As part of the Alaska Native Claims Settlement Act (ANCSA), Sections 7(i) and 7(j) play crucial roles in revenue sharing among regional corporations and their shareholders. Here’s an overview to help you understand how these distributions work and their impact on Ahtna shareholders.

What are Section 7(i) Payments?

Section 7(i) of ANCSA mandates that 70% of the net revenues, after certain costs, derived by each of the 12 regional corporations in Alaska from timber and subsurface estate must be shared annually. These revenues, known as Section 7(i) distributions, are divided among all regional corporations based on the number of original shareholders enrolled in each region. This provision ensures that the wealth generated from natural resources is shared across all regional corporations, promoting a more equitable distribution of resources.

What are Section 7(j) Payments?

Section 7(j) specifies that 50% of the funds received by a regional corporation from Section 7(i) distributions, as well as monies from the Alaska Native Fund, must be further distributed. These funds are shared with village corporations and at-large shareholders—those who are not enrolled in a specific village corporation.

Shareholder Classifications: Class A1 & Class A2

Ahtna shareholders are classified into different categories based on their enrollment:

• Class A1 Shares: Issued to original shareholders who were also enrolled in a village. These shareholders do not receive 7(j) payments directly, as their village corporations receive these funds on their behalf.
• Class A2 Shares: Also known as at-large shares, these were issued to original shareholders who were not enrolled in a village corporation. At-large shareholders receive 7(j) funds directly because they are not affiliated with any village corporation.

Impact of the 1980 Merger Agreement

In 1980, seven of the eight village corporations in the Ahtna region merged with Ahtna, Inc. The only village corporation that did not merge was Chitina Native Corporation. As a result, Chitina remains the sole village corporation in the region that receives Section 7(j) payments. This merger means that Ahtna, Inc. distributes approximately 17% of its Section 7(i) distributable receipts to Chitina and at-large shareholders.

Key Points to Remember

• 7(i) Distribution: Comes from the net profits of natural resource development shared among regional corporations.
• 7(j) Distribution: Allocates 50% of the 7(i) funds to village corporations and at-large shareholders.
• Eligibility for 7(j) Payments: Only Class A2 (at-large) shareholders receive these payments directly, as they are not associated with a village corporation.

Understanding these distributions is crucial for Ahtna shareholders, as it clarifies how revenue from natural resources is shared and what benefits are available based on your shareholder classification. For questions or further details, shareholders are encouraged to contact the Ahtna office or visit www.ahtna.com.