Testimony

Submitted to the
Alaska Natives Commission
at

Anchorage, Alaska

October 15-17, 1992

ALASKA NATIVES COMMISSION
JOINT FEDERAL-STATE COMMISSION
ON
POLICIES AND PROGRAMS AFFECTING ALASKA NATIVES
4000 Old Seward Highway, Suite 100
Anchorage, Alaska 99503

TABLE OF CONTENTS

Title Page| PDF Version

 

ANCHORAGE TESTIMONY - OCTOBER 17, 1992

DEPOSITION EXHIBIT #3 - TESTIMONY OF ELIZABETH LeBLANC

DRAFT RECOMMENDATIONS FOR ACTION
SUBMITTED TO THE ALASKA NATIVES COMMISSION
BY CALISTA CORPORATION
LAND & NATURAL RESOURCES DEPARTMENT

ALASKA NATIVE COMMISSION HEARINGS
OCTOBER 17, 1992

Over the last twenty years, the Calista Corporation has dutifully tried to implement the Alaska Native Claims Settlement Act and ensure that Calista Corporation and the Yupik people of the Calista region receive the full value of their entitlement under ANCSA. The battle has been long and expensive. Unfortunately, Calista Corporation and the village corporations have faced obstacle upon obstacle in this process. And as of today, the corporations are not any closer to solving the problems of the Yupik people than they were twenty years ago.

During the last four years, Calista Corporation has been a strong advocate for finding solutions to the problems facing the Yupik people and other Alaska Natives. Calista Corporation has taken this advocacy role because the Calista region and Yupiks living in the region are the ones most affected by the problems endemic to Alaska Natives. No other region suffers the extreme living and economic conditions found in the Calista Region and western Alaska.

How well Alaska's villages can survive in the corning years has long worried Native leaders and others, including Calista Corporation. After careful analysis and research, the Calista Corporation has determined that if the villages in the Calista Region are to survive to the next century they will need viable economies, and the Native Corporations must be strong and financially stable. The corporations and villages must possess the necessary resources - human, financial and natural -to pursue opportunities and implement programs and policies to mitigate the problems now affecting Alaska Natives, especially the Yupik people.

The following is a series of recommendations for the Commission to consider recommending to Congress as actions to take to address the various issues the Commission is focusing on. Some of the recommendations are very simple and would require little in the way of funding or program changes; others, however, require the revamping or development of new programs and funding sources. The range of actions are broad and, in many cases, are interdependent upon one another or will have a trickle-down effect. For example, by ensuring safe sewer and water systems in the villages many health problems can be brought under control.

The basis of our recommendations is to identify actions which can be taken to create more self-sufficient village economies by preserving the subsistence sector, expanding market and resource development: activities, and giving the Native corporations the means by which to become strong, viable, competitive business entities. Under each general policy recommendation we have identified several specific actions which can be taken to mitigate the various problems affecting Alaska Natives, especially the Yupik people. If these actions are not pursued it is very probable that village residents will leave the villages, and the welfare of the remaining village residents will decline.

DRAFT RECOMMENDATIONS AND ACTIONS

1. Protect Subsistence Rights for Alaska Natives. The state and federal government need to continue to work with Alaska Natives to ensure that Alaska Natives continue to have the right to practice subsistence activities. Subsistence activities are an integral part of the Alaska Native culture and the foundation of the village economic system. Without subsistence the life as we know it in Alaska Native villages will not survive. In order to ensure the continuation of subsistence, improved opportunities for managing subsistence resources must be implemented. Village economies based on resource harvesting activities with fewer limitations on access, control and commercial use of subsistence resources could support a significant population in rural Alaska. This may be accomplished by taking the following actions:

* Ensure more participation by Alaska Natives in subsistence management decisions and granting more local village control over subsistence activities. This may be accomplished by requiring that Alaska Natives be appointed to advisory boards and commissions which establish policies, directives and regulations affecting subsistence activities.

* Protect subsistence preference rights for Alaska Natives by enacting legislation which continues the protections and provisions established by Title VIII of the Alaska National Interest Lands Conservation Act (ANILCA).

* Continuing the rural preference for subsistence activities on public lands is essential to protecting the rights of Alaska Natives to practice the subsistence lifestyle common to village residents.

* Amend the Migratory Bird Treaty Act to allow for spring subsistence hunts. In the spring before fishing begins, meat is in very limited supply. Returning migratory birds are one of the few protein sources available during that time of year.

* Reauthorize the Marine Mammal protection Act so that Alaska Natives can continue to hunt marine mammals for sustenance and subsistence purposes. The act's current provisions and policies should not be repealed.

2. Ensure that Alaska Natives receive full economic value for their lands received under ANCSA. There are 22 village corporations, 16 of which are in the Calista Region, affected by Section 22(g) of the Alaska Native Claims Settlement Act (ANCSA). When these lands are appraised to establish a land-value for land exchange purposes, Section 22(g) is considered an encumbrance on the land. It requires all Native-owned lands within the boundaries of a national wildlife refuge to remain subject to the laws and regulations governing use and development of the refuge. The 22(g) language is used to protect refuge interests at the expense of the

.Native corporations' right to freely develop their lands and receive full economic value for the land. This language gives the USF&WS ultimate control over Native-owned lands.

This provision of ANCSA has been used to substantially decrease the value of Native-owned lands within refuge boundaries. The USF&WS appraisers have assigned lower fair market values to lands subject to 22(g) on the basis that land use and development activities cannot occur on 22(g) lands without prior approval from the USF&WS. Although these lands are considered private lands, the Native corporations are not allowed to develop and use the land as they see fit. Typically, lands appraised by the USF&WS not subject to Section 22(g) have higher fair market values than lands subject to Section 22(g) requirements. This practice by the USF&WS results in the agency assigning discounted values to Native lands encumbered by Section 22(g) in land exchanges and acquisitions of ANCSA land.

Another type of land which is devalued during the appraisal process are those lands identified as "in-lieu" selections. Many village corporations throughout Alaska were not able to select their entire ANCSA entitlement within their original withdrawal area. Village selections made outside the withdrawal area were made from areas withdrawn under Section 11(a)(3) of ANCSA are known as deficiency lands or "in-lieu" lands. Those villages which have in-lieu selections include: a) village corporations within established national wildlife refuges and parks which were limited by Section 12(a) of AMCSA to select on 69,120 acres of land within the withdrawal area surrounding the village, although their entitlements were much larger; b} village corporations which did not have enough unappropriated land in their withdrawal area from which to select; and c) village corporations with small withdrawal areas resulting from their proximity to a meridian or the coast, thereby reducing the amount of land available for selection.

The village of Toksook Bay, located in the Calista Region, is affected by all of the above conditions. It is a 22(g) village because it was located within the boundaries of the former Clarence Rhodes National Wildlife Refuge; about 1/3 of it's original withdrawal area is in the water; and because of it's proximity to other villages there was not enough unselected land in it's withdrawal area, consequently about half of it's selections were made in deficiency selection areas many miles from the village. In recent appraisals, land selections in deficiency areas have been assigned lower values on the basis that they are far from the village, therefore their economic value is not as great as those lands immediately adjacent to the village-This village did not ask to make selections in a deficiency area far from the village. It was required to do so under the terms and conditions of ANCSA. The village corporations are being penalized simply because their lands are located within a deficiency area. No other place in the state are there so many villages similarly penalized by the selection requirements of ANCSA, as in the Calista Region.

The following actions should be taken to ensure that the economic value of the land received under ANCSA is not diminished because of unfair appraisal practices:

* Amend Section 22(g) of ANCSA so that the language removes federal agency control over the use and development of corporation lands within national wildlife refuges. The language should restore to the corporations their right to use their land as they prefer or to compensate them for the loss of their development rights. Such an amendment would enhance the usefulness of Native-owned land and increase Native control over the lands they own.

* Establish a policy to prohibit the practice of discounting land values for land subject to the provisions of Section 22(g) of ANCSA. Corporations seeking to exchange or sell lands affected by Section 22(g) should not have the fair market value of their lands reduced simply because they are subject to development restrictions under Section 22(g) of ANCSA. It is not reasonable to say 22(g) lands are less valuable' for economic development or other activities, therefore it has a lower fair market value for exchange or acquisition purposes. The economic and resource values of the land remains the same whether or not the land is subject to Section 22 (g).

* Enact legislation which establishes the fair market value for "in-lieu" ANCSA lands to be the same value as those lands within the original township withdrawal area, when included as part of a land exchange or sale with the federal government. The practice of discounting in-lieu lands results in the real value of a corporation's land settlement being significantly diminished, even though the villlage had no choice but to select land far from the village in a deficiency selection area.

3. Lower unemployment rates in the villages by encouraging local hire of Alaska Natives. Jobs are very scarce in villages, consequently, hiring just one or two people from outside the village can mean village residents go without work. The lack of employment opportunities have a significant negative impact on a village. Under the current labor laws, employers have absolutely no incentive or requirement to hire Alaska Natives. Local hire laws were commonplace during the construction of the Trans-Alaska pipeline and proved to be both necessary and instrumental in ensuring that Alaska residents were hired for jobs on the pipeline projects.

The following actions could be taken to encourage the practice of hiring Alaska Natives:

* Enact laws which require employers to give Alaska Natives preference for jobs in the villages. For example, PL 93-638 provides for Native preference when filling positions funded under PL 93-638. This type of provision could be incorporated into other federal and state programs benefitting Alaska Natives.

* Develop a bonus system to reward companies or contractors who hire Alaska Natives to work on projects in the villages. The bonus could be similar to the cash bonus awarded when a project is completed ahead of schedule by a contractor.

* Implement regulations which require state and federal contracts to contain a provision which requires contractors and businesses working in rural Alaska to hire Alaska Natives for state andfederally funded projects, if qualified Alaska Natives areavailable to work on the project.

* Implement a rating system for state and federal jobs which gives Alaska Natives living in economically disadvantaged areas a preference for qualifying for a job. The rating system could be modeled after veteran's preference ratings or special preferences given to individuals with handicaps.

* Require Native preference on resource development and construction projects occurring on federal lands in economically depressed regions of the state. This preference right could be modeled similarly to Alaska hire provisions implemented during construction of the Trans-Alaska pipeline.

* Establish a policy to encourage Native hire in state and federal government positions.

* Provide training in how to apply for federal or state jobs. The paperwork involved in getting on state and federal registers is overwhelming and difficult to understand for many people, particularly those with little or no experience in dealing with bureaucratic paperwork. Simplified forms and information booklets geared to the education levels and cultural perspectives of Alaska Natives would make applying for federal and state jobs less intimidating to Alaska Natives.

* Require that a percentage of the labor force on state and federally funded capital projects in the villages be Alaska Natives living in the village. Policies and regulations promoting local hire must be implemented to ensure that Alaska Natives are given priority in filling jobs in the villages.

* Give special incentives (e.g., staff training, money for on-the-job training, technical assistance) to agencies and private businesses which hire Alaska Natives.

* Establish state and federal personnel offices in regional centers easily accessed by village residents to provide assistance to Alaska Natives in applying and qualifying for jobs, getting job training, and qualifying for unemployment benefits.

* Implement a policy requiring state and federal government to hire a certain number of Alaska Natives over the next ten years. The policy could be modeled after the quota systems used by universities and colleges to recruit and admit minority students.

4. Promote and encourage mineral exploration in remote and undeveloped areas of Alaska. It is current public policy to not spend public dollars to do mineral exploration on private lands. This policy; however, does not benefit the people of Alaska. Large tracts of ANCSA land which may have sizeable deposits are going unexplored. The Native corporations do not have the cash reserves and expertise needed to pursue exploration and there are few incentives that encourage private industry to explore on these lands. The lack of interest in western Alaska is due largely to the difficulty and high costs associated with doing exploration in an undeveloped, under-explored, minimally mapped, and geographically isolated region.

Virtually all of the land in the proximity of villages needing economic and energy assistance is-owned by ANCSA corporations. The discovery of mineral deposits or oil and gas on ANCSA lands could provide economic opportunities, jobs, and scarce energy resources that do not exist presently, but are desperately needed in these regions of the state. Due to the land selection patterns under ANCSA the villages are now surrounded by private land (i.e. Native corporation lands). Normally, exploration work using federal and state money is conducted on public land, therefore little exploration work occurs near communities surrounded by private lands. In recent years, the USGS has spent millions of dollars doing exploration - work in southeast Alaska, but almost no money for exploration work in the Yukon-Kuskokwim region. The regions which need exploration work done in order to encourage economic development are being overlooked because they are dominated by private corporation lands; and there are little state-owned land in the region.

A new perspective is needed - one which realizes that exploration work done on Native-owned land benefits all Alaskans (if a world class mineral deposit or oil reserve is found), not just the Native community. A good example is the Red Dog Mine which is providing jobs, contributing money to the state's coffers, putting Alaska on the map as a world class mineral producer; and helping improve life for people living in western Alaska. More projects and joint cooperative ventures like Red Dog are needed in rural Alaska. The primary focus, however, should be the fact that such a program might result in the creation of numerous long-term jobs in areas that desperately need them. If exploration activities using public funds lead to the creation of one mine in western Alaska the money will have been well spent. A single mine, as we have seen with the Red Dog Mine, can make a substantial impact on employment levels and help establish an economic base in a region thereby reducing the need for government assistance in the region.

There is a critical need for increased mineral exploration in rural Alaska and particularly in western Alaska. For example, vast areas of the Calista region remain largely unexplored for hardrock minerals and oil and gas. In the Calista region alone, three major oil and gas basins are virtually unexplored. In an oil and gas basin with a geographical area comparable in size to the state of Oklahoma, only one test hole for oil has been drilled* In addition, there has been only limited seismic or reconnaissance work completed in any of the oil and gas basins within the Calista region.

The following actions should be considered for encouraging mineral exploration and development on Native-owned lands:

* Allow public agencies, such as the USGS, Bureau of Mines, and State Department of Natural Resources, to conduct mineral exploration and research on Native-owned lands in Alaska. Since Native corportions own 44 million acres of land (12 percent of the land in Alaska), it is in the public's best interest to not write these areas off for exploration simply because they are privately owned lands.

* Provide incentives through tax breaks for mineral and oil and gas exploration or development activities in economically depressed areas. Private companies need incentive to invest money in high-risk areas with little known mineral potential. Without a financial incentive they are going to invest in more accessible areas with better known potential, and fewer environmental constraints. Currently, natural resource development companies are more likely to go explore in Russia than they are Alaska because of the state's environmental regulations, high tax rates on oil companies, and lack of financial support in terms of providing loans developing natural resources in economically unstable areas of the state.

* Implement a state and federal policy requiring federal and state agencies to focus a portion of their mineral exploration, research and mapping budgets on those areas of Alaska which have not been explored and are economically depressed. Agencies such as the Bureau of Mines and U.S. Geological Survey have spent millions of dollars doing work each year in areas like southeast Alaska, yet western Alaska goes unvisited and unexplored year after year. It would greatly benefit western Alaska if these agencies invested more work in this part of the state. Until there is a good body of knowledge about the resource potential of the more undeveloped areas of Alaska, there will be very little natural resource development activity in those parts of the state. Because of market conditions and high cost of exploration, private industry is less willing to invest large amounts of time and money in conducting exploration work in unknown, unexplored areas.

* Implement a joint federal-state program which allows public funds to be set aside and used by agencies such as the Department of Natural Resources, USGS and Bureau of Mines to do exploration on ANCSA lands in regions with large numbers of economically depressed villages.

5. Strengthen Local Village Government. ANCSA did not abolish the Indian Reorganization Act (IRA) or traditional council governments in Alaska; it only settled outstanding aboriginal land claims. IRA and traditional council governments are recognized forms of government indigenous to Alaska Natives and other Native Americans, The state of Alaska has been reluctant to recognize these governments or establish a government to government relationship for grant funding, granting police powers, contracting, or distributing revenue sharing funds.

Many villages would prefer to follow either an IRA or traditional council form of government, rather than the municipal government implemented in state law. Those villages which do not have a municipal government organized under state law are ineligible for revenue sharing and receiving various forms of grants from the state of Alaska for operating a local government. Recognition of the IRA's and traditional councils as an acceptable form of local government will lead to more effective local government. It will eliminate the need for more than one form of government in the villages, and will eliminate confusion as to who has the authority to govern and make decisions in the villages. It will also lead to greater participation in local government and would give village residents a greater sense of control over their own destiny and affairs.

The following actions should be taken to give Alaska Natives greater voice and control over local government in the villages and ensure that they receive adequate funding to carry on the day-to-day operations of the village's local government:

* Recognize for purposes of contracting, using police powers, applying for grants for community projects and participating in the local government process, IRA and traditional councils as a form of local government with the same rights and authorities as cities and municipalities in Alaska.

* Allow villages which are organized as IRA government or traditional councils to receive municipal revenue sharing funds. Most of these villages are very small and have no way to generate revenue from a local tax base. State revenue sharing monies are greatly needed in these communities to carry out the responsibilities and obligations required of local governments.

6. Ensure that there is safe and affordable housing in the villages. Housing is woefully inadequate in the villages of Alaska. The quality of housing is substandard. Over-crowding is commonplace. Waiting periods for new housing are dependent on timing of new multiple unit projects and supply lags behind need and demand. Even new houses may lack running water and indoor plumbing if these systems do not exist in the village they are constructed in. Poorly maintained heating systems cause excessive home heating costs.

The current programs and policies for providing housing to Alaska Natives in rural Alaska are not meeting the needs of the people. The need for housing in rural villages is rapidly increasing. Rather than bring in companies from outside the villages to build houses within the village, programs should focus on using resources and people in the villages to construct homes or make renovations. Such an approach would provide badly needed jobs in the villages, promote pride in home ownership, and provide on-the-job training. Housing programs in rural villages, if properly implemented and organized, can become a form of economic development employing local workers in an on-going project that would include both new construction and maintenance of existing housing project units.

The following actions should be taken to improve existing housing programs:

* Revise CFR 7 (b) laws that require Native hire for federal housing programs to mandate that contractors hire local workers. Construction jobs for housing projects are important sources of employment in villages where few jobs exist.

* Design smaller, longer-term housing projects that require completion of fewer units per year over a longer project time span. Pattern these projects after the regional housing authorities' "burn-out" program where small projects using local builders or groups work on two or three units in a village each year. Completion of a few units each year over several years, instead of to 24 units all at once, would provide a stable program of sustained employment achievable by local construction crews who would develop a good working knowledge of their village's housing construction.

* Implement more flexible building codes and specs for the use of materials and construction which allow for the use of innovative technologies and designs developed to meet the climatic conditions and needs of different parts of the state. The standardized material and design specs required by financial institutions for meeting loan requirements and federal regulations relating to construction and design minimize, and sometimes even prevent, the use of alternative materials or construction techniques. More flexible specs and building codes for construction in rural areas would make it easier to adapt home designs and materials to local areas.

* Revise federal and state contracting procedures for housing projects so that regional housing authorities can contract with village corporation, IRA or traditional councils, or individuals to construct houses in the village. These entities are more likely to hire local village residents than construction companies from outside the village.

* Bring housing units in the villages up to acceptable health and safety standards. A program should be established which allows individuals and the regional housing authority to get grants to bring homes into compliance with state safety, health, energy and building codes.

* Implement a homeowners education program which teaches individuals how to maintain a home and do simple home repairs. Modify HUD and Alaska State Housing Programs so that individual homeowners can perform repair work following program guidelines and codes. The necessity for importing non-village labor for repair work would 'be eliminated and individuals could obtain skills necessary to maintain their homes. Such a program could be coordinated through BIA, IHS, ASHA and (?).

* Educate the Alaska State Housing Authority and federal housing programs, with the goal of creating flexibility in housing loan and program funding criteria to allow for alternative or innovative housing construction technologies. New energy-saving and cost-effective technologies with demonstrated application in rural Alaska are pre-empted from housing programs because borrowers cannot get loans to build or purchase houses using these technologies.

* Continue the funding of programs which encourage energy conservation and home weatherization so that homes are made energy-efficient, thus helping reduce power costs in the villages both to individuals and to the community.

* Give contractors who build houses in villages under federal and state housing programs a financial incentive to hire locally, and whenever possible, buy materials and supplies from local businesses and suppliers. Construction jobs for housing projects can be a very important source of local employment in villages that have few jobs available.

* Promote using local contractors and hiring village residents to work on housing projects. If the construction design of a house is labor intensive, it should use local labor and materials rather than bringing in materials and workers from outside of the region.

7. Provide job training to Alaska Natives so that they may compete in today's workplace and receive useful skills. A variety of job training and apprenticeship programs are already in place, however, they are not meeting the needs of Alaska Natives because they focus on training individuals for jobs in the urban areas or in trades and industries not located in the villages. It doesn't do much good to train a man to be a crane operator if there isn't a crane in the village for him to operate. It is unrealistic to expect people in the villages to leave their families, change their cultural values, and forsake the Native lifestyle so they can move to Anchorage or Fairbanks for a job or to get job training.

The following actions should be taken to improve job training opportunities for Alaska Natives:

* Provide funding and training for jobs in the villages, e.g., power plant operation, carpentry, plumbing, electrical work, fisheries-related skills such as hanging nets and building boats, building repair and maintenance, small engine mechanics, cannery and fish processing skills, teacher's aide, bookkeeping, health aide, child care specialists, elderly care specialists, dieticians, to name a few. Emphasis on technical braining should begin in the high schools in the region. People often don't leave the village for training because the training they receive will not qualify them for a job in the village. Simply sending people to voc-tech training in Seward or elsewhere is not the answer. Training must provide a usable skill that will qualify the trainee for jobs needed and present in the village today.

* Provide financial incentives to contractors and businesses who provide on-the-job training to village residents on construction projects being undertaken in the village. For example, an employment program can pay part of a worker's wages (similar to JTPA or on-the-job training programs).

* Provide vocational and apprenticeship programs in areas accessible to the villages. For example, a job training center could be established in Bethel, Dillingham, etc. Since many people have family and friends in regional centers, the move for training wouldn't be nearly as expensive or stressful as going to Anchorage or Seward. It is very expensive for people to go to the Skill Center in Seward, consequently, many people do not go for training.

* Establish a post-secondary vocational education facility in the Calista region. The University of Alaska's Kuskokwim campus is underutilized-This facility could be used to conduct vocational training classes and develop work-study or job training programs that teach students skills which can be used in the villages.

* Provide employers and Alaska Natives with cross-cultural training to familiarize each other with job expectations and what it takes to succeed in the work force. For example, where appropriate' promote the use of two-week on/two-week off work schedules; allow time off for traditional activities such as funerals for extended family members, subsistence hunting and fishing; allow flexible work hours which permit individuals to care for children or elderly family members (many people live in extended family situations); or take classes which improve job skills or education level.

8. Use of land exchanges to encourage economic development on native-owned lands. Land exchanges provide two types of benefits. First, they would provide an affordable means for the federal acquisition of Native-owned inholdings within national wildlife refuges, parks and wilderness areas. In exchange for these lands, Native corporations would enter into land exchange agreements similar to the CIRI or Chugach land exchanged agreements, whereby villages receive land, credits, cash or some combination thereof for their lands. These exchanges would allow the Native corporations to select land with more immediate development potential or land that could be used to generate cash for the corporations. In turn, revenue earned from these lands would be reinvested by the corporations or be used to create jobs or business, ventures in industries such as commercial fishing, mining, or real estate development.

Land exchanges have been a very effective tool for helping some regional corporations become more financially stable. For example, lands Cook Inlet Region, Inc. received have been leased and are now producing natural gas. Arctic Slope Regional Corporation leases oil and gas rights on lands they received as part of a land exchange. The importance of land exchanges should not be overlooked because they benefit not only Alaska Natives, but all residents of Alaska and the nation because it gives the government a methodology for acquiring privately-owned lands needed to protect valuable wildlife resources. In burn, lands are made available for development that might not otherwise be developed.

The following action should be taken to encourage land exchange between Native corporations and the federal government:

* Promote use of land exchanges to encourage economic development. Encouraging land exchanges in western Alaska is especially critical for the Native corporations since few opportunities for economic development exist at this time.

9. Give Priority to and target programs and funding to areas of the state which are the most economically depressed or in the greatest need. In today's world of shrinking money for capital projects, infrastructure and economic development, it is important to put the money and programs where there is the greatest need and they can do the most good. It is no longer feasible to operate and fund large general programs in education, health care or capital spending. Recently, the Anchorage Daily News published a series of articles on the sewer and water crisis in western Alaska. Because of the grave danger to public health and safety, future funding for sewer and water projects should be targeted to those areas which have chronically unsafe conditions. The following policies should be implemented to focus attention and assistance on communities and regions most in need of assistance:

* Develop and implement a system for determining community need levels for programs and capital project funding. A ranking system would rank communities from least to greatest need based on unemployment rates, suicide rates, homicide and accidental death rates, health statistics, and income levels in the communities.

* Create separate programs, qualification criteria, and funding sources for villages and regions with critical health, social and economic development needs. Economically disadvantaged villages should not have to compete with urban communities for funding and programs for services such as sewer and water facilities. Funding should automatically focus on communities with identified needs for infrastructure such as sewer and water systems, health clinics and housing.

* Implement a standard policy requiring programs and assistance be given to regions and groups most in need. Areas in critical need, such as western Alaska, should receive first priority and funding necessary to raise living and economic standards to comparable levels in other parts of the state.

* Undertake a comprehensive, state-wide study to determine the needs of rural communities in Alaska. The object of the study would be to identify which communities are in the greatest need and establish priorities for providing assistance and programs to bring these areas up to minimum living standards.

10. Foster Native corporation participation in programs affecting the social and economic well-being of Alaska Natives. The ANCSA village and regional corporations are an existing vehicle in rural Alaska capable of fostering economic and social programs if given the opportunity and funding needed to implement programs, services, and start up business ventures. This may be accomplished by taking the following actions:

* Encourage the state and federal governments to use the Native corporations as conduits to stimulate economic development and deliver services to village residents. This can be broadening laws and programs to allow the Native corporations to administer programs, receive grants, and provide services commonly administered by state and federal agencies or non-profit corporations.

* Modify grant and program regulations to allow for-profit Native corporations to receive grants and funding for job training and economic development. Currently, most programs require funding to go through a non-profit organization. This isn't always efficient because the emphasis of the non-profits tends to be on social services (education, health care, child welfare). Non-profits usually don't have staff trained in business decision-making and investments. The ANCSA corporations were created to function as businesses and provide economic development opportunities to Alaska Natives. However, their for-profit status prohibits use of state and federal grant monies ear-marked for economic development programs and projects.

* Provide low-interest loans, tax incentives, and loan forgiveness programs for creating pilot programs, investing in developing technologies or starting businesses in rural areas of Alaska. Financial incentives must be provided to corporations, private businesses, and industries to encourage investment in the villages. Because of the high financial risks and start-up costs associated with business ventures and development in rural Alaska, companies are not willing to invest or risk large sums of capital in the villages. Under the present system, the Native corporations are limited in their ability to finance business ventures or participate in the development of fledgling industries. The Native corporations have fiduciary responsibility to shareholders to pursue business investments and projects which are profit-making, therefore they must minimize their involvement in high-risk business ventures. These types of incentives could be the difference between a business being profitable or losing money.

* Include the Native corporations in the development of state-wide economic development plans. State agencies do not always solicit comments or participation by Native corporations on these issues, even though they may have valuable insights and knowledge. Typically, projects go to consultants or non-profit groups who lack experience, knowledge and expertise in the area of business or general economic development. For example, the regional Native corporations, from Calista's experience, have had virtually no role in the development of the ARDORS in Alaska. This does not make sense since the ANCSA corporations are regional entities whose primary mission is to undertake business ventures, encourage economic development and function in the world of business and development.

* Implement target programs with ANCSA corporations that focus on economically depressed areas in order to improve the standards of living and provide economic development assistance to communities developing local industries such as bottomfishing, fish processing, boat building, cottage industries, tourism, and light manufacturing.

11. Provide low-cost, environmentally safe energy power to villages. Supplying electrical power to villages in rural Alaska is very expensive due to the high costs of shipping bulk fuel to remote areas to operate electric generators. Under the current utility structure, village residents have no choice but to rely on diesel generated electricity and diesel fuel for heating. Diesel fuel is expensive, the power plants require continual maintenance and maintenance and repair costs are high, fuel spills are common, fuel storage facilities are outdated and unsafe, and the cost of producing electricity is expensive. If power cost equalization did not exist in Alaska most village residents could not afford to pay for electricity and even with this program many families are unable to afford electricity. It is not uncommon for villages utilities to be running in the red and constantly on the verge of breakdown

With recent changes to the Clean Air Act, the likelihood of cuts in the state's power cost equalization program and increasing fuel prices, the cost of providing electricity to western Alaska has skyrocketed. In turn, the lack of affordable power has affected economic development in the region. Industries such as mining and fish processing, need affordable, and reliable, energy sources of power for their operations. Without reliable power they cannot and do not operate. Furthermore, villages are completely dependent on outside fuel sources for generating electricity. There is a real need in western Alaska for consolidation of power generation so that it can be produced more efficiently and more cheaply than at present with small, individual diesel generators located in each village.

The following are actions which may be taken to bring more affordable and efficient power to western Alaska:

* Investigate the use of alternative energy systems in fuels in village Alaska. Pilot projects using local resources such as hydro, coal and natural gas should be tried in communities adjacent to such resources. The cost of using diesel fuel is becoming extremely risky to the environment and expensive. Soon it may be impossible to provide non-subsidized electricity to the villages,

* Implement a study to evaluate the true cost of providing power to rural communities using existing power generation systems. The use of disel generators is very costly, environmentally unsound, and inefficient. The full cost of this energy source in rural Alaska has never been adequately documented since many costs are hidden and as yet unquantified. A good example would be fuel leakage-When no one enforces or monitors hazardous material laws regarding these spills, how are we to know what the costs will be to those communities in the future to remediate the problems often associated with fuel spills.

* Develop regional power generation and distribution facilities in rural Alaska in order to improve the level, quality and efficiency of providing power to villages. Power generation facilities and lines which interconnect and provide power to many communities from a single source should be encouraged because once in place such systems are more efficient, reliable and cost-effective than separate diesel fired generators in each village. Regional power systems are commonplace in southcentral and interior Alaska, but little has been done to develop these type of systems in western Alaska. Interconnecting lines between villages from a central generating facility would eliminate the need for individual electrical generating facilities in each village; thereby reducing maintenance costs; ensuring the provision of power from a reliable, energy-efficient central utility; providing a way to keep the cost of power to village consumers affordable; and minimizing numerous hazardous waste problems as well.

* Study the feasibility of using regional utilities, similar to Chugach Electric or Golden Valley Electric, in rural Alaska. A regional utility or electric cooperative has the potential to be more efficient in electrical utilities management and providing affordable service. The current system in which a village or traditional government or some other local entity runs the electrical plant in the village simply is not efficient or cost-effective. Every process or action is done on a piece-meal basis and there is a tremendous duplication of expenses for collecting utility bills and operating the generator plants. If feasible, a funding program using loans, grants and joint-ventures should be established to assist in the setting-up of regional utility companies/cooperatives in rural Alaska.

* Develop a statewide program promoting research, development and use of alternative energy systems, including but not limited to: small coal-fired plants, run-of-the-river hydro, shallow gas exploration, and grant programs supporting research and development. Without incentives, companies have little reason to pursue new technologies that could provide affordable power to rural Alaska. Affordable power would help make housing more affordable, provide jobs and encourage development of resources in remote areas of Alaska. It would also lead to the continued delivery of electricity to many communities after power cost equalization ceases to exist and Clear Air Act requirements close small diesel plants.

* Provide funding to study the potential of alternative energy resources (geothermal, low-head hydroelectric, run-of-the-river hydroelectric, solar, wood, coal, natural gas, and wind) to produce power in remote areas of Alaska. Funding should be made available for implementing pilot projects using developing technologies and/or alternative energy resources. Development of new technologies and alternative energy resources is the key to providing low-cost power to rural areas of Alaska.

* Consolidate existing electrical utility delivery systems. Currently there are many small electrical utilities existing in isolated villages throughout the Y-K delta. These utilities serve just one village and are able to operate only because of subsidies received from the state of Alaska as part of the state's power cost equalization program. These systems are expensive to operate, subject to frequent breakdowns, environmentally unsound, and inefficient in terms of management and providing power. Consolidation could be accomplished by providing funding and technical assistance to create and operate a regional utility management entity (company, cooperative, electric authority) which would take over the operation, maintenance and management of the various utility operations being operated independently throughout the Yukon and Kuskokwim river areas.

* Evaluate the power needs of villages and restructure the rural power system in Alaska to best meet the needs so that power can be provided to the villages at an affordable level using local resources, interties, and modern technology.

12. Establish an education delivery system which meets the specific needs of Alaska Natives in western Alaska. The existing village school systems, for the most part, do not adequately prepare students for the competition and the social and cultural lifestyle they will encounter in larger communities and urban areas. Nor do they promote pride in the Alaska Native cultures which provide the survival skills necessary to function in today's changing world and village life. The present educational system with primary and secondary schools in every village is not working. The quality of education in village schools is declining rather than improving, while the cost of providing education in the villages is escalating.

The following actions should be considered as a way to improve education in village Alaska:

* Evaluate the effectiveness of bush schools to prepare students to compete at the college or university level or complete vocational training.

* Examine the benefits to be gained from establishing a regional junior and senior high schools in regional centers, rather than locating a junior/senior high school in every village. Larger schools can provide more variety in classes, offer different levels of instruction (special education, gifted classes, culturally adapted classes), attract better quality teachers, and operate more cost-effectively. Also, students will be in a learning environment that will prepare them for the environment they will encounter when they attend college or voc-tech schools.

* Continue Head Start and other early childhood development programs in elementary schools in the villages. Elementary education should continue at the local level because children should remain at home during the formative years developing culturally and personally within the family and village society.

* Establish a Vista or Peace Corps type program, similar to Teachers for America now operating in the lower 48 states. The Department of Education must look at alternative methods for attracting dedicated teachers into the rural communities and provide these teachers with incentives to stay in the communities. One way to do this is to provide forgiveness benefits to teachers who stay and teach in the villages for five years or more.

13. Plan and implement a statewide program for building a regional transportation system (i.e., roads, airstrips, ports) in economically depressed areas of Alaska. The State of Alaska must focus on building a transportation system which links economically depressed regions of the state to more prosperous areas of the state or even within a region. Sometimes just connecting villages provides certain opportunities because of the expanded markets created by united villages. The state's present transportation system is woefully inadequate because it does not facilitate the movement of goods and provide easy, convenient access to remote areas with resource development potential.

The transportation needs of village and rural Alaska are very different from the needs of Railbelt towns or large cities like Anchorage, Juneau and Fairbanks. Villages and rural areas of Alaska should not have to compete for the same pot of money as these other parts of the state. In the future, if the state is to grow, it must begin to expand its rural transportation system. An improved transportation system would aid resource development and help resource transportation costs and reliance on air services for moving people and goods between villages and to and from other parts of the state.

Specific actions which should be taken to improve the state's infrastructure system in undeveloped areas of Alaska include:

* Prepare and implement a statewide transportation plan for economically depressed areas of Alaska which identifies priorities and provides for development and construction for roads, landing strips, ports, and loading facilities within or near communities which have commercial, industrial, recreational or resource development potential.

* Build local interconnecting roads between villages. For example, villages along the middle Kuskokwim could be connected by a local road system from Aniak. Such a system would allow goods and heavy freight to be brought into Aniak by barge and then transported by local vehicles to nearby villages. A road system would reduce the need for these villages to import everything they need by air freight and would be the most direct means of reducing transportation costs for goods into these communities.

14. Stimulate village economies and promote economic development in economically depressed regions of the state. Attracting industry and economic development into economically depressed areas, such as western Alaska, should be a primary goal of both the state and federal government as a means of creating jobs. Creative, innovative, and long term programs are going to be needed to attract private industry into these areas of the state. Private industry and development businesses must have a reason to come to these areas and their economic risks in investing in rural communities must be minimized.

Mining is an industry that can be adaptable to the lifestyle of the Alaska Native because it is an industry where work is done outdoors and jobs can be scheduled on a rotating basis, thereby allowing individuals to still continue subsistence activities but also have a paying job which can support a family. Development of infrastructure systems for western Alaska can be phased in over a period of time so that the costs are incremental and not excessively burdensome to the state or federal government.

A commitment by the state and federal government would show that the state is sincere in supporting the development of natural resources at least as far as these areas of the state are concerned. In turn, infrastructure systems aid the Native corporations in attracting investors into rural areas of the state. A cooperative effort is needed if natural resources in western Alaska are to be successfully developed. So long as the costs of infrastructure development and site preparation remains uneconomic there will be little exploration or development of natural resources in remote areas such as the Calista region.

Incentives which have been successfully used in other states or in the past in Alaska include: tax incentives such as reduced capital gains taxes; increased tax deductions for investment in infrastructure or natural resource exploration activities; long-term, low-interest development loans; accelerated amortization schedules; state funding for roads, airstrips and other infrastructure; enterprise zones; and investment credits for tax purposes. These same types of incentives should be considered for encouraging economic growth and development in rural Alaska.

All incentives should be designed to encourage industries and businesses to build, joint venture, support or do business with village businesses, Native corporations, and village residents. Programs and incentives which are implemented should do the following:

* Identify most depressed villages and concentrate on providing incentives to make these villages attractive to outside industry and businesses.

* Make existing village resources attractive (improve sewer and water systems in coastal villages so fish processing facilities can be built and capitalize on the growing bottomfish industry).

* Use manpower available in the villages (ensure that local residents have adequate skills and education to work in local industries).

* Make locally produced products competitive.

* Give sole source contracts on state and federal projects to businesses based in the villages.

* Reduce expense to developers of projects by funding road construction or building of transportation facilities such as docks, airstrips and landing facilities to haul goods in and out of a community.

* Provide low-interest loans, with forgiveness benefits if the project succeeds, for development of high risk industries such as mining, commercial fishing or light-manufacturing.

* Provide loan guarantees on projects in rural Alaska, so that banks and others may be more willing to loan money for development ' projects in rural areas.

* Restructure tax laws to provide tax breaks to businesses and companies investing or engaging in business in economically depressed areas. Tax incentives are a proven way to aid Alaska Natives (i.e., the NOL tax provisions saved several Native corporations from bankruptcy and gave others much needed cash to keep operating or invest in profitable business ventures. Without the NOL's, several corporations would not have survived).

Specific actions which could be taken to promote economic development and assist economically depressed areas of Alaska include the following:

* Promote and support the creation of service-related industries and light manufacturing businesses in Alaskan villages on a scale suitable or compatible for each community. The state of Alaska, via the Department of Commerce and Economic Development, should educate the business community about the untapped potential and the benefits of encouraging business and economic development in rural Alaska.

* Implement programs and policies using economic development grants, long-term low-interest loans, long-term purchase agreements for goods and commodities produced in economically depressed areas, service contracts, tax incentives and moratoriums, utility subsidies, assistance with infrastructure costs through the sale of bonds or other financing. Assistance and incentives would have to be long term to give businesses an opportunity to amortize their investment, recapture startup costs, establish a solid market, and learn the business operation.

* Develop a federal and state supported statewide infrastructure plan to build roads and transportation links between communities and provide clean water, affordable power and safe sanitation facilities in villages in rural Alaska that are economically depressed or that are without such facilities and services. Safe, reliable infrastructure systems are necessary if industries are to be attracted to rural Alaska. For example, fish processing plants need a reliable, safe, clean water supply to process fish. Mining companies need roads into mining areas so that they can transport supplies, move equipment, and move the product to market. Currently, many areas of Alaska with sizable mineral deposits go undeveloped because there are no power grids, airstrips, ports, roads or other means of access into the area.

* Develop special loan, grant and revolving fund programs for funding infrastructure, pilot projects, and business ventures in severely depressed areas, such as the Calista region. Entities such as the Alaska Energy Authority, Alaska Industrial Development Authority, or the Small Business Administration could act as the administrative agencies for such programs. Assistance could be in the form of grants, long-term, low-interest loans, utility or infrastructure subsidies, technical assistance and other services to companies and businesses which pursue economic development in economically disadvantaged regions of Alaska. It must be recognized that businesses and companies will need financial support and/or incentives to go to remote or depressed areas of the state.

* Promote natural resource exploration on federal, state and private lands. Much of the state of Alaska still remains unexplored or tested in terms of mineral and oil and gas potential. Private businesses need a receptive political climate if they are to be attracted to the state to do exploration work. Alaska has a reputation of being anti-development. If natural resource development is to continue in the future, this image must be dispelled.

* Finance exploration on federal, state and Native-owned lands. By identifying and establishing the quality and quantity of Alaska's mineral resources it will be easier to attract mineral companies into the state to develop the resources. Exploration on state and federal lands has a spill-over effect; adjacent Native corporation lands may also become attractive for mineral exploration if Native-owned land is known to be of similar geologic character or proximal to major deposits. Natural resource development can lead to well-paying jobs near villages. However, if there is to be resource development in areas such as the Calista region, action must be taken to make exploration and development attractive to private industry.

* Promote and encourage the development and expansion of industries, such as the bottomfish industry, in economically depressed areas, in particular, western Alaska. This can be accomplished by: maintaining the use of special catch quotas (exclusive fishing rights and quotas); giving tax-breaks/incentives to processsing facilities locating in these areas; granting low-interest loan programs to businesses, corporations and individuals for boats, processing facilities, equipment and start-up costs. Already these kinds of policies are beginning to work and need to be continued and expanded.

Villages in western Alaska, which have been guaranteed rights to a specific amount of the pollack catch (CDQ's), have become very attractive places for investing in the bottomfish processing industry. Major trawling and processing companies have developed partnerships with western villages to harvest and process the fish granted to these communities under the new allocation system for bottomfish. Prior to the establishment of the quotas, these communities previously had little or no economic base. They now have a commodity to sell and develop. The commercial fishing industry is a natural industry to promote in the villages because many village residents are already commercial and subsistence fisherman. The commercial fishing industry also lends itself naturally to the traditional lifestyle of Alaska Natives. This single program has the potential to bring millions of dollars into villages that only a year ago had no hope in terms of economic development. Similar programs for halibut, cod, herring, crab and other fish species should be considered.

* Promote and encourage the development of mariculture and aquaculture in Alaska. This has the potential to provide both needed jobs and a new protein source to the villages.

* Expand the limited entry program for commercial salmon fishing to allow Alaska Native fishermen to enter into the commercial salmon, herring, or halibut fishing industry. Commercial fishing is one of the few profitable economic activities that individuals in Alaska can enter. However, the prohibitive cost of permits keeps many Alaska Natives from commercial fishing because they cannot afford to buy a permit and gear, and they have little means of obtaining financing for purchasing a permit.

15. Assure that the value and integrity of the Alaska Native Claims Settlement Act is maintained. The Alaska Native Claims Settlement Act was meant to be the vehicle by which Alaska Natives would become economically self-sufficient. It's success has been limited. The Native corporations have spent years and millions of dollars trying to implement the settlement act and obtain their entitlements under the terms of the settlement. The money given to the Native corporations under the settlement was used primarily for implementing the settlement and correcting inconsistencies and inequities resulting from the language incorporated into the Alaska Native Claims Settlement Act. This is especially true for village corporations. The Alaska Federation of Natives and individual Native corporations have had to go to Congress to obtain legislative changes to ANCSA to make it more equitable and ensure that Alaska Natives would get what was promised to them under ANCSA.

Once again, the settlement act must be examined and amended so that Native corporations can achieve the greatest benefit from and control their lands received under the settlement act, The following technical changes should be made to ANCSA:

* Promote the use of land exchanges to fulfill the terms of ANCSA and ensure that Alaska Natives get a fair and just land settlement. Many land exchanges are pending and should be approved or at least elevated to a level that the issue of land exchanges is once again reviewed keeping in mind the original purpose of ANCSA and looking at these exchanges as an option or opportunity to meet these original goals. The land settlement has proven to be less than equitable for a variety of reasons cited in earlier testimony and the 1985 study on ANCSA. Land exchanges can be used to realign ANCSA land selections so Native corporations receive land more suitable for subsistence activities and economic development.

* Allow Native corporations to exchange Native-owned lands for lands more useful for subsistence activities and with greater development potential. The land selection process created an artificial pattern of land use and ownership that doesn't reflect the true needs of Alaska Natives. Village corporations had to select lands far from areas of traditional use. These lands are of little use for subsistence because they are too far away from the villages; they have little subsistence value; and they usually have little or no natural resource potential. In essence, the land is of minimum value, yet it is supposed to be the cornerstone for economic development for Natives corporation.

A second inequity in terms of the ANCSA land selections is that artificial boundaries and barriers affected land selection patterns. In some places, withdrawal areas for village selections were shrunk by coast lines or meridian boundaries which shrank the sie of a township from 36 sections to six sections. This resulted in many Calista village corporations having smaller withdrawal areas then other villages. Villages were limited to selecting lands only within a contiguous township area around the village, yet the normal pattern of use along the rivers was contrary to the requirement to make selections within the withdrawal areas. This has resulted in villages owning land inland from the rivers and coast which is not easily accessible nor of great value to the village. In more developed areas of the state with road connections, this was not a problem because the land has development potential. However, in the Calista region these lands are of little value except for subsistence activities and in some areas it is even doubtful if the lands have any subsistence value.

Village corporations such Eklutna, Ninilchik, Hoonah, Seldovia, Klukwan, Kotzebue and other more urban villages have been much more successful because of their proximity to transportation facilities; their lands have high economic development potential; or they own substantial surface resources, such as timber. The small rural villages typical of western Alaska are floundering at best and if policies and regulations are not implemented to make things easier in terms of managing their lands and corporations, bankruptcy will be inevitable.

* Allow village and regional corporations which are underselected to select lands outside of their original withdrawal areas so that they may select lands needed for subsistence or which may have resource development potential. The Bureau of Land Management just approved an action to allow the Village of Anaktuvak Pass to make underselections to fulfill their entitlement under ANCSA. Other villages and regional corporations should be given the same opportunity given to Anaktuvak Pass.

16. Implement a policy of joint cooperation between the state and federal governments and Alaska Natives to resolve conflicts on land and development issues. The state of Alaska has had a long standing history of conflict with the Alaska Native corporations on land and development issues. Over the years the corporations have gone to court repeatedly to protect Alaska Native interests. Recently, litigation involved subsistence rights and reapportionment of election districts. In the past, litigation concerned navigability of rivers and lakes on Native-owned lands and easements across ANCSA lands, and state protests of Native Allotment claims throughout the state. The Native corporations should not be treated as an adversary, but as landowners which deserve the same treatment and respect that is given to other landowners in Alaska.

* Work cooperatively with Alaska Natives to develop policies which foster cooperative management of land and resources on state, federal and Native-owned lands.

17. Simplify state and federal grant application and administration processes and programs. Although the state of Alaska and the federal government both have a wide variety of grant programs which could benefit Alaska Natives, much of these funds never reach Alaska Natives that are in the greatest need. Many Native organizations do not get grants because they do not have staff experienced in completing grant applications or administering grants. The bureaucratic red-tape involved in the various grant programs simply overwhelms most Native organizations or traditional governments. Because grants are an important source of money for health and social services, building and maintaining community facilities, job training programs and other activities, the state and federal governments have an obligation to ensure that Alaska Natives and their organizations have the skills to apply for, manage and fully use available grant and funding programs. In essence, what is needed is greater flexibility in grant programs directed at Alaska Natives. In order to do this the following actions can be taken:

* Provide training and technical assistance in grant writing and management to Native organizations and IRA and traditional governments.

* Amend grant regulations so that Native corporations can apply for grants to implement programs they might not otherwise get involved in, such as job training or setting up a pilot program for cottage industries in a village. As for-profit businesses, Native corporations are well suited to undertake economic development projects, make investments in business ventures or act as a business partner it makes more sense to fund economic development programs administered by them than it does to have them administered by non-profit as in many cases tribal governments. It has been said ANCSA was a "grand experiment". Let's experiment more with the "child" created by ANCSA and see if it can be the proper vehicle for positive change in some of the villages.

* Encourage the use of grant money as seed money for long-term economic development. The non-profits typically focus on social, education and health-related programs. There have been instances of non-profits supporting the adoption of policies that make it very difficult and cumbersome to initiate economic development in a region. Although, on the surface the policy may appear to provide benefits by protecting the environment, it is actually harming village residents because it is impeding natural resource development, thereby, discouraging industry or businesses from coming into the region.

* Simplify the grant application for programs benefitting Alaska Natives i.e., paperwork reduction, easier to understand applications, less cumbersome requirements for administering the grant, greater ease in implementing accounting and reporting requirements, and more flexibility for giving grants to first-time recipients.

18. Provide safe water and sanitation facilities in all communities with substandard or nonexistent systems. The need for safe sewer and water systems in many villages has hit a critical level. Inadequate and antiquated systems present in most villages in western Alaska have already resulted in one death and countless cases of illness. This is no longer a "pork barrel" funding issue; it is one of life and death. Providing safe water and sewer systems must become a number one priority for state and federal agencies responsible for providing such community services and protecting public health; safety and welfare. At a minimum, the following actions must be taken:

* Institute a program for funding workable village sewer and water projects for all communities which either do not have a water or sanitation disposal system or the system is considered substandard by modern health and safety standards and codes. Federal and state funding agencies need to collaboratively plan with villages and regional entities to identify and construct cost effective systems and implement ongoing maintenance programs to keep them operating safely.

* Implement a program which ensures that every community has continuous and consistent access to technical assistance and training for utility managers and operators. Funding on these activities must be provided at realistic and practical levels on an on-going basis.

* Insure continuance of the Indian set-aside program for wastewater facility construction and re-establish the set-aside amount for Alaska at the previous level of one percent. This money specifically should be dedicated to funding projects in Alaska.

* Convince EPA to make funding available for installing code-approved water and sewage systems and upgrading marginal systems to acceptable health and sanitation codes.

19. Protect Alaska Native Corporations from liability for hazardous wastes on corporation lands. Land in many villages have been contaminated over the years by fuel oil spills, garbage dumps, sewage lagoons, military disposal sites, and other activities. In addition, some lands transferred by the federal government to Native corporations under ANCSA have been found to be contaminated with hazardous substances. These contaminated lands present safety, economic, legal, and liability problems which significantly undermine the intent of ANCSA. They jeopardize the health and well-being of village residents, not to mention place a potentially impossible financial burden on the Native corporations and village governments if they are held responsible for conducting clean-up operations.

It is unreasonable to expect the Native corporations to clean up lands which they had no part in contaminating, and at the same time they shouldn't be held liable for spills and hazardous substances which occurred or were placed on the land before it was transferred to the Native corporations. One liability lawsuit or clean-up operation would bankrupt most Native corporations in the state. The government has an obligation to protect the Native corporations from liability claims and litigation stemming from activities for which they had no knowledge or did not participate in.

This potential for liability has caused corporations, including Calista Corporation, not to accept title to lands they selected. For example, the Kuskokwim Corporation (TKC and Calista Corporation are entitled to lands in the Red Devil area, but have refused to take conveyance to these lands in spite of their mineral potential because of the potential presence of hazardous materials left on the lands from historic mining activities. Under the current strict liability laws, if Native corporations takes title to these lands, the corporation could be held liable for any future cleanup associated with these lands. A clean-up of this magnitude is beyond the financial capabilities of TKC or Calista Corporation. So long as these liabililty laws remain in effect, the liability risks are too great for Native corporations to accept.

The following actions should be taken to address the problem of hazardous wastes on Native-owned land:

* Pass and implement legislation which requires the government to remove hazardous substances from Native-owned lands or replace contaminated lands transferred by the government to the Native corporations with land of equal value which is contaminant free.

* Pass legislation protecting Native corporations from liability under state and federal hazardous waste laws in situations where they are not responsible for the activity leading to contamination of the land or had no reason to be knowledgeable about the presence of hazardous wastes on corporation lands.

* Interim Conveyance (IC) & patent deeds need indemnification language in new deeds - maybe even reissuance of old deeds with this language. Need it at least in all past patent deeds since they are final deed to us. May not be as crucial in IC if policy of US is to indemnify.

CONCLUSION

A long term commitment to implement a comprehensive set of policies, programs and sources of funding to address the problems facing the Yupik people and other Alaska Natives is necessary to make a noticeable change. A solution to many of the Calista's region's social, health and economic problems will not be found until efforts are made to focus on and specifically help the Yupik people. Although Calista Corporation will continue to try to make changes, it will never come close to meeting the region's tremendous needs. Some power or powers greater than Calista Corporation must make a commitment to help the region and Yupik people. Without that assistance few, if any, changes will be made. A comprehensive, long-term cooperative effort by the Alaska Natives Commission, other Native organizations, and the state and federal governments is necessary to deal with the overwhelming conditions in the Calista Region.

As the Commission prepares its final recommendations to Congress, we hope the Commission will review and consider including the recommendations and actions we have outlined in this report. This Commission is one of the last sources of hope for the Yupik people and culture to survive into the next century. We hope the Commission will concentrate on making recommendations to Congress which benefit the Alaska Native people and regions of the state with the greatest needs.

It should be a goal of this Commission to recommend programs and policies which will ensure that all Alaska Natives are able to live without fear of their health, safety and economic well-being. In a perfect world there would be resources enough to take care of all Alaska Native needs. However, it is common knowledge that resources are limited. Consequently, the recommendations from the Alaska Natives Commission should ensure that the most needy are brought up to the same level with the rest of the state.

This document was ocr scanned. We have made every attempt to keep the online document the same as the original, including the recorder's original misspellings or typos.

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