ALASKA NATIVE SPECIAL SECTION
50 Years of ANCSA
‘An experiment whose results are not fully realized’
By Isaac Stone Simonelli
Brian Adams
F

ifty years ago, as the Watergate scandal swirled around then-President Richard Nixon, he signed into law the Alaska Native Claims Settlement Act (ANCSA). It was the largest land claims settlement in the nation’s history and a stark departure from agreements forced on Tribes in the Lower 48.

“While each region is different, each region can point to their own localized successes. In a general sense, ANCSA stitched together the Alaska Native communities and created a shared identity that has afforded our peoples a mechanism to come together to utilize and protect our collective land and other assets for the benefit of future generations,” says Arctic Slope Regional Corporation (ASRC) President and CEO Rex A. Rock Sr.

The discovery of significant oil resources in Prudhoe Bay and the desire to bring the newly found wealth to market via what would eventually be the Trans Alaska Pipeline System created an urgency at the federal level to resolve unsettled Native claims and secure land for the project. The origins of these claims dated back to the United States’ purchase of Alaska from Russia in 1867 for $7.2 million, despite Alaska Natives’ protests that it wasn’t Russia’s land to sell.

“It would never happen if we had the ability to build that pipeline without their [Alaska Natives’] okay. That was a driving force,” says Congressman Don Young, who was sworn in two years after the passage of the legislation.

“I think it’s one of the better pieces of legislation that ever came out of Congress. I call it breakthrough legislation: instead of a reservation, it was an onset of a profit corporation. And, I think, it’s one of the greatest success stories.”

“I think it’s one of the better pieces of legislation that ever came out of Congress. I call it breakthrough legislation: instead of a reservation, it was an onset of a profit corporation. And, I think, it’s one of the greatest success stories.”
Congressman Don Young
Senator Lisa Murkowski also praised ANCSA.

“Looking back, it is incredible to realize the effort that it took to pass such a massive piece of legislation. In a time before internet, cell phones, accessible mass transportation, and communication—and in the partisan framework we are working within today—such an accomplishment might not have happened,” Murkowski says.

ANCSA did not follow the reservation system generally applied in the Lower 48, in which Native American nations were given limited Tribal sovereignty while the land they were often forced to relocate to was held in trust by the Department of Interior.

Instead, ANCSA created twelve geographical regions in Alaska and mandated the creation of twelve corresponding for-profit Alaska Native corporations (ANCs). Additionally, the legislation created more than 200 for-profit Alaska Native village corporations. All corporations were privately owned and have remained separate from publicly traded companies.

The shareholders of these corporations were required to be Alaska Natives who met a one-quarter blood quorum or fall under an exception. They were added to a corporation’s roll, which was then submitted to the Bureau of Indian Affairs.

“The historical intent of ANCSA was to move away from unsuccessful Lower 48 federal Indian policies and structures. ANCSA diverged from the Lower 48 governance triangle model that afforded Tribes economic, social, and sovereign accountability and authority over their financial strength, lands, and members under a federal trustee model,” Rock says.

“Initially, ANCSA failed to adequately address the relationships amongst and between ANCs and Tribes regarding the US Federal Government. The separation of economic accountability and land title from inherently governmental functions and sovereignty caused a rift between Alaska Native corporations and Alaska Native Tribes for decades. Only now are we seeing an effort to minimize discord and focus on a more united Alaska Native community.”
Rex A. Rock Sr.
President/CEO
ASRC
A meeting of the Alaska Native Brotherhood.

Ahtna, Incorporated

Group of people
A meeting of the Alaska Native Brotherhood.

Ahtna, Incorporated

The Alaska Native Brotherhood was founded in 1912.

Ahtna, Incorporated

The Alaska Native Brotherhood
The Alaska Native Brotherhood was founded in 1912.

Ahtna, Incorporated

Ahtna joined the Alaska Native Brotherhood in 1954.

Ahtna, Incorporated

Group of people
Ahtna joined the Alaska Native Brotherhood in 1954.

Ahtna, Incorporated

Millie Buck, Ruby John, Lisa Nicolai, and Donna Murphy Pennington.

Ahtna, Incorporated

Group of woman
Millie Buck, Ruby John, Lisa Nicolai, and Donna Murphy Pennington.

Ahtna, Incorporated

“From a corporate perspective, ANCSA did not mire down the institutions it created with the shackles of federal trusteeship; yet it did not convey sovereignty to Alaska Native corporations or their land holdings.”

The purpose of the Act was the conveyance of land for social and economic well-being, explains Young. ANCs selected more than 44 million acres of land and received about $1 billion in compensation for lost lands.

“Maybe the biggest thing that the land claims in Alaska represents is the deviation from the United States norm in how they treat indigenous ownerships,” says internationally renowned Alaska Native artist Perry Eaton, who was the founding president and CEO of the Alaska Native Heritage Center, served on the Koniag board for more than fifteen years, and spent seventeen years as the CEO of Alaska Village Initiatives, among other endeavors.

It makes ANCSA one of the largest social experiments in the 20th century, Eaton says. The Act ended up forwarding the concept of economic integration instead of the social integration placed on Tribes in the Lower 48.

“The different model was not only built on a westernized corporate front, but it was also built on the ownership of ancestral and indigenous lands,” Bristol Bay Native Corporation President and CEO Jason Metrokin says.

Ahtna, Incorporated Chairman Ken Johns, who was a senior in high school at the time ANCSA was passed, says the lands selection process for Ahtna—which ended up being more than 1 million acres of surface and subsurface rights—was a vital step in ensuring the economic and cultural wellbeing of the newly formed corporation’s shareholders.

Early Leaders, Traditional Lands
While lands were selected by early Alaska Native leadership, even fifty years later not all of that land has been conveyed to the corporations.

“We haven’t received all our entitlement yet. That’s been a very slow process,” Johns says.

About 36 million of the promised 44 million acres have been conveyed. Ahtna alone is waiting on about 180,000 acres of land to be transferred over. Other corporations unknowingly selected federal lands that were contaminated, which further delayed conveyance.

“Some of the land they chose, because it was in the proximity of their selection, was actually ex-military sites,” Young says. “And I’ve been fighting the battle ever since: either we clean it up, or we transfer it to the corporations without any liability.”

A 2016 Bureau of Land Management report identified 920 contaminated sites conveyed to ANCSA landowners, based on data collected by the Alaska Department of Environmental Conservation and several federal agencies.

“It’s important to recognize the work of Senator Ted Stevens and Congressman Young at the time when ANCs were first established. They were our seat at the table. They were advocating on behalf of Alaska Native people, and our rights, and our land base, alongside those early leaders,” Metrokin says. “They were our champions while we were developing our own champions.”

Hector Ewan speaks at an annual meeting.

Ahtna, Incorporated

Hector Ewan speaks at an annual meeting.

Ahtna, Incorporated

Annual meeting
Lilian Boston during the ANCSA land selection process.

Ahtna, Incorporated

Lilian Boston with a group of people
Lilian Boston during the ANCSA land selection process.

Ahtna, Incorporated

Senator Stevens reflected on his role in the development of ANCSA in a 1991 piece published in the Tundra Times:

“ANCSA was my baptism of fire as a Senator from Alaska… With my experience working in the Department of the Interior and with the Statehood Act, and my faith in the determination and unity of purpose of Alaska’s Native people, I believed from the beginning that a settlement could be achieved… My memories of the Congressional action as ANCSA took shape aren’t of a battle as much as they are of long hours of tough, hard negotiating, often two steps forward and one step back.”

In the fifty years since the passing of ANCSA, ANC voices have grown stronger.

“We’ve come into our own after fifty years. We have the ability to create a seat at the table, whether it’s in Washington D.C. or down in Juneau,” Metrokin says, adding that he is still appreciative of the work Alaska’s delegation does in the interest of Alaska Natives.

Current leadership at many ANCs are quick to pass credit back to those early leaders who laid the foundations they now stand on.

“I really give 100 percent credit to the elders in our area that provide that leadership to us,” Johns says. “I’ve always said that we were pulled from the fish camp and run into the corporate boardroom. That is truer than most people believe.”

In the early days of Bristol Bay Native Corporation, all its directors were commercial fishermen and women, Metrokin says.

“They weren’t opposed to hard work. They were very entrepreneurial. And, they weren’t shy about getting their way,” Metrokin says.

Rock agrees with both Johns and Metrokin.

Ruby John.

Ahtna, Incorporated

Ruby John
Ruby John.

Ahtna, Incorporated

“The visionary leadership executed by the plumbers, electricians, and carpenters that comprised early ANC leadership empowered ANCs to prioritize and emphasize the value of an education,” Rock says. “The sustained evolution of our leadership is focused on constantly growing the knowledge base and experiences of our future generations.”

Rock says that the same cultural qualities that sustained Alaska Native people for thousands of years have allowed them to succeed in a corporate setting.

“Our eternal drive to serve, provide opportunities, protect our families and communities—as well as the wisdom to acquire expertise and the determination to forge new boundaries—drove our success,” Rock says.

Harry John, Christine Craig, Robert Marshall, and Henry Bell.

Ahtna, Incorporated

Group of speakers
Harry John, Christine Craig, Robert Marshall, and Henry Bell.

Ahtna, Incorporated

Stumbles and Evolutions
But it hasn’t been all smooth sailing: there have been plenty of bumps in the road over the last fifty years. Some village ANCs didn’t make it, a 13th regional corporation was created and subsequently failed, and ANCSA has been updated multiple times.

“Hindsight is always 20/20. There have been a number of amendments to ANCSA over the past fifty years that have improved the Act,” Murkowski says.

She also points out that there are many more amendments that still need to be made.

“As we approach the fifty-year anniversary of the Act, this is a discussion I would like to help facilitate with leaders and stakeholders in Alaska to help improve the Act for the next fifty years,” Murkowski says.

Rock explains that the “beauty of ANCSA” is that it continues to evolve.

“Initially, ANCSA failed to adequately address the relationships amongst and between ANCs and Tribes regarding the US Federal Government. The separation of economic accountability and land title from inherently governmental functions and sovereignty caused a rift between Alaska Native corporations and Alaska Native Tribes for decades. Only now are we seeing an effort to minimize discord and focus on a more united Alaska Native community,” Rock says.

Some of the most significant amendments to ANCSA came in 1988, though they didn’t take effect until 1991, leading to them commonly being called the 1991 Amendments. These changes, among other things, afforded ANCs the ability to expand shareholder eligibility through a process known as open enrollment.

The amendment was necessary for the “preservation and perpetuation of birth-right assets, cultural identity, and the sheer opportunity to survive as Alaska Native peoples,” Rock says.

“Consistent with our Iñupiaq values, ASRC was the first corporation to exercise its option to enroll those born after December 18, 1971 and provide those enrollees with the same rights and benefits as the original enrollees,” Rock says.

“Without these amendments, there would be generations of Alaska Natives disenfranchised from their region, assets, and the contemporary bond shareholder status provides Alaska Natives. Although not all the regions have exercised this option, that is one more upside to ANCSA’s potential: self-determination.”

Ahtna’s first annual meeting.

Karen Fredrick

Ahtna’s first annual meeting.

Karen Fredrick

Ahtna’s first annual meeting
The 1991 amendments also prevented the sale of ANC shares. When ANCSA passed, it stipulated that shares can only be passed on to certain relatives as gifts or through wills, and this remains true today. However, it was originally intended that, starting in 1991, shareholders would be able to sell their shares. But the overall profitability and success of the ANCs was not where Congress had anticipated it to be after two decades, leading to the continued ban on the selling of stocks and ANC exemptions from some federal securities laws.

While 1991 marked significant amendments taking effect, smaller changes to the legislation have happened somewhat regularly.

“It was a negotiation made between Alaska Native leaders and the federal government fifty years ago,” Metrokin says. “There’s potential that future amendments can be made.”

One issue that Ahtna’s Johns is fighting to address is that Alaska Natives don’t have sovereignty over their subsistence lifestyle on their lands.

“We weren’t given the authority to manage our own lands in regard to hunting and fishing,” John says, noting that the original Ahtna board had selected lands based on their people’s subsistence needs. “That’s one of the high priorities for Ahtna.”

“This was a contentious issue at the time that could not be adequately resolved prior to passage. It was meant to be resolved after passage, but fifty years later Alaska Native people are still fighting for the right to practice their traditional subsistence ways of life,” Murkowski says.

Early Ahtna leaders Herb Smelcer and Christine “Yazzie” Craig.

Ahtna, Incorporated

Early Ahtna leaders Herb Smelcer and Christine “Yazzie” Craig.

Ahtna, Incorporated

Group of people
Economic Powerhouses
ANCSA was the foundation for more than ANCs. It was—in some ways—a new foundation for the Alaska economy, a powerhouse piece of legislation that impacted every Alaskan.

“The passage of ANCSA enabled the State of Alaska to move forward with its development of the oil and gas resources within Prudhoe Bay and ancillary fields. ANCSA single-handedly allowed for significant economic growth in the State of Alaska,” Rock says.

“Absent a land claims settlement, the State of Alaska would not have the infrastructure, skilled labor force, or economic foundation it has today. ANCSA meant security and certainty for the State of Alaska and the United States of America.”

In 2018, Regional ANCs distributed more than $217 million in dividends to shareholders and paid more than $705 million in Alaska payroll, according to the ANCSA Regional Association.

“Alaska Native Corporations have succeeded economically by incorporating Indigenous cultural values into their mission and operations,” Murkowski says. “With a core mission of supporting Native shareholders, ANCs are also an integral part of Alaska’s economy and have helped the State weather economic downturns.”

This economic activity takes many forms including investing in Alaska-based companies, providing employment to Alaskans, and bringing dollars back from the Lower 48 through business interests developed Outside.

Robert Marshall.

Karen Fredrick

Portrait of Robert Marshall
Robert Marshall.

Karen Fredrick

“The corporate structure created an immediate and sustained mechanism which provides employment opportunities for Alaskans, increases Alaskan buying power, and allows for the ANCs to reinvest their capital into growing their businesses,” Rock says. “This growth allows for money to remain in our communities supporting local vendors and small businesses. The collective economic impact has been positive for all Alaskans.”

The establishment of a revenue sharing system between the regional and village corporations that was built into the original Act contributed to how the success of ANCs has “spread the wealth” throughout the state.

“Revenue sharing provisions help improve economic conditions in rural villages and create jobs in areas with few employment opportunities,” Murkowksi says. “Mobilization through the ANCs, the tribal governments, and regional nonprofits have led to greater visibility of Alaska Native issues and challenges. With each of these different types of institutions fulfilling different roles, Alaska Native people are better able to meet community needs, such as improving rural infrastructure and protection of natural resources, including subsistence.”

The provisions focused on distributing revenue derived from natural resources among the corporations to help balance the issue of some corporations being able to select lands in more resource rich areas.

“This is a resource-oriented state and always will be,” Young says. “I don’t care if it’s fish, timber, mining, oil, or whatever it is, the idea that you’re going to make a living off something else is not realistic.”

Roy Ewan.

Ahtna, Incorporated

Portrait of Roy Ewan
Roy Ewan.

Ahtna, Incorporated

Young, a non-voting shareholder in Doyon, points toward the vast potential for resource extraction that some ANCs have on their lands. Many ANCs in the last fifty years have become deeply invested in mineral, gas, and oil production or exploration on their lands.

Young explains that he is working on pushing back at federal regulations that limit or hamper the development of natural resources on ANC lands that were provided to the corporations for the social and economic benefit of their shareholders.

“We have such a huge piece of the land, and it is resource rich land, if particular corporations chose to go in that direction and develop those, the sky’s the limit,” says Gana-A’Yoo CEO Dena Sommer-Pedebone. “The greatest success of the Act, I feel, is the economic sustainability that it provides to Alaska Native people.”

Robert Marshall opens Ahtna’s first land claims check.

Ahtna, Incorporated

Speaker
Robert Marshall opens Ahtna’s first land claims check.

Ahtna, Incorporated

While many ANCs over the years have invested in their core industries, such as timber, oil, mining, or fishing, they have also diversified their portfolios creating jobs in construction, IT, engineering, tourism and more.

Metrokin points out that ANCs, which represent the largest private landowners in Alaska, are also an industry in and of themselves.

“We employ over 1,000 Alaskans and many more outside of Alaska. We provide opportunities for our shareholders, whether it’s employment-based, educational-based, or other services,” Metrokin says. “We are an economic driver.”

Alaska Business’ Top 10 49ers list in 2020, in which Alaskan-owned companies are ranked by revenue, was dominated by regional and village ANCs. ASRC was at the top, followed closely by Bristol Bay Native Corporation and NANA Regional Corporation. Transportation and shipping company Lynden was the only non-ANC to make the Top 5 short list.

“ANCSA has had a material impact on Alaska through the growth and development of Alaska Native corporations, and there remains significant potential,” Rock says. “As we look to the horizon, Alaska Native organizations [ANCs, Tribes, Tribal and/or nonprofit consortia] will assume meaningful roles in the economic stability and viability of our state.”

Even with measured success, ANCs must still walk the fine line of cooperating with state and federal governments without absolving them of their responsibilities to Alaska Natives, Rock says.

Christine “Yazzie” Craig.

Ahtna, Incorporated

Christine “Yazzie” Craig with man talking
Christine “Yazzie” Craig.

Ahtna, Incorporated

A Story Worth Writing
While there is plenty of optimism about the future of ANCs, Johns warns the new generation of leaders and younger shareholders about the perils of forgetting where they came from. He says it’s time that ANCs focus more on the history curriculum that its shareholders’ children receive in school.

“This is time for us, regional corporations, to tell our history,” Johns says. “It’s not the explorers. It’s not the miners. It’s not the Russians. That’s not our history. Our history extends back to a very proud nation that provided for ourselves and provided for humanity.”

He says that without knowing the history and the battles that Alaska Natives fought, it’s hard for the next generation of leaders to know what to fight for.

“I think the elders instilled in our mind that the land was the most precious gems out of this, you can lose the money, but don’t lose the land,” Johns advises.

Eaton points out that the lands conveyed to ANCs are what are known as “fee simple titled,” which in American culture serves the goal of commerce.

“Everybody knows that land values, over time, only go up,” Eaton says. “So here we are in Alaska, where that model of land movement is controlled by corporations that have a tremendous ethnic, cultural value system in place today.”

An increased pressure to monetize ANC lands, perhaps at the cost of subsistence opportunities, could be one of several points of conflict for shareholders, Eaton explains.

An Ahtna annual meeting.

Ahtna, Incorporated

An Ahtna annual meeting.

Ahtna, Incorporated

Group of people in a meeting
A member of the first Ahtna board and past Ahtna President, Christine “Yazzie” Craig signs paperwork for the land claims.

Ahtna, Incorporated

A member of the first Ahtna board and past Ahtna President, Christine “Yazzie” Craig signs paperwork for the land claims.

Ahtna, Incorporated

Signing papers
Alaska Native Claims Settlement Act check monetary awards circa 1972.(L-R) Alaska Lieutenant Governor Red Boucher; Mike Swetzof, Aleut League; Jack Wick, Koniag; Martin Olson, BSNC; George Miller, CIRI; Joe Upicksoun, ASRC; John Sackett, Doyon; Robert Marshall, Ahtna; Cecil Barnes, Chugach Alaska; Robert Newlin, NANA; Bob Willard, Sealaska; Morris Thompson, BIA; Senator Ted Stevens; Don Wright, AFN.

Department of the Interior | Ted Stevens Foundation

Alaska Native Claims Settlement Act check monetary awards circa 1972.(L-R) Alaska Lieutenant Governor Red Boucher; Mike Swetzof, Aleut League; Jack Wick, Koniag; Martin Olson, BSNC; George Miller, CIRI; Joe Upicksoun, ASRC; John Sackett, Doyon; Robert Marshall, Ahtna; Cecil Barnes, Chugach Alaska; Robert Newlin, NANA; Bob Willard, Sealaska; Morris Thompson, BIA; Senator Ted Stevens; Don Wright, AFN.

Department of the Interior | Ted Stevens Foundation

Alaska Native Claims Settlement Act
Sommer-Pedebone sees one of the greatest challenges facing ANCs at this juncture is engaging with younger generations: “Something that’s very important to the future is looking at the age demographic of original shareholders and how we can get younger generations involved in leadership.”

Reinhard Mueller, an executive with Gana-A’Yoo, points out that Sommer-Pedebone is part of a new generation of ANC leaders who were born after ANCSA came into effect and have the advantage of growing up in a world where the responsibilities and functionality of ANCs was established.

These are “leaders that could go toe-to-toe with any of her peers in any US business,” Mueller says.

Fred John Jr. and Roy S. Ewan during land selections.

Ahtna, Incorporated

Group of people
Fred John Jr. and Roy S. Ewan during land selections.

Ahtna, Incorporated

The Ahtna ANCSA land selections.

Ahtna, Incorporated

The Ahtna ANCSA
The Ahtna ANCSA land selections.

Ahtna, Incorporated

Sam George at the Ahtna ANCSA land selections.

Ahtna, Incorporated

Man pointing to a map
Sam George at the Ahtna ANCSA land selections.

Ahtna, Incorporated

Though, like any corporation, ANC leaders must think about their annual growth plan, they are also charged with taking a longer view of their responsibilities.

“We set our annual plans and our long-term plans, but we’re really thinking generations down the road. We want to be around in perpetuity,” Metrokin says.

For Bristol Bay Native Corporation—and others—2020 was one of the most challenging years they’d faced due to the widespread impacts of the pandemic.

“But it’s also been the most exciting. The world is changing at a very rapid pace, whether it’s technology or social issues, investment opportunities, or access to capital,” Metrokin says. “And we have enough of a track record of success behind us that people want to do business with us.”

While many ANCs have created strong reputations for themselves in the business world with their robust Alaska foundation and a presence outside of the state, ANCSA is still relatively young legislation.

“Along the timeline of Alaska Native history, fifty years is a short timeframe upon which to judge success. I believe we have yet to see the true potential of ANCSA realized because it is a living law that is constantly evolving,” Rock says.

“ANCSA was an experiment whose results are not fully realized to date.”