Class B Shareholders Receive 7(i) Distribution of $12.45 per Share
Class B (at-large) shareholders received a 2017 7(i) distribution in the amount of $12.45 per share on May 3.
A common question for shareholders is, “What are 7(j) distributions/dividends and how are they calculated?” Sections 7(i) and 7(j) of the Alaska Native Claims Settlement Act (ANCSA) were unique revenue-sharing mechanisms included by the United States Congress to help ensure that all Alaska Natives benefitted from resource development on ANCSA lands.
Under Section 7(i), a regional corporation must share 70 percent of the net revenue from timber and subsurface minerals developed on regional corporation ANCSA lands with the other 11 Alaska Native regional corporations.
Under Section 7(j), a regional corporation must annually pay 50 percent of the money received under Section 7(i) to the village corporations and to at-large shareholders within its region.
In the Doyon region, Doyon, Limited makes distributions to its village corporations and at-large shareholders in the April/May timeframe. The distribution amount is dependent on the Section 7(i)/7(j) money Doyon received from the other regional corporations during the preceding year.
In accordance with Section 7(j), Doyon divides 50 percent of the amount of Section 7(j) money received from ANCSA lands’ resource development profits by the number of original shareholders. Doyon then pays each village corporation its proportional share of money based on the original Class A shareholder population in 1972 and the remainder to original Class B (at-large) shareholders. Each village corporation independently determines how to use its 7(j) payments.
The 50 percent of remaining 7(i)/7(j) funds are used for administrative costs incurred by Doyon to manage these annual disbursements for every Interior village corporation and at-large shareholder.
In the last five years, Doyon distributed the following amounts to at-large shareholders:
For the past 10 years, the majority of the Section 7(i) money shared by other regional corporations was generated by NANA Regional Corporation from zinc and lead at the Red Dog Mine and from Arctic Slope Regional Corporation from oil produced on the North Slope. The amount the Doyon region receives in any given year is dependent on the commodity prices for zinc, lead and crude oil, as well as the volumes produced in that year. Commodity prices for zinc, lead and oil have been quite volatile and Doyon expects that volatility to continue, making future predictions of Section 7(i)/7(j) difficult.
For more information about the annual 7(i) disbursement, please contact shareholder records at email@example.com or 1-888-478-4755 (toll-free).