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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2009

Vol. 14, No. 26 Week of June 28, 2009

BLM to convey almost half-million acres

Transferring more than 150 million acres from federal to state and private ownership taking longer than originally thought

The Associated Press

The federal Bureau of Land Management has filed public notice to convey more than 554,000 acres to a handful of Alaska village and regional Native corporations.

Included are 233,000 acres near Minto, McGrath and Tanacross to Fairbanks-based Doyon Ltd.

The federal government, state and Native corporations are still negotiating millions of acres of land transfers 50 years after statehood and more than 37 years after the Alaska Native Claims Settlement Act was passed by Congress.

The conveyance process turned out to be far more complicated and expensive than expected 30-plus years ago, said Jim Mery, Doyon’s vice president for lands.

“Most of us thought most of these lands would be conveyed years ago,” he said. “People didn’t realize just what it would take for the BLM to do the job ... .There just hasn’t been enough funding.”

The BLM’s Alaska office was assigned to administer the transfer of more than 150 million acres — or 42 percent of the state’s land area — from federal to state and private ownership under the Native Allotment Act of 1906, the Alaska Statehood Act, and 1971’s ANCSA.

Massive project

The project is massive, said Bob Lloyd, acting deputy state director for conveyance management. About 65 people are on the state’s team, with other BLM staffers at field offices pitching in as needed.

Mery attributed recent conveyances to legislation sponsored by Alaska Republican U.S. Sen. Lisa Murkowski and approved by Congress in 2004.

Murkowski introduced the legislation to ensure that federal conveyances to the state and to Native corporations would be complete by Alaska’s 50th anniversary of statehood, according to Robert Dillon, Republican communications director for the Senate Energy and Natural Resources Committee, on which Murkowski holds a leadership role.

The BLM isn’t likely to meet that goal, although Murkowski’s bill drove movement. The state has received about 94 percent of entitled lands, and Native corporations have taken about 90 percent due under the settlement act.

“While there’s been progress in accelerating the pace of conveyance since 2004, there’s still a ways to go to fulfill the promises the federal government made to Alaska at statehood,” Dillon said.

Dillon said Murkowski has requested another $5 million in the BLM’s budget to finish the process.

State waiting

The state isn’t expecting to collect its full share anytime soon, said Dick Mylius with the state Department of Natural Resources. The state will hold back a few million acres’ entitlement in case prime parcels become available. Specifically, the state is eyeing the federal pipeline utility corridor paralleling the Dalton Highway and several military installations.

ANCSA granted about 44 million acres of land to Alaska Natives and provided $962.5 million in compensation.

The legislation drove creation of regional and village corporations to manage the funds and land entitlements.

Conveyances aren’t the conclusive action. Sometimes the state intercedes on Native selections, saying the BLM hasn’t addressed enough public access easements. Generally, Native corporations counter that the bureau has set aside too much land for easements.

Disputes are appealed before the Interior Board of Land Appeals in Washington, D.C., where Doyon is currently involved in six matters now, according to Mery.





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