

20 dated May 1989.

21 SEC. 3. VALUATION OF KONIAG SELECTION RIGHTS.

22 (a) IN GENERAL.—Pursuant to the provisions of sub23 section (b), the Secretary shall value the selection rights

24 which Koniag possesses within the boundaries of

25 Aniakchak National Monument and Preserve, Alaska Pe-
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1 ninsula National Wildlife Refuge, and Becharof National

2 Wildlife Refuge.

3 (b) VALUE.—

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

5 rights shall be equal to the fair market value of—

6 (A) the oil and gas interests in the lands

7 or interests in lands that are the subject of the

8 selection rights; and

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

10 lands for which Koniag is to receive the entire

11 subsurface estate, the subsurface estate of the

12 lands or interests in lands that are the subject

13 of the selection rights.

14 (2) APPRAISAL.—

15 (A) SELECTION OF APPRAISER.—

16 (i) IN GENERAL.—Not later than 90

17 days after the date of enactment of this

18 Act, the Secretary and Koniag shall meet

19 to select a qualified appraiser to conduct

20 an appraisal of the selection rights. Sub21 ject to clause (ii), the appraiser shall be se22 lected by the mutual agreement of the Sec23 retary and Koniag.

24 (ii) FAILURE TO AGREE.—If the Sec25 retary and Koniag fail to agree on an ap-
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1 praiser by the date that is 60 days after

2 the date of the initial meeting referred to

3 in clause (i), the Secretary and Koniag

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

5 days after the date of the initial meeting,

6 each designate an appraiser who is quali7 fied to perform the appraisal. The two ap8 praisers so identified shall select a third

9 qualified appraiser who shall perform the

10 appraisal.

11 (B) STANDARDS AND METHODOLOGY.—

12 The appraisal shall—

13 (i) be conducted in conformity with

14 the standards of the Appraisal Foundation

15 (as defined in section 1121(9) of the Fi16 nancial Institutions Reform, Recovery, and

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

18 3350(9)); and

19 (ii) utilize the risk adjusted dis20 counted cash flow methodology.

21 (C) SUBMISSION OF APPRAISAL REPORT.—

22 Not later than 180 days after the selection of

23 an appraiser or appraisers pursuant to subpara24 graph (A), the appraiser shall submit to the

25 Secretary and to Koniag a written appraisal re-
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1 port specifying the value of the selection rights

2 and the methodology used to arrive at the

3 value.

4 (3) DETERMINATION OF VALUE.—

5 (A) DETERMINATION BY THE SEC6 RETARY.—Not later than 60 days after the date

7 of the receipt of the appraisal report under

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

9 the value of the selection rights and shall notify

10 Koniag of the determination.

11 (B) ALTERNATIVE DETERMINATION OF

12 VALUE.—If Koniag does not agree with the

13 value determined by the Secretary under sub14 paragraph (A), the procedures specified in sec15 tion 206(d) of the Federal Land Policy and

16 Management Act of 1976 (43 U.S.C. 1716(d))

17 shall be used to establish the value.

18 (4) AVERAGE VALUE LIMITATION.—The aver19 age value per acre of the selection rights determined

20 under this subsection shall not be more than $300.

21 SEC. 4. KONIAG EXCHANGE.

22 (a) AGREEMENT.—The Secretary shall enter into ne23 gotiations for an agreement or agreements to exchange

24 Federal lands or interests therein which are in the State

25 of Alaska for the selection rights.
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1 (b) LIMITATION.—If the value of the Federal prop2 erty to be exchanged is less than the value of the selection

3 rights determined under section 3, then the Secretary may

4 exchange the Federal property for that portion of the se5 lection rights having a value equal to that of the Federal

6 property. The remaining selection rights shall remain

7 available for additional exchanges.

8 (c) DEFINITION.—For the purposes of this section,

9 the term ‘‘Federal lands or interests therein’’ shall include

10 any lands or properties owned by the United States which

11 lands or interests therein have been determined to be suit12 able for disposal through exchange by the Secretary pursu13 ant to the Federal Land Policy and Management Act of

14 1976, or which have been made available to the Secretary

15 for exchange under this section through the concurrence

16 of the director of the agency administering such lands or

17 property. Such term does not include those lands which

18 are within an existing conservation system unit and those

19 lands which are subject to a mineral lease.

20 SEC. 5. KONIAG ACCOUNT.

21 (a) ESTABLISHMENT.—

22 (1) IN GENERAL.—With respect to any selection

23 rights for which an exchange has not been completed

24 by October 1, 2005 (hereafter in this section re25 ferred to as ‘‘remaining selection rights’’), the Sec-
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1 retary of the Treasury, in consultation with the Sec2 retary, shall, notwithstanding any other provision of

3 law, establish a Koniag Account. Upon the relin4 quishment of the remaining selection rights to the

5 United States, the Secretary shall credit the Koniag

6 Account in the amount of the appraised value of the

7 remaining selection rights.

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

9 the Koniag Account shall be equal to the value of

10 the remaining selection rights as determined pursu11 ant to section 3(b).

12 (3) USE OF ACCOUNT.—

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

14 Account shall—

15 (i) be made available by the Secretary

16 of the Treasury to Koniag or its assignees

17 for bidding on and purchasing property

18 sold at public sale, subject to the condi19 tions described in this paragraph; and

20 (ii) remain available until expended.

21 (B) ASSIGNMENT.—

22 (i) IN GENERAL.—Subject to clause

23 (ii) and notwithstanding any other provi24 sion of law, the right to request the Sec25 retary of the Treasury to withdraw funds
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1 from the Koniag Account shall be assign2 able in whole or in part by Koniag.

3 (ii) NOTICE OF ASSIGNMENT.—No as4 signment shall be recognized by the Sec5 retary of the Treasury until Koniag files

6 written notice of the assignment with the

7 Secretary of the Treasury and the Sec8 retary.

9 (C) BIDDING AND PURCHASING.—

10 (i) IN GENERAL.—Koniag and its as11 signees to the extent of any assignee may

12 use the Koniag Account to—

13 (I) bid, in the same manner as

14 any other bidder, for any property at

15 any public sale by an agency; and

16 (II) purchase the property in ac17 cordance with applicable laws, includ18 ing the regulations of the agency of19 fering the property for sale.

20 (ii) REQUIREMENTS FOR AGENCIES.—

21 In conducting a transaction described in

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

23 same manner as cash, an amount tendered

24 from the Koniag Account.
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1 (ii) ADJUSTMENT OF BALANCE.—The

2 Secretary of the Treasury shall adjust the

3 balance of the Koniag Account to reflect

4 each transaction under clause (i).

5 (4) SPECIAL PROCEDURES.—The Secretary of

6 the Treasury, in consultation with the Secretary,

7 shall establish procedures to permit the Koniag Ac8 count to—

9 (A) receive deposits;

10 (B) make deposits into escrow when an es11 crow is required for the sale of any property;

12 and

13 (C) reinstate to the Koniag Account any

14 unused escrow deposits if a sale is not con15 summated.

16 (b) TREATMENT OF AMOUNTS FROM ACCOUNT.—

17 The Secretary of the Treasury shall—

18 (1) deem as a cash payment any amount ten19 dered from the Koniag Account and received by an

20 agency as a proceed from a public sale or property;

21 and

22 (2) make any transfer necessary to permit the

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

24 authorized by law to use the proceed for a specific

25 purpose.
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1 (c) REQUIREMENT FOR THE ADMINISTRATION OF

2 SALES.—

3 (1) IN GENERAL.—In any case in which Koniag

4 has not made an assignment under subsection

5 (a)(3)(B) with respect to a sale, subject to para6 graph (2), the Secretary of the Treasury and the

7 heads of agencies shall administer sales described in

8 subsection (a)(3)(C) in the same manner as is pro9 vided for any other Alaska Native Corporation

10 that—

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

12 enactment of this Act; and

13 (B) has an account similar to the Koniag

14 Account for bidding on and purchasing property

15 sold for public sale.

16 (2) PROHIBITION.—Amounts in an account es17 tablished for the benefit of a specific Alaska Native

18 Corporation may not be used to satisfy the property

19 purchase obligations of any other Alaska Native Cor20 poration.

21 (d) REVENUES.—The Koniag Account shall be

22 deemed to be an interest in the subsurface for purposes

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

24 (43 U.S.C. 1601 et seq.).
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1 SEC. 6. CERTAIN CONVEYANCES.

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

3 21(c) of the Alaska Native Claims Settlement Act (43

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

5 interest in land:

6 (1) The establishment of the Koniag Account

7 and the right of Koniag to request the Secretary of

8 the Treasury to withdraw funds from the Koniag

9 Account.

10 (2) The receipt by a Settlement Trust (as de11 fined in section 3(t) of such Act (43 U.S.C. 1602(t))

12 of a conveyance by Koniag of any right in the

13 Koniag Account.

14 (b) AUTHORITY TO APPOINT TRUSTEES.—In estab15 lishing a Settlement Trust under section 39 of such Act

16 (43 U.S.C. 1629e), Koniag may delegate the authority

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

18 to any entity that Koniag may select without affecting the

19 status of the Settlement Trust under such section.

Æ