[Senate Report 106-264]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 494

106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-264

=======================================================================




 
ALASKA NATIVE CLAIMS SETTLEMENT ACT AND LAND CONVEYANCE TO THE CITY OF 
                             CRAIG, ALASKA

                                _______
                                

                 April 12, 2000.--Ordered to be printed

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1797]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1797) to amend the Alaska Native Claims 
Settlement Act, to provide for a land conveyance to the City of 
Craig, Alaska, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and an 
amendment to the title and recommends that the bill, as 
amended, do pass.
    The amendments are as follows:
    1. Strike out all after the enacting clause and insert in 
lieu thereof the following:

SECTION 1. LAND EXCHANGE WITH CITY OF CRAIG, ALASKA.

    (a) At such time as Congress appropriates funds sufficient for the 
Secretary of Agriculture to acquire non-Federal lands within 
conservation system units on the Tongass National Forest, the Secretary 
shall convey to the City of Craig, Alaska, all Federal interests in the 
lands identified in subsection (b): Provided, That the lands conveyed 
to the City of Craig shall be of equal value to the lands acquired by 
the Secretary of Agriculture pursuant to this subsection.
    (b) The approximately 4,532 acres of Federal lands to be conveyed 
to the City of Craig are described as follows:
          (1) All Federal land in the following described protracted 
        and partially surveyed townships in the Cooper River Meridian, 
        Alaska:
                  (A) Within T. 71 S., R. 81 E--
                          Section 24, E \1/2\;
                          Section 25, E \1/2\, S \1/2\ SW \1/4\;
                          Section 36.
                          Containing 1360 acres, more or less;
                  (B) Within T. 71 S., R. 82 E--
                          Section 19, S \1/2\ SW \1/4\;
                          Section 29, W \1/4\ NW\1/4\, N \1/2\ SW \1/
                        4\;
                          Section 30, All;
                          Section 31, All.
                          Containing 1500 acres, more or less; and
                  (C) Within T. 72 S., R. 82 E--
                          Section 5, SW \1/4\ NW \1/4\, W\1/2\, SW \1/
                        4\;
                          Section 6, All;
                          Section 7, NE \1/4\ NE \1/4\;
                          Section 8, W \1/2\, SW \1/4\ SE \1/4\;
                          Section 17, NW \1/4\ NW \1/4\, E \1/2\ NW \1/
                        4\, NE \1/4\ SW \1/4\, W \1/2\ NE \1/4\, NW \1/
                        4\ SE \1/4\, S \1/2\ SE \1/4\;
                          Section 20, NE \1/4\.
                          Containing 1672 acres, more or less.

    2. Amend the title so as to read:
    A bill to provide for a land conveyance to the City of 
Craig, Alaska, and for other purposes.

                         purpose of the measure

    The purpose of S. 1797 is to provide for a land conveyance 
to the city of Craig, Alaska, and for other purposes.

                          background and need

    The city of Craig has grown from 250 people in 1971 to a 
populations of 2,136 today. The city of Craig submitted at 
least one letter, in 1969, to the State of Alaska requesting 
that the State select lands in the vicinity of Craig for the 
benefit of Craig pursuant to section 6(a) of the Alaska 
Statehood Act. However, this request did not result in any land 
conveyances to the city of Craig. Subsequent land conveyances 
to village corporations, and tax provisions of federal law--
which prevent the taxation of undeveloped native lands within 
the city limits--have had the unintended effect that the city 
cannot assess taxes on most of the property in the townsite. 
This constrains the city's means of financing its burgeoning 
municipal needs. The conveyance of lands from enactment of S. 
1797 would provide the city with a land base to support 
municipal services.
    The Tongass National Forest contains many parcels of land 
in non-Federal ownership that, if acquired, would improve the 
management of the National Forest resources. S. 1797 prohibits 
the Secretary of Agriculture from conveying identified lands to 
the city of Craig unless Congress appropriates funds sufficient 
to acquire non-Federal inholdings within the Tongass National 
Forest.

                          legislative history

    S. 1797 was introduced on October 26, 1999, by Senator 
Murkowski. The Committee on Energy and Natural Resources held a 
hearing on S. 1797 on February 10, 2000. At the business 
meeting on April 5, 2000, the Committee on Energy and Natural 
Resources ordered S. 1797 reported favorably with an amendment 
in the nature of a substitute.

            committee recommendation and tabulation of votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 5, 2000, by a unanimous voice 
vote of a quorum present recommends that the Senate pass S. 
1797 if amended as described herein.

                          committee amendment

    During consideration of S. 1797, the Committee adopted an 
amendment in the nature of a substitute. The amendment changes 
the title of the Act. In addition the amendment prohibits the 
Secretary of Agriculture from conveying the identified lands to 
the city of Craig, Alaska, unless and until Congress 
appropriates funds sufficient for the Secretary of Agriculture 
to acquire inholdings on the Tongass National Forest that are 
of equal value.

                      section-by-section analysis

    Section 1(a) authorizes the Secretary of Agriculture to: 
acquire lands within conservation system units of the Tongass 
National Forest, at such time as Congress appropriates 
sufficient funds; and convey a parcel of land to the city of 
Craig that is of equal value.
    Subsection (b) describes the lands to be conveyed to the 
city of Craig.

                   cost and budgetary considerations

    The Congressional Budget Office (CBO) estimate of the costs 
of this measure follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 12, 2000.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1797, a bill to 
amend the Alaska Native Claims Settlement Act, to provide for a 
land conveyance to the city of Craig, Alaska, and for other 
purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                         Robert A. Sunshine
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1797--A bill to amend the Alaska Native Claims Settlement Act, to 
        provide for a land conveyance to the city of Craig, Alaska, and 
        for other purposes

    CBO estimates that implementing S. 1797 would increase 
discretionary spending by $5 million over the 2001-2005 period, 
assuming appropriation of the necessary amounts. The bill would 
not affect direct spending or receipts; thus, pay-as-you-go 
procedures would not apply. S. 1797 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act. The bill would benefit the city 
of Craig, Alaska, by providing land from which the city may 
generate new revenues to pay for city services. The budgets of 
other sate, local, and tribal governments would not be 
significantly affected by this bill.
    S. 1797 would direct the Secretary of Agriculture to convey 
approximately 4,500 acres of land within the Tongass National 
Forest to the city of Craig, Alaska. That land would be 
conveyed when sufficient funds are appropriate for the Forest 
Service to acquire comparable nonfederal lands within that 
forest. Based on information from the Forest Service, CBO 
estimates that acquiring such lands would cost about $5 million 
over the 2001-2005 period.
    According to the Forest Service, the lands that would be 
conveyed to the city do not currently generate any significant 
receipts, and the agency does not expect them to generate any 
significant receipts in the foreseeable future. The lands that 
would be conveyed are part of a larger area where the timber 
was offered for sale in 1999. No bids were received for this 
timber and the agency does not plan to reoffer the sale in the 
near future.
    The CBO staff contract is Megan Carroll. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1797.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1797, as ordered reported.

                        executive communications

    On April 6, 2000, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 1797. These 
reports had not been received at the time the report on S. 1797 
was filed. When the reports become available, the Chairman will 
request that they be printed in the Congressional Record for 
the advice of the Senate. The testimony provided by the Forest 
Service at the Subcommittee hearing follows:

Statement of Jack Craven, Director of Lands, Forest Service, Department 
                             of Agriculture

    Mr. Chairman and Members of the Committee, thank you for 
the opportunity to be here today to present the 
Administration's views on S. 1797, a bill to convey to the City 
of Craig, Alaska a 4,560 acre parcel of National Forest System 
land from the Tongass National Forest.
    The Administration strongly opposes S. 1797. However, we 
are aware of the City's financial difficulties and we will 
continue to work to assist the community through existing 
programs and to discuss other alternatives for helping the 
City.
    S. 1797 is a bill to convey to the City of Craig, Alaska a 
4,560 acre parcel of National Forest System land from the 
Tongass National Forest to broaden the City's tax base and 
assist Craig with its financial difficulties.


                     additional lands after ancsa?


    Under Section 14(c)(3) of the Alaska Native Claims 
Settlement Act (ANCSA), each municipal entity received acreage 
for community expansion purposes. The Alaska State Office of 
the Bureau of Land Management has confirmed that the City of 
Craig has already received its Section 14(c)(3) entitlement. 
The City of Craig has gone through the same process as all the 
other communities in the Tongass regarding lands available or 
appropriate for selection and is not entitled to additional 
land selections.


                            no compensation


    S. 1797 would simply convey lands to the City of Craig. It 
provides no compensation to the American people for the 4,560 
acres to which they would lose both ownership and access. An 
estimate of the market value, based on current timber stumpage 
values, is $1,700 per acre for a total value of approximately 
$8 million, and yet, the bill provides for transfer of the 
lands with no payment in return.


                            resource values


    In addition to the more easily quantifiable values, there 
are exceptional ecological values in the 4,560 acres, 
including: 860 acres of scenic viewshed, 320 acres of old 
growth habitat, 13 miles of class 1 anadromous fish stream, and 
15 miles of class 2 resident fish stream. The area is also 
important for subsistence use by several local communities and 
it falls within the traditional territories of the Heenya Kwaan 
Tlingit. The City lacks the Forest Service's legal mandate to 
protect subsistence uses.
    Likewise, the parcel is within the viewshed of a proposed 
scenic byway: the Thorne Bay to Control Lake to Coffman Cove 
road. Should the land be conveyed to the City of Craig, the 
Forest Service has concerns that it may be harvested for quick 
economic return and without regard to visual and other 
environmental impacts. The cut units would extend the existing 
visual impacts from harvest on the adjacent Sealaska Native 
Corporation lands (not subject to the same visual resource 
protections as National Forest System lands). In addition, the 
cuts would be visible from the Control Lake cabin, currently 
one of the highest use public recreation cabins on the Prince 
of Wales Island road system. Public recreation opportunities 
would also be negatively affected, as the conveyance would 
remove another two and a half miles of the road corridor from 
Forest Service jurisdiction, thus reducing the likelihood of 
developing public recreation sites along the mainline road. 
Without development of the recreation sites, future growth of 
recreation and tourism on Prince of Wales Island would be 
limited.


                            lost investment


    In addition to the value of the land and the cost of 
reducing the number of future public recreation sites and the 
visual appeal of current sites, there would be a direct dollar 
loss to the American taxpayer. The entire selection falls 
within the Control Lake Project Area, which includes 351 acres 
and 9.8 million board feet of timber being prepared for sale. 
The Forest Service has invested approximately $300,000 to date 
in the timber sale, road layout, and environmental analysis 
work in the area. This investment would be lost if the land 
were simply conveyed to the City of Craig.
    The Administration strongly opposes S. 1797, although we 
are aware of the City of Craig's financial difficulties and 
continue to offer our assistance to the community. In 1999, the 
Forest Service met three times with city representatives, twice 
in Washington, D.C. and once in Juneau, Alaska. The City also 
met with Under Secretary Jim Lyons' office. The Forest Service 
and Under Secretary Lyons' office discussed the situation and 
explored the City's proposal for legislation. Both the Forest 
Service and Under Secretary Lyons' office were clear that the 
legislation would be strongly opposed and encouraged the City 
to develop other alternatives. The City has not done so.
    The Forest Service met again with the City on February 7. 
At this meeting the Forest Service explored with the City 
opportunities for additional federal financial assistance that 
may exist through the State and Private Forestry programs, such 
as grants, cooperative agreements, and economic development 
funding. Over the past several years, the City of Craig has 
received over $170,000 in Forest Service Rural Community 
Assistance grants and over $3,230,000 in payments from the 
Southeast Alaska Economic Fund. The FY 2000 budget does not 
include the City of Craig on the list of Southeast Alaska 
forest dependent communities to receive an additional $22 
million in aid from the Southeast Alaska Economic Disaster 
Fund.
    In conclusion, the Administration strongly opposes S. 1797 
as a land giveaway without compensation to the American 
taxpayers and as a dangerous precedent for allowing communities 
to seek additional land selections. The Department is committed 
to work with the City of Craig on other options for addressing 
their financial difficulties.


                                summary


    In conclusion, the Department of Agriculture strongly 
opposes S. 1797 as a land giveaway without compensation to the 
American taxpayers and as a dangerous precedent for allowing 
communities to seek additional land selections. The Department 
is committed to continue to work with the City of Craig on 
other options for addressing their financial difficulties.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by S. 1797, as ordered 
reported.

                                

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