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within the Alaska Peninsula Wildlife Refuge are to be determined within the context of the Section 1203 Bristol Bay Cooperative Study.

The Secretary was pleased that this bitter suit was brought to an amicable settlement that included a number of national environmental organizations.

The Department has also been actively involved in the start-up of the Alaska Land Use council--a unique Federal-State body that has become a critical element of the Secretary's "good neighbor" policy. The Council has received excellent support and its first official meeting in August 1981 was attended by the Secretary, Governor Hammond, the Alaska Congressional Delegation, and Vernon Wiggins, the Federal Co-Chairman as well as the designated Council members. Since then we have employed the Council in myriad ways in addition to the specific responsibilities it has under the Act. Attached to this statement is a copy of the Council's first annual report which speaks for itself.

I want to thank you again for the opportunity to appear today and outline the Interior Department's activities regarding implementation of the Alaska Lands Act. Enactment of the statute was a major undertaking as is its implementation and despite our progress over the past 16 months, the job has just begun. The Department is proud of its accomplishments in this area and looks forward to continued faithful execution of the Secretary's implementation policy directives. Thank you.

MEMORANDUM OF UNDERSTANDING BETWEEN THE UNITED STATES

DEPARTMENT OF THE INTERIOR AND THE STATE OF ALASKA

FOR A PROPOSED EXCHANGE OF LANDS

This Memorandum of Understanding is made and entered into by and between the State of Alaska (hereinafter "the State") and the United States Department of the Interior (hereinafter "Interior") for the purposes of a proposed exchange of lands. The lands under consideration for exchange consist of both surface and subsurface estate located in several areas of Alaska. The lands under consideration for exchange by the State to Interior (Appendix A) consist of approximately 14,000 acres located near McCarthy which are completely surrounded by the Wrangell-St. Elias National Preserve. The lands under consideration for exchange by Interior to the State (Appendix B) total approximately 26,000 acres located within and along the periphery of Denali National Park, Glacier Bay National Park and the Klondike-Gold Rush National Historical Park.

WHEREAS, the State has authority to enter into a land exchange under A. S. 38.50;

WHEREAS, Interior has authority to enter into a land exchange under the terms of Section 1302 of the Alaska National Interest Lands Conservation Act (hereinafter "ANILCA"), 94 Stat. 2474.

WHEREAS, the State and Interior mutually desire to obtain lands presently owned by the other and which, if obtained, would create land ownership and use patterns permitting more effective administration of the state and federal public domain; facilitate mutual land management objectives and achieve other public purposes.

WHEREAS, the State and Interior agree that an exchange of lands as authorized in Section 1302 of ANILCA and A. S. 38.50 is an appropriate mechanism to achieve their respective objectives; and

WHEREAS, the State and Interior desire to ensure that any land exchange undertaken by the parties will be in the public interest and in accordance with applicable state and federal requirements;

WITNESSETH: The State and Interior hereby agree to the following procedures in order to pursue the proposed exchange of land as generally specified in Appendices A and B, and to consider the appropriate terms and conditions thereof:

1. Completion and approval of both parties of appraisals of the fair market value of the lands proposed for exchange, such appraisals to be undertaken by the State for the lands described in Appendix A in accordance with State appraisal standards, and by Interior for the lands described in Appendix B and in accordance with the uniform appraisal standards for federal land acquisition prepared by the Interagency Land Acquisition Conference, 1973, the State and interior shall bear the costs of appraisal for their respective lands proposed for exchange.

2.

Compliance with the requirements of ANILCA, including, but not limited to, a determination of the effect on subsistence uses in accordance with the applicable provisions of Section 810 of ANILCA, and a determination of the consistency of the proposed exchange with the purposes of ANILCA;

3. Compliance with the National Environmental Policy Act (NEPA); and

4. Compliance with all pertinent provisions of A. S. 38.50, including, but not limited to, the findings requirement, public notice and public hearings; and

5. Submission to and review of the proposed land exchange by the Alaska State Legislature as provided in A. S. 38.50.140; and.

6. Submission of the proposed land exchange for purposes of consultation to the Alaska Land Use Council; and

7. Entry into a Cooperative Management Agreement between the State of Alaska and the Department of the Interior for purposes of establishing cooperative land management practices on all lands retained by the state and federal lands obtained from the State near McCarthy within the Wrangell-St. Elias National Preserve, as identified in appendix C. This Cooperative Management Agreement shall be entered before any of the lands identified in Appendices A and B are exchanged and shall be of no effect in the event that the lands are not exchanged.

The parties agree that the proposed land exchange offers the opportunity to work cooperatively and in good faith to carry out the provisions of this memorandum. The obligations of the parties to this agreement are subject to the availability of appropriated funds.

8.

The State agrees to bear all costs incurred to assure compliance with state law. Interior agrees to bear all costs incurred to assure compliance with federal law.

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THIS IS TO CERTIFY that on the 30th day of August 1982, before me, the undersigned Notary Public for the State of Alaska, duly commissioned and sworn as such, personally appeared JAY S. HAMMOND, Governor of the State of Alaska, for and on behalf of the STATE OF ALASKA, and who stated that he executed the foregoing instrument as his free and voluntary act and deed, with lawful authority and for the uses and purposes therein mentioned.

WITNESS my Hand and Notarial Seal on this 3 day of

August

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1982, before me, the undersigned Notary PubTic for the State of Alaska, duly commissioned and sworn as such, personally appeared JAMES G. WATT, Secretary of the Department of the Interior, United States of America, for and on behalf of the UNITED STATES OF AMERICA, and who stated that he executed the foregoing instrument as his free and voluntary act and deed, with lawful authority and for the uses and purposes therein mentioned.

WITNESS my Hand and Notarial Seal on this 3 day of

August

1982.

& Kays Landlin

Notary Public in and for Alaska
My commission expires: 2/86

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