[House Report 106-489]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-489
=======================================================================
KAKE TRIBAL CORPORATION LAND TRANSFER ACT
_______
January 27, 2000.--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 S. 430]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(S. 430) to amend the Alaska Native Claims Settlement Act, to
provide for a land exchange between the Secretary of
Agriculture and the Kake Tribal Corporation, and for other
purposes, 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 ``Kake Tribal Corporation Land Transfer
Act''.
SEC. 2. DECLARATION OF PURPOSE.
The purpose of this Act is to authorize the reallocation of lands and
selection rights between the State of Alaska, Kake Tribal Corporation,
and the City of Kake, Alaska, in order to provide for the protection
and management of the municipal watershed.
SEC. 3. AMENDMENT OF ALASKA NATIVE CLAIMS SETTLEMENT ACT.
The Alaska Native Claims Settlement Act (43 U.S.C. 1601 note) is
amended by adding at the end the following new section:
``kake tribal corporation land transfer
``Sec. 42. (a) In General.--If--
``(1) the State of Alaska relinquishes its selections rights
under the Alaska Statehood Act (P.L. 85-508) to lands described
in subsection (c)(2) of this section; and
``(2) Kake Tribal Corporation and Sealaska Corporation convey
all right, title, and interest to lands described in subsection
(c)(1) to the City of Kake, Alaska,
then the Secretary of Agriculture (hereinafter referred to as
`Secretary') shall, not later than 180 days thereafter, convey to Kake
Tribal Corporation title to the surface estate in the land identified
in subsection (c)(2) of this section, and convey to Sealaska
Corporation title to the subsurface estate in such land.
``(b) Effect on Selection Totals.--(1) Of the lands to which the
State of Alaska relinquishes selection rights and which are conveyed to
the City of Kake pursuant to subsection (a), 694.5 acres shall be
charged against lands to be selected by the State of Alaska under
section 6(a) of the Alaska Statehood Act and 694.5 acres against lands
to be selected by the State of Alaska under section 6(b) of the Alaska
Statehood Act.
``(2) The land conveyed to Kake Tribal Corporation and to Sealaska
Corporation under this section is, for all purposes, considered to be
land conveyed under this Act. However, the conveyance of such land to
Kake Tribal Corporation shall not count against or otherwise affect the
Corporation's remaining entitlement under section 16(b).
``(c) Description of Lands Subject to Exchange.--(1) The lands to be
transferred to the City of Kake and under subsection (a) are the
surface and subsurface estate to approximately 1430 acres of land owned
by Kake Tribal Corporation and Sealaska Corporation, and depicted as
`KTC Land to City of Kake' on the map entitled `Kake Land Exchange-
1999', dated September, 1999.
``(2) The lands subject to relinquishment by the State of Alaska and
to conveyance to Kake Tribal Corporation and Sealaska Corporation under
subsection (a) are the surface and subsurface estate to approximately
1389 acres of Federal lands depicted as `Jenny Creek-Land Selected by
the State of Alaska to KTC' on the map entitled `Kake Land Exchange-
1999', dated September, 1999.
``(d) Withdrawal.--Subject to valid existing rights, the lands
described in subsection (c)(2) are withdrawn from all forms of
location, entry, and selection under the mining and public land laws of
the United States and from leasing under the mineral and geothermal
leasing laws. This withdrawal expires 18 months after the effective
date of this section.
``(e) Maps.--The maps referred to in this Act shall be maintained on
file in the Office of the Chief, United States Forest Service, the
Office of the Secretary of the Interior, and the Office of the
Petersburg Ranger District, Alaska.
``(f) Watershed Management.--The United States Forest Service may
cooperate with the Kake Tribal Corporation and the City of Kake in
developing a watershed management plan that provides for the protection
of the watershed in the public interest. Grants may be made, and
contracts and cooperative agreements may be entered into, to the extent
necessary to assist the City of Kake and the Kake Tribal Corporation in
the preparation and implementation of a watershed management plan for
the land within the City of Kake's municipal watershed.
``(g) Effective Date.--This section is effective upon the execution
of one or more reciprocal agreements that provide for one or more
reciprocal conservation easements that, subject to valid existing
rights of third parties--
``(1) encumber all lands depicted as `KTC Land to City of
Kake' and `KTC Land-Conservation Easement to City of Kake' on a
map entitled `Kake Land Exchange-1999' dated September 1999;
``(2) provide for the relinquishment by Kake Tribal
Corporation to the Corporation's development rights on lands
described in paragraph (1); and
``(3) provide for perpetual protection and management of
lands depicted as `KTC Land-Conservation Easement to City of
Kake' on the map described in paragraph (1) as--
``(A) a watershed;
``(B) a municipal drinking water source in accordance
with the laws of the State of Alaska;
``(C) a source of fresh water for the Gunnuk Creek
Hatchery; and
``(D) habitat for black bear, deer, birds, and other
wildlife.
``(h) Authorization of Appropriations.--There are authorized such
sums as may be necessary to carry out this Act. No funds authorized
under this section may be paid to Kake Tribal Corporation unless Kake
Tribal Corporation is a party to any reciprocal agreements entered into
under subsection (g).''.
Purpose of the Bill
The purpose of S. 430 is to amend the Alaska Native Claims
Settlement Act, to provide for a land exchange between the
Secretary of Agriculture and the Kake Tribal Corporation, and
for other purposes.
Background and Need for Legislation
The Kake Tribal Corporation (KTC) is a Native village
corporation organized under the Alaska Native Claims Settlement
Act (ANCSA). Pursuant to ANCSA, KTC was awarded lands in and
around the core township of the City of Kake. Some of KTC's
holdings are on the municipal watershed supplying the City of
Kake with its drinking water. These lands have timber that is
eligible for harvest by KTC.
For several years, City residents have been concerned that
KTC will log its watershed property. In recognition of this
local concern, KTC's board of directors has refrained from
authorizing timber harvest on the watershed. However, late in
1999, KTC come under intense pressure to generate revenue. A
previous effort by KTC to set up a special program to care for
the needs of certain shareholders such as Native elders led to
a lawsuit which forced KTC to file for bankruptcy. KTC's severe
financial situation increases the likelihood that KTC will log
the municipal watershed to pay creditors.
KTC is faced with a dilemma: it may have to exercise the
unpopular choice of logging the municipal watershed to pay
creditors, or preserve the watershed, which might place KTC's
other assets at higher risk.
S. 430 as passed by the Senate sets up one locally popular
approach to resolve this dilemma. The measure provides for an
equal value land exchange in which KTC conveys the watershed
lands to the Tongass National Forest, and receives lands away
from the problem area. (See Senate Report 106-31 for more
information on the terms and conditions of this exchange).
Under this concept, KTC would be able to log its property
without any effect on the city's watershed.
After S. 430 was referred to the House Committee on
Resources, certain federal officials, the State of Alaska, KTC,
the City and other local interests agreed in concept to an
alternative land exchange. An amendment in the nature of a
substitute adopted by the Committee reflects the new proposal.
Under this concept, KTC would agree to convey 1430 acres of
its watershed property to the City of Kake, and retain
ownership of the remaining 1127 acres of its watershed land.
Both the land conveyed to the City and the land retained by KTC
would then be encumbered by a conservation easement that
prohibits logging and protects the watershed.
In compensation for conveying the 1430 acres of watershed
property to the City, KTC would receive certain land to which
the State gives up its Statehood selection rights. This land,
known as the Jenny Creek property, is located away from the
watershed and may be logged without controversy.
In compensation for agreeing to put the other portion of
the watershed under a conservation easement, KTC would be
compensated, subject to appropriation of funds, in cash for the
value of its relinquished development and logging rights.
Under this exchange there will no net loss to the Tongass
National Forest land base, and the City watershed will be
preserved.
A matter involving the disposition of the subsurface estate
of the lands subject to the exchange has come to the attention
of the Committee. Sealaska Corporation, as the owner of the
subsurface estate beneath KTC's watershed lands, must be
treated fairly in this exchange. Sealaska Corporation, the
Native Regional Corporation for Southeast Alaska, has expressed
to the Committee its willingness to exchange its subsurface
estate to facilitate the much-needed land exchange. With
respect to that portion of the KTC land to be exchanged for the
Jenny Creek property, the reported bill directs the exchange of
Sealaska's subsurface estate beneath the surface estate owned
by KTC for the subsurface estate beneath the Jenny Creek
property. The Committee concludes that, with respect to the
portion of the surface estate owned by KTC that will be subject
to conservation easements, it would be inequitable to have
Sealaska continue to own the subsurface estate in this area. It
has been suggested that Sealaska exchange to the United States
this remaining subsurface estate for equivalent subsurface
estate in Southeast Alaska, perhaps pursuant to an already
existing agreement between Sealaska and the U.S. Forest
Service. This solution would provide equitable treatment to
Sealaska Corporation.
While S. 430 as approved by the Committee resolves the
local controversy over the watershed lands, further refinement
of the details of the conservation easements may be desirable.
In this vein, the Committee urges Kake Tribal Corporation and
the City, to the extent that it is feasible and timely, to
produce a signed agreement providing for appropriate
conservation easements that can be incorporated by reference
into the bill.
Committee Action
S. 430 was introduced on February 22, 1999, by Senator
Frank H. Murkowski (R-AK). The bill passed the Senate on April
19, 1999, with amendments. The bill was then referred to the
Committee on Resources. Hearings on an earlier version of a
bill (H.R. 2756) addressing the same problem were held in the
105th Congress on February 25, 1998. On November 3, 1999, the
Full Resources Committee met to consider the bill. Chairman Don
Young (R-AK) offered an amendment in the nature of a
substitute, as described above. It was 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
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII 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 this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(2) 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 this bill. However, clause 3(d)(3)(B)
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 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. Government Reform Oversight Findings. Under clause
3(c)(4) of rule XIII 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 on this bill.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII 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 this bill from the Director of the Congressional Budget
Office:
S. 430--Kake Tribal Corporation Land Transfer Act
Summary: S. 430 would authorize the Secretary of
Agriculture to make grants and enter into cooperative
agreements with the city of Kake, Alaska, to prepare and
implement a watershed management plan for certain lands located
within its municipal watershed. S. 430 also would direct the
Secretary to convey to the Kake and Sealaska tribal
corporations the surface and subsurface estate of certain lands
within the Tongass National Forest, subject to certain
conditions.
Based on information from the Forest Service and the Kake
Tribal Corporation (KTC), CBO estimates that implementing S.
430 would cost $15 million over the 2001-2004 period, assuming
appropriation of the necessary amounts. The act would not
affect direct spending or receipts; therefore, pay-as-you-go
procedures would not apply. S. 430 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA). Any costs incurred by the
state of Alaska under this act would be voluntary.
Estimated cost to the Federal Government: Several steps
would be necessary before the land exchange between the
Secretary of Agriculture and the tribal corporations would
occur. First, the tribal corporations must grant a conservation
easement for about 2,500 acres of land owned by the
corporations that are located within the city's municipal
watershed. Next, the tribal corporations would need to transfer
ownership of some of their land within the municipal watershed
to the city. Finally, the state of Alaska would need to
relinquish its selection rights to about 1,400 acres of land in
the Tongass National Forest that would be conveyed to the
tribal corporations under the act. Based on information from
each of these interested parties, CBO expects that agreements
to fulfill each of these conditions will be reached in 2000.
Because the state of Alaska currently has selection rights
to certain lands in the Tongass National Forest, the Forest
Service does not plan to harvest timber on the 1,400 acres that
would be transferred to the tribal corporations under S. 430.
Therefore, this transfer would not affect federal receipts.
Based on information from the Forest Service and the KTC, CBO
estimates that the tribal corporation will seek monetary
compensation from the federal government in exchange for the
conservation easement granted on its land within the municipal
watershed. Based on the potential value to the tribal
corporation of developing these lands, we estimate the
conservation easement could be worth as much as $15 million.
Any such compensation would be subject to the availability of
appropriated funds.
Pay-as-you-go considerations: None.
Estimated impact on State, local, and tribal governments:
S. 430 contains no intergovernmental mandates as defined in
UMRA. The state of Alaska might incur some costs should it
choose to relinquish its selection rights to the land proposed
for conveyance to the tribal corporations. Such costs would be
incurred voluntarily, however. The tribal corporations would
benefit from enactment of this legislation because the land
they would receive could be developed to generate income.
Estimated impact on the private sector: This bill contains
no new private-sector mandates as defined in UMRA.
Previous CBO estimate: On March 11, 1999, CBO transmitted a
cost estimate for S. 430 as ordered reported by the Senate
Committee on Energy and Natural Resources on March 4, 1999.
Under that version of S. 430, the Secretary of Agriculture and
the tribal corporations would enter into an equal value land
exchange. The tribal corporations would receive the surface and
subsurface estate of unspecified lands within the Tongass
National Forest in exchange for the surface and subsurface
estate of the municipal watershed lands, which the Forest
Service would manage.
The Senate version would not authorize the Secretary of
Agriculture to enter into agreements and make grants to assist
in implementing a watershed management plan, which CBO
estimates could cost up to $15 million over the 2001-2004
period, assuming the appropriation of the necessary amounts.
Estimate prepared by: Federal costs: Megan Carroll. Impact
on State, local, and tribal governments: Marjorie Miller.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Preemption of State, Local, or Tribal Law
This bill is not intended to preempt any State, local, or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
SECTION 42 OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT
kake tribal corporation land transfer
Sec. 42. (a) In General.--If--
(1) the State of Alaska relinquishes its selections
rights under the Alaska Statehood Act (P.L. 85-508) to
lands described in subsection (c)(2) of this section;
and
(2) Kake Tribal Corporation and Sealaska Corporation
convey all right, title, and interest to lands
described in subsection (c)(1) to the City of Kake,
Alaska,
then the Secretary of Agriculture (hereinafter referred to as
``Secretary'') shall, not later than 180 days thereafter,
convey to Kake Tribal Corporation title to the surface estate
in the land identified in subsection (c)(2) of this section,
and convey to Sealaska Corporation title to the subsurface
estate in such land.
(b) Effect on Selection Totals.--(1) Of the lands to which
the State of Alaska relinquishes selection rights and which are
conveyed to the City of Kake pursuant to subsection (a), 694.5
acres shall be charged against lands to be selected by the
State of Alaska under section 6(a) of the Alaska Statehood Act
and 694.5 acres against lands to be selected by the State of
Alaska under section 6(b) of the Alaska Statehood Act.
(2) The land conveyed to Kake Tribal Corporation and to
Sealaska Corporation under this section is, for all purposes,
considered to be land conveyed under this Act. However, the
conveyance of such land to Kake Tribal Corporation shall not
count against or otherwise affect the Corporation's remaining
entitlement under section 16(b).
(c) Description of Lands Subject to Exchange.--(1) The lands
to be transferred to the City of Kake and under subsection (a)
are the surface and subsurface estate to approximately 1430
acres of land owned by Kake Tribal Corporation and Sealaska
Corporation, and depicted as ``KTC Land to City of Kake'' on
the map entitled ``Kake Land Exchange-1999'', dated September,
1999.
(2) The lands subject to relinquishment by the State of
Alaska and to conveyance to Kake Tribal Corporation and
Sealaska Corporation under subsection (a) are the surface and
subsurface estate to approximately 1389 acres of Federal lands
depicted as ``Jenny Creek-Land Selected by the State of Alaska
to KTC'' on the map entitled ``Kake Land Exchange-1999'', dated
September, 1999.
(d) Withdrawal.--Subject to valid existing rights, the lands
described in subsection (c)(2) are withdrawn from all forms of
location, entry, and selection under the mining and public land
laws of the United States and from leasing under the mineral
and geothermal leasing laws. This withdrawal expires 18 months
after the effective date of this section.
(e) Maps.--The maps referred to in this Act shall be
maintained on file in the Office of the Chief, United States
Forest Service, the Office of the Secretary of the Interior,
and the Office of the Petersburg Ranger District, Alaska.
(f) Watershed Management.--The United States Forest Service
may cooperate with the Kake Tribal Corporation and the City of
Kake in developing a watershed management plan that provides
for the protection of the watershed in the public interest.
Grants may be made, and contracts and cooperative agreements
may be entered into, to the extent necessary to assist the City
of Kake and the Kake Tribal Corporation in the preparation and
implementation of a watershed management plan for the land
within the City of Kake's municipal watershed.
(g) Effective Date.--This section is effective upon the
execution of one or more reciprocal agreements that provide for
one or more reciprocal conservation easements that, subject to
valid existing rights of third parties--
(1) encumber all lands depicted as ``KTC Land to City
of Kake'' and ``KTC Land-Conservation Easement to City
of Kake'' on a map entitled ``Kake Land Exchange-1999''
dated September 1999;
(2) provide for the relinquishment by Kake Tribal
Corporation to the Corporation's development rights on
lands described in paragraph (1); and
(3) provide for perpetual protection and management
of lands depicted as ``KTC Land-Conservation Easement
to City of Kake'' on the map described in paragraph (1)
as--
(A) a watershed;
(B) a municipal drinking water source in
accordance with the laws of the State of
Alaska;
(C) a source of fresh water for the Gunnuk
Creek Hatchery; and
(D) habitat for black bear, deer, birds, and
other wildlife.
(h) Authorization of Appropriations.--There are authorized
such sums as may be necessary to carry out this Act. No funds
authorized under this section may be paid to Kake Tribal
Corporation unless Kake Tribal Corporation is a party to any
reciprocal agreements entered into under subsection (g).