[Congressional Record Volume 149, Number 96 (Thursday, June 26, 2003)]
[Senate]
[Pages S8747-S8749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself and Mr. Stevens):
  S. 1354. A bill to resolve certain conveyances and provide for 
alternative land selections under the Alaska Native Claims Settlement 
Act related to Cape Fox Corporation and Sealaska Corporation, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Ms. MURKOWSKI. Mr. President, I rise today to reintroduce a bill that 
passed the Senate with bipartisan support in the 107th Congress. This 
legislation addresses an equity issue for one of Alaska's rural village 
corporations.
  Cape Fox Corporation is an Alaskan Village Corporation organized 
pursuant to the Alaska Native Claims Settlement Act, by the Native 
Village of Saxman, near Ketchikan, AK. As with other ANCSA village 
corporations in Southeast Alaska, Cape Fox was limited to selecting 
23,040 acres under Section 16. However, unlike other village 
corporations, Cape Fox was further restricted from selecting lands 
within 6 miles of the boundary of the home rule city of Ketchikan. All 
other ANCSA corporations were restricted from selecting within 2 miles 
of such a home rule of city.
  The 6-mile restriction went beyond protecting Ketchikan's watershed 
and damaged Cape Fox by preventing the corporation from selecting 
valuable timber lands, industrial sites, and other commercial property, 
not only in its core township, but in surrounding lands far removed 
from Ketchikan and its watershed. AS a result of the 6-mile 
restriction, only the mountainous northeast corner of Cape Fox's core 
township, which is nonproductive and of no economic value, was 
available for selection by the corporation. Cape Fox's land selections 
were further limited by the fact that the Annette Island Indian 
Reservation is within its selection area, and those lands were 
unavailable for ANCSA selection. Cape Fox is the only ANCSA village 
corporation affected by this restriction.
  Clearly, Cape Fox was placed on unequal economic footing relative to 
other village corporations in Southeast Alaska. Despite its best 
efforts during the years since ANCSA was signed into law, Cape Fox has 
been unable to overcome the disadvantage the law built into its land 
selection opportunities by this inequitable treatment.
  To address this inequity, I have introduced the Cape Fox Land 
Entitlement Adjustment Act of 2003. This bill will address the Cape Fox 
problem by providing three interrelated remedies:
  (1) The obligation of Cape Fox to select and seek conveyance of the 
approximately 160 acres of unusable land in the mountainous northeast 
corner of Cape Fox's core township will be annulled.
  (2) Cape Fox will be allowed to select and the Secretary of the 
Interior will be directed to convey 99 acres of timber land adjacent to 
Cape Fox's current holdings on Revilla Island.
  (3) Cape Fox and the Secretary of Agriculture will be authorized to 
enter into an equal value exchange of lands in Southeast Alaska that 
will be of mutual benefit to the Corporation and the U.S. Forest 
Service. Lands conveyed to Cape Fox in this exchange will not be 
timberlands, but will be associated with a mining property containing 
existing Federal mining claims, some of which are patented. Lands 
anticipated to be returned to Forest Service ownership will be of 
wildlife habitat, recreation and watershed values and will consolidate 
Forest Service holdings in the George Inlet area of Revilla Island.
  The land exchange provisions of this bill will help rectify the long-
standing inequities associated with restrictions placed on Cape Fox in 
ANCSA. It will help allow this Native village corporation to make the 
transition from its major dependence on timber harvest to a more 
diversified portfolio of income-producing lands.
  The bill also provides for the resolution of a long-standing land 
ownership problem with the Tongass National Forest. The predominant 
private landowner in the region, Sealaska Corporation, holds the 
subsurface estate on several thousand acres of National Forest System 
lands. This split estate poses a management problem which the Forest 
Service has long sought to resolve. Efforts to address this issue go 
back more than a decade. Provisions in the Cape Fox Land Entitlement 
Act of 2003 will allow the agency to consolidate its surface and 
subsurface estate and greatly enhance its management effectiveness and 
efficiency in the Tongass National Forest. I urge my colleagues to 
support this important legislation. I ask unanimous consent that the 
text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1354

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

     SEC. 1. SHORT TITLE.

       This Act may be cited as the ``Cape Fox Land Entitlement 
     Adjustment Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds that:
       (1) Cape Fox Corporation (Cape Fox) is an Alaska Native 
     Village Corporation organized pursuant to the Alaska Native 
     Claims Settlement Act (ANCSA) (43 U.S.C. 1601 et seq.) for 
     the Native Village of Saxman.
       (2) As with other ANCSA village corporations in Southeast 
     Alaska, Cape Fox was limited to selecting 23,040 acres under 
     section 16 of ANCSA.
       (3) Except for Cape Fox, all other Southeast Alaska ANCSA 
     village corporations were restricted from selecting within 
     two miles of a home rule city.

[[Page S8748]]

       (4) To protect the watersheds in the vicinity of Ketchikan, 
     Cape Fox was restricted from selecting lands within six miles 
     from the boundary of the home rule City of Ketchikan under 
     section 22(1) of ANCSA (43 U.S.C. 1621(1)).
       (5) The six mile restriction damaged Cape Fox by precluding 
     the corporation from selecting valuable timber lands, 
     industrial sites, and other commercial property, not only in 
     its core township but in surrounding lands far removed from 
     Ketchikan and its watershed.
       (6) As a result of the 6 mile restriction, only the remote 
     mountainous northeast corner of Cape Fox's core township, 
     which is nonproductive and of no known economic value, was 
     available for selection by the corporation. Selection of this 
     parcel was, however, mandated by section 16(b) of ANCSA (43 
     U.S.C. 1615(b)).
       (7) Cape Fox's land selections were further limited by the 
     fact that the Annette Island Indian Reservation is within its 
     selection area, and those lands were unavailable for ANCSA 
     selection. Cape Fox is the only ANCSA village corporation 
     affected by this restriction.
       (8) Adjustment of Cape Fox's selections and conveyances of 
     land under ANCSA requires adjustment of Sealaska 
     Corporation's (Sealaska) selections and conveyances to avoid 
     creation of additional split estate between National Forest 
     System surface lands and Sealaska subsurface lands.
       (9) Sealaska is the Alaska native regional corporation for 
     Southeast Alaska, organized under the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.).
       (10) There is an additional need to resolve existing areas 
     of Sealaska/Tongass split estate, in which Sealaska holds 
     title or conveyance rights to several thousand acres of 
     subsurface lands that encumber management of Tongass National 
     Forest surface lands.
       (11) The Tongass National Forest lands identified in this 
     Act for selection by and conveyance to Cape Fox and Sealaska, 
     subject to valid existing rights, provide a means to resolve 
     some of the Cape Fox and Sealaska ANCSA land entitlement 
     issues without significantly affecting Tongass National 
     Forest resources, uses or values.
       (12) Adjustment of Cape Fox's selections and conveyances of 
     land under ANCSA through the provisions of this Act, and the 
     related adjustment of Sealaska's selections and conveyances 
     hereunder, are in accordance with the purposes of ANCSA and 
     otherwise in the public interest.

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

       Notwithstanding the provisions of section 16(b) of ANCSA 
     (43 U.S.C. 1615(b)), Cape Fox shall not be required to select 
     or receive conveyance of approximately 160 acres of Federal 
     unconveyed lands within Section 1, T. 75 S., R. 91 E., C.R.M.

     SEC. 4. SELECTION OUTSIDE EXTERIOR SELECTION BOUNDARY.

       (a) Selection and Conveyance of Surface Estate.--In 
     addition to lands made available for selection under ANCSA, 
     within 24 months after the date of enactment of this Act, 
     Cape Fox may select, and, upon receiving written notice of 
     such selection, the Secretary of the Interior shall convey 
     approximately 99 acres of the surface estate of Tongass 
     National Forest lands outside Cape Fox's current exterior 
     selection boundary, specifically that parcel described as 
     follows:
       (1) T. 73 S., R. 90 E., C.R.M.
       (2) Section 33: SW portion of SE\1/4\: 38 acres.
       (3) Section 33: NW portion of SE\1/4\: 13 acres.
       (4) Section 33: SE\1/4\ of SE\1/4\: 40 acres.
       (5) Section 33: SE\1/4\ of SW\1/4\: 8 acres.
       (b) Conveyance of Subsurface Estate.--Upon conveyance to 
     Cape Fox of the surface estate to the lands identified in 
     subsection (a), the Secretary of the Interior shall convey to 
     Sealaska the subsurface estate to the lands.
       (c) Timing.--The Secretary of the Interior shall complete 
     the interim conveyances to Cape Fox and Sealaska under this 
     section within 180 days after the Secretary of the Interior 
     receives notice of the Cape Fox selection under subsection 
     (a).

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

       (a) General.--The Secretary of Agriculture shall offer, and 
     if accepted by Cape Fox, shall exchange the Federal lands 
     described in subsection (b) for lands and interests therein 
     identified by Cape Fox under subsection (c) and, to the 
     extent necessary, lands and interests therein identified 
     under subsection (d).
       (b) Lands To Be Exchanged to Cape Fox.--The lands to be 
     offered for exchange by the Secretary of Agriculture are 
     Tongass National Forest lands comprising approximately 
     2,663.9 acres in T. 36 S., R. 62 E., C.R.M. and T. 35 S., R. 
     62 E., C.R.M., as designated upon a map entitled ``Proposed 
     Kensington Project Land Exchange'', dated March 18, 2002, and 
     available for inspection in the Forest Service Region 10 
     regional office in Juneau, Alaska.
       (c) Lands To Be Exchanged to the United States.--Cape Fox 
     shall be entitled, within 60 days after the date of enactment 
     of this Act, to identify in writing to the Secretaries of 
     Agriculture and the Interior the lands and interests in lands 
     that Cape Fox proposes to exchange for the Federal lands 
     described in subsection (b). The lands and interests in lands 
     shall be identified from lands previously conveyed to Cape 
     Fox comprising approximately 2,900 acres and designated as 
     parcels A-1 to A-3, B-1 to B-3, and C upon a map entitled 
     ``Cape Fox Corporation ANCSA Land Exchange Proposal'', dated 
     March 15, 2002, and available for inspection in the Forest 
     Service Region 10 regional office in Juneau, Alaska. Lands 
     identified for exchange within each parcel shall be 
     contiguous to adjacent National Forest System lands and in 
     reasonably compact tracts. The lands identified for exchange 
     shall include a public trail easement designated as D on said 
     map, unless the Secretary of Agriculture agrees otherwise. 
     The value of the easement shall be included in determining 
     the total value of lands exchanged to the United States.
       (d) Valuation of Exchange Lands.--The Secretary of 
     Agriculture shall determine whether the lands identified by 
     Cape Fox under subsection (c) are equal in value to the lands 
     described in subsection (b). If the lands identified under 
     subsection (c) are determined to have insufficient value to 
     equal the value of the lands described in subsection (b), 
     Cape Fox and the Secretary shall mutually identify additional 
     Cape Fox lands for exchange sufficient to equalize the value 
     of lands conveyed to Cape Fox. Such land shall be contiguous 
     to adjacent National Forest System lands and in reasonably 
     compact tracts.
       (e) Conditions.--The offer and conveyance of Federal lands 
     to Cape Fox in the exchange shall, notwithstanding section 
     14(f) of ANCSA, be of the surface and subsurface estate, but 
     subject to valid existing rights and all other provisions of 
     section 14(g) of ANCSA.
       (f) Timing.--The Secretary of Agriculture shall attempt, 
     within 90 days after the date of enactment of this Act, to 
     enter into an agreement with Cape Fox to consummate the 
     exchange consistent with this Act. The lands identified in 
     the exchange agreement shall be exchanged by conveyance at 
     the earliest possible date after the exchange agreement is 
     signed. Subject only to conveyance from Cape Fox to the 
     United States of all its rights, title and interests in the 
     Cape Fox lands included in the exchange consistent with this 
     title, the Secretary of the Interior shall complete the 
     interim conveyance to Cape Fox of the Federal lands included 
     in the exchange within 180 days after the execution of the 
     exchange agreement by Cape Fox and the Secretary of 
     Agriculture.

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

       (a) General.--Upon conveyance of the Cape Fox lands 
     included in the exchange under section 5 and conveyance and 
     relinquishment by Sealaska in accordance with this title of 
     the lands and interests in lands described in subsection (c), 
     the Secretary of the Interior shall convey to Sealaska the 
     Federal lands identified for exchange under subsection (b).
       (b) Lands To Be Exchanged to Sealaska.--The lands to be 
     exchanged to Sealaska are to be selected by Sealaska from 
     Tongass National Forest lands comprising approximately 9,329 
     acres in T. 36 S., R. 62 E., C.R.M., T. 35 S., R. 62 E., 
     C.R.M., and T. 34 S., Range 62 E., C.R.M., as designated upon 
     a map entitled ``Proposed Sealaska Corporation Land Exchange 
     Kensington Lands Selection Area'', dated April 2002 and 
     available for inspection in the Forest Service Region 10 
     Regional Office in Juneau, Alaska. Within 60 days after 
     receiving notice of the identification by Cape Fox of the 
     exchange lands under section 5(c), Sealaska shall be entitled 
     to identify in writing to the Secretaries of Agriculture and 
     the Interior the lands that Sealaska selects to receive in 
     exchange for the Sealaska lands described in subsection (c). 
     Lands selected by Sealaska shall be in no more than two 
     contiguous and reasonably compact tracts that adjoin the 
     lands described for exchange to Cape Fox in section 5(b). The 
     Secretary of Agriculture shall determine whether these 
     selected lands are equal in value to the lands described in 
     subsection (c) and may adjust the amount of selected lands in 
     order to reach agreement with Sealaska regarding equal value. 
     The exchange conveyance to Sealaska shall be of the surface 
     and subsurface estate in the lands selected and agreed to by 
     the Secretary but subject to valid existing rights and all 
     other provisions of section 14(g) of ANCSA.
       (c) Lands To Be Exchanged to the United States.--The lands 
     and interests therein to be exchanged by Sealaska are the 
     subsurface estate underlying the Cape Fox exchange lands 
     described in section 5(c), an additional approximately 2,506 
     acres of the subsurface estate underlying Tongass National 
     Forest surface estate, described in Interim Conveyance No. 
     1673, and rights to be additional approximately 2,698 acres 
     of subsurface estate of Tongass National Forest lands 
     remaining to be conveyed to Sealaska from Group 1, 2 and 3 
     lands as set forth in the Sealaska Corporation/United States 
     Forest Service Split Estate Exchange Agreement of November 
     26, 1991, at Schedule B, as modified on January 20, 1995.
       (d) Timing.--The Secretary of Agriculture shall attempt, 
     within 90 days after receipt of the selection of lands by 
     Sealaska under subsection (b), to enter into an agreement 
     with Sealaska to consummate the exchange consistent with this 
     Act. The lands identified in the exchange agreement shall be 
     exchanged by conveyance at the earliest possible date after 
     the exchange agreement is signed. Subject only to the Cape 
     Fox and Sealaska conveyances and relinquishments described in 
     subsection (a), the Secretary of the Interior shall complete 
     the interim conveyance to Sealaska of the Federal lands 
     selected for exchange within 180 days after execution of the

[[Page S8749]]

     agreement by Sealaska and the Secretary of Agriculture.
       (e) Modification of Agreement.--The executed exchange 
     agreement under this section shall be considered a further 
     modification of the Sealaska Corporation/United States Forest 
     Service Split Estate Exchange Agreement, as ratified in 
     section 17 of Public Law 102-415 (October 14, 1992).

     SEC. 7. MISCELLANEOUS PROVISIONS.

       (a) Equal Value Requirement.--The exchanges described in 
     this Act shall be of equal value. Cape Fox and Sealaska shall 
     have the opportunity to present to the Secretary of 
     Agriculture estimates of value of exchange lands with 
     supporting information.
       (b) Title.--Cape Fox and Sealaska shall convey and provide 
     evidence of title satisfactory to the Secretary of 
     Agriculture for their respective lands to be exchanged to the 
     United States under this Act, subject only to exceptions, 
     reservations and encumbrances in the interim conveyance or 
     patent from the United States or otherwise acceptable to the 
     Secretary of Agriculture.
       (c) Hazardous Substances.--Cape Fox, Sealaska, and the 
     United States each shall not be subject to liability for the 
     presence of any hazardous substance in land or interests in 
     land solely as a result of any conveyance or transfer of the 
     land or interests under this Act.
       (d) Effect on ANCSA Selections.--Any conveyance of Federal 
     surface or subsurface lands to Cape Fox or Sealaska under 
     this Act shall be considered, for all purposes, land conveyed 
     pursuant to ANCSA. Nothing in this Act shall be construed to 
     change the total acreage of land entitlement of Cape Fox or 
     Sealaska under ANCSA. Cape Fox and Sealaska shall remain 
     charged for any lands they exchange under this Act and any 
     lands conveyed pursuant to section 4, but shall not be 
     charged for any lands received under section 5 or section 6. 
     The exchanges described in this Act shall be considered, for 
     all purposes, actions which lead to the issuance of 
     conveyances to Native Corporations pursuant to ANCSA. Lands 
     or interests therein transferred to the United States under 
     this Act shall become and be administered as part of the 
     Tongass National Forest.
       (e) Effect on Statehood Selections.--Lands conveyed to or 
     selected by the State of Alaska under the Alaska Statehood 
     Act (Public Law 85-508; 72 Stat. 339; 48 U.S.C. note prec. 
     21) shall not be eligible for selection or conveyance under 
     this Act without the consent of the State of Alaska.
       (f) Maps.--The maps referred to in this Act shall be 
     maintained on file in the Forest Service Region 10 Regional 
     Office in Juneau, Alaska. The acreages cited in this Act are 
     approximate, and if there is any discrepancy between cited 
     acreage and the land depicted on the specified maps, the maps 
     shall control. The maps do not constitute an attempt by the 
     United States to convey State or private land.
       (g) Easements.--Notwithstanding section 17(b) of ANCSA, 
     Federal lands conveyed to Cape Fox or Sealaska pursuant to 
     this Act shall be subject only to the reservation of public 
     easements mutually agreed to and set forth in the exchange 
     agreements executed under this Act. The easements shall 
     include easements necessary for access across the lands 
     conveyed under this Act for use of national forest or other 
     public lands.
       (h) Old Growth Reserves.--The Secretary of Agriculture 
     shall add an equal number of acres to old growth reserves on 
     the Tongass National Forest as are transferred out of Federal 
     ownership as a result of this Act.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) Department of Agriculture.--There are authorized to be 
     appropriated to the Secretary of Agriculture such sums as may 
     be necessary for value estimation and related costs of 
     exchanging lands specified in this Act, and for road 
     rehabilitation, habitat and timber stand improvement, 
     including thinning and pruning, on lands acquired by the 
     United States under this Act.
       (b) Department of the Interior.--There are authorized to be 
     appropriated to the Secretary of the Interior such sums as 
     may be necessary for land surveys and conveyances pursuant to 
     this Act.
                                 ______