Land Swap Finalizes Exxon Valdez Cleanup: US Gets Full Conservation Control, Native Corp Gets 65K Acres for Development

This bill, officially the Chugach Alaska Land Exchange Oil Spill Recovery Act of 2025, is a highly specific, decades-in-the-making deal designed to clean up a messy land ownership situation in Alaska created by the 1989 Exxon Valdez oil spill settlement. Essentially, it authorizes a massive land swap between the U.S. government and the Chugach Alaska Corporation (a regional Native corporation) to resolve a conflict that has made conservation difficult and development nearly impossible.

The Split Ownership Headache

To understand this bill, you have to rewind to the 1990s. After the oil spill, conservation groups used settlement money to buy up surface land rights—the top layer where the trees and wildlife live—to protect the damaged areas. The problem? They often bought these rights from Village Corporations, but the Chugach Alaska Corporation still owned the subsurface rights, meaning the minerals, oil, and gas underneath. This created what’s called a “split estate” on about 241,000 acres: the government owned the surface for conservation, but Chugach Alaska had the right to drill or mine, which severely undermined the conservation goals and made it tough for the Native corporation to develop its resources as intended under the Alaska Native Claims Settlement Act (ANCSA). It’s like buying a house but the previous owner still owns the basement and can dig a tunnel through your living room to access it.

The Big Trade: Swapping Subsurface for Full Title

This Act cuts the Gordian knot by directing the Secretary of the Interior to execute a straight-up trade (SEC. 4). Chugach Alaska is offering up roughly 231,000 acres of its subsurface rights—the rights that are currently conflicting with federal conservation efforts. In return, the U.S. government will transfer about 65,374 acres of land where it holds the full title (fee simple) over to Chugach Alaska. This trade is mandatory for the Secretary once Chugach Alaska offers acceptable title (SEC. 4).

For the government, this is a win for conservation. They finally get full, clear ownership of the surface land they already paid for, ensuring those areas bought with oil spill settlement money are permanently protected without the threat of subsurface development. For Chugach Alaska, the benefit is consolidating its land holdings into areas where it owns the full title, giving it clear development potential to fulfill its economic obligations to its shareholders, which is the core purpose of ANCSA.

Real-World Impact: Who Benefits?

This bill doesn't directly affect the average person’s wallet or daily commute, but it’s a huge administrative cleanup that benefits two very specific groups. First, conservation efforts in the Prince William Sound area get finalized and secured. The 231,000 acres the government receives will be managed as part of existing federal land units, like the Forest Service or National Parks, ensuring those areas are truly protected (SEC. 4(g)).

Second, the Chugach Alaska Corporation and its shareholders gain economic clarity. Instead of owning mineral rights under protected land—rights they couldn't easily monetize without major conflict—they get over 65,000 acres of land they can fully develop. This includes specific parcels like the Kushtaka Lake Parcel and the Drier Bay Parcel, which are transferred from the Forest Service and other federal agencies (SEC. 4(e)). The legislation also allows for small exceptions, letting Chugach Alaska retain up to 209 total acres of subsurface rights for existing shareholder homesites or village development, preventing disruption to local communities (SEC. 4(d)).

In short, this isn't a bill about new spending or new taxes; it’s about fixing a decades-old, complicated land management problem. It gives the U.S. government the conservation certainty it paid for and gives a Native corporation the developmental opportunity it needs, clearing the books on a major piece of the Exxon Valdez recovery.