[House Report 104-756]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-756
_______________________________________________________________________


 
        KENAI NATIVES ASSOCIATION EQUITY ACT AMENDMENTS OF 1996

_______________________________________________________________________


 September 4, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 401]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 401) entitled the ``Kenai Natives Association Equity 
Act'', having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Kenai Natives Association Equity Act 
Amendments of 1996''.

SEC. 2. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds the following:
          (1) The United States Fish and Wildlife Service and Kenai 
        Natives Association, Inc., have agreed to transfers of certain 
        land rights, in and near the Kenai National Wildlife Refuge, 
        negotiated as directed by Public Law 102-458.
          (2) The lands to be acquired by the Service are within the 
        area impacted by the Exxon Valdez oil spill of 1989, and these 
        lands included important habitat for various species of fish 
        and wildlife for which significant injury resulting from the 
        spill has been documented through the EVOS Trustee Council 
        restoration process. This analysis has indicated that these 
        lands generally have value for the restoration of such injured 
        natural resources as pink salmon, dolly varden, bald eagles, 
        river otters, and cultural and archeological resources. This 
        analysis has also indicated that these lands generally have 
        high value for the restoration of injured species that rely on 
        these natural resources, including wilderness quality, 
        recreation, tourism, and subsistence.
          (3) Restoration of the injured species will benefit from 
        acquisition and the prevention of disturbances which may 
        adversely affect their recovery.
          (4) It is in the public interest to complete the conveyances 
        provided for in this Act.
  (b) Purpose.--The purpose of this Act is to authorize and direct the 
Secretary, at the election of KNA, to complete the conveyances provided 
for in this Act.

SEC. 3. DEFINITIONS.

  For purposes of this Act, the term--
          (1) ``ANCSA'' means the Alaska Native Claims Settlement Act 
        of 1971 (43 U.S.C. 1601 et seq.);
          (2) ``ANILCA'' means the Alaska National Interest Lands 
        Conservation Act (Public Law 96-487; 94 Stat. 2371 et seq.);
          (3) ``Conservation system unit'' has the same meaning as in 
        section 102(4) of ANILCA (16 U.S.C. 3102(4));
          (4) ``CIRI'' means the Cook Inlet Region, Inc., a Native 
        Regional Corporation incorporated in the State of Alaska 
        pursuant to the terms of ANCSA;
          (5) ``EVOS'' means the Exxon Valdez oil spill;
          (6) ``KNA'' means the Kenai Natives Association, Inc., an 
        urban corporation incorporated in the State of Alaska pursuant 
        to the terms of ANCSA;
          (7) ``Lands'' means any lands, waters, or interests therein;
          (8) ``Refuge'' means the Kenai National Wildlife Refuge;
          (9) ``Secretary'' means the Secretary of the Interior;
          (10) ``Service'' means the United States Fish and Wildlife 
        Service; and
          (11) ``Terms and Conditions'' means the Terms and Conditions 
        for Land Consolidation and Management in the Cook Inlet Area, 
        as clarified on August 31, 1976, ratified by section 12 of 
        Public Law 94-204 (43 U.S.C. 1611 note).

SEC. 4. ACQUISITION OF LANDS.

  (a) Offer to KNA.--
          (1) In general.--Subject to the availability of the funds 
        identified in subsection (b)(3), no later than 90 days after 
        the date of enactment of this Act, the Secretary shall offer to 
        convey to KNA the interests in land and rights set forth in 
        subsection (b)(2), subject to valid existing rights, in return 
        for the conveyance by KNA to the United States of the interests 
        in land or relinquishment of ANCSA selections set forth in 
        subsection (b)(1). Payment for the lands conveyed to the United 
        States by KNA is contingent upon KNA's acceptance of the entire 
        conveyance outlined herein.
          (2) Limitation.--The Secretary may not convey any lands or 
        make payment to KNA under this section unless title to the 
        lands to be conveyed by KNA under this Act has been found by 
        the United States to be sufficient in accordance with the 
        provisions of section 355 of the Revised Statutes (40 U.S.C. 
        255).
  (b) Acquisition Lands.--
          (1) Lands to be conveyed to the united states.--The lands to 
        be conveyed by KNA to the United States, or the valid selection 
        rights under ANCSA to be relinquished, all situated within the 
        boundary of the Refuge, are the following:
                  (A) The conveyance of approximately 803 acres located 
                along and on islands within the Kenai River, known as 
                the Stephanka Tract.
                  (B) The conveyance of approximately 1,243 acres 
                located along the Moose River, known as the Moose River 
                Patented Lands Tract.
                  (C) The relinquishment of KNA's selection known as 
                the Moose River Selected Tract, containing 
                approximately 753 acres located along the Moose River.
                  (D) The relinquishment of KNA's remaining ANCSA 
                entitlement of approximately 454 acres.
                  (E) The relinquishment of all KNA's remaining 
                overselections. Upon completion of all relinquishments 
                outlined above, all KNA's entitlement shall be deemed 
                to be extinguished and the completion of this 
                acquisition will satisfy all of KNA's ANCSA 
                entitlement.
                  (F) The conveyance of an access easement providing 
                the United States and its assigns access across KNA's 
                surface estate in the SW\1/4\ of section 21, T. 6 N., 
                R. 9 W., Seward Meridian, Alaska.
                  (G) The conveyance of approximately 100 acres within 
                the Beaver Creek Patented Tract, which is contiguous to 
                lands being retained by the United States contiguous to 
                the Beaver Creek Patented Tract, in exchange for 280 
                acres of Service lands currently situated within the 
                Beaver Creek Selected Tract.
          (2) Lands to be conveyed to kna.--The rights provided or 
        lands to be conveyed by the United States to KNA, are the 
        following:
                  (A) The surface and subsurface estate to 
                approximately 5 acres, subject to reservations of 
                easements for existing roads and utilities, located 
                within the city of Kenai, Alaska, identified as United 
                States Survey 1435, withdrawn by Executive Order 2934, 
                and known as the old Fish and Wildlife Service 
                Headquarters site.
                  (B) The remaining subsurface estate held by the 
                United States to approximately 13,811 acres, including 
                portions of the Beaver Creek Patented Tract, the Beaver 
                Creek Selected Tract, and portions of the Swanson River 
                Road West Tract and the Swanson River Road East Tract, 
                where the surface was previously or will be conveyed to 
                KNA pursuant to this Act. The conveyance of these 
                subsurface interests will be subject to the rights of 
                CIRI to the coal, oil, and gas, and to all rights CIRI, 
                its successors, and assigns would have under paragraph 
                1(B) of the Terms and Conditions, including the right 
                to sand and gravel, to construct facilities, to have 
                rights-of-way, and to otherwise develop its subsurface 
                interests.
                  (C)(i) The nonexclusive right to use sand and gravel 
                which is reasonably necessary for on-site development 
                without compensation or permit on those portions of the 
                Swanson River Road East Tract, comprising approximately 
                1,738.04 acres; where the entire subsurface of the land 
                is presently owned by the United States. The United 
                States shall retain the ownership of all other sand and 
                gravel located within the subsurface and KNA shall not 
                sell or dispose of such sand and gravel.
                  (ii) The right to excavate within the subsurface 
                estate as reasonably necessary for structures, 
                utilities, transportation systems, and other 
                development of the surface estate.
                  (D) The nonexclusive right to excavate within the 
                subsurface estate as reasonably necessary for 
                structures, utilities, transportation systems, and 
                other development of the surface estate on the SW\1/4\, 
                section 21, T. 6 N., R. 9 W., Seward Meridian, Alaska, 
                where the entire subsurface of the land is owned by the 
                United States and which public lands shall continue to 
                be withdrawn from mining following their removal from 
                the Refuge boundary under subsection (c)(1)(B). The 
                United States shall retain the ownership of all other 
                sand and gravel located within the subsurface of this 
                parcel.
                  (E) The surface estate of approximately 280 acres 
                known as the Beaver Creek Selected Tract. This tract 
                shall be conveyed to KNA in exchange for lands conveyed 
                to the United States as described in subsection 
                (b)(1)(B).
          (3) Payment.--The United States shall make a total cash 
        payment to KNA for the above-described lands of $4,443,000, 
        contingent upon the appropriate approvals of the Federal or 
        State of Alaska EVOS Trustees (or both) necessary for any 
        expenditure of the EVOS settlement funds.
          (4) National register of historic places.--Upon completion of 
        the acquisition authorized in subsection (a), the Secretary 
        shall, at no cost to KNA, in coordination with KNA, promptly 
        undertake to nominate the Stephanka Tract to the National 
        Register of Historic Places, in recognition of the 
        archaeological artifacts from the original Dena'ina Settlement. 
        If the Department of the Interior establishes a historical, 
        cultural, or archaeological interpretive site, KNA shall have 
        the exclusive right to operate a Dena'ina interpretive site on 
        the Stephanka Tract under the regulations and policies of the 
        department. If KNA declines to operate such a site, the 
        department may do so under its existing authorities. Prior to 
        the department undertaking any archaeological activities 
        whatsoever on the Stephanka Tract, KNA shall be consulted.
  (c) General Provisions.--
          (1) Removal of kna lands from the national wildlife refuge 
        system.--
                  (A) Effective on the date of closing for the 
                Acquisition Lands identified in subsection (b)(2), all 
                lands retained by or conveyed to KNA pursuant to this 
                Act, and the subsurface interests of CIRI underlying 
                such lands shall be automatically removed from the 
                National Wildlife Refuge System and shall neither be 
                considered as part of the Refuge nor subject to any 
                laws pertaining solely to lands within the boundaries 
                of the Refuge. The conveyance restrictions imposed by 
                section 22(g) of ANCSA (i) shall then be ineffective 
                and cease to apply to such interests of KNA and CIRI, 
                and (ii) shall not be applicable to the interests 
                received by KNA in accordance with subsection (b)(2) or 
                to the CIRI interests underlying them. The Secretary 
                shall adjust the boundaries of the Refuge so as to 
                exclude all interests in lands retained or received in 
                exchange by KNA in accordance with this Act, including 
                both surface and subsurface, and shall also exclude all 
                interests currently held by CIRI. On lands within the 
                Swanson River Road East Tract, the boundary adjustment 
                shall only include the surface estate where the 
                subsurface estate is retained by the United States.
                  (B)(i) The Secretary, KNA, and CIRI shall execute an 
                agreement within 45 days of the date of enactment of 
                this Act which preserves CIRI's rights under paragraph 
                1(B)(1) of the Terms and Conditions, addresses CIRI's 
                obligations under such paragraph, and adequately 
                addresses management issues associated with the 
                boundary adjustment set forth in this Act and with the 
                differing interests in land resulting from enactment of 
                this Act.
                  (ii) In the event that no agreement is executed as 
                provided for in clause (i), solely for the purposes of 
                administering CIRI's rights under paragraph 1(B)(1) of 
                the Terms and Conditions, the Secretary and CIRI shall 
                be deemed to have retained their respective rights and 
                obligations with respect to CIRI's subsurface interests 
                under the requirements of the Terms and Conditions in 
                effect on June 18, 1996. Notwithstanding the boundary 
                adjustments made pursuant to this Act, conveyances to 
                KNA shall be deemed to remain subject to the 
                Secretary's and CIRI's rights and obligations under 
                paragraph 1(B)(1) of the Terms and Conditions.
                  (C) The Secretary is authorized to acquire by 
                purchase or exchange, on a willing seller basis only, 
                any lands retained by or conveyed to KNA. In the event 
                that any lands owned by KNA are subsequently acquired 
                by the United States, they shall be automatically 
                included in the Refuge System. The laws and regulations 
                applicable to Refuge lands shall then apply to these 
                lands and the Secretary shall then adjust the 
                boundaries accordingly.
                  (D) Nothing in this Act is intended to enlarge or 
                diminish the authorities, rights, duties, obligations, 
                or the property rights held by CIRI under the Terms and 
                Conditions, or otherwise except as set forth in this 
                Act. In the event of the purchase by the United States 
                of any lands from KNA in accordance with paragraph 
                (1)(B), the United States shall reassume from KNA the 
                rights it previously held under the Terms and 
                Conditions and the provisions in any patent 
                implementing section 22(g) of ANCSA will again apply.
                  (E) By virtue of implementation of this Act, CIRI is 
                deemed entitled to 1,207 acres of in-lieu subsurface 
                entitlement under section 12(a)(1) of ANCSA. Such 
                entitlement shall be fulfilled in accordance with 
                paragraph 1(B)(2)(A) of the Terms and Conditions.
          (2) Maps and legal descriptions.--Maps and a legal 
        description of the lands described above shall be on file and 
        available for public inspection in the appropriate offices of 
        the United States Department of the Interior, and the Secretary 
        shall, no later than 90 days after enactment of this Act, 
        prepare a legal description of the lands described in 
        subsection (b)(1)(G). Such maps and legal description shall 
        have the same force and effect as if included in the Act, 
        except that the Secretary may correct clerical and 
        typographical errors.
          (3) Acceptance.--KNA may accept the offer made in this Act by 
        notifying the Secretary in writing of its decision within 180 
        days of receipt of the offer. In the event the offer is 
        rejected, the Secretary shall notify the Committee on Resources 
        of the House of Representatives and the Committee on Energy and 
        Natural Resources and the Committee on Environment and Public 
        Works of the Senate.
          (4) Final maps.--Not later than 120 days after the conclusion 
        of the acquisition authorized by subsection (a), the Secretary 
        shall transmit a final report and maps accurately depicting the 
        lands transferred and conveyed pursuant to this Act and the 
        acreage and legal descriptions of such lands to the Committee 
        on Resources of the House of Representatives and the Committee 
        on Energy and Natural Resources and the Committee on 
        Environment and Public Works of the Senate.

SEC. 5. ADJUSTMENTS TO NATIONAL WILDERNESS SYSTEM.

  Upon acquisition of lands by the United States pursuant to section 
4(b)(1), that portion of the Stephanka Tract lying south and west of 
the Kenai River, consisting of approximately 592 acres, shall be 
included in and managed as part of the Kenai Wilderness and such lands 
shall be managed in accordance with the applicable provisions of the 
Wilderness Act and ANILCA.

SEC. 6. DESIGNATION OF LAKE TODATONTEN SPECIAL MANAGEMENT AREA.

  (a) Purpose.--To balance the potential effects on fish, wildlife, and 
habitat of the removal of KNA lands from the Refuge System, the 
Secretary is hereby directed to withdraw, subject to valid existing 
rights, from location, entry, and patent under the mining laws and to 
create as a special management unit for the protection of fish, 
wildlife, and habitat, certain unappropriated and unreserved public 
lands, totaling approximately 37,000 acres adjacent to the west 
boundary of the Kanuti National Wildlife Refuge to be known as the 
``Lake Todatonten Special Management Area'', as depicted on the map 
entitled Proposed: Lake Todatonten Special Management Area, dated June 
13, 1996, and to be managed by the Bureau of Land Management.
  (b) Management.--
          (1) Such designation is subject to all valid existing rights 
        as well as the subsistence preferences provided under title 
        VIII of ANILCA. Any lands conveyed to the State of Alaska shall 
        be removed from the Lake Todatonten Special Management Area.
          (2) The Secretary may permit any additional uses of the area, 
        or grant easements, only to the extent that such use, including 
        leasing under the mineral leasing laws, is determined to not 
        detract from nor materially interfere with the purposes for 
        which the Special Management Area is established.
          (3)(A) The BLM shall establish the Lake Todatonten Special 
        Management Area Committee. The membership of the Committee 
        shall consist of 11 members as follows:
                  (i) Two residents each from the villages of Alatna, 
                Allakaket, Hughes, and Tanana.
                  (ii) One representative from each of Doyon 
                Corporation, the Tanana Chiefs Conference, and the 
                State of Alaska.
          (B) Members of the Committee shall serve without pay.
          (C) The BLM shall hold meetings of the Lake Todatonten 
        Special Management Area Committee at least once per year to 
        discuss management issues within Special Management Area. The 
        BLM shall not allow any new type of activity in the Special 
        Management Area without first conferring with the Committee in 
        a timely manner.
  (c) Access.--The Secretary shall allow the following:
          (1) Private access for any purpose, including economic 
        development, to lands within the boundaries of the Special 
        Management Area which are owned by third parties or are held in 
        trust by the Secretary for third parties pursuant to the Alaska 
        Native Allotment Act (25 U.S.C. 336). Such rights may be 
        subject to restrictions issued by the BLM to protect 
        subsistence uses of the Special Management Area.
          (2) Existing public access across the Special Management 
        Area. Section 1110(a) of ANILCA shall apply to the Special 
        Management Area.
  (d) Secretarial Order and Maps.--The Secretary shall file with the 
Committee on Resources of the House of Representatives and the 
Committee on Energy and Natural Resources and the Committee on 
Environment and Public Works of the Senate, the Secretarial Order and 
maps setting forth the boundaries of the Area within 90 days of the 
completion of the acquisition authorized by this Act. Once established, 
this Order may only be amended or revoked by Act of Congress.
  (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this Act.

                          PURPOSE OF THE BILL

    H.R. 401 would authorize an exchange and acquisition of 
lands in Alaska between the Kenai Natives Association (KNA) and 
the U.S. Fish and Wildlife Service (FWS).

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 401 is intended to resolve a longstanding conflict 
over the use of lands conveyed under the Alaska Native Claims 
Settlement Act of 1971 (ANCSA) to the Native people of Kenai, 
Alaska. These lands have been precluded from development 
because of their location within the Kenai National Wildlife 
Refuge.
    One purpose of ANCSA was to extinguish all outstanding 
aboriginal land claims held by Alaska Natives. Under ANCSA 
Alaska Native villages and urban centers were organized as 
corporations under Alaska law. Each urban corporation was given 
the right to select lands owned by the federal government 
located near its urban center. This was intended to give urban 
Natives ownership of land on which they could achieve economic 
benefits, since the urban corporations were only entitled to 
land and received no cash settlement. KNA was formed as an 
urban corporation and was entitled to receive 23,040 acres of 
land.
    KNA ultimately selected 19,000 acres within what later 
became the Kenai National Wildlife Refuge. The KNA lands are 
located between operating oil fields within the Refuge to the 
north and urban and suburban developments to the south. At the 
request of the FWS, KNA officials chose lands along the 
boundaries of the Refuge so that development would be allowed. 
Notwithstanding the representation that development would be 
allowed in these locations, FWS advised KNA after land 
selections were made that use of the selected property was to 
be severely restricted under section 22(g) of ANCSA. Section 
22(g) requires that all uses of private lands within the Refuge 
comply with the laws and regulations applicable to the public 
lands within the Refuge and that those lands be managed 
consistently with the purposes for which the Refuge was 
established. Section 22(g) has been the subject of a great 
degree of controversy in Alaska in that it significantly limits 
any economic use of privately owned lands within wildlife 
refuges. The Department of Interior Solicitor has determined 
that the removal of section 22(g) restrictions from private 
lands requires the approval of Congress.
    H.R. 401 executes an offer to KNA from the Secretary of 
Interior to resolve land use restrictions by offering to 
exchange interests in lands. In essence, the substitute 
provides authority for the Secretary of Interior to convey 
specified interests in land now held by the federal government, 
including partial subsurface interests underlying lands now 
held by KNA. In exchange, KNA would convey to the federal 
government certain land KNA owns within the boundary of the 
Kenai National Wildlife Refuge. KNA would also relinquish its 
remaining ANCSA entitlement on lands within the Refuge. The 
land that KNA receives would be removed from the Refuge and the 
boundary adjusted accordingly. The rights of other parties with 
land interests in the area would not be impacted by this 
legislation.
    Specifically, the substitute would allow the FWS to acquire 
three small parcels of land and KNA's remaining ANCSA 
entitlement at appraised value: Stephanka Tract (803 acres) on 
the Kenai River; Moose River Patented Tract (1,243 acres); 
Moose River Selected Tract (753 acres); and 454 acres of 
remaining entitlement. A payment of $4,443,000 for the total 
habitat acquisition of 2,253 acres will be made from the Exxon 
Valdez Oil Spill trust fund, as the lands involved were part of 
the region affected by the 1989 oil spill and include important 
habitat for fish and wildlife harmed by the spill. KNA shall 
receive a cash payment solely from the Exxon Valdez trust fund, 
which has already been approved by the Exxon Valdez Oil Spill 
Trustee Council for this acquisition. Therefore, no federal 
appropriation will be required.
    In return, KNA will also gain title to approximately 13,642 
acres of subsurface estate (less coal, oil and gas) under those 
lands which were previously held by the United States, and use 
of sand and gravel on another 1,738.04 acres in the Swanson 
River Road East parcel. Furthermore, the Kenai National 
Wildlife Refuge boundary would be adjusted to remove 15,500 
acres of existing KNA lands from the Refuge, thus resolving the 
ANCSA section 22(g) conflict.
    Under H.R. 401, KNA shareholders would retain the right to 
visit an historic village site located on the Kenai River 
properties which would be conveyed to the United States. KNA 
would also receive title to the old Kenai National Wildlife 
Refuge headquarters site in downtown Kenai which consists of a 
building and a five-acre parcel. KNA intends to use this site 
for economic development purposes.
    Finally, to maintain equivalent natural resources 
protection for federal resources, FWS has proposed that 
Congress designate the Lake Todatonten area (approximately 
37,000 acres) as a Special Management Area (SMA) to be 
withdrawn from mineral entry. Lake Todatonten is adjacent to 
the Kanuti National Wildlife Refuge which is located in north-
central Alaska. The SMA will be managed by the Bureau of Land 
Management. The SMA contains significant habitat for 
subsistence resources, waterfowl and migratory birds. H.R. 401 
designates this SMA and clarifies that the SMA would be subject 
to subsistence preferences under Title VIII of the Alaska 
National Interest Lands Conservation Act (ANILCA) and valid 
existing rights. H.R. 401 also guarantees public access to the 
SMA and gives residents of surrounding villages the ability to 
participate in decisions relative to management of the SMA.

                            COMMITTEE ACTION

    H.R. 401 was introduced on January 4, 1995, by Congressman 
Don Young (R-AK), Chairman of the Committee on Resources. The 
bill was referred to the Committee on Resources. On June 11, 
1996, the Committee held a hearing on H.R. 401 where 
representatives of KNA and the Administration testified in 
support of the bill with amendments. On June 19, 1996, the Full 
Resources Committee met to consider H.R. 401. An amendment in 
the nature of a substitute was offered by Congressman Young and 
was adopted by voice vote. The bill as amended was then ordered 
favorably reported to the House of Representatives.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    The short title of the bill is the ``Kenai Natives 
Association Equity Act of 1995''.

Section 2. Findings and purpose

    This section sets forth the findings and purposes of the 
legislation.

Section 3. Definitions

    This section provides definitions for the purposes of this 
Act.

Section 4. Acquisition of lands

    This section sets forth the terms of the land exchange and 
acquisition between the federal government and the Kenai 
Natives Association (KNA). The section identifies lands within 
the boundaries of the Kenai National Wildlife Refuge to be 
conveyed to the United States by KNA as well as those lands to 
be conveyed by the United States to KNA.
    This section provides for the payment of Exxon Valdez Oil 
Spill Trustee Council settlement funds for KNA lands described 
in this section. This section also nominates the Stephanka 
Tract to the National Register of Historic Places, in 
recognition of the archeological artifacts from the original 
Kenaitze Indian settlement.
    Subsection (c)(1)(A) removes from the Kenai National 
Wildlife Refuge all lands retained by or conveyed to KNA under 
the legislation, as well as the subsurface interests held by 
the relevant regional corporation, Cook Inlet Region, Inc. 
(CIRI). In addition, the subsection requires a boundary 
adjustment to reflect removal of these interests from the 
Refuge. The interests conveyed to or retained by KNA, and those 
held by CIRI, are to be held free of any conveyance restriction 
imposed by section 22(g) of ANCSA and shall neither be 
considered a part of the Refuge nor subject to any laws or 
regulations pertaining solely to lands within the boundaries of 
the Refuge.
    Subsection (c)(1)(B) also provides an alternative means to 
specify the manner in which the subsurface interests conveyed 
to KNA under the legislation shall be managed in relation to 
the oil, coal and gas interests already held by CIRI in the 
area. Currently, development of CIRI's interests are governed 
by paragraph 1(B)(1) of the Terms and Conditions for Land 
Consolidation and Management in the Cook Inlet Area, which has 
been consented to by CIRI and authorized by other federal law 
(Public Law 94-204).
    Under section 4(c), the Secretary of the Interior, KNA and 
CIRI are required to develop and execute an agreement which 
adequately addresses the management issues associated with the 
boundary adjustment provided for in the subsection and which 
preserves CIRI's rights and obligations under the Terms and 
Conditions. By providing a deadline for the execution of the 
required agreement, the Committee intends that terms of 
management of the area be provided under mutual agreement. If 
the parties fail to reach an agreement within the time 
required, subparagraph (ii) recognizes that existing rights and 
responsibilities of CIRI provided under the Terms and 
Conditions shall remain in effect, despite the conveyances of 
interest to KNA under the legislation. The Committee notes that 
the subsection also specifically provides that nothing in the 
Act is intended to enlarge or diminish the authorities, rights, 
duties, obligations or other property rights held by CIRI, 
unless otherwise set forth in the legislation. The Committee 
intends by this subsection that CIRI's rights and obligations 
under the Terms and Conditions with respect to development of 
oil, coal and gas interests CIRI now holds remain unchanged, 
other than the boundary adjustment and the conveyances of 
interests to KNA.
    Subsection (c)(1)(C) provides authority to the Secretary to 
reacquire lands and interests retained by or conveyed to KNA on 
a willing seller basis only. The subsection makes it clear that 
any reacquired interests will automatically be included back 
into the Refuge system, and all pertinent laws and regulations 
pertaining to Refuge lands would be reapplied. If any surface 
estate is required, then the subsurface interests below such 
surface, regardless of whether owned by KNA or CIRI, would also 
return to the Refuge system. The boundaries of the Refuge would 
be readjusted to include any such reacquired lands.
    Subsection (c)(1)(E) clarifies that CIRI is entitled to 
1,207 of in-lieu subsurface entitlement, in accordance with 
section 12(a)(1) of ANCSA and paragraph (B)(2)(A) of the Terms 
and Conditions.
    Finally, section 4 further provides KNA the ability to take 
the final agreement to a vote of its shareholders and report to 
the Secretary within 180 days.

Section 5. Adjustments to the National Wilderness System

    This section provides for that portion of the Stephanka 
Tract lying south and west of the Kenai River (approximately 
592 acres) acquired by the United States to be included in and 
managed as part of the Kenai Wilderness.

Section 6. Designation of Lake Todatonten Special Management Area

    This section establishes the Lake Todatonten Special 
Management Area (SMA) consisting of approximately 37,000 acres 
adjacent to the western boundary of the Kanuti National 
Wildlife Refuge. This section also provides that the SMA is to 
be managed by the Bureau of Land Management (BLM) and that the 
SMA is subject to all valid existing rights and subsistence 
preferences provided under title VIII of ANILCA. Furthermore, 
any lands conveyed to the State of Alaska shall be removed from 
the SMA.
    This section further directs the BLM to establish a Lake 
Todatonten Special Management Area Committee made up of 
residents of surrounding villages and other interested parties. 
The residents will be consulted on all management decisions. 
Public access to and across the SMA is granted and section 
1110(a) of ANILCA shall apply to the SMA.
    Finally, this section authorizes such sums as may be 
necessary to carry out the purposes of this Act.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     INFLATIONARY IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 401 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        COST OF THE LEGISLATION

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 401. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     COMPLIANCE WITH HOUSE RULE XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
401 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 401.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 401 
from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 17, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 401, the Kenai Natives Association Equity Act 
Amendments of 1996, as ordered reported by the House Committee 
on Resources on June 19, 1996. Enacting H.R. 401 would not 
affect direct spending or receipts. Therefore, pay-as-you-go 
procedures would not apply to the bill. H.R. 401 contains no 
private-sector or intergovernmental mandates as defined in 
Public Law 104-4 and would impose no costs on state, local or 
tribal governments.

Bill purpose

    H.R. 401 would authorize the Secretary of the Interior to 
complete an agreement between the Kenai Natives Association 
(KNA) and the United States Fish and Wildlife Service (USFWS) 
for the acquisition of KNA property located within the Kenai 
National Wildlife Refuge in Alaska. Under section 4 of the 
bill, the federal government would pay KNA $4.443 million for 
3,253 acres of land within the refuge boundaries. This 
provision would direct the federal government to make the 
$4.443 million payment from amounts allocated to the USFWS from 
the Exxon Valdez oil spill joint trust fund, contingent on the 
approval of the trustees. Other lands and property interests, 
including access easements, would be acquired in exchange for 
specified land, subsurface estates or other property interests 
(such as the nonexclusive right to use sand and gravel located 
on certain federal property).
    Section 4 also would remove from the National Wildlife 
Refuge System all lands retained by or conveyed to KNA, as well 
as certain subsurface interests underlying such lands. The bill 
would direct the Secretary of the Interior to adjust the 
boundaries of the Kenai National Wildlife Refuge to reflect 
these changes. Section 5 of the bill provides that about 492 
acres of the land to be acquired by the U.S. be managed as part 
of the Kenai Wilderness. In addition, the bill would direct the 
Secretary to nominate an area known as the Stephanka Tract to 
the National Register of Historic Places. If the Department of 
the Interior (DOI) establishes an historical, cultural, or 
archaeological interpretive site on that tract, KNA would have 
the exclusive right to operate it. Section 6 would direct the 
Secretary of the Interior to designate about 37,000 acres of 
public land adjacent to the Kanuti National Wildlife Refuge in 
Alaska as the Lake Todatonten Special Management Area and to 
withdraw it from location, entry, and patent under the mining 
laws.

Federal budgetary impact

    Based on information provided by the USFWS and DOI, CBO 
expects that the $4.443 million payment to KNA for purchase of 
its holdings in the Kenai National Wildlife Refuge will be made 
even in the absence of this legislation. Therefore, this 
provision would have no impact on the federal budget. We 
estimate that the costs of implementing other provisions of 
sections 4 and 5, including up-front expenditures related to 
the land exchange and the refuge boundary adjustment, as well 
as ongoing costs to manage the new federal property, would have 
no significant impact on the affected agencies' operating 
expenses.
    Based on information from Bureau of Land Management (BLM), 
we estimate that section 6 would not affect the agency's 
discretionary spending since that agency already manages the 
Lake Todatonten area in a manner consistent with the Special 
Management Area designation. BLM expects no mineral activity to 
occur on the land in any case; therefore, withdrawing the land 
from mineral entry would not change spending or receipts.

Impact on State, local, and tribal government

    The land exchange authorized by this bill would be 
voluntary on the part of the Kenai Natives Association. Should 
the association agree to the exchange, it would receive a cash 
payment of $4.443 million in addition to the lands and rights 
specified in the bill. Upon completion of the exchange, the 
lands retained by or conveyed to the KNA would be removed from 
the Kenai National Wildlife Refuge, so the KNA would be able to 
develop those lands.
    If you wish further details on this estimate, we will be 
pleased to provide them. The staff contacts are Deborah Reis 
and Victoria Heid (for federal costs), and Marjorie Miller (for 
the state, local, and tribal impact).
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 401 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 401 would make no changes in existing law.

                                
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