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Joshua Taylor
HIS 200: Applied History
Southern New Hampshire University
Dr. Christian Strother
April 20, 2023
The Creation of Alaskan Native Corporations
In 1968, oil was discovered at Prudhoe Bay on Alaska's Arctic coast. Unfortunately, the oil would
need to be moved from Prudhoe Bay to the port of Valdez. Due to disputes such as Native land claims
led to a stalemate that had to be taken care of before any progress could be made. This was important
because Alaska was about to secure their role in the greatest economic endeavor in the history of the
United States. All of the sudden Everyone was interested in Alaska’s land, yet the land was owned by
Alaskan Natives, and they could not even organize anything, they were a third party if you will. Willie
Hensley is just one Alaskan Native who grew up in Kotzebue, a small community in northwest Alaska, 33
miles north of the Arctic Circle. Who came living off the land seeing nothing but trees and simple houses
to seeing all this building and future prospects. According to Hensley "Some are billion-dollar
corporations that are doing business constantly in all aspects of Alaska business life. Some of them are
ridiculously huge in the oil field services arena that covers the whole spectrum: mining, construction,
hotels, tourism, telecommunications, and engineering. In many ways, when you think about it, we would
never have been a part of the economy the way we are without the land claim settlement.” (Hensley,
1966) Despite having passed the Alaskan Land Claim Act in addition to the potential monetary gains to
be made from the Alaskan pipeline, Native Alaskans born on December 19, 1971 or after were not
eligible to become fellow shareholders and this is because the Federal Government was trying to
promote damage control. The Act was carried forward into the 19th and 20th centuries to limit the
federal government’s treaty obligations to Natives—no more Natives, no more obligations.
Alaska was a very desolate area which faced much turmoil and hardship yet despite all odds
many underlying events unfolded, coming together which ultimately led to the creation of the Alaskan
Native Corporations. The primary reason any of this came to fruition was oil being discovered in Purdue
Bay back in 1968. According to
Airlink Alaska
“In 1967, Atlantic Richfield began a detailed survey of the
North Slope, eventually striking oil in Prudhoe Bay in 1968, confirming the existence of large quantities
of oil and gas in the region.” (Airlink Alaska, n.d.) The oil would now need to be transported all the way
to the port of Valdez. Only when everything went through the proper channels was it found that
everyone was at a stalemate due to the fact that it was found that the Natives owned the land in
question. Congress then moved onto settle land claims yet failed to clear up any Aboriginal land claims,
still leaving hands tied. “On December 18, 1971 Alaska Native Aboriginal claims were ‘settled’ and
extinguished by an Act of Congress and signed by President Nixon through the Alaska Native Claims
Settlement Act (ANCSA), the largest land claims settlement in U.S. history.” (University of Alaska, 1971)
Now that this was accomplished it was time to move onto the actual settlement, which was the creation
of the Alaskan Native Corporations. “Under the Alaska Native Claims Settlement Act, signed into law in
1971, Alaska Natives received 44 million acres of land and $962 million. Congress also created 12
regional corporations.” (WGBH Educational Foundation, n.d.)
oil was discovered at Prudhoe Bay on Alaska's Arctic coast. Unfortunately, the oil would need to
be moved from Prudhoe Bay to the port of Valdez. Due to disputes such as Native land claims led to a
stalemate that had to be taken care of before any progress could be made. In 1971 congress passed the
Alaska Native Claims Act in order to end the disputes and proceed with the planned building of the
Trans-Alaska Pipe system. However, this feat would not be possible if it were not for some very crucial
individuals who became involved along the way. Willie Hensley was one of the prominent figures on the
scene. Hensley grew up in Kotzebue, a small community in northwest Alaska, In the early 1960s, he went
to the nation's capital to study political science at George Washington University. In 1966 Hensley
drafted a paper entitled "What Rights to Land Have the Alaska Natives: The Primary Issue," at the
University of Fairbanks. This paper he wrote was crucial in the development of the Alaskan corporations
because according to Hensley "I think that paper, for the first time, gave not only me, but many other
people, a sort of a historical, legal and policy view of what Alaska Native rights were."(WGHB Educational
Foundation, n.d.) That same year, Hensley and several other Native leaders formed the Alaska Federation
of Natives (AFN) -- an organization that would be instrumental in settling Native land claims with the
state and federal governments. Due to Hensley’s efforts he was put in contact with Commissioner Robert
L Bennet who reached out to acknowledge Hensley’s plan and to send support. This can be illustrated in
a letter to Hensley from the Commissioner from the Bureau of Indian Affairs “I appreciate your letter of
May 16 outlining the major land claim problem of the native people of Alaska. A committee has been
appointed to develop proposals for consideration which would lead to the introduction of legislation to
resolve this particularly vexing and long-standing problem.” (Robert Bennet, 1966) Thanks to Hensley’s
letter the foundation was being laid for Alaska to move forward in the proceedings. There were many
hands involved to make this all happen but another individual who was able to help bring this issue to
light was the executive Director of the Northwest Alaska Native Association, who after speaking with
Hensley via letters were able to bring the attention of the people to the problem at hand of the Native
land claims needing to be settled. According to the Director “We have your letter of July 28. You are
correct in your assumption that our meetings gave the Commissioners and staff a clear sense of the need
to proceed with a prompt and equitable settlement of the native land claims, and I agree that the
meetings helped to bring the issue more sharply into focus.” (Milton A Pearl, 1966) Due to Hensley’s
Hard work and perseverance to connect these individuals to bring this to congress so it can finally be laid
to rest and give the Alaskan Natives what they are owed rightfully. The dispute was finally resolved, and
President Richard M. Nixon signed into law the Alaska Native Land Claim Settlement Act on December
18, 1971.
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The creation of the Alaskan corporations impacted American society tremendously. Primarily this
endeavor was the greatest economic endeavor of the United States in history. Although it was successful
in lining the pockets of a lot of individuals with a lot of money and providing a living for those who came
from previous generations of Aboriginal Natives who were living in tents with nothing to eat. Although
the endeavor helped create monetary wealth for ASRC’s 13,000 shareholders and those of dozens of
other Alaska Native-owned corporations, it also came at a huge cost. Shareholders were not allowed to,
and still cannot, claim title to their ancestral lands 25 miles from the corporation’s headquarters. The
property in question was acquisitioned by the U.S. government, which established the area as a naval oil
reserve in the 1920s before later designating it the National Petroleum Reserve in Alaska. There were
strained relations between monetary wealth and lost land due to the Alaska Native Claims Settlement
Act as well. The Alaskan pipeline threatened sacred land when it was acquisition and could still
potentially pose threats to that same very land all these years later. According to David Hasemyer, Inside
Climate News at NBC “Thawing permafrost threatens to undermine the supports holding up an elevated
section of the pipeline, jeopardizing its structural integrity and raising the potential of an oil spill in a
delicate and remote landscape.” (Hasemyer, 2021). Furthermore, Michelle Egan, a spokesperson for
Alyeska, an association of oil companies’ states “permafrost changes were anticipated during the original
design of the 800-mile pipeline, which opened in 1977.” (Egan, 2021) This is fascinating because it gives
insight into the careful planning into the building of the pipeline to ensure the land is protected in every
aspect possible including climate change. “Over the past 20 years the pipeline has had some damages
done to the environment, for example the 18 oil spills accounted for according to data from the Pipeline
Hazardous Material Safety Administration (PHMSA).” (Hasemyer, 2021). In all, the pipeline has spilled
9,784 barrels of oil, resulting in $52.7 million in damages and costs according to the PHMSA records. Not
to mention BP’s long list of violations regarding safety. According to Shankman “Since entering Alaska in
2012, Hilcorp has rapidly expanded across the state, from the underwater gas fields in Cook Inlet to the
oil fields along the North Slope.” (Shankman, 2019) Just recently in 2015 there was an accident that
killed one and injured 3 others. It was a methane leak from an underwater pipeline that had not stopped
for months in 2017. Additionally, another accident occurring in 2018 with an oilfield worker being killed
at Milne Point on the North Slope. Just like the rest of the modern world with modern problems, Alaska
found itself on the brink of a new war. According to Willie Hensley, original founder of ANCSA “Just like
any other place, we have problems of alcohol and drugs. We have a lot of diabetes in our
communities. ... We've become in a lot of ways like other Americans. ... The thing that worries me in the
long run: You can't look at the settlement in strictly economic terms. We were trying, in effect, to save
our people and that meant the language, the culture and the values.” (American Experience, 2018) Willie
Hensley is now currently employed as the manager of federal government relations in Washington, D.C.,
for the Alyeska Pipeline Service Company. This is the very organization that operates and maintains the
800-mile Trans-Alaska Pipeline System. Hensley joined the company in 1997 acting as representative
between Alyeska and the Native community. Another key point was the legislation being assembled by a
mostly white Congress as an approach to an Aboriginal land and its people, it revolved around two
ideals, assimilation, and termination. This was a way of the government ending its ties to obligation with
them. According to
Alaska Public Media
“By creating more than 200 Native-owned corporations like
ASRC and seeding them with 44 million acres of land and $1 billion, the legislation was one of the most
progressive land deals ever struck between the U.S. government and Indigenous people.” (Herz, 2021)
References:
American Experience (2018)
The Impact of the Pipeline on Alaska Natives
WGBH Educational foundation
The Impact of the Pipeline on Alaska Natives | American Experience | Official Site | PBS
Bennet, R. (June, 1966)
Land claims at the grass roots:1966 letters and village newsletters
Alaskool.org
Alaskool - Hensley land claims letters - Bennett to Hensley 6/13/66
Hasemyer, D. (July, 2021)
Trouble in Alaska? Massive oil pipeline is threatened by thawing permafrost
NBC News
Trouble in Alaska? Massive oil pipeline is threatened by thawing permafrost (nbcnews.com)
Herz, N. (2021)
A historic settlement turns 50, but questions linger over whether it was fair
Alaska
Public.org
A historic settlement turns 50, but questions linger over whether it was fair - Alaska Public Media
Shankman, S. (August, 2019)
BP’s Selling Off Its Alaska Oil Assets. The Buyer Has a History of Safety
Violations.
BP's Selling Off Its Alaska Oil Assets. The Buyer Has a History of Safety Violations. - Inside Climate
News
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