ANCHORAGE, Alaska — Alaska Native leaders meeting with government officials say some residents in remote villages are paying up to $3,500 a month for fuel.

Those comments were made during a round-table discussion in Anchorage Tuesday that was hosted by several Native groups.

Gov. Sarah Palin attended the meeting, along with U.S. Sens. Ted Stevens of Alaska and Daniel Inouye of Hawai'i.

The meeting was held as legislators have weighed a bill to provide one-time energy rebates to Alaska residents to help them pay for skyrocketing fuel prices.

Some Native leaders say a recent vote by the state Senate to cut Palin's proposed energy rebate from $1,200 to $500 is deeply disappointing.

"It's a slap to our face," said Matthew Nicolai, president of Western Alaska's Calista Corp.

Meeting participants focused on short- and long-term fixes.

Stevens said the oil industry in rural Alaska needs to be expanded now and the state should use the income to invest in major renewable energy projects, such as wind and hydropower.

Byron Mallott, a former Alaska Federation of Natives president, said the state's Native corporations need to assume the leadership role in their regions.

Officials of some regional corporations said Tuesday they are addressing the energy crisis by increasing shareholder dividends, developing renewable energy projects and lobbying the Legislature.

The Nome-based village and regional Native corporations are installing 18 wind turbines this fall to reduce the community's reliance on expensive diesel.

Mallott suggested allocating $200 million per year from the Alaska Permanent Fund for five years to develop energy infrastructure for communities.