Special Joint Task Force report on Alaskan native issues

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Special Joint Task Force report on Alaskan native issues
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United States -- American Indian Policy Review Commission
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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Letter of transmittal
        Page iii
        Page iv
    Table of Contents
        Page v
        Page vi
    Chapter I. Historical summary
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Chapter II. The Alaskan Native Claims Act
        Page 9
        Page 10
        Page 11
        Page 12
    Chapter III. Issues directly related to ANCSA
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
    Chapter IV. Alaskan Native villages
        Page 21
        Page 22
        Page 23
        Page 24
    Chapter V. Findings and recommendations
        Page 25
        Page 26
    Appendix A. Long-term projects for Native ownership and control of lands conveyed under the Alaska Native Claims Act
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
    Appendix B. Interview reports of Alaskan field visit
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
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        Page 90
    Back Cover
        Back Cover 1
        Back Cover 2
Full Text
















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[COMMITTEE PRINT]


AMERICAN INDIAN POLICY REVIEW

COMMISSION






SPECIAL JOINT TASK FORCE REPORT ON

ALASKAN NATIVE ISSUES


JULY 1976








AMERICAN INDIAN POLICY RETEW COMMISSION
CONGRESS OF THE UNITED STATES


Prepared for the use of the American Indian Policy Review Commission


U.S. GOVERNMENT PRINTING OFFICE
77-706 WASHINGTON : 1976

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20432 Price z1 20




































AMERICAN INDIAN POLICY REVIEW COMMISSION
Senator JAMES ABOUREZK, South Dakota, Chairman
Congressman LLOYD MIEED)S, Washington, Vice Chairman


Senator LEE METCALF, Montana
Senator MARK HATFIELD, Oregon
Congressman SIDNEY R. YATES, Illinois
Congressman SAM STEIGER, Arizona


JOHN BORBRIDGE, Tlingit-Haida
LOUIS R. BRUCE, Mohawk-Sioux
ADA DEER, Menominee
ADOLPH DIAL, Lumbee


JAKE WHITECROW, Quapaw-Seneca-Cayuga

ERNEST L. STEVENS, Oneida, Executive Director
KIRKE KICKINGBIRD, Kiowa, General Counsel
MAX I. RICHTMAN, Professiowil Staff Member

(n)










LETTER OF TRANSMITT.AL


AME:RICA.N INDIAN POLiCY RVIFv.W Co.Mr MISSION,
CONI() ;i..ss OFr TII UNITIr-:) STA'IT.S.
IlI'asinIto i. D.C.
Mr. ERNEST STEVENS,
Director, American Indian Pol;cy R iew Comm;ss;on, Cony,' i,., of
the United States, Washington, D.C.
DEAR AIR. STEVENS: We hereby transmit to you a special joint task
force report on Alaska:n Native issues.
This report is the result of an extended on-site visit to Al:t-k; and
exten.iye literature r,.search, conducted by epreptei((ntatives of the Task
Forced on Tribal Government (TF No. 2); the Task For-e on F edertIl,
State, and Tribal Juris.diction (TF No. 4) ; and the Task Force on
Reservation Development and Resource Prote(ction (TF No. 7). In-
cluded in an appendix is a report of the Alaskan Native Foundation
Commission. prepared as part of our joint efforts.
The major focus of the report is on the impact that tlhe Al.sk: i
Native Claims Settlement Act has had on Alaskan Native-, )particu-
larly at the village level. Unfortunatley, as the act is currently being
adminiistered by the Department of the Interior, Alaskan Native- are
a long way from having their land and achieving economic security.
Evei if all impediments, created by the Department of the Interior,
were ot be removed, there is serious question as to whether niativ'-s
will be able. over the long run, to control their own dlestinies.
It is our hope that the American Indian Policy Review Commission
will expand on this report, and strongly and affirmatively ad(lre-s the
problem of Alaskan Natives in its report to Congress.
Judge WILLIAM.Tr ROY RHODES.
.(2n1>ber, Ta7sk Force No. 4..
Dr. LOnLT..NE RVrFFING,
Specialist, Task Forrr No. 7.
PAT, A LJXANDER.
Special Co(i.m,' Task Force .Yo. 4.
MfCHALF Cox,
\peciaist, Ta.,'k Force .Vo. 2.
'MIT)


















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in 2013













http://archive.org/details/specialj00unit











CONTENTS


Letter of transmittal_
Chapter I. Historical Summary-_ 1
Chapter II. The Alaskan Native Claim? Act .---------------- --- 8
Chapter III. Issues Directly Related to ANCSA ------------------13
Chapter IV. Alaskan Native Villages------------------------------ 21
Chapter V. Findings and Recommendations- ____________25
Appendix A. Long-term Projects for Native Ownership and Control (f
Lands Conveyed Under the Alaska Native Claim-; Act
(Alaska Native Foundation)------------------------- 27
Appendix B. Interview Reportsof Alakkan FieldYit------------ 37
.m















(,HAl.PTI'R I. II."OIU(ICAL SI'MMARY U1P TO TIII. ALAS-
I ." '." I... .
KAN NATIVE CLA.I S SEI1TLEIMEINT A(T
In 1.,i;7. tlhe United Slates acquired title to Alaska fr' in l ii -ia
throirhl the Treaty of C'ession." Article III of that t'ty dlcals witli
tll, rights of tlie people living in Alal-ka, s(me of whom %%ere Riis-ian
citizens:
The inhal-itants of the ceded territory ac cording to their clihoie, rt-,rvi '..
their natural allegiance. may return to Russia witliiii 3 years; Init if they .s.litiihl
prefer to remuiain in the ceded territory, they, with the exception of the 1iln-
i civilized tribes. shall be admitted to the enjoyment of all the rights, advantage-.
;mid inimmuniities of citizens of the United States and shall be maintained amnil
Irntected in thle free enjoyment of their liberty, property, and religion. Thic un-
i vilized tribes will be subject to such laws and regulations Ias the IUnited Statt.-
may from time to time adopt in regard to aboriginal tribes of that country.
At the same time Alaska was purchased by the United States. tlhe
Federal Government was ronndingy up remnants of Indian tribes in
tile c(p1tiunous United States and confining them to reservations.
In 1,71, 4 years after the purchase of Alaska. Congre,-s forbid any
further treaties between the Federal Government and Indian trile(-.
thus depriving the Alaskan Natives of the early opportunity to settle
their land claims.
The Organic Act of 1884 raised Alaska's :tarts a notch from a ouz-
toms district to a land district. Among other things, it extended tle
U.S. iniing laws, principally the Mineral TIcation Act of
1S'72, to Alazk-i. which became important a few years later when
rold w;ias discovered neal Juneau.
The Organic Act of 18.4 noted tlhe unusual leral position of the
Alaskan Natives by providing-
That the Indians or other persons in said district shall not lie disturled in tr',
priosession of any lands actually in their use or occupation or now claimed by
them. but the terms under which such persons may acquire the tit1 to suchi
lands is reserved for future legislation by Congress.
Tils lan-iuaze later became the legal basis for a legislative settle-
ment of Alaskan Natives claims rather than a judicial one.
The 1ei.rislators who drafted the OrgaInic Act knew very little about
either Alaska or tlhe predominantly Native population of tfre aiv:i.
Congress established a special Commission to report-
... .upon the conditions of the Indians residing in said territory : what lni N. if
any, should be reserved for their use: what provisions shall be m:i(de for their
eulication ; what rights by occupation of settlers should lie recogInizvd.
The following year, tlhe Commission recommended thliat the trneral
land laws of the United States be exten(ledl to Alaska. It also vorcom-
mendledl tliat, as the Natives claimed "only the land on which their
homes are built, and some garden patches near their villam-s." b :a fIl settlers should be encouraged to come to Alaska to "open and ldvelp
its resources." Accordinflv, Congress bean to extend otli.hr land 1:w-
L qnmp native people maintain that Russia never owned ALiaka. hence the United cf :t e
eoull, not r.,1'cihase.
(1)








to Alaska. Among these were the homesteading laws which were to
prove inoperable there, as almost none of Alaska had been surveyed.
Furthermore, homesteading was designed for farming and most of
Alaska was not suitable for farming. Because they were not citizens,
Natives could not acquire title to land under the homesteading laws.
In the 1880's and the 1890's, in spite of unworkable land laws, the
white settlers began to exploit Alaska's natural resources. The Alaska
Commercial Co. was well established in western Alaska, and soon the
salmon canning industry spread westward along the coast of Alaska.
From the 1880's on, gold and copper became the mainstays of the
Alaskan economy. Although there were deposits elsewhere in Alaska,
the center of gold production was Fairbanks. The center of copper pro-
duction was the Copper River Valley where the Kennecott Mines were
located.
Throughout this period of exploitation, few whites paid much at-
tention to the Alaskan Natives. Although Natives were the majority
of Alaska's population, officially they scarcely existed. In contrast to
the general thrust of U.S. Indian policy assimilationistt at that time),
there was no governmental interest in the Alaskan Native. For ex-
ample, in 1887, Congress passed the Indian Allotment Act; how-
ever, the new law did not apply in Alaska.
Meanwhile, southeastern Alaska was becoming settled, and as non-
Natives increasingly encroached upon traditional Native hunting and
fishing grounds, the Tlingit and Haida Indians protested. They wrote
to the Secretary of the Interior, but his response was not helpful:
I have to inform you that these matters all lie outside the control of this De-
partment and would be proper subjects for consideration of Congress.
The southeastern Indians then asked for reservation status, but since
reservations were out of fashion, their request was ignored.
Various persons, including a commissioner of the Alaskan Land
Office, urged that public land laws be extended to the Alaskan Natives,
but no one listened to them, until the Supreme Court ruled in a 1905
Alaskan case, Berrigan v. United States, that the United States had an
obligation to protect the property rights of its Indian wards. The
following year, Congress passed the Alaskan equivalent of the Indian
Allotment Act. This law allowed Eskimos and Indians, (but not
Aleuts) to apply for 160-acre homesteads on nonmineral land chosen
from vacant and unappropriated parts of the public domain, that is
from unreserved Federal lands. Homesteading, however, was no more
practical for Natives than for whites. Fifty-four vears later, only 80
allotments had been issued, and most of those in the southeast.
In the 1900's, when the conservation movement began. President
Theodore Roosevelt's Chief Forester. Gifford Pinchot. created the first
of the national forests in Alaska. From the turn of the century on,
the Federal Government removed millions of acres in Alaslka from the
public domain for conservation purposes: national forests, national
parks, wildlife refuges, petroleum reserves. The first major with-
drawal in Alaska was the 16-million-acre Tongass National Forest in
the southeast which was created in 1902 and enlarged 7 years later.
In withdrawing thje land for the forest, the Federal Government paid
little attention to existing settlements-Native or nonNative. Much
later, the U.S. Court of Claims would rule that the United States







owed the Tl iiiiit and I aida Indianls $7.5 million for aI:n 4s takzien frolil
them witIholt comlelIsationl whICen t(hiis naIti onial forc-t w..is st aside.
In 1I 90,, Alaiskan coal fields were wvitlidrawii from entry so tia:Lt no
coal could be mined. In 1907, mwore t1,1ian -1. million a' ;1es 1- 1r1lnd
Prince Willianm's Sound in southcenttral Alaska were set asilc for Ih le
Chugachm National Forest. The followinlrg y eT'r, (',igIess pi;sd.l the
Picket Act authorizing tlhe Pre.ident to make with rawals by Kxeiu-
tive ord(ler without congrt'sioial approval. Altliough thlie I'ikt Act.
applied to the entire United States, it was a particularly cnit roversial
issL ien Alaska. In 1916, the first Alahska. national p6 I rk, .Mount Mc-
Kinley, was set aside, and a few years later, a vast 4lationil moimiment
was created at Kat mai. The next large withdri wal from the pubiic
domain came in 1923 when Pre-.ident hlarding created the 23-million
acre Naval Pet roleum, Reserve No. in the A rctic.
In 1912 Alaska became a territory. Although no one was certain
whether territorial legislature had the authority, one of its earliest
acts was to enfranchise natives. It was not until 19021, when Conress
declared all noncitizen Indians born within the territorial limits of the
United States to be citizens, that Alaskan Natives acquired citizenship.
In 1913 Secretary of the Interior Ickes announced the creation of
several native reservations in Alaska pending approval by 30 percent
of the native residents. One was the 1.4-million-acre Venetie Reserva-
tion in the northeastern corner of the territory established by two
villages on the Chandalar River, a tributary of the Yukon. Tlie Secre-
tary's action greatly alarmed nonnative Alaskans who feared that up
to half of the territory would be closed to them by the creation of res-
ervations. Many whites thought that the Interior Department had prhs-
sured the natives into voting to create reservations. In fact, a court
later found that a reservation at Hydaburg in the southeast had been
so improperly created. The nonnative fears were largely unjustified,,
however, for only six IRA reservations were created. Four others were
proposed, but were voted down by the native residents and the IIy(l:i-
btirg one was eventually disbanded. The BIN later proposed another
11 reservations in northwest Alaska. which would have set aside 2.2-
million acres for the use of approximately 2,000 people, but the na-
tives there never had an opportunity to vote on tier.,,. Eleven villa, s
petitioned the BIA for reservations,. but it took no action on the
petitions. In the 19.'.,s, about 90 villages asked to have reservations
created, but by then, termination was the official Indian policy, and
reservations were again out of style.
As referred to previously, in 193.5 the Tlingits and Haidas .had per-
suaded Congress to allow them to seek comI)ensation from the court
of claims for lands taken from them when the Tongass Forest was
formed. In 1946, Coniress had created the Indian Claimns ComniiQsion
and thus lihnd given Indians who were unable to sue in the court of
claims a forum for redress of griev-ances: however, few natives were
cognizant of the Claims Commission before 19.-1, tle deadlline for
filing claims.
Diirinr the push for statehood for Al.:ska. proponents wvre .en-
erilly aware of the native land claims, but believed tait the claini
were a Federnil problem to 1e resolved separately and that ttr',ehood
should not he held up until the natives' land claims were settled.








In most western States, the advent of statehood mneaiit a land grant
from Congress of two sections from the public domain (or 1.28 acres)
for each township for the support of public schools. Under this general
practice, Alaska would have received about 21 million a,-res of public
domain lands to administer for revenue purpos.,s. Instead, Alaska
received 102 million acres, roughly one-third of the total acreage of
the State. This grant was more than the total land grant to all other
western States combined. Members of the House and Senate Interior
Committees who drafted the statehood bill abandoned the precedent
of numbered sections for several reasons. First, since Alaska was un-
surveyed for the most part, there were few townships. To survey the
territory before statehood was out of the question because it would
take so long. Secondly, in Alaska where the land is of varying value,
in place grants could have resulted in the State's receiving lands with
little foreseeable economic value. Finally, from a land management
point of view, having small tracts of State land isolated from one
another is unwieldy. Instead, Alaska could choose its revenue land in
reasonable compact tracts from any place in the public doilmin.
Statehood gave the State government the right to choose the follow-
ing amounts of land (some within 10 years, others within 25) : 102,350,-
000 acres from the unappropriated public domain for general pur-
poses; 400,000 acres from the national forest in southeastern Alaska
for community expansion; and 400,000 acres from the public domain
for the same purpose. Also confined were earlier grants of Federal
land to Alaska of approximately 1.1 million acres.
To insure that Alaska would be economically viable. Congress de-
parted even further from precedent. Before 1927, no State was allowed
to select so-called "mineral lands" for example, land where the pri-
mary use would be mineral extractions. After 1927, States which hlad
not completed their land selections could take mineral lands, but the
mineral rights transferred were inalienable, that is, the minerals could
be leased, but not sold. Alaska was to be the chief beneficiary of this
1927 legislation. In addition, Alaska was given a larger share of the
revenues from mineral leases on public domain lands within its bound-
aries than was any other State.2 Since Alaska is not a reclamation
State, Congress provided that it should receive the full 90 percent of
mineral revenues including all receipts from rents, royalties and
bonuses on leases on Federal land. Alaska is the only State in the
Inion which has this large and continuous source of revenue from
Federal lands.
In 1958, when Congr(.--: approved statehood, there were 92.4 million
acres of land in Alaska in Federal reserves of one sort of another:
20 million acres of national forest: a 23-million-acre naval petro-
leuIm rc.es'e ; more than 27 million acres in power reserves. (including
a second Arctic petroleumin reserve) ; 7.8 million acre; of wildlife
refuges: and 6.9 million acre, of national parks and monuments. The
Federal Government was trustee for more than 4 million acres of
Indian reservations,. The public domain consisted of 271.S million
acres from which the new State was to get nearly 103 million. Only
700,000 acres had been patented to private individuals. There were
2 Other Woetern States received 37.5 percent of these revenues dirpclv. Ton n..-opnt coeq
to the Fr'-t'.rl Government the reqt. 52.5 percent, is paid Into the Federal reclamition fund
for irri, meaon nnd land reclamation projects.








iitiierfe.ted ctlie.s on aothtIr ziUO,000l. "1 li,- ( ,, -s lail kept
tol-fly f ont -fou'th of Alalsia ,- I lt li ; il l :id.
Alteholl., prol nml tlts of I-tatelio ";itil tiol 'ttl', f nt iti f tl, Nativel
climd os wis ia: FeI deal prol.1 :0ltm i;n ,,d ao(-n A1lt-it k -,lt oi,, t elc Niltiv,-i
themllselves were lar,,ly M-,il l )..Mo t of t1,V vilhi^, 111-0e v, rtt n:, r ar
of tilt- way ill N0hi6'1 --atcht ,,d mi t al tilt-iit. At t t ti e fI linw,'
was o iy our st:[tewid, Native ,,trm:,il.ation-tIle A.1:1ska Nl;tivi
Brotlerihood and Sisterhood. Th'e mwailn con,'ern of in folrie I N:tit'..s
1.1d ofLr Iaio a II!ndi I]mIn\ o Li i i n 1. 01st : It Co11 n-1v s- In' I eItxt;I-, ,uI I'-!
tlhe claimis when it ele:tedi the S;late of Al;-ka. Til. (O)r:ini A\, of
1-S,4- had 1,.s1rve.dI determination n tl ihe claims "'for fIlt ire hitii -1:11
of ('olIres.," and the Natives were fi-r:iful that C onlTe-s tiv- iIit I-se
thi-s mandate to simply wipe out all of their cl:iii.c. 'l'y :inlt ed to
ilneser\e whatever rirht.si they night ]have. a:lthlougl a:t tlat tili. it wNva,
untclear what they were.
'The MemNfIbers of Conurlc--s who drafted tlie atel,, bill we11 ore :1a-
o'IC'1rnjed abl)out what their actions mi'l t nmiu'a r';X-a-r;/'. tle (1l:iiiI-.
()n tilte OIn- land, they wuinted to leave all existing i( claim'.s 11;dt1u1-lbed.
()n tile other. tleev did not want to give the claim- any lmv ':;d v:'litilv
they dlid not alradv have.
It is clear from their con-vesations recorded dirii ii tie public
Smar'k-p ss-ion.- in 1954. that soinIv Senator-: did not think t1at claincs were valid. Others ined the si1-ettled claiiis as one nmo, :10u-ll
nient, against .stateliood. When the conmittee ,ect in 1954 to irIn out
tlhe detail- of m e statelfeood bill whichll -iii,,eqle.ntlv diedl without co(I-
in"r to a vote in tlhe I-ous', of Representative-.-, tile -.S. I )-4p:!rtit .t of
Jus'tie advised tlhe Senate not to mention Native ri,-hts at all. even
if jii-t to dizclaim them. Senator Guv Cor'donii (MBepubli,';. (O)re-,m),
v.who was runninflr the meeting, and Senntor Ienrv JTacks,,. who vw:i-
sIlbse, iuently to become the chief arbiter of the clai .s qul -ut ion, :1e'-dc,'
to thie I)epartiment of .Ustia.e's po-ition. Alaslkan DeleLate 1'. L. Bart-
lett airfietd that tho aL,- .iice of a di-,Ilaimer of Native iKts xw'ld
lead to the interpretation tli:t Conr'I- did not think -there were anv
il oririra l rights involved, ani would be certain to alm1-.r Indi:i1 of-
Iiiza t ions across tlhe country.
Conzre-s finallv approved feetion 4 of the Statelihio, Act of 19--1.
which lid include a di.zclaiimer:
AR tHi tomrp)act with the Tnittod St;ite, snidi State and ii ts pl.i 4o doa n-,r ., a "nd
ldo,'lIre that they fore-%-'r di,.la irn all rizlht arid title to any l: il- ,.r otl.-.r 1''.-
vrty not granted or confirmed to the State or it- pilitil.n11 Siildivi-I.i&1T! liy ,r iiliil,.r
I11, autlhority of thii< act th, riHular or title to which is held by thlip nied St.it,..
or is siil'.wct to disposition by the United St;IteZ :ind to :ny 1o:1dl ,r ,tlhr prial'rty
il'-l1liiiimz fislIin i rights tII ri'-I\t or titlt, to whii< i ( 1:1y I-e 1I.-1l 1'v India(.
E-kin4im ,. or Alenut . or i, belp1 liy the united St:it in tru-t for .id N:ti-
tiv es: that all such lan (dI or other prip i.'ity in'lundin'.i i.li-iin i ri lits tlhi ri-lt r
title to which may be held by tho. United States in trurnt for -::i Nativ'.
,,iall lie and rermnain iilnd-r tlO, als,,liute juridicti(n and (tf ntrIl ,f the f tit, ,1
States until disposed of unhdr its authority ex,-.it to ,.,0h e'.t-'nt aI the ( ''li i:-",-
11:z !r,-' eriled 1," may lieronfti-r prIi-.'rili. aNld ,::(oelt \wlin lll l by ii\i'ii''i il
Na tivv'- in fee without retrictions ,n alieimtion.
,La ter. somp would ar'ue diilrinff claims settlt-ment l.arnL_, tinat
setionii 4 invalidated tlhe Nati ve- claims: ComlL'res.. ,,,w(ever.' wo ld
,leCide that this affirmed itz riLAht to settle them.
After a majority of the vot(rl-t. in Ala4ka ac',eptfd t !e Stateoh,,,,d
A'-t of 195., tlhe State -ra .ett a depart it-it of natural r'eFouolr







through its division of lands would choose, manage, and dispose of
Alaska's 102 million acres from the public domain. The division of
lands choose tracts of land from the public domain at a very slow pace,
primarily because no one was sure what the land in Alaska contained.
In 1961, the BIA filed protest to State selections on behalf of four Na-
tive villages. These villages claimed about 5.8 million acres near Fair-
banks, whereas the State had filed for patents to 1.7 million of these
acres. A flood of Native claims were filed in 1961, and the Interior
Department's regional solicitor ruled that these claims involved "In-
dian title" and that any settlement of them must involve the careful
determination of facts. This was not the business of the BLM, the
solicitor argued, so local land offices were instructed to dismiss all
claims on jurisdictional grounds, except those for 160-acre allotments.
The BIA and the BLM, both agencies of the Interior Department,
were clearly operating at cross purposes in Alaska in the early 1960's.
On the one hand, local representatives of the BIA urged Natives to
claim all the land they could under any available means and to pro-
test State's selections of lands which they considered their own. On
the other hand, local BLM offices dismissed these claims as fast as
they were filed.
The action of the State of Alaska of selecting lands which Natives
claimed would become the catalyst for the claims settlement.
Native associations began to be organized at an increased pace. In
1962, the Tundra Times, a Native weekly, was created to provide a
common information linkage for Natives.
Natives increasingly filed administrative protests against State selec-
tions, and filed claims on land they had traditionally used.3
In 1964 Nat i ves achieved a major political victory when Secretary of
the Interior Udall refused to grant Alaska title to land it selected, be-
cause of Native protests.
In 1966, the movement to create viable native organizations reached
the State level and the Alaska Federation of Natives (AFN) was
founded.
Also in 1966. Natives protested the new Federal oil and gas lease sale
on the North Slope.4 Secretary Udall responded by first suspending the
lease sale and thereafter "froe zing" the disposition of all Federal land
in the State until Natives' claims were settled.5
In 1969, former Alaska Governor Hickel was nominated as Secretary
of the Interior. Opposition to his nomination existed among environ-
mental groups, as well as in the Native community. The Native com-
munity extracted a pledge from Ilickel to continue the "freeze" as a
condition of their support.
The effect of the fieze on creating the political climate and pressure
for a settlement cannot be underestimated.6 Although much disagree-
ment as to terms existed, a strange troika coalition seeking set tlement
was created: Natives seckin,' "title" to their aboriginal lands: the State
of Alaska s,,eking to clear Native title so it could select its lands; the
major oil companies-national and international-seeking to clear Na-
tive title so that the freezez" could be lifted and a pipeline built.
3 By i9o., npprordni!ntely 337 million acres in Alaska were claImed by natives.
4 The Arctic Slrpp Native Aq.qoetation would eventually claim 57 million acres in the
North Slope-thelr traditional use area.
SPublic Land Order 4582. Issued In January 1969, formalized this freeze shortly before
the ndministration channed.
4 See Berry. M. C., "The Alaska Pipeline"; The policies of oil and Natives land claims.




7

The Natives and the State joined toget-iecr i1i a coimiiiis-ion and pri-
posed ter'11s of a settlementt7 Conrressional field l l.ariins Ih/L:1, and
serious business of haniniering ouit tle settlilent bt cIi in ('f l rt(... Ti,.
process would take another 21,/ years of 1(rotiations, lobbifig, and
comipromiso to produce legislation acceptable to all parties.8
SThieqP terms were to change many times before the Act was finally passpil.
$Durlng this period. AFN and Alaskan natives generally developed lut, maJr m lujloir.l
forces In support of the settlement, and of settlement terms most favorable to the ntlv,.
conmmu tilty.














CHAPTER II. TIl, : ALASKAXN NATIVE ('LA IMS ST'I"L.-
MIENT ACT (AN(CSA) PUBLIC LAW 94-204
The AN('SA is anl extremely cornplex piece of loegi-lationll, retlec-
ing all manner of compromise and partially effe'tilatedl political
philosoplhy.1
A. POIAcY oF TriiE ANCSA.
Congr'e.-s states that it intended a fair and just settlement of the
Native alboriginal land claims. The settlement should avoid litigation.
allowing for inaximinum native participation wit lout, however, creating
reservat ions, wardships, or racially defined institutions.

B. ALASKANX NATIVrES
AN'CSA defines Alaskan Natives as persons with V4 or more native
blood. Tills blood quantum requirement is waived where it is the
community judgment. that both an individual and his/her parents
were regarded as Natives.

C. TEIl SE'TLE:MI.NT TE:RIS
All aboriginal claims and rights, including hunting and fishing
rights are terminated and a Native right to fee simple title in approxi-
niately 40 million acres, plus a shared cashl settlement (called the
Alaskan Native Fund) of $962,500,000 was settled.

D. NATIVE CorPOR.ATIONS
Congress mandated the creation of 12 regional State-chartered
profit-oriented corporations, and State-chartered corporations-
eithler profit or nonprofit-village corporations in each native village.

1. REGIONALS
The 12 regional corporations were to follow common heritage lins
and hold subsurface rights to land selected by village corporations.
and in some cases, hold land both surface and subsurface. A 13th
corporation was allowed by Congress for nonresident. Natives if fltey
so elect; each Native enrolled in the region would receive 100 shares of
ztock in his/her regional corporation.

2. VILLAGE CORPORATIONS
Each native village (with a population of 25 or more) was to receive
an allocation of land, based on a population formula.2 Villages were
1 This brief section will highlight the pertinent provisions, and Identify the entitltrs cr,-
a,'d by ANCSA.. It will not, however, attempt any definitive or sophistlcnted analysis --f
the lpIelslatlon.
Villages in southeastern Alaska received the least land, In recognition of the Court of
Claims judgment in the Tlingit-Haida suit.
(9)







to receive anywhere from 23,040 acres to 161,280 acres. Village corpo-
rations were to receive the surface estate to the land they select.
Village corporations must convey title to any tract occupied as
primary place of residence, a business, a subsistence campsite or
headquarters for reindeer husbandry. Village corporations must also
convey a village site of not less than 1,280 acres to the municipal
government in the village, or in the event there is no existing village
municipality, 1,280 acres are to be held in trust by the State until
such is created.
E. FINANCIAL DISTRIBUTION
Moneys from the Alaska Native Fund are provided over a specified
time period to the regional corporations proportionately based on the
number of each corporation's stockholders versus the total number
of all stockholders.
Seventy percent of all revenues produced from subsurface minerals
or timber resources of any regional corporation is subject to "revenue
sharing" among the regional corporations. Revenue is shared based on
the proportionate number of stockholders.
Not less than 10 percent of any moneys received from the Alaska
Native Fund and from "revenue sharing" by regional corporation
must be disbursed to stockholders.
Not less than 45 percent (50 percent after 5 years) of moneys re-
ceived by the regional corporations shall be distributed to the village
corporations in its region apportioned on the basis of the number of
stockholders. The village corporation must make a proportionate cash
distribution to nonresident stockholders.

F. NATIVE LAND SELECTIONS
1. ANCSA provides certain lands-but not all-from the public
domain: National wildlife refuges, national forest, and so forth from
which native selections are made.
Village corporations (within 3 years) were to select lands starting
from native village sites that are reasonably contiguous, compact, and
in whole sections (1,280 acres).
Approximately 22 million acres were to be selected by villages. Vil-
lages would eventually receive surface title, the regional corporation
would get subsurface. If a village selects land where subsurface rights
are impaired, for instance, Naval petroleum reserve or wildlife pre-
serve, the regional corporation receives selection rights to equivalent
subsurface acreage.
The difference between the actual total village selections and the 22-
million acre allocation (surplus acreage) is to be allocated to the re-
gional corporation, which in turn must allocate on an equitable need-
basis back to village corporations.
An additional 16 million acres were allocated to the regional cor-
poration which would select from this 16 million, if it already had
achieved its full acreage entitlement pursuant to other portions of
ANCSA.
An additional 2 million acres is provided for selection by regional
corporations for historical and cultural sites.








2. C(INVEYANCES

cll ronveyances from the United States a(14 silject t, valid exi-t-
inr riglIts : Leases, contracts, righIt-of-way, ea,-C1 n t-, -1 t i*i g a,:tt.vlt:-.
P- r, tl 1 1 1 1 (
etc.
Once selection alnd easements are determi ine(d, a form of title .a 11el
Interim Conveyane will issile fromll thle IDepartment of the Iinteriir
which allows fort he uIse of the selected 'l ndIl.
Fee simple title requires thie selected lands to be surveyed. No timo1
limit is placed on the United States for conveyane of land.

3. A JOINT FEDERAL-STATE LAND I'SE PLANNING COMMISSION

Tle. planning commission was etab:li-hed for a mimlber of pur-
poses most ill)mport.ant of which was to make recommen(lation 1011ConC'ern-
img easements to attach to la1nd conveyallce.- to native corporations.

4. E.\ASEMENTS

Unlike standard property law where public ea-ements, and so forth
would l)e determined and coimipensate1 for in a judicial forum, or by
negotiation. ANCSA provid(les for lmblic-ln-e. easeLements to b' estab-
lislwd at tlhe time of the conveyance of land.

G. SPECIAL PROVISIONS

1. REVOCATION OF RESERVATIONS

All reservations, except Metlakatla are revoked; land title becomes
unrestricted.
Any former reservation may select to hold its land in computer fee
simple (rather than just. surface estate) ; however, if it does -, it does
not share in the monetary component of ANCSA.3

2. REVOCATION OF INDIAN ALLOT3MEXNT

The Allotment Act is revoked subject to pending applications which
may be processed at the option of native applicant.

3. TAXATION

Revenues from Alaska Native Fund are not taxable. Stock receipt
is not taxable.
Income produced from investment is taxable.
Land not producing income is tax exempt for 20 years.
Any future capital gains tax to be computed from fair market value
at time of receipt.
4. NON'ALrENABILITY OF STOCK

Stock may not for 20 years be alienated, sold or otherwise trans-
ferred.
Of the 23 pre-existing reservations so selected.


77-706-76 ---S






12

5. SUBSISTENCE HUNTING AND FISHING
The Secretary is authorized to set aside 80 million acres for eventual
congressional determination as to creation of national parks, and so
forth. These lands are known as D(2) lands and native ability to use
thliese lands for subsistence is unclear.

6. PIPELINE CONSTRUCTION PERMIT'ITED
The land freeze instituted by the Secretary of the Interior is
terminated.












CHAPTER III. ISSUES DIRECTLY RELATED TO ANC.A
As previously indicated, AN(C.SA. is an extremely complex statute
which evolved over a protracted time period. ANCSA attempted to
resolve the conflicting interests of Native., the State of Al:i-ka. tile
Federal Government, and corporate petroleum interest. In the best of
circumstances, creating a balance between these interests would doll-
nitionally lead to ambiguities and conflicts of interpretation. Addl,
to this inherent problem are unanticipated consequences which ulti-
mately could occur.
A. CURRENT ISSUES
1. CONVEYANCES OF LAND
(a) Overview
ANCSA contemplated a fairly quick transfer of title to the approxi-
mately 40 million acres recognized as the land portion of the settle-
ment to the various mandated native corporate entities.
A fixed timetable was provided for the native corporations for land
selection. This timetable was adhered to by the native corporations.
No fixed timetable was provided in ANCSA for the determining
easements or conveyances of title by the Federal Government. The act,
however, does use the term "immediately" in referring to the Secre-
tary's obligation to transfer title to native corporations. The next
step contemplated in the process was for a determination of easements,;
that are to be attached to conveyances. Once easeiment; are determilned,
"Interim Conveyance." a form of title which allows for developmental
use of the land, will be issued. Following interim conveyances (LC.),
the selected land will need to be surveyed before fee simple absolute
title will be issued.1
The major stumbling block to receipt of land by native corporations
is the Federal Government's easement policies and procedures.
ANCSA provides (sec. 17bc 1) that public easements shall be at
periodic points.q alone the courses of major waterways whih are rt,:1<,,!.1:ly
neceQnry to guarantep international treaty obli.zati,,n,. a full ri-'-1t f .i!ir
use and access for recreation, hunting. transportationo, utilitit.s, dloks. and suchi
other public uses as the Planning Commission (letermineq to be important.
The authority to reserve easements is vested in the Secretary of th.
Interior. The process contemplated is for the Joint State-Fe,'ler.l
Planning Commission to recolnmen(ld, after coiinultation with parti,-,
of interest, easements to the Department of the Interior (throiv_11
BLM) for action of the Secretary. In fact. tlie proc-'es at it. m'nt
expedited fashion for any particular parcel of land, is for BLM to
suLzest tentative easements, which are then circullated for commnii,,t
(60 days) : BLTM revised proposed easements are then submitted to
the Joint Planning Commission with supporting, data; the Joint Plan-
ninz Commiszion reviews and revises the easement packaire an(d sib-l-
1 Only 2 percent of Alaska's lands bhave been surveyed ; this process will take decades.
(13)








mits it back to BLM (60 days); BLM reviews the Joint Planning
Commission package and publishes its intention to convey subject to
recommended easements (30 days); and an appeal period is provided
publication before "I.C." is issued (30 days). This expedited process
is to take 180 days or 6 months. In fact, to date only approximately
500,000 2 acres of I.C. have been issued.3 Villages report initial meet-
ings with BLM anywhere from 6 months to 1 year ago on proposed
easement packages, most of which they did not agree to, and there has
been no action or contact since.
The cumbersomeness of the process and BLM's performance com-
petency are, however, the minor part of the trouble; the problem lies
with the standards being applied by the Department of the Interior
to determine easements. The standards are broad and all-encompass-
ing, and many native people throughout Alaska objected to BLM's
initially proposed easements as "Indian giving"-taking back vast
quantities of land throughout the easement process. While the govern-
ing statute refers to "periodic" shoreline easements, Interior's position
is for a 25 feet/coastal continuous easement 415 feet continuous stream
cas;ement, plus numerous continuous trail easementss. Where land was
selected by native villages for primary subsistence activities, these
casements which apparently are designed to give nonnatives full access
to native lands pose a serious threat to such activities.
In addition to the above easements is the "floating transportation
,corridor easement" which potentially restricts us.aie of a large land
,irea based on the future possibility that some portion of the corridor
may be used. ANCSA 17(c) contemplates that if the Secretary w;th-
draws utility and transportation corridors pursuant to pre-existin_-
authority, the native corporations would not select such land but would
select other lands. The congressional intent therefore was probably
not to have native selections diminished by such transportation and
utility corridors.
(b) Views of native corporations
The Bristol Bay Native Corporation (BBNC) views its biggest
problem as getting conveyance to land so that it may mana're 'nd
develop its lands in order to be self-sufficient, when the tax immunities
run out in 1991. It will miss the opportunity to develop if the land is
not conveyed soon. In its opinion, land conveyances have been held up
indefinitely by BLM because of staff shortages at BLM and the Land
Use Planning Committee and because of the absence of guidelines
on easement criteria and the unaceptable easement packages requested
to date by BLM. BBNC has on four different occasions presented its
land selections to BLM. BBNC would not only like to see an immediate
interim conveyance of its lands so that it can begin development to
insure its future, but also it would like to see an extension of the mori-
2 As the act has already run 5 years, a conveyance rate of 100.000 acres per year adis up
to 400 years to convey the full acreage. If one were to assume that Interior could only have
been Issuing title for 2 years (the first 3 years for selection and preparation), the con-
veyance time still calculates out to an absurd 160 years.
SA further complication Is pre-exIstinx native allotment applications. In felral court,
BLM was found to have not properly processed such allotment applications aind ordered to
redo the native allotment lr,)c<4s. Thiespe native allotments are of course in the same land
aria as the native villages and will cloud title to any corporation land area as the native
viln. and will cloud title to any corporation land until determined. BLM must process
both allotments and ANSCA; it does not have the staff for both.
4 This requirement is particularly curious since the State already has coastline access,
via State law.








torilni on taxation so that the 20 years exemption starts fro flip tie tn,
it receives I.C. As a way to resolve thie conflict, BBNC a:11d other re-
gional corp)oratios 1 have prop,,.-,e a solutionn where y I.C(." wo,,l( Iw
granted immediately slublject to future easiseniit determinations either
via negotiations or litigation.
T'vonek Nalive (Corporation (Cool,: Inlet RPrion ) i. tie si,',',.,,
entity to the former Moquawkie Indian Reservaftion. Corporation of-
ficials argue that they should receive inmnedi:ate ease.Ienrlt-free Iatent
to the former reservation land because of valid prior existil.g riglit- to
thlie reservation land and ee;i 1i'ethe land ls 1,.en a(lde uatel* -,iv 'yil.
Thev, jvWet the idea of re-,erva;tion ePa-enluent ; for public ,ii-,e 1e-1.,,,
first of all, there lhas never been "public use" of the former reoerv:itio11.
Se,'oid, the easements reqle'ted(l are in direct conflict with thle intent
of Connv-ess; to provide an economic base for the successful future of
tbie villa corporation .ec.ause the easements would impair the surface
estate of that base. The TNC does not believe that ANCSA converts-
formler reservations to "public u'-e." This "public use," view of BLM
is contrary to past usage of lands reserved exclusively for the people
of T'onek. T'Flie Moquawkie Indian Reservation was private prior to
A NCSA in accordance with the corporate IRA charter of the native
village of Tvoiiek. Thlis policy was supported and protected by the
Department, of the Interior. In addition to the status prol)eIC. the cor-
poration is unable to determine what are tlp "applicable law- and rer' i-
Iationq" pertaining to the interim administration of former reserva-
tions covered bv section 19 of A.NCSA. Tvonek would also recommends
tlat tax exemiptit(os are extended for 20 years from the time of
conveyance.
The Bering Straits Native Corporation shared many of thle viewz
expressed by thle Brictol Bay Native Corporation, specifically thlit the
corporations were held to a rigid timetable whereas the Secretary is
being held to none.
Land conveyances have been held up by staff shortages and lack of
appropriate easement criteria. This delay has stopped all develop !- ,nt
to the detriieont of the future economic viability of ti'e corporation.
The coastal easements are particularly objectable to Bering Straits
1,eauise most of its villPes: are fishing villagres on the coa't and ,e,'
to inure their own access to the sea for fishin.mrand for the development
of 1i-'h-related( i.u'ieios. It is alto possible that tlie coastal ara-z lihive
residual zold deposits :nr(l a blanu:e, coastline e.asement would eOlli)li-
cate ownership and control of such assets. Tlie corporation partiu.iil:rly
questioned why Ala4: five lands receive different treatment from
that aiven private lands in the lower 4S. Land should be first conveyed
and then the native? would negotiate easements with ju t comlensa-
tion. It questioned the right of tlhe Government to take native land
withliout compensation via t,'e easement proce-..
The Sitnasuak Native Corporation (Nomwe Villame Corpontion)
m.d(lo the following comments on the effect of the delays in l;nd con-
veyance : "Witlhiout our 'japer title we aIre not ile to develop (hiIr
land.q. The jurisdiction of mnianaging the land is still in the li hands of thle
Government. During the time between the election of land, andl tlhe
actual receipt of patent, a great portion of tihe money settlement will
evaluate. This money will be nee(led to protect the land should, the
property taxes reach tremenldon,; heights. Tlhe long-range, planning








for development of the lands is hindered because we do not know which
lands we will be receiving."
Sealaska Corporation officials agree that the chief problem in the
implementation of ANCSA is the Secretary's present criteria for
granting easements. The Secretary is allowing BLM to request con-
tinuous, floating and blanket easements as opposed to "periodic" ease-
ments which are "reasonably" necessary. The effect of the blanket ease-
ments will be to erode the native land base under ANCSA.
Doyon Ltd. took a somewhat different position on conveyances. Ex-
cept for certain critical areas, Doyon's wish to develop immediate
conveyance of land was not its most serious problem. Doyon Ltd. is to
receive 8 million acres which will require considerable managerial
capability. Doyon's position is to accept interim conveyances with
easements and fight the easements in court later. It does not want
BLM, however, to stop conveying land because of court battles dis-
puting easements.
2. REVENUE SHARING
(a) Overview
The 7(i) provision of ANCSA sets up a procedure whereby 70 per-
cent of each regional corporation's revenues from timber or subsurface
(minerals) estate, shall be shared between all regional corporations
on a proportionate enrollment basis. Revenues produced from other
investments or sources are not subject to this provision.
The major issue is, What is revenue? Assuming that it would not
be sensible to share gross revenues, the issue becomes how to calculate
net revenues-what are legitimate deductions, depreciations, et cetera.
A further issue, given the variances in acceptable accounting proce-
dures, is how to coordinate and systemize 12 independent business
entities so that each may trust the determinations of the other.
Another impact of 7(i), given its uncertainty of application, is that
it may have an inhibiting effect on corporate development decisions.
Solving the mechanics of how 7(i) will work is but one step. The
mere fact of revenue sharing may inhibit economic exploration and/or
development unless the economic returns are potentially very sub-
stantial; for example, since they must share, corporations may develop
only the projects with the highest returns as opposed to projects with
nominal returns.
Another serious potential concerns limitations of mechanisms for
development. Coupling the revenue-sharing provision of 7(i) with
other mandatory revenue-disbursin. sections, no corporation conceiv-
ably will be adequately capitalized to enable it to be sole developer,
forcing it into leasing and other third-party arrangements.
(b) Views of Native corporations
While all corporations interviewed indicated that 7(i) was creating
present problems, there is clearly a split as to its importance.
State Senator John Sackett, chief executive of Doyon, Ltd., thought
that a serious oversight of ANCSA is the lack of definition of rev-
enue. The Secretary of the Interior has not attempted to resolve this
difficulty and therefore has forced corporations to enter into multiple
lawsuits. Some corporations have already spent what others consider
7(i) revenue, while other corporations have placed as much as 100






17


perl.ent of their revenues in escrow to av-oid fttu re hl,:il 1 Ntftles. Sena-
tor Sa<'kett said that lIe does not favor revenue shlarillng 7(i) du1e to tl]i
adninin-trative dillicuilties in monitoring every corporation s account-
inlg system.'
On tlhe other hand. Jerome Trigg, president of Bering Straitq Na-
tive Corp., en(ldorsed thle con,-ept of revenipe sliaring as a good tldinc
since such a mniechanism would create a network of coi mninicat ion a2nd
Iand interrelationships among the regional corporations. lie was. hlow-
ever, pessimistic but the amount of net revenues that could be sliared
becau-e revenue would be severely diminished by State taxation.

3. DEPRECIATION OF FINANCIAL COMPONENT OF ANCSA
(a) O re,'view
ANCSA sets up a fund-called Alaska Native Fund (ANF)-of
close to $1 billion from both the Federal Treasury and a 2-per,'ent
royalty on mineral leases from certain Federal and State lands. The
portion from the Federal Treasury was to be appropriated over an
11-year period. Tlhe other one-half billion is to be paid as earned from
tlhe 2-percent royalty.
To date, practically all moneys in ANF come from congressional
appropriations.
It was contemplated that this fund would be, in part, utilized for
capital investment purposes by the corporations for development of
land.
In fact, since land transfers to corporations are not yet occurring
to any meaningful degree, much corporate time and funds are being
devoted to fighting the Federal bureaucracy in an effort to secure the
land.
On the village level where the least financial resources are found,
the sheer management of village affairs, pending land transfers, is
estimated to be a $70,000 per village job.8 In addition to the manage-
ment, and legal costs adhering to an extended implementation of
ANCSA. the net worth of the settlement has. and is. being reduced.
Normal inflationary forces would make any settlement payable over a
long term worth less in purchasing power than an immediate pay-
nient. With ANCSA. this factor is complicated by the fact that the
2-percent royalty fund has not yet paid out any significant moneys.
Given the extensive cost overruns of the pipeline, and tihe delay in its
completion, substantial revenues from oil resources may still be several
years away. Several corporate lawyers estimate that the effective pay-
ment has by these above factors been reduced to a $250 to $300 million
level.
(b) YViews of Native corporatioans
Each and every village and regional corporation spoke of the enor-
mous costs-legal fees, accountants, management, and so forth-that
exist, with the major revenue source being ANF, a nonreplaceable
asset with which to meet these costs.
SA FN has made a proposal for effectuating coordination.
SVillages have several different corporate entitles, and some Federal and State funds are
obitilnable by some of these groups. In aggregate, however, there are not sufficient moneys
available to support village management.






18


B. LONG-TERM ISSUES
It is clear from the language of ANCSA's Declaration of Policy
that Congress, in setting up ANCSA, was attempting to establish a
solution without creating reservations, extended wardships, or spe-
cial permanent racial institutions. There was strong, although not
unanimous, support from the Alaska Native community for this view.
The Native position, as reflected in testimony before congressional
hearings as well as in ANF publications on ANCSA, appears in part
to be based on an evaluation of the oppressive role of the BIA in the
lower 48 reservations. Concomitant with this appears to be a strong
"self-determination" philosophy to control Native destiny, and that
any mistakes or failures would at least be their own.
There are, however, without evaluating the accuracy of Native per-
ceptions of reservations and trust status, several components of
ANCSA which could destroy the overriding purpose of ANCSA: To
recognize and compensate Native peoples now and forever for aborigi-
nal land claims. The two major provisions are taxation and alienation
of stock certificates.
1. TAXATION
ANCSA provides that undeveloped land 7 shall be nontaxable for
20 years. Presumably this 20-year reprieve contemplates that during
this time, sufficient economic development will occur to permit pay-
ment of any and all taxes. There are, however, several developing
fallacies to this reasoning. Since land transfers have been so slow,
there is a reasonable possibility that economic development-net re-
turn on investments-will not be so advanced as to permit payment of
any taxes unrelated to income production. Several other factors also
affect the corporate potential for economic success once the 20-year
protection runs out. Simply put, how realistic is it that any 12 new
corporations, often competing in the same markets-for example, sev-
eral have construction firms-will survive intact? The success rate
generally for new businesses in the United States is not assuring. At
the village level (205), the problem is made more acute by the lack of
management personnel and infrastructure needed for economic devel-
opment. A pertinent question is, therefore, whether 20 years is suffi-
cient to develop such an infrastructure.
A number of villages have selected their lands for subsistence and
isolation purposes. Any taxation of such subsistence land would force
development-perhaps economically marginal ventmres-which could
seriously disrupt the goals of subsistence and isolation. There are, in
fact, very few development schemes that do not negatively impact on
subsistence goals.
One suggestion made by several Native leaders was that, at a
minimum, nondeveloped land should remain permanently tax free;8
some others siirgested that the tax exemption period be extended to
overcome the dilatorv land transfer practice and that the extension
be based on an actual 20-year period after receipt of title.
7 1h, exemrnption does not apply to income taxes except for disbursements from ANP.
Tir', is little opposition among Natives interviewed to paying income taxes-corporate or
personal-on revenues. Some people termed It their civic duty.
1 Alnska does not currently have a Statewide land tax; however, such taxing authority
certainly exists at both the State and borough level.






2. AI, ENATI'N (F OSTIC(K (i:RTIFICATI:S
(a) Orcriitic,
Native cOr)poration stock certificates are not alienab)le for 20 years.
They may not 1)b sold, counted as ;a. financial Las-et by we.l rire, includie.1
as an asset bv IRS in (leteri111ining inherit all 'e taxes, lost for a1 tld det s,
ct ('c cria. After the 20 years rinllis out. Nat ive cor)or:ltion smo.k will be
like any otlir economic asset-allnything call happen to it.
If native people are to retain control of the lannd, they must ret ain
control of the corporations; hence( they must control tin' ,tok. Sin(e
a large corporation can be controlled by a relatively small proportion
of stock if collectively held and used, non-Natives, individually or
corporate ely, could potentially end up controlling mandated corpora-
tions set up to manage and hold a settlement exclusively for Natives.
(b) V7ew's of N"ati'e corporations
Recognition of this problem by Native leaders varies considerably.
There is, however, recognition that a potential, down-the-road prob-
leni exists. The pressure of current problems concerning land con-
veyances, however, seems to have precluded ind(e)tll analysis and
remedial thinking. Some corporate officials-mainly non- Natives-
were strongly opposed to any suggestion that the alienability of sto'k
could be permanently restricted in some manner. Corporate attorneys
at both Doevon and Bristol Bay expressed the view that stock acquired
under ANCSA was a personal asset which an individual should have
the right to sell.
Other Doyon officials were apprehensive about the potential of any
massive sale of stock in 1991. One suggestion advanced was to clhallge
the corporate structure so that each stockholder would have one (vote,
rather than voting according to the number of shares; this might
diminish the possibility of control by an outside entity based on a
small bloc of stock.
Another s1,g,:.estion advanced by several was to grant corporations
"fir-t purchase"- rights to any stock. Several problems were also raised
with this option; namely, it is unlikely that the regional corpornitions
will have sufficient "excess" capital to purcla-ie stock. Another problem
is that this "first purchao.e" option would have a limiited( effect on invol-
unmtary transfers of stock, that is, 1o.s of a-sets to the State or other
public institutions becnu':.e of application for public assistiii.c,, loss of
stock to ni':-inrr homes in exchange for admissions, et cetera.
Bering Straits Native Corp. expressed the hope that the corporation
would be so successful, both economically and as an enip)loyer of the
stnkhoeld(ers, that verv few, if any, Natives would voluntarily sell tleir
stock. Other corporate officials, with varying degrees of wishfulness,
(expre,'.sed similar view, coupling tle. succ(hss factor with a view that
lby 1991, stockholders would be so educated to the importance of stock
that it would not be voluntarily sold.
The villages were almost completely unaware of the potential prob-
lei, of stock alienability. At tlhe village level, the luxury of conteImplat-
ing future problems does not exist. It lias been a herculean effort to
move from a traditional lifestyle to the concepts and jargon of corpo-
rate America. The resources for management of village affairs are
eager9 and the assi.-4tance varies. Some corporations have provided
See Chapter IV, Section B.
77-70---6-76---4






20


their stockholders with boilerplate wills so that stock can be left to
chosen heirs.
Many villagers felt the problem of stock alienability was raised so
that many people would in fact sell or otherwise lose their stock in
1991.
Some Native organizations, particularly those not involved in day-
to-day economic management, have begun to rethink the mechanic- of
ANCSA and the stock issued pursuant to it. The stocks embody Native
heritage, a heritage which was received from ancestors, and which
should be passed on to their children. The question arises as to whether
any person receiving stock under ANSCA should be viewed as a sole
beneficiary simply because they were alive at the appropriate time. If
stockholders are viewed as sole beneficiaries, then ANCSA may be
viewed as a delayed per (apita payment not very different from pre-
vious methods of settling Indian claims.
This line of reasoning has lead some Alaska Native leaders to rethink
their prior opposition to trust status and reservations.











ChIAPTER IV. ALASKA NATIVE VILLAGES
Quite clearly, Alaska Natives were governing themselves for thou-
sands of years prior to their contact with the Russian-Anmrican colm-
pany or the U.S. Government. Native village governments organized
along western lines occurred with application of the Indian Reorgani-
zation Act of 1934 (IRA) as amended by the act of May 1, 1936.
The first step in the process of formally organizing Alaska Natives
came prior to the application of the IRA with the passage of tli'e NXa-
tive Townsite Act of 1926 which authorized the Secretary of the In-
terior to issue a patent to a trustee for nonmineral public lands claimed
and occupied by Natives as a town or village site. The trustee could in
turn convey by restricted deeds the village or individual lot to adult
Natives. The act further authorized the surveying of the villages into
lots, blocks, and streets.
The act of May 1, 1936, was passed to remedy the failure of the IRA
to extend the incorporation and credit villages to Alaska, but more
importantly to authorize an entity or organization which was more
suited to Alaska Natives. Section 7 of the act of May 1, 1936 provided
that:
Groups of Indians in Alaska not heretofore recognized as bands or tribes but
having a common bond of occupation, or association, or residents within a well-
defined neighborhood community or rural district, be organized to adopt conu-titu-
tions and bylaws and to receive charters of incorporation . .
Three kinds of organizations were then possible under the IRA as
applied to Alaska: (1) Native villages organized for municipal pur-
poses; (2) groups organized solely for business purposes; and (3)
groups not comprising all the residents of the locality, but having a
common bond of occupation, that is, fishermen's cooperative. Of 215
recognized Native villages, 70 adopted the provisions of the IRA while
145 retained traditional modes.
Pursuant to Public Law 280, as amended to include Alaska (18
U.S.C. 1162) the newly formed State of Alaska assumed criminal and
civil jurisdiction-subject to specific exemptions-over Native com-
munities.
Beginning in 1963, a Federal policy emerged which had its roots in
territorial legislation such as the Indian Village Act and the Munici-
pal Incorporation Act2 which encouraged Native villages to incor-
porate as cities under Alaskan law. In communities which had in-
corporated, the IRA constitution and bylaws were revised and incor-
porated in the city charter. The city council became the sole political
entity for the community. The IRA council did, however, continue to
exist to operate and control Federal financed business enterprises or
Federal services. By 1973, 84 Native villages had organized as Alaskan
municipalities.
1Cps ion Law of Alaska for 1915, eb. 11; amended Cession Laws of Alnska for 1917,
ch. 25: rpnpalpd 1929.
SCompiled Laws of Alaska for 1933, eh. 44.
(21)





22


As a result, there are basically three types of governments under
which Native villages operate in Alaska today. They are: (1) State-
incorporated municipalities; 3 (2) IRA councils; 4 and (3) traditional
(non-IRA).5

A. POTENTIAL FOR LoSS OF NATIVE CONTROL
As previously mentioned, approximately 84 Native villages have in-
corporated as either first-, second-, third-, or fourth-class cities under
State law. The class of city appears to be determined by the number
of inhabitants needed to incorporate. For example, the first-class city
requires at least 400 permanent inhabitants and at least 100 of the
qualified voters must sign the incorporation petition. A second-class
city requires at least 50 permanent inhabitants and at least. 15 of the
qualified voters must sign the incorporation petition. The only real
distinction between the classes appears between the first three, and the
fourth class. Only a fourth-class city may not levy property taxes and
special assessments and is not responsible for the operation and main-
tenance of a local school. Though a fourth-class city does not have the
power to levy a property tax, at the time of incorporation, if the
people so decide they can place on their ballot whether or not they
wish to impo-e a sales tax. A sales t'x cmnot exceed 3 percent. The
,sales tax is the only revenue a fourth-class city has to defray the ex-
pense of its village government.
Once a Native village incorporates as a unit of local government
of the State there are no safeguards that it will remain a Native-con-
trolled village since changing a purely tribal government to a munici-
pal corporation means that 14th amendment equal protection applies
and nonnatives cannot be excluded from the political process. Non-
natives may vote. run for, and hold office within the community. Al-
though for many Native villages of the interior of Alaska, this is only
a problem in theory, the Native communities of southeast Alaska are
facing this problem of loss of control to nonnatives today. Saxmon, a
Native villa ge and second-class city, is feeling ihe growing pains of the
city of Ketchikan. On numerous occasions, Ke(tchikan has attempted
to annex Saxmon. The Ketchikan Gateway Borough (similar to a
comity governmental unit) has imposed its property tax and zoning
ordinances on the nonrestricted lots in the city limits of Saxmon. The
traditionally Native fishing village of Hoonah. a first-class city, now
has 200 nonnative residents out of a total population of 950. Three of
the six councilmen are nonnative. If Hoonah partitions into residential
lots, the 1,280 acrps it is to receive from the ANCSA village corpora-
tion pursuant to section 14(c) (3) it may have to, under the same equal
protection notions, be made available to both Natives and nonnatives.
With the great influx of nonnatives into the State, especially in the
southeast, Native villages will be hard pressed to maintain control of
their communities.

B. IRA AND TRADITIONAL NATIVE GOVERNMENTS
The great majority of Native villages operate either under the IRA
or f-nme traditional form of government. The future of these govern-
SSaxrnon. Iydaburg. Kake, Hoonah, Fort Yukon, Ruby, Golovin, and Unalkaleet fall Into
this fatornry.
4 Klukwan.
5 Arctic VIllaigp.






23


Iiih.ts IS ~unclc:iar with the p:l.-saivr of AN('SA. There a1i' lno AN( SA
')rovi.io. which purlporttoI to fre iliL to i'norplorate ::s S1.ate
mullnlicipalitie.s; howe ver, fli aCt's clr illitelit W\\.as not to esilI.isl any
"pt'rI alel it rI'ially iin d i titutioi.-." FornIz r .,s,.vatiols I TOe
revokedi and 11iddi allot 1 II'melts stat ute- rpcJealeld.
What is clear al)olt thie' impact of the act at this pIint in expl'rien,,
is that Native villa es will hl:ve se.verliy v ,t reictevd :a6il1ity to e.x,,i-,
pjowles of selIf-govenIlnt. IBeca ,': seof the prvaIsive impa'11t ,f Public
La\W (), tliey are p'r'esently 'xcrisiL no law enforceiii it or jldici;Il1
lowers. It i- pre.-e'ntlv ii i,:r, ;Ithouilhi 1.rarlv a d ,od art tltl i t n
can b1 iiiald tliat, Native vill12eCs are "IJ1iau1 Country* itdper ti,.
depelidenlt co)minity cmijipouelt of thie coiic(t't, d wheIter Sriunitet
1N)ill 2l0 (Iiprovemnciit of Indian Law xEnfor, ,eiiit) wvoulld apply to
Alaska Native villa-,i's if :Ado)pted into la:w. In a l, l'er to ,Sidl(ey
I"rcti':i1i. of the Oflice of Mai,.i,.e1nent and( Bu(dg(t, (litetl April ;,
]976, OlWice of tlei Prt-:i l'(,!t, the (Goveror of Alaska voicd lii:- con-
cern that Alav-ka Native vill ag.s not Iw inclUled1 within the (.)VeIa,,e
of tliv bill. It is the State's position that the ret r',-ession of exclusive
Statv criminal and civil jurisdiic ion haclik to the Federal ("overnmTent
and Native villalres would bO contr ary to the act's expr)r-sed pnrpo-e
of not cre:atingr ally peratiaent raciallyV defl ef d institutions. In many
area- of Al.sk-Ia, this nn.ans waiting invest iated-i effect, no law enfo vlement. Unlike incorpora ied citit's
of A:laska which have State law enforcement authority, a:id therefore
can se'.,k LEAA ftlids. Native villa.,.es cannot. In actua.:ulity, the i.cor-
potated cities visitetl fared only a little better. Four of the eillit
1n11icipalities visited lad no law enforcement personnel.
Nativ, villa Icres are also N: ndi'capped because of a lack of revenue to
suppl)ort their g(overnmenltal operations. Both Klukwa, n and Airctic
Vibllae do niiot have e-uficienit income, although both utilized CETA
funding, to salary any village council positions. The incorporated
iunuilcipalities do not fare much better. Five of tlhe eig-ht cities could
not salary their mayor or council. Almost every city nianager, city
clerk, and police officer is flinanc. d within CETA funds.
(Ienerati nIg revenue wVill always b)e difficult given the limited size of
Native villa: .es. A case in point is the remote Indian counmuliity of
Arctic Village. Arctic Village was. part of the 1.3 million acre Venitie
's''-,rv:tion which was revoked by ANCSA. Pursiiant, to secttion
19(1)) of the act, the village opted for fee title to both the surface and
suii -iirfatc estate of the former rcs,,r\at ion rather than select only
surface estate lands under the provisions of the ;:ct. Title willii not
p1s, to the village council but, rather to the village corporation. Any
revenues potential would( belong) to the village corporation and tlit
villa,.e council c.iannot avail it-elIf of amy income realized.
Althoull'. it would appear IRA awld tratlitional Native villaLVs
carll prevent non-Xative control over their governing institutioi-, it
is unclear whether they can prevent non-Natives frmil livingr in their
co')nmuunitv. If the villaire co* nmil dlet'idlt- to pa rcel out bits of 14(c) (3)
,] lds for residential lots. like the incorporated villa,.e, it may not be
able to restrict its sales to only Natives.






24


C. INDIAN SELF-DETERMINATION ACT
The current definition of "Indian Tribe" found in section 4(b)
of the Indian Self-Determination Act includes:
any Indian tribe, band, nation, or other organized group or community,
including any Alaskan Native village or regional or village corporation as defined
or established pursuant to the ANCSA (85 Stat. 688) which is recognized as
eligible for the special programs provided by the United States to Indians because
of their status as Indians.
As applied to Alaska, definition would appear to include: (1) 145
traditional village councils; (2) 70 Native villages organized under
the IRA; (3) Tlingit-Haida Central Council (a tribe established
pursuant to a Federal statute) and perhaps other groups cognizable
as a tribe; (4) 255 Native villages defined to establish pursuant to
ANCSA; (5) 210 Native village corporations; and (6) 12 regional
corporations.
Congress apparently was trying to deal with the "tribal" uniqueness
of Alaskan Native institutions. Unfortunately, it created the problem
of recognizing anywhere from one to three for each village and making
it uncertain whether the regional nonprofit associations are also rec-
ognized as tribes.
As a practical matter, the village and regional profitmaking cor-
porations probably would not avail themselves of the Self-Determina-
tion Act, because they must devote their full attention and energy to
profitmaking ventures. All the regional and village corporations inter-
viewed indicated they were not interested in delivering contracted
services to villages with their regions.
It is unclear from the act whether native Villages who have incor-
porated under State law and no longer have an active IRA council
are "Indian tribes" with the meaning of the act. Presently, the BIA
has included those organizations in the grant section of the act. It
would appear that a city council is not eligible for the special programs
provided by the United States since they are merely a unit of local
government of the State.
If the nonprofit Native associations are included within the defini-
tion of Indian tribe, the real controversy centers on who should receive
or be eligible for the grant section and who should be eligible to
contract.
0 Data compiled from material submitted by the BIA for fiscal year 1975.












CHAPTER V. FINDINGS AND RECOMMENDATIONS
FINDINGS
1. The Department of the Interior has not performed at siifi'ientlv
high levels of effectiveness in tlhe. implementation of the Alaskani
Native Claims Act.
(a) A comparatively insignificant portion of the land to lbe
formally conveyed to Native corporation has in fact been con-
veved.
(b) Rather than acting as advocate for Native needs, which it
should pursuant to its continued legal-mnoral obligation to de-
pendent native communities, it hlas consistently taken position ad-
verse, particularly with respect to easements, to Native interests.
2. The long-term ability of Native corporations to be economically
successful is undercutt by the significant delay in transfers of land and
the severe economic impact of inflation on the financial component of
the settlement.
3. The long-term ability of Natives to continue to control their land
and corporation will be seriously undercut by their removal in 1091
of the exemption against taxation and the exemption again-t the alien-
ability of Native-hleld ANCSA corporation stock.
4. The status of Native villages and their place within the jurisdlic-
tional structure is extremely complicated by the application of con-
cepts developed for the lower 48 which may have little applicability to
the Alaskan situation.
(a) The grants and contracting provisions of Public Law n3_
as presently structured are not readily applicable to meet particu-
lar Alaska Native situations, which do vary region to reorion.
(b) '[any Alaskan Native villages under existing- funding
mechanisms are economically hard pressed to provide even basic
governmental services.

RECO3 MMENDATIONS
1. The Department of the Interior should allocate sufficient re-
sources to its Bureau of Land Management so that all interim con-
ve yances are complete by 19.1.
(a) In the event that the Department of tlhe Interior does not
have sufficient resources to accomplish thle above, it should forth-
with seek the necessary authorizations and appropriations from
Congress.
(b) Congress should pass all reasonable requests of the Depart-
ment of the Interior to accomplish this task.
(c) Congress should provide for increasing its oversight func-
tions over the Department of tlhe Interior respect to the imple-
mentation of the Alaskan Native Claims Act.


(25)






26


(d) Where Alaska Natives have had to resort to litigation to
seire from the Department of the Interior proper compliance
with ANCSA and are successful, attorneys" fees against the
1United States should be provided.
2. The easement provision of ANCSA should be repealed.
(a) Repeal would mean that easements would be obtainable
through the normal proceedings and legal principles applicable.
(b) In the interim, the Secretary of the Interior should grant
interim conveyance, leaving the easement determination be settled
separately either by negotiation or, failing that, by court determi-
nations.
3. ANCSA should be amended so that the 20-yeari exemption from
taxation runs from the conveyance of fee simple title to all ANCSA
lands.
4. ANCSA should be amended so that all undeveloped lands-lands
producing noncommercial income-remain permanently tax exempt.
5. Congress should establish in 1981 a Special Congressional Com-
mission to determine whether ANCSA will assure the future viability
of Alaska Native communities, specifically considering such options
as:
(a) Permanent nonalienability of Native Corporation stook.
(b) The establishment or reestablishment of reservation status.
6. Public Law 638 should be amended so that in Alaska:
(a) Self-determination grants should go to Native village gov-
ernments, either IRA, traditional, or municipal.
(6) If both an IRA Council and a municipal government co-
exist, the IRA, governments' right should be prior to that of the
municipal government; the IRA government can, however, waive
its right in favor of the municipal government.
(c) Regional nonprofit Native corporations should be eligible
to contract under 638, subject to preemption by individual Native
villages to the extent of their proportionate share of the total
contracting funds available to the region.
(d) Any recognized regional tribal government should be ex-
clusively eligible for both self-determination grant funds, and
contracting.














APPI'E'NDIX A


LONG-TERM PROSI'ECTS FOR NATIVE OWNI.K'SHIP ANDM) CONTROL OF LANDS Co.-
VEYED UNDER TUE ALASKA NATIVE CLAIMS SETTLEMENT ACT

I
When passed by Congress in late 1971, the Alaska Native (Cltiins Swttflirnieit
Act was hailed biy many as "the s lies ,p.,ssilile resv-ilution of tihe land claims is.,i."
Stephen IIaycox, Professor of Aimericall IIi.story at thle Iniver.ity of Al;.,ska,
Ancihorage, called it a "visi, oiary kicecV of legislationn" Many, both Naltivi and
non-Native, were also aware that the act \vould profolndly afTfect all Ala.k;i-.
For soniv it would alter the nature of their relatimiship to the land, their attitudes
toward it, and their freedom to use it. The laind itself \\a, the focm us of tlhe
struggle. Villagers feared that land would slip out of Native hands in dis-
cussions amniong (Congressuen unfamiiliar witlh Al:iska or Alaskan Natives. MIais-
sive efforts were made to inform Conlgr'sszuenii of the nevds of Native pe,,plis.. fiir
land-not just casli, but land upon which Old ways could be maintaiiined, ald
where development could be carefully planned and encouraged so that tlhe
economic hardships endured by Native people could be .aserd by a steady and
continuing cash flow.
The result of that effort was an acnet which awarded 40.000.000 acres of land
and $!K2.5 million dollars to Native village and regional corporations in Alaska.
Before tlhe act was passed tlhe danger was great that Native Alaskans would
lose all their land to white encroachments. Nothing in thie history of early
Native/white contacts would sqifteni that perspective. With passage of the act,
danger to Native land has shifted. Now five years into the settlement era, other
threats to Native laud are emerging. Some stemin from ambiguities a-in(l complexi-
ties in the law itself. Others stem from arbitrary regulations established by
the various bureaucracies involved in implementing the act. Still others lie in
the human fallibility and foibles of Native leaders themselves.
Whatever the source of threat, the jpossilbility that land apparently awarded
to Natives under the act will never really become theirs, or will soon pass into
non-Native hands, is very real. This paper seeks to define some of those threats,
and assess future problems and prospects for Alaska Natives and their land.

II. THE SETTLEMENT ACT
In sum, the act provides that 12 regional and 224 (approximately) village
corporations be established to select, own, and control 40 million acres of land.
All eligible Natives were to become stockholders in such corporations. The
Native Allotment Act, existing reserves, and all other claims to Native title
were extinguished. The land would be held by the corporation in "fee simple."
a phrase which comes from English land law of the late Middle Ages. It provides
for absolute ownership and includes the right of the owner to sell the land to
anyone or to allew it to pass into heirship. Fee simple title is distinguished
from other titles, such as "entail" or "fee tail," which restrict ability to sell
or limit inheritance rights. (Washburn, WVilcomb, Red Man's LIand-Whitc Man's
Lair. Charles Scribners' Sons. New York. 1971, p. 62.)
To compensate for the lands lost in such extinauishment. $462.5 million was
to be paid over an 11 year period. An additional $500 million would be paid
from state and federal royalties for the development of certain mineral resources.
To facilitate the cash payment the act created an Alaska Native Fund in the
U.S. Treasury. Payments from the Native Fund would be made to regional cor-
porations which would retain part of the funds and pay prescribed amounts to
Individuals and village corporations. The amount of money paid each regional
corporation is based upon its proportion of enrolled Natives to the total number
enrolled. Villages receive an amount lbnsed on their proportion of stockholders
to the total stockholders in the region. During the first five years of imiplementa-
(27)
77-7nr -?--7 r5









tion the regional corporations will pass through 10% of all receipts to stock-
holders and 45% to village corporations. In following years 50% of receipts
will pass to villages and "at large" stockholders (those having no village
enrollment).
Some additional stipulations of interest include:
1. Until 1976 all village annual budgets must be approved by the regional
corporations.
2. Until 1981 all villages must seek the advice of the regional corporations
on all land transactions.
3. In 1991 all shares issued as implementation of the act are cancelled
land can be replaced with conventional ownership shares.
4. In 1991 a twenty year exempl)tion from payment of taxes on undeveloped
land expires and all land within a tax jurisdiction may be taxed.
5. Regional corporations may require villages and at-large stockholders to
participate in joint ventures.
6. Rt.gional corl)orations own all sub-surface rights to Native lands includ-
inr those under village selections. Villages own only surface rights.
7. Regional corporations cannot explore or develop resources under village
entitlements without village corporation permission.
8. Regional corporations must select land after village selections have
been completed and must checker-board their choices, not selecting con-
tiguou.i townships.
9. Every village relates to a regional corporation.
Though all twenty-two sections of the act are too complex and lengthy to
detail here, several provisions are critical to any discussion of threats to Native
lands in the future, for some threats arise from within the act itself. These
portions of the act will be discussed in the following section.

III. CRITICAL PROVISIONS OF THE ACT

The Congress evidently undertook the settlement of Alaska's land claims with
good intention that Native people not be harmed in the process: Section 2(b)
stipulates that: "the settlement should be accomplished rapidly, with certainty,
in conformity with the real economic and social needs of Natives, without litiga-
tion, with maximum participation by Natives in decisions affecting their rights
and property, without establishing any permanent racially defined institutions,
rights, privileges, or obligations, without creating a reservation system or lengthy
wardship or trusteeship, and without adding to the categories of property and
institutions enjoying special tax privileges or to the legislation establishing
special relationships between the United States Government and the State of
Alaska."
However, several ambiguities in the act, and bureaucratic regulations estab-
lished subsequent to the act's passage, inhibit such an amicable process and its
well-intentioned result.
Two sections in particular need to be spelled out.
Section 7(i) and section 21(d) are especially troublesome; the former for
its ambiguity, the latter because of the threat it imposes for the future.
Section 7(i) provides:
"Seventy per centum of all revenues received by each Regional Corporation
from the timber resources and subsurface estate patented to it pursuant to this
Act shall be divided annually to the Regional Corporation among all twelve
Rezional Corporations organized pursuant to this section according to the
number of Natives enrolled in each region pursuant to section 5. The provisions
of this subsection shall not apply to the thirteenth Regional Corporation if
organized pursuant to subsection (c) hereof.
Though speaking of joint regional corporation ventures, the ambiguities of
7(i) make the statement equally applicable to the regions and their own member
villa ge .
Finally the cost of 7(i) to the corporations is destructive. A Bristol Bay
Native Corporation spolke in June. 1976, that though admirable in concept. "Legal and accounting fees
arisin-, from discord over the section's interpretation and application are con-
s.minn an aftoniishing portion of the cash flow of all twelve regional
corporationss"
Section 21(d) reads:
"Real property interests. conveyed, pursuant to this Act, to a Native indi-
viduil, Native group, or Village or Regional Corporation which are not developed







or leased to third iartis, .shall lie txeiie pt from State indl I,,cal r-;il pripert.
taxes for a peritl od f twventy years a,'tetr the late of .iiiii'ieii if thi-, Ac:"
Pruitided. That muuicilii lt(xt., local rtAl lproperty tlaxt,, or i,,'i (.--.L.als
may be imposed upon loe.-cd or- deiveloped real pIroiperly %vit iin the Jiridic'tii(,n
of any governmi.intatl lnit under the laws of tl a State. Pir,,% idthl furlii r, IlThat
easemuicts., rights-o)f-waiy, lIast-holds., and( similar ijtere ts-. ill s.uch rv.tl prip,, rty
11ma:y V11 t axed in accoirtIdin'ee % ith Slatre or loc:il law. All reniit.,, i. alti., pntlitii,
anid other retvenues inr pi"t'.eds (lerivedI from .sii taxable wlhen reveivedl b. a nIuL-Native indliviihial uir corpor.ltion."
Ili expllriing the historic rmuits Iif tlix et\iiiJlti,,II i i In Idianli l:1til 1 ef Il iIIIt-
Monrroe Pi]rice points out that :
"The tini' required for exeitil)tiiit to wIrki is T.riti'i;l. 'lI' dlifliriilty with
exempi(tions liistorically has lht.L their brvity. W\itlmti t s.Ii' tax ( .x *i.X jtiifi, an
allotimeit nf ia td might b' I del Aicicr.l."' ( Muminie Jr', i Prlic,, An i .\ iii,.iit(n of
Stcti(ii 21(d) ,f tih' A.NCSA, FSITI'I'C, li7;, p;ig 1.)
The urgency of cornvcyitng interiniii title to Nattiv corpnratii,,is is- rriti-a!
not simtiply lra i-pe it is re uiiired li.' C ,i'n rc.'.s nin lir S rtlin 2(b), lInt I-,, :,(..e
the ability of Native c(irpI rati(iis to rt:ain o\VnIrv lIipi anid co-I I ttri of tli.ih r 1 -mi
in tli fiiture mn:y lbi determiineil by Ih j,.'-ccd within wh1ih they van r',-.ivi' till'i
and begin those developimenits whvlicl will enablle themi to build ca..h re.s..iii'. to
nmett tlie tax liabilities that will lie theirs in 19\91. This inatter will lie dki.c:i...ed
further in the next -ection. "Threat, to Nativ' I. L-it-; in t(lie FIttlire."
The intent i,,n of (2'r nress to enabide si'epd(ly imtpl',ment.ition 'if the :acet i.: nndle
clear in Sectiin 14 which detls withi cnveya.ine. Several paraIgraphs in Se.ti',n
14 begin with the word immediatelyel"
Sect ion 14(a) reAds in part:
"Immediately after electintin by a village corIporation . the Se'cretafry shall
issiie to tlhe village corporattion a patent .
and in 14(b)
"Inmmediately after s.lecti(in by any Native village for a Native village listed
In section 16, the Secretary .i-all . .
and again in 14(e) the nece-sity for prompt conveyance is stre-sed;
"Immediately after selection by a regional corporation, the Secretary shall
convey . title"
Such revenue sharing, evidently intended to encourage cooperation in an
effort to work for the mutual benefit of all corporations, has instead encouraged
competition and .secretiveness between corporations.
"Having laid down this provision for revenue sharing, the Con-ress failed to
pursue the details of implementation, i.e. gross or net revenues, allowalble
expenses if net revenue is to be shared, accounting procedures, and so on."
(Olson, Dean, "Native Land and Capital."Ahtna, Inc., December, 1974, p. 6).
Indeed, according to one regional corporation president, tlhe failure to dleter-
mine wh,.at are considered to be "sub-surface resource." pIresents its own kindI of
problem. Gravel is one such reource, but whether it is to be con,,ilered a -urfaice
resource belonging to village corporations, or a sub-surface resource belonging
to the region is in dispute. According to attorneys for Eklutna Corpora'tion.
"Similar qlis.tions could present themselves with reozard to tolp-,il, sand,
quarrystone. rock and other inaterial which are generally in large part buried.
but yet which often tinimes do form thse ;urface it-elf. Another area of dispute
would concern ground water amd strip-minealble coal."
Determinations such as this are time consuming, cau-se divisiven,-q amiomg
Native peoples, and slow the ability of either village or regimal corporations
to develop much needed capital asets. As Ols.on points out,
"The opportunity of presenting a united front during negotiations with energy
and extractive industry repre.entative.-, lias been lo4t. TlIe opportunity f-or
jointly established land-use goals and end-use objctives, has simtilirly been
foregone." (Ibid.)
The sad fact is that conveyances are not bein-z made spleedlily at -ill. Five years
after pist..e of the act only 1/ of 1' of thr, land 1as been l 'mIvyel. As of
June 10, 1976. Calista Corlporatlin, one of the largest involved in the sett'ltheent.
had received no patents or interim c'litveyanrcos. Neither lhad any of it.z 5(; vill.ige
corporations. Indeed the delays in conveyance are -;uising rave cnnreri 1,j,1(1I,
all Native peoples, for delany poe serioiis threats to Alnika Natives' abilitv to
hold on to their land in tle future.
A further threat to Native land ownMerfiilp lies in application of Seection 17( 1)
which will result in immediate loss of some Native land for public use as eae-
ments.







30

Section 17(b) reads:
"(1) The Planning Coimmission shall identify public easements across lands
selected by Village Corporations and the Regional Corporations and at periodic
points along the courses of major waterways which are reasonably necessary to
guarantee use and access for recreation, hunting, tra nsportation, utilities, docks,
and such other public uses as the Planning Commission determines to be
important.
"(2) In identifying public easements the Planning Commission shall consult
with appropriate State and Federal agencies, shall review proposed transpor-
tation plans, and shall receive and review statements and recommendations from
interested organizations and individuals. on the need for and proposed location
of public easnements: Provided, That any valid existing right recognized by this
Act shall continue to have whatever right of access as is now provided for under
existing, law and this subsection shall not operate in any way to diminish or
limit such right of access.
"(3) Prior to granting any patent under this Act to the Village Corporation
and Regional Corporations, the Secretary shall consult with the State and the
PL]mnning Commission and shall reserve such public easements as hlie deter-
mines are necessary."
The import of this provision and some dismaying events since passage of the
act, will be outlined in Part IV, following.

IV. THREATS TO NATIVE LANDS IN THE FUTURE
Though threats to Native lands seem to be coming from several quarters, they
generally fall into two major categories: (1) The easement requirement and,
(2) the pressure on both village and regional corporations to acquire cash. A third
important threat stems from the lack of corporate experience and trained lead-
ership available in rural Alaska.
1. Easements
The law provides for the L.U.P.C. to identify public easements across Native
land and "at periodic points along the courses of major waterways." (See page 9
of this paper for full quotation of section 17(b)). In making its determination,
the commission is required to consult with the appropriate state and federal
agencies. Such easements would allow public use of the selected areas and in-
hibit Native development of resources.
Several difficulties arise from the failure of Congress to be more specific in
this section. How wide should such easements be? What is a "major waterway?"
How many are necessary? There is obvious room for disagreement on these and
other questions. Robert D. Arnold, editor of Alaska Native Land Claims, de-
scribes an early problem with the ambiguities of this section. In the course of
"consulting with appropriate" federal agencies the Land Use Planning Commis-
sion sought out the Bureau of Land Management.
"When, in early 1975, the Bureau of Land Management issued its preliminary
system for transportation and utility corridors-a form of easements-Natives
were shocked. For corridors alone the federal agency was proposing more than
11,000 miles of easenments, many crossing Native lands." (Arnold, Robert D.,
Alaska Native Land Claims, Alaska Native Foundation, Anchorage, 1976. Pages
269,270.)
In addition, rather than periodic access points provided along streams the
Bureau proposed easements along the entire coast and along both shores of all
rivers in the state.
The result of such a taking of Native land for public use would entail a massive
loss of land for regional and village corporations. Calista Corporation in South-
wostrn Alaska. estimates that 30%-40% of its lands will be affected by navi-
gable w:,iter.s easements, yet no definition of "navigable" li:s yet been provided.
E.stiimates of amounts of land involved in easements are still unclear, but they
range from 5 to 11.5 millions of acres. Arnold quotes Roger Lang. former Presi-
dent of Alaska Federation of Natives, testifying at hearings on the subject.
"Cogrless clearly did not intend in the Act to grant Natives a right to select
lands from the public domain and then permit federal agencies to take the land
back by calling their uses 'easements.' (Ibid.)
Yet William L. IIensley, a member of the Board of Directors of NANA
Corporations s ys:
"It is bec.,ming ever more apparent that the provisions of the Settlement Act
for only limited easements on the lands are being greatly expanded by the






31

Department of Interior aniid are being iisedl by. the De.parmlient to 0(effi .iely
deprive the Native Corporations (of many of the riglits ot tin.- land f',,r %hichl tli,.y
fought ,o( ling and hiard." (IIeisl.ey, Williain L., Testimliny before S.N.It .in-
mitte. oll IInteri)r alnd Insular Affairs, Juiin, 1971.)
Without sill sta ntial Native participation tlie f.ear is that BALM *.:-i.:-ni it
dievisinls will bIe mad l(c iy caprice, 4,1 thie I)isis of factors 1inreilate(d ti h1,. nl,-rits
of the isuties, in response to p ilitical )pre.-.,ure, o)r Iorstiional iclina'li,, ,. SirwIe
some BLM pers.,innel .inl dedicatted to the p,.-itiEI tliat ht.h S'.t lOeniet. A't wvat
really a muistALke anyway, the latter ibais for deci.io n in;iking <'-,iild i'-a ii
disaster.
Coll vey. lict' (of lanl to Nativs now re'q|uires i(dentifi.atimin of e:.seevnt.r- t1y ani
Easement Task Force which is within the Burcau i f Land Managemienjt. Clearly
such a ta-k force is ginig to seek to have its o\vn sy.steis.- of f;i.-tillle.s adpli ed.
Its aliility to make easeuen.lt ideIt ifications p)rior to coinvi,. an ie f,,rei.,des l,",1g
delays in thle c('IlVey.LICe )rcess-a Practi-e which may aRLVe disa.strous con-
stlience's. so mReu( of which are described below.
Th(ough secti,,n 2(b) stipulates that "the settlement should I aco.oi1l i i-Lhed
rapidly . wiith fma'inminun participution of Nauic, .v in tc(''i.ji,,,. affv clti,,f their
rightl.y and proicrty . ." inany Native pIeliple feel like a Yupik Es.kimzno who) told
the Bureau (,f Land Management in a public hearing. "I feel like I'm jut wastinRg
my breath." (Test imonies siloken by Western Ala.,kans to the BLM, January 3i,
1975. Bethel. Ala.ska.) Bill Morgan. Eskimo. said
"Look at. tlhe cuiintry. Fir.t you're gtoimg to take the land away that wxe alrekddy
selected. And we selected it ILeCaullue we wanted that land-Well sure th y %v%,i t
an easement. They're going to ease us right out of our land." (Ibid., page 3).
The fear that easements will lie planned without Native pa rticilpation :,re v,ry
real. Speaking fr(mn past experience and present realities, David Friday said:
"The BLM has 4iver-:teiped its authority . Alaskan Natives have not
been .cosulted with this program from the beginning . My people' kn))w
that plans must be made for Ala..ka's future. But my Peolile do) not -ee tlihese
pIlans take place with their knowlfldge." (Ibid. p. 14).
In addition to the initial easements for trails, roads, recreational access, nmid
other public uses, the Secretary has now published a second order requiring
"floating." utility corridors for future ute in extracting energy resources. The-
corridors are as yett unidentified and cast a cloud on the title sinei. BLM can
come in 1t S omlh' future date and designate a "utility" or "reoire.," c(-.rridir.
With this se((fnd leasement order the Secretary has gone far beyond his authority
and against the intent of Congre-s.
As William L. IIonsley pointed out
0" after delaying more than four years before issuing these p-licy
guidelines, it issued them in the form of Secretarial orders, rather than rhro,,ah
the pr,.ee, of pIromulgating regulations, thereby virtually eliminating the
Natives' opportunity to have input into the process." (HIen-ley. Ibid.)
Clearly ea-ement- will seriously reduce Native land options. If unidentified
easements. ar, permitted, then no land title can be clearly transferred. Sale of
bInd. lease, for dev-loempnt, and other land nii-e options will Ibe jo,,pardizrId.
If some easemnents are entirely withdrawn from Native selecti,-ons ths-n Native
land holing, in fee simile title could be reduced to as little as "2:.5. million acres
rather than the 4) mili!',n C,'ng-re.-s intended.
2. Prc!ss're to A'-quirc Ci.4h
There art, a variety of pres-ureq upon loth regional and village corporation,
to acquire cash. The-e range from the desire "to meet real or irnmain,-irl n-ed-."
as one regional coirporatiion executive put it. to the need for cash to meet future
tax liabilitie,, annd the need for dividends. Delay in acquiring land for dlovel,,p-
ment lend, its-elf to financial deterioration (lldue to inflation. Slow conveyance- of
lands hell's inloIlion .iat up fnids. Tliough iinot all corp(.rati(ins are pre-ently
within taxing jurisdictions, nearly hi:lf have some land liable for tax putr-
poses. S(ome have all their land in taxable areas, souie a-'pr'ixim.itely half,
others similler amounts. But all corporaitons face the likelihood oft tn' atao;i.
Already one legislator lias lipr,1)osed a statewide property tax on all lanls not
already taxable. At least rine boriugh has ,limeun to expand( its oniundnari,. to
include lar.or amounts of Native land within its borders. Such expCni n-rin ,f
taxaIle a reas there ntviis every rei' in.
Therefore, of all thl,, pres-ures to acquire cash, pI(rhal)- the inc,t dev ':vti:i
and fearsome is tli, ta.rittion that 1,1i'1ms in 1.i1Il when tle twenty yvi-ar ex(. i', in







32


ilids. or on land wJhici is developed or improved prior to the exeinption deadline.
In order to ineel their tax obligations, regional and vill:ue corporations need
to have t-lear title to the land so tlhiat its assets can be developed to build cash
resernke. The delays in con(veyance by an apparently reluctant BLM put cor-
w)rationis fa'c'd with taxes into a difficult posiil(mi. If delayed too long the
land cannot be developed in time to generate the income to pIiy the taxes.
The cwaise of the delay se(ins clear to mniany Native leaders. As a spokesman for
the Bristol Bay Native Corporation points out:
"The proxi-iate cause of delay is the set of incredibly cumbersome methods
employed by Interior to identify and preserve non-Native interests in Native
lands. The Rube Goldberg contraption they ii-e to put . .ease,,m(nts into title
dliirl'niints is a good example . If everything is done within the deadlines,
if the documents go into process at one agency the day they come out of . .
the prior agency, and if there are no aggrieved parties (or if aggrieved Natives
w. ive their appeal rights) the easement reservaiton process takes half a year.
"As a result to these methods, the Natives are paying a tremendous price for
the protection of non-Native interests." (Alaska Native Mainagemlent Report
June 15, 1976, page 3).
IHe also descrilies the hardship such delays invoke:
1'We will have to generate cashflow as quickly as we can if we are to meet
'the tax burdens and corporate takeover vulnerability that will come in 1991..."
(Ibid.)
The demands on time, attorney fees, and energy caused by BLM intransigence
are great. Roy Huhndorf, President of Cook Inlet Region says simply that
BLM is "foot-dragging." Their "capacity to drain us of energy is awe-inspiring."
Ile believes that Congress gauged the economic environment of Alaska too posi-
tively when thinking that Natives could move into the economic mainstream.
"The end of tax exemption is too short," he says, "and other deadlines are
too."
As a result of the ambiguities of the act and the delays of federal agencies,
Huhndorf testified in Congressional Oversight Committee hearings in June
.of 1976. th at:
"'Each Native corporation is adrift in a sea of litigation.
"The Department of Interior is often unable to speak in a clear and decisive
way . .
"Our leadership is being drained . .
"Tensions within the Department-between agencies under the jurisdiction
of the Secretary-lead to mistrust, hesitancy and failure swiftly to impl)lement
the act.
"We are being triply disadvantaged by the failure of the Secretary to convey
lands to Native villages "immediately" . Inflation is eating away at our
settlement. The grace period from state and local taxation has been sorely
depleted. And our leadership is being diverted from economic development by
,disputes over awesomely hostile interpretations of poorly drafted public land
orders and Secretarial regulations."
Dick Jansen of Chugach Native Corporation agrees with the above assess-
ment of the effect of delays in conveyance. He believes the delays will "negate
the twenty year moratorium" because there will be "a very short time between
receiving title to the land and taxation." As another executive put it, "the clock
is running out."
Indeed, Bristol Bay Corporation testified in June 1976, before the Con-
gressional Oversight Committee that because of such delays their corporation
will lose in excess of one million dollars on a single project. Phillips Petroleum
was delayed a year in carrying out planned exploratory work because the cor-
poration had not title to the property where the work was to take place. There
were rule changes; there were no typists available, the corporation executives
were told while the delays went on.
Other p1res-ures to acquire cash include shareholder pressure to pursue a
corporate path that will increase the value of corporate stock. Since some of
the regions are a step removed from the subsistence life styles that still charac-
terize village life, the pressure will be on them to increase stock value more
than village corporations. As Price points out. "where cultural and economic
attachment to the land is attenuated the pressure to raise corporate stock value
is increased." (Price, op. cit., p. 56).
An additional pressure on resource rich corporations may arise from other,
less favored, corporations. Section 7(i) described above on page 5, places nn
each region a duty to exploit the region's natural resources. If resource rich







cor wrations fail to devIelop.l th ly I hity lMi;l)l< to sUIit fr,.,n r',.hh r, l ,,,r ,',,r-
po lrations wN0i1 le'gally t'X ''ect to shitre ill thle pl'ri(pif- fr'i,1 (d1-\I l ,Il1i'iil.
ilI Ige I l needs fur Iim m I jri at4lL te ush Iin(c'111 :1; -ti *'':I i-' ]- 1-'"- 'I[re to li n,
lea, t, or st,1 I 1 1( :is s5 o i-t ;i titli li:is t e.i r' l iVI,\ ',. \\'l l, z i* t. I I. ;i.!t:l I 11J11)l .1-
tions are granted large sumnis of nimtony frimi tlhte Al:isk.a Nativ*e 1'i11i1l, vill:ige
corporal ii is r.crive iitirli Iet:-... A viil ge. of 11)1 1,,, Itnl.ttition \v ill rr' ive :t1 iI ,rO i-
miately $7(tkHI.(HM iin the det:cile after titt Art's jpius:ei. 'Tli- i, :i in, iliii', t iml-i:
ill light (if plist village lpoverty, Iutt in ide'l11ate't0 to properly 1I1:1:;a LIt -i e i ':Ilh-
land assets tliat a'crue to villaige.s.
As OISon n11t.s :
"The i1 iitll'tairy coiiimpiei.:itIoii (ilue tlIh t', ..iiil.r vill-re .i rpiri'tiO ,.., slrri:tiil
over the next dccRade or more, is inslitificunt to allow for Piia ;uigrial ,rr,-r. Iid.'d,
give!] till, tjp<'r;iti0niz: il rri':iti s faci rur.il en, r-rpri -i-, ii Al:i Ii liigli ('-.t-*,
lac(k of skill d I 111.:1 iiIL'III.Ild ) it i-k li-'db.iilr' that 1i11i y 1 sinultril.r iil:-' *- ,ri-,r,-
tions are e't'-oiz, iiic;lly zzoi-ll-Szla i .i li en iiij lj .." ((l.-, i. to Cit., 'Iig" 1:;!
l'hrii-zli 1974, 114 vill:zi ;t'rt'tii', d friin .'7.J I; t to 11'1:: tIu I ilz.ii hi .iIf
the total tfaint will N1) a-v:iil.ih1' in ttli initi:dl pi:u-< through frimn ,..!,'i:il <',ipr:-
tions. If n1(ili of' llthIt w eer t'\xtiir'l',d for laud im a:lln 12''urii t pnir ,'.'i but '0,i'd
acc iuintlalte I' ya are's ittrt,:-t onl tih 1otitl 10 liurcrit, ;ap)Ijl'rill.uttly .-2i.i .11
would be available for use by the richest corpo)rations-a sinm ini.iilicliit to
adlminiister land hoilinl.s, of any -i/,.. Of course mui.rh 1..-- b..Ul -l If ai ;iil. li, to
poorer vill:.rte 1t'lr ,rzitions. Plr't.-.tre will be L'r,:0I Oi l i corpOr:*iI,1- to 'l-
bine in joint Venilures in order to 1iecurmti11te (enou101 i 21l-pital ti, p.iy ia\, -, 1iluin
land eagles. ;ind i~ke a lirotfit for stocklhdhtrs.
Additional pressure to :Ic'quire cash will co ze from .sli iltliicr. wli ) uvt
dividends and whise pt'r-o)nal c.i:sh nieds for daily livinl g xpiII' .i-, will r-itialin
high while personal cihi income remains low. 'The tetiplta tiii will in, gri-:it for
villnae corj)orati,1ns to nake land use decisions often "in direct conflict with tli(e
desire to pursue a slibsisten e lifestyle." (Price, op. cit., ri Z.e 62), Thus the
pressure will be to develop resources in a fashion tdetriititiital to tradiitnal
values and subsistence patterns or sell land for cash.
S. Lack of Erpericnccd Leadership
Finally, there is the threat of loss of Native land due to the lack of trained, ex-
perienced corporate management personnel in rural Alaska. Positions in corpora-
tions have proliferated far too fast for the availablle manpower. The lack of
experience and leadership reflects itself in poor management choices which some-
times cause loss of cash reserves, failure to generate income, and failure to file
important reports in timely fashion. Village people with little corporate experi-
ence are doing amazingly well, but they sometimes make serious errors as they
learn to cope with the complexities of the act. One result is a warning issued to
three village corporations that the state would dissolve their corporations for
failure to hold thle legally required annual meetings and file necessary tax
returns. The ability of village people to respond to twentieth century business
and government practices and regulations will be sorely tested. Village cash
receipts are too small to permit the hiring of Inrge numbers of outside consult-
ants or non-Native experts in corporate business. To do so would deplete cash
reserves already perilously limited. Thus most village corporations will continue
to learn by doing-with occasional disastrous mistakes-and without the help
of experts who could provide assistance but cannot lie afforded.
The result of these threats and their implications for the future are discussed
in the following section.
V. FI'TURE PROSPECTS
Native people looking ahead twenty or thirty years view the future with con-
siderable apprehension, some hope. and a kind of guarded wariness. The ambigui-
ties of the act; the necessity for considerable litigation; the requirements of
the corporation to make profits; the differing attitudes toward the land between
regional corporations, which see it as opportunity for profit, and rnmny village
corporations, which see it as opportunity to cling to more traditional lifestyles;
the competition between corporations engendered by section 7(1) ; the pressure
to sell lands to meet cash needs; the early deadlines; the bureaucratic delays;
and the inexperienced corporate leadership all combine to make optimism difficult.
Many vacillate between optimism on good (days. despair on bad ones. All view
the future with something akin to awe. Like participants in a great spectacle or
drama they are both drawn to the strumzle and alienated by it.







34


One regional corporation executive sketched a possible future for Alaska and
Native hinds as follows:
1. The land is sold to pay taxes or meet other needs for cash.
2. The real estate market is flooded and returns are low.
3. Under many diverse tenants with conflicting goals, land planning goes to
hell.
4. Critical habitat is polluted and subsistence opportunity is destroyed.
5. We all lose. We've killed the geese that laid the golden eggs.
Yet the same executive says he is basically an optimist. He points to a lot of
"rending, tearing, and Native people falling by the wayside in the process. The
short run is dark." "But," he continues, "I have great faith in the enduring
ability of man to survive, even in the face of disaster. We will find the tools we
need to survive in a harsh system."
Many point to joint ventures, mergers, establishment of loan funds by richer
corporations, and other techniques by which Natives can survive the settlement
which is increasingly viewed as a test of survivoil skill rather than a boon. As
one corporation spokesman said, "If we lose the land we lose everything. Natives
can't stay Natives without land; they'd just be money-managers."
Given the ambiguities and the threats to Native retention of lands described
in the preceding sections, several potential future developments are clearly
possible:
1. The pressures for acquisition of cash will create a golden opportunity for
what one official calls "the sharking industries." A buyers' market will be created
in which corporations respond to cash needs by selling land or leasing it for
schemes contrary to Native value systems and traditional appreciation for the
land. Corporations caught in severe cash flow problems may react in haste, and
under pressure compound managerial errors, grasping at straws in a frenzy to
develop. Much Native land will pass into non-Native hands as the real or imagined
necessity for cash is felt. Village and regional corporations will both feel this
temptation. In the process there is every likelihood that regional or village corpo-
rations may find themselves with less than the controlling interest in shares of
stocks. Major industries may control the majority of shares in some corporations.
2. Native societies, once cooperative, will find themselves placed in highly
competitive situations. Tensions between regional corporations and between
regional corporations and their village corporations will increase. A new kind
of Native vs. Native economic conflict will be set in motion. The beginning of
this can already be seen in conflict and confusions generated by the ambiguous
provisions of 7 (i).
3. Some land will be lost for failure to pay taxes. As population increases in
Alaska, local government boundaries in what now comprises the Unorganized
Borough-that vast portion of rural Alaska without local government and out-
side taxing jurisdictions-will naturally expand. All corporations will be faced
with tax liabilities on a mammoth scale. Not all will be able to generate revenues
sufficient to meet their tax oblibations and their other commitments as well.
Some land will fall back into local, state or federal government hands. One
corporation official posed the difficulty succinctly:
"We walk a very delicate balance between the need for cash and the need to
hold on to our land. Like the unfortunate soldier in Vietnam who had to destroy
a village to save it, we find ourselves in the peculiar position where we may
have to sell the land in order to be able to afford to keep it."
4. Native Alaskans as a particular kind of people with special characteristics,
a unique set of attitudes, beliefs and other cultural attributes. may disappear.
They jn!y become assimilated under the pressure of a land claims settlement
manny snw as a way of preserving their culture through control of their own
land. What education and religion have failed to do after one hunderd years
of effort, the settlement net may accomplish in twenty years as everyone becomes
involved in the drive, required by law, to make a profit from the land. Villnqe
values will be transformed to western corporate vales; corporate executive
leadership will replace traditional leadership, and Alasha Natives will be lost
in the mythical American "ninhi n'4trnm."
For some Native people already on the road to assimilation such an outcome
is tolerable, but for the two-flidni of Alnsknn Eskimos. Indians and .Aleutq
who careflly chose to enroll in villngos rather than cities or towns, and who
see their villnues as home, such an outcome is tragic.
In a telling discussion of the history of laud settlements with Indiann in
the lower 48, a profcss'-r of lvw noted that:






35


"lA1.sing was not allowed (as liuart of tilie Daw.s Act of 1..7) 1''ira..s, it "a'
felt thliat by allowiing non-Inldians to ubtaini poss.,,ion, thle IM dian ., wooUld be
inhibited from benelicially using the land. Congrc.is b('litrc than capital icas the cway to the mainslrcu'm." ( Monroe Price in a public speech,
Anchorarge, Alaska, June 17, 1966.) Enmilihasis is mine. E.N.
One I)urpose of tlhe I)Da\es Act \vwas to "civilize" IIdiaiins by givilng th1ni aL
little land to farm. It was believed lliat pride of owiiership and wirkiig tlie
soil would hell) the Indian adopt white ways rapidly. Land would a<'coilipl i.l
what schools and missions cuhld not. But umder tlhe ter' s of the Al:a.sa Native
Claims, Settlement Act we are now providing not only land, but alei, capital, and
capital is the "way to the mainstream." Land was alw\\ays the way to in: itain
"I(dianness," though linon-Indians didn't realize it. Monucy corrupits culture in
a w\ay the land cannot. Land only corrupts when it is viewed as a ci.nini,,lity,
a tool for profit. Such a view is required by the act, and llie import of it is cli.ar:
Ass..imnilation for Alaskan Nat ives.
All of the above alternatives for the future are very possible.
Speaking at a public conference called, "Alaska's Land and Lifestyle--l9D0,"
Monroe Price, attorney for Cook Inlet RegiolLal Corporation and autlior of the
text "Law and thlie American Indian," said :
"The act is clearly in the terminationist tradition . It was, and still .is,
looked at as a technique for Iplacing large parts of the state in private hands . .
the non-Native expectation seems to be that lands involved will only be tem-
porarily in Native ownership...
"In this sense, the Native Land Claims Settlement Act is the clear descendant
of the earliest American approaches to Indian policy. Native occujpancy is
undisturbed-until there is pressure for Native lands."
Uniless Congressional action can combine with Native's innate wisdom and
survival skills so that ambiguities in the act may be cleared up promnltly and
the settlement achieved in the fashion outlined in Section 2(d), his assesIsment
will be true-the land will be ours until others want it.


77-706-76--G


















APPIENDIX B. INTERVIEWS AND QUESTIONNAIRES


INTERVIEWS

SOU'T 11 AST AAI.SKA
1. Saxman
2. IHydaburg
3. Kikte
4. Hoonali
5. Klukwau
6. Sealaski Corporation
7. Tlingit Ilaida Central Council

ANCHORAGE
8. Alaskan Federation of Natives
9. Alaskan Native Foundation
10. Tyonek Native Co rp)oration
11. Bristol Bay Native Corporation
12. Rur Al Cap
13. Land Use Planning Committee

DOYAN REGION
14-15. Doyan, Inc.
16. Fort Yukon
17. Arctic Village
18. Ruby
19. Tanana Chiefs (missing)

BEING STRAITS REGION
20-21. Bering Straits Native Corporation
22. Setnasuak Native Corporation
23. Golovin Village Corporation
24. Unakaleet Village Corporation
25. Kawerek, Inc.
QUESTIONNAIRES
1. Choggung Limited
2. Mendas Chiaig Native Corporation
3. Sealaska Corporation
4. Cape Fox Corporation
5. Kake Corporation
6. Tyonek Native Corporation
7. Deneega Corporation
8. Bering Straits Native Corporation
9. Setnasuk Native Corporation
10. Doyon, Ltd.
Saxman
Saxman Is located near Ketchikan and Is feeling its expansionary pressures.
In fact, Ketchikan has tried to Incorporate them a number of times. Approxi-
mately 150 people live In the village of Saxman. The townsite of Saxman has
about 360 acres. Saxman was founded when the BIA relocated some people from
Cape Fox.
Saxman has a city council, an IRA council and a village corporation. The
number one concern of the Indian residents of Saxman is how they cnn preserve
the land. Originally, a number of the lots in the Saxman township were "re-
stricted" or free from taxation. However, some lots have lost this status and have
to pay taxes. The people were at a loss to explain how the lots lost their re-
(37)







38


stricted sta;it us. The city -ouncil, which is a municipal government incorporated
.undl(er t-ate law, li:is 360 ac.es. It has conveyed over 40 lots to local citizens.
Sillce it is a municipal governlment, it may not discriminate against non-natives.
Therefore, there is no way to keep the land out of the hands of non-natives.
It has been suggested that the city council transfer title to the IRA council and
the IRA cuilneil would hand the Iannd out only to Indians. The problem of the
city c,,uncil giving g land to non-natfives will be i litensif ied win-n the village cor-
poration conlveys I.2,qO acres to the city counclllhil. If land goes to non-natives, a
'chel'kherboard pattern will be created and council will lose control also over the
land. The city council in order to retain control is requesting natives who wish to
sell their land to pay the council the appraised value.
The village of Saxinan is within Gateway Borough and the borough is im-
p,,.sing zoning regulations on the village. 30 hlolues have to pay taxes to the bor-
)11ough, but it doesn't provide any services. If the taxes aren't paid, they can sell
tlie land at auction. In Alaska FHA hlas required that land be taken out of re-
stricted status in order to qualify for a housing loan. Of course, the city council
can't tax if borough is taxing. The village would like to get out of the borough.
'City council feels that borough is siphoning off whatever power or control
Saxminn has. The city council is responsible for water, sewage, fire, roads and
street lights, but they get no help. The sources of income to city council are
log storage, rent of building, water and sewers, and grants. City council positions
are paid for by CETA grant: clerk, city mnan iiger, maintenance.
Among the typical development problems facing the city council are:
1. pressure from IHS to expand water system, thereby losing control of it.
2. city council leased out 10 acres for an EDA project-a warehouse-but
the developers K&T went into receivership, and so city council somehow lost
6 acre,, when a letter conveying land appeared with false signatures.
3. need a boat harbor-already did feasability study but no action is being
taken.
The Cape Fox Corporation has 191 stockholders, 109 are from Saxman. Cape
Fox was entitled to 23,000 acres. They were required to select the worst land and
now they are stuck trying to figure out how to generate an income from it.
Their land selection is 6 miles out from the village of Saxmnn. They hope it will
have some recreation and timber value. The timber revenue will sustain the
corporation. People feel that the only way to retain control over the land is to
deed it to the IRA council.
Hydla 'rg
Hydalburg is a fishing village south of Ketchikan. The present population
is about 300, which is an increase over previous years and is due to the city
council's vigorous development program as well as ANCSA activities. Tradi-
tionally. the people of Hydaburg are fishermen, but the closing of their cannery
and the limited entry law has forced them to develop other sources of income.
Hydaburg has an IRA council, a city council and a village corporation.
At Hylnburg the city council is both the local unit of government and a
vehicle for economic development. Since 1968 the council has reversed the
severe economic depression which struck the village with the clnsinz of the
cannery through a number of Federal programs under OEO. EDA. HUTD, and
DOL. Federal development projects as well as ANCSA have caused over 100
people to return to the village. With some imaginative planning, the mayor ha%
been able to schedule Federal projects in the slack seasons in order to assure
full employment for the villagers. The city council owns l12 acres; 145 acres
nrf already occupied. Thy will receive an additional 1'?0 acres for expansion
from the village corporation. The mayor opposes re-tricted deeds because of heir.
ship problems. The city council provides garbage collection, water and sewers
for a charge of $15 a month. The council doesn't tax turnkey houses, but they
will receive rents from the proposed EDA industrial park. The council had a
sales tax on fuel oil but it is now defunct because the BIA never rebated it.
Ilecently, some positions on the city council such as clerks, city manager, main-
te ince men. and harbor master have been paid for by CETA funding. However,
the councill is still in pr'nd of a full time plannumer who can devote his time to
lir,'o,-sing grant and loan applications, matching grants and adminiZtering
.onrmilrx financing arrnng ment .
TIp mayor e'tinited that lhe had spent .SOO in plane fares on one EDA project
for pro-application conferences. This project involves five feasibility studies
and seven agencies. The major offered two examples of the need for a full time









planner givvii the %nrrvitt li i bid elf ,arli'Cipalt il; iln "futlerlr l gr;ilit-ilii -lil'."
InI it:I I li nIaM ,CI fII ndsf art. ;kiI V I % ,lily ;A- ni at ,cbiir.- grat ...., tt;1:t tlit- l1,l( .iii \ il-
lIige mu .st ha .Ive lreadt ty r ce i d a 1,,,Ii i:IIA's is l I to ihod of fi iiiii i ,r- ,,I-raLIi. ;id,
iiitt'riim fi1auli 'ci -_ re',l ire.- an 'lpirli-e lt iat f,'- % i :ill tribe. ,r vill -i ],' --, --.
Thli villai e .h s to biTi'L'r x tite ml, ley fl'mt;l ,i: i, l,;,.- fir illi Tirp ,j 't :ii l llJr-ii
-.kA ,ays ItIT t i10 0.1'ia i ,l :ImI-, thly l ,V 1a-i.-.' T i, i,;l.i.,r il, L"lilt tliere, w ,i. l .ie tr
ILnd simi er \\ ;i .-. to .-a rt.i:cua rd l. I )A iit,-' y aiiii Ht .t Ihi., li,.; li tl of ilteri'im li la ,--
iug o1nly ,rIeRiited tlut' ,;tker,. til't lili:d i i ',Iale..
T he ity <,llI il uc iir .- il -.lf-l't r ile .li 'li. 'I'lnwy \\.llt tllt' x-xiri'-lC',
evcII of imiakiIg tlih ir (\\i iii:ltak .-.. Tlih y 41', ii-t \v.;tit t i.ir 'r,,r"ii d- i ;i liili-
i.l, rrn l 1- \ tilt' T libY 1iw II.:id.i C0 '-iLilr'il C ,,,iril l, c,',li .. tlbcy fc 'l T I {C C !.:1- l.1-4.
assiimiilat,,l by lii, l-'., ril liiir.:; r:it'y. Tiey feel t li:it tlh -y lia:ve l .,. l dis-
crimiitir lAtd again st in fdeirial rpn, r:Iii-. T1ilt- wily dr,.rai, i :illliii.te'redl ;it 1lli
village lt \vl is I1111'. Particular rly in !i..-irL. tlit', i'',l*h feel tltey &'% ld lihave
done iet ter with lca.l ciitrol atid 1 ,ii.l 'Lrit rat jin.r.
%s for fIliur t, d vt.v l,'>jitiic t filitjct't. tlin c,,tiii' -il lia. plantivid a c,,u miurcial
smolkery, an intidu-trial p'ark. and ;il v. pl:ir ,0i,;- .its f.i t,,ry.
TDI' inydal;Irb \illa ML9 Clrp ti,,n lasi. f al-,,t .570 .s.tficklirldcrs, 2.",0 (f \vhi'lk
live in the vill.age. T"in- cirlrir.tio, will be in Tht'y lhave ltt'c-itiie iii,.rl',r.- of Ilie SllH c:iast Tinil,.r C i'lprati i'i whirlb is ,c'rii-
pJUNC(e of Swhl-k: anil t-. otIlier villig:, c,,'1 'or1TiiKs. The Ily:L1it ir-! CGrir'ra-
tio lhas. received .i.. milli,,i to date. They w\-r, fnr'.-rl to ..,,Ct t2l.',l() artes
sontli of thl vilhli.'. Tly wiild hiave ir'ferred :ti atra i',rth of the vill:ie
wvli,.hi would have cfiitriliite(d t, a ,rdr'ly dt\.l,1,iiiiirit ,if the villager. Tlie
selected area \\i!l not b.e .-iii 'ieni t for sil,,i'-tt'rie fi-IiL'.,. ('- i,'.ially \' hliti state
fi.hin g laws are takenl into :ui ..,,iit. Thi'-r are l,1 -I r'a';1i in tle I ydi:ihuir
area tllhaLt are normally d y u v tlie vil:.tir if tli PLM obtaiIs I',': -tal nnIl
streanri .asrmiia.nts, the exclusive, ii-(' of b1,- .tr-ais wIld bW jJ,,,ardizd.
Since IIydlalmirg's election a nrca includes ilanii, a c,,n-t;,l easetenrt will
dimini Vh tlitir acrena.'e sulhstantially.
A large 1,part of the testimony offered by the major nnil IRA council president
concerned past niisMnau;gePmenit of their cannery by the BTA. In later conver-
sations with lnitive leaders. BIA mi-rnnnfi niit of ,a;tive ';1iti'ri,., ".1S OI,'
of the nmot imniortant factors in (*rt',ttiig the I r'--,i't corpI.rate -tr.tiimr, to
ndiiiiitier AN<'SA furids; and lainld. The ai;ives,\- waited to be fr,,o of F'ederal
ilici.lt,.[Itlicy ait aiy c.ost-even at the cuwt of ev''tiral;illy 1i--iui tlihir ,iju110y
:1110d 1:111id. Wl'ir follows is a history elf tlie oa, uld i A-,.itive ,'very.
Alakn i IRA councils were created by th,. BIA t<, prriiot, 1ni.i: e-< ventlrs.
In S.E. AI.:-ka. .since time i:iiili industry 'wav s fihizi. IRA c-',,,ils u-ually set up
cainleri. witl BTA.k lo-in.s. IIowe-er, tlie t-o ufiils were levt-r allowed to
d-Vt'elilJp any xp'rtise in thet actu;1i runiiiii of tlie-o.e cainerie.. With tlwir typical
patriliziiuz attitude. the BIA sullpplied operatii i. finds froiii tlhir revyIving
credit fuiil to tlie lislitrnaun anld ca,.lliry alike at tile il' liiiil g of each season.
Like'wi.te tlie BT.A eli,-e liet cannery nik;n ler. At thle e(til of a id seasot:.n the
fishermin anl ian tiery paid off the !(;iii. If tih e'.';1isi \v;i por. they went further
into d lit to tlif BIA. In I!t';y. after ever;il p',.r ti-iii', ,e:ison-, the BIYA inui-
laternlly decided to .con,-'lidnte 4 ca.mwerit, : Hydinbuir'z. M.. atknla. Kliowock. and
Kake.
Fo,,r c.inne.'ir-s aniii their flt.,.ts would mereo iiito two. f',r a total -nvin'mz nf
S2.1.O600 ler c-mmiery. Nie of the IRA cie,'il 1a:erticii ated in the deci-.,,n a,
to which e;lairir.es wild remla:iln ,,',1.
Thlie ITA.. witlihout c.,'i<'ltii:i with the ITyd-.:iliurz IRA crui.iril. decidedl to -l'',O
the IIydnluir c',licry. T'ley instructed the Iyd:il'irr i!11:1i;i:ir nft to tell the
p l4,11i1h, tl.It tlie ciainery wfls to he c'isc.il e,-(nI thoiizi tlh ,v \,e.' Ili-; vinliloyers.
VI!l-Ii l!he IRA met with tl e PTA to di-''i,-s the inext s;.:-,it's iis ;iiiii. BTA
ilIf.,,r7i1p thifn if fl their decii-on. The IRA protested but t.L ll:l nizer w:1
tr;i,.-f0.rrc'l to tflie Kake ca';1eiry. T'lie BITA deiitandled jaymiiient of I .$ll0K loan1
oan the c.nnery. The IRA c',,ild Lave ,;i:d tihli ofIf ,uit (ily tilie tli:lier lind tL,-
a!ility to <-iun el!r'vk-. Tierfre. tl.e BPTA deo.nreol tl:it t ,' IRe A wa? in
defalhilt alidl tlint tlt- BIA vuwiild comlpjle.tely take c-ver the il-.t:I.llin- iicludiiji
the flifl station. The BTA did niot even prividile minimumirn mainlte!lnncp so
thfiat the pir lihad to lie rebmilt in order to lease the c ilnery bflildi-alsn soine 10
years later. T'lh economic co zt to Hydahurg of the closing wn- er.nsidorally more
thin thle .2'.r. H savedl ly thlie BIA.
First. li) See,,nd,. w\c.faire paymenits ,iuint.-dl to $2.5.N)T a yen r.







40

Third, the facilities deteriorated and necessitated renovations of $900,000
(pier, building, causeway).
Fourth, the army corps of engineers cancelled construction of a break-water
due to the depressed state of the village.
Fifth. the village lost a self-help housing program since they had a high
rate of unemployment.
The boatowners also suffered economic reverses because they had to fish for
the Klowock cannery. 'They had to repair their boats at Klowock and they were
last on the list. When they came in with a catch, the cannery would take Klowock
boats first and so Hydalburg boats lost valuable fishing days. The BIA con-
tacted private canneries not to accept Hydaburg fish or to credit such fish to
the Klowock cannery.
The BIA then sent a letter to Hydahurg boatowners threatening foreclosure
if they didn't fish for Klowock. The Hydaburg fleet declined from 16 to 10 boats.
The Batel Institute made a study of the situation and said that since the
Metakala and Hydaburg canneries were newer, they should have been allowed
to operate, and the Kake and Klowock canneries should have been closed.
There was a hearing in 1966 on the situation, and it was decided that the
closing was unjustified. However, 12 years later it is still closed and Hydaburg
is in default. The Hydaburg Coop filed suit against BIA in 1974 for interfering
with their manager.
The boatowners of the village continue to face economic reverses due to BIA
mismanagement and the limited entry law. First, the BIA operates the fuel
oil distribution. Often BIA doesn't pay its bills promptly so the oil companies
will not deliver. Homes and fishing boats are then without fuel. Second, under
the BIA program of financing boatmen, they owe more than the original value of
their boat 20 years after the loan. The mayor suggested that ownership of the
"boat- should be vested in the cannery. The cannery can convey a 5 percent
interest in the boat each season if the boat fulfills its production quota. In 20
years the cannery could have written off the boat and the fisheries would own the
boat. Hydaburg fishermen have been hurt by the limited entry law because
they have not been able to obtain enough points to buy licenses. They have not
amassed enough points because they fished for someone else, fished in other
locations, or fished periodically in the last few years. Also, insufficient points
have been given for subsistence activities.
Kake
Kake is a fishing village south of Juneau. The present population is 455.
Kake has an IRA council, a city council, and a village corporation.
According to the city council members present, their biggest problem is the
lack of electricity. The Tlingit Haida Utility Commission has been unable to
get a loan from REA to put in an adequate generator in Kake. Therefore, the
village corporation loaned $30,000 to the city council so that THUC could put the
power plant in operation. However, other villages did not have to put up any
money in order to get facilities. The electrical system is overburdened and
could go out at any moment-it is particularly crucial for turnkey houses
since they are dependent on electricity for heat and cooking. Presently, the
village spends $1.200 a week on diesel fuel.
The most important project to promote economic development is a break
water to make an adequate harbor. In 19651 the Army Corps of Engineers thought
it would cost $4 million; now the cost is $15 million. The Corps recommended the
breakwater to Congress in 19r5 since the value of the fleet merited it. Kake has
the second largest halibut fleet in Alnska. but without a boat harbor, the boats
have a short life span. In one year alone the villagers incurred $87.000 in boat
dfmavespq. The breakwater would not only protect the boats but the shoreline
as well.
Unlike Hydaburg, the village corporation in Kake is the prime promoter of
economic development. Kake has 552 stockholders, of which 437 live in the
village. The corporation has received about $1 million from the native fund.
.200.000 was spent on administration. $170.000 in the communiTity center, $30.000
in a loan to the city council and the balance in certificates of deposit. The
corporation plans to invest !.00.000 in a cold stornze plant, and to attract
.600.000 more in additional funds. The plant would employ between 30-40
people. They have applied to EDA for funding but so far EDA has refused to
fund prorfit-maknin village corporations. However, EDA said they were interested
in funding SANTCO (Consolidated Native Timber Corporation). The corpora-
tion also plans a fish hatchery at Hamilton. The Kake cannery will be closed







41

this summer because the state will not allow fishing In the area. The commuilinity
is in need of a short-term c ,nloymuent lirogrami to absorb this uIjiemllioym ent.
They also want an arrangement whereby they can harvest subsistence foods.
The village cvorporatio has selected 23.,M0( acres in I li.ir core t,,wnshipij area.
They had little choice of land to select. The la nd they wanted lihad alr .:aly beeI
clear cut with the permission of th,. forest service, bIy a lIfgging cornipany just
prior to the passage of the ANCSA. It is ironic lllat thle forest service is tr3 ing to
compel SANTCO to harvest on a sustained yield bal:is.
The biggest lprublem (lie village cori)rpor:tiin facts is i)re:-rinl their lands.
When Congress established thlie Tongass National Forest, it awarded Indian vil-
lages towilsites. The Indians thought that the land in the village was theirs. IHow-
ever, Gustat'son lhas awarded iin-urveyetd ir unclaimed land within the, town-
site to lie set aside for ANCSA to non-natives. Tlh y feel all Indian lands and land
adjacent should be "restricted" and under Indhin control. In ANCSA 14<-(3), it
is not spelled out how the land is to l)be tr:inisLerred from thlie village corporation
to the city council and exactly how nm uchi. They feel tlhe liandl should be resi rittd
to natives and if the native wunts Io sell it, it should gi, hack to the corpi)rliratilo.
In order to receive interim conveyance of their lands they have been fopr.ed to
give easements to the forest service and BLM. If they --r'ant all tlhe reuiested
easements they would end up witli 1S.(IX) acres instead of "*_'.(<)() acres. They do
not want to grant blanket easements but specitic easements a.-, the need occurs.
The village corporation faces the possibility of paying a steep capital gains tax
on its revenues. They would like to extend the tax ext-mlption into perpetuity.
They are thinking of converting SANTCO (Southe:ist Native Tinimber Corp.) into
a cost corporation with a limited partnership. They will distribute profits or
dividends to individual partners and they will pay the tax.
Hoonah
Hoonah is a fishing village which is located southwest of Juneau. The present
population is 750, of which 214 are non-natives. Hoonah has an IRA council, a
city council, and a village corporation.
The Hoonah city council has 3 non-natives and 4 natives so that the council
doesn't always represent native interests. In fact, the city council is considering
imposing a property tax on unrestricted land.' Some natives will not lie able to
pay and their land will be auctioned off. Land titles are clouded because the
original village burned down and people were relocated irrespective of former
claims. People were never informed by BIA or BLM to put in a claim to the
town-ite land. Now the townsite trustee hLas been giving unsurveyed and sup-
posedly unclaimed land to non-natives. Gi.stafsou transferred some land to the
city council and they will be forced to give it to non-natives if they apply. There
is continual pressure from non-natives. In particular a 100 member religious
colony has recently moved onto 16 acres of land adjoining the community.
EDA has been funding projects through the city council. Tlhe council proposed
a dock and cold storage project but FDA could only fund the dock. Now the proj-
ect is non-operational since it still lacks a cold storage which would employ 30
people.
The village corporation, Huna Totem Corporation has 863 stockholders, of
which 547 live in Honnah. The corporate ioin laas received $1 2 million to date;
$200.00M) was spent in administrative costs, $50.000 in local businesses. The rest
is invested through Seala enough to run the corporation. However, during the first five years the corpora-
tion's time and money have been dissipatedd in legal battles to get title to the land.
Last month the corporation pai(l $4.000 in legal fees( alone. The corporation would
like to develop a marina, fisheries, small businesses such as a gas station, motel
and grocery stores, but lacks development capital. They are disturbed by the pre-
vailing state and federal attitude that they are "rich natives." when the truth is
they have received no land and have very little capital. The corporation lhas
selected 23.000 acres. They were forced to select over the non-natives. Ideally,
they would like to convert this land into a reservation so that it can't be taxed
or sold to non-natives. They have joined SANTCO to manage and market their
timber.
Klukiran
Klukwan Is located 110 miles north of Juneau on the Chilkat River. It is on
ancient village which Is characterized by its scenic beauty and abundant wild
I City council supports Itself from the proceeds of a liquor store as well as from revenue
sharing.







42


life. The present population is about 150. There is an IRA council and a village
corporation; there is no city council. The main economic activity is coniniercial
fishir ii. The villagirs are heavily d(pendeont on sulisistence activities.
The Cliilkat Indian Villagp Council (IRA) has never been allowed any signifi-
cant functions by the BIA. They can hire a lawyer and they have participated
in federal revenue sharing. Under ANSCA, the villagers twvice voted to retain
their original reserve of 890 acres with both surface and subsurface rights.
These rights would actually have been retained by the IRA council. However,
under the present IRA constitution, membership is restricted to those who reside
in the village and have resided there for some time. This restriction would have
left 180 natives with no benefits from ANSCA. Accordingly, some of these
natives convinced Congress to amend the Claims Settlement Act to allow Klukwan
to become a native village corporation entitled to all the benefits which other
village corporations had received (cash plus 23,000 acres).
As a result, Klukwan is to receive 23,000 acres while retaining surface and
subsurface rights to their original 892 acres. Klukwan, Inc. deeded over the
892 acres to the IRA council as a pre-condition to receiving the 23,000 acres. The
IRA will have to pay property taxes on the 892 acres. The village members can
also participate in the distributions from the Alaskan Native funds. The corpora-
tion has until January 1977 to select their lands but it appears the state has
already selected all desirable lands in their area. The villa-e is left with only
the mountain tops to select.1 Possibly a swap of lands could be arranged between
the federal Government and the state to improve the corporation selection.
The village sits on an iron-ore deposit which the IRA council had leased out
to MIitsubisi. The len.'e was negotiated by the BIA, and according to some vil-
lagers, the same lawyer represented both sides. The rentals which occurred be-
tween 1970-1973 are unaccounted for.
Monies from 1973, 1974 and 1975 are presently held in trust pending the out-
come of the controversy between Chilkat Indian Village (IRA) Council and
Klukwan, Inc.
According to the corporation attorney, the deposit will probably never be
developed becaiiue of environmental concerns. Klukwan is a bird sanctuary for
the bald eagle and a spiawning ground for the doz salmon. The attorney thought
the IRA council should be-ome a city council to avoid taxation, but then the
land would be onen to non-natives. Presently, ten non-native families are snuat-
ting upstream. They would like to establish a city council. Villagers feared this
community would expand to 200 alfalfa farmers. The IRA council said they
d(id not like contracting out to THCC. They complained about the defects of the
new IHUD housing: fire hazards, defective foundations., plastic pipes. They were
also never informed of the cost until they moved in and they were forced to
sian an agreement. The village is very concerned over loss of their artifacts.
They wanted to know how to protect them. The villagers have lost their hunting
and fishing rights. Joe IIotch said he tested whether they had fishing rights
on adjacent land by putting his fishing net out. He was arrested but later the
charges were dropped. The state hias imposed restrictive regulations on the
natives while the tourists openly break the rules on limit of fish. Natives must
tend their nets continuously. Natives must have a license to transport moose.
The fine is $1,500. The natives can cut fire wood only if they pay for a permit.
STATEMENT OF IRENE SPARKS ROWAN, PRESIDENT OF KLUKWAN, INC.

Klui.w.n, a Tlingit village, located 110 miles north of Juneau, Alaska, is the
home of the Chilkat Indians. A fierce, proud people, the Chilkats were the most
pww.rful of the Tlin-it groups.. The source of that power was their economic
ril'os g:irnered from the lands which they dominated and utilized. Thie area
was a massive one, extending from what is now the northern-most area of
British Columbia, Canada, south to Berners Bay, just north of Juneau.
However, despite a history of continuous use of at least 2 million acres. Presi-
d(lent Woodrow Wilson signed, on April 21, 1913. Executive Order No. 1764,
creating an 800 acre reserve for the Chilkat Indians of Klukwan. Two years
later, Executive Order No. 2227, e-tablished a native sanitarium reserve of
82 acres, two miles from the village.
1 See the attached statement for details of this problem.







43

Executive Ordler No. 31;7:3. sipgled by Pre,.-i dehnt Wa\rrei1 lullrdiiLr. redcle(id the
bouindaric.s Of tilt, reserve aitl d (crVa.ed Hit' 'cre:la e to4'2 ;n rs. oe ,ver. nil
April 27, 19-.1, tin' Setrt.'try of ilie Interior z'irifed a(dititiii il I:id4s so t],at
theit tital rc -'t.ve wvas o'i l 'i.i'd of M,[0 acres. Tlii-iiiili remained intactl.
In Publ)lic Land Order No. ;24 was i ri i nilg filled,. wit idir;i\ rn i ri 2. )
acres for classiflication ais tle Khluk%;uii It-'ervationi. IHIowtever, a ipuiilli li e. ring
on that propo)sal, held in Klukwan on Octolber 15, lG, prold(iced soinri. ii.stui-
ishing results. In ain unpreeed(enited (lecisii.i by an Indi.ii .gruip, Kl-ukw:in re-
fused to accept the traditional reservaiion concept. The vill:a- rs. in lengthy
testimony, decried not only the stigml ia att.ached to tillhe \wird but also tli(e f:Ict
that they would not be given fee title. Event niore important. they cat:l,),_,iuied tli*
(leliciencies of the desin;inted land whicli was not thle ecIioi onicailly vialide avri-nige
they had for centuries iiCCuiplIe'd and ut ilized. Furtlheriiore, tflie village illirublit :1mut.
complained of thle smnlal area which vwas proposed, and clearly annd uniiiistahkably
laid claim to their traditional lands.
The Honorable J. A. Krnug. Secretary of the Interior, on Decenmer 9, 1016,
approved the remminiendatiiins of thle hearing officer that the reservation pro-
posal in Public Land Order No. 3'_4 be rejected and that hearings be hlielId to de-
termine tile pIO.eSSot',ry <'laiis of the Klukwan natives. As a result, on May 27,
Public Land Order 373 revoked Public Land Order 324 as it applied to Kluk\w:in.
Unfortunately, the good intentions manifested by the Department of the In-
terior were never pursued. No hearings were ever ho(ld and no activity with
respect to Klukwan took place for ten years, except for an attempt by mining
interests to have the reserve totally revoked.
On September 2, 1957, Congress passed P.L. S5-271, redefining the boundaries
of the reservation and granting to the natives the right to lease their land for
miininz purposes.
In 1971, the Alaska Native Claims Settlement Act, 85 Stat. 688, et seq.. 43 U.S.C.
1601 et seq., became law. Pursuant to 19 of the Act, Klukwan, because of its
reserve status, held an election to determine whether the village would retain the
reserve lands in fee simple or accept status as an ANOSA village witli all the righli -
attendant tlhereto. Because of mnisund(lorstandinoi and fear. the election reulted in
retention of the fee simple reserve I1nds and on May 24. 1974. S_12,2 8 acres, incliid-
inz the sanitarium reserve, were conveyed by patent to Klukwan. Inc.
Because of the 1957 legislation which empowered Chilkat Indian Village. an
Indian Reorganization Act entity, to lease for mining purpIoses (the sa nie 17ind(
which had been conveyed to Klukwan, Inc. in fee simple), difficulties quickly
arose. In short, there was a grave question as to who had valid title to what
had been known as the Klukwan reserve.
The end result of a complex situation was the passage of 9 of the Omnibus
Act, P.L. 94-204. Piursuant to its terms, Klukwan, Inc., the native village cor-
poration. becaame a full participant in the Alaska native claims settlement en-
titled, among other benefits, to select 23.040 acres of land. Chilkat Indian Vili:,e,
the I.R.A. entity, obtained fee simple title to the S92.20S0 acre reserve.
Thle ',irpiratii in:iimediately hired the consultants nece :airy for an n-c'.r-;ite
selection. The experts retained to determine the amount of acreao ze availalle to
Klukwan. in its core townsishl, concludedd flit there v;is none. A copy of that
report is attaic.led hereto ma rked Exhibit "A".
However, to further complicate tiMe pIrblem, the Bureau of Linnrd Mnnage-
ment has recently indicated that a State selection of same 14,000 acres within the
core township is to be declared invalid. Thus, a dlislinte between tlhe !st:te and
federal government is imminent.
Studies to (leternmine the quantity and quality of acrenae available in the re-
Tnmaininz seven townships of Klukwan's withdrawal area were also undertaken.
The bulk of Klukwan's withdrawal area has either been pantented to. or s,.lctfed
prior to 1969, by the State of Alaska. Thle arens marked in blue inldieate the
remaining lands which Klukwan could conceivably s.elect. Whiile it exceeds the
allotted 23.040 acres, the average elevation of the area i 5.000o feet. Snow and ice
are its doninnnnt features. Pirentliet ically. it bnoiuld be addled ftl:it tlie '-ine
characteristics imbue the 14,000 acres in the core townshipl whichh, as earlier de-
tailed, are now tlhe subject of a iendinu federal-state cint' ruversy.







44

But even if the acreage were either comparable to the traditional land of the
Cliilk.its or economically viable, there is another grave impediment to its selec-
tion: There is no access. Economically, the construction cost of roads is unten-
able. Politically, easements would have to be obtained either from a state govern-
ment which has a decided anti-development bias or from a foreign nation,
Canada. The practical result of such a selection would be the acquisition of inac-
cessille lan( with no economic value.
The whole purpose and intent of the Alaska Native Claims Settlement Act was
to compensate the original inhabitants of the state for their aboriginal claims.
The compensation was of two varieties: Title to certain acreage and cash. The
payment in the form of land was to consist of acreage comparable in character
to those traditionally utilized by the natives.
Klukwan is surrounded by some of the richest land in the state. Undoubtedly
that fact was recognized by the state government when, pursuant to the terms
of the Alaska Statehood Act, Public Law 85-508, it made the massive selections
which it did. Indeed, since 1961, the state has harvested 269,000.000 board feet of
timber which sold for prices ranging from $1.00 to $70.00 per thousand board
feet. The dilemma is clear: Klukwan's traditional lands have been pre-empted,
and nothing comparable has been offered as a replacement.
Klukwan's problem is unique. In the first place, it is a section 16 village and
no deficiency land withdrawals for that category were provided. Second, no other
village in Southeastern Alaska found itself in a similar predicament because it
was either in or adjacent to the Tongass National Forest. Undoubtedly, the mas-
sive state selections surrounding Klukwan were also precipitated by the fact
that the overwhelming bulk of land in Southeastern is classified as National
Forest.
Klukwan must, therefore, once again approach this Committee and Congress
for a solution to its problem because conferences with the Bureau of Land
Management and the State Division of Lands have proved unfruitful. The B.L.M.
is unable to help because there is no authority vested in the Secretary of the
Interior to withdraw additional acres from which Klukwan could select.
The Alaska State Division of Lands has vetoed any trade between Klukwan
and itself. In the first place, state policy requires a value-for-value approach. In
the second, the state feels that when its selection under the Statehood Act is com-
pleted, it will have all of the aesthetically desirable land it requires.
It is, therefore, respectfully requested that amendatory legislation, containing
the following substantive material, be enacted:
16(e) (1). The Secretary is hereby directed to withdraw 70,000 acres
from the nearest public lands in order that Klukwan, Inc., may make the
selection authorized by 16(d). In making this withdrawal, the Secretary
shall, insofar as possible, withdraw public lands of a character similar to
those surrounding the village and in order of their proximity to the center of
Klukwan.
(2) The Secretary shall make the withdrawal provided for in subsection
(1) hereof on the basis of the best available information within sixty days
of the date of this Act. Klukwan, Inc., shall have one year from the date of
this Act to make its selection.
Without sueh legislation, in light of the attitude of the state of Alaska, Klukwan
will have no alternative but to litigate, raising numerous complex questions in-
cluding the validity of the patents already issued to the state in the Chilkat Val-
ley. Such a procedure will not only be time consuming and costly but might very
well have permanent and far reaching effects on land title throughout the state.
No one, least of all Klukwan, wants that result. The proposed legislation will
effectively avoid it.
Thirty years ago. the federal government recognized that the Chilkat Indians
had possessory claim to a massive land area. The Alaska Native Claims Settle-
ment Act sought to compensate for that claim. Today, however, Klukwan is still
without a viable area from which to select its lands. No one is to blame because,
in the complex process of legislating a solution to aborig.rinal claims, the problem
could not have been foreseen. However, it is now apparent, and Klukwan's share-
holders respectfully request your aid in its solution.






43

Exii1iiT "A"
F'. M LINt -.Y IJ S.S I I I. ,
.l nr'hlnnIf/ .{It'l'.>h, Jlay 2 "/, 1J;'7f.
IR.ENE SPARKS (ROWAN),
Presiidnt ( Kluktran, Inc.),
Anchuorage, A l.isku.
MRS. IRI:NE SIPARKS: I have rsearc(iedI the Kliikwa n cor. tw\,h-llip p'r y,,iir
reilquest and lia e fotiiund tIlhe flluw\viiig acr;igo.s : lpIlca- rirrf-r to thi. 4,1li-,'1I
status Ilats.
State pa tented lands. : .Acres
UsS 3708------------------------------------------------ 3, 11. 02
Sec. 29-------------------------------------------------------- 15. 05
Sec. 30 ---------------------_-------------------------- '------ :
Sec. 31 4.---;. --
Sec. 32_--- ---------- ------------------------------- -- -- "
Sec. 34----------------------------------------------------- ".

Total ------------------------------------------------ 4, 9. 2

River acre;ige:
Sec. 30----------------------------------------------------- 179. .:
Sec. 31--------------------------------------------------- 15. S7
Sec.'s 29 and 30--------------------------------------- 2-------54. (2
Sec. 33---------------------------------------------- -------- 5. 5
Sec. 34------------------------------------------------------ 47. 1

Total --------------------------------------------------- 71. 14

Total State---------------------------------------------- 5, 540. 3s
Total State selected lands: As per general selection letter 6/16/72 (sec attached
Letter).
Private lands (except Klukwan reserve): Acres
Sec. 3i --------------------------------------------------- 73. 20
Sec. 31----------------------------------------------------- 1 2. (
Sec. 29 and 32---------------------------------------------- 2. 5
USS 948---------------------------------------------------- 60
USS 991-------------------------------------------------- 13. 67

Total ---------------------------------------------------- 579. 72

Klukwan Reserve:
Sec. 32----------------------------------------------------- S2. 22
Sec. 33---------------------------------------------------- 491. 73
Sec. 34--------------------------------------- ------------- 112.16

Total ---------------------------------------------------- 6. 11

Total pIrivate ----------------------------------------- 1, 265.
Mineral surveys:
MS 2205 -------------------------------------------------- 467. 44
MIS 2223---------------------------------------------- ---- -. 3
MS 2206----------------------------- 4;i.
MIS 2207-- ------------ -------------00
M 2193--------------------- -----------------------1------- 3. 63

Total mineral -------------------------------------------1, 4,-,G. 10

SExact ownership in doubt may fall under State Selection.







46


Total State patented lands------------- 5,540. 3S
Total State s.uletion ------------------ 214, 718. 21
Total private-------------------- 1, 265. 83
Total miiniral -------------------- 1,486.10

T'tal acreage in T2,8-', R56E, C.R.M-------- ---- 23, 010.52
Additional amount due to shortage in gross Core Tpvwns1iip acreage- 29.48

Total entitlement outside of Core Township----------------- 23,040. 00
If there are any questions on the preceding please feel free to call our office-
Yours Very Truly,
ROBERT T. KEAN,

STATE OF ALASKA,
DEPARTMENT OF NATURAL RESOURCES,
Anchorage, Junc 16, 1972.
Re: A-060527, GS-1264.
BUREAU OF LAND MANAGEMENT,
State Office,
Anchorage, Alaska.
GENTLEMEN: The State hereby amends the above referenced selection to include
all the lands in the following area excluding patented lands:
T. 17-18 N., R. 3 W., S.M.
T. 16-17 N., R. 4 W., S.M.
T. 19-20 N., R. 4 W., S.M.
T. 5 H., R. 8-10 W., S.M.
T. 2-8 N., R. 11 WV., S.M.
T. 2-4 N., R. 12 W., S.M.
T. 1-2 S., R. 14 W., S.M.
T. 2 S., R. 12 W., S.M.
T. 4 S., R. 15 W., S.M.
T. 18 N., R. 1 E., S.M.
T. 13 N., R. 4 W., S.M.
T. 28 S., R. 56 E., C.R.M.
Sincerely,
F. J. KEENAN, Director.
2 This calculated figure iasecd on attached letter of amendment from the State of AlIska,
dated June 16, 1972, being valid; if not valid total entitlement outside of core township
would be 8,321.79.

TIC,' regards itself na a tribal body and would like to be the prime contractor
for 638. However, the area director holds that each village will have to decide
who is going to be the prime contractor. Approaching each of the 19 villages on
this issue will take an incredible amount of money. Among thoee who could be
prime contractors are (1) a recogniz-d tribe, (2) an active IRA conr'il. (3)
tribal leaders. (4) another duly-elected organization. Asking the village to decide
will create ill will among the community. The area director is questioning the
fact that TIICC is the tribal government.
THOIC has a CETA contract for $400,000 under title IT. However, aceordinz
to CETA regulations, only Indian reserve: tions are eligible for titles I and
VT. Alaskan natives are excluded because of this narrow definition. There is also
a problem of defining "unemployment". If seasonal employment is counted, tihe
unemployment rate decreases and people appear le' needy.
THCC do"-.n't like decentrnlization of federal agencies. They feel that this
approach short changes them in that regional offices are unresponsible and slow
the delivery down. They are dependent on HUDT to finance housing because
Alaskan banks don't have access to mortgage credit.
Ai n 1orage Area
AFN would prefer that the prime con rcetor be the regional non-profit nr Lrnnza-
tions except where a village has proven that it can implement the contract.
Where there is rivalry between the regional and village corporations, contract-
ing will have to be done on a village level.







47

limiting ;ani fis.h]iLig for sublsi.,tence pirpose- i.., mllchll mloqPre, iilprlant in l c.. ral
anid n(irthern .laska. IIo\vever, ijo\v the ijative. ;11ae compij-etinlg with 1ii,-1r.ilives
wh have planes anId so oflen gol empt-handed. '-'lTis \\ill il'crease thlle exis.tifng
deperhdenlcy on food stamps. For exa liple, the Na ia Region selected the l:aid along
tl-.' river to a ssure sili,-is.elitn'e fisiin,. NIuw Bl.M vaiiil.s est-Ilie its iLoii the
river, tihe cot-nt l iif tilt re,,I ITrce Will 1)e out of tile pe) ile'"s h: ds. A1.'P tlet'
caril,'ou iniove somnth to fi, vilhla:es. Itf BlM na;es:.. the lanlsl. poorly in tie
l(:'tl.l t n cribil, will never arrive. Tlir' pribledin witli -) 2 fviltvial 1lain, is tHint
tl,.y are I et\\ecn villa,'es. Tin' carib',u will legii to hidet in l)-2 la ud.s. In the
Brist,,l Bay area there \\ere live separate witlidrawals frni 1) -2 aiteas \ hi-ll
w'erkl' t n ,t ci'odina:ted.
M.:t1Iy village corp)orati inIs didn't select lands for their IrodIIctivity or fit Ire
devvelopl1iI n't hut for silsistt'ence U -e. If they are go"iil to Ihave to )iy prpei.rty
t:ia\et on tlitese lands, they iiii -_,t lose theinm. Al..,, if c.,rp4rwaItion st,-k <(.1i11rit'.4
liand ;i andl a la r-' c'ionipany controls tlie Village C(roi' rat ioi tl y will devel,,l) the
land Co iti trary to pe(qple's wislies.
('ity cou cils receive both state and Federal revenue sharing g. An IRA .,,unlcil
caln ,oily participate in Federal revenue sharing.
.ir.i'Ian Yaftie Fonnvlation
(hie of the most dihiticult problems facing Alaskan natives is the village corpora-
tion's ,.need for tec.lhnial assistance. To d(late the regional corporations have
a.,sisted themn in setting up their coirporatidn.s, niaking land selec.tiouns, and in-
vesting their fllu(ds. Some have even filed village co'poration tax returns. How-
ever, it is clear that the regional corplorations. do not have the ac.mountirng or
legal staff to help every village fight for its land selection or keep their books in
order. Who is going to keep track of the stock and the land in order to avoid
a il,,rass- of future lawsuits? Those village corporations whliir choose to select
thler fi',rmner reserve land are even worse off than other village corporations
becaiuset they recei-ve little min'ey from A.N. Funds and so have limited aeess to
lawyers and accountants and they are floundering badly.' Giving the former
reserves the choice between (1) receiving former reserve lands with both sub-
surface iand( surface rights (2) or receiving acreage based on poipulation with
only surface rights, and participating in the cash distributions, was no choice
at all. How can a village which chose alternative number one and which lack,
capital develop subsurface wealth? Likewise a village which chose the second
alternative will never benefit from subsurface wealth. Either way the village
h:as lt out.
Tl'e funds they are now receiving are being eaten up by inflation, legal fee., and
fi'hitiiig goverlnme1it agencies. The natives also suggested one state-wide corpora-
tion instead of 12 which would receive only 5 percent of the settlement funds and
pr videe tecl nical assistance to the village corporations.
If regional corporations devote too much of their funds to helping village
coriorati',i-. they can lie sued by their stockholders at large. This nimaki regional
corporal ti,,ns reluctant to provide "services" since they should lie pri'fit oriented.
S'i far memberss of boa rds of directors of corporations have been unable to buy
liability in-IuraIce to ilrotect themselves against stockholders' suits. On the village
level the 'corplortions could have chosen to become either a profit making corpo-
rntion or a noi n-pr,,fit c'i 1r'ration. HowvLver, most villages cholse to become profit-
ma k tig.-
Tie ANCSA wasn a termination act which leav,-s Alaskan natives no way of
mainta fling their ethnic identity after 1991. Ethnic identity in tl b l,\ver -4S h-as
'been preserved by niaintainigi the lind base over which trilbal governments can
exercise., juris-liction and control. Without control there can lie no ',o-ial nad eco-
n,,i.mic edovelopl, nent. Und(ler regional and village corporations- there is no a.-,ir-
nnccF that Alaska n natives can maiiintain control of the land or tlhe corlponration
it<-,lf. Ahka.n native, can be, easily dispnossessed by sale of stock or taxation of
lanil. If stock i, sold to nion-nntives the corporate structure would not insure native
contr,,l of develnoplent that is consistent with preferred lifestyles. T'lle ocirporn-
ti, n is a new, alien a11nd confil'ing concept. Thle corporation is damned if it doesn't
I In the recent Omnibus P.111 which amends ANCOSA. they were given 100.o00 each.
if they hail honcen to hboromp non-profit thit would have solv,'1 the' l-ihtlitv pronbrm
Since theo woeld have been freed of the npre.qlty of mnikln a profit and comlil hepro P-onte'd
c m hiity-eervfce entorprlkpq (store'q. fi-;h eonpq. arts and crnft', coops). 1'ih native com-
rnmit'- enteriirl 's might hnve nided storkTnldr.rs far more th0n annual (I lvi1'1n,1- Profit
n:ik-ncn ,'r.rpnrationn, oftfn are srIf-.FPrvinr in that they expand for expansion's sake. pay
th'.-Ir employees high salaries, and their stockhold.*rs nominal dividends.









succeed and damned if it does. If it doesn't succeed, natives won't receive divi-
dends and so will sell out at low prices; if the corporation is successful there will
be great pressure on the natives from non-natives to buy their shares. For example,
in the Doyon region, one would need less than $3 million to control the corporation.
One could cruise down the Yukon in 1992 asking what the corporation had done
for the stockholders. Probably the stockholders would say he had received $100 a
year in dividends, $2,000 total. The buyer would then offer $10.000 for his stock
and it would be hard for the stockholder to refuse it. At this present rate of divi-
dend payment, it would take the stockholdr-rs 100 years to collect $10.000 in
dividends. The fact is, no corporation is going to be paying dividends attractive
enough to match tempting offers. This is especially true when one considers the
short time frame: 15 years is entirely too short to acquire the necessary infra-
structure for development. Therefore, it will he extremely difficult for native to
control regional corporations after 1991. A large non-native corporation need ibuy
only 15 percent of shares to have a controlling interest. Even if regional corpora-
tions had the first right of refusal, they won't have the capital to pay off the
stockholders.
Likewise it will be extremely difficult for corporations to retain their land after
1991 when it will be subject to taxation. If the villages have not been able to
develop their land because of a delay in conveyance due in easements or because
of lack of capital, the land will not be generating the revenue to pay tliheqe tax.es.
This is especially true of those villages which chose the land for its subsistence
value and have no intention of developing it.
If under this corporate structure natives have no way of retraining control of
their stocks or land after 1991, why did they consent to a corporate structure
instead of a reservation system? Alaskan natives rejected the id-a of reservation,
trust land, and BIA interference, because they saw the gross pismnnmaement of
the canneries in the SE by the BIA. They felt that they wanted to make their own
mistakes. Since the majority of Alaskan natives have always lived in remote
villages, they did not feel their ethnic identity was threatened by non-natives.
Therefore, they did not lobby for reservations. However, now under the easement
policy non-natives will have access to all native lands.
Tyonck, Natire Corporaiion
Tyonek was a former executive order reserve created in 1915. It wan- also
organized udner the IRA in 1936. The corporation officials feel they should receive
immediate title to the former Moquawkie Indian Reservation because all the
original land (27,000 acres) has been surveyed and there are no complications. In
addition to the 27.000 acres, they should receive 88,200. They have not been able
to get title because of easements. BLM has requested several easements and has
even changed the initial easements requested without consulting the corporation.
The corporation sees the energy easements requested as impairing the economic
well being of the corporation. Presently, the corporation is dissipating their funds
in order to get title. They do not want to accept an interim conveyance subject to
future easements because they feel that such easements, particularly the energy
easements, would be hard to remove and they impair the economic value of the
surface estate. They have convinced BTLM to drop every request for an easement
so far.

TESTIMONY ON BEHALF OF THE TYONFK NATIVE CORPORATION. A VILLAGE IN COOK
INLET REGION, INC.
(Submitted by B. Agnes Brown, Presidpnt and Chairman. Martin G. Slapikas.
Executive Director)
Mr. Chairman : We thank you for the opportunity to appear before this commit-
toe. Prior to certain developments, we had planned on speaking on just one topic-
the status of the former Moquawkie Indian Reservation as it now exists under
the Alaska Native Claims Settlement Act. Before we address ourselves to that
subject, we would like to point out developments that have occurred involving
the Bureau of Land Mannngemnient that to the Tyonek Native Corporation indicate
flagrant violations of the intent of Congress when they directed implementation
of ANCSA.
12 (a) LAND REJECTION NOTICE
On May 15, 1976, Tyonek Native Corporation received a document rejecting
approximately 215.000 to 42.000 acres of Tyonek Native Corporation's 12(a) village
land selections which were filed December 17, 1974. Fra nkly, Tyonek Native Cor-






49

portion (loes not untld rstand tilt retjtection no(i ice. A la d .lclims ..(fl. eient n't,
announti .ceieiint froi I li It'iire: itU of LaIid .Mlaii.gt.i ,iiie t in Ahi-l1,:u.e. A l.i-,ki,
dated Octotber _2o l'.174, headliinies "No Way to ('lhanlge LI.,nd S.riil 11111 .\Alipcic'al il
After Deceilber IS." \Ve quote from that AN(C'SA Alert
"If a village selected imilds ihat wvire n(it compact t or werVi' nlt cil'igiuii, or
otherwise.' (did 1ot ueett tilthe rgulatimli.-. B lM \%mild live to r..ii.ct lilit I;irt or
tpossilil a Ill of thit' appldicItioi. Villages ill tins sil li:i ,i 4. co,',ull lus,, p,;1r1 mri 11 ti ,f
the total 1111a0u11t of a ?'tcagge which tilt- y ar' legally able to Nee(lle.s to say, this cilctverned tlhet villageL s in Coo k Inlet Ii'.'nil. I i'., wvho w.r.
In the process of land select ion. L.and int tie Cook Inlet eltgio,. ava%.il;u Ile for .i-lct-
tion, was not compact and comttigumous to each village. Th'e cmijlseiiiI'i.ces of a mi,-
take (o()il( lit, secere. As a re'i-lt. conflict a V l;s iii i+ with IiM ,ii I )'<'*iivu ,hr <;th
seeking clarilicationl andl giuidtan,'i coillcerniuii tlict. 111:1i-iiirr illn wilii-l to pri, <', BINM revitwted our lirocc(l ltres antd (doc.'ilcttilP(lI lt'ir tadvir' in a lt l.ter d:t,.,l D)e-
cemilh',r 17, 1974. We quote :
"Tilth illdividual vill:agis may scatter tliir scl(ctioliS within an a:ri. .-o Iinl, :;I
the total area selected by all of tilt village's l;k.es up ; (conlli.ct unit."
Conseq gently, Tyoiiek Native CIorporatlin's 12(a) village land selectioins we r,,
made and filedi reflecting that a(d1vice.
Tyoick Native Corli)oration lhilievts a griss error hl.as been made by rejectting
our applications. On May 19, 1971;. a letter was alddl-ressed to the Director of the
Bur:eau of Land Managenlent in Anclhorage. Tyonek Native Corporation a.-.kd(I for
"assistance in this matter" and requested "suggestions to solve the problem."
Because of the deadlines imposed uIpon our corporation by tlie A:Lisla Native
Claims Appeals Board procedures, which would ibe our next step, an answer
was requested by Friday, June 4th in order that a course of action could be
decided upon. To this (late, Tyonek Native Corporation lia, not received a
response.
On May 21, 1976, representatives of each villaire corporation in Cook Inlet
Region, Inc. met with the Alaska State Director of BLM. We were told that the
rejection notices were lieins dictated by Washinliin and that they were "prolb-
ably not" aware of the guidance received in 1974. Tyonek Native Corporation
asks "Why not ?"
If tle rejection notice is vacated, Tyonekl Native Corporation can look upon it
as a mistake, that was rectified, resulting inl another delay in processing our
application. However, if it is not vacated what conclusions can we draw? Baskd
on difficulties in receiving title to the former Moquawkie Indian Reservation,
Tyonek Native Corporation concludes that BLM is more disposal to mrname land
than it is to convey it, particularly as required under ANCSA. If other Native
corporations turn to BLM for advice as Tyonek did in tile lad selection process
of 1974 only to receive guidance that is reversed two years later by BLM's own
staff, to whom do the corporations now turn for assistance?
Indications reveal that BLM believes further legislation or the courts are the
answer. If this process is the way Tyonek Native Corporation eventually must
go. our village corporation will be obliged to spend substantial amounts of time
and money to obtain lands that were to be conveyed "immediately" under Section
14 of the Act. The attitude of BLTM, as shown in the 12(a) village land rejection
notice, concerns us very mniuch. In 1974 there was no reason to believe that tlhe
method of land selection used by Tyonek Native Corporation was not in con-
sonance with BLMT's regulations. By stating one view through their corresp)ond-
ence and then asserting a conflicting one in the decisions, BLM is not creating
a useful working relationship between the village and our corporation.
With that backdrop, we would now like to address ourselves to Tyonek Native
Corporation's efforts to obtain easement-free title to the former Moquawkie
Indian Reservation and Tyonek Native Corporation's belief that a definite
oversight occurred concerning treatment of the reservation under ANCSA.

BACKGROUND INFORMATIONN

First, the following Is background information that we feel is pertinent to our
presentation.
1. The Moquawkie Indian Reservation was:
a. Reserved "... for the benefit of Alaska Natives of that region" by Presidential
Executive Order 2141, dated February 27, 1915.
b. Maintained, prior to ANCSA. in accordance with the Corporate Charter of
the Native Village of Tyonek (A Federal Corporation Chartered Under tlhe Act of






50


June 18, 19:34, as amended by the CumpIIsite Indian Reorganization Act for Alaska
of May 1, 1t;6). This allowed exclusive right of access to be determined by the
residents of the Village of Tyonek. This was incorporated into the Constitution
and By-Laws of the Native Village of Tyonek, Alaska and approved by the As-
sislt i it Sec rettary of the Interior on Maiy 23, 19139.
c. Was surveyed in 1930 (US Survey 1..65). The survey was filed with the Ter-
ritory of Alaska in 1936 and the Department of the Interior in 1939.
d. Was revoked in 1971 in accordance with Section 19 of ANCSA-Revocation of
Reservations.
2. In Title 43 of the Code of Federal Regulation (CFR), Sub Part 2650.1-
Provisions for Interim Administration, it states, "(a) (1) Prior to any conveyance
under the Act, all public lands withdrawn pursuant to Sections 11, 14, and 16, or
covered by Section 19 of the Act, shall be administered under applicable laws
and regulations by the Secretary of the Interior ..."

INTERIM ADMIN ISTRATION OF FORM ER RESERVATIONS

In a letter to the Secretary of the Interior, Tyonek Native Corporation requested
the laws and regulations concerning the provisions of interim administration
un(ler which the former Moquawkie Indian Reservation had been placed. We
received documents relating to "Public Lands Withdrawn Pursuant to Section
11, 14, and 16." Tyonek Native Corporation is unable to find the "applicable
laws and regulations" pertaining to the interim administration of former
reservations "covered by Section 19 of the Act." Tyonek Native Corporation
does not believe there are any such regulations pertaining to former reservations.
We feel it was the intention of Congress to convey patent to the former reserva-
tions as stated in ANCSA, Section 2(b) "... rapidly, with certainty, in conformity
with the real and social needs..." of the Tyonek people. In the case of the former
reservation, this has not been accomplished.
Let us presume that regulations do exist concerning interim administration of
reservations revoked under Section 19 of ANCSA. Why would BLM issue a
notice of trespass served on a lessee with which Tyonek Native Corporation
has a contractual agreement? Tyonek Native Corporation, as lessor, is leasing
lands on the former Moquawkie Indian Reservation. The BLM issued a trespass
on our lessee in June 1974 without our knowledge. We repeat: without Tyonek
Native Corporation's knowledge or concurrence. It was not until late in 1975
that we learned of this alleged trespass.
Frankly, Tyonek Native Corporation does not understand why the notice of
trespass was served. Tyonpk Native Corporation did not request it and we
regret that the lessee saw fit to pay it. However, the question remains, why was
Tyonek Native Corporation not notified by BLM of a trespass on lands that
the village selected under ANCSA? The fact that the alleged trespass occurred
on the former Moquawkie Indian Reservation would seem to add further em-
phasis to that ne.stion. Tyonek Native Corporation does not wish to reopen this
specific issue. We do, however, wish to point out the inconsistent policy of
interim administration of public land as BLM applies it to the former Moquawkie
Indian Reservation.

EASEMENT P.OBI.FMS ON FORMER RESERVATIONS
Tyonek Native Corporation has fulfilled all the requireiments to receive patent
to the former Moqia wkio Indian Reservation. We have: (1) completed and filed
a survey of reservation boundaries: (2) selected villanee status under ANCSA:
and (3) filed a village selection application on May 9, 1974. We have still not
received patent to the former re-ervation upon which the Tyoneks have lived
since at least 1915. The major reason hba.s been because of a lack of easement
criteria on land withdrawn under ANCSA. WNe feel that easements on reserva-
tions were not given proper attention. We hope to prove this by highlighting
Tyonek Native Corporation's efforts to obtain casement-free patent to the
former Moqin wvk ie Indjian Re erva tion.
Prior to ANCSA the public was not allowed on the Moqni iwkie Indian Res-
ervation without the permission of the Native Village of Tyonnek. This policy
\vns supported and protected byv the Dpartment of the Interior in necordance
with the Constitution and By-Laws of the Native Village of Tyonek. What ease-







51

nients are now required Ion Tl'ynek .conti-ifllktd land after tie Ai.-i--; g f ANt'.A,
wheln til' reservaiitti is to reInainll ill the p -.-t i'o o. ll ti .l sa l 'e pe .l' i l\ho
lived on it I1'ef',e tle )ipas-.s:ge of ANCSA? What criteria c:lls for ea-,'iinlit'
across the former res.ervatiimn? Certainly nit ANCSA. ()rder No. 2!9',' ,iii.',
by the Secretary of the Interitir pertains to "the ri-.serval iul of ea-'iieiit.-, for
public use." Tleire h.as .ever bteent "pulbliv ue" o(f the former .Mi.lawkie LI:,l:ian
Reservation. Is it the iiintent of ANCSA to reervv e:isemvnt-t,. wi thi- firmi er
reservations when such use la.s oily ,beeii by re:-idetls <', the re.-ervatiou :iil
nut tlihe general Ipublic? Tyocek Native Crirpo 'ration ,dos Ilt Ieli-,v- it i-.
Wlieni Tymiek Native Corpoiration first retivedl d,'ciiiil iitatioiin ctoierniit.' thi,
proposed ast'll-niets. we 1'ilid lithat the ltcisiiiciit Tastk Force Mc tin-v lh-1.1 Si-,.-
teuiber 11, 1974 liad 'reqiie.snl-d a 1(,i f,,,t tastn. t i. t ri',iiL:li i id o t i itlfi.
reservation on ;a privately c(in. t ructted rioad to itIr'\i ille ac.r..-s to St:ite hliil-.
W e 't cuIl1d t 11 Iiollt al'stLIlId \l y BI.M cl 1'-s tli-, ea'--ii' n, t t1 roii, l tih n re- rt ;.-
tion whenN we are bordered onI three' sides by -state land.-. The Divi.-il+ of L:nd-.
State of A1a-ka. a.'reed with our view 1,,int. anil (i, ','iiiiiituily, that 1,:irticil.ir
easement \vas dropped. But it reliiiit'd over a yt.ar of effort to ,. i, cii,.

COo)PF.RAT iON ?
On December 30. 10l75. Tyonek N.iti\e C trii, ration roi".ivtd1 n'ititicatiiii of a
rerouted Primary Corridor No. 30 tihat seveTred apj)r,'ximate1y 6,41 nI acres' friji
the 26.91S.G56 acres of thlie f tinier MIuqnawkie Inilian IReservatioii. Tlii. cantue as ,1
complete surprise to us. Previ,,u'i to that date, Tyoinek Native Corprati,,n had
relied upon a Ni)vetnber 1974 report entitled "'M:nltiiniodal Tran-I,'rt: tii,,n &
Utility Corridoir Systems in Alaska" which reconiiiniie.d a route' fi)r Primary
Corridor No. 30 that avoided the MoIwpiawkie Itdiain Reservation. Thil'ra wi-
nio notification that this corridor was to lie rerouted through the former reser-
vation. Had Tyonek Native Corporation known alout it, we could lihave pointed
out that a negotiated corridor, agreed to by the federal government. state of
Alaska and Cook Inlet Re.gion. Inc., was h'ein.g propi-,ed in the Omnillb- Bill.
recently signed into law in January 1"176i. IFurther, one would expect ntifi'ation
other than a 30 d(ay (lealline lecau-e of the impact si.h a corridor \' stern
would have on tlhe residents of the former Moquawkie Indian Rsorvatiin.
But no-only 30 days to reply. One does not receive, the imlpre..sion ti.at (.iper;-
tion and a free exchange of information exists between BTL.M and those wli,
rely upon it for assistance.

FLOATING ENEiF.GY EASEMENT T VILLAGE SUC(' :S.S IMPAIRED
As you well know, specific corridor easements were cli:mnz('d to fl,,atinz oa.o-
ments by the Secretary of the Interior's Order No. 29S7. This proposal is anathema
to the economic success of our village corporation or a Vy village coipi ration wli. >e
lands the corridor may pass tihrouzi. A village corponiitin's -iii*vival will d-mii-d1
upon inoimew received from tlhe surface est:ite of their land. The Secretary's Order
allows compensation only though tlhe ri-l.it of eminentt domain in tlOw oventt of
removal or relo ca'tion of any strut ture o(-nwdl or au li ,riz,,'d by the o'.vii'r of tl,-
estate. Section 2 of the Sec..'re.tary's Order pertains iot oiiy to tlit. corrit,,r, blint
".. the rishit to lbuild any related facilities necessary for the exrri-ie of the
right to tr.insprt energy, fuel. and natural re.o-urce"- in,.-luliin the,-e re':itil
facilities nece.ssary during periods of 1,plainiiZ. ln1;iti'-. ',z-tructilnz. ,Il'11 iic,:.
maint:a i inar. o- termiinatin,, transportation syste:t,:." Doies anytliini; re:,.;i! for
the village corpiorat ion?
\Wlere is. a villano corporation nnw to expvOtt ec,,nomiic ,.iitc, (, s from tle ,i r'f.,.e
estate of tlIeir co(,nveyel ladiid,? A tilialicial harilq- iT loms41 on thi e ,horilz l t.-,'."-'!
a potential loss 'of a lbenefici:il eOconolic otipprtunity. We retnlize that t..s' ,";-,-
nmtot o ndr< .*'e hitz dlel;atefl else,\l.ere :it:d wf' do not wish to 1, .l.lor li sn1i 'I .
However. Tyoinek Native Cc-irioration ioe< fmil it l:inul to lweli,,-e .t.t tlie .'I'-
to the natiMnn's ener-zy cr;-i-, rests upon the hoi;:ldr-s of tlih Ntive x:.'.: ):; -
orations in thep 't:ite of Ala:k'i ak s i n, ii' believe tlhaIt this So,'rn.tarial Ordir is a',:lii ii-t the intent of Cn,' r,.-
W e foel th:tit these invonl.i'-ti-n.i-, poinr out tlihat the r, o 'rv: itii, i1 no I ovo r,'tl
Ind r thlie interim administrntion of jp lie ln; s.tronn ly believe tliat it wa-i the intent of Ci tr.-, t, e,,:avey ': trt to tle frT..
re-zrvation, as stated in ANCSA. S.tiovn 2(b) ". . raplv, with ,ortitt. a*
in erinfo.rmity with the real and social needs . ." of tlho Tyoneik lj'eol.









OTHER PROBLEMS
Additional problems that confirm our belief that the status of the Moquawkie
Indian Reservation and other reesrvations may have been an oversight in the
pass.:ge of ANCSA, have surfaced. One is 14(c) reconveyances as they might
pertain to the former reservation.
Although the reservations were revoked in accordance with ANCSA, we can
find no references to revocation of the Village Corporate Charter of the Native
Village of Tyonek. Among other things, the purpose of the Federally Chartered
Corporation is "to own, hold, manage and dispose of all village property." Pres-
ently 1l] houses. and property on which they rest, are community owned. Is the
requirement of ANCSA, as stipulated in 14(c), satisfied by conveying the land
to the Village Council rather than to individual tribal members if they so desire?
Further, could the fish camps also be conveyed to the Village Council to be
iiiaintain ed as they were in the past under the rules of the Corporate Charter and
Constitution and By-Laws of the Native Village of Tyonek?
If 14(c) reconveyances are not satisfied by this possibility it would seem that
not only was the reservation revoked but the provisions under which the village
corporation was operating were revoked. If so, what agencies now hold the re-
sponsibility of the village government? Certainly not the Bureau of Land
Ma na gement.
If it is determined that the village government has not been revoked by ANCSA
can we then presume that the Corporate Charter and the Constitution and By-
Laws, as approved by the Secretary of the Interior, are still valid? If so, would
this influence the impact of the Secretarial Orders concerning easements on the
former reservation?
Another problem that exists concerns gravel within the Village itself. Who is
entitled to that gravel? The Regional Corporation, the Village Corpor:ation formed
under ANCSA or the IRA Corporation as a governing body of the residents of the
former Moquawkie Indian Reesrvation? This is not an abstract problem. Con-
struction of a new addition to the village school requires a solution to this ques-
tion. Where does the authority of BLM begin or end in a situation such as this?
Do they, in fact, have any authority in this situation?
Throughout the Act, reference is made to valid existing rights of non-Natives,
and indications are that these rights are well protected under ANCSA. However,
when you apply valid existing rights to the former Moquawkie Indian Reserva-
tion, Tyonek Native Corporation feels this protection becomes diluted when
referring to the re-idents of Tyonek. It is in this regard that BM appears to be
in a paradoxical situation. They encourage easements across former public lands
withdrawn under ANCSA with the general reason that they were public before
and the public should have access at least through them if not on them.
Yet, could not that same reasoning be applied to the former Moquawkie Indian
Reservation? Exclusive right of access to the former Moquawkie Indian Reserva-
tion was allowed by the Department of the Interior through the Corporate
Charter and the Constitution and By-Laws of the Native Village of Tyonek.
Should not BLM be encouraging this same status and usage as existed in the
past? They are certainly attempting to do so with public lands withdrawn under
ANCSA. Tyonek Native Corporation believes that all withdrawals under ANCSA
are subject to valid existing rights including the former Moquawkie Indian
Reservation.
The shareholders and directors of the Tyonek Native Corporation are not
naive enough to believe that issuance of the patent to the former Moqunwkie
Indian Reservation would provide the solution to all of these problems and diffi-
culties that we have brought before you today. Tyonek Native Corporation does
believe, however, that a good majority of them would no longer exist if imme-
diate title to the former reservation was issued today.
On behalf of the Tyonek Native Corporation, we thank you for your time and
urge your consideration of these problems as they pertain to the former
Moquawkie Indian Reservation.
Bri.stol Bay Natire Corporation
Until the 40 million acres are transferred to village and regionnl corporations,
the BTAI lhnqs interim jurivdiption. They are in effect mnnaging corporation Ilnds
until they are conveyed. Under this jurisdiction, BLM can issue rights of way
and free use permits.
BBNC ae-eiiqd BT,M of looting corporation resources. through free use per-
mits for gravel. BI[ has granted the state permits to use gravel from corpo-
ration lands for Federal highway projects.







5:3


Thl conVVl.eyame ,f land liis ltei ielid up aini,...t indeh init,.ly by -ft.lff -1irl).i
andi by iNi.w.Ilcriirts ret',ll'tt'ld bl y B1I.M. BLM i,.-. tr.XIiil-ter',., pe p'1,,1 fr,,:i *,rl l._,
o1 native allbli vieitls to worl'kig 1i)l r'egi tn.l a1 Lld 1.ill ;.:,. I.I l -il'i lin-. ll,,m-
e% er, I'.l'on a i tr'ri4ion ,r 1 village callI IAave 'a Clear tinlI.. ;Ill, i ,,I i\I id I.tl II,,'iti n ts
IIust Ie d,-f'ided. rthe ,e st-eeIIIs to In' lit I nnv ni,.y for hiriI,; IIIi liti-,Ii.Il tI;, t)
sj'e'Id up tilt, prtoce.'ss of cniinfrring cIiivey.:li.csN but tilter 1 i. 1,iiEiy to build It
liew B It .i ui liil., li is oi c J i il tlat tl:. Laid Pl'.i.i iii ('orm m ittete is -',li,,,-,.l to
siiibmiiit Ilit' ea'e. it'll s to BI.M. but it i.- Iiilz,]'ip] ng illn l rre lib',aiil-, t ('roin-
witter lias evII wo tre sever staff slit H'l:n ,,iL; li BI.M.
The' c'riji''atiiis will lir<4i01lily ,IV 11 p;Iyinlg t.axs ,il tMlj ltiinl ,1 i'fI'1n' it i-. veye(l. 'TILe .' NO 4t e -ciiieis it puirl<;:.'zt, \\: is 0iv'.i. tt BIr- ol t, filr iffierit ,i ''I-
sioni ,itlce1 tlit' S <-.'il' tary t'la -,t'Ji d tln' g:iitl'liit-., 'in t a -i.iii.11 t vic('e '1'1 Il,.\[
Is trying to blnckminail BBNC1, into r.jintiltg biytiiiriits by d until t lil c.4r lt'tit i .ion.i otff ol a.M.t.-iii,'nit ..
If \ IN brings a lawsuit (on t';.isiiiiits it lta.y call-< BLM ItI stlpl c'4ILVlyl-.
To kwlp tinhein giinr,. the c(,1ivty lCIL'cs should lbe .lilijt-t to co.it deisi,..
BI .l hai lso forfCed IBBNC tto inthd'r.-et'I'rt 10'(,, of ti i.rc'a.ie allwtd flilt
A fct. BI.M Ii i ts aI s .i.kI'd or fl<);itiin. c'visnq 'nniolts W"hieh art, really t i;lt-1,,:,tltitt It
vorridor's wliieli were al,'ad%.y rejctlld 1by the Liind U.-l PlI.iiii ,ii,: tu itniftc.
111 lite BBNOC tlit'rr ar two (jli.ili'ti-d ",riijl S" that sliould receive l; ind. IHow-
ever. tliee g 'ru(1ps reside oni lands in two townvuhip s alrcaudy 'el,,'t ed by tht- vil-
lige 'O CorlIpr.tiontl. W lXil, le thetse groups received I ii4'y ai., ii(lividlh:nl st,'kll,- ldiers,
there are no fuid-, for tineii to :OIL li) ai corp'irl;tiiun. Wiliilit lind :an1l IndlS
it i- extreiimely unlikely tliJ t the.e grou)SL will <11-4i e into VXite(-ncc .. as spIR- ilik.I
by tit' Act.
The big-est probl.ii is uettini.ig conveyanem'e to thi land and tlii, funds to develop
it. If corploratio.ns face lt' ngtliy delays in gut tliii title, tli'y will iot be ablU to
develop the land in time to pay the taxes dife in 1991. There should bie a '2> y'..ir
nitoratorium i'l t.a'xatio i starting Itromn the time the land is odli-cially co.vtt,'yed
instead o)f from 1i)7l. The $1 billion award will tbe reduced to at value of
$250 .0( N.(1.)0 by late payminent.s. inflation, and exces-ive legal fe.s.
Ho.pxing
In A.laska eonsideralble front money is needed to test .soil<. to plan acci",. to
pl.in subdivisions. $10.000 is spnit on administrative cost. $10,(M (,it shilippinlig,
$1S.000 for materials at inflated costs, and only $20 for a Wa.hington IIDT) de-
sign that is inflexible and unsuited to the Alaskan climate.
Rur AL Cap
One of Rur AL, Cap's programs is emergency fuel. With the chliange in life style,
many niatives have switvlhed from wood to oil for fuel. This creates a problem,
since they gathered the wood themselves, whereas they must purchase the fuel
and they do) not have a steady income. Suppliers also will not extend credit, and
insist upon being paid in full upon delivery. Fuel prices vary between $.43 and
$2.50 a gallon. Rur AL Cap has recommended legislation to set up $2 million ,,emler-
gency energy loan fund, however, it is frozen in committee. Thlie loan fund would be
used to build bulk storage tanks in the villages. There is opposition to this bill lie-
cause the stale doesn't want to fund depressed areas that are poorly niananid by
IRA councils. There is also a general feeling in the U.S. Congress and in Al.i-4a1
tliat A NSCA solved all the natives' proldems and that they are extrreniely wealthy.
Another program is tlhe winterization of homes. Originally $990),000 was re-
quested ]lut thiis was cut to $s50.O00. The money is used to stop wind infiltration
e.perially in poorly-designed TI'I) homes. The problem with HI'D is that liuises
are deigned in D.C. or Seattle with no local input, or as one Rur Al Cap put it,
"Profgiress is a frame house which is not suited to environment."
This is just one more example of the federal agencies' collective refuszal to
rec,,gnize tihe uniqun.'s.s ,of Alaska. Millions of dollars are being spent on fed-
eral pro-ramnis which only create new problems instead of resolving the original
ones.
Land Use Planning Committee
The problems in the Tmplenjliientation of the Act are inherent ini the Act itself.
Firqt. the time conntraints are too tilght. Second. there are no guideline.Q. Tlie
Commission doesn't have sufficient staff to prepare easements and so they h:ave
given this job to BLM. BLM figures out easements and submit, them to LUPC,
but LUPC's role is merely advisory.






54

As for the requests for continuous easements as compared to periodic, the state
ass('rts that it is vitally necessary for coastal development and for access to the
be;1-.h.
The procedure for deciding easements should take 90 days.
1. from BLM to village corporation 45 days.
2. from village corporation to commission 45 days.
Doyirm Region
Doyon has incurred considerable legal costs because of the vagueness of some
provisions of the Act. There has been litigation over the definition of compact
and contiguous land and over who can be enrolled. Probably the most serious
oversight is the definition of "revenue" in 7i. It is gross or net revenue? The
Secretary has not attempted to resolve this difficulty and is letting the corpora-
tions enter into litigation when it could be resolved administratively. Some cor-
porations have spent what the others consider revenue to be shared, while other
corporations have put their revenue in escrow. Mr. Sackett said he would rather
not have revenue sharing because of the difficulties in monitoring every corpora-
ion's accounting system. Furthermore, the corporations are going to be less
anxious to develop marginal land if they have to share the revenue. Some land
development isn't worth the effort or cost if it has to be shared. So far, the 12
regional corporations have demonstrated no real unity, and they have concerned
thinmelves with small problems rather than addressing the larger ones. This has
encouraged an attitude of taking care of one's own corporation and forgetting
the others.
To date Doyon has invested in a building, a construction company, an oil
operation, a surveying company and a bank, along with 5 other corporations.
There are also a number of companies exploring for minerals on Doyon land.
Mr. Sackett was concerned about the oil reserve tax-this will force corporations
to develop whatever resources they have and if they don't have the capital they
will have to lease the land to others. Presently, the state is trying to capture
revenues through reserve taxes, severance taxes, and wind fall taxes. The period
of inalienability of stock is too short. They should extend the period so that the
native stockholders can reap the benefits of the corporation's development.
Doyon had helped village corporations in the land selections, in setting up their
corporation, and by investing their funds. Doyon recently helped the villages or-
ganize a m management corporation to supply technical assistance since Doyon faces
a conflict of interest in this role.
The interior is more isolated than the coastal regions and the people are very
dependent on subsistence hunting and fishing. Villagers need access to D-2 lands
for subsistence hunting and fishing. Some villages might prefer subsistence over
development.
Mr. Timmie didn't think immediate conveyance of the land was their most seri-
ous problem, except for certain critical areas. Doyon's position is to accept interim
conveyances and fight easements later where obtaining title is essential for a cor-
porate purpose. They do not want BTM to stop conveying land because someone
has taken them to court over easements.
Alaskan natives will probably have to pay property taxes before 1991, because
the state wil declare the land to be "developed." The state might consider the land
developed if it had any improvements at all. such as a road or a house. As regards
the present tax on undeveloped oil, the state will have to prove that the reserve
exists and can be transported to market. This tax was enacted to get at the Prud-
hoe Day oil, which is estimated at 9 billion barrels.
The main problem with the village corporations is that they hove little money
to develop. They have no funds for ancountantq, lawyers. planners. They need to
set up income produrcing activities. However, they face the possibility of getting
into investments that will strip them. Doyon has tried to inform people of what
their alternatives are. Doyon was instrumental with others in establishiinz Tn-
terior Village Association to assist village corporations in routine business
matters.
As far as Doyon's developmAnt activities. the corporation mnde a connsc!in,
decision to ask an independent oil company to explore for oil, rather than a major
comrpa ny, hier-a e they feel they got a better deal.
In regard to stockholders selling out in 1991. they would like to see the stoie! tied
up. But that would be unfair to the stockholders since their stock is an asset they
should be able to sell. Anynn.' could buy 10-15(r of the stock and control the cor-
poration. Possibly the corporation should try for the one-man, one-vote system




00

X-tt., exteI.i % ely by f.ir,1er c ih0'C ,.,ativ,-; tlii. \\ Lir I., ritt iot law.
.'i t f I tlhe bi*,-'.-t l pro,,l>!,L i-- i- tlt, I ;ttiti t,'- of 'i, fi, ''rri l .'.'., i ': ir:f :.t. l >',,y
'- i t'> lik\.i to ].tiy g:l' il, .f'tr e\:inp, II. 'S li 1 o4 t- n wd ii- ', ,.,ri'r.,tii n -
t0f tin.. A c[ clil't'e'llil i Vrt'- llt'lt, I INN('Vy;lih(t 7(i), li ti bl urolliit: 'i,- p in lii.-r
O nrinl- iii Iill. 'Theri-r ir st ill no alppl ii'ti,,ii- print .,l toi ]l.i ll', t ,, iir l )11 it.
L tri, ll'iiimn i r t tIe' Janu.ii ry 2', 1I17T.
S 'itr 4, i1t1, i.ils such :1 N o)r i A.j L icl'i e ti t Iw 'i o t hit :t 11(iy.-it N h: ii x"' i ii. iillo
er ti einlc d h not.e e t. IId su- I' \irh z gk \ith i. -,r it
is rli 'il to Itnil inl, rt nilr O ,irgiu i .y ;it l 7(ai) \tihe folect i a ILII it ort ot divid. gl-.
a de.. a 'ifeiriS* ti- it rililtni. S,) fair tli cr.."' li. i srii e iI : 2Ia ge t r et 1: i ro with shl, klur>1iler tuits.
I! lTV inUi a o, r t li m e :Iid .-l.c'tion ,e ip-. Bill St.iir. l.irdl hi>t,\v. i tw\ lt1he P i)yon
. ,rt1i .I:11 I-Ii 1 1la1 N IIttl fo,'r,.,i to s. lvvt t,,\ I is-ll ;iri l r (I tI;< v vill :-_f, '(,r-.. to\% 11-llip
iun a .likt r .akerlard iittng'i. Tli.-, i ht.s Y 'on dotrol of 010t roldl "ixtrnclty C'lii t ktiln)jIdlni. l i',vid(.-s ;ic',s.-. to, t.nite, f,. lmt.'n's S i i 'Ll;

ort Yluk,,n rcattd in the Yukn h River Northeat of I'airbanlk,. It i- a -lcrvice
cT et-r fir the interior. O.-sinailly, it \va.s the collection incint for tlhe fur traiIt
trall. PresIenA t 1re nup l:tion isn aro nld 5W,)> It byfl'.rs thle lb'al and fl in h atrl iid 'ril.t-
itMn ininy -ervic .-r": f lart'l e retail storei,g schoold-, dret house, police station. nihld
a TV t wintin, to mar.Te a liviii. riuo(ple of Ft. Yukon do inot \ant ro.ids .inev tlioTy ,.njiy
tieir iculation. Ft. Yukon lta.t- a city t WIil, an IRA council, and a avilnia-r c lorpra-
t ion.
Thl city coriiil has six native bmemylers and is financed by a salec tax, by state
and fdlo;le rteven li.- ihring ($40,fNt0), and by the protieds frpnr a liqtinr store.
Mr. C.irroll felt that all revenue sharing, ,lihmld be direct and that notoi n c-liounld
1i,!-s through the :tate. State reVl'nule sharing di..linled from $"0.(MM) to $1.1.im
within ono. yelir. The city ciiuncil hIls not received EDA money or CETA miig cy.
tin nth ergramis are difficult to apply in Alaska b itochiise of unrealistic renlati,(us,
particularly administrative cost limitations. The city employs a manager. a <'lerk
an aw-.vountant, two policemen, and three TV operat,,-'4. Tie total payroll is i?,(,OJO.
Utilities are provided by a private company. Fuel ,,il storage and di:.tributin is
Owned and operated by Chevron. Both th-e city council and corporation ar,. reluc-
tant to take over fuel distribution lbecaus.e they feel that Chevron would not cn-
tinul-. to deliver. The city council will receive 1,2sO acres from tle village corpora-
tion and there is little fp.nr tlat this bi nd will pa.ss into the hand-, of n,,n-n.itives.
liho BIA is not accepted very well in the interior. Most interior villa..e- would] like
to do their own contracting because they feel they have been discriminated against
by the BTA.
The village corporation lias 737 stockholders, of which 415 live in the village.
The corporation has received $1.3 million and has $1.0 million invested through
Doyon Corporation. Tlie remaining funds have been invested in a retail store
and a city council building in Ft. Yukon (.350.000), and in a building in Fair-
banks (.S'5. 0). The corporation is considering buying an airline. They would
like to develop their resources, oil and timbner, through joint ventures because
they have insufficient capital (note: Subsurface rights belong to Doyon Cor-
p,'ration). Their land committee selected their 167.000 acres. for their timlber,
oil. and traditional subsistence value. Since they have chosen their land for Its
subsistence value, they are concerned about how they will pay future property
taixes. Since they have no immediate land development planned. they were less
c'-'ncern(.d with immediate conveyance than were other communities. They
would like to have access to D-2 lands for hunting. Mr. Carroll estimated that
25 Ipreent of their diet depended on sublsistence activities. BLM has asked them
f,,r trail and river easement. The river pasements would affect hunting lec-ause
they hulnt tlhe river leIls. Another pr,,blemn for the corixrmition is its inablility
to get linliiity in. uranec. N one will insure them. n,)t even Lloyds of London,
ei. uise tley feel tlhe natives have too much m ,iney and too little exIerience.
The city manager, Mr. Carroll. is also lihead of Tanana Chiefs Ioiiin- Au-
thority (TCIIA). The Authority is currently building S:) units tlhiriughount the
I'iyon region. Mr. Carroll complained of Wa.hi in-t,,n regulations such as lihous-
ig specifi-ations which make little sen-e given tile climate of thie interi,)r. Even
thouhli Mr. Carroll has made design inmModitications lie seems to ble ,o-,re su,'-.ess-







56

ful in staying within cost regulations tha is Tlingit IT:ida Contral Council. The
average '-ost of a house in Ft. Yukon is $35,000 as cominpared to $62,000 for SE
AI; %-k;t. Ile was also critical of the fin ncing system in that the Seattle office
hadn't ,,dd enough bonds and that c(itruction was halted due to lack of funds.
Thle TCIIA puts to-zether the work force in each village to construct the homes.
Mr. C.irroll also complained about the purchase of appliances for the housing.
He lias proof that certain government officials were allowing dealers to over-
invoice. He lhad cancelled orders on (-ccasion and bought from a cheaper source.
Mr. Carroll thought that HIUD prototype cost. for Alaska were unrealistic.
Arctic Village
Arctic Village is the northernmost Indian community in Alaska. It is located
in the foothills of the Brooks Rango, north of Fairblanks. Arctic Village was
]'iart of the Venetie Reservation. Population is approximately 120. Their only
connection with the outside is by air. There is limited running water and elec-
tricity. There is a BIA school, a church, and a clinic. A doctor comes every
couple of months. Arctic Village has an IRA council and a village corporation.
The IRA council is the local governing body. It qualifies for Federal revenue
sharing. They would receive $300, but this small amount is not worth filling out
the forms, specially if someone ha.d to travel outside for legal assistance. The
IRA is considering incorporating in order to get state revenue sharing. To date
the IRA ha;s received practically no development assistance from the federal
government. They haven't received any funds from EDA, HUD, DOL or Indian
Finn nce Act funds from BTA. They did receive a $40,000 SBA loan to build
a community store. They recently installed washing machines in their 10 year
old community building. The machines were paid for by the rental of their
tractor. The state has provided some assistance under their Rural Development
Program. RDP has paid for materials for small projects such as repairing the
tourist lodge. Salaries were paid out of mainstream funds (DOL?).
The Village corporation has about 150 stockholders who were the enrolled
members of the village when it was a reservation. The villagers complained that
under ANCSA there was no possibility to keep their lands in trust. They were
offered the choice between owning the surface and subsurface rights to their
original land (1.3 million acres), or relinquishing subsurface title, receiving an
amount of acreage based on population and participating in the native funds;
they chose the former. Under either alternative the land is held in fee patent.
They were recently included in the amendments to ANCSA and will receive
$100,000 for expenses incurred under ANCSA. Arctic Village typifies the ex-
treme financial problems facing villages ANF described to the Task Forces.
They have no funds to hire technical assistance or make physical improvements.
The $100,000 they will receive is grossly inadequate to defray the legal expenses
involved in securing title, let alone setting up a village corporation to plan the
development or protection of their land. According to the village members, their
land lhas recreational potential; possibly there is oil. Again there are no funds
for a resource inventory. Their relations with the Doyon Corporation are
strained because Doyon wanted to form a partnership but would not advance
them any money. Consequently. the village would not ask for or receive help
now. So far village and corporation members have spent money out of their own
pockets to travel to negotiate on ANCSA and to obtain government programs
(note: it cost t.sk members $285 an hour to travel to and from Arctic Village-
thus the cost of transportation is almost prohibitive). Since they have difficul-
ies in working with outside groups they would prefer to administer any pro-
gramin directly. The village corporation is not sure it wants to develop any land
blecaii. they chose surface and subsurface rights to preserve their land for
traditional activities. Like Indians in the lower 48, they feel the land is im-
portant for the survival of the people. The question is, how will they pay land
t:xes after 1991 in order to retain control of the land? What will they do when
individual natives sell their stock and non-natives take over the corporation?
Control over their lands is only assured for the next 15 years. Presently, they
don't even hive interim title because of tlhe BTM's policy to ask for blanket
e:emennts. Now they hunt on their lands when they need to, but they also
need access to D-2 lands in order to meet subsistence needs.
They would like to control hunting and fishing on their lands. Most of the vil-
lagers have no steady cash income and are dependent on the caribou for at least
two-thirds of their protein diet. They do receive food stamps which supplement
this. There are approximately ten full-time jobs in the village, but some are held
by outsiders.







57

The village corporation has IePen visited by a it num,,er 'if dvelo, pers. l-',,r e\-
ample, a linlier company wanted io t1o in i eqtll ry ol ,il :111( i ro ,l. Iruiir.:lly,
they have very little i inilier. Wells Far",o Banik also ol'leredl to 1iinali'zn t hlir
Investments but they have noI capi il.
Ruli1!
The native village of Rulby is located o(n lhe YlinII River, west o(f Fairlbanlcs.
I1 1931. it 1.as a oomin,1ig gold minling t own of .-,l i(pf ) Belp y l 9D.,(e) wlle, vere
2.00. Inov there are al'iut 150l mi' ,t (if wliozi are Alasal n.tliv-. Tint viii;i.:{
shows siLnis of beilg. revitalized by tlheiir liarild wvrkii city c'ipinliil ;inld vill:iL-e
coUtrporationi. T'Flere was a trrallit iii al 11:1li'o ('miii ri] but it iil'r .,l i Int the rily
o{ulin.il when~ n it 'wa.is 1'irnedl. 'Fhie min %problein bloth insl itluti41r fin'e is I:'k of
funds to hire full-limne c0inplrt'es to c.;irry out the d;iiily N ii.-.ii.H-t of liliir^ ,ut
forms and Ig gill.ig legal i;iltlh's .\il li BI.M. As in ,11'icr villa, ...s. e,, o-f tjii' .s;i. i
people srvre on the city c(timlcil as the \ ill;a.ge corjimralioi,. They fI'l ;IS if lHICy are
suiliect to coilflic't (of interest. Two of thi( 7 mi-nitii. rs or tio city ('coii'il a [-. i,''-
natives. Aliout ten non-natives live in 1"iliy. 'J'Fire are no s\'Wt'r.- and limited
electrificat i,,n ; most people have their own g-vieraltors. 'I'lere is ii,, tax :i -i', for
the city and their oily ordinance is fur 'r.':u rl,;' di o-i,,i:l.
The villages were disturlied at the I;E.M nuiti'-e in the ieow-pinpi:i*rs a-kinu for
citizens to idwentiry ea,,oiviuts. To the 'ipeoipl', o)f lKiiiy it indi:ili'd that after fi\-e
years thle BlMIi was in tlhe first sta,.e of land sele.t in,, and that lad(l convcy;InI(.
was a long way off. Fi rtlhernimire, the BLMI had just drawn arliitrary lih1(.s o,
the map for easepnents with no knowledge of the land so that tlie corporation
didn't know if these proposed easements were final or not. The coirpioration fIels
that it is better not to grant blanket easements because they will never get rid
of BLM or outsiders. The corporation hasn't thought about land deveh'l,,l mucnt
because they are still trying to get title to the land.
To date the ('corporation has their funds invested through Doyon, though they
did use some funds in the land selection process. Doyin also did their tax returns.
The concept of a corporation is new, foreign and confusing. T'hey feel that they
have had to learn more in three years than most citizens learn in twenty. Pre-
viously, they had free use of the land and so the idea of private land ownership
hasn't yet sunk in. The people don't think they will develop tlhe :land. so hope-
fully there will lie no land taxes prior to 1991. After 1991 they will have to sell
the poorer land if there are taxes. They wouldd like undeveloped lld(] to Ibe tax
exempt. As for the ability to sell stock after 1991, most people felt that it would
be sold by non-resident stockholders since thliese people would be more interested
in the money than in preserving land, which is the preference of thle resident
stockholders. The people also feared that corporation stock would lie lost after
1991 for bad debts. liens and welfare claims. Conceivably, the state could end
up a major stockholder if welfare recipients were forced to turn over their assets.
They felt that the community would lie opened up to non-natives if there were
oil and gas exploration or if a road from Anchorage to Fairbanks were completed.
If roads are constructed, hunting would diminish. If the proposed easements are
accepted, non-natives would have automatic access. Presently, most people exist
on a mixture of fire fighting and pipeline work. commercial .filiiii. in sinnmr.
subsistence hunting and fishing and food stamps. Very few have full-time jobs.
Among them are road workers, 2: store clerks, 2; plst oftfi'o, 1; and t';ir'l(.iers, 5.
The people of Ruby are faced with a dilemma :
1. road=-developmnent=influx of non-natives.
2. no road=no development=no employmont=no non-na:tives.
The area around the village is good farm land for wheat, barley and potatoes.
They would like to develop thoe la nds. The c)orlworation could set up a ioint
venture or lease the land out. They will probably develop it in co)njunction with
the regionnl corporation since it will lie on a large scale and they don't have tlhe
capital.
Bcring .qtrait.q Natirc Corporation
Land speeinlist. Ms. ITynnoe.. einplnined tMant the Corporation had been held
to a very tight schedule in making land selections; howeer, tlie B1L.M was nit
even adhering to a time table. Land conveyances have been IIe(ld ulp ihndeinitL-ly
due to lack of BLM guidelines over easements. Thlis delay laas s!,ippedl all dle-
velopninent and Tmo4t erploration. feel tliat they cannot wait. Anu'i,, tlhe more
objectionable easements are coastal e:.vi!enients. Berinz Str.ails haq 1, voillares on
thle cost. Such a 1ilanket easenn'it will lie det'imiental to their livelih,,Od. Uninder
a state law, fishermen must be 300 feet apart. If non-natives hli\e free, access,






58


they could intrude on accustomed fishing spots; in the worst case native and sub-
siktence fikiermen wvoufld have no place to go. In the case of St. Michael's there
is an enaseiijeiit around the entire island. The corporation particularly ques-
tions \wljy native hid are rfceivin! different treatment in Alaska from the
treatment given private land in the lower 48. Their lands should be conveyed
first and then they will negotiate e;'-o ments with just r-olipensation. If blanket
ase.ment.s are riven, it will diminislh the original 40 million acre4 given by Con-
gress. seriously undermining the intent of the Act. Again the recent BLM ads in
the newspapers urging citizens to stake out easements shows that BLM is in
stage one of the easement proe.os when easements have been under discui.sion
since the fall of 1973. Furthermore, the Corporation feels that the Secretary's
recent orders do not conform to Section 17b on easements of ANCSA.
Th!e corporation selected their lands for their possible mineral wealth (florite,
beryllium, tungsten). There was a lot of existing information on the area since
Nome is a mining area. The village corporations made their own selections, but
the regional corporation indicated possible mineral wealth to them. The villages
will be dependent on D-2 lands in order to continue their subsi'4tence activities.
The regional corporation employed village corporation coordinator who helps
tliveii pr,.pare their budgets and invest their funds. A viable development op-
portimity for village corporations is business development such as fish co-op,
retail stores, and fuel storage.
The village corporations have also made a number of high risk loans to native
stores. These native stores were formerly financed by the BIA revolving credit
loans. Under ANCSA, native funds are not supposed to substitute for pre-existing
federal programs; however, it is clear that in this case, capital substitution is
ore11rrinT. that is. native capital is being substituted for BIA capital. The co-
ordlinator felt that loans to native stores was an interim activity for the village
corporations. He admitted that the intere.st rate was lower than the return on
certificates of deposit. The village corporations have alqo invested in a credit
union so- that their stockholders can get loans. The village corporations have
bought out existing b1usinosesp, and backed fish co-ops. This local community-
oriented investment was justified by the fact that it assured more native control
over the local economy and that it increased the economic well-being of its
stockholders.
IRA councils in the region have performed certain profit activities such as
backing stores and reindeer herds. However, the councils are presently the tools
of the BIA under 638. There is a real question whether each village council can
be a prime contractor. This would increase the administrative costs and BIA
doesn't have the funds. It is probably better that some villages band together for
a central administration. If Kawerek. Inc. received the funds, they would go
farther and be better spent. Kawerek is the non-profit arm of Berinz Straits.
The bigestt problem B.S. Corporation faces is the nconveyance of land. In some
cases there is no reason for the delay. For example, St. Michael's was a former
reserve and has been surveyed. Under the Act, the lands lost their trust status
and are now public lands under BLM until they are transferred to the village
corporation. Since BLM has control, it has been impossible for the village to
limit the influx of people to St. Michael. The government told the natives their
lands would be private. However, the government is refusing to apply the laws
and procedures that usually govern private lands. Why not use the same laws
that apply to easements in the lower 48? Floating easements and energy ease-
ments are grossly unfair since they are without compensation and will affect
fut iti re economic development.
The "7i" r-venne sharing provision of ANCSA is a good thin. AFN has at-
tempted to set up a Commission to receive "7i" monies. There is no agreement
yet on how to define "7i" monies, but in the end such a mechanism will keep
regions together and they will know each other better. However, the largest
source of "7i" revenues is mineral wealth or non-renewable sources. At the pres-
ent time mineral resources are taxed so heavily that there would be very little
revenue to share.
Mr. Trigg thought that in time some village corporations would merge due to
la.ek of capital and management personnel. Mergers on a regional level might be
10 to 15 years down the road. When asked why the village corporations chose
to be profit instead of non-pirofit. Mr. Trigg thought the emphasis on profit
corporations had come from Congress.
Bering Straits Native Corporation lihas $45 million in business assets. They
have formed the Alaska National Bank, they have invested in a truck transport
company, a cement business, a construction business, trailer sales, and a coastal






59


barge line. Of the $24 milliori rereivc.(l fr,,I, fll- nativ.,t fund', 1 milliIn w.is
invested ill these liisiie...es u ld tin riii.iizlher i-. in ti, k ... Ir. '1'rigit et pr,.j..>.d'I
the hlmi4 thatIt B. S. t',rjifrationm would bli in gdl .s.li1ijH bty 11v .-o tilat thle
stovkhiolders wouldn't want to sell ,r w-iildl se-ll to thie ('frIr-:i,, i first. One
goal of the 'orlporation is to generate as many jtlbs in (lie ri -i.i :i s p..'...iilei
through their ienterprisev-s. This ili? t ;alst iiifluince the st.<'hkl ,,I,>er- 1no1t to :*.:l
out the (Corpoiration. Presently, the B. S. ('Orpiratiiin is mtraiiiig m-,n iliro' gh
their moin-protir a;ir Kawerek, In'. Last year Ilhy \%ere the larr,.i-t riiziirity
employer in the state. The B. S. ( or(r:tril li;is. no pji)siI ion ,,'i whli ll 'r gra e.l
is suirtfa'e or siillsurface. In any ca.,i., they f;aor free iiu.- of gravel f,,r village,
project s.
Mr. Tri.:z f.It thhat tihe snrvival (of A.lnsknt nIiaiv.s < .lu'pdcii< fin their l'il. The
g ,overiniiiit Igave llh ii -4( inillioin :ar.s a id li,\\- i-, tryiii to li;.ure tl lPi W to
get it back. The influx of ijii-i UatiVC.s i- ;i threat to -l-Wi-ti.< ;itisii .,. Din'
to coinltKtilionl witlit iiini-nativLs. the hti tl of tile SCA..Ii 11, I 1i1a l tc11 Cut (1 \Vlli.
Tlh 're is ; inr:itiriuln onl s.a:l ndi(l \\:;l ri' --:g hlillitr is limiteil to five se;(l. S ruiidvetr lhenrds aret in D-2 lands and if nati1e.-, are not allowed to u-1 D-2 l.iild.s
they will LIhave no place to graze the reindeer.
Sit txuilak afireie Corl.irotiOi
The Sitnastnik Native (',rlpornition is the largest village eirporattion in the
Being Straits regimi. It has 2.049 .ticklioldlers c,,nipared to BSNC. (;,' It is
the village corpiration for Nonii. Nnit, was; fouindedl duri;i. the grold rirli daysi
f the last century and liat s lt-.t destroyed ;a iniilber of times by fire :lid lii.fh
tids. It has practically no sli iiip.pi facilities, only 4 ,lr'ar arrive .cli year.
Today the main sources of eiujploynmeit are gm-ermin,,nt, minimi,. tourie-i, aild
service.,. Alni,-t every ie in t,,i\\i en-a.t_ in sul.iteii', aetiviti'. to "uzii:'r.: ,1
tliir inconime. Most of their cash inc'nit's g,,es to buiy fuel. Present population is
3.000. of whom S) percent are natives. Many villawiers m',v, to Niiue in tll-
winter and hack to the village in the sunnim.r. Aliout half of sitnasiak's -4to(k-
holders live outside of Niomne so it has lieen difficult to obtain a q iriii n f,,r
meetings or even obtain enough pro\ieu .
The city of Nomne has a city council. Half of the council members are non-
natives. The townsite for the city of Nome take-s in 52.5.45 acres. It has no
place to expand 1ei-ause it i- surrounded by patented mining claims. The village
corporation is reluctant to convey 1.2,S0 acres to the council.
Instead the village corporations would like to establish another municipality
and relocate the city in order that the natives hiold on to as nich I:!il as
possible. One of the difficulties of the Act is that it was written for rural village-,
not urban villages such as Nome.
The village corporation has received .3. million to date; .$600,00 has been
invested in business and the re-t is invested (Iing term) with a a:iilk. "lTe
corporation prefers investments in the local area to build the local economy as
compared( to the region. Among the business ventures are investnments inll the
credit union, in a native store, in office space, in stocks of a cement operation.
in construction of houses, and apartments, and in real estate in Nome. Other
possible economic activities to be developed: residential leasing. alrtin int
buildings, reindeer herds, and tourism. So far development is being he'd up
by the BLM's not conveying the land. Since Nome is an urlan area. the future
tax burden on land will lie heavy because the city and bor,,ough will have to
provide certain services. There is a T)is ilility tliat taxes n.y f,)-r, la d Iiv. *'.,-
ment, but alternatives to selling of land are being resea relied. Undovelopld land
should lbe tax exempt. Con-ervationi t4s arnd native groups would prI)dbably support
thi,. There is a real divergence of interests between villagers. a nid non-villainers.
It is possible that at least 30 to 40 percent of the stock will ,pa-s to non-naitive,
after 1991 (based upon present corporate procedures). The corporation shriuld
have the first option to buy and when someone d(lies the sto.k should lbe, awarded
to the children born after 1971.
The corporation was entitled to select its 212,4S0 acres from a withdrawal area
of 4S0.462 acres. However, in this 4,0.462 acres, 525.4-,5 acrel bloni to the eltv
of N,,me. 33.000 acres are patented mining claims. 16.000) aeres are uunilinteut.d
claims, and 5.000-7.000 acres in native allotments. The top priorities for clio~iniL
land were mineral development, subsistence use. coastal use. and traiiportatioi,.
110 miles of existing roads which announjt to 2.G GG acres., were alri:ady inr exist-
ence before selection took place. However, BLM has req uested over 3o vn-9n cntZ.
The corporation feels that corporation land is being classified in(onsistently to
suit the federal government's purpose.







60

For the purpose of easements it is "native" land to be taken for the asking,
without just compensation. For tax purposes, it is private land which should
bear its fair tax burden. The regional corporation told the BLM not to approach
them on easements until the Department of Interior guidelines were out. Any
easements are bad because development of resources within an easement is re-
stricted. BLM also has limited finances to manage the land asked for under ease-
mnients. Presently the corporation has entered into agreements to lease rights of
way on their lands. The leasees are liable for all taxes. They have developed a
leasing policy for campsites. All campsites are limited to 10,000 square feet and
non-stockholders must pay. According to the corporation land specialist, the
Minerals Leasing Act says that gravel is a subsurface mineral
Go7o vin Village Corporation
Golovin is an Eskimo fishing village southeast of Nome. It is located on one of
the best natural harbors on the western coast of Alaska. There is speculation
that the state will put in a deep seaport. In the old days the village was the site
of a herring plant and served as a gathering point for miners. When the miners
left, the natives settled in the area. About 125 people live in the village. There
is a grammar school and a public health clinic. There is a fish processing plant
and a fish cooperative of 40 boats. Men from the surrounding villages of Elim
and White Mountain participate in the fish coop. The annual number of salmon
caught has been running about 55,000 (1973-74-75). The fish processing plant is
being expanded with a loan from the village corporation and from the State Rural
Development Agency. Besides fishing, the villagers hunt migratory game such
as duck, bear, caribou, and pick berries on the lands surrounding the village
particularly around Fish River, which is out of the village's land selection area.
In Golovin there is a city council and a village profit corporation. A seven-man
city council was recently formed and it absorbed the traditional native council.
There is a mayor, vice-mayor, secretary-treasurer, clerk, and policeman. The
latter two are paid out of revenue-sharing ($9,000 per year). The city council
also leases space for a BIA classroom and the P.H.S. clinic. However, the council
provides utilities for the classroom and clinic, and with the increase in the price
of fuel oil it is losing money.
City council employees have received training from Kawerek. Inc. Both village
funds and CETA funds are used to pay the local policeman $200 a month. The
council has ordinances against liquor and dogs. They have no legal counsel.
The members of the village corporation couldn't remember when they had
voted to have a profit corporation instead of a non-profit corporation. There are
171 stockholders: 121 lives in the village and the remaining 50 live in Anchorage
or the lower 48. The corporation has received $240,000 from the fund to date. At
least 50% of this was invested in the Bering Straits Investments Company. They
can withdraw this money at any time. They estimate they are earning 10% in-
t-rest. They also loaned the fish plant $10,000. Administrative expenses for the
corporation run about $20,000 a year. There is a part-time general manager and
secretary. The board receives compensation for travel and per diem. They use
the Bering Straits lawyer. They have selected 69,000 acres with the help of the
regional corporation. The land was selected on the basis of subsistence use:
berry-picking or hunting.
They need more land to maintain their current level of subsistence activities.
SO percent of their protein comes from subsistence activities. They were not able
to claim the best land for hunting due to the compact and contiguous requirement
.of the Act.
They feel that the lands they chose are worthless, mountain tops. They felt it
was unfair to give them worthless land and that when the Act was passed it was
a sorry day. They hope some of their mountain tops have minerals (but subsur-
face goes to region). They chose some land at the mouth of the harbor which
they can probably lease out. The BLM has asked them for trail and coastal ease-
ments. Coastal easements will create a problem for the village fish camps. The
members had not thought about future taxation of corporation lands or future
.gale of stock by natives.
Ifou.ning
The city council applied for ASHA honuing and received 10 units under a
self-help program. Recipients constructed the houses by their own labor. ASHA
clintr es the recipients between $13 and $S5 a month depending on income. Later
4the city council received an additional 10 units under a BIA program. They have







61

ihad difficulty In completing 5 of these homes because the BTA wage, Is $6i an hour
Coimla red to PHS's $10. Recilpients of these houses own them outright and pay
nothing.
Unakaleet
U'nakaleet is a large Eskimo fishing village on the western ciast of Ala.-ka,
solltheast of Noine. It is also situated on a d(lta of linth '11nkailect River. It lji.s
lbeen inhabited for thousands of years, according to the Ioal c .I Elinmo leaders.
It was a former BIA reserve enconmpassing S3'{0 acres bl'epore te A.\(t. I'Iil:tiotn
va:ries bIetween 600 in the winter and 1.004) in thlie slimmer. The village has close
ties with the surrounding villages of Stebbinis aiind St. Miclimel's.
Like Golovin, there is a lisli JIro(.cessiug ilant and a fish co,qp. The pliant was
recently purchased by the village corporaition fr in an indlividlmal who d-efEfiilt(d
oln hiis debts. Aiout 100 men participate in the tisli cooi. As in Gtolvin, l i. in-
halulitaints engage in i,-iiiistencv hunting in their areas, "' of thliir protein diet
is iq.lpenddent oi sulbsistence activities.
I 'iakaleet has a city council, an active IRA council and a village corptmraition.
I'nlike other villages. they have a coordinator for (lie 3 entities. Tlie membe .irs
siid tliat it would be a lot eaier just to have one gromip. Now each -"rimp lh:as dif-
ferent responsibilities. The IRA council participalmted in ]Fderal revenue shairiTil,
until 1975, obtained fuel storage facilities under RDA, invested in the fimliry
with a SBA loan in 1904 (plant was wiped out by a high tide), ol)tainicl w:iler
a_1d s.-wers through PHS, and TGDP .ira;nts of $12(.00 :tind -52,02)0. The IRA
:ilso lohs a musk ix farm through a Kello-,L grant. Tlie IRA formnerd( a fishing
cnIp with a $50.000 lbusines Lora nt umider Indian Fina tci pg Act. IRA :also runs
a native store with loans. from BIA Revolving Lomnn Fund. Thle store alnso has a
.4O00(IX) (?) loan from SBA. The dynamism of this IRA council is largely due
to its leadership.
Currently, the IRA council is looking at some joint ventures with other villages.
They are particularly interested in starting a fish hatchery and would like advice
on bow to go about it. Tle council members present felt tlhiat thie cimnunity
s i uld contract directly for services and programs and should decide how to
siend their money. They are very much aware that they are competing with 2(Oo
other villages for benefits. With all the regulations for various programs they
c:n'r be run by volunteers. The city counneil was formed in 1975 and the transfer
of funds and functions from the IRA council has not )been smooth. Tie village
formed the city council in order to gain control over their own affairs; the state
did not recognize IRA ordinances. The city council is eligible for state auil
Federal revenue sha ring. They lost state fire protection and funds for rereatiom l
ii;irks because of lack of information and failure to show that they had spent
village funds on these items. Since they were just formed they couldn't show
that they had spent funds.
According to the members of the village corporation they have -41l stnockholders.
To date they have received $1.3 million, half of which has been invested in local
ventures and half in 1Bering Straits Investment corporationn They have no cer-
tificates of deposit. Their basic philosopIhy is to develop first whant they have
neanrby. Accordingly. they gave a $26-;5.000 loin at 61'.' percent to the fish coop
which the coop has made loans to 100 members for repairs and supplies, they
1iU--Lht a skew, they have taken over the fuel diutrilution franchise. Non-locally,
they have invested in the Berinz Straits Native Corporation cement venture.
They have invested in the IRA native store. The store is affiliated with a pnr-
rlchia-nin coop in Seattle which is used by 40 other native stores in Aaiskin. In the
futu-e, they would like to build an apartment cormplexy for the high school terchers.
in T'nakaleet. they would like to invest in Anchnraire real estate. They feel that
the ztnte is going to push off the social services on the village corporation.
The village corporation members as well asq the council members wore con-
crrvd about the future of their suhsistence activities. The lands they have
ezlocted. 160.2SR0 necres. are not sufficient for subsistence. They need access to
0-2 linds. They also oppose the proposed easements because they feel the land
should be conveyed with no strings attached. The land they were allowed to
select was selected anccrordinz to traditional use. There is a pocsbilHitv thlit the
T'nakaleet River will be named a Wild and Scenic River, and this would diminish
theirhuntinz in tlinat area.
Thipy would like to dlevelorp their land in a controlled fashion. It haI rocreation-il
-val]:e hee,-nse it Is sceyhit iand affords sports fishing. They are in no rush to (lo'velop







62

their lands and feel as if they are being forced into the capitalistic system. They
feel that if they are forced to pay property taxes, they will lose the land. They
wtmuld like the tax exemption extended.
Amnuong the laws which threaten their subsistence activities are the inigratory
bird law. It interfers with customary spring hunting. The Marine M\Ilumial Act
limits the income which native families can obtain from seal skins. There is ;i
restriction on the number of seals allowed, and on the time of year they .van
be taken. The seal population has multiplied under such protection and hos
started to pose a threat to the fish. Those villagers who engage in commercial
fishing are not allowed to engage in subsistence fishing during closed periods.
Some villagers are not able to catch enough fish for families' subsistence need'i.
The limited entry law has helped the local fish coop and fish processing plint, by
excluding non-natives from their fishing area. Since the village had a long history
of continuous fishing, not many people were excluded.
Among the recininni,(lations for amending ANCSA were:
1. land tax exempt for 100 years,
2. ni five allotments should receive restricted title (they will),
3. the village corporation or IRA should have the opportunity to buy na-
tive allotments if they are offered for sale.
4. they would like to restrict the sale of stock after 1991 to natives or the
village corporation, and
5. they would like stock issued to children born after 1971.
Kai:crck, Inc. (non-profit arm of Bering Stfai'.? Coroprato:i)
Mr. Madden said that the corporation was in considerable financial difi.eulty
due to recent expansion which was based on unrealistic cost estimates. Ad,1mini-
trative cost are high because transportation is expensive in the region. Travel
is limited entirely to charter planes. Also it is cxtn'cey difficult to keep ti;'.i;!ed
personnel because as soon as someone is trained they leave for higher wages else-
where. Help turns over every four months.
One of the largest progrmnjs is job training under CETA funds. Ties:e funis.
especially title III and VI come through the state, which takes an administrative
cut. It is necessary to use at least 18 percent of the funds for administration at
the corporation level. In the Nom.- area even 30 percent would be more realistic.
Job training in the city has been unsuccessful (25 percent coqp Iletion rate). How-
ever, in Kawerek's local program the completion rate is 75 percent. They are
training surveyors, truck drivers, carpenters, mechanics, cl,-rks, plumbers, and
heavy equipmei)t operators. Recently, Kawerek combined DOL and BIA ininey
to start a program to train commerce ial fishermen. They purchased seiners to go
after bottom fish. There is also a job hank under CETA funding. Kawerek also
started a savings s and loan association. They have 1,200 meml'ers. The savings and
loans has some unique problems due to seasonal employment and the (lepedience
on subsistence activities. The savings and loan accepts payments in kind and
periodic payments as compared to regular. They recently lowered their d(lii-
quency rate from 26 to 17 percent. EDA recently gave them a planning grant to do
OEDP's for the villages. Kawerek is trying to promote cottage in(lustries and
would like to start a tannery for seal skins so that natives could capture in-
c:eised value in the commercial market. Now the natives must have their skins
tanned before they can make native garments. They applied to hte BIA for 1usi-
ness grants for arts and crafts. They need money for marketing.
The arts and crafts program has raised the price for native craftsmen. HoIw-
ever, there is a need to convince the craftsmen to concentrate on the most sale-
able items.
Kiwer.k also operates the Nome Receiving Home for children 6 months to 18
years and the Boarding Home. Both of these programs are a serious financial
drain on Kawerek.
Some of the financial strain at Kawerek is due to the difficulty in complying
with federal regulations for programs. Contrm-cting is alw;iys on a reimbursable
basis. After Kawerek contracts for a prozr-im usually some of their costs are dis-
allowed. Kawerek tries to get as much of the funds adv(lan(ced as pIossil)le in order
not to shut down the program. The rei fulations, for filing applicati(on-1 are nlso
burdensi ime. Applications have been rejected because they were filled out in black
ink instead of blue or were stapled in the wron-g place.






63


QL I-sTIONNAII:I .I

('11(G,(;IUNO I.IMITI .l, P.O. BOX 2.17, IAll.I.M.IAM, Al..A-K \ No. 91'176
Qrst1io 1. What is deveh'wilpnlt?
A s\ etl. EIxc'tell lit lutsl i.Il. It dp.,nls (Hi thle vi,.w of tlj,- lookel r. In t1ii- ca:se
A.N 'S. li ,s halter inenid tfluff it is flit, lililiz lioim of vill;L:, l.tn.11 -, ill .,1, 1-1n a IIalillfn r
:1s to in i'c' iase tilne t4l it,"ty of tta'il villa;t. shair.hl ddl r. Tli. is k ilI ; it del ,.oe1n11111lit,
]i!rp- .itii n }ulll though thlu Act -.n':lks of .i'- ,-. i', it lJ:nild:f .-. thiIatl 411 \\aI y
of life m .i.t ldin so thi t a, i tlt.r ,';Li live.
Qui'.,fion. 2. Is there a p.1articillar kind of "d1evelopmeIt" 'Ili',h is li..' for your

.A swevr. Sure. k\ vis,, .i141iciois utili';itioil of r!-'ui m r f,,r l ,i-,. I)irpi$,J4-
wh clih ric4o1-iiz.i-s nil til* \:linis of (it- laik l ioj ",lilni cultur.il, li.'iricail, lhialiiat
w.d l tIn, dlinr nioii-tcolloinn \;ll',, ;iinl .;1 i\c- s thn-i, equal \\%,rllit ill tile (d iti.
pror'n ss.
Iu/t iti'n .3. 11 N is tl I I ril-ial co111uncil Iioro [ ii. t i is (level liiuiIit?
Aln wer. The directors of ,1'ir ;.'v'iloiiiiit :or( .1 l)i,;ird of 9 invriibnirs who a like .'Lly ir, ',li( 'orjor 'ot'Ii 1a;ii'l of direct I-. They a punttiii-, to_,oli-r a r<-
.-Irinc i villltory of villn:it' si l'ct,'d liiu'ls aid liow. to 11.ik1e th ir dulvlaiiuz it
lal is 4n'i,,sistti.t \%'itl ;ill re s.hiirc' aIlic.s. Tit' hitch c( on1 s \% l i you p tiali z that
li',liI is the l sic g(oall.
t,,'.'wti ni 4. W hat g 'iveriuiii(init ."gein is or ipriv.ite instit iit i s are ii'roiii igIi
Ili- df'. c~hl~ieitiei ?
.Aii.swver. 'Tilt- nmajor liuildulrs in our nrea :ire HIn' tr.i-,)porttii) i ni-nci.-s Avi;-
ti on al ndliglhways. Tlt, BLM sdlilhports their role. This is lica.i.- our i.ajoir rn-
sliln-e value is gravel. Our limnii'er (1 ,s not rate private attelii indl onLly our1
fishlery ial:iittatcan lie h1 rfla rd -xf rnil, ly v.illl lili,'.
Qucsfti,,i 5. What are' the mt ininrtant ol)sta;l:.s to your dvel(ipi ln.iit?
Answer. The Bureau of L.a iul MaaLt.lemenit will nIt convey the land(1 to uis to
imaniai e and they do ht have the time or iitiertt to iiu:ri:ie it theiii-selves. As a
.sulnir, their, m ina.'lgencht of lands selected by naltives falls into limiiho and little
inore 1f-s canH lie made.
Quc'.ti,,'i 6. HIow can these oblsta.les lbe removed ?
.\Alsw\.r. Congress must force BLM to lp y as mu1i.1 att,.nti,,n to di.Hposal )fr lie
li aids (lI inrLid to tlieir niia lnageni.nt an they do their own vi ;(1 i:I nunaement reso(Iun-
sibilities. To date they have niinimized their disposal role and the result is na-
tive lands are in legal never-never land.
Qu.estin 7. What pro-zTrani or laws would best promote (l1tveloplnment or remove
i:fe ollstacle, to your develop, qm1nIt ?
Answer. A program to enmphlasize disp,,nl (of village s.e(l.ted lands by tlhe BLf.
A program of technical assistance and grants for the development of lnnd man-
-agement programs. A program that increased potential for native kids to
'c',me land l managers, iloiit s. foresters, etc.
Qnc-O.'tioin 8. What kind of protection do yon have for your resources? Please
include any codes enforced by the tribal government.
Answer. BLM hlias control now lint they live a treslpas:s officer for 200 million
ncres and thousands of miles. Our protection today dep'lend(s on inalc'essilbility
and remote location, an advantage that fades rapidly. If villa ne Li1inls could li'
developed, they could support closer nionitorinZ, but until BLM acts we l;have no
p-,wer. Our Iard has land use rules. and Iprocesses but our ownership is so
limited by BLM inaction little can lie dne.
Question 9. Does the BIA provide adehluiate resource protection? If wit please
explain.
Answer. No. we have no direct contact with BIA. resource protection programs.
Que.,tion 10. Who is the principal offender in depleting or damnaging your
resources (State, private corporations, local non-Indians. others)?
Answer. State and private groups now work through the BILM, so they are the
greatest enemy. However, local population growth has led to more and liore
local trespass, and while the land can stand some abuse, unless we gain control
and develop a mrnanagemnent program. we will lie eaten from within too.
Que.stion 11. What do you think the American In(ldiain Policy Review ommnifsion
should be doing about reservation and resource development and protection?






64


Answer. Encourage education programs to develop native land managers. De-
velop systems for resource inventories on native lands that recognize non-econijlnic
values too. Force the BLM to promptly convey native lands so we may escape
this limbo status.
Note: We would like to know how your returns on this inventory have gone.
We are a village corporation created under ANCSA and some of the que.-sti,,is
oriented to TRIBES do not quite fit our situation. However, we answered as well
as we can and would like to know what other folks think also.

MENDAS CHAAG NATIVE CORPORATION-SUBMITTED BY
MS. MARGARET KIRSTEATIER, VILLAGE COUNCIL PRESIDENT
Quc.tion 1. What is development?
Answer. Our Council sees development as pertaining to our people. To be free
from Dept. of Interior interference and restrictions to develop resources froim
our land in such a way as to benefit our people. Directly improving our economic
position of poverty to a level of our non-Indian neighbors.
Question 2. Is there a particular kind of "development" which is best for
your people?
Answer. Our people wish to develop our resources as stated above and, at the
same time, retain our traditional customs. For those who wish to retain sub-
sistance life style from the land, give subsistence resources a priority for
development.
Que.st.ion 3. How is the tribal council promoting this development?
Answer. As in the past the Dept. of Interior has not conveyed our land to our
people. We can do nothing regarding development of protecting subsistence re-
sources until Dept. of Interior (BL.M) gives patent to our land.
Question 4. What government agencies or private institutions are promoting
this development?
Answer. There is no Indian development on our land at present. Due to delays
in BLM conveyance, no development or protection of resources has been given
our land in the past of all. Much of our timber has been sold to non-natives by
BLM to state of Alaska without any benefit to our village.
Quest-ion 5. What are the most important obstacle to your development?
Answer. Conveyance to patent of our land, BLM restriction to native develop-
ment, fish and game laws-these give no protection from non-natives hunting on
our land, and making proposed public easements across our land.
Question 6. How can these obstacles be removed?
Answer. Possibly by combined pressure and lobbying by our Regional Corpo)ra-
tions on federal and state levels. Expensive court action toward Dept. of
Interior for protection of resources upon our land and early conveyance of patent
to our land.
Question 7. What programs or laws would best promote development or re-
move the obstacles to your development?
Answer. Technical, legal advice-money to hire legal aid to take action
against Dept. of Interior and BIA to protect our land, resources and rights to
be protected against trespass on our land and resources. Self-help programs with
expert advice.
Qvr.'.tion 8. What kind of protection do you have for your resources? Please
Include any codes enforced by the tribal government.
Answer. BLM and BIA have given no protection w1afever to our allotments,
land or resources despite protests and claims filed in good faith in 1917-1934-
1950 with Dept. of Interior. Native allotments have been trespassed on resources
sold, given to non-natives, burial grounds patented to white men for recreational
sites, and timber sold by the state of Alaska. BLM has ignored formal requests
to remove non-natives trespassing on our village selected land as well as native
allotments. Our people are poor and cannot take legal action.
Question 9. Does the BIA provide adequate resource protection? If not, please
explain.
Answer. In past as our records show, BIA Realty Dept. has failed to protect
our allotments from trespass, passing the complaints on to BLM.
Qupstion 10. Who are the principal offenders in depleting or damaging your
resources (state private corporation, local non-Indians, others)?
Answer. State in past-with eviction notices given to our people to cease all
occupancy and use of our village lands. State sales of our land to others. BLM







65


sells our lands, including burial grounds to whites and local non-natives, whc,
trap andi hunt g.'ame on villages lands.
Question 11. What do Nou think the Anmerican Indian P ilicy Review Co(mmis-
sion should lie (ldoilng about reservation alnd rest.ource developimntt atni j dpitl,?
Answer. To persuade Congress to remove Jurisdiction of Indian land.s frjuii
Dept. of IDitrior as well as social services and education. Start a ID)ept. of India i
lands and s,)cial and economic services run by Ind(ians. Federal laws with teeth,
to protect Indian resources and land. Make laws wliich Italian trial 's. la;nd1, airI
villages could use to bring suit against BLM and BIA for neglecting to protect
Indian lands in past.

SEALASKA CORPORATION, 811 W. 12TII, JUNEAU, ALASKA
Question 1. Could you estimate how many acres have been traditionally used or
occupied by Alaskan natives in your region (or village) ?
Answer. Approximating the land( usage ,around e;ich of the listed villages p1,4
Juneau, Sitka, Ketlchikant, and Wrangell we would estimate 2,4)00).0(0 acres of
intensive use. Actually the whole of SE Alaska-24.000,00 acres-have bef-i
used to some extent.
a. Do you feel that the land which you will select approximates this am iount?
Answer. No--the natives of SE Alaska will select appl)roximately 5010,000 ac r.-
for fee ownership. (276,000 for villages and urban corporation-remlailde('r
Sealaska).
b. Will traditional subsistence activities be disrupted by the amount and tlhe
manner in which the land will be selected? How?
Answer. Assuming the laud not selected remains in the National Fore4t, tlip
existing sulisistence activities will essentially remain the same insofar as land'
ownership is concerned.
c. Do you feel that the U.S. government withheld excessive amounts of land
from selection for the national parks and oil reserves?
Answer. Yes.
Question 2. a. How many of the 40 million acres awarded have been selected?
Answer. As of December 18, 1975, all 38 million acres allotted to village cor-
porations. and Interior Regions had been selected. Additionally the four urban
corporations have selected their 92,160 acres; approximah-ly 250,000 acres of
allotmhnents have been selected; and a number of Cem. and Hist. sites.
b. Has there been any delay?
Answer. Selection progress. acceptable-Statutory requirements. However,
Interior's issuance of "interim conveyances" (patents) stretches the definition
of "immediate" beyond reasonable interpretations.
c. What effect will these delays have on your corporation?
Answer. Inaction by Interior re: Easements, navigable waters, etc. Genoernil
procrastination and resultant loss of rights. (See newspaper ad re: easements).
d. How many acres has your corporation selected to date?
Answer. If Sealaska experiences the same delays as the village corporations,
we will be delayed over a year in start-up of our timber operations.
e. What percent is this of the total to be selected ?
Answer. Approximately 2,000 as Cem. and Hist. sites:. All Sealaska productive
acreage comes from miscellaneous entitlement with December 18, 1977 deadline
for selection.
f. Do you have any problem of non-natives being awarded land or occupying
land that should he open for selection by the corporation?
Answer. Not really applicable--Sealevka will be entitled to select approxi-
mately 200,000 acres in addition to Cemn. and Hist. sites.
Que.Rtion 3. a. What will be the impact of land taxes on the development or leas-
ing of land by the regional corporations?
Answer. Most native corporation land Is SE Alaska and presently outside a
taxing entities boundary. Eventually these lands will probably lie leased and/or
developed and taxed by the state if nothing else.
b. Do you think that the regional corporation will postpone leasing or develop-
ment until after 1991 because of such taxation?
Answer. No-however, any development must return a high enough yie!d
to pay taxes and show a substantial profit.
e. Do you think that after 1991 the regional corporation will be forced to
lease land instead of developing it themselves in ordor to pay land taxes?
Answer. 1991 should have no affect on SG Nation Corporations.







66


d. Do you think that after 1991 the regional corporation will be forced to
sell land which has been put into production or leased in order to pay land
taxes?
A nixvor. See answer 3(c).
e. Given that so much Alaskan land has been withdrawn for national parks
anl oil reserves, do you think that the remaining land will bear an excessive
state tax burden?
Answer. Definitely-unle.ss Federal government begins to pay taxes (or in
lieu payments) cminmnensurate with its land base. Even after all state and
native -4l.ctidins. the U.S. will still own S0 percent of the Alaskan land base.
Question 4. a. What will be the impact of state lease hold taxes on the develop-
ment of corporation resources?
Answer. Resource development will not take place until and unless the return
on investment is sufficient to pay all costs-including taxes-and still show a
profit.
b. Do you intend to impose taxes on resource developers or corporation lands?
Answer. Corporations have no taxing authority.
Question 5. a. What impact will land taxes have on village corporations?
An-;,.er. In S.E.-prolbaly little impact due to valuable surface resource
(timber).
b. Will they be forced to sell land after 1991 to pay land taxes?
Answer. Probably not-obviously, we must continue to monitor state legislative
taxing proposals.
Qu. rtion 6. a. Do you think Alaskan natives should lIe exempt from income
taxes? Why? Should the exemption from land taxes be extended? For how long?
Why?
Answer. Alaska n natives are citizens and as such have a taxing responsilhility-
both income tax and real estate tax. However, some method should be developed to
allow any person to leave his land undeveloped and not be taxed into a position
of "develop the land or lose it."
b. How will an Alaskan native living outside the cash economy pay his land
tn xs?
Answer. Major problem if the surfa.:.e resource is not an economic base. UTnless
some relief is found all private land owners will be forced to develop or sell their
land to avoid losing it to taxing entities.
r. Do you think it is possible that those Alaskan natives living outside the cash
economy might eventually lose their lannd through foreclosure for land taxes?
Answer. Definite possibility under existing law and conditions.
Question 7. a. Do you realize that Alaskknn Native Clainms Settlement Act extin-
guished your hunting and fishing rights and that all hunting and fishing rights
must be in compliance with state and federal laws?
Answer. Yes. Much of these occurred with the coming of statehood to Alaska.
b. What effect will this have on those who depend on hunting and fishing for a
living?
Answer. Alaskan native's hunting and fishing rights did not chianze "in fact"
with pa.issage of ANCSA. Existing state laws allow for subsistence hunting and
fishinfz. Watch D-2 legislation for an impact.
Question 8. a. When Alaskan natives are allowed to sell their shares in 1991,
whi: t do you think will happen?
Answer. Very speculative question. If corporation is a "goinii" concern natives
won't want to sell. Large corporations may seek to buy from stockholders because
of resource and land base.
b. What is the possibility that the shares will eventually pass to non-natives
and the control of the rearional corporation to non-natives?
Answer. Possible. Other factors pertain. Conveyance of patents. If corpora-
tions receive intended payments on time, can then establish plan to retain control
in 1991.
c. How can Alaskan natives retain control over regional corporations after
1991 ?
Answer. Buy back stock from those shiareo-wners who want to sell. Keep such
stock as voting stock controlled by the corporations. Education of all stockholders
and discuss the issue now!
d. After 1991 do you think Alaskan natives should be given preference to the
regional corporations in the purchase of their shares?
Answer. Yes.







67


c. Do you think it would ie advisailde that -it 1,-iast 51, pi-.r(it of thle share's
shuliil lbe owned by Alaskan nmtives ii tfin r,.Zi',,i I coriir:al ii;, ?
Alnswvtr. No stipulMltin .ih 1shohl dbe placed uin l''rcnt il -.liare- to ].e"Ip frotu
dowiigradtling value. HHowever. native, ..slil ul rill ritf:ain .,ii ;1:,ol illn iie ii l;illtr.
Quc'.tiin 9. a. What rights or claims to corliora:tiol reonct-'es d, A.iiskank
natives' children have that are born ;iftlr 117:0?
Answer. Slha:res of stuck inhterited froml J)airents or other sharirownirs ; (otheir-
wise-- inolie.
bI. 1)o you tliink they.v slhmiold have li(ein irovidedl for? ITo\\ ?
Answer. Yes-litit ctiildn't iins\wer li',w. The slu:res ,f or fil,,ra te ii" o\\riip
reiprtsenit land whilih is now o iwled by 10ltii-S.. Just :I.- 1:1tl do'-. if inultijily
to lrovFith1 eqtl:il sliarts to flurcir gfittr:il i,,Ils. so sO hut s r.n. rtrr it i..,t lIid anr'
mlwo a ctillstainft.
Qu< 'tiin 10. ai. how (octs tihe regi,,l' l cori,,raition plan to df f,.1',, it- re-s','inr',-?
Answer. Tinler anid mineral qoiierationus will lIt develoii.d by tlhe 'irjl.ir;!iri
on its ,wii or in joint venture with otlihrs.
t. W ill it Iat1va ,,lit tln' lat d to ]I (] dIe -v lopd?
Ans.wer. Prilably not-Slnalaska wa nts to an i opter:aliniig coml any.
C. (O.n wli.t A-midlitimiis?
length of lease,
rent. royalty l:ymnient,.
mletlhod.s of monitoriti oextr:mftion, and
provisions for einvir(onlintal 1prot'-ti',in. reclamation. preft*rvnt in c.i-
ploynt'lnt.
Answer. NA at present. Control important fetiure of all of our ventim-r.
d. Will it set up joint ventures? If not, why not?
Answer. Piissildy-dte-iendi qing on whet iher thle other partner c:IIn offer :,,methiiig
Senlaska 'an't ,ditaini onil its iwn. But we retain control.
e. Is it thinking of developiing the resources itself? If not, why not? If s,.
what are tihe lii-zest prolihiens in devebp1i:! the r(.-,,ore- ?
Answer.-Resoiirce detvelqipment will Ibv by tlie corlK'iration. Eniviri mimnital
suits and legil active efforts have liven trioll-.eso-ive.
f. Would it eoinsider eontra.cting out tine developm-lnent of rsmoi.Urces siich as in
the Blackfeet-Danison Oil Agreeiment ?
Ans,-wer. l'osibly, hut this is not preferred lby us-now. We piref'r at least a
jiint ventuir re rlation-hlip.
g. How is the regional corporation .-,inz to protect itself arainvt the great
pressure from non-natives to exploit the non-renewahble resources?
Answer. 1Most pressure to develop resounrces will coni, frin within corl,,r:ate
sto'ckholders. Last annual meetingz-motion to ".ret into business Non-niative,
such as Sierra Club. will niost likely try to slow develop w:mnt.
h. What conservation measures lhas the corporations aildojted for renevwalde
resources ?
Answer. No specific measures as ye.t. Intend to practice best current for(-t
nia ll.'etIJeOnt ethliod.- to protect fisheries andil other resi. rcest .
QU-xtifin 11. a. How milch have you rece(iveil iin ca.h from Ala-'kaln Native
Claims Settlement Act to (late?
b. What have you done with the fund-s?
Answer. Distributed to village corporations anId( sto.klioldors qnd invetedl.
c. At wl:at rate have any beemn inve-ted? Whee:?
Answer. P'revailini,- r::tes in gvtenmnitent oanlid.ations and other in-trim(.ints.
One acquisition.
d. Th ave yel iivztel vn 'ny in devo.,lid'r yr ur r-,''-ni-rc".?
Answer. Somni, preliminary stldies,--ni mnjor vca.jital ou1tl:1y to date for r,,-
source devoeloimnejmnt. Timber has large.-t 1,,tential. Intensive studies inm.rrway.
e. If not, do you intend to?
Answer. Yes.
O(tto'fiti I?. a. Are you aware of tihe finanj-ial liro,1,1.-m, of the J.tate of Ala k-.i
Answer. Yes.
b. Do you think that these financial problems mi.-ht aff.'-t y-,u?
Answer. Yes. As state looks for revenue sources the Native Corporati. n nre
very visible and available. Our enterprises,, may lbe taxed.
Qiu'.,lin 13. a. Has anyone exertred pre.-iire on y,'i to ar:ant riibts-,f-nry?
Answer. TLM is witliholil in- nrean~onim le easepmei nt-; anmid in es-n,-r,' black-
mniqin.' enrtwntirnn to .rireo with easements or take a snira-ntial ailliti,,n.l
delay in receiving interim conveyn cnee.
b. Do you feel that you should g'ant righlts-of-way at this, time?







68


Answer. Certain R/W are necessary for public access and will be useful to
the corporation in the future.
Question 14. Do you want to mention any problem in the implementation of
the Alaskan Native Clainms Settlement Act?
Answer. En.seinent Blackmail-Nav. Water. General dissatisfaction with In-
terior. The Department has not fulfilled its role of Indian advocate. Erosion of
worth of money due.
Question 15. Would you like the Commission report to mention any amend-
ments to the Aliskan Native Claims Settlement Act? Explain in detail.
Answer. I am concerned about 1991, at which time Native Corporation stock
will be alienable.

CAPE FOX CORPORATION, STELLA HANSON, SECRETARY
Question. 1. Could you estimate how many acres have been traditionally used
or owrupied by Alaskan natives in your region (or village) ?
Answer. Need a survey on this.
a. Do you feel that the land which you will select approximates this amount?
Answer. Depends.
b. Will traditional subsistence activities be disrupted by the amount and the
manner in which the land will be selected? How?
Answer. No. I believe that Sealaska has taken a good survey on the sites and
the corporations could protect the land which they could make a profit on, if
they want to. (Totem Pole sites)
c. Do you feel that the U.S. government withheld excessive amounts of land
from selection for the national parks and oil reserves?
Answer. Yes.
Question. 2. a. How many of the 40 million acres awarded have been selected?
Answer. We received (corporation received) 23,040 acres of land; what about
the la ids we selected an find after it is already non-patented (taken), which isn't
our fault.
b. Has there been any delay?
Answer. When a corporation has to wait until the person is available and
because it takes time to figure out the best spot, where better growth of timber is
and for the future, we needed outside advice such as Sealaska to assist us. There-
fore I feel there was a delay.
c. What effect will these delays have on your corporation?
Answer. Some delays are caused by our Board of Directors having to make a
living too and working out where it was hard to meet, at times. So a quick meeting
for an important subject would be done in about 1 or 2 hours.
d. How many acres has your corporation selected to date?
Answer. Delays could cause a loss.
e. What percent is this of the total to be selected?
f. Do you have any problem of non-natives being awarded land or occupying
land that should be open for selection by the corporation?
Que.tion. 3. a. What will be the impact of land taxes on the development or
leasing of land by the regional corporations?
Answer. If any other business lenses the land and it has to be taxed or you have
to pay taxes for it, then the taxes should be included in the lease so that the busi-
nss itself pays the taxes.
b. Do you think that the regional corporation will postpone leasing or de-
velopment until after 1991 because of such taxation?
Answer. No, but I hope they hurry things up a little. More since they do have
intellegent mann.gers there to help us to develop some type of business for us
and not keep it idle.
c. Do you think that after 1991 the regional corporation will be forced to
lese land instead of developing it themselves in order to pay land taxes?
Answer. The regional corporation should have a 20-year program so this
wouldn't happen to us. It is our land and we trust Sealaska to not get us in
debt.
d. Do you think that after 1991 the regional corporation will be forced to sell
land which has been put into production or leased in order to pay land taxes?
Answer. As an individual with 100 shares from Sealaska Corporation, I feel
that my land should be clear of debts such as taxes when I have it in 1991. It
wouldn't be fair to put the tax burden on an individual then. Seems that the







69

ffdlf-ral government gave us the land and it slimuld be' undi'r tru...fI.e io we %%ouli
i' .'i-ia r froin taxits.
(. tilen that so iu0h Al:1-kaln lhIand Ias -el.n withldr:twn fur :niilizi;il p';Jrk1
1and ( 'il r.erv s, do you think thal the r. jiinini g land %%ill l,.iar an v:% *- .iv_
stat, tax burlerin?
.\Ansivwer. Naturally, this w uild .c:lu-ie a state tax hiurd'n Sici(' lno iI|'.ini. .,iiij-,.
in frimi i iational parks aind only Ihuo-se \\hi, are nimhlv Id in il rt r. I wi lli
lientfit 1ily this.
Question 4-. a. What will lIe the impact of state lease hIld taxes on the (dvel"'i-
ltn t of corpl ration reouil rTes?
.A\iiwer. We already kiinw lit state is going to try us as s'ion as we(, sll (ilir
tii,:l'tr.
h. Do you intend to impose taxv'.s on reov.oirfe develij,.rs ,,r corjiiit,(Tion l:idl'.?
Aniswer. W ho's akiii tin' h ie -tion? We are a ce< iJrpi!';i iin liin'* ill S.i N1ihL1i.
Quc.stion 5. a. What impact will land taxes(. have on village ',ri>ratli,'n.iis?
A.u.wer. Very techlinial qu-.lIion. .1ytind my iltllect. Nved ain atlor -.y for
tl'i,.
/h. W ill they he forcorl to : .ll 1.nil after I'.991 to Ipayl ind t;a xms?
Aii-wer. Tlhis (vill;iiP (orrlora.tion or who?) has to he. in.lud(iA in tlie bi.-.i-
ne-;, to eliminate tli future ierobvbhns. Why can't land ie in trust?
( uerfion 6. a. Do you think Alaskan natives should he .xemipt from in come
taxes? Why? Should the exemption from laud taxes be extUededd? For hiw lung?
Why?
Ai.-wer. No. I believe we would definitely have social problr ns b.cau-e we
wouldn't be equal. WVe just lhiail wAll siui..'l up for a reserve tiin otherwise.
l). How will an Alaskan native living outSille the ca-h ,c,,nomy Ipay his land
taxes -?
Au-wer. Prolianlily RBIA could lhelpii us. to project an individuals; they can l.n-e
the intid to interested people for campground cabins for a live year la.se or
whi;imever the owner a.-roe..
v. Do you think it is ,o..ible that tho.e A.lank:n natives living out-iide the
ca.h economy might eventually lose their land through foreclo.-ire f'ir land
taxes?
Ane;wer. No. They can get protection by their city council or corporation if
so desired for a continued busine-s. unless they would rather sell it for money
beca-ii e they may be too old.
Qu.action 7. a. Do you realize that Alaskan Native Claims Settlement Act
exrin'.mruished your hunting and fishing rights and that all hunting and fishing
rizi:ts must be in compliance with state and federal laws?
Answer. Yes. We can't hunt on our own land. That's ridiculous.
7'. What effect will this have on those who depend on hunting and fishing for
a living?
An-.wver. This has been going on for a few years now. I thought the people
were u-ed to the state and Flederal laws,.
Qs.qtion 8. a. When A.laskan natives are allowed to sell their shares in 1%1,
wlv:it do you think will happen?
Answer. Half of them will sell their land since money will qound good to
thi-mu---especially the older people since they feel they want to have an easier life.
,. Whlat is the possibility that the shares will eventually pass to non-natives
and the control of the regional corporation to non-natives?
An; wer. All depends on the .pou.i.
r. How can Alazknn natives retain control over regional corporations after
Ii99l ?
A-. 1. After 1991 do you think Alaskan native,7 should give preference to the
regional corporations in the purchase of their shares?
A. .,wer. Yeq.
e. Do you think it would be advisable that at lent 51 percent of the shares
sh-iuld he owned by Alaskan natives in the regional corporations?
Anwer. Yes.
Qo'.rtiomn 9. a. What rights or claims to corporation resources do Alaskan
native, children have that are born after 197.1?
Answer. None. unless they were one of the benefieijrie under a corporation.
If they are beneficiaries and end up having lnnd they would have the benefit
of w(irking"on theland or inve b. Do you think they should have been provided for? How?







70

Answer. Through Tlingit and Haida as long as they were one-quarter Tlingit
and/or Haida. I guess they did have to set. a specific date somewhere.
Question 10. a. How dues the regional corporation plan to develop its resources?
Answer. Through timber for one.
b. Will it lease out the land to be developed?
Answer. Don't know. Seems to me they sliould start investing in their own busi-
ness and to lease a portion accordingly with a feasible and of years.
c. On what conditions?
Answer. Length of lease; rent, royalty payments; and provisions for environ-
mental protection, reclamation, preference in einploym ient, a certain percentage.
d. Will it set up joint ventures? If not, why not?
An-'wver. Yes. I believe so.
e. Is it thinking of developing the resources itself? If not, why not? If so, what
are the biggest problems in developing the resources?
Answer. Not sure.
f. Would it consider contracting out the development of resources such as in
the Blackfeet-Da m son Oil Agreement?
Answer. Not sure.
g. How is the regional corporation going to protect itself against the great pres-
sure from non-natives to exploit the non-renewable resources?
Answer. I believe through their attorney-not sure.
h. What conservation measures has the corporation adoplted for renewable re-
sources?
Answer. By a 20 year program.
Question 11. a. How much have you received in cash from Alaskan Native
Claims Settlement Act to date?
b. What have you done with the funds?
c. At what rate have any been invested? Where?
d. Have you invested any in developing your resources?
e. If not, do you intend to?
Question 12. a. Are you awn re of the financial problnis, of the state of Alaska?
b. Do you think that these financial problems might affect you ?
Que.lion 13. a. Has anyone exerted pressure on you to r;n:iit rights-of-way?
b. Do you feel that you should grant rights-of-way at this time?
Question 11. Do you want to mention any problem in the implementation of
the Alaskan Native Claims Settlement Act?
Quec.tion 15. Would you like the Commission report to mention any amend-
ments to the Alaskan Native Claims Settlement Act? Explain in detail.

KAKE ('COPOR.ATION, KAKE, ALASKA-A!.BFRT DAVIS AND ('A..RENCE JAC'KSON
Question. 1. Could you estimate how many acres have been traditionally used
or occupied by Alaskan natives in your region (or village) ?
Answer. Goldsmith Study does into r,-:our.,ps used (1974).
a. Do you feel that the land which you will select approximates this amount?
Answer. No. and we had no choice in National forest. We hlad to niove our
boundary to north. The land woe wv,,ted already had been cut by a private log-
ging company. Before the ANCSA was past, the fore-try se'rviee allowed commer-
cial companies to come in and log everything off. Now they hold us (SANTCO)
to a sustained yield basis.
b. Will traditional subsi-tene activities be disrupted by the amount and the
mnannor in which the land will be selected? How?
Answer. Our r-(iurces were disrupted long ago. This is a sminall island, and
in 196S 200 people from losing cilipany came and shot all d(leer.
c. Do you feel tbat the U.S. government withheld excessive amounts of land
from s.letion for the national pa rks and oil reserves?
Answer. Yes.
Qne. fion 2. a. How many of the 40 million acres awarded have been selected?
Answer. Ask Senlnskai.
b. Has there b t,: any delay?
Answer. 'Jtre have been delays due to fact village corporation has been asked
to grint easemnents. We told BLM and Forestry that we didn't want to grant
c enleents.
c. What effect will these delays have on your corporation?
Answer. We cannot start land luse r.lannin.': nor can our joint timber corpo-
ration begin operations until we have title to the lanld.







71

b. Do you think Ithat the regional c r iral ioi will poslpozme leasinzig On develop-
minIt until a after 1)991 i'ecIaue. of .st i(l i axat it ll?
C. I )o you think t Iiat after 199,1 tin' regioiu ev, rpOrittion will li, f land instead of dev elpiilg it Il|emns'lvves in orderI to ialy l:1i1l 1a\ -s?
lDo ymou tliink that after 19.1 the rtgiinall corpiral ion will ie forced( to sill
land which lias been iput into pridluictioinl o4r leasedl in older to pay ladih taxt's?
d. IliI)v h many acres li;ns your (orplorati(n selected to date?
Aniiswer. 23,000. Thi-s icl'ithde thit original t i .owsite, as \vell as an adifliti i for
the sea area.
c. What percent is this oif the total to be selevt.ed ?
Answer. 100 percent. Howe'\ er, we d(o lnot have title to any of this.
f. IXo yop have any prldlh'ui of nl, ii-iative. i'ii.g a\%%;rdtld laiid or o(C-iupying
land that should le opiin for .( Lel ion by the cirl)orat ion ?
QuC.stiiOn 3. (. Wli:it will b,' Ilie iiip:,.t of laild ta il.s ,l the d(h'vclopmiitent or lhas-
ing of Iland by th(e re'.i,,nal c,,r-pl ii tirat .-?
c. Given that so mu.ch Aliskan himid has lbuen wilhidrawn for nattiuoil piarks
amid oil reserves, do y tax ilinhden?
Quctfiv'n 4. a. What will he the iumjpact of state least' lhold taxes on the (hdvel(p-
nint't of corlpo raitii iresillurce'-s?
1b. IDo pil initeldI to iillip-.' taxe-, on resource developers or corporation lands?
Qucstimn 5. a. Whi tt i ,lact will lanl taxes have onil village corporatiions?
Aiinswer. Would like to avoid any l:aidl taxes since state will impiost heavy
taxes,.. Also worried abi)ut capital gahils tax-tryinug to get aroiiiul this in
SANTCO case by creatifin a limited partnership whereby profits distributed
directly to lpartniers and they pay income tax.
I,. Will they be forceil to sell laud after l!)!) to pay land taxes?
Answ er. Unclear at this time.
Qur.i,,tin 6. a. Do you tlihilk Alaiskan natives should be exempt from income
taxes? Why? Should tlhe exemption from laid taxes be extended? For how
long? Why?
Anwer. Alaskan inatives, have paid taxes since end of WWII and they don't
nmiind I1 'ayiIzi. su ch t:>xcs. However, they do not feel that thlie village ct4irpioration
should p'ay iLic(.me tax',- vin land (clainS ninmoey or on money that originatets from
resources tlhat w\er, given in lhimd cla ms. If 4'ongress allowd thlem to retain
certain resources whly should the state lie allowed to tax them away?
b. II,,\w will an Aiaskaz native living outside the cash economy play his land
taxes?
Answer. He won't le alle to.
c. Do you think it is po,.ible that those Alaskan natives living outside the
cash ecnomny might eventually lo.e their laud through foreclosure for land
taxes?
Answer. Yes. we would like to prev(nt that by having a restriction on his
titlrh'. If a native wants to sill land, it should go 1,:ak to village corporation.
Qurc.tijn 7. a. Do you realize th;it A!askan Native Claimns Settlement Act
extinguished your huntini and fishing rights and that all hunting and fishing
rights mu-t lie in cemipliazive with state and federal laws?
Answer. Yes, 1)ut there should be some way of assuring us use of our sub-
sisttnce foods; that is foods we have traditionally used. Presently some have
high commercial value because they are Japanese delicaciese. The state there-
ftire regihl:.tts their n.-z-lu ives should be exemnlt from such regulations in
order to allow home ci.'n ,xn li'ttoll.
b. What effect will this have on those who depend on hunting and fishing
for a living?
A.,nwer. Regulation of co)nmmercial fishing has forced tle closini of our
c-i nnery this sumilier. S,,'ie areas ha:ive been closed off frimn filshinzg and since
there will lie no fishii-Ig nearby, we had to close down. 60 to So people will lie
(olit of work.
Qv.,tiona 8. a. When Alaskan natives are allowed to sell their shares in 1991,
whatt (do you think will happen?
Answer. They will sell themn-however, given tlhe other problems we have with
land selections and eaemients we have not given this too much thought.
b. What is the possibility that the shares will eveintuiially pass to non-natives
and the c.,ntrol of thile regional corporation to noin-natives?
Answer. Yes.







72

c. How can Alaskan natives retain control over regional corporations after
1991 ?
Answer. Possibly through an amendment giving the corporation first option to
buy.
d. After 1991 do you think Alaskan natives should give preference to the re-
gional corporations in the purchase of their shares?
Answer. Yes.
e. Do you think it would be advisnble that at least 51% of the shares should
be owned by Alaskan natives in the regional corporations?
Answer. Yes.
Question 9. a. What rights or claims to corporation resources do Alaskan
natives' children have that are born after 1973?
Answer. None.
b. Do you think they should have been provided for? How?
Answer. Possibly; however, how are we going to impose some limit on the
number of people eligible?
Question 10. a. How does the regional corporation plan to develop its resources?
Answer. Ask Sealaska.
b. Will it lease out the land to be developed?
c. On what conditions?
length of lease
rent, royalty payments
methods of monitoring extraction
provisions for environmental protection, reclamation, preference in employ-
ment
d. Will it set up joint ventures? If not, why not?
e. Is it thinking of developing the resources itself? If not, why not? If so,
what are the biggest problems in developing the resources?
/f. Would it consider contracting out the development of resources such as in
the Bianck feet-Damson Oil Agreement?
g. How is the regional corporation going to protect itself against the great
pressure from non-natives to exploit the non-renewable resources?
h. What conservation measures has the corporation adopted for renewable
rei sources?
Question 11. a. How much have you received in cash from Alaskan Native
Claims Settlement Act to date?
Answer. Ask Sealaska. $1 million; spent $300,000 on administration; spent
$170.000 on community center.
b. What have you done with the funds?
Answer. Invested them in Chase Manhattan, NY through Sealaska.
c. At what rate have any been invested? Where?
Answer. See Sealaska. 8 to 10 percent.
d. Have you invested any in developing your resources?
Answer. We have much less than $1 million to invest now. We will u1se $300.0'0
for our cold storage plant in order to attract $600,000 additional funds in
matching grants and loans. The cold storage plant is essential for employment
in our community. We have been unable to get funding from EDA because we
are a profit-making corporation and would compete with other operations. Yet
they are going to fund SANCO which is profit-minking. It is clear that EDA 1s
making arbitrary decisions. We cannot use our lands as collateral for loins.
We haven't approanrehed Chase Manhattan for a loan. We are also going to lnnan
city council $30.000 for el-ctrifleation. We are investigating a fish hatchery.
We object to RCF regulations which state that we are eligible only if everyone
else has turned u4 down.
e. If not. do you intend to?
Que.qtion 12. a. Are you aware of the financial problems of the state of Alaska?
A nmwer. Yes.
h. Do you think that tlipse financial problems might affect you?
Answer. Yes.
Quetion 13. a. Has anyone exerted prequre on you to grant r!ihts-of-way?
Answer. Practically evePryrne-Forest Service, BLT.M-they are holding up onr
land selection until wo nagree-if we grant them we will only get 8,000 acres of
our orikinnl 23.000 aerev.
b. Do you feel that you should grant rights-of-way at this time?
Answer. We will ,rnnt them in the future as they are needed and' they can
compensate us for the land.









Question 14. Do you want to mention any problem in the Inip'leminitati,.n
of the Alaskaan Native Claims Settlement Act?
Answer. ID)elay in land .mlec.imi due to pressiire to grant easemint.ts. Va._ii-,-
ness in how land is to pass from village corpora t ion to city ctu1,,il. Interfer,, n f
from Gustafm.i'on (on wht will control 1.l2E(0 acres conveyi-id to 'ity coiii'il. N.jin-
native ctlains within towlnshiip. Eascnivnis asked biy 11lM. Forest Survice.
Question 15. Would you like the C0nmmnis-ion report to mnction any am enl-
ments to the Alaskan Native Claimis Set thiment Act? Explain in detail.
Answer. Change taxation provisions. Give contlrol to village, c4orojiration over
land. Give first optiion to lity shares to village crporaI 'ition. Arr.anIgit-ii.t w .ti 'i,;y
allowed to garli r sulbsistence foods. Stop easeui.lts that BI.M and F orestry art:
obtaining from Secretary of the Interior.

TYONEK NATIVE CORPORATION, 445 EAST 5TH AVENUE, MARLIN G. LA-PIKAS,
EXECUTIVE DIRECTOR
Question 1. Could you estimate how many acres have been traditionally u:-',.
or occupied by Alaskan natives in your region (or village) ?
Answer. Since 1915, approximately 27,000 acres. Before 1951, the Tyoreks
migrated North from Tuxedni Bay to their present location on the furmur
Mloquawkie Reservation.
a. Do you feel that the land which you will select approximates this amount?
Answer. Selection of former Moquawkie approximate acreage traditionally
occupied by Alaskan natives in village of Tyonek.
b. Will traditional subsistence activities ie (lisruptc-d by the amount and the
manner in which the land will be selected? How?
Answer. Yes. State patented land. surrounding the MoIiquawkie Indian R,.-
ervation on which thle village is located, is not available for selection. If it wa -.
it would allow for an excellent land consolidation program. Cunieluently, TIj!,
must select lands grant distances away from the traditional living area. Tradi-
tional subsistence activities take place on adjoiining lands.
c. Do you feel that the U.S. government withheld excessive amounts of lauid
from selection for the national parks and oil reserves?
Answer. At this time I do not. Although the state of Ala,;ka may not fe.l
that way.
Question 2. a. How many of the 40 million acres awarded have been selected?
b. Has there been any delay in your land selection?
Answer. Yes. Generally the 3 party negotiated settlement between Cook Inl-t
Region Inc., state of Alaska and federal government has delayed the specific
12(b) land selection for our village corporation. Obtaining patent or interim
conveyance to the land selections is another matter. BT.M states that the lack
of easement criteria was the general reason for delay. The status of the fmnipr
Moquawkie Indian Reservation is preventing patent from being issued. Tnc is
seeking easement free patent to the former reservation. BILM states that the
former reservation is now a public land withdrawal. They (BLM) are continually
seeking public input in order to justify easements across, and on, the former
reservation that was private up to the passage of ANCSA on Dec. IS, 1971.
c. What effeer will these delays have on your corporation?
Answer. Dissipation of village corporation monies from Alaska native fn.',i
for legal expenses to secure easement free patent to former Moquawkie Indlian
Reservation.
d. How many acres has your corporation selected to date?
e. What percent is this of the total to be :elected ?
f. Do you have any problem of non-natives being awarded land or occul)pyin"
land that should be open for selection by the corls)ration?
Answer. Not really. If they properly filed and can prove usage under ANCSA
they will get it. The major problem is agency requests thronalh BLM for wvhat
many coriirations feel are unnecessary easements. Because of thle huee amounts
of land and their diversification, I feel that the adverse lpossession prizicil,:I
may po-e a future problem.
Quc.,tion 3. a. What will be the impact of land taxes on the development or
leasing of land by the reg,-ional corporations?
Answer. Presumably, that would not pose a problem if leased to thir(l d rtii.'-
for profit. I would hope that taxation would blie considered in the final contr;i, t
After December JR. 1991 all real property interest will be taxed. Could deftini'tly
be a problem if investments do not cover the taxation.







74


b. Do you think that the regional corporation will postpone leasing or devel-
opment until after 1991 because of such taxation?
Answer. I would hope not.
c. Do you think that after 1991 the regional corporation will be forced to lease
land instead of developing it themselves in order to lyay land taxes?
Answer. General-Dep.nds upon their financial and economic structure. TNC
holes to be in a position of not being "forced" to do anything.
d. Do you think that after 1991 the regional corporation will be forced to sell
land which lihas been put into production or leased in order to pay land taxes?
Answer. Yes, many of theoin will. TNO hopes not to be in that, i1osition.
e. Given that so much Alaskan land has been witlidrawn for national parks
and oil reserves, do you think that the remaining land will bear an excessive
state tax burden?
Answer. Hopefully, through industries such as gas and oil. The remaining
land may not have to bear that excessive tax burden.
Qu(etion 4. a. What will be the impact of state leasehold taxes on the develop-
ment of cror!,oration resources?
Answer. Unable to answer at this time.
b). I)o you intend to impose taxes on resource developers or corporation lands?
Anu opment. Particularly subsurface development through the leasing of surface
estnt-' to the required support facilities.
Question 5. a. What impact will land taxes have on village corporations?
Answer. If the small village corporations do not take advantage of mergers
and pool their resources mniny will go under.
b. Will they be forced to sell land after 1991 to pay land taxes?
Answer. Sell or lease.
Que..o4t 6. a. Do you think Alaskan natives should be exempt from income
taxe-s? Why? Should the exemption from land taxes be extended? For how
long? Why?
An-wer. Only insofar as it pertains to ANCSA. Exemption of land taxes
should be extended for as long as it takes the federal government to issue patent
to land. The federal government, was unprepared, or unwilling, to convey land
without "riders." Consequently it is taking a lengthy period to come to get
set up.
b. How will an Alaskan native living outside the cash economy pay his land
taxes?
Answer. This may not be a problem. Paragraph 14c of ANCSA guarantees
conveyance for various reasons. I believe that the nature of Alaska and the
attitude of regional or village corporations may prevent his land from being
taxed.
e. Do you think it is possible that those Alaskan natives living outside the
cash economy might eventually lose their land through foreclosure for land
taxes?
Answer. Possibly, though I doubt it.
Question 7. a. Do you realize that Alaskan Native Claims Settlement Act
extinguished your hunting and fishing rights and that all hunting and fishing
rights must be in compliance with state and federal laws?
Answer. Yes. However this was the case before the passage of ANCSA.
b. What effect will this have on those who depend on hunting and fishing
for a living?
Answer. They will have to abide by the rules. Limited entry is already an
example of this situation.
Question 8. a. When Alaskan natives are allowed to sell their shares in 1991,
what do you think will happen?
Answer. Pressure for options to purchase shares will increase as 1991 draws
near. Ultimately, large finnncinil interests will buy the individual shares until
such time as corporate control is in their hands. From then on corporate
roSoireps will be at the disposal of the new board elected by the controlling
stockholders.
b. What is the possibility that the shares will eventually pass to non-natives
and the control of the regional corporation to non-natives?
Answer. At this time I view it as excellent if you are referring to 1991. Cur-
rently phares, do pass to non-natives through inheritance; however, they become
non-voting shares.







7,5

c. IHowv can Alaskan natives retain cmitri r over rgigui;lI e')r;t, r,,t,, :,ifit r
1991 ?
.Answer. IHe'oinie imore aware o)f the purIllpros if tiMe' c'rlprl iti.n.
d. After li91 do you tliink Ala:Lztrtkan natives s ,hiuld gi\, prefer,.,.t. ti( ti,
regional corpiratiiins in tlt- pjlrclase 'if tliir .shari.?
Answ. er. N because you liiit lis itdiviial 'liice (,f 2:,rk.t iLL' Iii -l; r..
c. Do youi tliink it w ,'oild Ii- advisablde that it lcast 51 perreiit of :l.) w *,n.-
-,hmiuld he (owned by Alaskan motives in the regional eoi.' ,ration-i
Answer. If it is,; their wisli-yes. It nitlit cani-e tiet cjrlrniltiatn 1o, ariipt
non-native Mhoard of D)irecttors which is wiot currently the jmliy. T'ili, ..,iilli
Incr lase the exposure to establi.shed lNiZ 1t.siiiess iiixi:2t;Ig'i-iit.
Qut'.stii, !). a. \%'i;it rights or c'lh i his tO) Irp ,t:tiio l- d-,t -..- do .\l;i-kii
natives- ehilritir lIh ve t11i:lt l,'" irh n ; tter 11T 7.:-'
k \sw\er. Iii!-,rii(;net i f ,slin:r-es.
b. I)D yu think they .lhotild hay(h ,'IPii i.rvid.,d for? IIt\\ ?
Answer. The3 are thrniiLli variom.us lum, '.;i:,'ii- tli.it ;lrf ,i1 ;lst'-.,.i.til with
ANCSA\ ytt Ptir':i ccitf l Ifit l to r sise jl-t bec':l-i' of the L';--:'i.o <, AN(S.\.
Que.'tion 10. a. IHowv does the region:.il ncorliirtion plant to de\velii its r'..'-ri'(s?
Answer. Surface estate res,'rc-e (a) ne.,i;tiitiiton of silrf:ure r.l-nt.1 citra:-,
with those induistries who', li, ain (*'nit rats for extra':t; ioj ot' -ii'if;ni- rc'-. '
with re i,':i-al u.orJ,,rt)int on villhat- ,\riwneil land. (h) ,raivel- C',ik Inlet ItU i',l
Inc. pIolicy is that gravel is a sturtf:ice vst;ite. (C) l,, n tr ri I'.:isiitL' f l.,iii.
Alaska Native Fund-Portion inve-ted in deeds of trust ; reininindelr ued for
legal and office expense.
b. Will it leas, out thelanO tolie dev.l'ise,'l ?
Answer. TN(1 pl'an, this- aplproi:ch.
C. On what conditi(ons?
Answer. Length of lease. Rent. royalty payments. Metlrds of inlnito!'i'r: tx-
tractimon provki-ins for environmental prote'oti,,. rec.inii,:ti,,n. irefrt ijce inl
emplwlyniont. I )e'ends on wlticli industry we nre nxNeotiatin.!Z with.
d. Will it set up joint ventures? If not, why not?
Answer. ("nceivable. However, at this point in time PE'ard of Dir,.,t,'rs very
reluctant. T'yonek has history of lbeieg on their own and prefer not to enter into
joint ventures. They feel there is a possibility of losing control.
e. Is it thinking" of developing the resources itself? If not, why not? If so.
what are the biggest problems in (level',piniz the resZliu rees ?
Answer. Yes. planning to develop the surface estate on our own. B. 'st rr'i-
leni is what to do with large tracts of bush real estate.
f. Would it consider contracting out the development of resources such as in
the Blackfeet-Damson Oil Agreement?
Answer. This pertains to a regional corporation decision concerning surface
estate: timber, gravel etc. Yes. I see this as a distinct Ipossilility.
g. How is the regional corporation going to protect itself against the great
pressure from non-natives to exploit the non-renowalble resources?
Answer. I advocate a "permanent fund" into which a certain lerc--nltnfze (2.'1)
of revenues obtained from thle non-renewnble resource would he leopiitedl. The
interest obtained from this fund would then lie made available for jiurposis as
the Board of Directors see fit.
h. What conservation measures has the corporation adopted for rencw: ille
resources?
Answer. None. yet.
Question 11. a. How much have you received in cash from Alaskan Native
Claims Settlement Act to date?
Answer. Approximately ?.~ .00.0.
b. What have you done with the funds?
Answer. Deposited with local hank at 71. percent interest.
r. At what rate have any been inverted? Where?
Answer. 12 to 1 percent in deeds of trust.
d. Have you invested any in dI.veloiing your reonurcos?
Answer. No.
e. If not, do you intend to?
Answer. Not at the present time. As we gain more working capital-yes.
Quc.tlion 12. a. Are you aware of the financial problems of the state of Ala4ka?
Answer. Yes.
h. Do yon think that these financial problems might affect you?
Answer. Yes.






76

Quiestion 13. a. Has anyone exerted pressure in you to grant rights-of-\wa-,-?
Answer. Ye.-.
b. Do .y,, feel that you should grant rig-1ts-of-way at this tilice?
A.i-wer. Only if it is in TNC's best interest.
Qucstion 14. Do you want to mention any problem in the implementation of
lie Al;isk'xn Native Claims Settlement Act?
.An'.vr (1) the treatment of former reservation revoked under paragraph 19
of AN('SA. (2) I fel BLMI is more attuned to administer and manage lands
rather ihan convey them. This leads to a strict word by word interpretation of
ANC('SA by BLM and inhibits what I believe was the intent of Congress-a
rapid settleynlent. The implemenitatiions is becomiting extremely lengthy and
c:stly.
Qlt-fion 15. Would you like the Commission report to mention any amendments
to the Alaskan Native Claims Settlement Act? Explain in detail.
Answer. Amendment No. 1 : Would like to see village corporations specifically
granted astsemiient-free patent to former reservations. TNC is unable to find where
ANCSA states that former re-ervation became "public" contrary to their past
usage, as BLM believes they did. ANCSA is sprinkled with statements protect-
ing the valid existing rights of non-natives concerning withdrawal of public lands
under ANCSA. What about the valid existing rights of the native on reservations
revoked in accordance with paragraph 19 of ANCSA?
The Moiquawkie Indian Reservation was private, prior to ANCSA, in accord-
ance with the Corporate Charter of the Native Village of Tyonek (a federal
Corporation chartered under the act of June 18, 1934 as amended by the Camp-
site Indian Reorganization Act for Alaska of May 1, 1936). This policy was sup-
ported and protected by the Department of the Interior. Not only are we unable
to find where reservations became public lands, we are unable to find the "ap-
plicable Laws and Regulations" pertaining to the interim administration of
former reservations "covered by Section 19 of the Act.". Frankly, we do not be-
lieve there are any.
Amendment No. 2: Extend the "day of reckoning" in 1991 to a date commensu-
rate with the delay BLM and Department of the Interior has caused in issuing
patent to the land.
.Aimendment No. 3: Request that the Alaska Native Fund monies be disbursed
on time. I do not believe it has ever been done.

DINEEGA CORPORATION, BOX 1, RUBY, ALASKA 99768
Question 1. Could you estimate how many acres have been traditionally used
or occupied by Alaskan natives in your region (or village) ?
Answer. The Athabascan people have been a nomdaic group and utilized much
of the land in the middle Yukon Region. Summers were spent near the mouth of
tributaries to the Yukon and winter was spent mostly hunting and trapping.
a. Do you feel that the land which you will select approximates this amount?
Answer. No.
b. Will traditional subsistence activities be disrupted by the amount and the
manner in which the land will be selected? How?
Answer. Yes. Subsistence activities could be greatly disrupted by the manner in
which land is selected. Much would depend on who (federal government or state
government) selects the land and what use they designate to the land selection.
c. Do you feel that the U.S. government withheld excessive amounts of land
from selection for the national parks and oil reserves?
Answer. Yes. The D-2 lands and D-1 withheld by the federal government is
excessive. If the lands selected by the federal government is left open to sub-
sistence activities, it will have little effect on change in lifestyle; but if sub-
sistence activities are cut off the result would be poverty for many villages.
Question 2. a. How many of the 40 million acres awarded have been selected?
Answer. The village corporation has selected all of the land they are entitled to
under Section 14 of ANCSA.
b. Have there been any delay?
Answer. The amount of time given by the federal government to select our
lands under Section 14 of ANCSA was far too short. Three years for village corpo-
ration hind selection and possibly 20-100 years waiting for title from the Depart-
ment of the Interior. It's unfair.
e. What effect will these delays have on your corporation?
Answer. The only delays we have experienced is from the government. Our land
selections have been held up in processing because the government is too slow







77

in 'ar'r ing out their reqtireiieints siut'i as i(letifyin g ra.' L zilits. If f l'-y %% ert
given a time limit like tihe village corporations they might ge't s miethillZ il,1cC
faster with their expertise.
d. ho"w niany acri*s a.Is your corporation sulecteid ti. daitL'?
Answer. The (delays experience does not helIlp thi village corporation 1., aii -.e
It delays or could create problems with 14(c) of tihe Art.
c. W\lI;it percent is this of tile total to blie selected?
An-.wtr. We have selected our full entitlement, 115.200 acres, granted unidatr
ANCSA.
f. I)o yii have any l)roblem of non-natives living awarded land or occupying .
land that shmuild be open for selection by the corporation?
Answer. Sete .-clions 12 and 14 of ANCSA.
Siiv'.gti,,n .,. ai. W hat will b e tlie inipiact of l:nd taxes l ln d e rv''lopnn*t or
Iha-ing of land by the regional corporations?
Ans.wer. N/A.
b). IDo you think that the regional cirrporation will poItpine leasing or develop-
ment until after 19YJ1 because of such taxation?
Answer. N/A.
t'. 1)o you think that after 1991 the regional corporation will be forced to lea.-:
1:lind instead o(f developing it themselves in order to pay land taxes?
.Answer. N/A.
d. Do -you think that after 1991 the regional corporation will be forced to
M-l1 land which has been put into production or leased in order to pay land
taxes?
An.swer. N/A.
e. Given that so much Alaskan land has been withdrawn for national park- and
,il reserves. do you think that the remaining land will bear an excessive state
tax burden?
Answer. N/A.
Qiiu.-tion. 4. a. What will be the impact of state lease hold taxi's on the develop-
ment of corporation resources?
Answer. It would be disastrous for our business.
b. Do you intend to impose taxes on resource developers or corporation lands?
Answer. No, we can't tax.
Qurf.lion 5. a. What impact will land taxes have on village corIporations?
Answer. Land taxes would probably be the end of us. Unless we find a way
to develop our resources to pay the tax we would be forced to sell our land
probably.
b. Will they be forced to sell land after 1991 to pay land taxes?
A. answer. See 5. a.
Question 6. a. Do you think Alaskan natives should be exempt from income
taxes? Why? Should the exemption from land taxes be extended? For how long?
Why?
Answer. No. if Alaskan natives are exempt from income taxes, the wh,,le
country should be. It would be unfair to other taxpayers. The exemption from
l:ind taxes should lbe extended especially if the land is undeveloped.
b. How will an Alaskan native living outside the cah ecnimy pay his la-nl
t:x (-s?
Answer. Since he is a shareholder in the corporation he himself will not have
the burden of paying land taxes.
c. Do you tLink it is po..sil'e that those Al-1s;;.n natives living o, ts.ide ti'.
-n.ci l.cononmy might eventually lose their land through foreclosure for l:inil
t;: xvs?
A.nwr'r. Alnskan native, who do own Tind (not under tlhe corporation) and
live outside the cash economy will definitely lose. This should be of little
worry presently because most Alaskan natives have no title to their land.
Question 7. a. Do you realize that Alaskan Native Claims. Settlement Act ex-
tinguished your hunting and fishing rights and that all hunting and fishing rights
nitut be in compliance with state and federal laws?
Answer. We did not have treaty rights for hunting nnd fishing, thus ANCSA
did not extinizuish them. They were extinguished 1'y thev stat,-.
b. What effect will this have on those who depend on hunting and fishing for
a living ?
Answer. The effect this will have on those who depend on hunting and fi-hinu,
depends on the laws the state makes and whether they enforce them.







78

Question 8. a. When Alaskan natives are allowed to sell their shares in 1991,
what do you think will happen?
Anizwer. If the Alaskan natives sell their stock from the corporations they
1'i.long to, the corporation will no longer lie native controlled unless other na-
tivtes liought up the stock. Then the Alaska Native Claims Settlement Act would
be over and the U.S. government will have satisfied its responsibility for 20
1-;I r4. The purpose of ANC8A would he over.
b. Whit is thle possibility that the shares will eventually pass to non-natives
and the control of the regional corporation to non-natives?
Answer. Yes..
e. How can Alaskan natives retain control over regional corporations after
1991?
Answer. Extend the date or give the corporations the right to buy back the
stock.
d. After 1991 do you think Alaskan natives should give preference to the re-
gidinal corporal tions in the purchase of their shares?
Answer. Yes.
e. Do you think it would be advisable that at least 51 percent of the shares
should be owned by Alaskan natives in the regional corporations?
Answer. More than 51 percent of the shares should be owned by Alaskan
natives. 51 percent is not enough shares to effectively control a corporation.
Question 9. a. What rights or claims to corporation resources do Alaskan na-
tives children have that are born after 1973?
Answer. None. The only rights or claims they will have is if they inherit stock
in the corporation or buy it in 1991.
b. Do you think they should have been provided for? How?
Answer. No. It would be a problem to the corporation just to do the paper-
work and it would create problems.
Question 10. a. How does the regional corporation plan to develop its resources?
Answer. N/A.
b. Will it lease out the land to be developed?
Answer. N/A.
c. On what conditions?
Length of lease, rent, royalty payments, methods of monitoring extraction,
provisions for environmental protection, reclamation, preference in employment.
Answer. N/A.
d. Will it set up joint ventures? If not, why not?
Answer. N/A.
e. Is it thinking of developing the resources itself? If not, why not? If so, what
are the biggest problems in developing the resources?
Answer. N/A.
f. Would it consider contracting out the development of resources such as in
the Blackfeet-Damson Oil Agreement?
Ans vwer. N/A.
g. How is the regional corporation going to protect itself against the great
pressure from non-natives to exploit the non-renewable resources?
Answer. N/A.
bh. What conservation measures has the corporation adopted for renewable
resources?
Answer. N/A.
Question 11. a. How much have you received in cash from Alaskan Native
Claims. Settlement Act to date?
b. What have you done with the funds?
Answer. We have done nothing except left our funds to draw interest in short
term investments.
e. At what rate have any been invested? Where?
A nswer. The rate varies from month to month.
d. Have you invested any in developing your resources?
Ans.wer. No.
e. If not, do you intend to?
Answer. Yes.
Question 12. a. Are you aware of the financial problems of the Ptate of Alaska?
Answer. They never seem to have enough money.
b. Do you think that these financial problems might affect you?
Answer. The state's financial problem will definitely affect us as citizens and
busin.s. We could be taxed to death or not develop our resources.









Question S13. a. Has anyone exerted pressure on 3(yu to grant riglbtsol'-(d-ay?
Answer. Yes. Thlie BlTM is exerting pressure which are unreasonable..
b. Do you feel that you should grant rights-of-w1y at this tim(?
Answer. We are protesting any ea.:-einent which %ve feel is iiiL, in kee4pinrg with
ANCSA or is unreasonable. Many of thle easemiints (do not reflect suinl( planning
or land list. The easements proposed have solved no probleh.s butt h:lis certainly
created l)robleins.
Q1u'stion. 14. Do you ant to) Inexlidn any problem in thlie inipivin.ent fatin of
tlie Alaskan Native Claims Settlement Act?
Answer. Many of the probl imis we face are with goivernmnent age'cie \; BLM
is the main one. Also we lack qualified personnel fir thle day to daly m.niigeiie.it
of our corporation.
(Quctio'n. 15. Womild yom like the Comnmission report to nmentitin anly ,ani nl-
meiuts to thile Alaskan Native Claims Settlemnent Act? E explainn in detail.
An set'r. We believe that. the corporations under ANCSA should 1e pr otelted
fromi losing stwkhdolders who are n;atives. There should be protri'ti.; :ig ii-nist
liens., stotk going into e.-cheat, and transferring of Stouk. The land .si.luld not he
taxd(l if it's not developed.

BEING STRAITS NATIVE CORPORATION, BOX 1008--NOME, ALASKA
Qucstiom 1. Could you estimate how many acres have been traditionally used
vr occupied by Alaskan natives in your region (or village) ?
Answer. Nearly all the usable land by crossing, criss crossing looking for game.
fisli, caribou and trading.
a. Do mou feel that the land which you will select appro(ximuates this amount?
Answer. No.
b. Will traditional subsistence activities be disrupted by the amount and the
manner in which the land will be selected? How?
Answer. Our selection will not effect it, but selection by Interior for park
lands will definitely disrupt some of the villages.
c. Do you feel that the U.S. government withheld excessive amounts of land
from selection for tlhe national parks and oil reserves?
Answer. Yes, Shishmineref Area. They have been really hamstrung, this village
with pai k select ion.
Question 2. a. How many of the 40 million acres awarded have been selected?
Answer. As much as were allowed by law.
b. Tias there lieen any delay?
A.isw er. Yes.
c. What effect. will these delays have on your corporation?
Answer. BLM is slow in giving conveyance. We met our obligation by deadline
da t e.
d. How many acres has your corporation selected to date?
Answer. It is hard to plan or start any mineral program without patent
c. What percent is this of the total to be selected?
Answer. All that were allowed.
/. Do you have any problem of non-natives being awarded land or occupying
land that should be open for selection by the corporation?
Answer. All except 14h.
QuicRtion 3. a. What will lie the impact of land taxes on tlhe development or
leasing of land by the regional corporations?
Ans.er. We are hoping that undeveloped land will not be taxed; therefore,
what is der-veloped will be built in tax money.
1). D;) you think that the regional corporation will postIpone lensing or develop-
ment until after 1991 because of such taxation?
Answer. I hope that state and federal come up with some guidelines th:it can
be worked with; I think there i enough delay already.
c. Do you think that after 1%91 the regional corporation will ',P forceoil to
lease land instead of developing it themselves in ord(ler to pay land taxes?
Answer. It lhoks like this is what the federal government wants--to get the
land Iack.
d. Do you think that after 1991 the rezionnl corporation will be forced to sell
land which has been put into production or leased in order to pay land taxxes?
Answer. If we do) not get a voice in policy, this will happen. Our helper. Interior
Dept., seems to be looking tlie other direction.







80

e. Given that so much Alaskan land has been withdrawn for national 1iarks
and oil reserves, do you think that the remaining land will bear an excessive
state tax burden?
Answer. Yes, the population will grow so much that the state will not lihive
enl-ugh r ,venue.
Question 4. a. What will be the impact of state lease hold taxes on the dev eh'p-
nient of corporation resources?
Answer. At this time, it is hard to say, but if present governor still has his tix
wlhimi, then it could be Ibad.
d. Do you intend to impose taxes on resource develo(plIers or corporation lands?
Ans-\wer. This seems to be a question to state or federal. We may want to lease
land. but we are unaware we can tax.
Question 5. a. What impact will land taxes have on village corporations?
Answer. All taxes are hard on undeveloped villages.
b. Will they lie forced to sell land after 1991 to pay land taxes?
Answer. I hope not, but look like this is what state and BLM want.
Qiuc.tion 6. a. Do you think Alaskan natives should be exempt from income
taxes?
Why? Should the exemption from land taxes be extended? For how long? Why?
Answer. I think Alaska natives pay their share of taxes for they know no
loop holes. I think there should be no taxes on undeveloped land.
b. How will an Alaskan native living outside the cash economy pay his land
taxes?
Answer. Can't. then the state and federal will take his land away, as they have
dne to the Indians.
c. Do you think it is possible that those Alaskan natives living out-side the
;eah economy might eventually lose their land through foreclosure for land
ta xes?
Answer. Yes, unless there is some protection built in.
Quc.Rtion 7. a. Do you realize that Alaskan Native Claims Settlement Act
extinguished your hunting and fishing rights and that all hunting and fishinZ
rights must be in compliance with state and federal laws?
Answer. Yes. But at the rate they are settling with the natives it may be -50
years before they do.
b. What effect will this have on those who depend on hunting and fishing for a
living?
Answer. It will increase the welfare rolls if they put on strong u.nie-es-ary
laws.
Qurt4ion 8. a. When Alaskan natives are allowed to sell their shares in 1991,
what do you think will happen?
Answer. I hope that native corporations have a good going program by theil
so the natives will not want to sell.
b. What is the possibility that the shares will eventually pass to non-natives
and the control of the regional corporation to non-natives?
Answer. Although certain amount of share passes to non-natives, I think the
natives will still have the corporations.
e. How can Alaskan natives retain control over regional corporations after
1991?
Answer. By legislation. Hard work a good profitable corporation could be built
11up) by 1991.
d. After f1991 do you think Alasknn natives should give preferen, e to the
regional corporations in the purchase of their shares?
Answer. Yes.
e. Do you think it would be advisable that at least 51 percent of the shares
should be owned by Alaskan natives in the regional corporations?
Answer. Yes, otherwise we will lose all that we worked for; would be about
0SO percent.
Question. 9. a. What rights or claims to corporation resources do Alaskan
natives children have that are born after 1973?
Answer. I feel that majority will inherit shares from the parents, brothers, or
sisters. They are like silent partner.
b. Do yonl think they should have been provided for? How?
Answer. No. there is enough red tape already.
Question. 10. a. How does the regional corporation plan to develop its reso-ulrces?
Answer. On wait and see basiq, we do not even know what resources we have
yet.







S1

i#. Will it lease out I It land to be developed ?
Answer. 'This would have to l1e worked out with village, c'rp,'ratiti ai'-l '1i,,
what is best.
c. On what conditions? LAngthi of leawe, rent. royalty ;iy nll it, ii,'.,'1- ,,f
monitoring extraction, provisions for environmental protection, ril.i- ,:itl,,n.,
preference in employ nitlit.
Answer. It wnuld have to lie a combination dettriiiiinlig whi'h i 1,-I fr all
regions concerned.
d. Will it set ip) joint ventures? If not. why mit?
Answer. No doubt there will lie some joint venit re to get good maniin-'.-iir-it.
financing expertise.
Qnc ition. 11. a. How inuclih have you received in cns h from .Ala-k.in Naltiv',
Claims Settlemnient Act to date?
Answer. Less than $400.
b. What have you done within the funds?
Answer. Put in savings.
c. At what rate have any been Invested? Where?
Answer. $92-97-7s. Miner and Merchant Bank.
d. Have you invested any in developing your resource*?
Answer. No.
C. If i0t. b d %o 'uL ililt'id to?
iAnswer. Yes.
Quextion 12. a. Are you aware of tlie filiancial protilein'- of IIIe state o, Al:iskf':
An.,s wer. Yes.
b. Do you think that these financial prbldelns night affect you?
Answer. Yes.
Question 13. a. Has anyone exerted pressure on yon to grant rights-nf-way?
Answer. No, but BLM lias been putting ad in lpaprer, cont rary to the ANCSA Act.
b. Do you feel that you should grant rights-of-way at tlii- time?
Answer. Yes, on as needed basis.
Question 14. Do you want to mention any proibleni in the implemnitati'n -f
the Alaskan Native Claims Settlement Act?
Answer. Mainly easement, coastal zone. Park selection D-2.
Question 15. Would you like the Commission report to mention any amnilir,.t.ts
to the Alaskan Native Claims Settlement Act? Explain in detail.
Answer. If the Commission hlias any power. If they have no powers then i' jt
a waste of time and money. Interior will do as they please anyway.

SITNASUAK NATIVE CORPORATION, BOX 905
Question 1. Could you estimate how many acres have been traditionally '-w'il
or occupied by Alaskan Natives in your Region (or Village) ?
Answer. The total acreage within our Village withdrawal is 4'.-S(1'21 air-;
however, the traditional use and occupancy of the land far exceeds tlii< arn_-
because the accessible game resources do not concentrate specifically in thii vicii-
ity. Many hunters hunt, trap, and fish along the Sinuk River, and for mire than
70 miieq along the coastline, up major rivers, along Salmon Lake. tli-o S.lihqo
and King Island withdrawal areas, and areas accessible by f,-oot and d',,:z te:mn .n:'l,
most recently, snowmaehines and cars. The sea,''n of the year and the ,',-. ild---
fence lands bring hunters much further. Reindeer, squirrels, and dnck are i:.it
boundary conscious.
a. Do you feel that the land which you will select aplproximates tl:is :woiunt?
Answer. Definitely not. Our stockholder enrllMimient numbers appr.ixii;!;Itely
2.000. Our entitlement of land based on our enrollment of eligible Nativ,- i,- 1'.I.-
2..9 acres. The per capital distribution b1 sed on the a wmunt of land a: ,:tit.',! ii.,ler
AN('SA is 7S.29 acre, per person. A large percentage of tlie st,,<-khbldlr-' .i,.r'>11i.l
to Nome reside in other cities and many outlying villas. The ,itiuiflati,,li of Noi:i,
is estimated at approximately 3.000 people coni,.tinz of Native stwkhollr<. 1:,.,-
stockholders, and non-Natives. The number is expected to -row dueo to tin, :,!.,.'ved
mining interest and construction projects. There already ,has bten, a marked
growth in residents as is evidenced by the lack of availalile hou-irii. ail tnI,,
rising cost of living.
b. Will traditional subsistence activities be disrupted lby the amount allI flip
manner in which the land will be selected? How?
Answer. Yes, any type of activity will have a significant impact on crnn)arible
land uses. The passage of the Act and eventual selection of our land entitl,'ment
made people aware of the boundaries; however, the subsistence way of lifp







82

continues, though not as much in the Nome area, because of the growing de-
pendency on canned goods and the monetary economy as opposed to the tradi-
tional dependency on the land resources to supplement the family income. Our
land selection boundaries go only so far; the location of the D-1 and D-2
lands and what will eventually result from decisions on these lands will have
a definite impact, i.e., on D-2 lands. Many people still depend on them for
subsistence and should there be a policy that would prohibit or hinder the
subsistence activities, the growing dependency on the money economy will make
a big impact. Should the D-1 lands become available to miners and home-
steaders, the future land owners and users will become even more boundary
conscious and protective of what lands they have. This will lead to enforcing
of boundary rights and possibilities of enforcing trespass proceedings. The people,
especially in a larger community, will think twice before venturing onto lands
outside and inside of the lands selected by the corporations.
c. Do you feel that the U.S. Government withheld excessive amounts of land
from selection for the national parks and oil reserves?
Answer. Yes. The choice lands that were unselectable by the Village Corpora-
tion, will be tied up in national parks and a sizable chunk had been leased to oil
companies. A section in the Land Claims Act makes certain that a maximum of
25 townships surrounding the Village be withdrawn for selection by the Village
Corporation and only a certain entitlement depending on the Native enroll-
ment of the Village be selected.
Question 2. a. How many of the 40 million acres awarded have been selected?
Answer. This is an almost impossible question to answer, primarily because
the Village Corporations have overselected at least 3 to 5 times their entitle-
ment under the Land Claims Act. Out of the 375 million acres in the entire state,
103 million will go to the state, 80 million acres to the federal Government for
possible inclusion in the four federal systems, and only 40 million to the Native
Groups. It will be many years before we will know who owns what and what the
land status will be.
b. Has there been any delay?
Answer. There is considerable delay. The deadline for the submission of our
final Village selection application was December 18, 1974 and we still have not
been issued title. The delays in receiving title from the U.S. Government are
based on numerous reasons. One being the tremendous work load that the Bu-
reau of Land Management has in adjudicating and processing the many appli-
cations for land from the Village and Regional Corporations. Their lack of
adequate staff to concentrate on the applications plus their limited budget are
other reasons. The non-finalization of the easement and navigability criteria
have been the biggest delays thus far; the survey of Village exterior boundaries
will take some time. The unclear land status, i.e., unpatented mining claims and
the status of pending Native allotments, are other reasons.
c. What effect will these delays have on your Corporation?
Answer. The effect of these delays on our Corporation are as follows: With-
out our "paper title" we are not able to develop our lands. The jurisdiction of
managing the land is still in the hands of the government. During the time be-
tween the celer-tion of land and the actual receipt of patent, a great portion of
the money settlement will devaluate. This money will be needed to protect the
land, should the property taxes reach tremendous heights. The long range
planning for development of the lands is hindered because we do not know which
lands we will be receiving.
Question 2. d. How many acres has your Corporation elected to date?
Answer. We have selected approximately 447,150 acres out of 480,462 acres.
e. What percent is this of the total to be selected?
Answer. Our total selection entitlement is 161,280 acres 12(a) ; 51,200 acres
12(h) for a total of 212,480 acres. We have made an over-selection of 234,670
acre.;.
f. Do you have any problem of non-Natives being awarded land or occupying
land that should be open for selection by the Corporation?
Answver. Yes. the land surrounding Nome has been overrun by prospectors
and miners as in the days of the Gold Rush. Over 33,000 acres of prime land,
which had been traditionally and historically occupIied by the Natives of Nome
have bc-n in tented to miners from all over the country. Another 16.000 acrps
is covered by unpatented mining claims which are protected under a certain
section of the Land Claims Act until December 18, 1976. We have problems with
squatters, but under our present leasing policy, have resolved the problem
temporarily.







83


Question 3. a. w'lint will be tlhe impact of land taxes on the development or
of land by the Regional Corporations?
Answer. The iimpiact at this point, Is undetermined. Since the corpoiratirin
lands are exempt from taxation until 1991 or until leased or develolpd, we do
not have any indication what they will be. The state's financi:il situation from
the cost of the Pipeline Construction and the growing population of people in
Alaska may require a tax boost.
b. Do you think that the Regional Corporation will postpone leasing or devel-
opment until after 1991 to avoid such taxation?
Answer. No. If the Regional Corporations would like to enter into developIment
of available resources, it is possible to enter into a joint agreement and lha-v
the tax liabilities lie the responsibility of the other party who will also benefit
from the resources. Development that will provide jobs for local individuals
from the villages and that will yield profit would be desirable.
o. Do you think that after 1991, the Regional Corporation will be forced to
lease land instead of developing it themselves in order to piay land taxes? Re-
serve taxes?
Answer. No. Between 1976 and 1991, we should have conducted research into
various means of protecting our lands. We will have to get an apprai'.:; and
value of the lands before actual development is to occur. Development and its
Impact vs. taxes must be weighed before development is to take place. In the
long run, the social and environmental impact in addition to the real property
taxes may be detrimental. It is possible that in order to avoid the tnaxe- a non-
profit corporation be formed, or the land could bie held in trust.
d. Do you think that after 1991, the Regional Corporation will be forced to
sell land which has not been put into production or leased in order to pay land
taxes?
Answer. No. Regardless of whether land is leased or developed, taxos are
inevitable. The Land Claims Act states that the lands are exempt from taxation
until 1991 or until leased or developed. If the land is put into production, the
Regional Corporation would have to be quite positive of its potential and pros-
pects for profits before engaging in development. The Regional Corporation's
stockholders have stressed many times that the land should remain with the
stockholders and not be sold. The land that is developed or leased to third party
individuals could contain the stipulation that the lessee would be liable for all
real property taxes incurred during the duration of the lease agreement.
e. Given that so much Alaskan land has been withdrawn for national parks.
and oil reserves, do you think that the remaining land will bear an excessive
State tax burden?
Answer. Due to the monetary situation of the state of Alaska, they could not
exert enough authority to control the lands withdrawn for national parks and
oil reserves without taxing other lands for additional financing.
Question 4. a. What will be the impact of State lease hold taxes on tlhe develop-
ment of Corporation resources?
Answer. This is somewhat difficult to answer since this has not happened yet.
If the taxes are too high, it is possible that the development of the resources
will have a low priority and the corporations could invest in other profit mnakini
ventures.
b. Do you intend to impose taxes on resources developers or Corporation
lands?
Answer. It would depend on what type of develoIpment would take place. If
necessary, this wouldn't be such a bad idea. This would brine in additional
financing to pay the land t.>xes if they do come about, because of development.
Question 5. a. What impact will land taxes have on Village Corporaticons?
Answer. The impact of land taxes on the smaller Village Corporatlion:4 may
be detrimental, because they do not have as much mrney as tlhe larger corpora-
tion having more money. However, it will also depend on what reources are
available on village lands, how murh they are worth, nnd their potential to
generate income necessary for the protection of the land from property taxes.
b. Will they be forced to sell land after 1091 to pay land taxes?
Answer. This should not be necessary, because different alternntiveQ nre
available. The majority of the stockholders depend on the sub.si-tenrpe lainds
and without this. the identity and heritage would be lost. As mentioned before,
a non-profit organization could be established.
Que.tion 6. a. Do you think Alaskan Natives should be ex-mpt from income
taxes? Why? Should the exemption from land taxes be extended? For how long?
Why? Exemption for undeveloped land?






84


An.\ er. Alaska Natives are citizeW of thle .-tate, and are not in a special
category. We have paid income taxes like anyone else and there is no specific
re.as;in why we shouldn't. If there was an exemption, it would be beneficial to
ma ny of the people who make a lot of money.
The exteni4ion of the tax-exempt status of the Native lands would be excel-
lent, if it is psible. Many people already feel that we have more money and
more land than we need. Considering the 40 million acres we will receive under
the L.:md Claims Act as contrasted with the 375 million in the entire state
(which was ours by aboriginal title) we should not pay taxes at all. The land
in Alaska, much of its prime land that we still depend on, is taken by the state
and federal government.
The Amierican government has gotten a lot of money from the lands taken
away from the Indians of the lower 48, and the state and federal government will
probably grow rich from Alaska resource, while the Natives will be faced with
property taxes on what little land was allocated. We were compensated for the
lands taken away from us, but the money settlement devaluates while tlhe value
of the land grow. The more the land is worth, the higher the property taxes will
be. We will have to depend on what land we received and it would be a tragedy
to loh-, it. We should never have to pay taxes on the land: the step we took in
giving up our aboriginal title and rights to the land is far too high of a price
to pay.
b. How will an Alaskan Native living outside the cash economy, pay his land
taxes?
Answer. It is evident that the single Alaskan Native that does live outside
of the tax economy would not be able to pay the land taxes if they are too high.
In this case, it should be the responsibility of the Village or Regional Corpora-
tions to establish a non-profit organization or to look into alternatives of helping
the individual hold onto the land. A community trust could be established where,
if the land is to be sold, the land would go to another Native.
c. Do you think it is possible that those Alaskan Natives living outside tlhe
cash economy might eventually lose their land through foreclosure of land
taxes?
Answer. Yes, it is very possible. If this is the case, the Native may be forced
to go to work to keep his land. If he is to lose it. there should be some protection
or some way to have the Regional Corporation be the first to purchase the land.
Que. tion 7. a. Do you realize that Alaskan Native Claims Settlement Act extin-
guished your hunting and fishing rights and that all hunting and fishing rights
must lie in compliance with State and Federal laws?
Answer. Yes. However, this will not stop subsistence hunters from hunting
in other lands, as they always have.
b. What effect will this have on those who depend on huning and fishing for
a living?
Answer. This will have a very detrimental impact. The welfare rolls would
rise to unimaginable heights. The majority of the people who reside in the village
depend on the land for a substantial amount of their income and food supply.
e. Position of D-2 lands-are they necessary for subsistence?
Answer. All lands around the villages are vital for subsistence. Thqt is the
reason why the village was there in the first place. The D-2 lands were not in
existence when hunting first began.
Qitr.tion 8. a. When Alaskan Natives are allowed to sell their shares in 1991,
what do you think will happen?
Ans.wer. There will be some Natives who will sell their stock for anything
and some who would give their right arm before selling. In the future, the
Regional Corporation could establish a policy for a first right of refusal to buy
stock.
b. What is the possibility that the shares will eventually pass to non-Natives
and the control of the Regional Corporation to non-Natives?
Answer. It is possible. However, it would take a great number of years. The
policies established by the Regional and Village Corporation concerning stock
will determine who will control in the future. The majority of the control will
alwyv he in control of the Natives.
r. How can Alaskan Natives retain control over Regional Corporations after
1991?
A,-\wpr. By making it mandatory that the stock, if it is sold, should be sold
first to the Ren'Ionnl Corporation. The stockholders have a vote on who will
be(com a member of the Board of Directors. This is where the control lies.







85


d. Aflier 1 1, do yviu think Alaskan Natives sh. uild l ive pj-ric.cr.iz t, to the
Re'g.ina Il Corporations in I ln. lircla-e uf tll(icr ..h: .irs?
A ns%%vr. Definitely.
c. )Do you tiink it should lit 1 advisable tl1at at le a..t ,1'" of ll'. sli.i 1 li',,ii ld
lie owned h%. Alaskan Natives in ihe Regional Cor'l orrat i ins?
A.iswer. There is no (pitestimi. Ther'y will.
Qlt'-siiii, 9. a. What righils or claims to Corpotraliin r.sollr'es (lei A1.i-ka:
Natives (children have tiht are born after 1973?
Answer. ''They have tie right to inherit stock.
b. I)o you think they should have been provided for? Ilo\v?
Answer. Yes. The stock k should ie termiinaited uipon de.illi of a sto.kh,,liler, and
tI c1 '!ildren born after 1971 should liecomlie taut oi atic 1ieinlie.'s.
Qu(estion 10. a. Ilow does the Regional Corporation plan to dvel,,ip its

Answer. It would (ld'epeld on what resources are available. If thi.r,'s oil, they
would most likely develop that; thle same with other resources.
b. Will it la-e out thit, land to lie developed?
Answer. Probably. There is much potential on our land-i.
C. On what con(ditil nls? Length of lease, rent, royalty paymenit.s; ni-tilo(lds of
monitoring extraction and provisions for environmental protection, reclamation,
preference in employment ?
An.swer. Tlie stipulations within the lease shmiuld: protect the land andm hive
the lessee liable for the property taxes ; a fee to lie paid : restrictions to protect
thle land; making the lease subject to termination if the termnis are not i-,,miplied
with. Tlre lessees would hold the lessor harmless for any injuries or death that
occur on the premises of the leased lands. Safety regulations would have to
ie complied with. The land should not be subject to waste or subleased. State
statutes would have to be complied with. Environmental impact will be a definite
consideration. Preference in employment, especially on village land, should be
given to thle village stockholders.
d. Will it set up joint ventures? If not, why not?
A.inswer. Yes.
e. Is it thinking of developing the resources itself? If not, why not? If so,
what are the biggest problems in developing the resources?
Answer. Not necessarily. The resources or the development of re.Ir',s
would stimulate the economy and provide much needed jobs and ex-perienc'.
The biggest problems in development would be tlhe taxes, impact ozn the cini-
linatible resources and land uses. The subsistence lands could be jeopardized.
an outsider could come inii and disrupt the village lifestyle. Nonrenewable re-
sources cannot be brought back. Environmental impact is, always a concern.
f. Would it consider contracting out the development of resources such a.
in the Blackfeet-Damson Oil Agreement?
Answer. Possibly.
g. how is the Regional Corporation going to protect itself against the great
pressure from non-Natives to exploit the non-renewable resources?
Answer. By careful deliberation and recognizing tlhe problenis before they
begin. The impacts should be weighed.
h. What conservation measures ha- thIe Corporation adopted for r.new:aole
resources?
Answer. Restoration of the land to its original condition.
Qurstion 11. a. How much have you received in cash from Alaskan Native
Claimn: Settlement Act to date?
Answer. Undetermined.
b. What have you done with the funds?
Answer. Invested both locally and outside of the Vill..ige. Organiz, an of.h,:
salariesv; administrative expense; study of resources; attorneys; paid divid,:ids.
e. At what rate have any been invested? Where?
Answer. 7 percent. The local Credit Union, which was established by the'
Regional Corporation.
d. Have you invested any in developing your resources?
Answer. Gravel.
c. If not. do you intend to?
Answer. Yes.
Quic.tior 12. a. Are you aware of the financial problems of the State of
Alaska?
A.i-wer Yes.







86

b. Do you think that these financial problems might affect you?
Answer. Yes.
Qu .xtion 13. a. Has anyone exerted pressure on you to grant rights-of-way?
Answer. Yes, there have been numerous recommendations for easement res-
ervations. In a sense, the Bureau of Land Management's method of req(luesting
for easement, their justification, width, and advertising in newspapers for
recommendations is educating the public in means of obtaining control of
Native lands through the use of easements. Many have taken advantage of
the opportunity as evidenced by the numerous requests for them.
Sportsmen's groups have formed the Alaska Public Easements Defense Fund
and have tried to stop the government from conveying title to Native lands
until everyone is provided with "a full right of access."
b. Do you feel that you should grant rights-of-way at this time?
Answer. No. No rights-of-way should be granted until the easement recom-
mendations are justified. In the first easement hearings that were conducted
by the Bureau of Land Management, they presented easement recomiieuda-
tions that were based on unfinalized guidelines. Many of the easements were
speculative, unnecessary, illegal and inequitable. Now that the easement guide-
lines are finalized, they are unacceptable. Our lands are private and should ie
treated as private lands.
Question 14. Do you want to mention any problem in the implementation of
the Alaskan Native Claims Settlement Act?
Answer. The problems are numerous, it would take a considerable amount
of time to list them. Briefly: The fact that we do not have title. Problems
with easements; unpatented mining claims; unclear land status. Many de-
cisions of the Land Claims Act being decided by people who are not affected
by the decisions; unfinalization of the navigability question; outsiders trying
to control Native lands before title is conveyed; interpretation of legal ques-
tions and sections of the Act; concern with management of D-2 lands; prop-
erty taxes; devaluation of money settlement; problems with reconveyance;
Secretary of Interior's authority on many issues; possibility of resources ex-
ploitation on lands outside of Village lands; problems that can be expected on
the 70-30% split of subsurface resources when developed.
Q,,ction 15. Would you like the Commission report to mention any amend-
ments to the Alaskan Native Claims Settlement Act? Explain in detail.
Answer. The Omnibus Act passed recently took care of the major amend-
ments. If there is to be any changes it should be the extension of deadlines for
important issues that need careful deliberation. The federal-state Land Use
Planning Commission should remain for a long time, with change in policy
if necessary, and with a majority of local input.

DOYON, LIMITED, FIRST & HALL STREETS, FAIRBANKS, ALASKA, WILLIAM H. TIMME,
GENERAL COUNSEL
Querstin. 1. Could you estimate how many acres have been traditionally used
or occupied by Alaskan natives in your region (or village) ?
Answer. The Athabasean people of the interior were nomadic prior to the
arrival of compulsory education. They basically hunted the entire region now
constituting Doyon, although by and large their activities in summer months
were related to the river systems and surrounding lands.
a. Do you feel that the land which you will select approximates this amount.?
Answer. No.
b. Will traditional subsistence activities be disrupted by the amount and the
manner in which the land will be selected? How?
Answer. Yes. In many villages the only land to which they will be guaranteed
access is that owned by the corporations. This is only a fraction of the land
presently being utilized. People today travel 40 to 100 miles for fall hunting
but under ANCSA the land ownership patterns are limited to the 25 town-
ships immediately around the villages.
c. Do you feel that the U.S. government withheld excessive amounts of land
from selection for the national parks and oil reserves?
Answer. The critical factor is whether the land will be opened for traditional
sulbsistence bunting and fishing. The D-2 proposals, if sufficient protection is
afforded these activities, will insure that the land is not developed and the
people have a chance to preserve their traditional life style. Then D-2 pro-
posals so far only give token support to subsistence activities. This right can-
not be left to the whim of the local administrator but must be written into
the legislation.







87


Question 2. a. How man of the 40 million acres awariled li:ive IlQeenT sml, Ih dl?
Answer. Applications have bIen filed on virtually all except for a ijurlitn of
the 2 million acres under Section 14.
b. Do you feel the progress in election has lieen too slow?
Answer. Thie select ion t lime frame has been far tmo sliort.
c. What has caused the (delays?
Answer. The delays which have been experlneced are due to the failure of thI'
Department to promptly carry out its requirements in terms of proimiiulgtitng
regulations, processing applications, and identifying easements required by the
Act.
d. What effect will these delays have on your corporation?
Answer. We have entered into exploration agre(.mnts under which we are
often required to have title in order to drill wells, etc. By not being able to get
certain identifiable al))lications expedited, we lose time and information, and,
ultimately, we may lose money.
e. How many acres has your corporation selected to (late?
Answer. We lihave selected our full (entitlement (to the extent anyone knows
what it is) and an overselection. We have yet to file applications on groups,
cemetery and historical sites, and Section 14(h) (8) lands. These are due il Julte.
/. What percent is this of the total to be selected?
Answer. All of the major selections under Section 12.
g. Do you have any problem of non-natives being awarded land or occupying
land that should be open for selection by the corporation?
Answer. No, we are required to recognize valid and existing rights.
Question 3. a. What will be the impact of land taxes on the development or
leasing of land by the regional corporations?
Answer. At the present, none. Since there are no statewide property taxes. But
should there be and if it is before 1991, the impact should be minimal
b. Do you think that the regional corporation will postpone leasing or develop-
ment until after 1991 because of such taxation?
Answer. No, it cannot afford to do so because of the 1991 alienation of stock
deadline. A viable corporation must be functioning by that time, resources com-
mitted to development to the extent it doesn't conflict with traditional values.
C. Do you think that after 1991 the regional corporation will be forced to lease
land instead of developing it themselves in order to pay land taxes?
Answer. No, the decision to lease or to self-develop should and. in Dnyon. will
be made in terms of the economics of development and the expertise available. A
land tax compared to the total tax structure should not influence this decision.
d. Do you think that after 1991 the regional corporation will be forced to sell
land which has not been put into production or leased in order to pay land taxes?
Answer. Question ambiguous. Land not in production after 1991 will or can be
taxed. If it has no economic value and if the corporation cannot afford to pay
the taxes, it will have to be sold. Land in production should be generating enough
income to meet its own tax burden.
e. Given that so much Alaskan land has been withdrawn for national parks
and oil reserves, do you think that the remaining land will bear an excessive
state tax burden?
Answer. In Alaska, given our legislature, it is possible, although through the
income generated from state land there should be no need for an increased
property tax because of federally held land.
Question 4. a. What will be the impact of state lease hold taxes on the develop-
ment of corporation resources?
Answer. Disastrous. For the past two years, we have been fighting these taxes.
In most states the large number of private landowners make it politically unwise
to engage in such taxing policies. But in Alaska, where the natives are the land-
owners, the numbers aren't sufficient to mediate the taxing tendencies of the
legislature.
b. Do you intend to impose taxes on resource developers or corporation lands?
Answer. No, we do not have taxing powers. The people of the region, however,
should explore the possibility of borough government in order to tax the develop-
ment to provide for the social services needed.
Question 5. a. What impact will land taxes have on village corporations?
Answer. Disastrous. The villages are the most in need of Iheir land and the
least equipped to meet their tax burden. By definition, their land, if it is to be
used in a traditional manner, cannot be developed but yet it must be developed
if sufficient income is to be generated to pay the taxes. The villages are even
more "land poor" tlimn the regions.







88


b. WVill titey I-v1 for'eil to sfll land after 1991 to Iay land taxes?
An,\ver. l ro!abhly so.
Question 6. a. Do you think Alaskan natives should be exempt from income
taxes? Why? Should the exemption from land taxes be extended? For how ,long?
Why ?
A.Nswer. No. Exemption from income taxation would .ive a false sense of eco-
nomdic seciirity. The regions are going to be large businesses and should be re-
quired to pay their share of governmental costs. As to land taxes, there should
be exemption for large undeveloped tracts of land. This can be done through a
tax credit for not developing, a portion of which would have to be repaid if the
land is sold or developed later. It is unsound land use planning to tax such land
holdings, for it forces the sale of land and a multitude of less desirable uses only
to zonerate money to meet the tax burden.
b). How will an Alasklan native living oNtside tihe cash economy pay his land
tax, s?
Anvwor. He will have no tax burden to speak of since the land will not lie dk-
triblmted on a per capital basis.
c. Do you think it is possible that those AlasIkan natives lVvinz outside tio cash
economy might eventually lose their land through foreclosure for land taxes?
Answer. Not applicable-see answer to b.
Quc.stion. 7. a. Do you realize that ANCSA extinguished your hunting and fish-
ing rights and that all hunting and fishing rights must lie in compliance with
state and( federal lawF?
Answer. ANCSA did not extinguish them. They were extinuilshed by the
Statehood Act. Alaskan Natives did not have treaty rights for hunting and
fishin-.
b. What effect will this have on those who depend on hunting and fishing for a
living?
Answer. Obviously, they hinve to comply with state laiw or risk the penalty for
violating it. We are presently funding the defense of a criminal case which in-
volves the taking of a moose out of season for a traditional burial potlatlc.
Question 8. a. When Alaskan natives are allowed to sell their shares in 1991,
what do you think will happen?
Answer. The natives lose control of the corporations to outside lusineoes,
which will exploit the land at the lowest cost to n a:initze their return. The bill.
g:'me is over.
b. Do you think that it is probable that the shares will eventually pass to non.
natives and the control of the regional corporation to non-natives?
Anzver. Definitely.
e. How can Alaskan natives control over regional corporations after 1991?
Answer. Amend ANCSA to extend the date. There will probably need to be
some buy-out provision for shareholders who wish not to lie shaireholdprs. bulint
thid is a very complex problem in light of the high book value of the stock andml
the small amount of liquid asets of the corporations.
d. After 1991 do you think Alaskan natives should give preference to the re-
gional corTorations in the purchase of their shares?
Answer. Yes.
e. Do you think it would be advisable that at lea.t 51 percent of the shares
should be owned by Alaskan natives in the regional corporations?
Answer. Given the realities of cumulative voting and non-participation, 51
percent native ownership is far too little for native control.
f. How does the regional corporation plan to develop its resources?
Answer. It varies with the regions. Doyon, having deficiency lands away from
villages, plans to develop those lands in the manner so as to maximize the return
to Doyon. Tlhe resource potential must be developed for two reasons: first, it
mnkes it more difficult for a take over if the corporation is viable and function-
ing and th' resources being developed. Secondly, if an individual does sell his
stock, he should get a higher price for it.
Question 9. a. What rights or claims to corporation resources do Alaskan na-
tivo"' children have that are born after 1973?
A.\swer. None-All shareholders of the corporation munt have been living on
Deemlnier 17. 1971, or have inherited their stock.
b. Do you think they should have been provided for now?
Answer. No-a continuous enrollment process would have been an ins.nr-
mountable problem in light of the corporate structure.
Qiucrtion 10. a. How does the regional corporation plan to develop its resources?
Answer. See anLswer to 8f.









b. Will it leaseout the land to 1 e Iqdevei'el ?
An.swer. Some land w ill lie le:1..ed ; ot her hind will le I'I \e!, l,, i',-l so4t.-,. t'I.I
region; still other resources will lie lea.-dl to :;i .I,,ilt-Ve.il itr.* :.l *\ zp region and another party. It will turn oin t the ,i ,iiii,-, tl, ri- vk i .i % 4,v'-'! a ,l
thei sharing provi.. I In.s of Secttii jn 7(i).
c. On lwhat co lidit bis? en igth Iof Ie:i-e; rent. ri ;i ll.% I :ii ,ii-rt ; :ji-t:IF f,4 I f
IIo1( itiorinig extract ,ii ; pi ruvissioiis fir ei ivir-iiiez,'it:il jrt,,'ti,,I:. r'-r Il. ; I Ii n.
preference in empl(,il'menILt ?
Answer. All l)iyi) resource agreem ,ents ini'il- tl,, foill,,vin r, '|:ir," '. ". :
(1) get oil the land. work it hard. :-,' to p"l,1i-o .ii i-'. or L.et IT :
(2) rents and royvaltics are vieed i( n c. ',:juntin un 'th tIe *>".',r! rXii tnil-
and the acreage a nd the market
( ) strict tiivirn, ,iiieiitral sa f.g'uii ,, ,
(4) Native hire ;
(5) rights of first refusal on all .()oiitr ts ilt ivy tit* l --I '.
d. Will it set up joint vent iure.? If ,nut, w hy niit?
Aiiswter. Yes. 1(1o li for the (l'evololImni'it alit] f'r 11t-' i,'l'l iii;:,'' f ." t' :,f'ir
receivedl under the rights of first refusal when it appl,.rs in tlie I,, -t itver-sts ,f
the corporation and its sharelilders to d, soi.
e. Is it thinking of developing the resource. it-ilf: If not. why i:'it? If so,. limit
are the biggest prolllemns in develop)ing tlie re..',iir,- "
Answer. Yes. The greatest l)rolblen is cash. I ,,yi'n in f!t:!.] wii r"c1 .4 v( .--;* ) mil-
liEon. t)ne asbestos mine and mill will cost in exrc,.-4 'f 10( million. A pipici''
from tlhe Kandik oil luasin (which we :ire d'\el,,iiiz-) uill M ,l'-, .I llion (at
today's pI)rices) ; an oil well costs $5 million to drill if ypmn alr.*:idy dl:iv, :ln ,'I
company. Even with levera'ging, we will sion rin out of ijuiiy. Tli- is ;:!! '-,,i-
cared ton a rational resolution of Section 7(i) Wliich would ill, iw us to r,-,',>ii 1ur
expenses as well as obtain a return on our inve.tnmoiit :,.fore w'- !,m;i-, to r':iY fi;;
7Sc of all revenues to the other reg,,ions and our vill:gi.-, and -it-l:t."(1 -,lidir-ehid-
ers. A second problem is whether there is a resiurce to dihvl,,)p aiml the ,-t ,r"
doling the exploration to find this out. The exploration (o,,'t may be ,vey -'. Pi:It :.i'1
may only prove that the resource is not ee,'ioniic:fly fa -.ilblo t,, d,.vp.'.)
f. Would it consider contracting. out the develolmi.eit of r,.siur,-, .':'h as in
the Blackfeet-Damson Oil agreement ?
Answer. We are not familiar within the Blackfeet-Da mssn t oil a Zreinmi:t.
g. How is the regional corporation going to prote t it-elIf a gain:-t ;lhe -r,.,.t lir,.-
sure from non-natives to exploit the non-renewalble re-iiirce-?
Answer. The regional corporation is run by a bird l ,i.-1td1 by tio ::i ive
shareholders. The board members like to serve and. thus. if they take arirms con-
trary to the wishes of their constituents, they will nt b.e 'given that opportunity.
A. What conservation measures has the corporation I n pted f.,r r.r,,.i,,le
resources ?
Answer. Doynn does not have any renewable re-,u-,r.c* which it Is d,-vml,.Ti,, i
Timber (whi(-ch is not being (levelolped) in so-me af'l,.s m:iay lie consiipredl t, it- a
renewable resource, but in our region the turn-around time on a tree suitable for
harvest is 120 to 150 years.
Qiiuction 11. a. How much have you received in 'a-h from ANCSA to ulte?
Answer. The region has received approximately 8.i million of which $15 mil-
lion went to Doyon, the balance to the village corp<,ratiii, and at-la;:r, sh. ro-
holders. See attached annual report.
b. What have you done with the funds?
Answer. They are basically being invested in sli ,rt-tormn paper. How.\,r. ".*,
have constructed an office lbuillding, set up a surveyin.u company, participated in a
Native-owned bank in Anchorage, and particip:'ittd in several jint vtvr,,i-.
c. At wlhat rate have any lien invested? Where?
Funds are inve(ted in a poo)led trust tylie of "rl-,*'i!i't in lhasi,:m. iy .,,,t-t.rm
government and high grade agency paper. The rate varies wi"i tl.,e ma:irkett.
Alaska National Bank anid M.ura;:;1 Guara uty are 1iia llinri the in\ -:e:.ts.
d. Ilave you invested any in (dev-eloIing your resource'.?
Other thimn negotiating tlie agreements and the lindl s-lectiin exi'i' -.-. No.
r. If not. do you intend to?
Answer. Yesz, but it will be a reou(,)rce by resource (li.,i,,.
Qiic. tfion 12. a. Are you aware of tlie financial iprollems of the Sat, ,,f
Alas'ka?
Answe.r. What are the "financial problem-" of tfli v ate o.f Alaska:? TIz,- ill w
reserve in place tax was to generate sufficient revenue to cover tlhe -shiort fill in






90

incm!iie until the royalty oil began to flow. The problems of Alaska are more in
terms of tlhe use of the funds and not the lack of them. The current oil tax flap
aris.es not from a need of tax funds but a desire for a larger slice of the pie.
b. Do you think that these financial problems might affect you?
Answer. As citizens of the State, its financial problems affect us. If taxes
are increased, it makes it less profitable for us to do business. If, for instance, one
section of the community (oil companies) are taxed irrationally then they will
not seek to .-pend their dollars in the state and on our lands.
Question 13. a. Has anyone exerted pressure on you to grant rights-of-way?
Answer. Yes-the Bureau of Land Management. The whole easement policy
of the Delipartment is one which creates serious problems for the corporations
and is far in excess of what Congress intended.
b. Do you feel that you should grant rights-of-way at this time?
Answer. We are presently contesting any easement reservation which we
believe to be in violation of ANCSA. But it is ridiculous that we have to waste
our time and money doing so when it is the fault of Interior.
Question 14. Do you want to mention any problem in the implementation of
the ANCSA?
Answer. There are several problems. Doyon over the past years has spent
thousands and thousands of dollars and, more importantly, a great deal of time
and effort which could and should have been directed in other areas fighting
the Department to have them implement the Act as Congress intended. The De-
partment has not changed its attitude. In the past it was said that the Depart-
ment held the land in trust for the Indian peoples, and we all know what that
really meant. Today, it can be said and quite correctly, the Natives of Alaska
hold their land in trust for the Department and the non-Natives.
We are constantly fighting the problem of getting critical conveyances ex-
pedited; fighting easements for campsites, pipelines, roads and all sorts of other
purposes which were not contemplated by the Act and for which any other
private landowner would be compensated.
We have spent money trying to resolve our problems with the other agencies as
well. Witness the difficulties with the S.E.C. We have a private revenue ruling
request before the IRS dealing with the most obvious, but IRS has refused to
agree and for that matter has refused to answer it for the past two years.
Question 15. Would you like the Commission report to mention any amendments
to the ANCSA? Explain in detail.
Answer. A review of the 1991 transferability of the stock with the goal of struc-
turing a mechanism whereby the Native people will be assured of their continued
control after that date.
The exemption from taxation of undeveloped land held by the corporations.


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