Breaking: Dunleavy sues feds for $700 billion over broken promises on 1976 land exchange

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When the federal government exchanged with the State of Alaska, it didn’t really exchange it. It just took State of Alaska land and, in return, ratcheted down control of the land it supposedly gave the state.

That is the gist of a lawsuit in federal court in Washington, D.C. on Thursday against the federal government, asking for $700 billion in damages over broken contract that the state has with the feds regarding mining and resource development on state-owned land.

See related story on a separate set of lawsuits by the Pebble Partnership at this link:

Through the 1976 Cook Inlet Land Exchange, the State agreed and relinquished 700,000 acres of State land for 525,000 acres of federal land. With its newly acquired land, the U.S. was able to create Lake Clark National Park and Preserve. The state got land for mining.

The complaint, filed in the U.S. Court of Federal Claims, asks for damages for the confiscated lands, which the federal government will not allow the State to use. The EPA has tied up mining activity, which was the purpose for the land in the first place. The State estimates the value of the taken land at more than $700 billion, which will likely be among the highest sought in the Court of Federal Claims.

Last year, the state took the matter to the U.S. Supreme Court, asking the court to order the the EPA to correct its breaking of a federal permitting process.

“The Court denied that request, necessitating the filing of this action. The State also anticipates filing a separate suit in the U.S. District Court challenging EPA’s unlawful action on substantive grounds. Either of these new cases may be appealed—ultimately to the Supreme Court if necessary,” the Alaska Department of Law said.

“No other State in the union relies on its mineral riches as intensely as Alaska does. At statehood, the United States conveyed to Alaska title to the minerals in over 100 million acres of the new state’s land, with the expectation that the State would develop these mineral resources to support its economy and the wellbeing of its citizens,” said Alaska Governor Mike Dunleavy.

 “The Alaska Constitution requires that the State manage its resources for the maximum benefit of its people, and reliance on our natural resources is the cornerstone of Alaska’s statehood promise. Yet, the federal government would turn these State lands—these lands conveyed to us specifically because of their mineral value—into a de facto national park. It is wrong, and Alaska will challenge it,” Dunleavy said.

“We don’t think they have the authority to do this period—to shut down 309 square miles to any possible development and any possible mine? That’s counter to everything we know regarding State sovereignty and state authority under the U.S. Constitution,” said Alaska Attorney General Treg Taylor. “But if a court finds that they do have the authority then Alaska must be compensated for the inability to use and develop its own resources, which was the foundational basis for Alaska even becoming a state.” 

The land exchange in question, which also included a land swap for CIRI, Inc., an Alaska Native corporation, was “the largest land exchange in American history.”

The land exchange contract was a congressional amendment to the Alaska Native Claims Settlement Act. The exchange contract and the federal legislation ensured that the State secured its mineral rights and codified the exchange guarantee that the new lands “shall include mineral deposits” and the “[m]ineral deposits in such lands shall be subject to lease by the State as the State legislature may direct.”

“Negotiations between the State of Alaska, the United States government, and regional Alaska Native Corporation CIRI in 1976 resulted in a propitious land exchange that balanced conservation with the opportunity for responsible natural resource development in Bristol Bay,” said DNR Commissioner John Boyle. “This administration is blatantly rescinding that agreement specifically granting the people of Alaska this land with incredible mineral potential. It is a glaring injustice for the federal government to restrict the State of Alaska from performing our constitutionally-mandated duty to responsibly develop our resources for Alaskans. DNR believes that every proposed natural resource development project deserves to be evaluated through a robust, fair and science-based permitting process.”

“This seems to be the latest in an ongoing agenda by the federal government to re-write its past agreements with Alaska. It’s time to put a stop to these actions or at least pay for what they’re taking,” said Department of Fish & Game Commissioner Doug Vincent-Lang. “The game, fish, and other resources belong to Alaskans by agreement, by compact, and by citizenship.”

Decades after the exchange, as the State complaint lays out, the largest undeveloped copper deposit in the world was discovered on the lands the State received in the land exchange. Known as the Pebble Deposit, the State’s lands contain more than 57 billion pounds of copper, in addition to enormous quantities of gold, silver, and rare earth elements necessary to power developing energy sectors.

In spite of the United States’ guarantee, the EPA in January 2023 issued an unprecedented order (the “Final Determination”) that effectively prohibits any mining from occurring on these State-owned lands.

In the filing of this complaint, the State is protecting its interests as the landowner from unlawful federal actions, including being dispossessed of its right to manage its own property. The State is not endorsing any specific mining project and has not completed State-required permitting decisions for the mining company’s proposal. The State believes that a development proposal should be allowed to complete the State and federal permitting process before being arbitrarily shut down before these regulatory processes perform their functions.

That permitting work was ongoing when the U.S. Army Corps denied the company’s Section 404 permit. Before the State could appeal that decision and just as the State was prepared to resume its regulatory review, EPA prematurely vetoed any mining in an area much larger than the footprint of the proposed mine.

Read the complaint here.

64 COMMENTS

  1. Good Job Governor, but get the appropriate “PUBLIC OFFICIAL BONDS by Alaska State Statute ” for your appointed Staff! Also enforce those statutes on the other branches of our state government. it’s your duty under oath ART. III Section 16. We will talk about other failures in your administration after that. Liberty Ed

  2. So, the feds are finally being called out on some of their illegal land grabs? I hope that this is what I am reading!

  3. About time! I’ve watched the Feds break their word w/the State, and I’ve watched the State break their word to Alaska residents.

    Would love to see some justice.

    • Tamra. First of all, it isn’t ANWAR. It is the Arctic National Wildlife Refuge and each of those words have meaning. There’s no one to sue. And to bring you up to date, there were lease sales held two years ago and the only interested bidder was the corrupt AIEDA. Plus, though while not in the Arctic National Wildlife Refuge, the Willow project was OK’d by the Biden administration. Alaska is drilling. I’ve seen about 40 trucks with pipe heading north.

    • Because it’s another go nowhere lawsuit rife with the complaint and quotes being riddled with the reasoning it’ll be quashed? Another reason to send hundreds of thousands of State funds to DC lawyers who will get nowhere, but at least Governor Dunleavy sounds tough (and a lot like he’s auditioning for a new gig).

  4. I have been saying for 30 years that decisions to not develop resources in Alaska are not free. Whether on Federal or State land, it doesn’t matter, a decision to not develop a resource must be compensated. To often the federal agencies view them as “free” decisions. They are not free and that fact can only be established by the Congress or in the courts. We don’t have the political power to do the former so we are left with the latter.

  5. Governor Dunleavy suing on behalf of another country (foreign owned pebble), against the interests of BB fisherman and the vast majority of Alaskans is crazy.

    • Gag. The real opposition to Pebble isn’t and wasn’t the fishermen of Bristol Bay, it was Outside know-nothing environmentalists and BBNA.

      BBNA opposed it viciously, why? Because miners would have changed the demographics in SW Alaska.

      If people aren’t poor and dependent upon entitlements and BBNA, then the corrupt families running Corp would lose their well-paid do-nothing jobs.

      The only thing the average licensee is concerned about is that if there’s a mine, he may not be able to hire a crew.

  6. I’m no fan of the feds. Especially Biden feds. But this land will be here for eternity, so it needs to be managed well. Sadly the State of Alaska/AIDEA/BOG/AK DNR/etc have proven time and time again that they are incompetent and corrupt morons. So it is better to just let the feds manage land in AK.

    • Josh go home. It’s land that belongs to the state regardless of how it’s managed.
      How about I take your land because your ruining it.

      • Mark, regardless of the Governor’s wishes, State land is still subject to federal law. This lawsuit is only going to serve the DC attorneys well as they bilk a few hundred thousand out of the State for an absolute legal loser.

      • Mark. I’m not sure you are qualified to comment on this complicated issue.

      • Mark; You are incorrect, EPA and Army Corp. of Engineers have jurisdiction over the entire USA from private to government land.
        In Sackett vs EPA, the Sackett’s won because the mud puddle on there property was not contiguous (flowing water) unlike pebble, 2 major rivers, connected creeks and lakes.
        And Trump said no pebble, through Army Corp. of Engineers.

        • “EPA and Army Corp. of Engineers have jurisdiction over the entire USA from private to government land” that’s simply not true.

          • In a practical sense it sorta is. It shouldn’t be, but is. The government has given both powers far outside of their mandates.

            The EPA in particular can cripple a private development over the thinnest of possibilities.

            • The EPA can certainly cripple development, that absolutely does not mean they have jurisdiction. The Sackett case that 3rd mentions here proves that point.

              • Steve; I agree with decision SCOTUS found ruling in favor of Sackett, however the court did not rule in favor of Sackett based on EPA jurisdiction. Sackett just wanted to develop their private lot with a non contiguous (flowing water) mud puddle., totally different than ruling on a large scale open pit mine on Red Salmon spawning grounds at the head waters of a prime Salmon bearing Lake Iliamna and Bristol Bay where thousands of people have fishing permits not to mention the threat of the health of Red Salmon reproduction from Toxic Ball Milled ore and its ionized metallic’s.

                • The point remains that claiming that “EPA and Army Corp. of Engineers have jurisdiction over the entire USA from private to government land” is simply not true.

        • I’m GLAD President Trump said no Pebble…I’m GLAD the EPA on 31 January 23 did what they did! This is all about money…400 billion or more…they are not thinking about Bristol Bay and the damage that will occur…to our wildlife..our fish and our lands…NO PEBBLE MINE!!!

    • How about I decide that you feed your cat the wrong food, that your dog doesn’t get enough exercise, and that you’ve used the wrong seed for your lawn?

      The deal is this, this land is Alaskan land and it’s use is something for which Alaskans get to debate. It is not land that a Federal authority without the vested interest of living here, raising a family here, and building a future with should have anything more than a token say.

      The Feds control over 60% of Alaska. Now this is a state that’s more than twice the size of Texas. A state that is, for all intents and purposes, condemned to remain small in influence and negligible in power unless we can control our own resources and develop. Our best and brightest leave, all we get in return are service workers and more Federal employees.

      Why would or should we cede power over our lives to a Federal authority? As it stands now, ANY resident of NY state or California has more say over what happens in Alaska than ANY Alaskan

      • Very good points . Alaska is for Alaskans and the land should benefit Alaskans . Too much federal outside control .

        The permanent fund is managed by the banks that won’t fund development on the NorthSlope . It’s very hard to get financing to extract oil . Then the state and the feds are fighting you every step of the way . Prime example is Pikka , found on state land and when it goes into production , almost fifteen years of effort to get the oil flowing. This process in the late sixties took eight years . This included discovery of Prudhoe Bay and building a 800 mile pipeline.

    • “……..So it is better to just let the feds manage land in AK…….”
      Sure. As well as they manage everything else? And why, then, statehood? Why not just remain a federal territory? Well, because the feds had mismanaged fish and game so badly that they themselves realized that local management was the only way to save the resource. My guess is that you’re fully unaware of the federal disaster declarations on salmon returns in the early 1950’s and the disaster of federal wolf control poisonings (and every other critter that ate carrion).

  7. and the state similarly in exactly the same way forecloses private property development and opportunity for private wealth at whim.

  8. This land was set aside for a reason by and Act of Congress, an executive branch agency does not have primacy over an Act of Congress and the EPA can only act upon the statutes written by Congress.

    This will have to wind it’s way through the courts, but in a few years this issue will head to the highest court in the land.

    • Steve; EPA is called a regulatory agency because Congress authorizes the agency to write regulations that explain the technical, operational and legal details necessary to implement laws or disapprove or deny permits and levy fines.

      You may be correct about the Courts, appeals and United States Supreme Court, though the Supreme Court has already denied to hear the case, and with no decenting justices.

      Highly doubt EPA, Army Corp. of Engineers and Coast Guard permit denials will be overturned.

      • Your first paragraph refers to what is known as the Chevron Doctrine or Chevron Deference, this will likely be overturned when SCOTUS issues their ruling on the combined cases Loper Bright v. Raimondo and Relentless Inc. v. Department of Commerce that was heard in January.

        SCOTUS denies hearing cases for may reasons, frequently it is because there is a process that should be followed or they are setting the framework for the guidelines that should be followed, also an upcoming ruling might be a reason to send the case back to lower courts…see the upcoming ruling on the Chevron Doctrine.

        It’s OK for you to highly doubt things, or highly believe things. It won’t change the outcome either way.

  9. Touche Fortunenato as we wield our mighty saber of Bristol Bay,, But if u might have a permit for sale I shall offer 50 hard earned American greenbacks cash on the barrelhead

  10. time to sue for independence and take over our own lands united states of Pacifica is what we’re to be named consisted of alaska Yukon and British colombia then we can get rid of these horrible national parks just a playground for the rich and famous

  11. All of the Native Americans are thinking, Good luck with that. I still think that a coalition of tribal leaders should purchase the former Washington Redskins football team and rename it the Washington Oath-breakers. Let’s celebrate American history.

  12. It’s Alaska’s land not the federal government’s land. But I’m against Pebble Mine. They will contaminate Bristol Bay and won’t care. I lived in an open pit mine town and every stream was polluted. Dies anyone really believe that the Canadians are going to care what they do to our state. We need to take possession of all our land owned by foreigners. It’s our country not theirs. If they want to pollute their country let them, keep Alaska clean and beautiful.

  13. And if we lose in the courts… the Governor (one with a spine, unlike Dunlacey) would physically kick the feds out of that 700K of acerage and open it up to Alaskans to start mining.

    Yes, it is that simple… who is Jon Galt?

  14. Pebble / parent company Northern Dynasty is a Canadian company.

    Canada has sold all their mining companies mostly to China.

    Alaskans will not benefit much from the pebble mine project. Maybe a handful of jobs.

    What Alaskans will lose is most of the Bristol Bay Salmon run, When their levies will break. And they will. Look what happened at Lake Quenel in Canada. They said it would never happen. Millions of mining waste into the fresh water system.

    Might as well finish off destroying our Alaskan way. The governor is already destroying our ocean resources with Trawlers, destroying the ocean floor. Discarding millions of lbs of bycatch

    What a waste.

    • Concerned; You are correct; and if I may add, Northern Dynasties disclaimer stipulation which took 45 minutes to read, clearly state’s that they would not be responsible for any damages incurred during the ore extraction process and absolves them from any liability what so ever.

  15. The Governor should legalize lottery and casinos while he’s on a roll. There’s no logical reason why Alaska shouldn’t be profiting from the same activities our lower 48 counterparts do.

  16. Dunleavy favors foreign corporations over the people of Alaska. His real reason (as opposed to the stated reason) for wanting control over those resources is to hand them over to some foreign corporations.

  17. This from the most unfit candidate since time began: “If I don’t get elected, it’s going to be a bloodbath for the whole — that’s going to be the least of it. It’s going to be a bloodbath for the country,” Elect him and blood will be on your hands too.

    • Valley Chapel, that is such an egregious LIE and misrepresentation of what Trump said! Which of course does not stop you sociopathic, power-lusting radical leftist extremists from parroting it like the mindless drones that you are.

      What Trump actually said, if you cared at all to tell the truth, was that there would be a bloodbath IN THE AUTOMOTIVE INDUSTRY if he is not re-elected.

      Honestly, the dishonesty and disingenuousness of you far-left extremists literally knows no bounds, does it?

      • Thank you Jefferson for posting what President Trump did say. The left is so dishonest and vicious to be purposely leaving out portions of what someone says to fit their own narrative. It is sickening.

    • VC, go watch the longer video – not the 17 second video so that you can get the full context of the speech. Also, go look up “bloodbath” in the online Merriam-Webster dictionary. You will see in the online dictionary, this definition that fits exactly what President Trump was talking about: 2.b.: “a major economic disaster” (“a market bloodbath”).
      Any time a lefty talking point is spreading like wildfire on the internet, people need to go see if it is true. I hope that others, besides myself, have taken screenshots of the online dictionary definition because the internet cops will probably be changing the definition shortly due to people having discovered the truth. 1984.

  18. The amount of money that the state of Alaska actually collects from mining royalties is laughable, due to outdated laws that were put in place originally to encourage settlers, miners to come west, come to Alaska. Yes there will be a small amount of jobs, many of which will likely be held by non Alaskans who come here to work, and will then pay income taxes (to their home state, not Alaska) as well as spend their earnings in their home state (not Alaska). Yes some of the workers will be Alaskans and spend their wages here, but that will be a pittance compared to the money generated by BB salmon fishing, and that money generated by salmon fishing is also overwhelmingly small mom and pop operations, residing in state. The pebble mine is yet another example of extreme pro development/pro industrialist elected officials treating Alaska like it is a resource extraction colony, so that their friends can benefit from lucrative contracts, businesses that are ancillary to said developments. Very reminescent of Ayzn Rand industrialist propaganda (Atlas Shrugged)

    Unrelated to the above statements, anything on mustreadalaska is thinly guised and heavily skewed pro industrial, screw the environment propaganda, masquerading as impartial news.

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