On December 18, 1971 the Alaska Native Claims Settlement Act (ANCSA) was signed in to law by the U.S. Congress. The Act would divide Alaska Natives into 12 geographic regions, which would later be formed into Alaska Native Corporations (ANCs). A 13th ANC was formed for Alaska Natives living outside the state.
ANCSA granted 44 million acres of land to the 12 regional corporations, in addition to $962.5 million dollars, shared by all 13 corporations. Within the Native corporation regions, smaller Village Corporations were later formed, and now number over 200.
Passage of ANCSA was motived by the settlement of Native land claim issues, which had slowed the construction of the Trans-Alaska Pipeline System. The title to the 44 million acres and access to development of the resources beneath the lands was part of an implicit promise Congress made to Alaska Natives in exchange for giving up aboriginal claims.
Land conveyances – fully realized?
With ANCSA, 44 million acres of land was to be conveyed to ANCs by the federal government. To date, approximately one-third of those land selection conveyances have not yet been finalized.
ANCs have selected land for cultural and historic values, as well as areas rich in natural resources. While some of the conveyances are delayed due to Bureau of Land Management staffing issues, some are also delayed due to other complex issues. These problems have slowed the goals of ANCSA.
ANCSA provides economic opportunities
The Congressional Act was intended to benefit Alaska Natives by providing an economic tool and resources (land). Corporations could partner with Alaska’s resource industries to develop natural resources. These projects help ANCs by offsetting borough and municipal taxes, providing jobs, distributing revenues, and much more.
A provision in ANCSA, Section 7(i), recognizes that lands in each region have differing values and resources. Section 7(i) requires that 70 percent of all revenues from subsurface resource development and timber harvesting received by an ANC be redistributed to the other 11 ANCs.
In addition, a provision for regional corporations to distribute 7(i) revenues to village corporations was implemented, titled 7(j). This provision requires redistribution of 50 percent of 7(i) revenues. The number of village corporations in each region varies, but each one benefits from statewide resource based revenues to regional corporations.
The 7(i) and 7(j) sections of ANCSA were written by Native leaders to benefit all ANCs. When the Alaska Native people came together, they were able to craft a way to share resource revenues between the regions, down to the village corporations.
Margie Brown, President and CEO of Cook Inlet Region, Inc., spoke to the RDC Alaska Resources Conference in November. “Native leaders, working together, decided what those rules should be,” Brown explained referring to the 7(i) and 7(j) rules.
Brown described these provisions for sharing as “the most Native part” of ANCSA, where all Alaska Natives can benefit. Not only does the provision benefit Native corporations though royalty payments, but also through business partnerships and shareholder training and employment.
“ANCSA is not perfect . . . I no longer think of it as the end all, be all, for all that Alaska Native people need. It’s not that, but its such a powerful tool that we need to forward it in the Native community and embrace it and also recognize where there are other needs,” said Brown. ANCSA is a step in a bigger picture, where Alaska Natives will have more opportunities, she noted.
Alaska Native Corporations continue to grow in diversity, with stakes in business from civil engineering to tourism and hospitality, to oil and gas development and healthcare services. Many corporations have operations outside Alaska, and even outside the U.S.
“The definitive history of the Alaska Native Claims Settlement Act has yet to be written,” said Byron Mallott, who also spoke at the RDC Conference.
ANCs are an economic force in Alaska
In 2010, 22 of the Top 49ers, recognized by Alaska Business Monthly as leading corporations of the state, were Alaska Native corporations. A large portion of these business revenues is a result of government contracts with 8(a) provisions. Congress established the 8(a) program with the intent to end poverty that gripped many Alaska Native communities.
However, the original reasons for its creation still exist in many villages in Alaska. It takes time to realize the benefits of the Alaska Native 8(a) program.
In efforts to reduce high unemployment and dependence on welfare, ANCs strive to provide opportunities to shareholders by offering job training, advancement training, scholarships, and more. In turn, ANCs and industry partners work to advance to other causes, such as responsibly developing the natural resources on Native lands in Alaska.
According to the Top 49ers report, Native corporation revenues were over $8 billion dollars in 2010.
“Economic statistics alone do not capture the full essence of how ANCSA has dramatically improved the lives of Alaska Native people,” said Will Anderson in the 2010 ANCSA Regional Association report.
“RDC is proud that all 12 land-owning regional corporations are members of RDC,” said Executive Director Rick Rogers. “With 44 million acres of lands and resources, these sophisticated organizations are an integral part of our resource community in Alaska.”
For more information about Alaska Native Corporations, including brief descriptions, please visit: http://www.akrdc.org/issues/nativecorporations
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