The Grouse Lake parcel was an inholding in Chugach National Forest. It is located approximately 7.5 miles north of Seward on the west shore of Grouse Lake. The parcel provides the only level access area around the lake and Grouse Creek. The lake has long been a favorite recreation area used by local residents and tourists for fishing, camping and hiking. The parcel provides key habitat for pink salmon and Dolly Varden. Dolly Varden spawn in the streams on this parcel and are reared in Grouse Lake. Grouse Lake is the site of an active sockeye salmon stocking program by ADF&G. Bald eagles and river otters are frequently seen in the area.
The Lowell Point parcel serves as an important access point to Resurrection Bay for small boat operators and kayakers, and contains a trailhead and trail to Caines Head State Recreation Area. The area is also popular for fishing, camping, picnicking and beachcombing. The primary benefits of acquisition of this parcel are to recreation and sport fishing, and Alaska State Parks allocated additional state restitution funds to develop day use parking, trailhead and interpretive exhibits on this parcel.
| Parcel ID | Description | Acres | Value |
| KEN 1014 | Grouse Lake | 64.0 | $211,000 |
| KEN 1015 | Lowell Point (Seward) | 19.4 | $531,000 |
| Seward Area | Total: | 83.4 | $742,000 |
