Getting Started On14(c)(3)

A Basic Guide for City andVillage Councils

State of AlaskaSean Parnell, Governor

Department of Commerce, Community, and Economic DevelopmentSusan K. Bell, Commissioner

Division of Community and Regional AffairsScott Ruby, Director

February 2012

Acknowledgments

Prepared by: Division of Community and Regional Affairs

2012 Project Manager: Keith Jost

The State of Alaska, Department of Commerce, Community, and Economic Development(Commerce) complies with Title II of the Americans with Disabilities Act of 1990. Thispublication is available in alternative communication formats upon request. Please contactthe publications technician at (907) - 269 - 4560 to make any necessary arrangements. Commerce’s Telephonic Device for the Deaf (TDD) number is 1-907-465-5437.

Table of Contents

Foreword ................................................................................................................... 1Introduction............................................................................................................... 2

I. Getting to Know 14(c)Background ....................................................................................................... 3Overview of 14(c) .......................................................................................... 3

14(c)(1), 14(c)(2), .................................................................................... 314(c)(3), 14(c)(4) ....................................................................................... 4

Looking at the language of 14(c)(3) ............................................................. 4Who receives 14(c)(3) lands? ................................................................ 4How much acreage is the city entitled to? ........................................... 4What land can the city receive under 14(c)(3)? .................................. 5

Alaska Native Claims Settlement Act ........................................................ 8

II. Doing 14(c)Why do 14(c)(3)? ............................................................................................. 9When to do 14(c)(3). ..................................................................................... 10Why 14(c) decisions are important. ............................................................ 10How to do 14(c)(3). ....................................................................................... 10

Meeting community needs ...................................................................... 11Planning for 14(c)(3) ............................................................................... 11Getting Started .......................................................................................... 11How do you make a 14(c)(3) planning map? ....................................... 1114(c)(3) Requires Mutual Agreement ................................................... 13Written Agreement is Best ..................................................................... 13Map of Boundaries ................................................................................... 13Notice of Filing Map of Boundaries ..................................................... 13Plan of Survey .......................................................................................... 14Survey and Deeds ..................................................................................... 14

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III. Special TopicsHow can the city get permission to use land before a 14(c)(3) agreement is reached?................................................. 15What liability do council members have in 14(c)(3) decisions? ................................................................................ 15What liability do cities have as landowners? ............................................ 16How about land for houses? ......................................................................... 16How do federal townsites affect 14(c)(3)? ................................................ 16How about Native allotments? ..................................................................... 17What about payment for 14(c)(3) land? ..................................................... 17What are reverter clauses? ............................................................................ 17What about other restrictive clauses? ......................................................... 17

Glossary ..................................................................................................................... 18

DCA Addresses and telephone numbers .............................................................. 20

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Foreword

This handbook is a basic guide to assist city andvillage councils, village corporations, and their staffwith Alaska Native Claims Settlement Act(ANCSA) 14(c)(3) decisions.

The handbook covers the major points a policymaker needs to understand about 14(c)(3). Tokeep this document as short as possible, many ofthe technical details of preparing and submitting a14(c)(3) proposal are not covered. If you areinterested in more technical information, we suggestreading:

The Alaska Native Foundation's (ANF)handbook Village Land ReconveyancePlanning: A Handbook on ANCSASection 14(c). It provides excellentcoverage on 14(c)(1), (2), (3), and (4).

Community Planning for ANCSA 14(c)Land Reconveyance. It provides detailedguidelines for land planners and other staffworking on 14(c)(3).

These documents were sent to your community andshould be available in the city and villagecorporation offices. Contact the Department ofCommerce, Community, and EconomicDevelopment (Commerce) for copies of bothCommunity Planning for ANCSA 14(c) LandReconveyance and Village Land ReconveyancePlanning: A Handbook on ANCSA Section 14(c).

Note As you read this document youmay find some terms that aredifficult to understand. We havehighlighted most of these termsand defined them in the glossary inthe back of the handbook.

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Introduction

ANCSA established the right of villagecorporations to lands in and around their villages.It also required village corporations to make someof this land available to individuals andorganizations who were occupying land onDecember 18, 1971.

ANCSA also required village corporations toprovide land for present needs and future

expansion of the community. The villagecorporation’s duty to transfer land for communityneeds is explained in Section 14(c)(3).

This handbook discusses Section 14(c)(3) — theland reconveyed to a city, or the “State in trust” fora future city. This is land for community expansionand public purposes such as roads, schools, clinics,community recreation, etc.

“State in trust” - what does this mean?

In unincorporated villages, ANCSA 14(c)(3) land must be transferred to the State.The State holds the land in trust until a city is established. After a city is formed,the State transfers all trust land to the new city.

The responsibility for accepting and administering municipal trust land wasassigned to the Department of Community and Regional Affairs (now theDepartment of Community and Economic Development) by State law (AS 44.33.755).The Municipal Lands Trustee (MLT) Program in the Division of CommunityAdvocacy (DCA) performs the functions required by federal and State law.

The operation of the MLT Program is guided by administrative regulation (3 AAC190.010 - 194.900). These regulations contain requirements for accepting landtransferred under ANCSA 14(c)(3).

The MLT Program consults local residents to identify ANCSA 14(c)(3) land. Thismay be through village meetings or through a representative group speaking for thevillage. The representative group is called the “appropriate village entity” (AVE).After 14(c)(3) land is conveyed to the State in trust, land management decisions aremade with advice from the local people. The Municipal Lands Trustee must receiveapproval from the AVE before making land decisions.

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I. Getting to Know 14(c)(3)

Background

Following the settlement of the continental UnitedStates by Europeans, new land laws were created.

By contrast, Russia did not settle Alaska. Theyalready had a large land base and were mainlyinterested in harvesting natural resources. In 1867,Russia sold her claim to occupy Alaska to theUnited States. In the Treaty of Cession, the UnitedStates and Russia agreed that Natives were subjectto laws and regulations of the United States.

The first Alaska land law, the 1884 Organic Act,states in part:

... the Indians or other persons in saiddistrict shall not be disturbed in thepossession of any lands actually in their useor occupation or now claimed by them butthe terms under which such persons mayacquire title to such lands is reserved forfuture legislation by Congress ... .

The Act established the difference between Nativeland policy in Alaska and the policy in the lower 48states. The United States did not move AlaskaNatives to reservations; Congress recognizedNative claims to the land. These claims remainedunsettled until ANCSA.

In the meantime, other laws were passed (NativeAllotment Act and the Homestead Act) establishingindividual land ownership for individual Natives andnon-Natives under U.S. law. The Native claimsmentioned in the Organic Act remained unsettled.Statehood was followed by State land selectionsand increased resource use, including the discoveryof oil. The need for clear ownership of the land forthe Alaska pipeline resulted in a settlement ofNative claims. When Congress passed ANCSA in1971, the land claims of the Alaska Nativesestablished more than 100 years earlier were finallysettled.

Natives, as a group, received ownership or titleto lands through transfer of title to regional andvillage corporations. However, individual villageresidents still did not have title to the land theirhomes were on, and few village governmentsowned the land used for public purposes.Congress recognized the need for land title foroccupants of village lands. To accomplish this,ANCSA provided that village corporations getownership (interim conveyance or patent) to theavailable lands and then provide title for parcelsused by qualifying individuals and organizations.

Overview of 14(c)

ANCSA provides title to individuals andorganizations through Section 14(c) of the Act.Village corporations received title to the surfaceestate; regional corporations received title to thesubsurface estate. Since 14(c) applies only tovillage corporations, individuals and organizationsreceive title only to the surface estate.

14(c) has five sections - only the first four applytoday. The four sections, described below, identifythe individuals and organizations that can receiveland from the corporation under 14(c). Theseinclude:

14(c)(1)Claims by individuals, either Natives or non-Natives, who occupied lands as of December18, 1971, for:

residences,businesses,campsites,reindeer husbandry.

The transfer of land is made without payment(consideration).

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14(c)(2)Claims by nonprofit organizations who occupiedlands as of December 18, 1971. The villagecorporation may charge or require payment forthe land. If payment is required, it must not bemore than the fair market value of the land asit existed when the organization first occupied it.The fair market value must be based on landvalue without structures or other improvements.

14(c)(3)Land needed by the city for present and futurepublic land uses.

14(c)(4)Land for airport sites and related navigationalaids and easements as they existed onDecember 18, 1971, and additional land oreasements for related services and approachzones. Title can go to the federal government,State, city, or borough.

Looking at the Language of 14(c)(3)

Who receives 14(c)(3) lands?

If the community is a city, it receives title to the14(c)(3) land. If the community is unincorporated,the State holds title in trust for the future city.

How much acreage is the city entitledto?

ANCSA originally required the conveyance of1,280 acres under Section 14(c)(3). ANILCA,passed in 1981, changed the requirement to:

...the amount of lands to be transferred tothe municipal corporation shall be no less

than 1,280 acres unless the VillageCorporation and the MunicipalCorporation or the State in trust canagree in writing on an amount which isless than one thousand two hundred andeighty acres...

The change created confusion. Some villagecorporations conveyed 1,280 acres or more to acity before 1981. Some corporations chose totransfer 1,280 acres or more after 1981 for theirown reasons (for example, mergers of villagecorporations caused some local residents to view14(c)(3) as a way to keep land in local control).

People involved with 14(c)(3) before ANILCAwas passed may continue tobelieve that the 1,280 acres requirement is still ineffect. However, the law has been changed, and aconveyance of less than 1,280 acres can be made ifboth parties agree in writing. Most 14(c)(3)conveyances are between zero and 1,280 acres.

The most important factor in determining theacreage to be transferred is the agreement of bothparties on what land is to be conveyed and for whatpurposes. Don’t get hung up on acreage. Thecourts or anyone else probably would not getinvolved in cases where the city and the corporationagree upon the land and acreage involved.

City Hall

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... as much additional land as isnecessary for community

expansion...

This is land that communities need for futureprojects and activities. As a community growsit will need land for public use.

ANCSA does not define “communityexpansion.” The city can propose land neededfor community expansion and negotiate with thevillage corporation for that land. For example,there may be an existing housing project to takecare of present needs but there are still manyyoung people in the community who will neednew housing in the future. The city maypropose this future housing site and a roadright-of-way as 14(c)(3) land.

...appropriate rights-of-way forpublic use...

A right-of-way is a right of passage overanother landowner’s ground. They include:

roads,trails,utility poles,sewer and water lines, andother public use.

Rights-of-way should include existing roads andtrails and may include future roads and trails.Refer to Community Planning for ANCSA14(c) Land Reconveyances for moreinformation on rights-of-way.

Section 14(c)(3) spells out the land to bereconveyed as:

...title to the remaining surface estate ofthe improved land on which the Nativevillage is located and as much additionalland as is necessary for communityexpansion, appropriate rights-of-way forpublic use, and other foreseeablecommunity needs,.... Provided further,that any net revenue derived from the saleof resources harvested ... shall be paid tothe Village Corporation...

Let's look at what this means:

...the remaining surface estate ofthe improved land on which theNative village is located...

Improved land may be defined as:

...the land conveyed under ANCSA to villagecorporations which is so changed from itsnatural state through valuable additions madeto the land or through regular use by theresidents of the village...(Municipal Trust Land Regulations [3 AAC190.990(5)]).

Examples of improved lands include lands with:community buildings,sewage lagoons,cemeteries,garbage dumps,water storage tanks, andsimilar public uses.

What land can the city receive under 14(c)(3)?

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Typical Community Easments and Rights of Way

...and other foreseeable communityneeds...

A foreseeable need can be seen or known inadvance. They are identified by the city andmay be agreed to by the corporation. Forexample, the community may recognize therewill be a need for a land fill. A suitable site canbe identified as a foreseeable need.

...provided further, that any netrevenues derived from the sale ofresources harvested...

If the city sells the timber or harvests othersurface resources from land received under14(c)(3), profits from the sale must go to thevillage corporation. Timber or other surfaceresources may be used for public purposes (tobuild a community hall, for example) withoutpayment to the village corporation.Remember, the regional corporation owns thegravel and other subsurface resources and thecity has no right to these resources for anypurpose without the owner’s consent.

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Who receives 14(c) land from Village Corporations?

14(c)(1): Individuals 14(c)(2): Non-Profit Organizations

Residences

ChurchesCharitable organizationsFraternitiesCivic organizations

14(c)(3): Cities or Future Cities

Businesses

Present public buildings and facilitiesForseeable community needs

14(c)(4): Federal, State or Subsistence campsites Municipal Government

AirportsAirway BeaconsNavigational Aids

Reindeer headquarters sites Related ServicesEasements to Insure Safe Approaches

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14(c)(1)Upon receipt of interim conveyance or patent,whichever comes earlier, . . . “The villagecorporations shall first convey to any Native ornon-Native occupant, without consideration, titleto the surface estate in the tract occupied as ofDecember 18, 1971, as a primary place ofresidence, or as a primary place of business, oras a subsistence campsite, or as a headquartersfor reindeer husbandry.”

14(c)(2)Upon receipt of interim conveyance or patent,whichever comes earlier, . . . “The villagecorporation shall then convey to the occupant,either without consideration or upon payment ofan amount not in excess of fair market value,determined as of the date of initial occupancyand without regard to any improvements thereon,title to the surface estate in any tract occupiedas of December 18, 1971 by a nonprofitorganization.”

14(c)(3)Upon receipt of interim conveyance or patent,whichever comes earlier, . . . “The villagecorporation shall then convey to any MunicipalCorporation in the Native village or to the State intrust for any Municipal Corporation established inthe Native village in the future, title to theremaining surface estate of the improved land onwhich the Native village is located and as muchadditional land as is necessary for communityexpansion, and appropriate rights-of-way for

public use, and other foreseeable communityneeds: Provided, that the amount of lands to betransferred to the Municipal Corporation or intrust shall be no less than 1,280 acres unlessthe Village Corporation and the MunicipalCorporation or the state in trust can agree inwriting on an amount which is less than onethousand two hundred and eighty acres:Provided further, that any net revenues derivedfrom the sale of surface resources harvested orextracted from lands reconveyed pursuant to thissubsection shall be paid to the VillageCorporation by the Municipal Corporation or theState in trust: Provided, however, the word“sale,” as used in the preceding sentence, shallnot include the utilization of surface resourcesfor governmental purposes by the MunicipalCorporation of the State in trust, nor shall itinclude the issuance of free use permits or otherauthorization for such purposes;”

14(c)(4)Upon receipt of interim conveyance or patent,whichever comes earlier, . . . “The VillageCorporation shall convey to the FederalGovernment, State or to the appropriateMunicipal Corporation title to the surface estatefor airport sites, airway beacons, and othernavigation aids as such existed on December18, 1971, together with such additional acreageand/or easements as are necessary to providerelated governmental services and to insure safeapproaches to airport runways as such airportsites, runways, and other facilities existing as ofDecember 18, 1971;”

Alaska Native Claims Settlement Act(As amended by Alaska National Interest Lands Conservation Act)

Section 14(c)

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THE GRANT OF THE ABOVE-DESCRIBED LANDS IS SUBJECT TO:

1. Issuance of a patent after approval and filing by the Bureau of LandManagement of the official supplemental plat of survey confirming the boundarydescription and acreage of the lands hereinabove granted;

2. Valid existing rights therein, if any, including but not limited to those created byany lease, contract, permit, right-of-way, or easement, and the right of thelessee, contractee, permittee, or grantee to the complete enjoyment of allrights, privileges, and benefits thereby granted to him. Further, pursuant toSec. 17(b)(2) of the Alaska Native Claims Settlement Act of December 18, 1971(ANCSA), 43 U.S.C. 1601, 1616(b)(2), any valid existing right recognized byANCSA shall continue to have whatever right of access as is now provided forunder existing law; and

3. Requirements of Sec. 14(c) of the Alaska Native Claims Settlement Act ofDecember 18, 1971, 43 U.S.C. 1601, 1613(c), as amended, that the granteehereunder convey those portions, if any, of the lands hereinabove granted, asare prescribed in said section.

II. Doing 14(c)

Why do 14(c)(3)?

Because it is required by federal law. The14(c) reconveyance requirement is set by law andgoes with the land title the village corporationreceives. Until 14(c) is addressed, there will be a“cloud” on that title. This does not mean that14(c)(3) is only the corporation’s responsibility.The city must participate in the process to arrive ata mutually agreeable proposal.

The following is an excerpt from a typical interimconveyance (IC) document granting land to avillage corporation. Section 3 of the IC documentclearly establishes the obligation of the villagecorporation to complete the 14(c) transfers.

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The village corporation should take care of its 14(c)obligation to:

Clear the “cloud” on village corporationland title. Until 14(c) is done, the villagecorporation lands might have claims on themthat cloud the title. The cloud remains on thevillage corporation's title until all 14(c) claims aresettled.

Determine land ownership so projects maybe planned. The corporation and the cityneed to know where their land boundaries arebefore projects can be planned, located, anddeveloped.

Provide for needs of shareholders andresidents. Shareholders and residents mayneed title to their land to improve theirstructures.

Do the task while most of the people in thecommunity in 1971 are still around. Some ofthe 14(c) subsections have a vesting date ofDecember 18, 1971. It may be more difficult torecall the situation that existed if many witnesseshave moved away or died.

When to do 14(c)(3)

ANCSA did not set a time frame for doing 14(c).The village corporation must take positive action tostart the process. The city must be prepared toparticipate in the process.

People generally agree that the order and wordingof 14(c) means that 14(c)(3) lands are selected fromvillage corporation land remaining after 14(c)(1) and(c)(2) claims are settled. Valid (c)(1) and (2)claimants have rights that can be protected bycourts. These claims come before any other claims.Improved land left after 14(c)(1) and (2) claims aresettled is available for 14(c)(3) selection (althoughplanning for 14(c)(3) lands can be done before(c)(1) and (c)(2) selections are finalized).

Why 14(c) decisions are important.

● Land ownership boundaries are established.Ownership boundaries will identify the locationof land individuals, non-profits, businesses, andcommunities will own.

● Corporations and cities prepare and reviewmanagement and land plans. Theseorganizations usually define their goals andpurposes to determine land needs for 14(c)(3).They then make plans to reach their goals.Structures, landfills, and other projects involvingland are important parts of the plan.

● Communities plan for their future. People inthe community organizations have a chance to“design” their future community and plan forwhat the community will be like.

How to do 14(c)(3)

Before you start the 14(c) process, keep fourimportant points in mind:

1. Section 14(c) is federal law. It cannot betaken lightly. Village corporation lands remainsubject to its provisions until the 14(c) claimsare satisfied.

2. ANCSA allowed the individuals enrolled tovillages to incorporate as either profit ornon-profit corporations. Villagesincorporated as profit corporations. So, byState law, they have a duty to make a profit fortheir shareholders. This may or could mean thevillage corporation may want to keep land in thecity or village that has commercial potential.

3. Only lands selected and conveyed bypatent, or interim conveyance, to thevillage corporation are subject to 14(c).These are the only lands where 14(c) claimscan exist.

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4. Before the city (this does not apply tounincorporated communities) acquires ordisposes of land it must have a landordinance in place. Alaska Statute 29.35.090states:

... The governing body shall by ordinanceestablish a formal procedure for acquisitionand disposal of land and interests in land bythe municipality. ...

This means that the city must, before receivingor disposing of 14(c) lands, develop a landacquisition and disposal ordinance.

Meeting Community Needs

Community members should know the powers andpurposes of cities and the village corporations tounderstand their roles in the 14(c)(3) reconveyanceprocess. Cities and corporations both serve localneeds and interests. By understanding the powersand purposes of each, the community can decidewhich one can best meet the various needs of thecommunity. For example, the city can getgovernment grants to build a fire hall but the villagecorporation cannot. On the other hand, thecorporation needs land for their businesses, such asa retail store, that a city is not normally designed toown and operate. The city and the villagecorporation will need land: the city for its fire hall;the village corporation for its store.

The status of land ownership after land decisionsare made is another major factor in deciding whichlands should be transferred. The corporation is aprivate organization and may restrict use of its lands.The city must generally allow public access to landsand facilities.

Planning for 14(c)(3)

You must have an idea of what staff time and otherresources are needed to complete the tasks of14(c)(3). In some cases existing staff can do thejob. In other cases, additional help will be needed.The Department of Community and EconomicDevelopment can provide sample documents, basemaps for the Map of Boundaries and sometechnical assistance in getting you started on the14(c)(3) settlement process.

Getting Started

To make a 14(c)(3) proposal, the city needs toknow its land needs and match them with the landavailable for 14(c). You must examine landsuitability, ownership, current land use, and plansfor community expansion. The best way tounderstand the relationship between these factors isto plot the information on a map.

How do you make a 14(c)(3) planningmap?

Base map: You need a base map to plotinformation on. An aerial photo is the best. Itshows existing structures, terrain features, and,more importantly, is the only map available at ausable scale. The Department of Communityand Economic Development can assist you ingetting a map.

Draw information on the map or on clear plasticsheets that fit over the base map (overlays).This allows you to compare several types ofinformation. Plot information on landownership, current land use, land suitability, andfuture land use.

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Land ownership: Only land received by thevillage corporation under ANCSA is availablefor selection by the city under 14(c)(3). Withinthese boundaries, there may be private landholdings such as Native allotments, patentedmining claims, Federal townsite land, andother land ownerships. These parcels are notavailable for selection.

Current land use: Identify current land usesincluding public buildings, residences,businesses, public use areas, roads and trails,and utilities.

Land suitability: Identify land suitable fordevelopment. Consider such things as:

type of soil,steepness,accessibility (how you get to it),whether it is in the flood plain or subject toerosion,

sites suitable for projects with specialrequirements, such as landfills.

These are areas where future developmentshould be located to avoid problems.

Future land use: Determine future land needsof the community and identify areas to meetthose needs. Show all planned development— private and public. If future land needs havenot been identified, now is the time to do so.Consider such development as:

new housing areas,businesses,commercial activities,community projects, androads and trails.

Using these maps, you can develop a 14(c)(3)proposal. It will identify three types of land: rights-of-way, publicly used land, and expansion land.

Map Overlay Technique

Secure base mapto table, board orwall when in use. Legend on base

map and eachoverlay to explainsymbols.

Secure eachoverlay to basemap with tape.

Registration marks oneach corner of basemap and each overlay.

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Written Agreement is Best.

A 14(c)(3) agreement should be in writing. Theagreement describes the land and the terms of thecontract. The law requires any agreement for lessthan 1,280 acres to be in writing. A writtenagreement preserves the negotiated results until thelands are deeded. This means less confusion fornew board members, council members, and staff.Once the parties have agreed on the lands to beconveyed, the land often will not be deeded until itis surveyed. The agreement allows land to be usedbetween the time of the agreement and when theland is deeded.

Map of Boundaries

The map of boundaries is a picture of the 14(c)proposal. It is prepared by the village corporationand submitted to BLM. BLM requires the villagecorporation to sign a statement that all conflictsconcerning property lines shown on the map havebeen resolved.

Notice of Filing Map of Boundaries

BLM publishes a notice in the newspaper when thevillage corporation files a map of boundaries. If14(c) claimants are not satisfied, Section 902(b) ofANILCA allows them up to one year from the datespecified in the notice to file a legal action. BLM’sresponsibility is to survey the 14(c) lands from theinstructions given on the map. BLM does notintercede for or against the 14(c) claimants. It isvery important that the city examine the map ofboundaries to be sure that the 14(c)(3) claim isaccurately shown.

Section 902(b) says:(b) Decisions made by a Village Corporation toreconvey land under section 14(c) of the AlaskaNative Claims Settlement Act shall not be subject

Rights-of-way: Include existing roads andtrails as well as roads to serve futuredevelopment. Identify proposed and existingutility lines.

Public land: Include land used for publicbuildings and public uses.

Expansion land: Include land for future publicbuildings, facilities, and services. Include landfor future housing if this has been identified as aneed that the city will meet.

Make sure the 14(c)(3) proposal does notinclude 14(c)(1) or (2) claims or other privateland.

14(c)(3) Requires Mutual Agreement

Ideally, the corporation and the city agree to ajointly planned 14(c)(3) conveyance. When thecity, or State in trust, and the corporation worktogether on the reconveyance, each benefits fromshared information on plans and capabilities.

Each party in the process can influence the finaldecision. The village corporation deeds the landover. They will not proceed until they are satisfiedwith the 14(c)(3) proposal. The city can influencethe agreement because the law requires that anyconveyance of less than 1,280 acres to be agreedto in writing by the city, or State in trust.Furthermore, any claimant, including the city, notsatisfied with the proposed 14(c) conveyance canfile suit within one year from the date that theBureau of Land Management (BLM) accepts themap of boundaries. Obviously, the 14(c)(3)process works best if the city and corporationagree. This avoids delay in transfer of land toindividuals and to the city.

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to judicial review unless such action is initiatedbefore a court of competent jurisdiction within oneyear after the date of the filing of the map ofboundaries as provided for in regulationspromulgated by the Secretary.

Plan of Survey

When BLM signs the map of boundaries itbecomes a plan of survey. The map is usuallysigned after the one year period expires and thereare no conflicts recorded in the courts. For more

information, read the BLM policy on maps ofboundaries. A copy can be obtained from BLMor Commerce. It is also in the ANF HandbookVillage Land Reconveyance Planning.

Survey and Deeds

After the survey is done and BLM approves it, thecorporation can issue deeds. This completes the14(c) process. Make sure that the deeds arerecorded at the State Recorder's Office.

14(c) Reconveyance Process

14(c)(1) & (2) City and Corporation 14(c)(4)Negotiate 14(c)(3)

14( c)(3) Agreement

Map of Boundaries

Notice of filing Map of Boundaries

Plan of Survey

Survey

Deeds

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III. Special Topics

How can the city get permission to useland before a 14(c)(3) agreement isreached?

Sometimes the city needs land before thecorporation is ready to complete a 14(c)(3)agreement. If the city needs land for a project, thecorporation can give them permission to use theland by issuing a deed or a lease.

Deed: The corporation can give the city adeed as a partial conveyance under 14(c)(3).The deed includes either a surveyed landdescription, or a metes and boundsdescription subject to a survey to be performedlater. The weakness is that if the survey donelater does not match the description, a newdeed must be issued with the properdescription. A major problem is the danger ofconveying land that is really a 14(c)(1) claim.

Interim lease: The corporation can lease theparcel to the city for the life of the project witha provision that the lease expire on a certaindate or when the final 14(c)(3) land is deededto the city, whichever comes first. When thefinal 14(c)(3) deed is issued, the leased parcelbecomes one of the 14(c)(3) parcels. This cantake place faster than issuing a deed and if a14(c)(1) claim arises, it is easier to deal with theproblem.

What liability do council membershave in 14(c)(3) decisions?

Each council member has a special duty to theresidents of the community (the people who votedthem in). They are bound by law to do what is bestfor the citizens, and not for their own specialinterests. If a council member makes a decisionbased on their own special interest, they can beheld responsible in court. However, decisionsmade based on the best information at the time thatturn out to be mistakes, are not cause for liability. Ifyou are a council member and make decisionsbased on what you believe to be the best interest ofthe residents, you have little to worry about.

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Townsite Plat

What liability do cities have aslandowners?

Under normal circumstances, the people using theland are responsible for their own safety.Landowners can be held responsible for injury topeople on their land if the landowners create adangerous situation, or if they are aware of adangerous situation and do nothing to correct it.For example, the landowner has an “attractivenuisance”. This refers to something or some placeon the land that a lot of people use or want to use.A gravel pit (attractive but potentially dangerousfor children) may be an attractive nuisance. Thelandowner is responsible for maintaining the pit in asafe condition or accepting the blame if someone ishurt. Options in this case are fencing or closing thepit or transferring the property to an organizationwith equipment and funds to close or maintain thepit.

How about land for houses?

In some communities, land for houses will be madeavailable by the village corporation to raise revenue.In other communities, the city may make public landavailable at less than market value. Or, the city cantransfer free land to a housing authority for publichousing projects. This allows more money forhousing, rather than using funds to purchase land.

How do federal townsites affect14(c)(3)?

Communities with federal townsites may find thatmany of their community land needs are met by landreceived from the federal townsite trustee. Section14(c)(3) does not say that village corporations intownsite communities have a lesser 14(c)(3)obligation. However, it is possible that the 14(c)(3)process will show that many of the land needs arealready met.

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How about Native allotments?

Native allotments are claims to the land that takeprecedence over the village corporation’s landselections, including any 14(c) claim the city wantsto make. Many Native allotment claims are notsurveyed, so the exact boundaries are unknown.When selecting land near allotments, take care notto include or come too close to the allotment.

What about payment for 14(c)(3)land?

ANCSA does not allow payment to thecorporation under 14(c)(1), allows it at thecorporation’s choice under 14(c)(2), and does notmention it under 14(c)(3) and (4). Payment for14(c)(3) land conveyed to the city has beendiscussed for some time. People arguing forpayment say the village corporation should be paidfor the 14(c)(3) land because it is some of the mostvaluable land the corporation received. Peoplearguing against payment say it is unfair to make acity pay for land that the law requires them to take.

Note: The position of the State in trust forunincorporated villages is that payment isnot required for land received through14(c)(3) from the village corporation.

What are reverter clauses?

These are conditions in the deed that require title to“revert” (return) to the previous owner if therecipient fails to do something required by the deedor does something not allowed by the deed.Section 14(c)(3) is silent on the subject, althoughmost people feel that reverter clauses can be putinto the deed only if the city agrees. Most reverterclauses in 14(c)(3) deeds require the city to use theland only for public purposes or the title reverts tothe corporation. Cities in Alaska are required bylaw to use their land for public purposes. They canonly dispose of land if they determine that it is nolonger needed for public purposes.

Note: The State in trust for unincorporatedvillages is prohibited by regulation fromaccepting reversionary (reverter) clauses orconditions attached by the villagecorporation to 14(c)(3) land.

What about other restrictive clauses?

Other statements prohibiting some actions or eventscan be put into the deed if the city agrees. Forexample, a clause prohibiting subdivision of theproperty could be placed in the deed. The onlyenforcement is through court action. All restrictivecovenants and clauses may require court action tobe enforced.

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GlossaryThe following specialized terms are used in this document. The reader may find ituseful to frequently refer back to these terms.

Acre - A unit of measurement of land that contains 43,560 square feet (about 209 feetby 209 feet).

ANCSA - The Alaska Native Claims Settlement Act; a law passed December 18, 1971.This law was passed to “settle aboriginal land claims.”

ANILCA - Alaska National Interests Lands Conservation Act; a law passed December2, 1980 for national lands which also amended sections of ANCSA.

Base map - A map that other maps and overlays refer to in a plan.

Cloud - Anything which makes it difficult to prove clear title.

Deed - Written evidence of title.

Easement - A right to land that is owned by someone else.

Estate - The interest or ownership that one has in land.

Fair market value - The price of something that is established when a willing sellermakes a deal with a willing buyer.

Federal townsite - A survey of a village by the Bureau of Land Management (BLM).Parcels in the survey are conveyed by BLM to the individuals living on the parcelsat the time of survey approval, with any remaining land going to the city.

Improved land - Land that has been changed from its original state and made morevaluable by those changes.

Interim conveyance - A document issued to the Native corporations by BLM toshow proof of land ownership until a survey can be done and patent issued.

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Lease - Written permission from the owner of land allowing another to use the land fora specific purpose and for a specific period of time.

Map of boundaries - A map showing proposed 14(c) conveyances which is sent tothe Bureau of Land Management (BLM) for survey.

Metes and Bounds - old English term meaning distance and direction.

MLT - The Municipal Lands Trustee: the person who is responsible for managing14(c)(3) land, in those villages that are not cities, that is conveyed to the state intrust for the future city.

Native allotments - Parcels of land that have been or will be conveyed to individualNatives under the 1906 Allotment Act.

Patent - The type of deed that is used when title to surveyed land is conveyed from thefederal government or from the State.

Plat - A map of an area showing survey information about that area.

Reconveyance - In ANCSA, a transfer of land to the person or agency qualifyingunder 14(c).

Right-of-way (ROW) - A right to cross land for a specific purpose.

Subsurface estate - The interest or ownership that one has in the land below thesurface and everything of value therein.

Surface estate - The interest or ownership that one has in the surface of the land andeverything of value upon it.

Title - The official record which represents ownership in property.

Vesting date - The date when a person gets a legal right to present or future enjoymentof land.

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For more information and assistanceconcerning the 14(c)(3) process contact:

Department of Commerce, Community, andEconomic Development

Division of Community and Regional Affairs

Office Locations: Anchorage (mailing)550 W. 7th Ave., Suite 1640 Anchorage, AK 99501-3510 Phone: 1-907-269-4527 FAX: 1-907-269-4525

JuneauP.O. Box 110809Juneau, AK 99811-0809Phone: 1-907-465-5550FAX: 1-907-465-4761