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CORPORATE HISTORY Through its subsidiary, CHN Inc., Chenega Corporation was a minority joint venture of native-owned Koncor Forest Products Company from 1981-1997. It was one of the most successful timber companies in the State of Alaska. Since 1994, through its wholly owned subsidiary, Chaaniqmuit Services, Ltd., Chenega Corporation has participated as a 24.5% owner of TCC, a joint venture between Chenega Corporation, Tatitlek Corporation and Chugach Alaska Corporation. TCC is a contractor for Alyeska Pipeline Service Company, which provides maritime oil spill response at the Valdez pipeline terminal. From 1974 to 1997, Chenega Corporation’s main asset was approximately 79,000 acres of land acquired as part of its ANCSA entitlement. In February of 1997, Chenega Corporation executed a formal purchase and sale agreement with the Exxon Valdez Oil Spill (EVOS) Trustee Council, (a court appointed body of three federal and three state agencies, who oversee the $900 million oil spill restitution fund), which quickly altered the Corporation’s primary asset base from land to cash. This $34 million Habitat Lands Transaction encompassed 59,520 acres. 20,968 acres were conveyed to the U.S. Forest Service, 16,268 acres were conveyed to the State of Alaska, and 22,284 acres are managed by the U.S. Forest Service under Conservation Easement. Under the terms of the Habitat Lands Transaction, Chenega Corporation retained approximately 20,000 acres of land unencumbered by Conservation Easements as well as nine development sites,ownership of the original village site of Chenega, all subsistence and archaeological rights, and all shareholder home sites selected within the Transaction area. Following 1997’s Habitat Lands Transaction, Chenega Corporation placed $14 million of its Habitat Transaction proceeds in an irrevocable settlement trust to provide Chenega Corporation shareholders with dividends in perpetuity. The Chenega Corporation Settlement Trust, currently valued at nearly $20 million, provides consistent distributions to its beneficiaries and has distributed nearly $4 million since its inception. The remaining Habitat Transaction proceeds provided the initial capital necessary to early on begin new business ventures, ensure continued corporate growth and an ability to develop and provide on-going shareholder services. The Corporation’s adapted business model of pursuing Government services contracts under the small business act has provided the engine for dramatic growth from 2003- 2005 placing the corporation as the largest and most successful of the ANCSA Village corporations and third largest of all ANC’s.
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