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Alaska’s Native Corporations Excerpts from : http://www.akrdc.org/issues/nativecorporations/overview.html "Resource Development Council for Alaska, Inc." Resource Development Council for Alaska, Inc. N.p., n.d. Web. 09 Mar. 2015. <http://www.akrdc.org/issues/nativecorporations/overview.html>. Background Alaska’s homegrown Native corporations are a major component of Alaska’s economy and will become an even bigger force in the future. One look around the state and it’s easy to see the importance of Native corporations to each region they represent and the state as a whole. From Southeast Alaska and the Aleutians to Interior Alaska and the North Slope, these corporations own some of the state’s largest enterprises and are among the largest employers of Alaskans. Out of the top 49 companies in Alaska, the twelve regional Native corporations and several village corporations employ 58,000 people worldwide, with about 16,000 of those jobs here in Alaska. What that shows is a lot of the business these companies are now doing is outside Alaska, and that it brings revenue back to our state. Many of the Native corporations are engaged in the development of our natural resources, but are also diversifying their operations into other business ventures both inside and outside the state. In 1971, the U.S. Congress passed the Alaska Native Claims Settlement Act (ANCSA). ANCSA divided Alaska into 12 geographic regions. Alaska Natives then organized a “Regional Corporation” for each region. Those corporations were authorized to select lands that would become their fee simple property. Each region also contains numerous smaller “Village Corporations,” about 225 in all. The village corporations selected the surface lands around their villages. In addition, a 13th Regional Corporation was subsequently formed for non-resident Alaska Natives. Congress enacted ANCSA in order to provide a means by which Alaska Natives could derive economic benefits from the resources around them. Native corporations are the largest private landowners in Alaska, with title to 44 million acres of selected land throughout the state. Development of the resources beneath their lands offers Native corporations an opportunity to generate jobs and other economic benefits for their Native shareholders, and fulfill the implicit promise Congress made to Alaska Natives in exchange for extinguishment of their aboriginal claims. A growing number of Alaska Native corporations are fulfilling ANCSA’s economic goals by partnering with Alaska’s resource industries in development projects across the state. These partnerships are helping to make ANCSA’s economic promise to Alaska Natives become a reality. In the villages, life has been marked by seasonal jobs, high unemployment and welfare. The corporations are working to change this by developing their resources and seizing upon other economic opportunities. When Congress passed ANCSA, it recognized that the economic potential of the lands selected by Native corporations would not be uniformly distributed. As a result, ANCSA contains a natural resource revenue-sharing provision: Section 7(i). This section is intended to achieve a rough equality in assets among all Alaska Natives. The section insures that all of the Alaska Natives will benefit in roughly equal proportions from these assets. Under 7(i), 70 percent of all revenues received by each Regional Corporation from timber and subsurface estate resources must be divided among all 12 Regional Corporations in proportion to the number of Alaska Natives enrolled in each region. At least 50 percent of the revenues received must be redistributed among the Village Corporations. Section 7(i) mandates that when mineral or timber resources are developed on Native Corporation land, all 100,000 ANCSA Native shareholders benefit. More than one billion dollars has been distributed among the Regional Corporations under Section 7(i). In 2011 alone, $172 million in mining industry payments to Native Corporations were made, with over $82 million of it redistributed to other regional and village corporations. Alaska Native leaders consider the act as the biggest minority success story of the nation. The regional corporations have not only become a major economic force in Alaska’s economy, they have concerned themselves with the real economic and social needs of Alaska Natives. In the 21st Century, business is booming for Alaska's native businesses. Thanks to high commodity prices, growth in the government and commercial contracting sector, and strong returns on investments elsewhere, these corporations cumulatively reached $11.3 billion in revenues in 2010. According to this most recent available data, the 12 Regional Corporations alone earned $8.1 billion in 2010. Alaska Native Corporations listed in the Alaska Business Monthly 2010 Top 49 corporations accounted for 74 percent of the total revenue earned, 64 percent of the total Alaska jobs, and 84 percent of all the employees working for those 49 companies. Native companies make a critical contribution to the employment of all Alaskans and to the economic diversification of the state. Alaska Regional Corporation Profiles Ahtna, Inc. Ahtna, Inc., owns approximately 1,528,000 acres in the Copper River Basin in east-central Alaska. Seven of the eight villages within the Ahtna region are merged with Ahtna, Inc., and all eight are federally recognized tribes. A thirteen-member board directs corporate operations. Ahtna, Inc. has more than 1,500 shareholders, of which the majority reside in the Copper River region. Headquartered in Glennallen, Alaska, Ahtna is committed to providing a broad range of opportunities for its shareholders and preserving their culture. Ahtna has 14 operating subsidiaries that are involved in government contracting, civil and vertical construction, pipeline maintenance, environmental remediation, surveying, facilities maintenance, administrative and janitorial services, and food service contractors. The Corporation's efforts focus on growth and diversification, as well as management of its land, mineral and human resources. The Aleut Corporation The Aleut Corporation was established in 1972 under ANCSA. The corporation received a settlement of $19.5 million, and was entitled to 70,789 acres of surface lands and 1.572 million acres of subsurface estate. Voting shares of stock were issued to 3,249 shareholders. Most of the Corporation’s ANCSA selections are on the Alaska Peninsula and Aleutian, Shumagin, and Pribilof Islands, situated between Port Moller and the Alaska Peninsula and the western tip of Atka Island. The corporation owns the village site of Attu as well as numerous historical and cemetery sites between Atka and the Alaska Peninsula. The Aleut Corporation currently manages and sells sand, gravel, minerals and rock aggregates as part of its subsurface rights within the region. The Corporation’s primary areas of business are real estate, government operations and maintenance contracting, aggregate sales, and investments in oil and gas producing properties and marketable securities. Arctic Slope Regional Corporation Based in Barrow, Alaska, with administrative and subsidiary offices in Anchorage and throughout the world, Arctic Slope Regional Corporation (ASRC) has title to nearly five million acres of land abundant in natural resources in northern Alaska. In addition to oil and gas potential, ASRC lands include one of the world’s largest bituminous coal deposits. ASRC represents eight villages on the North Slope of Alaska; Point Hope, Point Lay, Wainwright, Atqasuk, Barrow, Nuiqsut, Kaktovik and Anaktuvuk Pass. This natural resource based corporation employs nearly 10,000 people, and has a growing shareholder population of 11,000. A founding principle of ASRC is respect for and preservation of the Inupiat heritage. The ASRC family of companies extends into the professional fields of engineering, venture capital and financial management, oil and gas support services, petroleum refining and distribution, aerospace engineering, consulting, civil construction, and communications. Since incorporation, ASRC’s strong financial performance enabled the company to declare dividends totaling over $500 million through 2010. Bering Straits Native Corporation Bering Straits Native Corporation (BSNC) was formed in 1972 and has approximately 6,300 shareholders. The Bering Strait's region encompasses the majority of Alaska's Seward Peninsula and the coastal lands of eastern Norton Sound. BSNC owns and manages nearly two million acres of subsurface estate of land selected by 17 Village Corporations in the region. BSNC is headquartered in Nome. Regional operations include real estate management and development, tourism, construction, mining services and sales of rock and aggregate. BSNC also has an office in Anchorage which oversees the company's government contract work under the SBA's 8(a), HubZone and small business programs. Anchorage operations also include construction and various support services for commercial clients and shareholder services. Bristol Bay Native Corporation Bristol Bay Native Corporation (BBNC) is an Alaska Native corporation established in 1972. The Bristol Bay region is in Southwest Alaska, approximately 150 miles southwest of Anchorage, and is home to the world’s largest salmon fishery. BBNC has approximately 9,000 Eskimo, Indian and Aleut shareholders living in the Bristol Bay region, across Alaska and throughout the U.S. and the world. BBNC’s board of directors is comprised of 12 members, of which all
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