Getting to Know Alaska's Regional ANC's

Getting to Know Alaska’sRegional ANCs

Protecting culture, traditions, and lands while operating successful businesses

By Kathryn Mackenzie

Since they were established as corporations in the early 1970s, the twelve Alaska Native Regional corporations have worked tirelessly to uplift their respective regions, their shareholders, and the state’s economy as a whole. All together they reported more than $10.5 billion in revenue last year—revenue that creates opportunities; protects their lands, culture, and resources; and provides investment opportunities for the entire state and, more importantly, their shareholders.

This year Alaska Business asked each corporation’s top executives to share a little about their business, new initiatives, and what makes them unique in an already rarified group. We are grateful to every person who took the time out his or her (very) busy schedule to offer this valuable insight into the past, present, and future of the regional corporations.

In no particular order, we present a snapshot of the twelve Alaska Native Regional Corporations.

AHTNA, INC.

Ahtna’s 2,000 shareholders are mainly comprised of the Ahtna Athabascan people of the Copper River and Cantwell regions of Southcentral Alaska. “The Ahtna people take their name from the indigenous word for the Copper River, which flows through Ahtna land,” according to the organization’s website.

Michelle Anderson, president of Ahtna, shares her thoughts on Ahtna’s accomplishments, future, and the importance of preserving history and culture.

What has been or is your favorite initiative or program of 2019?

Ahtna has put an intense focus on shareholder hire and education in 2019. Ahtna made a $1 million investment in shareholder employment programs based in the eight Ahtna villages. We revamped our online scholarship program and promotion to reach more students and doubled the award amounts. We have improved our internship program and now refer to the young professionals placed throughout the company as Ahtna’s Special Forces. This is not a traditional internship offering; our Special Forces are actively engaged and participating at a management level to learn firsthand the issues, challenges, and opportunities that the Ahtna family of companies are pursuing for the betterment of our people. We have a generation to get up to speed so they are ready to step into leadership positions.

What new developments are your shareholders saying they are most excited about?

Shareholders are genuinely excited and thankful for the employment opportunities that we’ve had in our villages this summer. Our shareholders have identified education and training as a top priority and appreciate the increase in funding for college and vocational education.

To what do you attribute your success as a regional ANC?

Our corporation’s strength comes from our people and our culture. We work closely with our tribes, our

region’s village corporation, our tribal nonprofits and housing authority, and our shareholders. We believe in our vision—our culture unites us; our land sustains us; our people are prosperous.

What makes your region economically unique?

We are the only Alaska Native Region whose villages are all on the road system and the highway system crosses on either side of our region. If major infrastructure development is going to

happen in Alaska, it must go through our region. The Trans Alaska Pipeline System and the proposed LNG line are two examples of such infrastructure.

What do you hope the future holds for Ahtna?

Ahtna gave much for the development of Alaska and it is my hope that we see positive change in how our lands have been historically treated. Two of Ahtna’s traditional villages, Dry Creek and Gulkana, were

forced to move to accommodate Alaska’s early road and airport development. No compensation has ever been provided to the Ahtna people whose traditional lands were taken during this silent, sad chapter in Alaska’s history. In the early 1900s, Gulkana’s village was literally cut in half and villagers were forced to relocate

when the road was put in. In 1973, the village’s cemetery with over 100 gravesites was transferred to the State of Alaska in error and the village has been working on the return of these sacred lands ever since. We view our land protection responsibilities and fighting for our customary and traditional hunting and fishing rights as

cultural survival. Our businesses are growing and continue to give back to our shareholders and villages. We are working tirelessly to pass on our beautiful and unique culture and history, our lands, and our businesses to the next generation of Ahtna leaders.

KONIAG INC.

Koniag is owned by more than 3,800 Alaska Native shareholders. “We are the Sugpiaq-Alutiiq, a culture that has thrived for thousands of years. We make our decisions with the understanding that we will continue to prosper as a distinct people. We have traditionally relied on the land and sea for subsistence and our livelihood. We have always been sensitive to the cycles of the seasons and have recognized the need to plan ahead in order to be prepared for the future,” states the company. The Alutiiq value of caring for community is embedded in everything they do—every service, decision, and investment is a reflection of its commitment to living its culture, according to Koniag. “Koniag will continue to celebrate our traditions and values, protect our lands, advocate for our communities, and enrich the lives of our shareholders, descendants, and employees at every turn.”

Shauna Hegna, Koniag’s president, talks about the company’s bright future and expanding benefits and opportunities for the corporation’s shareholders.

What has been or is your favorite initiative or program of 2019?

One exciting initiative we’ve been able to expand on this year is our youth scholarship program. Koniag has awarded more

than 100 youth scholarships this year, allowing children and teens to attend athletic, cultural, and artistic camps. We more than doubled our investment in that area from $19,000 to $53,000 in 2019.

What new developments are your shareholders saying they are most excited about?

Everything we do at Koniag is driven by the goal of providing meaningful benefits to our shareholders and descendants. With that in mind, we’ve been able to implement two recent developments that were suggested by our shareholders. Our shareholders told us they wanted to see Koniag begin offering a benefit for our elders, and in November 2018 we distributed the very first elder benefit. Our shareholders also indicated they wanted Koniag to explore the idea of establishing a Settlement Trust, which was overwhelmingly approved by our voting shareholders at our annual meeting last fall. Our shareholders are excited about these new initiatives, and we’re glad to listen and implement their ideas.

To what do you attribute your success as a regional ANC?

We believe a rising tide lifts all boats. At Koniag, collaboration is more than just a buzzword, it is a part of everything we do. Our success is deeply intertwined with that of our

community and our people. We believe that by lifting up our communities and partnering with like-minded organizations, we have been able to realize six years of financial growth at Koniag and make our communities a better place to live.

What makes your region economically unique?

Our region is unique in many ways— from the unparalleled beauty of Kodiak Island that leads to a robust tourism industry to the strong, diverse fisheries. Koniag is fortunate to have investments within our region: the Granite Cove Quarry and the Kodiak Brown Bear Center.

What do you hope the future holds for Koniag?

The future is bright for Koniag and our shareholders. We hope to continue our track record of business growth, which is six years strong. This year, we achieved a record year in pre-tax earnings, and moving forward we hope to strengthen our subsidiaries even more and acquire companies that share our vision and values. We aim to do all this by bringing many voices to the table and focusing on our strengths to keep growing and creating positive outcomes for our region and meaningful benefits for our shareholders.

ALEUT CORPORATION

Aleut Corporation represents a region of the state known as the Ring of Fire—an area that spans 1,000 miles across the Aleutian and Pribilof Islands in the Pacific Ocean and Bering Sea. Aleut has more than 4,000 shareholders and operates seven subsidiaries

primarily in government and industrial professional services and real estate.

“The Aleut Corporation’s mission to ‘maximize dividends and opportunities for our shareholders and descendants’ is in line with the requirements of ANCSA. As such, we not only provide dividends to our 4,000 shareholders;

we also provide opportunities for social development through nonprofits that provide education funding, work training, healthcare, and other needed services from cradle to grave,” said President and CEO Thomas Mack in the company’s summer Aleutian Current newsletter.

“Our Aleut region has come together to collaboratively address issues that impact our region such as transportation, education, and broadband to mention a few. Together, we have taken steps to address cuts to the State budget, as well as write letters to support efforts which address poor air transportation in the Aleut region and cuts to the Alaska Marine Highway System.”

The corporation enhances the lives and culture of the Aleut people through The Aleut Foundation, which offers shareholders and descendants access to programs that fund education and training as well as cultural enrichment. The Aleut Foundation programs include educational scholarships, career development, community development, internships, travel scholarships, burial assistance, and vocational/technical skills training.

CHUGACH ALASKACORPORATION

Chugach Alaska Corporation’s mission is to serve the interests of the Alaska Native people of the Chugach region. The organization represents more than 2,500 Aleut, Eskimo, and Indian shareholders and works to provide opportunities through responsible management of its lands, businesses, and assets, the company says.

Chugach President and CEO Gabriel Kompkoff gave Alaska Business the rundown on Chugach’s initiatives, developments, and more.

What has been or is your favorite initiative or program of 2019?

Congress’ passage of the Chugach Lands Study Act this year is a significant milestone for Chugach, which opens the door for a potential land exchange opportunity. The Act requires the Department of the Interior and the US Forest Service to conduct a study to

identify the effects that federal land acquisitions have had on Chugach’s ability to develop its lands and to identify accessible and economically viable federal land for a possible land exchange with the corporation within the next eighteen months.

Chugach’s board and leadership team have explored a land exchange for nearly two decades and were instrumental in lobbying for the inclusion of the Act into the Senate Bill (S.47). This was a strategy envisioned by our original founders when they selected parcels of land with the intent to exchange at a future date. A land exchange is just one avenue to support the long-term lands management strategy called for in Chugach’s 100- year plan.

What new developments are your shareholders saying they are most excited about?

John Borodkin, one of Chugach’s founders, once said that he hoped the younger and current generations understood how hard he and his fellow founders fought to build our corporation—all on behalf of the Chugach community. I think he would be proud to see that members of these new generations are stepping forward and taking on more responsibility for leading the corporation into the future.

Just last year, we saw several shareholders assume key leadership positions across our organization. Former apprentice Lauren Johnson became the executive director for our philanthropic arm, Chugach Heritage Foundation. Josie Hickel was recently promoted to executive vice president of Land & Resources, where she can focus on nurturing lands-related

opportunities for the organization. Peter Andersen is a vice president for Chugach Commercial Holdings, which oversees our diverse commercial portfolio of companies. And Katherine Carlton recently moved from an apprentice role in our government division to serve the new president of Chugach Education Services and general manager of Chugach Training & Educational Solutions. Advancing the next generations of shareholder leaders is one of the cornerstones of intergenerational prosperity.

To what do you attribute your success as a regional ANC?

Chugach’s success is directly attributed to our board of directors, leadership team, and the nearly 6,000 employees who are committed to doing great work on behalf of our shareholders. I recognize that these talented professionals have a choice as to where they go to work every day, and I am grateful that they choose to work for Chugach companies. They reflect our core behaviors both at work and outside of work—building community, doing things the right way, empowering people, creating meaningful value, and leaving things better than we found them. I am proud say that it’s this collective community of employees who have charted a steady course to continue to deliver shareholder dividends and benefits.

What makes your region economically unique?

Chugach is a coastal region, whose economies are driven primarily by the fishing, tourism, and oil and gas industries. As an Alaska Native corporation, we’re charged with

creating economic benefits for shareholders through our lands, while also protecting the land for generations to come. This balance is reflected in many of our business activities, including our twenty-fiveyear partnership with Alyeska Pipeline Services Company.

Chugach’s shareholder community and the Prince William Sound village corporations were among those devastated by the Exxon Valdez Oil Spill. As a proactive measure to prevent future oil spills, Chugach and two of the region’s village corporations—the Tatitlek Corporation and the Chenega Corporation—came together to form TCC. For the last twenty-five years, through contracts with Alyeska, TCC has provided a large portion of the SERVS manpower and expertise. TCC involvement in Prince William Sound oil spill response and prevention is a natural fit, with the majority of TCC workers being from the Sound and having grown up on the water and connected, in one form or another, to Alaska’s marine environment.

What do you hope the future holds for Chugach?

Our ultimate vision is prosperity for our people. Achieving this vision means that the corporation cannot rely on a single, evergreen strategy to carry us through the next 100 years. Our business portfolio today looks much different than it did a decade ago, and it will likely look much different a decade from now. What we do know is that we must continue enlisting passionate and prudent leaders who are willing to adapt to an evolving economic and political landscape.

DOYON, LTD.

Doyon’s actions are inspired by the phrase, Dena’ Nena’ Henash: Our Land Speaks. Doyon’s lands are in Alaska’s Interior where its 20,000 shareholders have lived and worked for generations. President and CEO Aaron Schutt offers an inside look at Doyon’s current operations, new initiatives, and hopes for the future.

What has been or is your favorite initiative or program of 2019?

Doyon Drilling, Inc. (DDI) Rig 26, an extended reach drilling rig, will begin drilling operations in April 2020. Rig 26, coined “The Beast,” will be the largest land-based rig in North America, with the capability for directional drilling to a depth of at least 33,000 feet and capacity to develop resources within

a 125 square mile area. Rig 26 is part of ConocoPhillips Alaska’s long-term strategic plan to bring the capabilities of an extended reach drilling rig to the North Slope. DDI is the premier drilling contractor on the North Slope of Alaska and is a wholly-owned subsidiary of Doyon, Limited.