96 Cal. Daily Op. Serv. 8367, 96 Daily Journal D.A.R. 13,961 Alyeska Pipeline Service Company Amerada Hess Pipeline Corporation Arco Pipeline Company Bp Pipelines, Inc. Exxon Pipeline Company Mobil Alaska Pipeline Company Phillips Alaska Pipeline Corporation Alyeska Pipeline Service Company Sohio Alaska Pipeline Co. Unocal Pipeline Company, and State of Alaska, Plaintiff-Intervenor-Appellee v. Kluti Kaah Native Village of Copper Center, and Copper Center Village Council Nicholas Lincoln, Individually and as President of the Copper Center Village Council Cathy McConkey Individually and as Copper Center Village Administrator Bernie Martin, Individually and as Commissioner of the Copper Center Village Tax Commission Phyllis Yazzie, Individually and as Commissioner of the Copper Center Village Tax Commission Lidia Selkregg, Individually and as Commissioner of the Copper Center Village Tax Commission
Docket: 95-36292
Court: Court of Appeals for the Ninth Circuit; November 19, 1996; Federal Appellate Court
The Ninth Circuit Court of Appeals, in case No. 95-36292, addressed an appeal by the Copper Center Village Council and officials of the Kluti Kaah Native Village of Copper Center regarding the district court's ruling that the Alaska Native Claims Settlement Act (ANCSA) extinguished Indian country status in Alaska. Consequently, Kluti Kaah Native Village was determined to lack authority to impose its Business Activity Tax on the owners and operators of the Trans-Alaska Pipeline, which traverses land near the village. The court affirmed the lower court's decision, emphasizing that the land in question is not designated as Indian country due to its designation as a federal right-of-way for the pipeline.
The background reveals that Kluti Kaah is a group of Alaska Natives, historically linked to the Ahtna band, who sought to levy a tax on the pipeline operators. The ANCSA, enacted in 1971, revoked previous reserves for Alaska Natives and extinguished aboriginal title, offering substantial financial compensation and land to newly formed Native corporations. The Act allowed these corporations to select land from designated public areas, granting them varying rights over the surface and subsurface estates, thus reshaping the legal landscape for Native land claims in Alaska.
Ahtna Inc. owns land in the Copper Center area, having merged with the Kluti Kaah Corporation in 1980, which was the recognized village corporation. The merger agreement allowed Ahtna Inc. the rights to the surface estate of the former village corporation's land but required consent from successor organizations for any subsurface mineral exploration or development. The Native Village of Kluti Kaah Council, as the successor organization, has the authority to withhold reasonable consent for development, subject to arbitration. On December 18, 1986, the Council enacted a 5% Business Activities Tax on gross receipts within a 72 square-mile area, claiming territorial jurisdiction, which includes land owned by Ahtna Inc. Approximately seven miles of the Trans-Alaska Pipeline runs through this area, initially exempt from Native land claims to preserve a corridor. However, after an agreement between Ahtna Inc. and local Native corporations with Alyeska, this exemption was revoked. Ahtna Inc. now owns the land, which is still subject to a federal right-of-way for the Pipeline.
In 1987, Alyeska filed suit against the Council and others, leading to a District Court ruling that prohibited the collection of the tax. Although the court recognized the Kluti Kaah Native Village as a Tribe, it determined the Council lacked taxation authority because the land did not qualify as Indian country under ANCSA, which eliminated such status in Alaska. The appeal focuses on whether the Kluti Kaah Tribe occupies Indian country, with the court concluding that it does not, as the land does not meet any of the three recognized types of Indian country: reservation lands, allotments, or dependent Indian communities.
In State of Alaska v. Native Village of Venetie Tribal Government (Venetie II), the court established a standard for determining the existence of a dependent Indian community, requiring that the land must be set aside for Native use and under federal superintendence. The court concluded that the disputed land, part of the Trans-Alaska Pipeline corridor, was not set aside for Natives, thus not qualifying as Indian country. The Alaska Native Claims Settlement Act (ANCSA) indicates that this land is excluded from Native selection due to its designation for utility and transportation, aimed at facilitating the construction of the Pipeline without Native land claims interference. The act was influenced by the discovery of oil, which intensified conflict over land claims, prompting Congress to resolve these issues swiftly. Following the enactment of ANCSA, the Pipeline corridor was withdrawn, and the right-of-way for the Pipeline was later granted to Alyeska. An agreement in 1974 between Alyeska and Ahtna Inc. allowed for modified rights-of-way in exchange for employment commitments. However, under ANCSA, any selection rights remained subordinate to the Pipeline's federal right-of-way. The court distinguished this case from Burlington Northern, where a right-of-way was granted after land had already been set aside for the Tribe, stating that in this instance, the right-of-way predated the Natives' property interests.
The land distribution under the Alaska Native Claims Settlement Act (ANCSA) explicitly exempted land withdrawn for Pipeline development, indicating congressional intent to grant special status to such land. Despite the Natives gaining selection rights, the right-of-way maintained this special status. Consequently, the court determined that the land in question was not designated for Native use and therefore does not qualify as Indian country. Kluti Kaah lacks the authority to impose its Business Activities Tax on Alyeska, leading to the affirmation of the district court's judgment. Circuit Judge Fernandez concurs, referencing a previous opinion that suggests Indian country is largely absent in Alaska, and reiterates that the land at issue is not Indian country. Following this ruling, Kluti Kaah Native Village was dismissed from the case, allowing the suit to continue against the Council and its officials. The definition of Indian country includes reservations, dependent Indian communities, and Indian allotments with unextinguished titles, as outlined in 18 U.S.C. 1151 (1994).
