Author: Randi Gause

The small city of Seward has always been a fishing town. Our people and economy relied almost entirely on fishing and tourism. At the time of the spill, I sat on the Board as president of the Seward Life Action Council, an agency that managed a number of public health and social service programs. We witnessed how the spill not only caused irreparable damage to the ecosystem and the commercial, sport and subsistence use of our once bountiful ocean resources; but also left devastating mental health issues in its wake.

Some people lost everything. The only jobs available became those working on the spill clean-up efforts. Some refused to work on the clean-up, feeling it was wrong to draw a wage from the industry that caused the spill. Others made a fortune leasing their boats to individuals working on the spill clean-up. This created a huge divide in my small town and tested relationships – sometimes pitting father and son, brother and sister and others at odds with one another. The community was hit with a great depression, as drinking and domestic violence increased. Other communities suffered a similar fate, including in the Chugach region: Tatitlek, Chenega, Cordova, Valdez, Port Graham and Nanwalek.

Seward was the site of the otter clean-up facility, located where the Alaska Sealife Center sits today, a facility initially funded from the EVOS trust. At the time of the spill I worked across the street, and from our office we could hear the otters screaming and crying all day. I felt like weeping with them as I saw how my community was harmed by the spill and its aftermath. The litigation filed by 38,000 plaintiffs wasn’t settled until 1998, and was decreased form the initial award of $5.287 billion to a mere $507.5 million. Many, including my parents, had died before final settlement payments were made.

It’s been 31 years since the spill, and while many people are unaware, restoration work continues. Exxon paid $900 million to the Exxon Valdez Oil Spill (EVOS) Trust, which was formed in 1991. These funds were intended to be used for restoration and rehabilitation in the spill-impacted area. Roughly $200 million remains in the account today. Most of the funds have gone towards the purchase of lands in the spill area, primarily Native lands. Those lands were deeded to the federal government and had conservation easements on the surface. However, in the case of the Chugach region, the regional corporation still owned the subsurface estate creating a conflict with land management. Many of the village corporation leaders felt they had no choice other than to sell their lands, given they had few options to generate much-needed financial assistance after the devastation of the spill. The purchase of Native lands was controversial at the time, and it still is today. Instead of Native lands in Native hands, it became Native lands in government hands.

Now, to add insult to the substantial injury that the oil spill has had on the people and communities who were most impacted, the EVOS Trustee Council is pursuing a spend-down plan, which would end their obligation to manage these funds to continue the much-needed restoration and rehabilitation of the spill-impacted area. Some resources have never recovered, and the human impacts have never been adequately addressed. Local communities have not been given opportunities to be involved in order to supplement their local economies. Unfortunately, the EVOS Trustee Council system lacks meaningful public participation and transparency. Now, there are four resolutions out for public comment that only escalate this situation and further destroy trust between the people in the spill-impacted area and the trustee council.

Resolution A eliminates the requirement for an annual public meeting. That alone should get everyone’s attention, as it allows the trustees to make decisions without public participation. Resolution B allows them to fund multi-year projects without an annual budget review. Resolution C allows them to combine the research and habitat sub-accounts so they have greater flexibility in spending down the funds, and Resolution D allows them to expand the spill area so they can fund more projects where they can make a case for ecosystem connections. It’s a complete erosion of the public trust, and we need to speak up and let the council members know that we are not going to sit back and allow this to happen without a fight.

I urge you to submit comments and oppose the four resolutions that are out for public comment now, at https://www.newvisionforevos.org/evos-public-comment. The deadline to submit your comments is December 16^th. The story of the Exxon Valdez Oil Spill is one of a myriad of injustices. Let’s act now to let the agencies who make up the EVOS trustee council know that they have an obligation to do the right thing: to engage the public in the conversation and to provide full transparency in the funding process.

Josie Hickel is the Executive Vice President of Lands & Resources for Chugach Alaska Corporation. She is a lifelong Alaskan from Moose Pass, and a Chugach shareholder of Aleut descent.

In the wake of the spill, a portion of Exxon’s punitive damages included a $900 million settlement paid to the state and federal government. The EVOS Trustee Council, comprised of three state and three federal representatives, was formed in 1991 to oversee the settlement for the purposes of restoring the spill area’s injured ecosystem, including the human services that were impacted by the spill.

Since the council’s inception, much work has been accomplished toward this end. But for the Alaska Natives of the region, rather than restoring the equilibrium that once existed before the Exxon Valdez ran aground, much of the council’s efforts have exacerbated the wounds created by the oil spill. The worst of these missteps occurred when the council purchased surface estates owned by village corporations in the Chugach region without regard to the regional corporation’s subsurface estates. This resulted in split estates where federal agencies now own the surface rights and our regional corporation owns the dominant subsurface rights. This went against the intent of the Alaska Native Claims Settlement Act (ANCSA), which called for village and regional corporations to have joint ownership of lands for shared management and mutual benefit.

The council’s purchase of the surface rights in some cases created division between those Natives who supported the purchase of Native lands and those who did not, severely compounding the harm created by the EVOS. Moreover, it created a rift between Chugach and the EVOS Trustee Council, the government entity that was supposed to heal the suffering caused by the EVOS.

In 2011, the council launched a “sunset” plan to spend the remaining settlement funds down to zero. Yet, today, approximately $150 million remains in the EVOS Trust. Chugach, the Alaska Native Regional Corporation in the spill-affected area representing more than 2,800 Alaska Native shareholders, believes there is better alternative. We believe there is a way to heal the wrongs created by the spill and those that have taken place after the spill to create a lasting and enduring legacy with the remaining funds. And we’re not alone.

A Think Tank of prominent Alaskan leaders and politicians, former members or affiliates of the EVOS Trustee Council, scientists and academics, and Alaska Native leaders of every village corporation and the two regional corporations in the spill area united to create a proposal that would open the door to permanent restoration work in the spill zone. This alternative encompasses land and wildlife protection and rehabilitation, and it contains an element that has been left out of the majority of the council’s focus: the human element and a path forward that will heal the region for the people who live there.

This is one option for EVOS Trust reform, but there are many potential avenues of reform. Developing the best solution will require open, transparent dialogue with the public and leaders within the spill-impacted areas. Instead of engaging in this dialogue, the EVOS Trustee Council proposed four misguided resolutions for a 60-day public comment period. The introduction of these resolutions is yet another example of the EVOSTC circumventing its responsibilities and eroding public trust. The four draft resolutions, if approved, would only serve to advance the EVOS TC’s agenda to “spend down” the remaining EVOS funding with minimal oversight and little to no public participation. These resolutions should be postponed until meaningful public participation and review of other options can be considered by community members in the spill-impacted area who were most harmed.

The harsh reality is that oil and its harmful effects still linger in Southcentral Alaska and there remain unrecovered resources. If the council’s sunset plan is successful, the consequences of EVOS will linger long after the funds that are dedicated to restoring the injured ecosystem are gone. The money will be gone, but the oil and its impacts will remain. The EVOS settlement trust does not have to end on an unfinished note. Nor should it with your help.

We are calling upon the public to help us change the course. Visit https://www.chugach.com/evos-trust-issue/ to learn more; and join us in making your voice heard by providing comments at https://www.newvisionforevos.org/evos-public-comment. All comments are due by Dec. 16, 2020.

Following the announcement, the Board voted to appoint Brenda Dukart to the Board vacancy and serve the remaining year of McCanna’s term on the Board of Directors.

Chugach Chairman of the Board and interim President and CEO Sheri Buretta, said, “I speak for the entire Board and management team when I say how thankful we are to Mike for his service to Chugach and wish him the best on his next chapter. As a long-time Board member, Mike has contributed to Chugach’s growth and maturation. He has also nurtured CHF from its modest beginnings to an independent, self-sustaining foundation that creates educational opportunities and brighter futures for our shareholders and descendants.”

McCanna has served on the Chugach Board since 2006, and as President and Chairman of Chugach Heritage Foundation since 2007. He also served on many Board, operating subsidiary and investment committees that he has guided to successful resolution representing the Board. His superpower is his kindness and care for others, but his wisdom and willingness to share these gifts have been the catalysts for moving Chugach forward through good and bad times.

“The last 14 years have been rewarding beyond all expectations. Working toward shared goals with community-focused individuals allowed me to grow in ways I never imagined,” said McCanna. “The Chugach Board and management have built a foundation upon which the Chugach shareholders and descendants prosper. I am proud to have contributed to this work.”

This announcement follows Chugach’s successful carbon credit sales in 2020. Chugach has been the leader in bringing the California carbon credit market to Alaska and has worked hard to provide these benefits to the shareholders.

This dividend will be paid through the Chugach Natives Trust, allowing for tax-free benefits to shareholders. This Special Dividend is in addition to the November Regular Dividend of $10 per share for the second quarter. This dividend will be paid on November 20, 2020.

The diversity of Chugach’s operations and assets – including our lands and resource development projects – minimizes the risk during volatile times and allows us to preserve shareholder value and benefits. Our diversified portfolio, conservative financial management and prudent leadership build the financial resilience that allows us to weather potential impacts. Although Chugach’s consolidated financial performance will be impacted by COVID-19 in 2020, we anticipate remaining on target with budget and 2019-2023 Five-Year Plan operating profit goals.

As a reminder, we have a page on the Chugach website dedicated to COVID-19 information and prevention measures (https://www.chugach.com/covid-19-informational-site/), and we encourage you to visit this resource and our Facebook page for reliable news and updates.

I am proud and inspired by the way our people have united to face the challenges of these extraordinary times with flexibility, strength, courage – and a caring heart. As we near the holiday season, I wish you and your families health and happiness. I am grateful to each of you for being a part of the Chugach community.

Thank you,

Sheri Buretta
Chairman of the Board
Interim President & CEO

“We’re grateful to both legislators for their unwavering support and leadership on issues critical to the Alaska Native community,” said Chairman of the Board and Interim President & CEO Sheri Buretta. “Notably, both Sen. Sullivan and Rep. Young have played a key role establishing Alaska Native Trusts, protecting the Small Business Administration’s (SBA) Native 8(a) Program, fighting for COVID-19 relief for Alaska Natives and promoting self-determination in the delivery of healthcare to our people. The Board of Directors and I applaud their shared commitment to supporting the interests of our Alaska Native community.”

Just recently, three Lower 48 tribes (Tulalip, Chehalis, and Maliseet) and three Alaska Tribes (Akiak, Mt. Village, and St. Paul) filed a legal complaint disputing ANC inclusion in the Tribal Set Aside funding. Some have gone as far as to demand the resignation of Assistant Secretary for Indian Affairs Tara Katuk Sweeney for her role in supporting the CARES Act.

This action by a handful of misguided tribes is disheartening, and only serves to fracture what should be a united common purpose: To prevent COVID-19 from having a disproportionate impact on our vulnerable indigenous communities and families. Further, this legal complaint may delay the process of allocating and distributing funds, which will only serve to harm our communities.

The CARES Act is unambiguous: Alaska Native villages, Alaska Native regional corporations, and Alaska Native village corporations are “tribes” under the law. Chugach simply asks that the CARES Act be applied as it was written and mandated by Congress.

“We believe that ‘a rising tide lifts all boats,’ which is why Chugach supports relief funding for all vulnerable populations and indigenous communities across the nation,” said Chairman of the Board and Interim President and CEO Sheri Buretta. “We share a common goal with the Lower 48 tribes to ensure our communities overcome and continue to thrive through adversity, and we will continue to advocate on their behalf. We applaud Congress and Secretary Sweeney for doing the right thing by acting quickly to provide critical aid during this crisis.”

Chugach is partnering with its regional communities as they navigate the effects of COVID-19. Prior to introduction of the CARES Act, Chugach issued early shareholder and Elder dividends, and authorized establishment of a Community and Tribal Support Fund to provide financial support to the tribes and communities in the Chugach region (see Chairman’s Letter here).

The corporation also established a collaborative Chugach Regional Resource Group, comprised of leaders from village and tribal organizations within the Chugach Region. This group meets weekly and offers a forum to provide aid and best practices to prevent the spread of COVID-19, protect the health and economic well-being of people who live in the Chugach communities, and identify financial and other resources available.

As with all CARES Act funding recipients, Chugach and its regional tribes and village corporations are subject to an application review and approval process. We are working closely with fellow Alaska Native organizations and communities to strategize how the CARES Act funding will best serve our organizations, should they receive funding.

About the CARES Act:
The CARES Act clearly defines Alaska Native villages, Alaska Native regional corporations, and Alaska Native village corporations as “tribes.” Here is why:

• The legal issue is how is the term “tribal governments” is defined. Section 601(g) outlining “DEFINITIONS” provides the answer.
• Paragraph (1) provides that: “The term ‘Indian Tribe’ has the meaning given that term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)).”
• The ISDEAA definition states that “Indian tribe” means “any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) [43 U.S.C. 1601 et. seq.], which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.”
• The term “Tribal governments” in the CARES Act means “the recognized governing body of an Indian Tribe.” Therefore, “Tribal governments” are the governing body of “any Indian tribe, band, nation, or other organized group or community, including Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act.”

About Chugach Alaska Corporation:
Established in 1972 under the Alaska Native Claims Settlement Act, Chugach Alaska Corporation exists to serve the interests of the Alaska Native people of the Chugach region with a focus on profitability, celebration of our heritage and ownership of our lands. Through responsible management of our lands, businesses and assets, we provide meaningful opportunities and benefits to our community of 2,600 shareholders. Chugach fulfills its mission through a range of investments and operating businesses that provide government, facilities and energy services.