Massive Alaska Land Swap: Feds Trade 65,000 Acres of Surface Land for 231,000 Acres of Subsurface Rights

The Chugach Alaska Land Exchange Oil Spill Recovery Act of 2025 is a highly specific piece of legislation designed to execute a massive land swap between the federal government and the Chugach Alaska Corporation (a Native Regional Corporation). The core of the bill is simple: the Secretary of the Interior is directed to convey approximately 65,374 acres of federal surface land to Chugach Alaska. In return, Chugach Alaska will convey about 231,000 acres of its subsurface rights to the United States. This exchange is mandatory, provided Chugach Alaska offers the land, and must be completed within one year of the law’s enactment (Sec. 4).

The Land Calculus: Trading Surface for Subsurface

Think of this like a real estate deal where the government is trying to clean up its property lines. The main goal is to consolidate federal ownership of both the surface and subsurface rights in areas previously acquired under the Exxon Valdez Oil Spill Habitat Protection and Acquisition Program (Sec. 2). For years, the government (or the State of Alaska) has held conservation easements or surface titles in these areas, but Chugach Alaska still owned the subsurface mineral rights. This legislation fixes that.

To make this happen, the feds are giving up two categories of land, mostly National Forest System land managed by the Forest Service (about 63,414 acres) and smaller parcels managed by the BLM and National Park Service (about 1,960 acres). In exchange, the U.S. gets the subsurface estate—the mineral rights—under land where the surface is already protected by conservation easements. The bill requires that the values of the lands exchanged must be equal, determined by professional appraisals, and Chugach Alaska is required to pay for all the costs associated with the exchange, including appraisals and environmental clearances (Sec. 1).

What This Means for the Chugach National Forest

If you’re someone who uses or cares about the Chugach National Forest in Alaska, this bill matters. All the subsurface land the U.S. acquires will be managed by the Secretary of Agriculture as part of the Chugach National Forest (Sec. 1). This consolidation is a big win for federal land management, as it streamlines the process: the Forest Service will no longer have to worry about a private entity potentially developing mineral resources beneath protected surface land. This makes long-term conservation planning much easier.

However, there’s a flip side: the 65,374 acres of federal land being conveyed to Chugach Alaska are removed from federal management. While the bill notes that these conveyances are subject to existing rights and easements, the surface estate itself is moving into private hands. If you’re a hiker, hunter, or recreational user, the loss of over 65,000 acres of federal surface land could mean changes to access, depending on the specific parcels involved and how the corporation chooses to manage them. For the corporation, the land conveyed will be treated as land received under the Alaska Native Claims Settlement Act, which grants them significant flexibility.

The Fine Print on Fairness and Taxes

The legislation is very particular about ensuring a fair trade. It requires the use of strict appraisal standards (Uniform Appraisal Standards for Federal Land Acquisitions) to guarantee the land values are equal. If they aren’t, the difference must be settled with cash or by adjusting the acreage (Sec. 1).

Crucially for Chugach Alaska, the bill specifies that this exchange qualifies as a “like-kind” property exchange under Section 1031 of the Internal Revenue Code. For anyone running a business or managing assets, a Section 1031 exchange is a major benefit because it allows the corporation to defer federal income taxes on any gain realized from the exchange. This tax treatment is a significant incentive baked into the deal, making the transaction substantially more valuable for the corporation (Sec. 1).