[House Report 105-782]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2nd Session                                                    105-782
_______________________________________________________________________


 
          CHUGACH ALASKA CORPORATION SETTLEMENT IMPLEMENTATION

                                _______
                                

October 6, 1998.--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

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3087]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 3087) to require the Secretary of Agriculture to grant an 
easement to Chugach Alaska Corporation, 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. CHUGACH ALASKA CORPORATION SETTLEMENT IMPLEMENTATION.

    (a) In General.--Notwithstanding any other provision of law, not 
later than December 11, 1998, the Secretary of Agriculture shall grant 
Chugach Alaska Corporation an irrevocable and perpetual 500-foot-wide 
easement for the construction, use, and maintenance of nonpublic roads 
and related facilities necessary for access to and economic development 
of the land interests in the Carbon Mountain and Katalla vicinity that 
were conveyed to Chugach Alaska Corporation pursuant to the Alaska 
Native Claims Settlement Act. The centerline of the easement is 
depicted on the map entitled ``Carbon Mountain Access Easement'' and 
dated November 4, 1997.
    (b) Submission of Survey; Relinquishment of Unneeded Portion of 
Easement.--Not later than 90 days after completion of construction of 
roads and related facilities on the easement granted pursuant to 
subsection (a), Chugach Alaska Corporation shall submit to the 
Secretary of Agriculture an as-built survey of such roads and related 
facilities and relinquish to the United States those portions of the 
easement Chugach Alaska Corporation deems not necessary for future use.
    (c) Construction and Maintenance.--Construction and maintenance of 
any roads pursuant to subsection (a) shall be in accordance with the 
best management practices of the Forest Service as promulgated in the 
Forest Service Handbook.

                          purpose of the bill

    The purpose of H.R. 3087 is to require the Secretary of 
Agriculture to grant an easement to Chugach Alaska Corporation.

                  background and need for legislation

    H.R. 3087 grants to the Chugach Alaska Corporation (CAC) a 
perpetual 500-foot wide right-of-way for certain roads and 
related facilities across the Chugach National Forest. The 
corporation represents the Chugach Natives of south-central 
Alaska. The easement will ensure CAC has access to a 73,000-
acre tract of land the Natives were awarded pursuant to the 
Alaska Native Claims Settlement Act of 1971 (ANCSA). H.R. 3087 
provides that when construction of the road is complete, CAC 
relinquish those portions of the right-of-way not necessary for 
future use. The end result will be a forest road.
    ANCSA declared the settlement of Natives' land claims would 
be ``accomplished rapidly, with certainty, in conformity with 
the real economic and social needs of Natives, without 
litigation, with maximum participation by Natives. * * *'' In 
the Chugach Natives' case, however, the settlement has been 
honored by the Administration only half-way, reluctantly, with 
litigation, and with relatively low regard to the economic need 
of the Chugach Natives.
    After 11 years of delays in acquiring its ANCSA 
entitlement, CAC was granted land with access rights in the 
1982 Chugach Natives, Inc. Settlement Agreement. The Settlement 
Agreement granted the corporation a 73,000-acre tract of 
property in the Chugach National Forest and an easement for 
roads and related facilities to the land. To address 
environmental considerations, the Settlement Agreement permits 
the Secretary of Agriculture to require CAC to perform an 
environmental analysis.
    The property was conveyed in 1983; however, CAC's 
entitlement is incomplete because 15 years later the federal 
government has still not issued the easement for road access.
    During a Committee hearing, the Forest Service reported it 
was close to signing a Memorandum of Understanding (MOU) which 
would set in motion the process of issuing the easement by 
December 11, 1998. After the hearing, the MOU was signed by all 
parties. While an important component to the issuance of the 
easement, the MOU does not obviate the need for legislation; 
the document is not legally binding or enforceable, and can be 
terminated by the Forest Service, or expire without renewal. 
This means there is no date on which the easement will be 
granted with certainty.
    The lack of a legally binding, enforceable commitment to 
convey the easement is inexcusable given the difficult delays 
the Chugach Natives have encountered trying to secure promises 
made to them 27 years ago. Whereas ANCSA was supposed to bring 
the opportunity of economic benefit to the Natives, it has in 
some ways become a financial burden to the corporation because 
the long delays have been expensive and resulted in lost 
opportunity. This is contrary to the aims of the landmark 
settlement act.
    Without access, the Natives do not have the use and 
economic benefit of property Congress intended them to have 27 
years ago, effectively denying the Natives a key part of their 
land claims settlement.
    The purpose of H.R. 3087 is to convey the promised easement 
by a time-certain date. The legislation as introduced requires 
the Secretary of Agriculture to convey the easement within 90 
days after enactment; however, the Committee adopted an 
amendment during its consideration of the measure to change the 
effective day to December 11, 1998, allowing CAC time to 
complete its environmental analysis.
    The easement is 500-feet wide to allow CAC enough space in 
which to locate the road in an environmentally responsible 
manner. Because the Settlement Agreement reserves standing 
timber to the United States, CAC is allowed to remove only that 
timber which is necessary for a road. After construction is 
complete, CAC must relinquish those portions of the easement 
not needed for future use.
    The Committee also adopted an amendment which requires 
construction and maintenance of the road to be in accordance 
with the best management practices of the U.S. Forest Service, 
as promulgated in the Forest Service Handbook.
    As to other requirements and obligations of CAC and the 
government, terms of the 1982 Settlement Agreement will 
continue to apply.

                            committee action

    H.R. 3087 was introduced on November 13, 1997, by 
Congressman Don Young (R-AK). The bill was referred to the 
Committee on Resources. On February 25, 1998, the Committee 
held a hearing on H.R. 3087 where testimony was received from 
witnesses representing the Administration, the Chugach Alaska 
Corporation, and from the environmental community. On March 11, 
1998, the full Resources Committee met to consider H.R. 3087. 
An amendment in the nature of a substitute was offered by 
Congressman Young, and adopted by voice vote. The bill as 
amended was then ordered favorably reported to the House of 
Representatives by voice vote.

            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.

                   constitutional authority statement

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact H.R. 3087.

                        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. 3087. 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. 
3087 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. 3087.
    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. 
3087 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 27, 1998.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3087, a bill to 
require the Secretary of Agriculture to grant an easement to 
Chugach Alaska Corporation.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Victoria V. 
Heid (for federal costs), and Marjorie Miller (for the impact 
on state, local, and tribal governments).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 3087--A bill to require the Secretary of Agriculture to grant an 
        easement to Chugach Alaska Corporation

    H.R. 3087 would direct the Secretary of Agriculture to 
grant Chugach Alaska Corporation an irrevocable and perpetual 
500-foot wide easement across federal land as depicted on a map 
entitled ``Carbon Mountain Access Easement'' and dated November 
4, 1997. The bill would require the Secretary to grant the 
easement by December 11, 1998.
    CBO estimates that implementing the bill would have no 
significant impact on the federal budget. Because enacting H.R. 
2416 would not affect direct spending or receipts, pay-as-you-
go procedures would not apply to the bill.
    H.R. 3087 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would impose no costs on state, local, or tribal 
governments. The bill would benefit the Chugach Alaska 
Corporation, a regional native corporation in Alaska, by 
facilitating its development of currently inaccessible lands.
    The CBO staff contacts for this estimate are Victoria V. 
Heid (for federal costs), and Marjorie Miller (for the impact 
on state, local, and tribal governments). This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 3087 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 3087 would make no changes in existing 
law.

                            DISSENTING VIEWS

    We strongly oppose this bill. There is no legitimate 
purpose served by Congress intervening in a complex and 
controversial matter subject to an ongoing administrative 
process and governed by existing agreements and law. On behalf 
of the Forest Service, the Secretary of Agriculture has 
recommended that the President veto this bill if enacted.
    H.R. 3087 would mandate an unprecedented 500 foot road 
easement to facilitate the development of private corporation 
lands in the Chugach National Forest in Alaska. Ironically, 
President Theodore Roosevelt and Gifford Pinchot created the 
Chugach National Forest in 1907 to protect it from exploitation 
by the Alaska Syndicate, a coal monopoly formed by the 
Guggenheim Brothers and John Pierport Morgan. But under a 1982 
Settlement Agreement negotiated by the Reagan Administration, 
the Native regional corporation now known as Chugach Alaska 
Corporation received title to 73,000 acres at Bering River and 
a right of access through the national forest.
    Chugach Alaska Corporation plans to build a 26 mile road to 
the Bering River lands in order to clearcut about 8,000 acres 
and export the logs. Coal rights have been sold to Korean 
interests. It is unclear how much building a costly (and 
controversial) road and would benefit the Chugach shareholders, 
considering the depressed Pacific Rim markets for both logs and 
coal.
    Beginning with the phrase, ``notwithstanding any other 
provision of law,'' this bill grants Chugach rights beyond 
those specified in the 1982 Settlement Agreement. It provides 
exemptions from environmental laws. It grants a ``irrevocable 
and perpetual'' 500 foot wide easement. It allows for ``related 
facilities necessary for access to and economic development of 
the land interests.'' It deems the road to be ``non-public'' 
contrary to the 1982 Settlement Agreement which clearly 
reserves a right of public access.
    The negotiations between the Forest Service and Chugach 
involve complex issues and affect nationally significant 
natural resources. In the Alaska National Interest Lands 
Conservation Act, Congress directed that ``conservation of fish 
and wildlife habitat shall be the primary purpose for the 
management'' of the Copper River-Bering River area, in effect 
treating these lands as a national fish and wildlife refuge 
under Forest Service management. The proposed Chugach road 
would cross more than 200 bodies of water, including anadromous 
salmon streams, and affect wetlands which provide critical 
habitat for millions of shorebirds and migratory waterfowl 
which use the Pacific Flyway.
    We should not undercut the current negotiations and fuel 
the fires of environmental controversy by enacting this bill. 
Instead, Congress should be considering whether the Chugach 
lands could be purchased or exchanged for other federal assets, 
with a goal of greater direct economic benefit to the Chugach 
shareholders while retaining the integrity of the national 
forest.

                                   George Miller.
                                   Maurice Hinchey.

                                
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