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A Private Charitable Trust Manage and Distribute Assets from a Natural Resource Damage Settlement

A Private Charitable Trust Manage and Distribute Assets from a Natural Resource Damage Settlement. HISTORY. LARGE PUMPED STORAGE HYDROELECTRIC FACILITY FEDERAL LICENSE AND STATE LEASE REQUIRED MEASURES TO PROTECT FISH. LUDINGTON PUMP STORAGE FACILITY. LEGAL ISSUES. LARGE FISH KILLS

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A Private Charitable Trust Manage and Distribute Assets from a Natural Resource Damage Settlement

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  1. A Private Charitable Trust Manage and Distribute Assets from a Natural Resource Damage Settlement

  2. HISTORY • LARGE PUMPED STORAGE HYDROELECTRIC FACILITY • FEDERAL LICENSE AND STATE LEASE REQUIRED MEASURES TO PROTECT FISH

  3. LUDINGTON PUMP STORAGE FACILITY

  4. LEGAL ISSUES • LARGE FISH KILLS • NATIONAL/STATE CONSERVATION GROUPS - FERC AND IN FEDERAL COURT ACTIONS • STATE FILED IN STATE COURT • FEDERAL GOVERNMENT AND INDIAN TRIBES CLAIMED DAMAGES

  5. SETTLEMENT AGREEMENT • STATE COURT CONSENT AGREEMENT- CONTINGENT ON FERC • SEASONAL NETS - REDUCE FISH LOSSES • PAYMENTS FOR PAST AND FUTURE FISH LOSSES • TRUST TO PROVIDE MITIGATION

  6. WHY A PRIVATE TRUST? • NUMEROUS LITIGANTS/CLAIMANTS • CASH COMPONENT LARGE • NO PARTY TO ACTION WILLING TO VEST SOLE CONTROL TO STATE OR FEDERAL AGENCY

  7. WHAT IS THE TRUST? • PRIVATE CHARITABLE FOUNDATION • COURT SETTLEMENT • GUIDED BY BOARD AND SETTLEMENT AGREEMENT / TRUST INSTRUMENT • GRANTS TO MITIGATE FISH LOSSES • MANAGED BY A PRIVATE FIRM

  8. Grand Traverse Band of Ottawa and Chippewa Indians

  9. SCIENTIFIC ADVISORY TEAM Michigan Department of Natural Resources United States Fish and Wildlife Service Grand Traverse Band of Ottawa and Chippewa Indians Michigan United Conservation Clubs National Wildlife Federation AND Little River Band of Ottawa Indians Little Traverse Bay Bands of Odawa Indians Chippewa-Ottawa Treaty Fishery Management Authority

  10. GREAT LAKES FISHERY TRUSTBasic Structure

  11. SOURCE OF GRANT DOLLARS • PAST DAMAGES TO FISH - 10,000 ACRES OF LAND + 10 MILLION DOLLARS • ANNUAL PAYMENTS FOR FISH LOSSES (APPROX. 2.5 MILLION/YR) • PAYMENTS UNTIL 2019 (FERC LICENSE PERIOD) • CURRENT ASSETS ~ 25 MILLION

  12. WHO CAN GET GRANTS? • LOCAL GOVERNMENTS • COLLEGES AND UNIVERSITIES • NON-PROFITS (501c3) • STATE & FEDERAL AGENCIES • INDIAN TRIBES

  13. TYPES OF GRANT PROJECTS • FISHERIES RESEARCH • REHABILITATION OF FISH POPULATIONS • GREAT LAKES EDUCATION • FISHERIES HABITAT RESTORATION • FISHING ACCESS - GREAT LAKES • SPECIAL PROJECTS

  14. FISHERIES RESEARCH

  15. POPULATION RESTORATIONLake SturgeonPrototype Spiral Fish Ladder

  16. EDUCATIONCurriculum, Interpretive Programs, Displays

  17. Great Lakes Shore Fishing Access

  18. FISHING ACCESSShore Fishing Facilities

  19. SPECIAL PROJECTS • SPECIAL PROJECTS • Control of Exotic Species Introductions • Sturgeon Research Conference • Watershed Initiative • Demonstration Dam Removal

  20. SUMMARY • $25 MILLION IN ASSETS • $10 MILLION IN GRANTS (35 Projects) • $4-$8 MILLION GRANTS / YEAR • INCOME 2.5+ M/YR

  21. GREAT LAKES FISHERY TRUSTFunctional Organization

  22. RESPONSIBILITIES OF BOARD • APPROVE SALE OF LANDS • INVEST / MANAGE ASSETS • MITIGATION GRANTS • CONTRACT FOR MANAGEMENT SERVICES • OTHER FIDUCIARY RESPONSIBILITIES

  23. RESPONSIBILITIES OF SAT • ADVISE THE GLFT • Grant requests • Land matters (conservation easements) • Strategic planning • EXERCISE SEPARATE AUTHORITY • Calculating annual fish damages • Signing-off on FERC requirements • Investigate technologies to minimize fish losses

  24. RESPONSIBILITIES OF MANAGER • IMPLEMENT STRATEGIC PLAN • MANAGE / SELL PROPERTIES • SOLICIT / MANAGE GRANTS • PROVIDE PUBLIC INFORMATION • RECOMMEND POLICY / PROCEDURES • RECOMMEND / IMPLEMENT MANAGEMENT CONTROLS

  25. WHY DOES THE TRUST WORK? • FINANCIAL SECURITY • CLEAR MISSION • BENEFICIARY PARTICIPATION • ENFORCEABLE MANDATE • STABILITY

  26. FINANCIAL SECURITY • INITIAL ASSETS HIGH • ANNUAL PAYMENTS - SOURCE OF INCOME FOR 25 YEARS • PRUDENT INVESTMENTS - OPPORTUNITY TO INCREASE ASSETS

  27. CLEAR MISSION • SETTLEMENT AGREEMENT - PURPOSE • TRUST INSTRUMENT - STRUCTURE / DECISION MAKING • STRATEGIC PLAN SETS GOALS/OBJECTIVES

  28. BENEFICIARY PARTICIPATION • BENEFICIARIES - PEOPLE OF THE STATE WHO USE THE GREAT LAKES • STAKEHOLDER ORGANIZATIONS MEMBERS OF THE BOARD / SAT • PUBLIC INFORMED OF GLFT ACTIVITIES / FUNDING

  29. LEGAL MANDATE • ALL PLANTIFFS ON THE BOARD • ALL PARTIES ON THE SAT • SETTLEMENT ENFORCEABLE BY ANY PARTY • INDEPENDENT OF STATE/FEDERAL GOVERNMENT

  30. STABILITY • GLFT IN PERPETUITY - MANAGED TO BE LIQUIDATED BY 2020 • ASSETS MANAGED FOR LONG TERM • STAFFING BASED UPON PROGRAM SIZE

  31. PRIVATE TRUST APPROPRIATE LTS OF CONTAMINATED SITES? • PRIVATE SITES WITH PRPs • YES, PROVIDED • Sufficient funding • Clear purpose / legal mandate • Local stakeholder involvement/participation • YES, FOR PRIVATE SITES WITH CERCA FUNDING • Same caveats

  32. PRIVATE TRUST APPROPRIATE LTS OF CONTAMINATED SITES? • FOR DOE OR DOD SITES? • PERHAPS, IF ISSUES CAN BE RESOLVED • Long Term Funding • Public Accountability vs Political Independence

  33. CONCLUSIONS • PRIVATE TRUSTS CAN PERFORM A VARIETY OF FUNCTIONS • OFTEN MORE EFFICIENT THAN GOV. • CAN BE MORE RESPONSIVE TO STAKEHOLDER CONCERNS • LESS SUBJECT TO PARTISAN OR ECONOMIC CONSTRAINTS • HAS LIMITATIONS

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