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AFN shelves bid to share ANWR revenues ASRC exempt from requirement that drilling revenues from its acreage in ANWR be shared with other Native regions The Associated Press
Participants at the Alaska Federation of Natives convention shelved a resolution calling for Congress to ensure that wealth generated by any drilling in the Arctic National Wildlife Refuge is shared by all Native regional corporations in the state.
The issue had threatened to divide Native leaders before it was dropped Oct. 22 as the convention wrapped up in Fairbanks.
The proposal circulated by the Ahtna regional corporation had been the subject of intense lobbying and closed-door caucus meetings. On Oct. 22, Ahtna chief executive Ken Johns announced he was withdrawing the resolution in the name of public unity among Natives.
“We have unity and we deal with our issues internally. That’s the most important thing,” Johns said.
The resolution targeted Arctic Slope Regional Corp., which acquired 92,000 acres in the ANWR coastal plain through a 1983 land trade with the federal government. Arctic Slope stands to reap billions of dollars if the area is opened to oil drilling. ANCSA requires sharing of resource revenues Under the Alaska Native Claims Settlement Act of 1971, revenues earned from resource development must be shared between the Native regional corporations. But the agreement about sharing resource wealth contained a loophole for corporations that trade surface land for rights to what lies under the ground.
Some regional corporations protested at the time and tried to have the deal overturned, but Arctic Slope emerged the winner in arbitration. Ahtna’s resolution was expected to open old wounds between the regional corporations and arouse strong opposition from Arctic Slope.
Ahtna, which serves 1,200 shareholders in the Glennallen area, reported a $7.5 million loss in 2004 and sees the shared revenue — or 7(i) — money from ANWR development as a way to turn the small corporation around.
“If they do open ANWR, we think it should be subject to 7(i),” said Brenda Rebne, vice president of corporate affairs for Ahtna. Regional corporation leaders to address issue Some in attendance Oct. 22 said there was pressure on Ahtna not to air the issue publicly.
“We’re finding there are certain things we can deal better with behind closed doors,” said Tim Towarak, AFN co-chair and president of the Bering Straits Regional Corp.
Trefon Angasan, chair of the AFN resolution committee, agreed the annual convention was not the place to discuss the exemption, but said the issue will eventually have to be resolved by the regional corporation leaders.
“Kenny had a very effective strategy,” Angasan said. “He raised the issue and got people thinking about it and then he dropped it before it could divide the convention.”
AFN leaders said the controversy over revenue sharing will be referred to the organization’s board and the Association of Regional Corporation Presidents and CEOs for possible action. They said there would also likely be private discussions with Sen. Ted Stevens, R-Alaska.
“There seemed to be a desire to change the current practice,” Towarak said.
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