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                                                       Calendar No. 593
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-397
_______________________________________________________________________


 
        KENAI NATIVES ASSOCIATION EQUITY ACT AMENDMENTS OF 1996

                                _______
                                

                October 2, 1996.--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. 1889]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1889) to authorize the exchange of 
certain lands conveyed to the Kenai Natives Association 
pursuant to the Alaska Native Claims Settlement Act, to make 
adjustments to the National Wilderness System, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill, as amended, do 
pass.
    The amendment is as follows:
    On page 14, line 19, delete all through page 17, line 17 
and insert in lieu thereof the following:

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

    (a) Purpose.--To offset the removal of KNA lands from the Refuge 
System, the Secretary is hereby authorized to withdraw, subject to 
valid existing rights, and to create as a special management unit for 
uses other than wilderness, including the protection of fish, wildlife, 
and habitat, certain unappropriated and unreserved public lands, 
totaling approximately 15,500 acres adjacent to the west boundary of 
the Kanuti National Wildlife Refuge to be known as the ``Lake 
Todatonten Special Management Area'', from the 37,000 acres 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. Such withdrawal shall not include any validly selected land 
by the State of Alaska or Alaska Native Corporation or any lands that 
the Secretary determines has mineral potential based on surveys 
conducted or to be conducted by the U.S. Geological Survey. Such 
withdrawals shall not occur, however, until the Secretary has complied 
with the requirements of subparagraphs (1) through (12) of paragraph 
204(c)(2) of FLPMA. The Secretary may study the remaining lands within 
the area depicted on the map for future potential withdrawal pursuant 
to Section 204 of FLPMA.
    (b) Management.--
          (1) Such designation is subject to all valid existing rights 
        including R.S. 2477 Rights-of-Way, as well as the subsistence 
        preferences provided under title VIII of ANILCA.
          (2)(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 the 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 Special Management Area.
          (2) Section 1110 of ANILCA shall apply to the Special 
        Management Area.
    (c) 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, 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.
    (d) 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 measure

    S. 1889 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

    S. 1889 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.
    Our 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 receive 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 the Interior Solicitor has 
determined that the removal of section 22(g) restrictions from 
private lands requires the approval of Congress.
    S. 1889 executes an offer to KNA from the Secretary of the 
Interior to resolve land use restrictions by offering to 
exchange interests in lands. In essence, the legislation 
provides authority for the Secretary of the 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 legislation 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 (1,234 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 S. 1889 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, S. 1889 designates the Lake 
Todatonten area (approximately 15,500 acres) as a Special 
Management Area (SMA). 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. S. 1889 
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. S. 1889 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.

                          legislative history

    S. 1889, was introduced by Senator Murkowski on behalf of 
himself and Senator Stevens on June 19, 1996. A hearing was 
held before the Senate Energy and Natural Resources Committee 
on June 26, 1996. At the business meeting on September 12, 
1996, the Committee on Energy and Natural Resources ordered S. 
1889, as amended, favorably reported.
    A similar measure H.R. 401 passed the House on September 4, 
1996, by voice vote under suspension of the rules.

           committee recommendations and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on September 12, 1996, by a unanimous voice 
vote of a quorum present, recommends that the Senate pass S. 
1889, if amended as described herein.

                          committee amendments

    During the consideration of S. 1889, the Committee adopted 
an amendment offered by Senator Murkowski as described herein.
    The legislation, as introduced, called for additional 
mitigation to compensate for the KNA lands being removed from 
the boundary of the refuge. The additional mitigation consisted 
of the designation of a 37,000 acre Special Management Area 
adjacent to the Kanuti National Wildlife Refuge some 450 miles 
north of the Kenai National Wildlife Refuge. This Special 
Management area would close current BLM lands to all forms of 
mineral entry and location. Additionally, the Special 
Management area would have included lands that were validly 
selected by the State of Alaska under the Alaska Statehood Act.
    The amendment adopted by the Committee maintains the 
establishment of the Lake Todatonten Special Management Area, 
however reduces the acreage from 37,000 to 15,500 to make it of 
equal size with the private acres being removed from the 
boundary of the Kenai National Wildlife Refuge. Furthermore, 
the amendment prohibits the SMA from including any land validly 
selected by the State of Alaska or Alaska Native Corporation or 
any lands that the Secretary determines have mineral potential. 
This was done as the state considers these important lands for 
a future access corridor. The requirement of a mineral 
assessment was added because the mineral potential of the area 
is largely unknown. In order to make sound policy regarding the 
SMA, the Committee felt it was important to know what potential 
existed first and then determine whether the area should be 
closed to mineral entry. Lastly, the amendment required that 
the withdrawal of the SMA can only occur after the Secretary 
has complied with the requirements of subparagraphs (1) through 
(12) of paragraph 204(c)(2) of FLPMA.
    This section also authorized the Secretary to study 
additional lands for future potential withdrawal in compliance 
with all the provisions of section 204 of FLPMA.

                      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 archaeological 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 l(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.
    Subsection (c)(1)(C) provides authority to the Secretary to 
acquire lands and interests retained by or conveyed to KNA on a 
willing seller basis only. The subsection makes it clear that 
any acquired 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 acquired, 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 acquired 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 15,500 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), for purposes 
other than wilderness, and that the SMA is subject to all valid 
existing rights and subsistence preferences provided under 
title VIII of ANILCA. Furthermore, the SMA can not include any 
land validly selected by the State of Alaska or Alaska Native 
Corporation or any lands that the Secretary determines has 
mineral potential. The withdrawal for the SMA can only occur 
after the Secretary has complied with the requirements of 
subparagraphs (1) through (12) of paragraph 204(c)(2) of FLPMA.
    This section also authorizes the Secretary to study 
additional lands for future potential withdrawal in compliance 
with all the provisions of section 204 of FLPMA.
    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, 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.

                   cost and budgetary considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 16, 1996.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 1889, the Kenai Natives Association Equity Act 
Amendments of 1996, as ordered reported by the Senate Committee 
on Energy and Natural Resources on September 12, 1996. Enacting 
S. 1889 could affect direct spending; therefore, pay-as-you-go 
procedures would apply to the bill. However, we estimate that 
enacting the bill would not significantly affect direct 
spending. S. 1889 contains no private-sector or 
intergovernmental mandates as defined in the Unfunded Mandates 
Reform Act of 1995 (Public Law 104-4), and would impose no 
costs on state, local, or tribal governments.

Bill purpose

    S. 1889 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). The bill also specifies that the 
Cook Inlet Region, Incorporated (CIRI), a Native Regional 
Corporation, would be entitled to receive 1,207 acres of 
federal subsurface estate in lieu of the subsurface estate it 
now owns.
    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 592 
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 authorize the Secretary of the Interior to 
designate about 15,500 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, that 
provision would have no impact on the federal budget. The 
provision permitting CIRI to receive 1,207 acres of in-lieu 
subsurface entitlement could affect direct spending if the 
regional corporation selects land currently generating receipts 
to the federal government. However, we have no basis for 
estimating when such in-lieu subsurface acres would be 
identified from the available pool of acres, and in any case we 
do not estimate that the provision would significantly affect 
direct spending. 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 governments

    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 CBO staff contacts are Deborah 
Reis and Victoria V. Heid (for federal costs) and Marjorie 
Miller (for the state, local, and tribal impact).
            Sincerely,
                                         June E. O'Neill, Director.

                      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. 1889. 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. 1889, as ordered reported.

                        executive communications

    The testimony provided by the Department of the Interior on 
behalf of the Administration at the Committee hearing follows:

  Testimony of Dr. Robert Shallenberger, Chief, Division of Refuges, 
  United States Fish and Wildlife Service, Department of the Interior

    Mr. Chairman, I appreciate the opportunity to testify today 
on S. 1889, the Kenai Natives Association Equity Act. I am 
accompanied by Mr. W. Hord Tipton, Assistant Director for 
Resource Use and Protection of the Bureau of Land Management.
    I am pleased to advise the Committee that the Department 
has reached a tentative agreement with the Kenai Natives 
Association, Incorporated (KNA) for a sale and exchange of 
interests in land. S. 1889 reflects the agreement, and we 
strongly support its enactment. This agreement provides 
beneficial opportunities for KNA to achieve the economic 
viability contemplated by the Alaska Native Claims Settlement 
Act.
    In 1993 the Fish and Wildlife Service and KNA reached a 
preliminary version of the current agreement. Unfortunately, 
funding for the total acquisitions called for in that agreement 
did not appear to be achievable.
    We have since worked with the Federal and State of Alaska 
trustees on the availability of Exxon Valdez oil spill 
settlement funds for the purchase of some or all of KNA's lands 
within the Refuge. The lands on the Kenai River system have 
significant value for species and resources injured by the 
Exxon Valdez spill, including salmon, bald eagles, otters, 
archaeological resources, and recreation and tourism. As a 
result, the trustees have agreed to fund the purchase of a 
significant portion of the lands included in the earlier 
negotiated version.
    With little promise for full funding, the Department last 
December met with KNA's leadership and asked them whether they 
wished to continue to pursue the earlier agreement or to 
negotiate a new agreement based on the settlement funds 
available. KNA elected this latter course and we have now 
reached an agreement that we are confident can be funded and 
implemented if and when endorsed by KNA shareholders.
    Under the proposed agreement, the United States would 
purchase with settlement funds approximately 3,254 acres of KNA 
lands and valid ANCSA land selections within the Kenai National 
Wildlife Refuge for $4,443,000. This purchase price represents 
an appraised fair market value of the land. In addition, the 
agreement provides for the United States to transfer to KNA the 
old Kenai Refuge Headquarters site (5 acres) in the city of 
Kenai.
    Where Cook Inlet Region, Inc. (CIRI) already holds 
subsurface rights to coal, oil and gas underlying some 13,641 
acres of KNA surface lands, the agreement provides that KNA 
will receive the remainder of the subsurface. To consolidate 
management responsibilities, we have also agreed to exchange 
the Beaver Cheek Selected Tract now owned by the United States 
for an equivalent value of KNA lands that will be contiguous 
with the remaining parts of the Refuge.
    The lands presently owned by KNA or received under this 
agreement will be removed from the Refuge and the boundaries 
redrawn accordingly. In addition, KNA will receive the right to 
use sand and gravel and to conduct excavations necessary to 
develop their surface estate to another 1738 acres of land for 
which the United States presently owns the entire subsurface. 
For these lands, located within the Swanson River East Tract, 
the boundary of the Refuge will be redrawn to exclude the 
surface estate held by KNA.
    All of the lands remaining in KNA ownership will be removed 
from the Refuge, and the patent restrictions of Section 22(g) 
of ANCSA which subjects such lands to Refuge laws and 
regulations will also be lifted.
    Finally, the agreement also provides that the Kenai Refuge 
Wilderness area will be expanded by 592 acres of land received 
from KNA, and that the Secretary will nominate the Stephanka 
tract of land received from KNA to the National Register of 
Historic Places due to its archaeological values.
    So that there is no net loss of wildlife values as a result 
of removing KNA's lands from the refuge, the agreement provides 
for the establishment of BLM of a Special Management Area on 
public lands in the Lake Todatonten watershed, adjacent to the 
Kanuti National Wildlife Refuge. This area, consisting of 
approximately 37,000 acres provides key habitat for waterfowl 
and other migratory birds, and its designation as a BLM Special 
Management Area would result in its withdrawal from mining 
entry, subject to valid existing rights, and enhanced 
protection for these wildlife resources. The subsistence 
priorities for use of the public lands under Title VIII of 
ANILCA would continue under the designation.
    The Special Management Area provides balance and public 
benefits to this legislative package. Currently, we are in 
active discussions with the Tanana Chiefs Conference and with 
the surrounding villages of Allakaket, Alatna and Hughes about 
this provision.
    For more than a decade, KNA and the Service have sought a 
means to resolve the conflicts between the fish and wildlife 
resources intended to be protected by the Refuge and KNA's 
ability to develop its ANCSA holdings. This has been a long 
exercise for all parties, and we are hopeful that it will now 
come to a successful conclusion. If the tentative agreement is 
finalized and enacted, both KNA and the nation's fish and 
wildlife will receive significant benefits.
    We therefore urge prompt action by the Committee and look 
forward to enactment of the bill.
    Thank you again, Mr. Chairman, for the opportunity to 
testify. I will be pleased to respond to questions.

                        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 the bill S. 1889, as 
ordered reported.