8.5.09 Summit - Perry - Teaming with ANCs

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Alaska produces 20% of the Nations oil reserves Alaska has the 2nd highest consumption of Spam per capita Alaska population is made up of over 15% Alaska Natives Alaska has the 1st highest consumption of ice cream per capita No, I don’t know Sarah Kodiak Brown Bear is the largest Bear And yes you are part of the food chain when you come to visit Alaska

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In 1968, the Atlantic-Richfield Company discovered oil at Prudhoe Bay on the Arctic coast, catapulting the issue of land ownership into headlines. In order to lessen the difficulty of drilling at such a remote location and transporting the oil to the lower 48 states, the best solution seemed to be building a pipeline to carry the oil across Alaska to the port of Valdez, built on the ruins of the previous town. At Valdez, the oil would be loaded onto tanker ships and sent by water to the contiguous states. The plan was approved, but a permit to construct the pipeline, which would cross lands involved in the native dispute, could not be granted until the Native claims had been settled.

With major petroleum dollars on the line, there was a new urgency for an agreement, the Alaska Native Claims Settlement Act

The Alaska Native Claims Settlement Act , commonly abbreviated ANCSA, was signed into law by President Richard M. Nixon on December 18, 1971, the largest land claims settlement in United States history. ANCSA was intended to resolve the long-standing issues surrounding aboriginal land claims in Alaska, as well as to stimulate economic development throughout Alaska.

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The settlement extinguished Alaska Native claims to the land by transferring titles to twelve Alaska Native regional corporations and over 200 local village corporations. A thirteenth regional corporation was later created for Alaska Natives who no longer resided in Alaska In return, the natives of Alaska received up to 44 million acres (180,000 km²) of land and were paid $963 million.

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Village under Regional but not governed by Village rights to surface

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Regional rights to subsurface

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Owned by “shareholders”

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7(j) (resource sharing – 70%)

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Unlike reservations cannot tax, no tribal law

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Leadership unprepared, uneducated from a western business perspective

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Corporations represent thousands of Natives

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For profit corporations were formed Boards of directors are formed

Leadership had traditional knowledge

Most without degrees or business background Invested in what they knew ◦ Natural Resources ◦ Tourism

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Many failed, most still unprofitable

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Special trust relationship with the Federal Government…government to government Model different than Tribes Alaska has no reservation system Different than traditional western business Dual purpose ◦ provide social and economic opportunities ◦ viable for-profit corporation

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Provide for needs in perpetuity

Shareholders cannot sell their shares

Alaska Natives gave up their Sovereignty

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ANCSA outlines accountability to needs of our Native people Each board determines social, cultural, educational focus Language, stories, cultural practices 2006 Scholarships $22.4 million ◦ Increase of 395% from 2005

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Social giving totaled $22 million in 2006* ◦ Up 149% from 2005

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12 regional and 3 village corporations provided data

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Internships

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Scholarships

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Training

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Community Projects & Shareholder Assistance

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Elders Benefit Program

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Elders Dividends

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Funeral and Burial Assistance

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Quarterly Dividends

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Language & Cultural Preservation Programs

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Educational Endowments

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Substance Abuse Prevention & Treatment

In 1986, legislation passed that allowed ANCs to participate in the Small Business Administration's (SBA) 8(a) program. Since then, Congress has extended special procurement advantages to 8(a) ANC firms.

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ANC-owned 8(a) companies are eligible to receive sole source government contracts in any amount. They are not subject to the $3.5 million/$5.5 million sole source caps applicable to other 8(a) firms.

13 C.F.R. 124.506 ANCs are conclusively regarded as economically disadvantaged.

13 C.F.R. 124.109(a)(2) 8(a) status is not predicated on management by socially and economically disadvantaged individuals.

13 C.F.R. 124.109(a)(4) ANC-owned 8(a) companies can have more then one 8(a) company at a time.

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Population of Alaska 686,293

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Limited resources to people and opportunities

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The only way this works is to find good partners

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Opportunities come in all sizes

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ANC/Tribes/NHO’s companies come in all sizes

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JV’s, Teams, Partnerships, Equity Positions

Questions?

Ron Perry Teya Technologies LLC Ron.Perry@Teyatech.com (907) 230-4696