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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Blackwell, Morton: Files
Folder Title: Indian Economic Development
(3 of 7)
Box: 29
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
ecology (terrestrial and aquatic)
Colstrip Mine, Decker Coal Mine, Westmoreland
MONTANA
field sampling techniques
Resources Co., and Knife River Coal Mine. In Wyoming,
ecological data interpretation and assessment
students visited the Big Horn Coal Mine.
INDIAN TRAINING
water quality and water rights
range and game management
INDIAN TRAINING FOLLOWUP
soil science-plant relationships
hydrology and geology
After the Montana Training Program was completed,
PROGRAM
air quality monitoring
six students were invited back to Argonne National
visits to coal mines, and
Laboratory for further training in energy resources and
discussions on energy resources
land reclamation under Argonne's Affirmative Action
Program. An Argonne scientist arranged a work-study
Classroom and laboratory studies were combined
program with each student in their area of interest.
with frequent field investigations and visits to mining
and reclamation sites. In Montana, students visited the
PROGRAM DEVELOPMENT
Participating Indian tribes have been receptive to the
program and tribal members have indicated the course
was successful in meeting some of their needs. The
success of the Assiniboine/Sioux, Crow, and Northern
Cheyenne training program is being assessed by Argonne,
DOE, Miles Community College, The Crow Central
Education Commission, tribal councils, and instructors.
Based upon these evaluations, the curriculum is being
modified to enhance the effectiveness of future training
programs. Because numerous inquiries on the training
programs have been received by Argonne, an assessment
of the potential training needs of other native Americans
is also being considered.
FOR MORE INFORMATION
Information on the Montana Indian Training
Programs is available from: Dr. Roy E. Cameron,
Director, Energy Resources Training and Development,
or Dr. W.S. White, Deputy Director of the program,
Argonne National Laboratory, 9700 South Cass Avenue,
Argonne, Illinois 60439. Phone 312-972-2000.
Photos by E. Dettmann, G. Waggoner, W. White.
ENERGY, RESOURCES,
TRAINING &
Upon successful completion of the course,
Gollege credits and a certificate were presented.
DEVELOPMENT
U of C-AUA-USDOE
THE NATIVE AMERICANS AND ENERGY
and land use, and the success of land rehabilitation
practices.
One-third of the country's low sulfur coal, most of its
Scientists and engineers from Argonne, instructors
uranium, and large amounts of oil and natural gas are
from local colleges, state officials, and local resource
beneath the reservations in the west and southwest. In
people served as instructors in the course. The air quality
Montana, more than 11,300 million tons of coal reserves
presentation, for example, involved an Argonne instruc-
lie beneath land belonging to Assiniboine/Sioux, Crow,
tor, a representative from the Montana Air Quality
and Northern Cheyenne. In 1975, approximately
Bureau, and officials from the Western Energy Company
17 million tons were strip mined on or near reservation
at Colstrip, Montana. Lecture facilities, lodging, board,
lands. Oil and natural gas leases have been negotiated on
and stipends were provided, and course coordination
some tribal land.
assistance was through the Crow Central Education
The Montana Indian Tribes are concerned with
Commission. College credit was provided by Miles
obtaining "fair" payment for the extraction of coal and
Community College in Miles City, Montana.
other resources, and ensuring that mined land will be
effectively reclaimed. There is a growing need for trained
THE CURRICULUM
Indians who can help tribal leaders reach informed
decisions concerning the use of energy and natural
In general, the program is designed to meet each
resources and protection of the environment.
tribe's cultural, economic, manpower and resource
Courses in reclamation included visits to strip mined areas.
needs. The subjects stressed field work with emphasis on
COVER PHOTO
natural resources, energy development, land use, and
Students in the Montana Training Program were invited to
In recognition of these concerns, Argonne National
reclamation in Eastern Montana. Subjects taught were:
Argonne National Laboratory for further training.
Laboratory has developed an intensive six-week energy,
land reclamation/conservation course designed to teach
tribal members the scientific principles behind land use
and conservation and their application to problems
encountered on reservation lands. The course is
supported by U.S. Department of Energy (DOE) funds.
PURPOSE OF ARGONNE'S TRAINING
PROGRAM
The course was first offered to Navajo and Hopi
Indians during the summer of 1976. Upon completion of
the Navajo-Hopi course at Navajo Community College,
the Eastern Montana tribes expressed interest in setting
up a similar training program. During the summer of
1977, the course was offered to the Eastern Montana
Indian tribes and once again to the Navajos and Hopis.
The purpose of the program was to teach the
participants the scientific principles underlying energy
development, reclamation, conservation and their
application to problems faced on Indian lands. Emphasis
Classroom courses were supplemented by field trips.
was placed on identification of natural resources, energy
At Argonne, students learned laboratory techniques.
SOUTHWEST
Classroom and laboratory studies were combined
councils, and the three coal operators involved. Based on
with frequent field investigations and visits to mining
these recommendations, the curriculum is being
and reclamation sites. The hydrology presentation, for
modified to enhance the effectiveness of future training
INDIAN TRAINING
example, was coordinated with a University of Arizona,
programs and development of an energy and environ-
DOE- and Argonne-sponsored water harvesting program
mental sciences curriculum at Navajo Community
at Peabody's Black Mesa Mine.
College. Technical personnel and qualified students are
PROGRAM
In addition to visiting the Black Mesa Mine, students
provided board, room, tuition, fees, books and stipends
traveled to Pittsburgh and Midway's McKinley Mine and
for the course.
Utah International's Navajo Mine, both in New Mexico,
A preliminary assessment of the potential training
and Peabody's Kayenta Mine on the Black Mesa in
needs of other American Indian tribes also is being
Arizona.
considered, to establish where and how DOE can
integrate its energy/land reclamation research demon-
FUTURE PROGRAMS
strations with applied training programs.
The success of the Navajo-Hopi Training program in
FOR MORE INFORMATION
meeting the needs of the two tribes is being assessed
once again as it was in 1976 by Argonne, DOE, Navajo
Information on the Arizona-New Mexico Program or
Community College, The University of Arizona, tribal
other Indian training programs is available from
Dr. Roy E. Cameron, Director, Energy Resources
Field samples were identified upon return to the classroom.
Training and Development, Division of Environmental
Impact Studies, Argonne National Laboratory,
9700 South Cass Avenue, Argonne, Illinois 60439.
Telephone: (312) 972-3181. (Photos by J. Matlock.)
ENERGY, RESOURCES,
TRAINING &
DEVELOPMENT
THE AMERICAN INDIAN AND ENERGY
College in Tsaile, Arizona. Additional consultation on
RESOURCES
the course was provided by The University of Arizona's
Office of Arid Lands, Tucson, Arizona.
One-third of the country's low sulfur coal, most of its
uranium, and large amounts of oil and natural gas are
THE CURRICULUM
estimated to lie beneath the reservations of the
American Indians in the west and southwest. The largest
The subjects covered during the course were all
reservation, that of the Navajos, covers 15 million acres
presented with emphasis on their application to natural
in the Four Corners region, and is believed to contain
resources, energy, mining and land reclamation in the
50 billion tons of coal, as well as sizable quantities of the
arid Southwest, and included:
other energy resources-100 million barrels of oil,
25 trillion cubic feet of natural gas and 80 million
ecology (terrestrial and aquatic),
pounds of uranium. Three surface coal mines are now
field ecological sampling techniques,
operating on the reservation, and a fourth is being
collection, presentation, and interpretation of
considered.
ecological data,
The Navajo Nation is concerned both with obtaining
geology and geochemistry,
"fair" payment for the extraction of coal and other
hydrology,
resources, and ensuring that mined land will be effective-
water quality,
ly reclaimed. A growing need exists for trained Native
Visits to coal surface mines were included in the program.
air monitoring,
Americans who can help tribal leaders reach informed
soil science and soil microbiology,
decisions concerning the use of energy, natural resources
PURPOSE OF ARGONNE'S TRAINING
agronomy, range and wildlife management,
and protection of the environment.
PROGRAM
forestry and revegetation techniques,
discussions on energy development and land use.
Recognizing this need, Argonne National Laboratory,
Data collected on field trips were discussed with the students by
through Navajo Community College, conducted an
Extent of ground cover was determined and vegetation types
the instructor.
intensive six-week energy, land reclamation/conservation
identified.
course for Navajo and Hopi Indians during the summer
of 1976. In 1977 the training program was held once
again for eight weeks for Navajos, Hopis and Zunis.
These courses were funded by the Division of
Biomedical and Environmental Research, U.S.
Department of Energy.
The purpose of the program was to teach the
participants the scientific principles underlying natural
resources, energy, reclamation and conservation and how
to apply them to problems faced on Navajo and Hopi
lands. Emphasis was placed on practical environmental
assessment techniques that can be used to measure the
success of land rehabilitation practices.
Scientists and engineers from Argonne (who have
conducted extensive land reclamation research), state
officials, and local resource people served as instructors.
Classrooms, laboratory facilities, and course coordina-
tion assistance were furnished by the Navajo Community
MOAPA BAND OF PAIUTES
MOAPA RIVER INDIAN RESERVATION
BOX 56
MOAPA, NEVADA 89025
TELEPHONE (702) 865-2787
August 5, 1982
President
White House
Washington, D.C. 20500
Attn: Morton Blackwell, Presidential Assistant
Dear Sir:
We received information that there is to be a White House con-
ference bringing prominent Indian Leaders and corporate represent-
atives together, to discuss Economic Development and the creation
of jobs on Indian reservations.
With approximately 71,000 acres of our ancestral land being re-
turned to our tribe and with ten miles of prime frontage property
along Interstate 15, twenty miles north of Las Vegas, we feel that
we now have the land base to attract corporate enterprises to our
reservation. In fact, at the present time, we are currently nego-
tiating with several corporations in leasing our tribal lands. The
projected total employment is approximately 400 jobs.
It has been the common objective of the Moapa tribe to improve
the economic and social well being of our tribal members.
We feel this conference would give us an opportunity to meet
with corporate executives and with other Indian Leaders to study
their management plans. Phil Swain, a member of our tribe, who is
the business manager and is currently serving as President of the
Moapa Valley Chamber of Commerce would like to attend.
Your assistance on his behalf is appreciated.
Very truly yours,
huston Tom
Preston Tom
Tribal Chairman
PT;nm
CC: Rick Spees
Achel Robison
P.O. Box 56
Moapa, Nevada 89025
AVAL
OF
THE
Moapa Band of Paiutes
BUSINESS COUNCIL
THE
OF
Philbert H. Swain
Area Code 702
Business Manager
865-2787
MOAPA BAND
OF PAIUTE INDIANS
X
/
The following agencies have provided economic assistance to the Moapa Band of
Paiutes: U.S. Dept. of Commerce, Economic Development Administration; U.S. Dept.
of Labor; CETA; U.S. Dept. of Housing and Urban Development; Bureau of Indian
Affairs; Indian Health Services; Campaign for Human Development; U.S. Civil Service,
Dept. of Energy; Save the Children; The Four Corners Regional Commission; The
State of Nevada; Intertribal Council of Nevada.
Funding for this publication was provided by the Bureau of Indian Affairs Division
of Indian Enterprises, Paul Roessler, Washington, D.C. CREDITS: Photography-Stan
Mitchell, Steve Hines, Jim Meyers; Narrative-Jacqueline Mitchell; Art Work-Delores
Lee; Printing-Graphics West, Inc. of Las Vegas. Special thanks to the Intertribal Coun-
cil History Project and to the numerous members of the Moapa Band of Paiutes who
talked with us and agreed to be photographed.
TRIBAL COUNCIL
Chairman, Preston Tom
Louella Tom
John Lee
Maureen Frank
Raymond Anderson
Agnes Hanks
PLANNER/GRANT WRITER
CENTRAL STAFF
Michael Ostanik
Business Manager
Fred King
Finance Officer
Shirley Anderson
EDUC/HEALTH COMMITTEE
Louella Tom
DIVISION MANAGERS
Lalovi Miller
Leather
Monte Feasel
Olivia Tom
Greenhouse
Harold Goldsmith
Edith Mike
John Lee
Flora Simmons
Fred Miller
Evelyn Samlar
Farming
Reuben Tom
Store
Louella Tom
HOUSING AUTHORITY
Construction
Thomas Wright
Louella Tom
Dan Johnson
Loretta Mike
Health Planner
James Toner
Maureen Frank
Health Coordinator
Lalovi Miller
Thomas Wright
Senior Services
Maureen Koperon
Olivia Tom
HEADSTART TEACHERS
Bookkeeping
Marlene Grayman
Eunice Ohte
Sharlene Wisespirit
Mary Cortez
Secretaries
Ida Mae Benn
Lalovi Miller
Loretta Mike
Stacy Fernandez - Cook
Leota Fisher
AUTHOR'S NOTE:
The upper Muddy Valley in northeast Clark County, Nevada is the ancestral home
of the Moapa Band of Paiutes. To the undiscerning eye, the desert surrounding the
Moapa Reservation is dangerously arid; beautiful, but forbidding. Few tourists venture
off the highways, and in spite of the steam towers and high wires of a Nevada Power
Company less than a mile south of the reservation, there is an awesome quality in the
ragged line of the distant ridges and the subtle blaze of colors that deepen or fade from
mauve to rust, from turquoise to slate with the imperceptible changes of light. To the
Moapa Paiutes, the washes and mesquite slopes, the banks of the warm Muddy River
are the heartland: they have long understood how to make the desert fruitful.
Now the People are building a community on the reservation that provides the
necessities of life: good housing, decent jobs at a fair wage, health care, a center for
tribal government, and something more: a demonstration of the Tribe's ability to
manage its own financial interests, plan its own social programs, and successfully
administer, with its own staff, a variety of federally funded development projects.
The Ancient People left stories in petroglyphs on red canyon walls of how, with
cleverness and courage, they lived as hunters, as dancers, and as farmers in the dry-
lands. These pages are a small part of the Moapa Paiute story as it continues to unfold.
The People hope that their story will be a seed carried to other Indian People, to be
planted in their own homelands, to be shaped by their own special nature.
great skill in the use of animal skins and
In 1873, 39,000 square miles were set
THE PAST
plants. Cliffrose bark and Yucca as well as
aside for Tribal Lands by the Federal Gov-
leather were used for clothing and shoes.
ernment. This was increased somewhat to
In 1973, the History Project of the
Their knowledge of the nutritional and
provide timber in 1874, but in 1875 the
Nevada Intertribal Council established an
medicinal uses of plants was extensive.
set aside land was reduced to a meager
archives in Sparks to preserve what history
They were animists who believed that
reservation of 1,000 acres. This incredible
had been recorded of the Nevada Indian
all of Nature is alive and that the elements
reduction of the homeland was followed
People and to promote education in all
and animals could be both allies and trick-
by over 60 years of neglect and corrupt
aspects of Indian culture. Although the
sters of the People.
practices by white agents.
archives is open only to Tribe members
The History of Moapa following white
Tuberculosis and whooping cough epi-
or with Council permission to non-mem-
contact (dating from the 1830 opening
demics occured periodically during the
bers, interested persons may arrange for
of the Old Spanish Trail) is a tragedy.
1920's and 1930's, greatly adding to the
historical programs to be brought to
A peaceful people saw their land and
distress of The People.
schools, libraries and museums. A growing
water seized, their homes frequently raid-
In 1941, a Constitution and By-Laws
number of publications may be purchased.
ed by slavers. They were often caught in
were drawn up and the Tribal Business
The following summary of Moapa Paiute
conflicts among Mormon settlers, the
Council was established as the governing
history is based on the well-researched
New Mexicans, and the increasing num-
body. Because the individual allotments
book by ITC entitled Nuwuvi: A South-
bers of emigrants. Their own numbers
of the once communal land were too small
ern Paiute History:
diminished rapidly as they contracted
to farm economically, the Tribe also vot-
new diseases, especially tuberculosis and
ed in 1941 to restore the plots to Tribal
Although the Moapa people have pre-
measles. Insurrection and raiding for sur-
ownership, and to attempt to farm them
served a number of legends, songs, and
vival were punished brutally by federal
cooperatively. However, because of water
dances, cultural disruption during the
troops and white settlers.
problems, a shortage of money, a lack of
1800's and early 1900's all but destroyed
The Moapa Paiutes became an armed
modern equipment, and the difficulties of
traditional life. Early Spanish and New
people. John Fremont records in 1844
managing a cooperative venture, the Tribe
Mexican Priests and traders provide a
an encounter in the Muddy Valley:
became discouraged and eventually agreed
scanty written record of the Moapa Paiute
With each bow, each man carried a
to lease the farmland to a dairy company
Bands who lived and farmed in the Muddy
quiver of 30 to 40 arrows, partially drawn
-- a demoralizing situation that was not
Valley.
out Besides these, each held in his hand
to be undone until 1968.
The People were noted for their re-
two or three arrows for instant service.
In 1951, the Southern Paiute Tribes
sourcefulness and their initial friendli-
Their arrows are barbed with a very clear
filed a suit with the Indian Claims Com-
ness towards newcomers. While certain
translucent stone, a species of opal nearly
mission. In 1965, the Claims Commission
leaders achieved prominence, the Bands
as hard as the diamond, and shot from
granted a judgment to the Tribes, includ-
were communally governed. They were a
their long bows, are almost as effective
ing the Moapa Paiutes, who used 60% of
culturally well-adapted people who com-
as gunshot.
the monies awarded to establish a perpet-
bined farming with hunting and gathering,
However, such defiance was not enough
ual capital fund for improvements and ec-
and used the resources of the land with
to stop the intrusion of the whites into
onomic development. This money amount-
great ingenuity.
Moapa. The People were forced to flee
ed to $.28 per acre compensation for
Most of their domestic objects were
into the desert. With their farming disrupt-
Tribal Land confiscated in the 1860's.
various forms of intricately designed
ed by unrestricted passage through the
Then, in 1968, the Tribe refused to
basketry, including water jars, winnowing
Valley, The People often had no choice
renew the 10-year lease on their arable
and parching trays, cradle boards, cook-
but to live as low-paid laborers dependent
land to non-members. The Era of Recov-
ing baskets, and seed beaters. They had
on Mormon settlements.
ery had begun.
A SOUTHERN PAIUTE FAMILY CAMPED NEAR LAS VEGAS:
Courtesy of Intertribal Council History Project
2
THE LEADERSHIP
A key figure in the advancement of
the Moapa Band of Paiutes is Tribal Coun-
cil Chairman, PRESTON TOM. Preston
has been a Council member for 20 years
and the chairman for the last eleven. He is
a calm, serious man with a reserved man-
ner, capable nonetheless of a broad smile
and a quick joke. He has lived in Moapa
all his life.
Until the position of Chairman could
be salaried on a full-time basis, Preston
Tom worked for the Nevada Power Com-
pany and attended to Council matters
whenever he could. He says of his leader-
ship:
Without a full-time chairman and a
strong Council, the Tribe was in the finan-
cial control of the Bureau of Indian Af-
fairs. We didn't want to live like that. We
recognized the need to prepare for the
day when the Indian agencies will be phas-
ed out. We believed we could manage
TRIBAL COUNCIL CHAIRMAN, Preston Tom
our own affairs better than the agencies,
and in the last 10 years we have demon-
strated that we were right.
us for more information than this small
over-protective. While the Tribes suppos-
The Council knew the Tribe would have
magazine can include.
edly have the right to make their own de-
to develop a self-supporting economy in
cisions, the Bureau's very review process
order to employ the People. We had to
* In 1971, Preston Tom and planner Mike
is so cumbersome that it nullifies any sense
create jobs so that there was more than
Ostanik went to Washington, D.C. to re-
of independence. While the Indian People
farm-labor for people to do. To do this,
quest that Rogers Morton, Secretary of
may not yet be totally competent in avoid-
we would need to supplement Tribal mon-
the Interior, approve the relaease of Tri-
ing the exploitation of the general eco-
ies, by competing, like other local govern-
bal Judgment Funds from Bureau Trust
nomic marketplace, and while they may
ments, for federal assistance. We also
status to Council Management so that the
need the consulting services of the Bureau
knew we would have to become skilled
Tribe could act quickly and decisively in
to some extent, the Bureau should back
managers, something few Indian People
financial matters and not have to wait for
off and provide a wider space of freedom
have had a chance to do.
BIA approval. This request was granted.
so that The People are not confined by
The Council set its first 10-year goals
such extensive supervision.
in 1965 when the Tribe was awarded a
TRIBAL BUSINESS and the BIA
settlement from the Indian Claims
Commission.
*
Mike Ostanik believes all Indian Tribes
We had much to do. All the housing
who are now under the jurisdiction of the
was bad - no power in most of them, no
Bureau of Indian Affairs could benefit
plumbing, no insulation. People were
from the Moapa Paiutes example of grow-
crowded in shacks. There was one small
ing autonomy:
building for Tribal business. The farm had
So often the relationship of the Bureau
to be improved; we needed tools and ma-
to the Indian people is paternalistic and
chinery. The poverty was worse than now.
There were few services, no store.
Our goals were to build homes and a
community center, to put in roads, a sew-
age plant, street lights, to clear away some
of the mesquite thicket for a recreation
area, to provide fire protection. We have
accomplished these. While we worked on
housing, we began also to build the
businesses.
Not every step has been a success. We
made mistakes and had to learn together
how to correct them. We would not have
been ready for the Greenhouse Project
even three years ago. We needed the ex-
perience of setting up the leather shop,
running the farm, the store, and building
a central administration.
To other Indian People, we stress the
importance of these stages. We have not
solved all our problems, but we are gain-
ing strength in the management of our
own affairs. We extend any help we can
TRIBAL COUNCIL MEMBERS (left to right) John Lee, Raymond
and invite our brothers and sisters to visit
Anderson, Louella Tom, Agnes Hanks, Preston Tom and Maureen Frank
3
THE LAND
Mesquite is plentiful in the water cours-
the reservation serves as an oasis rich with
es, with sage throughout the slopes and
activity in the sun-burned land.
an occasional joshua that beckons man-like
For centuries the Moapa Paiutes had
to passersby. Other vegetation is sparse
irrigated their corn and bean fields along
but varied, and despite the almost comic
the Muddy, but with white settlers came
Moapa Valley is the prehistoric flood
range of thorns, bristles, and barbs, the
conflict over the land and water. The Peo-
plain of the Muddy River which flows
Indian People made use of nearly all the
ple were displaced and pauperized, their
southeasterly through the 25 mile long
plants, gathering and drying edible roots,
culture nearly destroyed. Now they work
valley and drains into Lake Mead. The
seeds, and berries; creating different
towards a new stronghold on their land
Valley is characterized by dry washes and
hemps for different weaving tasks, sooth-
through the development of their own
rounded hills along the river that gradually
ing ailments with aromatic teas.
economy. As part of this self-government,
rise from the valley floor to the distant
The Muddy River is fed by geothermal
in the Spring of 1979, the Tribe petitioned
ridges of the Arrow Canyon Range, the
springs and averages a balmy 82 degrees.
the U.S. Congress to restore to its jurisdic-
Muddy Mountains, and the Mormon
Water for domestic use on the reservation
tion 70,000 acres which is 4% of the
Mountains. These spiny grey and brown
is pumped from 21 warm springs at the
2,000,000 acres originally set aside as Tri-
limestone peaks are variously striated with
north end of the Valley. Research is now
bal Lands in the 1870's.
deposits of light grey gypsum, and with
underway to determine the potential of
This 70,000 acres will strengthen the
sandstone and shale that show a prism of
the geothermal springs as a supplementary
Tribal economy and provide an opportun-
colors from bone white to lavender, yel-
heating source for homes and for the
ity for the Tribe's future growth as mem-
low to blood-red depending on the iron
greenhouses.
bers and their off-spring return to the res-
content in the soils.
Winters are short and mild in the Valley.
ervation. Badly needed grazing ranges will
The region is famous for its sandstone
The sun shines 95% of the time; summer
become available; more arable land will
outcroppings, wind-shaped into domes,
temperatures reach slightly over 100 de-
be gained for raising grain and alfalfa, and
pinnacles, caves and face-like cliffs, form-
grees. With its green irrigated fields, its
a site will be provided on the U.S. 15 Exit
ations that gather the immense silence of
cluster of well-built homes, a well-main-
to Valley of Fire State Park where the
the desert to themselves. They are obvious-
tained construction and farming equip-
Tribe intends to build a restaurant, gas
ly sacred, as is the nearby Valley of Fire,
ment yard; its busy community building,
station, and small museum in order to
with its red rock giants and cathedral
leather shop, store, and the impressive
benefit from the thousands of tourists
canyons.
glasshouses reflecting the brilliant light,
who visit the park.
Moapa Band Of Paiutes
PRESENT SIZE
BLM Land Return Request
OF RESERVATION
Of Original Reservation Territory
MUST
Colorado River
Arrow
Desert National
Wild Life Range
Canyon
Range
Virgin Mountains
Hwy.
40
Valley Of Fire
State Park
Original Reservation
1874 Reservation Expansion
1875 Reservation Reduction
18:8n
Present Size
Las Vegas
Lake Mead
Land Return Request, Approximately70,000
acres. Represents 4% of 1873 boundaries.
4
When we were determined to take the
Farm back, many people in the Valley
said we couldn't do it, that we were in-
competent. It WAS hard; we had no
equipment, the fields and ditches needed
work. It took us three years to put the
farm in the black, and it's still a big gam-
ble. Nick the Greek's no gambler compar-
ed to the farmer. Any farmer will tell you.
You can do everything right and if the
market is bad, you'll get busted. Now the
FARM MANAGER - Reuben Tom
farm looks good, but it's always a high
risk business.
- Raymond Anderson
Council Member, former farm manager
FIRST, THE FARM
Mike Ostanik came to Moapa in 1970.
Las Vegas was dismantled and re-erected
An aggressive advocate of Tribal Interests,
in Moapa.
With the formation of the farming co-
Mike was to become the Tribe's planning
Since then, the Tribe has purchased a
operative in 1968, the Tribe began the
consultant and grant writer. He is now en-
neighboring ranch, increasing the irrigable
move towards self-determination. Accord-
gaged by the Tribe through the consulting
land to 725 acres. The original 40 head of
ing to Preston Tom, BIA officials were
firm of Facilitators, Inc.
cattle have grown to 250. Six to eight tons
not optimistic about the Tribe's ability
With Ostanik's aid, the Council was to
per acre of alfalfa, in six to seven cuttings,
to succeed. Twenty years earlier the Tribe
become increasingly skilled in the difficult
and 500 tons in two cuttings of barley are
had attempted to run the farm by them-
process of acquiring federal grants. In
harvested annually.
selves, but they had lost money and had
1973, they were awarded a grant from
The farm was the first testing ground
to go to the BIA for a loan. In 1968, the
the Economic Development Administra-
for the Tribe as managers and workers
Council was determined to try again and
tion which helped to pay for continued
learned to work with the Council in devel-
not be defeated by the past.
farm improvements. Much of the work
oping this cooperative business that now
One hundred thousand dollars was
was done by Tribal members and included
provides employment for five persons.
allocated by the Council from Judgment
five miles of concrete irrigation ditches,
The successful operation of the farm was
monies to purchase farm machinery and
barbed wire fencing, two quonset huts for
to occur gradually and through trial and
begin improvements. This investment was
storage, and a series of corrals built from
error.
a good start, but additional money was
scrap metal pipe. The corrals were ex-
needed to bring the farm to its potential.
panded, and a large machinery shed in
- 5 -
THE
LEATHER SHOP
By 1970, the Tribe was once again
farming its own land, but there was still
a critical need to improve the quality of
life on the reservation and to develop jobs
for those who could not afford to travel
to Las Vegas to work in the hotels at the
minimum wages available. The unemploy-
ment rate was 70% for men and nearly
100% for women, with no opportunities
in the upper Muddy Valley except for
seasonal farm work.
For over 100 years the People of Moa-
pa had suffered the hardships of the dis-
possessed. Alcoholism was a serious threat
to those who sought to escape the defeat
and isolation common to oppressed
people everywhere. The damage to the
spirit of The People was not going to be
undone overnight nor would the Claims
Settlement automatically solve the prob-
lem of putting people to work on the res-
ervation. The Council began planning a
TRANSPORTING THE LEATHERSHOP FROM NELLIS TO MOAPA
wholesale business; a product that could
be marketed elsewhere. In 1972, a small
leather manufacturing company was
the first building. The next was accomp-
crew was to repeat the achievement the
started.
lished speedily, but the third transport
following year when they moved two ad-
In 1973 the Council located three sur-
was a hair-raising endurance contest for
ditional buildings to the Yomba Indian
plus barracks at the Atomic Energy Com-
the crew due to five tire blow-outs in the
Reservation, a journey of 300 miles.
mission's Nevada Test Site. Two of the bar-
dangerously-narrow passes and tempera-
At first the leather company produced
racks were to be converted to the leather
tures in the truck cab that soared to 140
hand-beaded items, hand-tooled vests,
shop. the third became the Senior Center.
degrees.
hats, wallets, and belts, but they soon en-
The long negotiations to acquire the build-
There was much rejoicing over the tri-
countered the difficulty of getting a fair
ings were successful, but moving the 28-ft.
umphant transports, and the intrepid
price for such goods. Then a contract to
X 58-ft., three-ton barracks was to prove a
grueling task, given the 140 miles of
mountainous roads from the Test Site to
Moapa.
With help from Jim Herbert of the
local Teamsters Union, a volunteer crew
transported the barracks by tractor-trailer.
The first trip took two days because of
problems with jacking and tying down
produce CB radio cases was initiated, and
the company began to cover costs.
By mid-1978, the company had handled
more than $100,000.00 in radio case con-
MP
tracts. At that time the Council hired a
manager with extensive experience in de-
sign. A line of fine quality business acces-
sories was developed and is now being
produced and marketed, in addition to
the radio cases. Fifteen people are em-
DELORES LEE
ployed full time in leather manufacturing
at this time.
6
LEARNING
RALEIGH
LIGHTS 100's
BY DOING
Until very recently, few Indian people
had an opportunity to acquire the educa-
tion, administrative, or trade skills needed
for the management of their own business-
es. A major concern has been the training
of workers. Finance Officer, Shirley An-
derson's story is typical:
In 1973, / started here as a secretary
trainee. / could type but that's all. / had
to learn everything. The grants had started
coming in, and we had to have a book-
keeper. Mike Ostanik showed me at first;
he really pressured me to learn. Then, as
we got into the different programs, each
department had to have an account, so /
ended up training four other women to
do what / had learned
Why do / work?
FLORA SIMMONS and customer
Because / don't ever want to be helpless,
to be without job skills or experience, to
I'm an Indian and proud to be one. /
have to take welfare. With all the programs
know some things are being lost: we
there's no reason for a woman to just stay
should try harder to teach the children
home if she wants to learn a skill. Too
the language. But / wouldn't go back to
many times I've seen what happens to a
the old days. For me they were sad days.
woman and her kids if she's abandoned or
My mother died when / was 10. Many of
widowed. That's why / work. Now my
The People died too soon. / took care of
husband respects this and says "stick with
the household and raised my two sisters
it" when / get a little discouraged.
and brother. My father worked hard as a
Now the community offers an increas-
farm laborer for $45.00 a week. We made
ing range of training opportunities. One
it but it was a hard life. There were no
may learn the building trades, leather craft
programs of any kind that would help
design and production, irrigation farming
anyone get along. Now my husband is
and the raising of livestock, greenhouse
dead. My sister is dead. / work and take
horticulture, wholesale marketing; the ad-
care of my son and my sister's three chil-
ministration of the businesses, social, and
dren. / try to teach the children to have
health programs, including bookkeeping,
confidence in themselves. / want all The
accounting, office work, purchasing and
People to have more confidence in them-
retailing for the store, and all facets of
selves.
operation of the nutrition, pre-school, sen-
- Maureen Frank
ior services, and paraprofessional health
care programs. The People have also had
continuing experience in setting goals,
negotiating contracts with local, county,
state and federal agencies, and managing
the resources of the reservation.
In addition to the Tribal Council,
there is the Housing Authority, the Farm,
Education, and Save the Children Com-
mittees, all of which provide Tribal mem-
bers with experience in local administra-
tion. Without the willingness of those
who work hard at acquiring the expertise
needed to run the businesses and programs,
none of the successes at Moapa could
have occured.
KENNY ETSITTY and ALLEN DRYE
7
CONSTRUCTION CREW AT WORK
CREATING THE
Preston said, "Four hundred dollars
a unique agreement with the 7-11 food
can't move dirt - the loader can,' a re-
chain corporation.
CONSTRUCTION
mark that was reflective of the Council's
Thus the highly resourceful manage-
progressive and practical attitude to equip
ment of this grant rendered the Tribe
COMPANY
the company so that the Tribe could do
much more than the structure itself; a
their own work rather than pay outside
more aesthetic building (handsome tile
contractors.
floors, decorative brickwork, a mural de-
Since the early 1970's the Tribe has
In 1976, working with a EDA grant on
sign on the inside walls); the store, an im-
employed 10 to 15 men in a variety of
a force account basis rather than putting
portant economic asset serving over 1,000
construction projects including most of
it out to bid, the Moapa Company was
area residents - Indian and non-Indian
the farm improvements, the Community
able to do 90% of the work on the 7,000
alike and employing six persons; a better-
Building and store, housing construction
square foot Community Building. The
trained construction crew; a batch plant
and rehabilitation, and the Head Start
Council managed the grant in such a way
and a cement truck, and the community
Center. Instead of the formal apprentice-
that they were able to save enough money
spirit of many members who helped how-
ships available in urban areas, the con-
to add another 1,000 square feet to the
ever they could.
struction workers have received on-the-
original dimensions and to pay for a ce-
The Community Building is a symbol
job training with each project.
ment truck.
of the determination of the Council to
The Company's solution to the high
The Tribe acquired a surplus batch
use every self-help measure possible in the
cost of the equipment needed for this
plant which they used to produce the ce-
efficient development of the reservation.
work was to aggressively seek out good
ment needed to construct the building.
The Construction Company now has a
surplus equipment, primarily from the
Then they got a bank loan, purchased a
licensed manager and is able to bid on off-
Nevada Test Site. This recycling of used
good used nine-yard cement truck and
reservation contracts. They are also assist-
machinery has enabled the Company to
sold themselves cement at a lower price
ing in the specialized construction of the
acquire a full complement of equipment
than they could have gotten it through
greenhouses. With an increasingly skilled
ranging from a drill rig to a concrete batch
any other supplier. The money thus saved
crew, a good selection of equipment, and
plant.
on the construction grant allowed the
the management experience of the last
Mike Ostanik recalls the Council's first
Tribe to add the extra footage which pro-
decade, the Construction Company prom-
decision in 1971 to purchase a used front-
vided space for the store.
ises to continue as a valuable source of
end loader for $400.00 from another
Training for store personnel and dona-
training and employment for Moapa
Tribe:
tions of certain items was arranged through
residents.
- 8
HOUSING
THE PEOPLE
Agnes Hanks, one of three women
Council Members, recalls the housing con-
ditions at Moapa before the Tribe began
construction of the 42 slump stone and
cinder block homes built since 1970.:
All the homes were one or two room
shacks. We put canvas over the windows
to keep out the cold. In some there were
no floors. We drank the water from the
MOAPA HOMES 1979
ditch. There was no plumbing, no insula-
tion. We heated with wood. Later there
was some electricity. Some homes were
very crowded because it is the Indian way
to take in the family members who need
a place no matter what. We were very
poor, but we worked hard to help build
the houses and the Community Building,
the women alongside the men. We are
proud to have these nice buildings. We
worked together and we had fun.
Construction began in 1970 with a
grant from HUD of 15 mutual help homes.
Each family contributed 500 hours in la-
bor. Then in 1973, 17 more self-help
homes were built, and in 1977 the Moapa
Construction Company was awarded the
bid on another 10 homes. In March of
1979, an additional 42 units were approv-
ed by HUD. These will serve single persons,
some elderly, and some small families.
Sewage collection lines and a settling pond
were installed with the first construction
in 1970.
Not only did the housing construction
involve the labor of many members, it also
provided the Moapa Construction Compa-
MAUREEN FRANK AT HOME
ny with a valuable opportunity to become
skilled in the building trades and as man-
agers of materials and labor costs. After
construction of the first 32 homes, the
Tribe received a HUD grant to build addi-
tions for nine large families, to provide
forced air heaters and additional insula-
tion. The Housing Authority was appoint-
ed in 1969 to handle housing concerns
and plan for future growth.
John Lee, Council Member and Assist-
ant Manager of the greenhouse, made this
observation about the effect of the
housing:
Before we built the homes, people
were scattered up and down the valley.
The north end feuded with the south end
and cooperation was difficult. But we
built the homes closer together and after
a while, The People forgot the old differ-
ences and learned to get along. In many
ways, this helped us to cooperate in other
THE HOUSES ARE 28' X 45' WITH ADDITIONS OF 26' X 12'
efforts.
- 9 -
THE CENTER
The Community Center houses the
Tribal business offices; a social hall (which
has also served as the Head Start Center),
a fully-equipped kitchen, a small clinic,
and the grocery store. The building was
dedicated by former Nevada Governor,
Mike O'Callahan, on Labor Day, 1976 -
a day of proud celebration for the Moapa
Tribe.
Education programs are conducted for
adults as well as for children and include
classes in cooking and nutrition, account-
ing and secretarial skills, management
training for the Council, parent-student
workshops in child guidance, family com-
munication, school problems, grooming
and health. There is also a drug abuse and
alcoholism prevention program. Many of
the older people were forced to leave
school early because of poverty; they are
Left to Right: IDA MAE BENN, MARLENE GRAYMAN,
strongly committed to improving educa-
SHARLENE WISESPIRIT, FRED KING, SHIRLEY ANDERSON,
tional opportunities for the children.
The Tribe sponsors a K-6 summer
JAMES TONER, MAUREEN KOPREN and LEE FISHER
school, with lunches, for 60 children. The
purpose of the summer school is to help
resolve the cultural and language prob-
lems that Indian children encounter in
public schools in Overton to which the
children are bussed round-trip 60 miles
each day. The Tribe hopes to build a
school on the reservation, not only for
its own children, but also for the other
children in the Valley who have to travel
so far from their homes.
A new center was built in early 1979
for the Head Start Program which regu-
larly serves 19 children, and the Education
Committee is now seeking funding to build
a gymnasium and to provide more recre-
ation for the young people. The commit-
tee is also attempting to establish a high
school equivalency program.
Health care is offered in cooperation
with the Indian Health Service. These in-
clude immunization clinics, Women and
Infant Care, routine health screening, and
a rabies clinic. Some emergency care can
also be provided.
Because the nearest full-service hospital
is 50 miles away, the Tribal Health Ser-
vice is essential to the well-being of The
People. A mobile dental care unit visits
the reservation for two months each year.
With funding assistance from the Indian
Health Service, the Tribe has hired a health
planner who is doing a complete health
evaluation of the people so that the Coun-
cil and the Education Committee may de-
sign the best possible services and
education.
Also located in the Community Center
is the store, which does $500 to $600
GREENHOUSE DEDICATION BANQUET - FEBRUARY 18, 1979
worth of business each day, employs three
full-time and three part-time youth work-
ers, and serves 1,000 area residents. Be-
gun in 1973 in the leather shop, the store
has been an increasing success and the
Tribe is now planning an enlarged facility.
- 10
HEADSTART PROGRAM AT THE CENTER
The Hall is the site of the Tribe's fest-
ivities. Community parties, weddings,
showers, christenings, dinners, movies and
holiday celebrations takeplace throughout
the year.
Louella Tom is the manager of the store
and the coordinator for activities held in
the Community Center. She is a member
of the Western Nevada and Phoenix Area
Health Board, former Clark County Chair-
person for Indian Education, and chair-
person of the Moapa Housing Authority.
An extremely busy and competent woman,
Louella Tom says this about the Tribe's
aspirations:
We are trying to work towards a time
when we don't need to go away from the
reservation for employment. We want to
stress education for our young people so
that they may become the managers of
these programs.
Of her own commitment to the wel-
fare of the Tribe, Louella says:
If you think you are the kind of per-
son who can do what is needed, you have
to step forward. We all must do this, not
just to survive, but so that we may live
well together.
Louella is one of three women elected
to the Council. She provided this insight
into the leadership roles played by women:
During the 1950's, many men - and
many babies - died. We don't know from
what because there was no health service
then, probably diptheria and pneumonia.
The widows had to work very hard in the
onion fields to provide for the children
and the old ones. They had to be willing
to speak out and try to work together to
help make the reservation a better place.
Equality in marriage among the Indian
People depends on individual personali-
RAMON PRECIDO and LALOVI MILLER
ties, but many women have been respect-
ed for their wisdom.
- 11 -
THE GREENHOUSES
SECOND GREENHOUSE UNDER CONSTRUCTION
SOME OF THE WORKERS - Sandra Bushhead, Alberta Lee, Maxine Etsitty,
VISTA Worker Laura Colter, Tony Zubia and Agnes Hanks
- 12 -
By 1976, the Tribe had succeeded in
creating jobs in leather manufacturing,
construction, the store, and in the admin-
istration of the social and health services,
but this was still not enough. The Council
began serious explorations to find a per-
manent, year-round employment oppor-
tunity that would have a good chance to
become profit-making in a reasonable
time and still be compatible with the exist-
ing way of life. Because farming was tra-
ditional with the Moapa Paiutes and many
had been employed in field cropping dur-
ing the 1950's and 1960's, agriculture was
a logical choice.
Through friends of the Tribe, the
Council was introduced to a young horti-
culturalist named Harold Goldsmith - a
man who was to play a major role in the
events of the next few years. Mr. Gold-
smith had just returned to Nevada from
Israel where he had studied and partici-
pated in the development of a successful
greenhouse tomato growing and packing
enterprise. With his assistance, the Tribe
began studying the adaptability of the
greenhouse concept to Moapa.
Conditions were favorable: abundant
sunlight, moderate climate, the possibility
SANDRA BUSHEAD
of a heating source in the geothermal re-
serves, the location of a near-by power
plant, a labor force that understood grow-
ing and harvesting, and a potential market
in the Las Vegas area of 45 tons per week.
However, the undertaking was a major
one in that planning would have to be
done for an eight to ten year period dur-
ing which some 15 acres under glass would
have to be put into production in order
for the Tribe to realize the goal of a self-
sustaining business with the capacity to
employ 75 people year round.
In addition, the training of a work force
in the specialized technique of cultivation
would have to occur simultaneously with
construction. Funding assistance would
be needed in the first stages of construc-
tion of seven and a half acres of glass
houses scheduled for the initial three-
year period.
By this time, the Tribe had benefitted
from past errors and successes in the other
enterprises. In 10 years they had develop-
ed a trained and well-working central staff,
and on the basis of this cumulative ex-
perience, the Council was prepared for
the long-term endeavor of the glass house
industry.
Then, in the Fall of 1977, the Depart-
ment of Labor offered grants on a com-
petitive basis nationwide to initiate self-
sustaining Indian enterprises. The Tribe
decided to apply to DOL for a two-year
training program for 35 persons. This
application was funded and the training
began in February, 1978, even though
funding for construction of the first sev-
ASSISTING IN THE TOMATO HARVEST - MAXINE ETSITTY
en and a half acres of glass houses could
- 13 -
not be secured through a grant from the
Department of Housing and Urban Devel-
opment until the Fall of 1978.
Harold Goldsmith was hired as instruc-
tor/grower, John Lee, a respected Tribal
member known for his industriousness,
was selected as assistant manager.
The Tribe had to decide in the Spring
of 1978 whether to proceed on its own
with the financing and ordering of the
first half-acre greenhouse or to delay until
the awards could be announced for the
HUD competitive grants. A delay would
have had serious consequences to both
the training program and the long-term
schedule for the business to become self-
sustaining.
The Tribe committed itself and made
the arrangements to finance the first half-
acre house through a commercial bank
loan without guarantees that HUD would
actually cooperate in the project. Mike
Ostanik then wrote the proposal for HUD
funding of the subsequent development
of seven acres. The Tribe was funded for
1.47 million dollars - one of only two
three-year comprehensive economic devel-
opment grants awarded in California, Ne-
PRESTON TOM, Tribal Council Chairman and
vada and Arizona.
MIKE OSTANIK, Tribal Planner
After a lengthy debate, Council Mem-
ber Maureen Frank summed up the risk:
Life is a gamble; we gambled when we
THE GROWERS SAY:
started our leather shop; we gambled
It's a quiet place to work
the physical work has been good for me, not so
when we started our construction comp-
strenuous that / am dead at night. / am in better shape than / have been in years
any and our store. Now we are faced with
The green plants over my head make me feel at peace
The greenhouse is a living
another choice and what can we do? We
being!
are betting on ourselves and we have to
go ahead.
Harold Goldsmith and John Lee travel-
ed to Europe (funded by Tribal monies) to
study the innovative peat-bag system of
growing tomatoes. Meanwhile, Council
Members, the business manager, the plan-
ner, and the trainees toured various green-
house projects in California and Arizona.
As fragile as glass at first, the greenhouse
concept was rapidly becoming a reality.
The components for the first green-
house arrived in July to be assembled on
SIFIMELY!
the Moapa site by the Moapa Construction
1
YES ONLY
Company with assistance from two expert
Irish glaziers and a Dutch welder who sup-
ervised the installation of the pipe-heating
system. Construction was completed in
the Fall of 1978.
Having seen the success of the peat-bag
method of cultivation in a number of Irish
and English glass houses, Harold Gold-
smith instigated its use at Moapa. The sys-
tem results in a 20% to 40% higher yield
over other methods and eliminates both
disease build-up and the expense of soil
sterilization because new bags are used
annually. Each bag is approximately three
feet long by 12 inches wide and is filled
HAROLD GOLDSMITH, JOHN LEE, LORETTA MIKE (Secretary)
with sterilized peat. Three plants are put
and FRED MILLER
in each bag and fed through a drip irriga-
tion method. Goldsmith believes Moapa
is the first greenhouse in the U.S. to use
this method, first developed in Ireland in
1973.
- 14 -
While the greenhouse construction was
underway, some 6,400 plants had been
propagated in a temporary shed. Then
one afternoon in late October, at quitting
time, with a storm-menacing sky above,
workers hurriedly transferred all 6,400
plants into the nearly completed house.
The violent storm that ensued would
have dissolved the peat blocks and de-
stroyed the first seedlings, now safe in the
greenhouse: the adventure had truly begun.
By January 1979, the first crop of
Jackpot Brand Tomatoes was being har-
vested, and construction had begun on
the second glass house (an imposing two
and a half acres). The Tribe engaged a na-
tionally-recognized firm to detail a specif-
ic marketing plan. On February 18, 1979,
over 300 Tribal members and well-wishers
gathered at Moapa for a banquet and ded-
ication ceremonies of the Greenhouse
Project. Senator Howard Cannon, a long-
time supporter of the Tribe, was the guest
of honor. The triumph was in the high-
climbing red fruit of the bright green
vines.
GREENHOUSE OPENING CEREMONIES: PHILBERT SWAIN,
COLLETTE SWAIN and NEVADA SENATOR HOWARD CANNON
POSITIVELY!
NO
ONLY
WORKER TONY ZUBIA - OUTSIDE VIEW OF COMPLETED GREENHOUSE
- 15 -
THE FUTURE
While the Moapa Paiutes stand proudly
in the light of their accomplishments,
they are not a boastful people. Members
speak openly of problems yet to be solved.
Many are deeply concerned over the effect
of Indian General Assistance, a federally-
funded welfare program administered by
the BIA which is not subject to the Coun-
cil's control.
The intent of the program was to assist
those who are unemployable or in crisis,
but Raymond Anderson points out that
it is so easy to qualify that some persons
take IGA instead of trying to work at ex-
isting jobs or taking part in the creation
of new ones. Critics believe that IGA
serves as a financial crutch that aggravates
the problems of those susceptible to
SHAWNA KAY SIMMONS
alcoholism.
Also, while there are growing oppor-
tunities on the reservation, some members
feel their jobs are too dependent on fed-
eral programs such as CETA.
Everyone agrees there is a need to pro-
vide more activities and recreational choic-
es so that The People may find ways of
entertaining themselves besides drinking.
And sometimes the old ways seem better.
Irene Benn regrets that so few children
speak the Indian language. Ray Anderson
recalls his childhood as a time when, in
spite of extreme poverty, there was more
solidarity among the members than he
now sees. Some feel too much may be
happening too soon.
So there are heartaches and questions
on the Moapa Paiute reservation, but
no one denies that the old people are well-
cared for, that all the children are cherish-
ed, that the homes are comfortable and
well-kept, that the staff cooperates with
dedication to work well-done, and that
more and more of those who have left the
CANDACE GRAYMAN, BRYSON DRYE, NICHOLE JOHN
reservation return now with their children
and LALANIA BENN
to join in the restoration of the life of the
Moapa Paiute People on the banks of the
warm Muddy River.
TRIBAL MISSION
STATEMENT
OUR MISSION IS TO ADVANCE
THE MOAPA BAND OF PAIUTES AND
PRESERVE THEIR HOMELAND BY
BUILDING AN INDEPENDENT AND
SELF-GOVERNING COMMUNITY
THAT PROVIDES AN OPPORTUNITY
FOR ALL PEOPLES WHO HAVE MADE
A COMMITMENT TO THIS MISSION.
IRENE BENN
- 16 -
ANTHONY FRANK
JERRY SEGUNDO
MONTE SAMSON, URAL BEGAY, DENNIS BEGAY
VERMA LEE and TOPSY SWAIN
- 17 -
CLYDE LEE
AGNES HANKS
1st row, left to right: JERRY TOM,
FERLIN GRAYMAN, NICKI JACKSON,
ROBERT DABODA, FREDINA DRYE,
ONA SEGUNDO, and SELOND ROW.
2nd row: ARLAND LEVI, DARRIN
DABODA, LAURA MIKE and FRANKIE
DABODA.
3rd row: ROGER LEVI, MARIO MAR-
TINEZ, LEE LEVI, MONTE SAMSON,
RICHARD FISHER and MICHELE
GRAYMAN.
- 18 -
GREENHOUSE DEDICATION 2/19/79
BELINDA ANDERSON
KENNY ETSITTY, ROBERT ToM,
ALLEN DRYE
FARM WORK
LUNCHTIME DAYCARE
- 19 -
QUILT MAKING
NATALIE DAWAHOYA
PAST & PRESENT
- 20 -
Why the North Star Stands Still
All of the stars in the sky are living beings. These stars are called poot-see by the
Indian people. They are restless and travel around and around the heavens. Some are
birds who go away for a long time and then come back. Some are animals who are
hunting better grass as they roam the sky trails following the feed and the good weather.
But one great star does not travel. He is Qui-am-i Wintook, the North Star. He can-
not travel. There is no place that he can go. Once he was Na-gah, the mountain sheep,
on Tu-weap, the Earth. He was the beloved son of the great God Shinob. He was daring,
brave, sure-footed, and courageous. Shinob was proud of him and made him look dig-
nified and commanding with great curling horns.
Na-gah was always climbing and climbing. He hunted out the roughest and highest
mountains, and there he lived and was happy. One day very long ago Na-gah found a
very high peak that reached far into the sky. Na-gah looked up and said, "I wonder
what is up there? I will climb to the highest point." The cliffs were very sheer all around.
Na-gah thought and went round and round the mountain.
At last he found a crack in the rock that went down and not up. Down into the
crack he went. Finally he found a hole that turned up and his heart was glad. Up and
up he went in the darkness. He slipped often and bruised and skinned his knees. He
was afraid. Never had he seen such darkness. He grew tired and tried to go back. He
said, "I am not afraid of the open cliffs, but this dark hole fills me with fear." But the
rocks had crushed behind. He could not go back the way he had come.
At last he saw a little light above him and knew he was coming out.
He climbed and climbed and when he came out he was on the very top of a very
high peak. There were great cliffs all around and only a very small space for him to
move around. The cliffs were too sheer for him to climb down and the cave was closed
on the inside.
"Here," he said, "I must die, but I have climbed my mountain." He was higher than
all the mountains and he could look down over Tu-weap, the Earth.
Na-gah's father, Shinob, was walking all over the sky searching for his son. He called
loudly and at last Na-gah answered him from the high peak. Shinob was sorrowful for
he knew Na-gah could never come down.
"My brave son can travel and climb no more. He must stand on that little spot. I
will not let my brave son die. I will turn him into poot-see, a star, and he can stand
there and shine where everyone can see him. He shall be a guide mark for all the living
things upon the earth and in the sky."
It was even so. Na-gah became a star that every living thing can see and the only
star that will always be found in the same place. Always he stands still. He does not
move around as the other stars do and because he is in the true north, the Indians call
him Qui-am-i Wintook Poot-see, the North Star.
This is an abbreviated version of the legend as it was recorded by Dr. William Palmer
in Why the North Star Stands Still and Other Indian Legends. The book is now available
in paperback through the Zion Natural History Association, Springdale, Utah 84767,
$2.50 each (or $1.75 each for 10 or more). Dr. Palmer was adopted as a member by
the Coal Creek Band of Paiutes in 1926 and spent over 20 years collecting and record-
ing the stories of the Paiute People.
STATE
AAAAAAAAA
EMPLOYMENT
INDIAN AND NATIVE
TRAINING
AMERICAN
EMPLOYMENT & TRAINING
Clay LaCount
Affiliation of Arizona Indian Centers
2721 North Central Ave. Suite 910
Phoenix, Arizona 85004
June 5, 1982
Ms. Maiselle Shortley
Office of Morton Blackwell
Special Assistant to the President
for Public Liason
Old Executive Office Building
Room 191
17th and Pennsylvania Ave. N.W.
Washington, D.C. 20500
Dear Ms. Shortley:
Please be advised that I am in receipt of the attached letter from
President Reagan which will be placed in the Conference Program Book
for our up-coming August Conference.
On behalf of the National Planning Committee for the Third National
Indian and Native American Employment and Training Conference I wish
to express to you our deep appreciation for assisting us in obtaining
this welcome letter.
I personally thank you as well, and if there is ever anything I might
be able to assist you with I hope that you will feel free to call upon
me.
Sincerely,
Clay Clay LaCount dolout
THE WHITE HOUSE
WASHINGTON
June 1, 1982
COPY
I wish to extend my best wishes and warm regards
to everyone attending the Third National Indian
and Native American Employment and Training
Conference.
Over the years you have played an important role
in heightening national awareness of the special
needs and problems of Indians living on and off
the reservation. You have also promoted the
social and economic self-sufficiency of American
Indians and Alaskan Natives by providing thousands
of jobs while simultaneously furthering apprecia-
tion of the unique culture of their tribes and
villages.
As this Administration seeks to implement our New
Federalism, your leadership can play an important
role in reaching the goal of returning responsi-
bilities and resources to the people. As you know,
my Administration is committed to upholding the
trust responsibility and maintaining a government-
to-government relationship with Indian tribes. I
am also aware of the need to secure job opportuni-
ties for Native Americans who live on and off the
reservation. Your support of our efforts to
restore this nation's economic well-being will
help lay the foundation for realizing the hopes
and dreams of all Americans.
You have my best wishes for a most fruitful and
enjoyable conference and for every success in
the years ahead.
COPY
Ronald Reagan
Membership Requirements
1981-82 Officers
- Registered Republican
PRESIDENT
- American Indian descent
TED BRYANT
CHOCTAW - CHEROKEE
- Support the special sovereign nation relation-
ship between the United States and American
FIRST VICE-PRESIDENT
Indian tribes and nations
LOUIS R. BRUCE
- Support the treaties and trust relationship
OGLALA SIOUX - MOHAWK
between the United States and American
Indian tribes and nations (i.e., government-to-
SECOND VICE-PRESIDENT
government relationship)
GRACE GOODEAGLE
- Support the concept of self-determination as
QUAPAW - POTAWATOMI
enacted in PL 93-638
SECRETARY
- Support the goal of economic self-sufficiency
and social development for Indian tribes and
JEANNE WASILE
nations
BLAKFEET - WYANDOTTE
- Support the basic philosophy of the Re-
TREASURER
publican Party
ANDREW AKINS
Dues: $15 per year (individual)
PENOBSCOT
American Indian
National
Republican Federation
National
Republican
Heritage
Groups
Council
The New Beginning
Voting Strength
For the first time, American Indians are banding
The latest count of the American Indian nations
together for the express purpose of taking part in
shows almost a million and a half Americans of
the political process at the national level. In 1981,
Indian heritage who would be eligible for AINRF
at the National Convention of the National Re-
membership. There are concentrations in a hand-
publican Heritage Groups Council, the American
ful of states - California, Oklahoma, Arizona,
Indian National Republican Federation (AINRF)
New Mexico, North Carolina, Alaska, Washington,
was formed. Officers were elected and bylaws
South Dakota, Texas and Michigan - but there
established.
are Indians in virtually every American city.
AINRF's members provide a consistent Indian
Involvement
voice in Republican Party policy councils. Make
your voice heard by joining AINRF today. The
AINRF's aim is to help the Indian peoples become
original Americans have been silent too long.
involved in the political process. As your in-
This is your opportunity to take part in the
volvement increases, politics will be less of a
decision making process that can affect all of our
mystery and more of a tool to reach your goals.
futures, as Indians and as Americans.
AINRF will provide resource people to the
Tribe:
AINRF objectives include the development of an
National Republican Heritage Groups Council,
administration Indian Policy and the implemen-
the Republican National Committee, internships
tation of that policy with the assistance of an
for Indian youth, and outreach to Indinan peoples
"American Indian Advisor". Further, we uphold
nationally with focus on voter registration and
election information, and general assistance and
The special sovereign nation relationship
referral to the Indian constituency.
between the United States and American
Indian tribes and nations;
Annual meetings will be held each spring to keep
AINRF in tune with the changing needs of the
The treaties and trust relationship between the
community it represents.
United States and American Indian tribes and
nations (i.e., government-to-government
relationship);
The concept of self-determination as enacted
in Public Law 93-638,
social development for Indian tribes and
Yes! I'd like to join the American Indian National Republican Federation
nations.
Telephone:
Mail to: Jeanne Wasile, Secretary
American Indian National Republican Federation
The goal of economic self-sufficiency and
Yes! I'd like to receive the NRHG Publication, COP Nationalities News.
NRHG Council
310 First Street, S.E.
P.O. Box 28327
Washington, D.C. 20005
Name:
Address:
Remarks:
UAPAW TRIBE OF OKLAHOMA
P. O. BOX 765
QUAPAW, OKLAHOMA 74363
August 18, 1982
Mr. Morton C. Blackwell
Special Assistant to President Reagan
White House
Re: White House Meeting of Tribal
Washington, D.C. 22025
Leaders and Industrial Companies
Dear Mr. Blackwell:
This letter is in regard to your proposed "White House Meeting of Tribal Leaders
and Industrial Companies."
Congressman Mike Synar of Oklahoma relayed information to me that our tribe should
write you stating, "the Quapaw Tribe of Oklahoma wishes the Chairman of the tribal
business committee to attend the above referenced meeting."
The Quapaw Tribe has a industrial tract located northeast of Miami, Oklahoma. We
are currently in the process of leasing the tribe's industrial building, which was
constructed through an LPW II grant, to a local industry for a period of at least
ten years. Upon final approval by the Bureau of Indian Affairs, on the lease, will
become the first industry to occupy our building, since negotiations with several
other firms began two and one-half years ago.
Our industrial tract has sewer lines, sewer lagoons, a water storage tank with a
capacity of 270,000 gallons, also, water lines installed in all of the industrial
tract lots. We have a total of 110 acres in the industrial tract which can be
expanded.
It is my understanding this meeting will take place in early September. We would
indeed be honored, if you would consider the Quapaw Tribe of Oklahoma, as one of
the participants at this meeting.
If you have any further questions please contact me at the Quapaw Tribal Office.
(918-542-1853)
Sincerely,
Jesse McKibben, Chairman
Quapaw Tribal Business Committee
NORTHERN CHEYENNE PLANNING COMMITTEE
NORTHERN CHEYENNE PLANNING OFFICE
P.O. Box 128
LAME DEER, MONTANA 59043
(406) 477-6284 477-6703
August 13, 1982
Morton Blackwell
Room 191
NORTHERN CHEYENNE
OEOB
PLANNING COMMITTEE
White House
Ben Limberhand, Chairman
Washington, D.C. 20500
James Robinson, Vice-Chairman
Daniel Foote, Secretary
Dear Mr. Blackwell:
Matthew Two Moons, Member
Burt Medicine Bull, Member
I have been informed of a White House conference
ADMINISTRATION
bringing Indian leaders and certain Corporation repre-
DIRECTOR
sentatives together to discuss economic development and
Duane Hatnenn
the creation of jobs on Indian reservations scheduled
ASSISTANT DIRECTOR
in last August.
Sandra Spang
I would like to be put on the invitation list for
this conference.
Presently, I am the Assistant Director for the
Northern Cheyenne Planning Office. Our Tribe is en-
gaged in a nation wide mail campaign inviting Corpor-
ations to our reservation for the purpose of bringing
jobs to the reservation for the Northern Cheyenne people.
Sincerely,
Sandra Sandra P. Spang P. Spang
Assistant Director
SP/wy
COMPUTER DEPARTMENT
PLANNING DEPARTMENT
Herman Bearcomesout, Coordinator
Jennie LaFranier, Coordinator
ECONOMIC DEVELOPMENT DEPARTMENT
Bertha Medicine Bull, Coordinator
RESOURCE AND DATA DEPARTMENT
ENVIRONMENTAL AFFAIRS DEPARTMENT
Doris Beaumont, Coordinator
William Sullivan, Coordinator
COUSHATTA TRIBE OF LOUISIANA
P.O. BOX 100
ELTON, LOUISIANA 70532
(318) 584-2242
(318) 584-2243
ERNEST SICKEY
Chairman
July 30, 1982
Mr. Morton Blackwell
Special Assistant to the President
The White House
Washington, D.C.
Dear Mr. Blackwell:
I am very interested in being a part of the proposed conference on economic
development and the creation of jobs on Indian reservations.
The Coushatta Tribe is exploring ways now to plan and develop their own
resources for its membership and this meeting would be timely in gathering
ideas and planning accordingly.
My interest also is to represent the Inter-Tribal Council of Louisiana,
representing four other tribes and groups within our state. The conference
will allow me to return and share the information on how we may deal with our
interests as individual tribes or collectively.
I look forward to hearing from you as you proceed on your planning for this
conference.
Sincerely,
ETARY Tribal Chairman
Ernest Sickey
ES/prl
"JOURNEY OF PROGRESS"
liill
am
1011
FAIRBANKS NATIVE ASSOCIATION, INC.
IIII
3101/2 First Avenue
The
Fairbanks, Alaska 99701
IIII mill
LIII
UUIII
IIII
nm
Phone: (907) 452-1648 / 456-5151
July 30, 1982
Mr. Morton Blackwell
Presidential Assistant
The White House
Washington, D.C.
Dear Mr. Blackwell:
We noted in the Bureau of Indian Affairs' Indian News Notes that
there will be a White House conference in late August concerning Indian
economic development, to be coordinated by you. FNA has just been
funded for two projects in economic development, one for long-range
planning and one for business development. If the opportunity exists
for FNA to participate in the conference, we would be interested; if
not, we would be very interested in copies of any reports from the
conference.
Thank you.
Sincerely,
Elizabeth L Monis
Elizabeth L. Morris
Executive Director
ELM:cac
ADMINISTRATION
SOCIAL SERVICES
ALCOHOL AND DRUG ABUSE SERVICES
452-1648 or 456-5151
452-1648
ACCOUNTING
Counseling Services
Director
Drop-In Center
452-1648
452-1648
452-1648
456-7948
JOHNSON O'MALLEY
Child Welfare
CAP Detox Center
Out-Patient Services
EDUCATIONAL PROGRAM
452-1648
456-1053
456-1041
452-1648
Work Experience Counselor
CAP Treatment Center
Court Counter-Measures Program
452-1648
456-1045
456-1101
Family Focus
CAP Halfway House
Youth Drug Abuse Program
452-1648
452-8761
452-5085
M
MOTOROLA INC.
Government Electronics Division
July 28, 1982
Ms. Maiselle Shortley
White House
Washington, D.C. 20500
Dear Ms. Shortley:
Thank you for taking time on the phone with me today. I will
try to describe for you our several involvements with the local
Indian Community.
Firstly, to sort of scope things for you, we are the Govern-
ment Electronics Group of Motorola Inc. This Group, with head-
quarters in Scottsdale, Arizona, is involved almost totally in
Defense and Aerospace electronics. We have nearly 6000 employees
in several plants in this area.
To the east of us, only a block or two away, is one boundary
of the reservation of the Salt River, Pima-Maricopa Indian
Community. This is a 55,000 acre reservation that is said to
be the largest in the United States that is contiguous with
urban areas.
We have three programs going with this Indian Community, and
I will briefly describe each.
1. Lease of 50,000 Square Foot Warehouse
We had always leased warehouse space and knew that we prob-
ably always would do so. About two years ago in looking at
our existing leases and needs, we thought it would be great
if we could have a single warehouse instead of several
scattered small ones. We also were seeking ways to increase
our spending with disadvantaged groups in order to meet our
obligations under Public Law 95-507. These two desires
came together in an idea to approach the Indian Community
and see whether they would build a warehouse for us on their
nearby land and enter into a long-term lease. Everything
worked out and we have been using the warehouse for about
a year. I believe both sides are pleased and I know that
the structure is a source of pride to the Indian Community.
8201 E. McDowell Road, P.O. Box 1417, Scottsdale, Arizona 85252 (602) 949-3033
M
Page 2
Ms. Maiselle Shortley
July 28, 1982
2. Antenna Testing Range
Because of the rapport due to the warehouse, we recently
signed a lease on 16 acres of Indian land to use as an
antenna test range.
3. Job Training
Again because of the rapport we have, we asked the Indian
Community to select a slate of applicants for training for
entry level technical positions with us. We were amazed
at the quality of applicants and have since increased our
needs.
I have only highlighted each of these situations. Behind each
is much more information and "color." For example, the ware-
house groundbreaking is a story in itself with speeches, prayers
in the Indian language, and a reception with local food, etc.
Any contact you may wish to make with the Indian Community should
be to:
Mr. Herschel Andrews
President, Community Council
Salt River Pima-Maricopa Indian Community
Route 1, Box 216
Scottsdale, AZ 85256
My previous contact from Washington had been Mr. Vince Lachelli.
I realize he is no longer associated with the conference project
and the basic conference theme may also have changed. At the
time, however, we had been discussing our role as giving a brief
presentation with appropriate visuals to demonstrate what can
be done even in a small way.
If I can be of any service, please advise.
Very truly yours,
MOTOROLA INC.
2.1.Ceine
Robert F. Kline
Director
Support Operations Staff
ac
Motorola Inc. Government Electronics Division 8201 E. McDowell Rd., P.O. Box 1417, Scottsdale, Arizona 85252
To Mo RTON
Date 5/17
Time
WHILE YOU WERE OUT
M Richard Sittzen
Phone 913 539 3565
of Consulting ECONOMIST
Area Code
Number
Extension
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message PSI
Development PLANNING
ReseARCH ASSOCIATES
MAN HATTAN KANSAS
WANTS TO Be Operator INVOLVED
AMPAD IN INDIAN ECONOMIC
EFFICIENCY
MeeTING 23-020 IF Possible
Probably not
unless invested by
BIA on
In this issue:
THE
UNITED NUCLEAR CORP. announced Apr. 30 it is
suspending uranium production at its two Church Rock
mines and mill located on the eastern sector of the
Navajo Reservation, laying off over one hundred Navajo
workers.
Page 1
DIRECT COMMERCIAL TIES between Taiwan and
CERT
CERT energy tribes may be in the offing as a result of a
March series of meetings in Taiwan between govern-
ment officials there and a delegation of CERT tribal
representatives.
Page 2
REPORT
THE 1982 WORLD'S FAIR in Knoxville, Tenn. includes
'A Time of Opportunity,' a full-color exhibit depicting
the story of American Indian resource tribes.
Page 3
Council of Energy Resource Tribes
ASSESSING TRIBAL ECONOMIES with their strengths
and weaknesses and the need for capital development
Vol. 4, No. 6
May 17, 1982
was the focus of special hearings in the capital Apr. 29
before the Senate Select Committee on Indian Affairs,
and the testimonies are condensed here and printed for
UNC Will Close
their significance.
Page 4
INTERIOR SOLICITOR WILLIAM COLDIRON has
Church Rock Uranium
rejected Nevada Sen. Paul Laxalt's initiative for revoking
Interior's approval of a comprehensive tax ordinance
Mine on Navajo
enacted by the Pyramid Lake Paiute Tribal Council of
Nevada.
Page 13
Reservation in N.M.
INDIAN WATER DEVELOPMENT is a key compo-
nent in the economic development plans for many
CHURCH ROCK, N.M.-United Nuclear Corp.
Indian reservations, and particulars of these plans are
(UNC) announced Apr. 30 it is suspending uranium
discussed by Jonathan P. Deason, acting chief of the
production at its two Church Rock mines and mill located
Division of Water and Land Resources for the Bureau of
on the eastern sector of the Navajo Reservation in New
Indian Affairs.
Page 15
Mexico's McKinley County within the Grants Mineral
Belt.
REP. JAMES HANSEN of Utah, a freshman congress-
man who briefly toyed with the idea of the abrogation of
Tom Bailey, general manager of UNC's New Mexico
Indian treaties, has apologized by letter to the Uintah and
operations, said it was "significant that this is a stand-by
Ouray Business Council of Utah and also by letter has
operation and not abandonment of the property. This
withdrawn his request for a fresh Interior review of the
will allow us to bring back the property as rapidly as
treaty abrogation proposal.
Page 17
possible."
One of the major factors in the UNC decision to place
the Church Rock properties on stand-by was the low spot
TEXTS OF HANSEN LETTERS
Pages 18, 19
market price of uranium, which is now at $22.50 per
pound, coupled with the rising costs of production. The
Church Rock properties will continue to be maintained
IN BRIEF
Page 20
so that they can again become active when market
White House Meeting on Indian Employment
conditions improve, said Bailey.
CERT Offers Summer Studies
UNC spokesman Richard Ross told The CERT
Tribal Tax Policy Forum May 17
Report that the UNC Church Rock mines and mill
BPA Seeks Northwest Tribal Proposals
employed 550 workers, of which about 110 were Indian
Isleta Pueblo Mulls Arco Bid
employes of various tribes.
Federal Role in Tribal Taxation?
Ross said the phasing-down of the mining operation
would take several months, and will retain between 75 to
LEGAL NOTICES
135 workers before the actual shutdown of operations.
Page 21
Ross said an additional four to five months will pass for
OPPORTUNITIES
Page 23
clean-up activities.
Page 2
Keith A. Cunningham, UNC president and chief
vertical shaft from 1960 to 1962 by Phillips Petroleum
executive officer, disclosed the Church Rock shutdown at
Co.
the company's annual shareholders meeting in New
UNC's Church Rock mine produces through two
Orleans, La. on Apr. 30.
shafts in order to achieve a production capacity of up to
Cunningham said uranium market prices are well
3,000 tons of ore per day. The property contains about 20
below industry production costs and below UNC's
million tons of ore having an average grade of .15 percent
contract prices. "We have continued to operate under
U30g, according to the 1979 publication An Overview of
near break-even conditions for many months,"
the New Mexico Uranium Industry prepared by the New
Cunningham told the shareholders, "seeking to maintain
Mexico Energy and Minerals Department.
a functioning uranium mining operation until the
Active uranium mines in Navajo country include the
market recovers. In view of our present analysis of the
Enos Johnson Mine operated by the Ray Williams
uranium market, this course is no longer supportable.
Mining Co., the four Ruby Mines managed by Western
We are confident that uranium prices will eventually
Nuclear Inc., the Mariano Lake Mine operated by Gulf
recover, and this move allows us to preserve our uranium
Mineral Resources Co., the Crownpoint Project managed
assets for production under more favorable market
by Nufuels Corp., and two mines managed at Church
conditions."
Rock by the Kerr-McGee Corp. All lie within the Grants
According to the 1981 Annual Report of the
Mineral Belt. The Navajo government estimates that a
Chairman of the Navajo Nation, a total of 148,444 acres
total of 1,357 Navajo tribal members are employed by
of the Navajo Reservation are involved in seven separate
the uranium industry on the reservation in 1982.
uranium leases, five of which are currently in production.
And negotiations are underway with Energy Fuels Ltd. in
the Marble Canyon region and Exxon Minerals Co. in the
eastern area of the reservation, the report said. During
1981 a total of 1,159,907 lbs. of uranium ore were
American Indian-Taiwan
produced, with combined royalties of $2,715,990
accruing to the Navajo Nation, the report stated.
Direct Commercial Ties
The Church Rock uranium mining area is about 10
miles north of the community of Church Rock and 15
May be in Offing
miles northeast of Gallup, N.M. The UNC mine is
located in T 16N R16W Section 17. It was mined from a
TAIPEI, Taiwan-A variety of opportunities exist for
the establishment of direct commercial ties between the
The CERT Report is published twice
Chinese of Taiwan and member tribes of the Council of
a month by the Council of Energy
Energy Resource Tribes (CERT) in the wake of a visit
Resource Tribes (CERT), a non-
here by CERT tribal delegates from Mar. 22 through
profit organization representing 29
Mar. 31.
American Indian tribes owning a
The CERT delegation included Ute Mountain Council
significant share of energy resources
Member Judy Knight of Towaoc, Colo., Nez Perce
in the West. Address: 1140 Connecti-
Councilman Gordon Higheagle of Lapwai, Ida., Spokane
cut Avenue, N.W., Suite 310, Washington, D.C.
Councilman Clifford Sijohn of Wellpinit, Wash., Paige
20036. Telephone: (202) 887-9155. Subscriptions:
Baker, a member of the Mandan-Hidatsa and CERT's
non-profit organizations, $22; profit-making insti-
director of planning and management services, Floyd
tutions: $57.
Correa of New Mexico's Laguna Pueblo and spokesman
for the group, and Theodore Smith, chief operations
Editorial Staff:
officer of CERT's Technical Assistance Center in Engle-
Richard V. LaCourse, Editor
wood, Colo.
Ed Gabriel, Executive Director
The CERT delegation was hosted by the Chinese Land
Reform Training Institute and the American John C.
Contributors, Policy Analysis Staff:
Lincoln Institute of Cambridge, Mass. Purpose of the trip
was to secure firsthand information on the Formosan
John Butler
Louise Linkin
approach to economic development. Discussions were
Ellen Brown
also held regarding the marketing of tribally-owned
energy resources and the establishment of reservation-
Support Staff:
based industrial assembly facilities for Formosan exports
to the U.S.
Cindy Cleveland
Karen Rice
The trip commenced with a visit to the Land
Department of the Taiwan Provincial Government
May 17, 1982
Page 3
where the CERT group learned about the organization
how Taiwan approaches industrial and economic
and implementation of Taiwan's land reform. There was
planning at the provincial level, then visited the Taiwan
also a visit to the Taiwan Provincial Farmers' Assn. and
Sugar Corp. where they examined the organization and
the provincial government center in Taichung.
operation of the government-owned entity. The sugar
The group studied the land consolidation program of
corporation, one of the most successful activities in
Taiwan in which irregular parcels of land have been
Taiwan, is presently diversifying into several markets
assembled and ownership patterns restructured SO that
other than sugar. Management personnel of the
the land can be farmed to secure the maximum level of
corporation expressed a willingness to participate with
agricultural production.
American Indian people in the development of
In Taipei the delegation visited with the Council for
management training programs and other forms of
Agricultural Planning and Development where they
technical cooperation.
learned about the planning process with respect to
The group studied Taiwan's export activities by means
improving Taiwan's agricultural productivity.
of a tour of the Taiwan External Trade Development
The CERT group also met with the Council for
Council and its Exhibition Hall, providing them a view of
Economic Planning and Development in order to learn
the type of economic activities available to Indian tribes
'A TIME OF OPPORTUNITY' is the exhibit of the energy and natural resource tribes at the 1982 World's
Fair in Knoxville, Tenn., opening last May 1 with the theme "Energy Turns the World." The 430-square-feet
exhibit depicts the story of the resource tribes, including a nationwide map of all federal and state Indian
reservations and a sequence of light boxes portraying the resource-related decisions made by the tribes which
affect all tribal people. The exhibit portrays success stories of tribal natural resource development and depicts
opportunities for the tribes, the federal government and industry. The exhibit was designed by Carter,
Cosgrove & Co. and is located in the fair's largest structure, the Technology and Lifestyle Center, in space
donated by the fair to the tribes. The exhibit is cosponsored by the Department of Energy, Bureau of Indian
Affairs, Administration for Native Americans and Council of Energy Resource Tribes.
Page 4
The CERT Report
in the area of assembling semi-finished goods which
have been exported from Taiwan to the U.S.
Assessing the State
In the area of resource marketing, the delegation met
with members of the Atomic Power Department of
and Needs of
Taiwan Power Co. During the meeting it was learned
that a substantial market exists for the export of uranium
Reservation Economies
to Taiwan, starting in the late 1980s. The group also
visited the Industrial Development Bureau of the
WASHINGTON-"Tough times,"o observed Sen.
Ministry of Economic Affairs to study the future energy
William Cohen, R-Maine, "put people up against the
needs of Taiwan. The CERT group also visited the
wall to come up with new ideas." As chairman of the
Formosan version of the U.S. Geological Survey and
Senate Select Committee on Indian Affairs (SSCIA),
discussed the types of information required for Taiwan to
Cohen opened a special hearing Apr. 29 on the
evaluate the sourceof energy supplies coming from
economies of American Indian reservations and heard
American Indian reservations.
coordinated testimony from three major national Indian
During the stay in Taiwan, the host provided by the
organizations.
Land Reform Training Institute was James. P.T. Lee,
The National Congress of American Indians (NCAI),
director of the research and counseling division.
National Tribal Chairmen's Assn. (NTCA) and the
FOLLOW-UP: In a subsequent written report by
Council of Energy Resource Tribes (CERT), together
Correa to CERT following return from Taiwan, Correa
representing virtually every American Indian tribe in the
described the potential links in a chain of direct
U.S., articulated problems which cripple the economies
commercial ties perhaps in the offing between Indian
of tribes, the effects of current major budget reductions
tribes and the government of Taiwan. Wrote Correa:
by the Reagan administration, and major proposals
"Strong mutual interest in the export of Indian-owned
to remedy the ills which plague tribal economies.
uranium, coal and molybdenum resources was expressed
Observed Sen. Mark Andrews, R-N.D. as the hearing
in our meetings with officials of the Energy Committee
opened: "It's time to listen to Indian economists for new,
and Taipower. A tentative meeting with Taiwanese
fresh and workable ideas."
officials will be held in Denver in late May with on-site
Following are condensed testimonies on the
visits to various mines on Indian land to be scheduled. If
economies of reservations presented by Atty. Alan
negotiations seem likely, a specialized team of mineral
Parker of Karl Funke & Associates, CERT, NTCA and
analysts will be sent from Taiwan to obtain specific
NCAI:
geophysical information. If the assessment proves
positive, negotiations will hopefully begin soon
thereafter.
I. Troubled Reservation Economies
"Other potential business relationships between tribes
and Taiwanese business interests are most promising for
ALAN R. PARKER, counsel to the Washington,
import of products in light industry, assembly plants and
D.C. firm of Karl A. Funke & Associates Inc.,
manufacturing. Further correspondence and discussion
coordinated the joint testimonies for the Indian
will be held regarding this matter with possible
organizations. His experience includes being staff
negotiations occurring at the end of this calendar year or
attorney with the Interior Solicitor's Office, co-
the first months of 1983. The Ministry of Economic
founder of the American Indian Lawyer Training
Affairs will be the government agency assisting Taiwan-
Program, chairman of the task force on tribal
ese business interests and Indian tribes in this effort.
government for the American Indian Policy Review
"Another possible working relationship may develop
Commission, chief counsel of the Senate Select
through assistance of agricultural experts from the
Committee on Indian Affairs, and Director of the
Ministry of Interior. Specifically, the Land Reform
Energy Department's Office of Indian Affairs. A
Training Institute and specialists from the Taiwan Sugar
member of the District of Columbia Bar and the
Corp. have indicated a willingness to conduct in-house
American Bar Assn., be is immediate past president of
training or possibly send a team of specialists to the
the American Indian Bar Assn.
United States. The team would assist tribes in developing
agribusiness and livestock operations either solely owned
CURRENT ECONOMIC CONDITIONS: There
by the tribes or via joint venture."
is really no room for debate over the fact that American
Tah-Tsung Feng, executive secretary of the Taiwan
Indians and Alaskan Natives experience poverty and
Energy Committee, will be visiting the U.S. in late May
unemployment along with the associated incidences of
or early June and is also set to attend an energy
social pathologies, to an extent unequalled by any other
symposium at the 1982 World's Fair in Knoxville, Tenn.,
group in America. These findings have been documented
where Taiwan has a large exhibit on display.
by every major task force and report on the subject and
May 17, 1982
Page 5
the Bureau of the Census. Despite occasional and isolated
the lack of access to development capital and sources of
examples of economic progress, Indian reservation
commercial credit for the Indian business enterprise
resident per capita income, unemployment percentages
development; the lack of effective control over the
and other relevant standard of living criteria show that
development and management of Indian natural
the gap between the economic standard of Indian and
resources by the Indians themselves; and the absence of
non-Indian society has been increasing rather than
anexperienced cadre of Indian managers and technicians.
decreasing in recent years.
CRITIQUE OF PAST AND PRESENT FEDERAL
For example, in a recent report prepared in January
POLICIES: "Too little and too late" accurately describes
1982 by the Navajo Nation entitled "A Matter of Life,"
past and present federal efforts to stimulate and support
the official BIA unemployment rate for the reservation
Indian economic development. Lacking sufficient
was estimated to be 75 percent and projected to exceed 80
internal capital and effectively cut off from conventional
percent by 1983. In 1979 the Bureau of Economic
sources of private financing, Indians have found
Analysis, Department of Commerce, estimated that rural
themselves almost totally dependent upon the federal
Indian income per capita was $3,246 compared to the
government as their primary source of capital for
U.S. average $8,773. While the 1980 census data on such
development.
items is not yet available, there is little doubt that it will
Since the 1950's, the federal government has provided
confirm the presence of extremely depressed economic
capital in the form of categorical grants, subsidized loans,
conditions in Indian country on a nationwide basis.
loan guarantees and interest subsidies. The record of the
In the face of these conditions of severe economic
federal programs providing assistance to reservations
distress, it is clear that there are no rich or poor tribes,
has been mixed, and the impact of federal assistance has
small or large tribes, the suffering and need is the same
been diminished, according to several congressional
for all. These conditions have, of course, only been
studies conducted over the past decade, because of a
exacerbated by dramatic reductions in the level of federal
number of deficiencies in the administration of these
assistance provided to Indian Tribes in fiscal years 1981
programs. They include inadequate project review and
and 1982. However, the attention focused on these
monitoring, inadequate technical assistance, lack of
problems has had the unintended but beneficial effect of
effective coordination between agencies and inadequate
shedding light on the underlying causes of the depressed
funding.
tribal economy. That is, the level of dependency on
The failure of these efforts to achieve meaningful and
federal program assistance which has developed in
tangible progress has served to discourage many tribes
Indian country has been demonstrated in stark terms as a
and their friends in the Congress. Despite this
result of these federal budget cuts, particularly in such
discouragement, the experience gained over the past
areas as CETA, EDA and HUD.
decade has served to identify the steps that can be taken
Indeed, as forcefully pointed out in the Navajo report,
to overcome many of these deficiencies and shortcomings
such federal programs have created and sustained the
in the administration of federal economic development
foundations for the economy on most reservations and
assistance programs. An essential and vital role for such
the traumatic withdrawal of such assistance has not only
federal assistance must be part of any rational and
undermined tribal efforts to create a visible private sector
carefully formulated economic policy for Indian affairs.
economy but also crippled their ability to provide
Indeed, any attempt to build tribal economies which can,
essential government services. Because the level of non-
eventually, be truly self-sustaining, must be premised on
federally subsidized industrial and commercial activity on
continued assistance for physical infrastructure,
the reservations has been minimal, there are no real
development training, investment incentives and
employment alternatives to such federal programs and,
development financing to name only a few elements.
in the face of such staggering levels of unemployment,
THE TRUST RESPONSIBILITY: A sound
the market for goods and services produced by the
economic policy for Indian country can only be based on
fledgling tribal private sector is itself depressed.
adherence to the U.S. trust responsibility which includes
Finally, the absence of a viable private sector on the
as its essential elements such legal protections for the
reservation has greatly constrained the ability of Indian
Indian land and natural resources as preservation from
tribal governments to generate local tax revenues needed
sale or financial encumberance, exemption from federal
to support those essential government services and
and state taxation, and freedom from state control and
physical infrastructure construction necessary to attract
regulation.
private business and industry.
All too often, the trust status of Indian lands and
FUNDAMENTAL OBSTACLES: In study after
resources is characterized as a negative influence on
study commissioned by the Congress, the GAO,
Indian economic development potential in the sense that
executive branch agencies and the tribes themselves,
the trust status is a constraint on using these assets as
there is clear agreement regarding the fundamental
collateral and security for financing. However, such an
obstacles to balanced economic growth in Indian country:
argument not only ignores the fact that viable
Page 6
The CERT Report
alternatives to such security interest protection
government to meet tribal economic development needs,
mechanisms are well established, but also overlooks the
including regulatory reform in natural resource
positive aspects of the trust status in relation to economic
management and development, assistance to tribes in
development potential.
marketing their resources and improving the current
For example, tribally owned business enterprises
techniques for evaluating the conditions of tribal
enjoy significant tax advantages and reservation based
economies. Finally, we would like to briefly discuss the
commercial activities may be eligible for federally and
applicability of the enterprise zone concept to Indian
tribally sponsored incentives and protections which can
reservations.
serve to enhance their economic status. Thus,
STRENGTHENING TRIBAL GOVERNMENTS:
maintenance of the trust responsibility will serve to
Tribal experience has shown us that the cornerstone of
protect the tribal status of the reservation homelands and
true economic development on Indian reservations is
provide a distinctive Indian nature to the tribal economy
through the establishment of stable tribal governments
itself. At the same time, it can be expected that the
with the management and structural capacities to carry
regulatory and bureaucratic nature of the federal trust
out their responsibilities effectively. The importance of
agency will diminish as tribes assert a greater level of
strong and effective tribal governments associated to
control over the development and management of their
long-term economic advancement cannot be over-
own natural resources.
emphasized. In fact, we believe that without federal
support to help tribal governments build strong
II. Tribal Self-Sufficiency
foundations, all other policies attempting to foster
economic development will be destined to fail.
GOVERNOR HARRY EARLY of New Mexico's
Why is such great emphasis placed on tribal
bistoric Laguna Pueblo. together with a group of
government? The answer is that a stable, strong and
tribal officials and staff members of the Council of
effective government is one of the important
Energy Resource Tribes in both Englewood, Colo.
foundations for both successful economic enterprises and
and Washington, D.C. coordinated testimony for the
a supportive social and economic infrastructure.
comprebensive strengtbening of tribal governments.
Appropriate federal policies are critical to help break
down the numerous obstacles to the enhancement of
CERT, a coalition of 34 Indian tribes with substantial
tribal economies. Yet by their very nature such policies
energy resources, is keenly aware of the failure of many
cannot be applied rigidly to all reservation situations.
past federal policies to foster the development of stable
The tribes themselves must have the capabilities to
and sound reservation economies. We are in agreement
establish their economic development objectives
with the conclusion of the Task Force on Reservation
appropriate to their individual cultures, socioeconomic
Development and Resource Protection in its 1976 report
conditions, natural resource endowments and the myriad
to the American Indian Policy Review Commission that
other factors that cannot possibly be evaluated from
the three necessary conditions for true long-term
Washington, D.C. And they must have the management
economic development are: (1) tribal control of
tools to effectively govern consistent with these
reservation resources; (2) access to capital; and (3)
objectives.
effective tribal management of economic affairs. Policies
For these reasons, CERT has worked extensively with
which do not serve to provide sound structural change
the Administration for Native Americans (ANA) in
and which do not address all three of these conditions
carrying out its tribal government capacity-building
simultaneously-control, capital and management-are
programs. With the assistance of ANA, tribal
doomed to the failures of the past. This principle applies
governments are gaining the tools they need to
to all Indian reservations, not just those which have an
effectively manage their own affairs, consistent with
endowment of energy resources.
their own affairs, consistent with their own objectives.
We would like to begin our presentation by discussing
We believe that the capacity-building programs of
three major obstacles to tribal economic development
ANA have proven to be among the most cost-effective
that could be reduced with passage of legislation
tribal economic development activities ever attempted
currently pending before this Congress: the need to
by the federal government. Capacity-building expen-
strengthen tribal governments, as addressed in S. 1088;
ditures for this program should be viewed as a cost-
the need for equitable tax treatment of tribal
effective investment, and not as simply another
governments as embodied in the Indian Tribal
discretionary federal program ripe for budget cutting.
Governmental Tax Status Act, and the need to authorize
This is particularly true given the relatively small budget
the approval of minerals agreements negotiated by
of the agency. Yet, ANA's budget was cut by 17 percent
tribes, provided in S. 1894. We will then turn briefly to
last year, and is targeted for an additional 17 percent in
certain administrative steps that could be initiated in a
the President's proposed budget for FY'83. These cuts
relatively straightforward manner by the federal
must be viewed against the fact that from FY'76 through
May 17, 1982
Page 7
FY'81 ANA had been funded at a static level of 33.8
using the development of their minerals as a base for
million dollars. Thus, with inflation taken into account,
developing sound, stable economies. Sadly, this has not
the real budget of ANA has been cut about 50 percent
been the case. Although energy production has taken
during this period.
place on Indian reservations for many years, and has
We firmly believe that the small budget savings
been particularly significant over the past three decades,
realized by these cuts do not come close to the negative
it has resulted in very little economic return or monetary
impact that a reduced ANA program will have toward
benefit to the producing reservations.
the objective of long-term tribal economic self-suffi-
These tribes, lacking the in-house management
ciency.
capability and the financial resources to obtain their own
EQUITABLE TAX TREATMENT: A major
expertise to evaluate, plan and negotiate their own
obstacle confronting tribal governments attempting to
agreements with minerals companies, have had to rely
generate revenues is that they do not currently have a
upon the Bureau of Indian Affairs (BIA) as their trustee
number of federal tax advantages enjoyed by every other
to negotiate on their behalf. All too often, the BIA-
government in the United States, including state, county
negotiated agreements have turned out to be very
and municipal governments. We therefore strongly
detrimental to the economic and other interests of the
support the Indian Tribal Governmental Tax Status Act,
respective tribes.
currently pending in both Houses of Congress (S. 1298;
The benefits from minerals production on Indian
H.R. 3760), which would remedy this inequitable
reservations have therefore flowed off the reservation.
situation. We support the bill, first, as a matter of equity;
The royalties that the tribes have received have not been
second, because the bill would strengthen tribal economic
adequate to meet the needs of tribal governments, and
self-sufficiency by strengthening the abilities of tribal
the tribes continue to remain among the poorest of
governments to provide public goods and services for
America's poor. Unemployment rates, even among the
their people; and third, because the bill recognizes the
energy resource tribes, are several times above the
appropriate role of tribal governments.
national average.
The bill would remedy the effects of a series of Internal
Realizing that they were not receiving long-term
Revenue Service rulings issued during the late 1960's and
benefits from development of their depletable mineral
early 1970's which held that, as Indian tribes are neither
resources, a number of tribes during the 1970's decided to
states nor political subdivisions of states, they are not
take matters into their own hands, and go directly to the
eligible for certain benefits given states and their political
bargaining table themselves to engage in active
subdivisions under the Internal Revenue Code.
negotiation with mineral companies. Instead of the
As a result, revenue raising and saving mechanisms
traditional BIA approach to selling leases with cash
available to and commonly used by other governments
bonus and fixed royalty rates, tribes have begun to
are foreclosed to Indian tribal governments. This
explore innovative approaches, such as participation in
discriminatory treatment is unfortunate inasmuch as
joint ventures, production sharing and service contracts
tribal governments are faced with the task of bringing
enabling them to maintain full or partial ownership and
their people, among the poorest in the nation, into
to have a role in management decisions. Since 1975 at
economic prosperity. This task is made more difficult, at
least a half dozen such agreements have been negotiated
least in part, because tribal governments are not given
by the tribes. Yet, in 1980 the Interior Department itself
the same benefits as other governments in the Internal
raised questions about its authority to approve such
Revenue Code.
agreements, particularly for oil and gas agreements that
The Act would: allow deductions from federal income
were not sold under public auction.
taxes for charitable contributions to Indian tribes, allow
The inability of the DOI to approve alternative
deductions from federal income taxes for taxes paid to
minerals agreements negotiated by the tribes is a major
tribal governments, exempt from federal income taxes
obstacle to tribal economic development. There is
interest paid on certain bonds issued by tribal
currently a bill pending before this Committee, S. 1894,
governments, allow deductions from federal income
which would remove any questions about the
taxes for contributions to tribal political campaigns,
Department's authority in this area. Simply stated, it
exempt tribal governments from certain excise taxes
would provide the Secretary the authority to approve
including those on special fuels, manufacturers excise
minerals agreements, whether they are leases, joint
taxes, highway use taxes and communications excise tax,
venture arrangements, or any other forms of agreements
and allow tribal governments to offer tax-exempt
provided that he does not make a finding that such
annuities to certain employees.
agreements are not in the best interests of the respesctive
ALTERNATIVE MINERALS AGREEMENTS:
tribe.
Given the vast wealth of mineral resources on Indian
During hearings held on S. 1894 by this Committee, a
lands, it would appear that those tribes such such
number of tribal leaders expressed concerns over specific
minerals could become economically self-sufficient by
parts of the bill, and recommended changes to address
Page 8
The CERT Report
these concerns. We urge you to take these recommenda-
of environmental and production stipulations, as well as
tions into account, and to favorably report a bill
lease site production management which is now being
responsive to them.
carried out by Interior's Minerals Management Service
REGULATORY REFORM: In conjunction with our
(MMS).
discussion on the Interior Department's lack of authority
Secondly, the respective tribe should be offered a
to approve alternative minerals agreements we would
consultation and concurrence role in major decisions
like to briefly address the regulatory framework under
made by the BIA under its regulations. If the tribe does
which DOI manages tribal natural resources. Regulatory
not have the capability to exercise an option to concur, it
reform is needed throughout the federal government to
should be offered the option to waive the concurrence
correct the deficiencies in the treatment of Indian tribes.
requirement. However, in all cases the BIA should
Very few rules currently on the books provide the proper
consult with the tribes prior to making substantive
mechanism for tribal consultation and concurrence in
decisions under its regulations.
federal programs. In the case of BIA regulations, steps
RESOURCE MARKETING ASSISTANCE: The
should be taken to put the tribal government in the lead
member tribes of CERT have a substantial amount of
role, with the BIA providing technical support and trust
energy resources which potentially could provide a base
protections.
for the development of stable reservation economies. We
The unfortunate fact is that federal policies designed
have found, however, that while many of the tribes are
to provide tribal governments with more say in their
interested in developing their resources they are often
own affairs have been undermined by bureaucratic
unsure of how to proceed. At the same time, there is not
inertia, poor administration and controversy. For
an established and convenient method for potential
example, even the Indian Self-Determination Act of
resource customers to become familiar with the resources
1975, which was intended to turn the control and
of Indian tribes.
administration of Indian programs over to tribal
We strongly believe that support is needed to assist
governments, is administered by over 100 pages of BIA
tribes in obtaining information that they need regarding
regulations. These rules maintain heavy federal
the potential marketability of their resources, to help
involvement and a perpetuated perception of tribal
them come into contact with appropriate potential
dependency.
markets and to provide a clearinghouse of information
Unfortunately, our experience has shown that reform
regarding agreements which have been made among
of BIA's regulatory framework is a very long and
buyers and sellers of comparable resources. We believe
cumbersome process. In 1977, the BIA proposed revising
that assistance in the development of such marketing
its Indian mineral development regulations but they
services would be a valuable tool to enable the tribes to
never were promulgated. In 1980, over three years later,
effectively participate in the private sector.
the regulations were re-proposed but again were not
ASSESSING ECONOMIC CONDITIONS: It is
promulgated. When and if the BIA does promulgate new
extremely difficult at this time to measure the impacts of
regulations, we believe that they must include provisions
economic development policies due to the lack of a
for tribal participation and control in minerals
systematic means to measure the economic conditions on
development and management, provided that the
individual reservations. For this reason, in recent years
individual tribes desire and have the capabilities to
some development specialists have proposed that it
assume these responsibilities. The challenge for BIA is to
would be useful to have leading economic indicators for
develop a regulatory framework that promotes tribal
Indian reservations analogous to the national accounts of
involvement in the process without the BIA losing the
the United States. In place of Gross National Product, for
regulatory capability to fulfill its trust responsibility to
instance, one could have Gross Reservation Product
assure that the tribes truly benefit from minerals
(GRP).
development.
Such a system of economic indicators would also allow
To meet this challenge-to assure that the BIA fully
us to record progress in achieving economic self-
protects the interests of those tribes which have not fully
sufficiency. Baseline data is needed so that both tribal
developed their own minerals management capabilities
governments and the federal government can measure
while at the same time not unduly burdening those tribes
changes in reservation economies.
which have these capabilities-the BIA must develop a
We believe that the development of such data and
regulatory framework that incorporates the following
indicators can serve to provide a framework against
two philosophies.
which the effects of economic development policies can
First, if a tribe demonstrates that it has performed a
be assessed where they really count-at the reservation
given task or tasks required by BIA regulations, the BIA
level.
should substitute the tribe's efforts for its own. This
ENTERPRISE ZONES: The basic premise of the
would apply, for example, in such areas as pre-sale,
enterprise zone concept is that with appropriate
economic and environmental assessments, development
economic incentives and reduction of regulatory
May 17, 1982
Page 9
impediments in specifically targetted economically
III. Involving the Private Sector
depressed areas, a climate will be created in these areas
which will induce private sector investment. Legislation
PHILLIP MARTIN, elected Chief of the Missis-
implementing this concept was introduced in Congress
sippi Bank of Choctaw Indians and president of the
in 1980 and 1981, and the Reagan administration in
National Tribal Chairmen's Assn. (NTCA), delivered
March introduced its version of this concept.
testimony in behalf of NTCA's 150 federally recog-
The administration's proposal, as embodied in 2298
nized tribes and added "wbolebearted endorsements"
now before the Congress, provides for the Secretary of
of testimonies by CERT and the National Congress
Housing and Urban Development to designate up to 25
of American Indians.
targeted areas per year over the next three years as
enterprise zones. Such designation would entitle
OVERVIEW: The National Tribal Chairmen's
businesses locating in these zones to special federal tax
Association would like to discuss the economic issues of
incentives, including certain tax credits and elimination
most immediate impacts on our tribes, namely
of federal capital gains taxes. In addition, federal
infrastructural development on our reservations; greater
regulatory bodies would be given discretionary authority
access of our Indian industries to defense contracting and
to relax or eliminate certain non-statutory regulatory
procurement opportunities to stimulate reservation
requirements within enterprise zones, upon the request
development; and the proposed Economic Development
of the respective local governing bodies.
Strategy of the Bureau of Indian Affairs for Fiscal Year
We are pleased that Indian reservations are
1983 and beyond.
recognized in S. 2298 to be eligible for enterprise zone
We are constantly reminded by our federal trustee that
designations. The incentives provided by such
we must seek financial investment and industrial
designation may well induce certain industries to locate
relocation for reservation development from the private
on reservations, and thus to contribute to long-term
sector, because of the present national policy of federal
economic advancement.
budget cutbacks and the shift of responsibility from the
At the same time we must caution against any notion
federal level to local governments. Indeed, the proposed
that enterprise zones can by themselves be viewed as a
enterprise zone concept-the Reagan administration's
major solution to the economic problems on reservations.
sole initiative to offer relief to the economically-
To begin with, since only 75 areas will be designated over
distressed areas-is designed precisely to attract private
the next three years, the competition for designation
sector investment and involvement to hard-hit areas,
among states, muncipalities and tribes will be very
including Indian reservations. Yet, a recent study on the
intense, and it is highly likely that no more than a small
applicability of enterprise zones to Indian country
handful of reservations will win out in the competition.
revealed that any incentives offered by tax or regulatory
But beyond this problem, there are more fundamental
relief are largely negated by the limited infrastructural
obstacles to tribal economic development that cannot be
attributes on most Indian reservations.
remedied with enterprise zone designation alone.
INFRASTRUCTURE DEVELOPMENT: Many
The enterprise zone concept does not address the need
ideas have surfaced within recent months concerning
for physical infrastructure on reservations as a
relationships between Indian tribes and the private
precondition to private sector investment. The sad fact of
sector. While the concept is good, some attention must
economic life on the reservations is that there is an
be focused on the reality of bringing Indian tribes and
almost total lack of infrastructure to support economic
private industry together for mutual benefit. If tribal
enterprises, including adequate roads, sewers and public
leadership were surveyed today, 49 out of 50 tribal
utilities. On Indian reservations, however, enterprise
leaders would not know a chief executive officer of a
zone incentives are not likely to attract major investment
major corporation. Indian country needs very desperately
unless the tribes can demonstrate that an adequate
to be joined in a beneficial relationship with the private
infrastructure is in place or that they are taking steps to
sector, but this will not happen without some means of
build the needed infrastructure. For this reason we
communicating with the private sector.
believe that it would be a major mistake to believe that
This will not happen if tribal governments do not
private sector incentives by themselves will solve the
possess the financial resources by which to enter into
problem of establishing lasting stable economies on
economic development ventures with private industry.
Indian reservations.
Technical assistance, loans, and loan guarantees are
We believe that enterprise zones can work on certain
needed if tribal governments are to develop economic
reservations, provided that the other necessary factors
projects on a self-sustaining basis. Bridging the gap
for economic development are in place. However, the
between Indian tribes and the private sector cannot occur
enterprise zone concept must be viewed as only a part of
through the proposed enterprise zone legislation when
a total tribal economic development policy and cannot
only three or four tribes might possibly benefit from that
work in a vacuum without such policies.
concept.
Page 10
The CERT Report
Application for enterprise zone status challenges local
tribes warrants a fresh review.
governments to offer infrastructural commitments for
We do not mean to say that the federal programs for
municipal services and physical improvements within
economic development were a complete waste. The
the distressed area. Impacted as our tribal governments
much ridiculed EDA-financed industrial parks on
are by the loss of federal assistance, few tribes could even
reservations are now providing many tribes their only
provide a guarantee against deterioration of local
hope for development. Many of these industrial parks
municipal services, let alone the improvement of them.
are now taking off now that tribes are gaining experience
This is why the NTCA so strongly supports the
at marketing them in the private sector. The loss of this
provisions of S. 1088. That legislation, including the
type of federal assistance for infrastructural development
Section 7 provision for an addition $50 million for
on reservations is seen by many tribal leaders as among
maintenance and improvement of tribal governmental
the most devastating.
services, is essential to any hope of tribal self-sufficiency
DEFENSE CONTRACTING: Tribal governments
in the future.
need assistance to overcome the impediments of
Infrastructural development assistance is needed, and
isolation and underdevelopment in order to attract
we ask that you view such assistance as an investment in
industry and private sector investment. With the loss and
the future of Indian tribes as self-sufficient entities in the
the unlikely restoration of significant funding assistance
American future.
programs, federal assistance to tribes in their economic
Indian tribal governments do not have a tax base from
development efforts could come from a policy of
which to obtain revenues to support and maintain their
preferred access for tribal industry in federal
social and economic structures. And few tribes currently
procurement and contracting. One such opportunity is in
have sufficient enterprise development from which to
the challenge faced by the American defense industry to
support essential tribal governmental functions and
meet the administration's defense build-up requirements
services. An examination of the methods by which states,
over the next several years.
counties, and municipalities support governmental
Between now and 1987, the Reagan administration
services, physical development, maintenance, and capital
proposes to spend more than $1.5 trillion in defense.
improvement reveals a wide range of revenue sources.
Some economists project major problems in the ability of
Without a tax base, Indian tribes do not have these
the U.S. defense industry to meet America's needs
options. Tribes are unable to take advantage of general
defined in the arms build-up proposals. The squeeze on
obligation bonding because of IRS rulings. Consequently,
domestic suppliers, it is projected, will send more defense
we have few resources from which to support the
procurement overseas, making the U.S. more dependent
development and maintenance of reservation infrastruc-
on foreign sources and more vulnerable.
ture. This situation again points up the need for the
There is also concern in the Congress over the U.S.
American Indian Tribal Government Tax Status Act
industry's capability to meet the country's defense build-
embodied in S. 1298, and that is why the National Tribal
up requirements. This past February, Rep. James
Chairmen's Association supports that legislation.
Blanchard of the House Committee on Banking, Finance
There are few remaining federal assistance programs
and Urban Affairs, introduced the Defense Industrial
on which we can depend to assist us in our efforts toward
Base Revitalization Act (H.R. 5540). That bill calls for a
economic self-sufficiency; and those programs and
number of measures, several of which could directly
strategies are clearly biased toward natural resource
apply to Indian economic development needs. First of all,
development. We do not decry that assistance to those
that bill calls for federal assistance in the form of loans,
tribes with natural resources. However, the tribes that do
loan guarantees for small and medium sized businesses.
not possess significant natural resources feel at a great
That type of assistance could greatly enhance the
disadvantage to develop their industrial and business
capability of Indian industry to compete in the defense
potential. Even tribes with significant extractive
contracting arena.
resources of energy and minerals desire to expand their
Secondly, the Blanchard proposal offers provisions for
employment opportunities and to retain their earnings
training and retraining workers for a quality defense
on the reservation through industrial diversification.
industrial work force. The need for quality skilled labor
Through the 1960's and 1970's, in the era of relative
on the reservations is essential to the development of
affluence in federal economic development assistance, th
Indian-owned business and for the attraction of outside
opportunities for industrial development was largely lost
industry to the reservations.
to Indian country; and the bureaucracy administering
Thirdly, the Blanchard proposal calls for greater
those federal assistance programs must bear much of the
domestic capability to produce critical and strategic
blame. The private sector and the tribes themselves are
materials, significant reserves of which are to be found
not without blame in the general failure of the
on Indian reservations. The tribes with these resources
reservation industrial development. But we are now in
could rightfully demand a greater opportunity for
different times, and industrial development for Indian
participation in the extraction and processing of such
May 17, 1982
Page 11
critical and strategic materials.
administration for finally giving some direction to their
We hope that this type of legislation gains
economic development assistance efforts; but we must
congressional support, and that Indians are given special
note that the funding levels to implement the strategy
inclusion in the bills. Any initiative to secure equitable or
are inadequate and the time is late.
preferred access for Indian industry to defense
The BIA Strategy requests appropriations of $10
contracting, however, must not be looked upon as a
million to provide conditional grants to tribal projects
movement to convert "guns to butter," as it were.
for the development of natural resources, the
Reservation industries have shown that they can deliver
encouragement of private sector involvement and
high quality goods on time and at budgeted costs. There
investment, and the promotion of sound business
are successful defense and non-defense contracts in
principles.
reservation-based industries now; but all too few of them.
Restricting the proposed economic development
The idea of promoting greater Indian industrial
grant program to natural resource development projects
participation in defense procurement is relatively new.
eliminates a great majority of tribes and does not address
In the FY 1982 Department of Defense Appropriations
the need for multifaceted economic development efforts
Act, Sen. Peter Domenici, R-N.M., included a provision
desired by most tribes-even those tribes with abundant
for Indian preference in defense procurement. The
natural resources. According to the Assistant Secretary,
Defense Department is in a quandary over how to apply
the objectives of the program will be accomplished
Indian preference and is currently studying the matter.
through the extension of "seed grants" from the $10
However, given their lack of experience and knowledge
million, reducing internal bureaucratic obstacles and
in Indian affairs, it is not likely that a creative policy will
barriers, taking the lead across the federal structure in
be forthcoming.
coordinating economic development assistance, and
We urge the administration to study this matter
searching out and stimulating opportunities for tribes.
creatively, and we request the Congress to take necessary
We are aware that the BIA strategy totally reflects the
measures to assure equitable or preferred access of Indian
administration's policy of fiscal austerity. We are aware
industry to defense contracting and procurement.
that the Assistant Secretary's hands are strapped in this
It is our understanding that Sen. Mark Andrews, R-
matter; for he knows, as we do, that $10 million is totally
N.D., is working to exempt Indian defense contractors
inadequate to provide the assistance our tribes need to
from certain time restrictions inherent in the Small
pursue their goals of economic self-sufficiency. The
Business Administration's 8(a) provisions. We
burden of dependency is staggering and shrinks that
commend the Senator, for this is the type of assistance
amount to an ineffective level. An amount more
needed to advance our industrial capacity on the
significant, effectively administered, would mean a true
reservations.
investment in the future of Indian country, and in the
We would also like to focus attention on other issues
nation as a whole.
related to the Small Business Administration. SBA
We therefore request an additional appropriation of
administers a number of programs to assist small and, in
$5 million to provide "small tribes" a baseline of
particular, minority business firms. The programs
governmental support; presumably to enhance their
administered by this agency are for the most part
efforts to attract industry. The BIA also proposes to seek
unavailable to Indian tribes, because Indian tribes operate
from Congress new authorization for the Indian Business
under the jurisdiction of tribal constitutions and bylaws,
Development Fund and loan-guarantee program
and are not chartered through state chartering processes,
embodied in 25 U.S.C. 451 The Indian Financing Act of
and SBA cites ownership and control as a major problem
1974.
in providing assistance to tribal enterprises. The SBA's
We commend the Bureau's plan to seek reauthori-
Small Business Set-aside Program (8(a)), Small Business
zation and reinfusion of the Indian Financing Act, but
Investment Company Program, and local development
there is massive evidence to suggest that the BIA or other
company program could provide many short-range
federal agencies are not efficient lending entities. By their
benefits of a private sector nature to Indian tribal
very nature, they do not function in a banking
governments. However, tribal governments will not
relationship, and they tend to subsidize inefficiencies. As
benefit through the SBA programs, unless there is
such, a great many federal programs which are
Congressional involvement to amend regulations of the
dependent upon the appropriations process for funding,
Small Business Act of 1958.
suffer themselves from inconsistencies which affect their
BIA ECONOMIC STRATEGY: Finally, we would
ability to promote, administer, and monitor a portfolio of
like to comment on the Bureau of Indian Affairs'
loans and loan-guarantees.
Economic Development Strategy which is proposed for
The SBA has recently extended its guarantee and
FY 1983 and beyond. This strategy was devised over the
authority to commercial banks because it could not
past year to finally meet the longstanding demand of the
efficiently make sound lending decisions. Thus, the
House Appropriations Committee. We commend this
Indian community cannot assess the impact of the
Page 12
The CERT Report
proposed reauthorization legislation at this time to
tribal communities and regional and national financial
ascertain their assurances to make the Bureau's program
institutions. This lack of local Indian financial
efficient and functional.
intermediation has prevented Indian savings, thereby
The Indian Financing Act was enacted in recognition
fostering the need to have federal agencies fill the
of the private capital markets' inaccessibility to
primary role of financial intermediation for investment.
reservation enterprises. That situation still exists, and we
We call such intermediation "non-bank federal
direly need the Indian Financing Act-there must be no
intermediation" and its track record, as you are aware,
question about that. But the BIA must be made to put
has been inefficient and ineffective. This form of federal
into place an effective mechanism to administer that
financial assistance, as questionable as its record is, has
program.
been almost completely eliminated by the Reagan
administration and Congress.
IV. American Indian Financial
Because of the above conditions, NCAI now believes it
Development Corporation
is timely to recommend
a strategy which will begin to
establish the foundations for real financial intermedi-
JOSEPH DE LA CRUZ, president of the Quinault
ation throughout Indian country. Without a mechanism
Nation of Wasbington state and president of the
whereby investment capital can flow to venture and
National Congress of American Indians (NCAI),
development projects, it is unlikely that economic
delivered the NCAI proposal for an American Indian
development will be self-perpetuating. We believe there
Financial Development Corporation in behalf of the
is a justifiable need for an independent finance
400 federally and non-federally recognized tribes who
institution which can overcome the barriers to capital
constitute NCAI and linked bis testimony with that of
which I outlined above. By mobilizing capital and
CERT and NTCA.
technical assistance for Indian business development,
such a financial institution would increase the rate of
CAPITAL SCARCITY: The National Congress of
Indian capital formation and productivity while lying an
American Indians will focus on those issues which are
important cornerstone in the building of financial
critical to an economic development strategy over the
market structure in Indian country. I would like to add
long run. Although we have limited our comments to
also that President Reagan in his Program for Economic
generally one factor of production-capital-we are
Recovery provided that financial assistance would
aware of the importance of other factors of production
remain available to those communities "that truly lack
such as land, labor, materials and markets to the
access to financial markets."
development and investment process. However, the
The NCAI Economic Committee working with the
existing constraints we face in accessing sufficient capital
American Indian Development Corporation (AIDC),
for development clearly points to capital scarcity as the
after two years of intensive study, has developed a
most important factor limited productive investment
blueprint for the creation of an independent financial
throughout Indian country.
institution to serve American Indian communities. AIDC
We believe that such a scarcity is the result of certain.
recommends the Institution have the following
structural conditions that prevent effective investment
characteristics: (1) it be a mixed ownership federally
from occurring. Like small business in general, new
chartered corporation; (2) it have regional branches to
Indian business is restricted from gaining open access to
serve the widely dispersed Indian population; (3) it be
the nation's structure of financial institutions and
able to extend long-term equity capital to Indian
markets. A recent Department of Commerce report,
businesses, and tribes; (4) it be able to raise its own equity
Small Business and Capital Markets, showed that
and debt funds through the sale of tax exempt bonds; (5)
existing financial markets do not reach small business
it be able to invest surplus to generate income; (6) it be
with capital because the markets are: (1) risk-averters;
able to charge rates of interest sufficient to defray costs,
(2) they avoid conditions where there exists high
and earn a reasonable rate of return.
information and transactions costs; (3) there exists
The Institution, to be successful, must have the
increasing market and asset concentration throughout
capacity to provide and coordinate the use of long-term
the financial market structure; (4) conscious and
capital, working capital, technical assistance and training
unconscious prejudice for small business in general; and
for Indian businesses. It must be an independent
(5) government regulation places a higher cost burden
institution where investment decisions are based on
on small businesses than large scale enterprise.
objective financial and market criteria. The Institution at
Investment in Indian country is further restricted and
the onset will require financial support from federal
constrained by a unique and extraordinary condition. I
sources, Indian tribes, private business and the financial
refer to the absolute nonexistence of any Indian
community.
community-based financial institutions operating to
Equity capital for the Institution would be generated
encourage indigenous savings or acting as a link between
from the sale of common stock to the federal
May 17, 1982
Page 13
government, Indian tribes and the private sector. The
Interior Solicitor
Institution would seek long-term, low-interest federal
financing. Capital would also be generated from portfolio
sales and earnings. The Institution would raise capital
Coldiron Blocks Laxalt
through debt instruments such as bonds and notes. To
enhance the marketability of Institution debt,
Request to Invalidate
bondholder's interest earnings should be exempt from
taxation. Federally chartered commercial banks should
Nevada Tribe's Tax
be authorized to purchase debt instruments and federal
law should authorize the use of Institution debt
Ordinance
instruments by banking institutions to satisfy federal
reserve requirements.
by Richard La Course
On the investment policy side, long-term venture
capital would be provided to Indian businesses in the
WASHINGTON-The
form of equity, with the Institution retaining the option
Interior Department cannot
to sit on the Board of Directors of the enterprise to insure
"revoke" its own legal ap-
proper management practice. The Institution would
proval of any tax code
establish upper limits on the size of its equity position in
adopted by an American
any one enterprise; the share of the Institution's equity
Indian tribe, and Interior is
and loans in a project's total cost; and on the proportion
now working on a policy
of the Institution's total funds invested or loaned to any
for the future review of
one enterprise. Investment policy would be to diversify
tribal ordinances affecting
its investments among different projects such as natural
non-Indian residents of
resources, agriculture, light manufacturing and
WILLIAM COLDIRON
Indian reservations.
commerce. Eligible borrowers would be tribal
Tribal ordinance review
That was the thrust of an
government, tribal enterprises, Indian cooperatives,
Apr. 13 letter from Interior Solicitor William H.
partnerships, corporations and individuals.
Coldiron to Sen. Paul Laxalt, R-Nev., who had asked the
To complement its direct loan and equity investments,
Interior Department to "revoke the approval" by
the Institution should be able to provide loan guarantees
Interior of a tax ordinance adopted by the Pyramid Lake
and to engage in co-financing with existing financial
Paiute Tribe of Nevada on Sept. 5, 1980.
institutions. The Institution will assist its borrowers with
In the Apr. 13 letter obtained by The CERT Report,
brokering and underwriting services. In summary, the
Coldiron wrote: "We are aware that non-Indians residing
Institution should serve as the financier, investor, lender,
or doing business on Indian reservations are concerned
loan packager, guarantor, underwriter, and broker for
about the exercise of tribal taxing and regulatory
Indian enterprises.
authority over them and that their concerns are often
My final observation is that we believe the Institution
based on their inability to participate in tribal
will foster private sector participation. This is critical as
government.
the private sector can bring important infusions of
"We are attempting to develop a policy for the future
technical expertise and technology to venture projects.
review of certain tribal ordinances affecting non-
The Institution can become the vehicle which can reduce
members and plan to enunciate that policy in regulations
the uncertainties of reservation investments in the mind
or guidelines, which will require, among other things,
of the private sector. The Institution will stimulate the
that tribes seek significant input from, and afford
growth of sound business management practice within
adequate due process guarantees to, all persons affected
tribal communities by generating clear messages that
by their ordinances. I will see that you receive a copy of
investments will only be made after rigorous financial
the regulations and/or guidelines when they are
investment criteria have been met on a project by project
developed."
basis. Such objective criteria will encourage tribes to
TAX ORDINANCE: The 29-page Pyramid Lake
develop tribal business codes which protect all business
Indian Reservation Tax Ordinance No. 21 was adopted
ventures and commercial enterprise as well as tribal
unanimously by the Pyramid Lake Paiute Tribal Council
integrity during the transformation of tribal commun-
on Sept. 5, 1980. It was approved by Bureau of Indian
ities towards economic self-sufficiency.
Affairs Supt. Robert L. Hunter on Sept. 10, 1980, then by
the BIA Area Director's Office in Phoenix, Ariz. In
November of 1981 the Tribal Council adopted
"administrative provisions" for the imposition and
collection of taxes.
The Pyramid Lake Tax Ordinance imposes a business
Page 14
The CERT Report
and occupation tax, a leasehold interest tax and an
Reorganization Act of 1934 with a constitution and by-
easement tax on non-Indians who operate businesses
laws adopted on Jan. 15, 1936. The reservation, governed
and ranches within the boundaries of the reservation. But
by a 10-member Pyramid Lake Paiute Tribal Council,
public notification of the new tribal tax ordinance was
today has about 900 Paiute residents and between 200
not made until the U.S. Supreme Court this past Jan. 25
and 300 non-Indian residents, including businesses and
ruled affirmatively in Merrion et al. i: Jicarilla Apache
ranchers.
Tribe and Amoco et al. l'. Jicarilla Apache Tribe that
Laxalt served as Nevada's lieutenant governor from
Indian tribes have inherent powers to impose taxes on
1963 to 1966 and as governor from 1966 to 1970, during
non-Indian businesses as part of their powers to govern
which time he became a close friend of now-President
and to pay for the costs of self-government.
Ronald Reagan. Nevada has a total of 24 separate Indian
Laxalt's Mar. 16 letter to Watt followed receipt of
reservations. In 1966 while governor, Laxalt proposed
taxation notices by non-Indian businesses located on the
cutting in half the total size of Pyramid Lake itself which
reservation distributed by the Pyramid Lake Tax
lies across the center of the Pyramid Lake Reservation,
Committee.
but the plan was defeated. Laxalt presently sits on the
Besides taxing non-Indian enterprises, the tribe is also
Senate Appropriations Committee and Senate Judiciary
levying an easement tax for telephone and utility lines,
Committee and holds seats on a number of subcom-
railroad tracks and pipelines. Owners of the easements
mittees.
are to be taxed at a rate of two percent of the annual
Laxalt's press secretary, Thomas Loranger, refused to
assessed value of the easement and any structure
release the original Mar. 16 Laxalt letter to The CERT
occupying it.
Report on the grounds the letter was a "confidential
Also subject to tribal taxation under the new ordinance
communication."
are extractors of mines, quarries,
coal,
oil,
natural
gas,
The Pyramid Lake Tax Ordinance itself was drafted
ore, stone, sand, gravel, salt, clay, mineral or other natural
between January of 1979 and summer of 1980 by Tribal
resource product," as well as "generation or production
Atty. Michael Thorpe, a former Justice Department
of electrical energy for resale or consumption outside the
lawyer now with the law firm of Eisenhower, Carlson,
reservation," according to Chapter II of the ordinance.
Newlands, Reha, Henriot & Quinn of Tacoma, Wash.
The rationale for the new Pyramid Lake Tax
Thorpe told The CERT Report the stimulus for
Ordinance is contained in an opening statement of tax
preparation of the Pyramid Lake ordinance was tribal
policy:
interest in a minerals severance tax ordinance adopted by
"The Pyramid Lake Paiute Tribe of Indians has existed
the Jicarilla Apache Tribe of New Mexico in 1976, which
as an independent, sovereign nation since time
stood at the heart of the high court's affirmative decision
immemorial. Historically the Tribe held sole and
this past Jan. 25.
absolute jurisdiction over Pyramid Lake and its
Thorpe said the Pyramid Lake Tribal Council
surrounding area. Today the Tribe continues to govern
submitted the draft document to "lengthy detailed
the Pyramid Lake Indian Reservation limited only in its
review" and amendments before final adoption. "It's part
authority by its Constitution and By-Laws and the
of an overall effort of the tribe to come to terms with
Constitution and laws of the United States.
jurisdiction on the reservation," said Thorpe. The
"The Pyramid Lake Tribal Council is the governing
Pyramid Lake governing body is also preparing a land
body of the Pyramid Lake Tribe in accordance with the
zoning code, and plans to take control of the sale of liquor
authority of its Constitution and By-Laws. The Council is
on the reservation, as well as adopting a business
responsible for Reservation economic growth and seeks
licensing code.
to ensure that residents of the Reservation enjoy
Thorpe said a total of 21 tax notices were mailed Feb.
adequate employment, health care, educational
23 following the Supreme Court decision. There are an
opportunities and social services.
estimated 200 non-Indian residents on the reservation
"There currently exists on the Pyramid Lake
who collectively own about 2,700 acres of fee lands
Reservation a number of non-members of the Tribe who
within the exterior borders of the 476,668-acre tribal
are engaged in businesses for profit. These non-members
domain.
therefore receive the benefits of doing business on the
Reservation without contributing toward any of the
costs. In order to correct this inequitable situation, the
Pyramid Lake Tribal Council deems it necessary to enact
this Tax Ordinance."
The Pyramid Lake Paiute Reservation covers 476,668
acres in Nevada's Washoe County. The reservation was
established by Executive Order of President Ulysses S.
Grant in 1874. The tribe is organized under the Indian
May 17, 1982
Page 15
The Outlook
development occurred in 1867 when the U.S. Congress
appropriated money for the construction of an irrigation
for Indian Water
canal on the Colorado River Indian Reservation in
Arizona. Since that time, federal involvement in Indian
water development has steadily increased.
Resource Development
Today, a total of 91 irrigation projects on Indian
reservations have been constructed and are operated by
JONATHAN P. DEASON, acting chief of the
the federal government. These range in size from the
Division of Water and Land Resources for the Bureau of
149,820 acre Wapato Irrigation Project on the Yakima
Indian Affairs in Washington, D.C., prepared the
Reservation in Washington to very small subsistence
following remarks for presentation before the 1982
units in California and New Mexico. As indicated by
National Specialty Conference of the American Society of
Table 1 (below), these 91 projects served 676,784 acres of
Civil Engineers in Lincoln, Nebr. on May 20. The text
land with irrigation water in 1981, producing crops
bas been slightly abbreviated for publication here.
valued in excess of $178 million.
Deason's BIA Division handles irrigation construction,
In addition to benefits from irrigated agriculture,
irrigation operation and maintenance, water resource
Indian water projects also provide flood control,
planning, agriculture and range programs on Indian
hydropower, municipal and industrial, rural domestic,
reservations in the U.S. Deason is a West Point graduate
recreation, fish and wildlife enhancement and
with an engineering degree. He bolds an MBA from
environmental quality benefits.
Golden State University, San Francisco, and a master's
Four projects operated by the Bureau of Indian Affairs
in science degree in environmental engineering from
(BIA) have power generation and distribution features.
Johns Hopkins University. He is currently working on a
Although the installed generating capacity is small
doctoral dissertation in water resource systems
(14.22 MW hydro plus 2,175 HP for direct irrigation
engineering at the University of Virginia.
pumping), the projects served over 27,000 accounts in
1981, mostly with purchased power.
by Jonathan P. Deason
FUTURE WATER DEVELOPMENT: Despite the
developments that have occurred, many Indian
In recent years, the 262 federally recognized Indian
reservations still have large development potentials.
reservations in the United States have begun to move
Together, the BIA and the Bureau of Reclamation
toward self-determination and away from dependency
(BuRec) have existing plans for the irrigation of an
on the federal government. This movement has come at
a time when the federal government is experiencing a
Table 1
growing inability, in the face of rapidly mounting deficits,
INDIAN WATER DEVELOPMENT
to provide for all of the needs of the reservations. These
(as of December 31, 1981)
changes have spawned a search for ways in which to
assist Indian tribal governments in attaining economic
Irrigation Projects Operated by the Federal Government
self-sufficiency for their reservations.
In the arid and semi-arid regions in the 17 Western
Number of Projects:
91
states, where the largest reservations are located, a new
Acres Irrigated:
676,784
look is being taken at opportunities for water re-
Annual Value of Irrigated Crops: $178,062,616
sources development as a key component in the
Annual OM&R Collections:
$12,300,000
economic development plans for many reservations.
HISTORIC TRIBAL WATER USE: The develop-
Power Projects Operated by the Federal Government
ment and beneficial use of water resources on Indian
Number of Projects:
4
reservations is not a new idea. In fact, the Hohokam
Accounts Served:
27,163
Indians of central Arizona are known to have irrigated
Generating Capacity:
14.22 MW +
140,000 acres of land with 135 miles of main canal over
2175 HP for
2,000 years ago. The use of captured rainwater for
pumping
irrigation was practiced at Chaco Canyon, N.M., and
Annual OM&R Collections:
$17,000,000
Mesa Verde, Colo. at least as early as 1000 A.D.
It has recently been confirmed that bottom lands on
Irrigation Units Operated by Others
the Nambe Pueblo, N.M. have been irrigated since 1350
A.D. The Tewa Indians diverted irrigation water from a
Acres Irrigated:
198,078
tributary to the Rio Chama at Sapawe, near El Rito,
Annual Value of Irrigated Crops: $48,746,246
N.M. at least as early as 1475 A.D.
The first federal assistance in Indian water
Page 16
The CERT Report
additional 274,000 acres of Indian land. There also exists
In general, feasibility determinations for the Indian
a very large potential for irrigation development on
portions of such projects will be based on special Indian
Indian lands that have not yet been subjected to planning
water project feasibility criteria that were approved by
studies. Furthermore, a number of reservations have
the Secretary of the Interior in 1980. These criteria take
large potential water needs for future mineral and energy
into account local economic and social impacts of the
development and for other purposes.
projects on Indian lands, in addition to the national
COMPREHENSIVE PLANNING: To insure that
economic impacts.
these needs and development potentials are pursued in
The bulk of water project work on Indian lands,
an orderly and rational manner, the BIA established a
however, will probably continue to involve the extension
comprehensive water resources development planning
and rehabilitation of existing works, and the develop-
program in fiscal year (FY) 1980. Under this program,
ment of relatively small projects. These works are
comprehensive reconnaissance-level water planning
constructed under the authority of the Snyder Act of
studies are being conducted on each reservation
Nov. 2, 1921 (42 Stat. 208; 25 USC 13). Future
according to a set of standard specifications that have
construction priorities for these projects will be based on
been developed by the BIA.
an irrigation funding priority system which is being
Plans developed under these specifications will be
developed at the request of the House Appropriations
used by the tribes to guide their long-term planning and
Committee's Subcommittee on Interior and Related
to identify water uses and areas that warrant more
Agencies.
detailed feasibility-level planning, possibly leading to
The development of a funding priority system for
design and construction.
Indian water projects is a challenging task, as the
An additional benefit of the planning program is that
objectives of Indian water resources development are not
it may help to promote negotiated settlement of water
confined only to economic efficiency. The BIA is using
rights claims among tribes and states. In the past, many
recent developments in the field of multicriteria
Indian tribes have been reluctant to negotiate their
decision-making techniques to develop a decision
claims, preferring instead to rely on litigation. One of the
support system that will enable BIA decision-makers to
main obstacles to negotiations has been a lack of
handle the complexities involved with multiple
technical data and expertise on the part of the tribes to
objectives. The nature of the problem and the efforts of
enable them to adequately substantiate their claims.
the BIA to address the problem are described below.
Tribes have been reluctant to negotiate from such weak
To illustrate the difficulties involved with multiple
bargaining positions.
objective problems, suppose that two noncommensur-
Recently, however, it has been more widely recognized
able criteria are used to evaluate potential investments in
that litigation is both costly and time-consuming, and a
Indian water development: economic return to Indians
number of tribes are actively seeking negotiated
(measured in dollars) and the number of Indian
settlements. The BIA is making an effort to assist these
beneficiaries (measured in number of people).
tribes by concentrating the majority of the water
If, at one extreme, it was decided to invest all available
resources development planning program efforts on
funds in the most economically efficient alternative (in
reservations where negotiations are underway or appear
terms of dollar returns to Indians), then the former
likely to occur in the near future.
objective might be well served at the expense of the
Since the water planning program was initiated in FY
latter. That is, if one particular reservation were situated
1980, a total of $10 million has been appropriated to
with easy access to a stable supply of high quality water, a
carry it out. Last year (FY 81), the BIA conducted a total
large expanse of level, highly arable land, a year-round
of 47 studies on 32 reservations. Seventeen of these
growing season, convenient access to markets, and
studies were conducted by private contractors, 23 were
similar attributes, then it is possible that maximum
conducted by other federal agencies, six were conducted
economic return would be achieved by investing all
by tribes and one was conducted by BIA personnel. In FY
available funding on that reservation alone. However,
82, the Bureau plans to conduct 57 studies and continue
the number of Indian people benefiting from the
22 studies on 29 reservations.
investment might be relatively small. This scenario is
IRRIGATION FUNDING PRIORITIES: Major
represented by policy x1 in Figure 1.
Indian water projects, such as the 110,630-acre Navajo
On the other hand, if it were decided to invest all
Irrigation Project in northwestern New Mexico, or
available funds in the most widely dispersed fashion,
major projects with significant Indian participation, such
then the latter objective might be well served at the
as the proposed 79,000-acre Animas LaPlata Project
expense of the former. This situation is represented by
(13,860 acres of which are on Indian lands) in
policy X2 in Figure 1.
southwestern Colorado and northern New Mexico, will
The problem at this point is to decide how much to
continue to be planned, designed and built by the BuRec
dilute the investment geographically such that the most
with the participation of the BIA.
desirable mix of objective accomplishment is attained.
May 17, 1982
Page 17
The trade-offs available between the two objectives are
Fig. 2 Illustration of preferred solution
illustrated in Figure 2. The curve in Figure 2 represents
what is commonly called the noninferior or nondom-
inated set or the Pareto optimal frontier. Any point
Income
People
below the curve represents a solution that is inferior to at
f1(x1)
f₂(x²)
least one point on the Pareto optimal curve in terms of
Income (S)
People (#)
both criteria. Therefore, the preferred solution will be on
the Pareto curve, but further identification of that point
cannot be made without the introduction of value
judgments.
f₂(x¹)
The irrigation funding priority decision support
f1(x²)
system that is under development by the BIA currently
contains fourteen criteria to evaluate the desirability of
x
potential investments. These are: total estimated cost of
Geographic dilution of investments
the project, ultimate annual OM&R costs, time until
(number of reservations)
attainment of self-sustaining status, extent of Indian
operations, condition of project, number of Indians
Fig. 1 Income and people objectives
affected, availability of adequate water supply,
as functions of the decision variable
enhancement of environment, conservation of water,
protection of water rights, cost-effectiveness ratio,
Indian employment effects, provision of means for
subsistence, and proper water management. These
criteria were developed by professional irrigation
personnel in six of the BIA's Area Offices in conjunction
with BIA policymakers in Washington, D.C.
CONCLUSION: As the history of Indian water
Income (S)
resources development has evolved from the works of
the Hohokam over 2,000 years ago to the extensive
federal works of today, the complexity of these activities
has increased markedly. The optimal attainment of
beneficial effects from future investments in Indian
water resources development presents a great challenge
to federal water planners. However, recent advances in
People (#)
multicriteria decision support systems provide hope that
future investments will be made in the most efficient
Fig. 2 Income and people objectives
manner possible, despite the complexity of the federal
as functions of each other
role in Indian water resources development.
Isopreference Curve
Utah's Rep. Hansen
Income (S) fix",
Apologies to Utes,
Withdraws Watt Letter
WASHINGTON-Utah's freshman Republican
Rep. James V. Hansen on Apr. 15 apologized in writing
to the Uintah and Ouray Tribe of Utah for use of
"negative and defamatory language" and "unforgivable
People (#)
stereotyping of American Indians in general" in a Mar. 9
letter Hansen had written to Interior Secretary James
Watt seeking Watt's views on the abrogation of all
American Indian treaties.
Page 18
The CERT Report
Hansen also on Apr. 15 sent a separate letter to Watt
Hansen told Uintah and Ouray Chairman Homey
withdrawing his original request for the Interior
Secakuku that numerous "contacts" with various Indian
Department to assess Indian treaty abrogation
groups since Mar. 9 convinced him the concepts of treaty
legislation introduced in the U.S. Congress in September
abrogation were not supportable.
Part of my
of 1977 (see next page).
disadvantage in this area," wrote Hansen, "has been my
Former Rep. Jack Cunningham, R-Wash., originally
lack of in-depth understanding of the needs and desires
introduced H.R. 9054, euphemistically called the Native
of the American Indians. This recent experience has
American Equal Opportunity Act, which empowered the
given me a better, though far from complete,
President to abrogate unilaterally all 371 treaties
appreciation for your desires to preserve your tribal
negotiated between the U.S. and Indian tribes, to close all
identity and cultural background and heritage. I want you
Indian reservations and shut down the Bureau of Indian
to know that your attorney, Martin Seneca, has been
Affairs (BIA). Rep. Mike Lowry, D-Wash., defeated
particularly helpful in thus educating me."
Cunningham in 1978 by upholding treaties as the
Seneca, former Indian Commissioner and now legal
"supreme law of the land."
counsel for the Uintah and Ouray Tribe since 1980, met
Congress of the United States
House of Representatives
Washington, D.C. 20515
April 15. 1982
Mr. Homey Secakuku
Chairman, Ute Indian Tribe
Ute Tribal Business Office
Box 190
Fort Duchesne, Utah 8 4026
Dear Chairman Secakuku:
I was grateful for the opportunity to talk by telephone with you and the other members of the Ute Business Committee. As 1
indicated 1 would do, I am following up on our conversation with this letter.
In regards to my correspondence with Secretary Watt of March 9, 1982, I would like to make two points:
First, I sincerely apologize for what may be construed to be negative and defamatory language. I now realize that my letter may
be interpreted as a most unfavorable stereotyping of American Indians in general, and the Ute Tribe in particular.
I have strong positive feelings for the American Indian people. I never intended to denigrate the American Indian; rather, I was
attempting to describe the conditions that I believe the Federal Government, and specifically the Bureau of Indian Affairs, have
imposed on the American Indian through its present policies. I believe these policies could be typified as being ones of broken
treaties, welfare, isolation and neglect, and such policies have led to the conditions that presently exist on many Indian
reservations.
The second point I would like to make is that I have never proposed, nor intended to propose, a bill similar to H.R. 9054, the
Cunningham Termination bill. That bill came to my attention quite by accident. Prior to having my staff spend time looking into
it, I thought I would obtain the observations of Secretary Watt regarding it. Nothing more was intended.
Subsequent to my March 9, letter requesting Secretary Watt's comments, my own research, and the information I received from
my contacts with various Indian groups, have convinced me that the concepts embodied in H.R. 905.1 are not concepts that I
could ever endorse. Accordingly, I have sent a letter to Secretary Watt withdrawing my request for his comments so as to avoid
wasting his office's valuable time. A copy of that letter is attached.
As I said to you on the telephone, part of my disadvantage in this area has been my lack of in-depth understanding of the needs
and desires of the American Indians. This recent experience has given me a better, though far from complete, appreciation for
your desires to preserve your tribal identity and cultural background and heritage. I want you to know that your attorney, Martin
Seneca, has been particularly helpful in thus educating me.
1 intend to continue to address what I perceive to be problems in our dealings with the American Indians. My commitment is
to do what is right for this country's first Americans, and at the present time, I feel that the best way to do this is to remove the
heavy-hand of the BIA and to maximize Indian self-determination.
I hope that you will be willing to communicate with me on this or other matters at any time.
Sincerely yours,
James V. Hansen
Member of Congress
May 17, 1982
Page 19
Congress of the United States
House of Representatives
Washington, D.C. 20515
April 15, 1982
The Honorable James G. Watt
Secretary of the Interior
Department of the Interior
C Street between 18th and 19th Streets, N.W.
Washington, D.C. 20240
Dear Jim:
On March 9, 1982 I sent to you a letter requesting your counsel on a bill introduced in Congress on September 12, 1977, H.R.
9054. This bill came to my attention shortly before I wrote to you. I had not looked at the bill in detail and before asking my staff
to allot time to do so, I sought your comments so as to decide whether it was worth our time. On March 16, your office sent a
reply indicating that you would examine the issue and respond.
Subsequent to my letter to you, I have studied further the ramifications of H.R. 9054. Additionally, I have benefited greatly
from numerous contacts with representatives of various Indian groups. It has become clear to me that the concepts embodied in
H.R. 905-1 are not concepts that I could endorse. Accordingly, in order to avoid the unnecessary use of your staff's valuable time,
I am withdrawing the request for your comments on H.R. 9054.
This is not to say that I intend to end searching for ways to solve what I perceive to be problems in our dealings with this
country's first Americans. It is my desire to insure that they be treated fairly and that we maximize their possibilities for
independence and self-determination, and I intend to continue seeking those goals.
Sincerely,
James V. Hansen
Member of Congress
several times with Hansen since Hansen's original letter
Hansen said he had not examined the treaty abrogation
was made public. Also meeting with Hansen in the
legislation in detail before he wrote his first confidential
capital were Suzanne Harjo of the Native American
letter to Watt, which was subsequently leaked to the
Rights Fund (NARF) and Executive Director Elmer
national Indian community. Hansen said he had also not
Savilla of the National Tribal Chairmen's Assn.
assigned any of his staff to examine the bill in detail.
(NTCA). Numerous Indian journalists contacted
Hansen, stating he did not wish to waste the time of
Hansen's office, and Hansen's Mar. 9 letter was printed
Watt's staff on a venture he now found unworkable,
verbatim in Wisconsin's Lac Courte Oreilles Journal,
formally withdrew his request for Interior's comments
South Dakota's Lakota Times, Washington state's
on the treaty abrogation legislation.
Yakima Nation Review, The CERT Report and other
Concluded Hansen: "This is not to say that I intend to
American Indian newspapers.
end searching for ways to solve what I perceive to be
"I intend to continue to address what I perceive to be
problems in our dealings with this country's first
problems in our dealings with the American Indians,"
Americans. It is my desire to insure that they be treated
Hansen told Secakuku. "My commitment is to do what is
fairly and that we maximize their possibilities for
right for this country's first Americans, and at the
independence and self-determination, and I intend to
present time, I feel that the best way to do this is to
continue seeking those goals."
remove the heavy hand of the BIA and to maximize
Hansen is a member of the House Interior Committee
Indian self-determination."
which reviews most legislation affecting American
WATT REACTION: In his Apr. 15 letter to Watt,
Indian people.
Page 20
The CERT Report
and books and supplies will be paid for by CERT.
In Brief
Transportation to the campus is the students'
responsibility. Interested students should contact CERT,
WHITE HOUSE SESSION SET
Colorado College, or WSU without delay:
-CERT, Office of Education in Human Resource
ON INDIAN EMPLOYMENT
Development, 5600 S. Syracuse Circle, Plaza North, Suite
WASHINGTON-Th Indian affairs staffer in the
206, Englewood, Colo. 80111, or call (303) 779-4760;
Reagan White House is putting final touches for a
-Dr. Val Rhoades Veirs, Colorado College Summer
"presidential meeting" in late May to assess the process
Session, Armstrong Hall, Room 125, Colorado Springs,
of widening the job market on Indian reservations amid a
Colo. 80903, or call (303) 473-2333, Ext. 647 or 575;
reservation employment emergency developing as a
-Dr. William Willard, Director, Native American
result of Reaganomics.
Studies, Washington State University, Pullman, Wash.
Morton C. Blackwell of the White House Office of
99164, or call (509) 335-8676.
Public Liaison and the Presidential Task Force on Private
Initiatives in mid-April sent letters of inquiry to a limited
CERT TRIBAL TAX FORUM MAY 17
number of Indian leaders and organizations seeking
DENVER, Colo.-An intensive one-day Tribal
information concerning the most successful tribal
economic ventures on reservations, and sought a list of
Taxation Policy Forum will be held here May 17 at the
the top Indian business leaders across the country as well
Stapleton Plaza to advise and assist tribal governments
as a suggested list of corporate and business leaders who
in implementing tribal taxation authority recently
affirmed by the U.S. Supreme Court.
have played a major role in those successful reservation
The day-long session will provide information on
economic enterprises.
The Blackwell letter indicated that about 50 Indian
tribes' powers to tax and the legal, economic and
administrative ramifications associated with alternative
economic leaders and 50 major "corporate decision-
makers" would be assembled for the White House
tribal tax policies.
In the morning session Atty. Marvin Sonosky will
meeting. Either President Ronald Reagan or Cabinet
assess the broad field of taxation and tribal sovereignty.
officers would address the conference.
Then the mechanisms and economics impacts of mineral
CERT OFFERS SUMMER PROGRAMS
taxation will be presented by Thomas K. Tulk, CERT
director of the office of resource assessment and
ENGLEWOOD, Colo.-The Council of Energy
development, and CERT Financial Analyst Frank Long.
Resource Tribes is sponsoring a summer academic
The afternoon session will examine the legal issues of
program at two college campuses in Colorado and
tribal taxation, then explore the administrative workload
Washington state called "Tribal Institute in Business,
of tribal mineral taxation.
Engineering and Science."
The CERT Tribal Policy Forum was created by
The institute will be held at the Colorado College in
resolution of the CERT Board of Directors during a
Colorado Springs, Colo., June 13 to Aug. 5; and at
board meeting last Mar. 4. A host of Indian law attorneys
Washington State University, Pullman, Wash., June 21
and Indian economics specialists will assist throughout
to Aug. 13.
the presentations and questions.
Both campuses will feature eight-week summer
programs designed to enhance the academic skills of
ISLETA PUEBLO CONSIDERS ARCO BID
recently graduated American Indian high school students
ALBUQUERQUE, N.M.-Isleta Pueblo of New
interested in careers in business, engineering and science.
Mexico is considering a $1.2 million bonus bid by Arco
Students successfully completing the courses in
Exploration to lease 62,000 acres, according to the May 7
mathematics, science, engineering and computer science
will receive up to 10 and a half semester hours of college
edition of Platt's Oilgram News.
Platt's said the Arco bid represented the only offer for
credit at Colorado College and up to nine hours at WSU.
the entire Block B, including 124 tracts in Bernalillo and
In addition to academic courses, the students will have
Valencia counties which Isleta Pueblo has proposed to
opportunities to visit personalities from industry and
lease as one unit.
meet American Indian professionals who work in the
Arco's $20 per acre bid topped the minimum $16.75
fields of energy and power.
set by the Bureau of Indian Affairs (BIA), said the
During the eight-week period, the students can assess
their academic foundation to pursue college courses and
publication.
they can receive assistance to enter the college or
FEDERAL ROLE IN TRIBAL TAXATION?
university of their choice.
Qualified American Indians will be selected and
DENVER, Colo.-Mineral severance taxes levied by
supported by CERT. Costs for tuition, room and board
Indian tribes on non-Indian leases are subject to public
May 17, 1982
Page 21
comment and judicial review, the Rocky Mountain Oil
ments and Indian tribes," Hickok said. "These activities
and Gas Assn. (RMOGA) has asserted in contacts with
could include developing zoning or building codes,
Interior Secretary James Watt, according to the Apr. 26
devising local conservation or renewable resource action
edition of Federal Lands.
plans, or creating innovative approaches to conser-
RMOGA asked Watt that tribal severance tax
vation."
ordinances be run through the federal administrative
Hickok said the funding program is part of the
review process, including publication in the Federal
agency's strategy to develop long-range energy
Register, comment periods and the opportunity for
conservation resources by stimulating activities which
judicial review before the taxes themselves are levied.
lead to cost-effective conservation.
RMOGA's initiative followed a request by the
"Local governments, by virtue of their authorities in
Southern Ute Tribe of Colorado for Interior's approval of
zoning, building codes, and other community issues, are
a severance tax on non-Indian mines on the Southern
uniquely able to effect conservation in many areas. A
Ute Reservation in Colorado's La Plata, Archuleta and
small investment in conservation planning at the local
Montezuma Counties. The Southern Ute request for
level can have large payoffs in the long run through more
approval is the first since last Jan. 25 when the U.S.
efficient energy uses in the community," Hickok said.
Supreme Court upheld the right of tribes to impose
This is the second BPA solicitation for conservation
mineral extraction taxes.
planning efforts by local governments under the regional
RMOGA said it believed Interior approval of mineral
power act. In October 1981, BPA awarded $700,000 to 18
severance tax ordinances also required compliance with
local governments, Indian tribes, and coalitions of local
routine federal administrative procedures.
governments for similar planning activities.
"The responses to our 1981 solicitation were of
BPA SEEKING NORTHWEST
excellent quality, and have enabled BPA to sponsor
TRIBAL PROPOSALS
pioneering conservation planning work in a number of
Northwest communities," Hickok said. "I hope and
PORTLAND, Ore.-Northwest local governments
expect the responses to this year's solicitation will be
and Indian tribes which want to plan local conservation
even more creative."
efforts in electric energy can apply to the Bonneville
Power Administration (BPA) for planning funds now
through July 2, according to BPA Conservation Manager
Further information on the program can be obtained
Steve Hickok.
from Terry Oliver by calling (503) 230-5311. Copies of
"We have budgeted $524,000 this year for conserva-
the solicitation are available from Rosa Leon (503) 230-
tion-related related planning actions by local govern-
5192. Refer to number DE-RP79-82BP35496.
Legal Notices
Proposed amendment-9:00 am-5:00 pm or until all speakers have been
heard.
FOR FURTHER INFORMATION CONTACT: Thomas E. Belk,
Chief, Ground Water Protection Branch, Environmental Protection Agency,
(202)426-3934.
ENVIRONMENTAL PROTECTION AGENCY
SUPPLEMENTARY INFORMATION: An issue which has arisen as a
40 CFR Part 122
result of the enactment of the Safe Drinking Water Act, section 1425 (the
[FRL 1946-5]
"W axman amendment") is what kind of program pursuant to section 1422(c)
of the Act should EPA prescribe for Class II wells on Indian lands located in a
Underground Injection Control Program
State which does not have jurisdiction over the Indian lands or which does not
Agency: Environmental Protection Agency
have an approved Class II program.
The Agency's position with regard to a State's assertion of jurisdiction over
Action: Proposed rule.
Indian lands was set forth in the preamble to 40 CFR Part 123 as follows:
"EPA will assume that a State lacks authority unless the State
SUMMARY: The Environmental Protection Agency EPA) is proposing
affirmatively asserts authority and supports its assertion with an
an amendment to its Consolidated Permit Regulations (40 CFR Part 122), as
analysis from the State Attorney General. Thus, the State will not be
promulgated on May 19, 1980, to allow more flexibility to the Agency in
forced to take a position unless it chooses to assert jurisdiction." 1.15 FR
prescribing Class II Undergrund Injection Control programs for Indian lands
33378).
under the Safe Drinking Water Act.
DATE: EPA will accept public comments on the proposed amendments
As a result, EPA will prescribe and implement Underground Injection Control
until June 7, 1982, either in writing or the informal public hearing to be held at
(UIC) programs on Indian reservations and lands except in cases where State
the time and place listed below.
has chosen to assert and has demonstrated the requisite jurisdiction. Under the
ADDRESS: Written public comments should be sent to the Comment
current Consolidated Permits Regulations, when EPA prescribes a program,
Clerk, UIC Program Regulations, Office of Drinking Water (WH-550), EPA,
whether for a State or Indian lands, it will do so in conformance with the
Washington, DC 20460.
requirements of 10 CFR Parts 122, 12.1 and 1.16, insofar as they apply to UIC
PUBLIC HEARING: A public hearing will be held in Washington, D.C.,
programs (see e.g. 40 CFR 122.1(b)(1 and (iii).
at the U.S. Environmental Protection Agency, 401 M St. SW, Room 3908 M,
The amendment proposed here today is not intended to suggest a change in
on June 2, 1982. The Agenda for the hearing is as follows:
the Agency's position concerning State assertion of jurisdiction over Indian
Registration, 8:30 am-9:00 am
lands. EPA believes that its approach, as expressed in CFR Part 123, is still
Page 22
The CERT Report
correct. However, EPA does wish to raise the question of whether the Class II
Indian lands and reservations may be patterned after State programs in States
(oil and gas-related injection wells) UIC programs prescribed by the Agency
which have primacy under Section 1425.
for Indian lands should invariably follow 40 CFR Part 122, 124 and 146 or
In States where EPA has jurisdiction, the Agency may prescribe a unified
whether the Agency should be more flexible and take a number of
Fedeal Program pursuant to the Consolidated Permit Regulations and Part
considerations into account in designing an appropriate Class II UIC program
146. Alternatively the Agency may prescribe a program different from either
for a particular Indian reservation.
of these approaches, which may be suggested by the affected tribal government
The Agency's original approach would have assured that whenever EPA
or other interested parties if that approach is deemed more appropriate and
was responsible for implementing an UIC Program, only one set of Federal
satisfies the requirements of the Safe Drinking Water Act. However, the
standards based on 40 CFR Parts 122, 124 and 146 would have applied. The
Agency would in all cases take into consideration the desires of the tribal
existence of only one basic Federal program could have benefited not only EPA
governments in establishing the specific programs.
in administering the program but also owners and operators who would have
Each specific Class Il program prescribed for Indian lands or reservations, as
had to learn but one set of requirements. This could be an important
all UIC programs prescribed by EPA, will be prescribed through formal
consideration since Class II operators also operate other types of injection
rulemaking, with further opportunity for public comment and public hearing.
wells, for example Class III. The existing regulations already provided some
The Agency is requesting public comment on this amendment, specifically
degree of flexibility to allow local circumstances to be taken into consideration.
whether other pertinent factors have been overlooked which should be
They did not, however, have the degree of flexibility that section 1425 provides
considered by the Administrator when prescribing Class II UIC programs for
for Class II wells. Thus the Agency is proposing to be more flexible and to take
Indian reservations and lands. The Agency particularly welcomes comment
a number of considerations into account in designing a Class Il program for
from Indian tribes, oil and gas producers and others on the issue of tribal input
Indian lands. In designing such a program it should be recognized that EPA is
into the Administrator's determination and the issue of consistency between
limited by Federal statutory authority in the types of requirements it can
programs in adjoining jurisdictions.
establish, and these limits will have to be taken into account when prescribing
specific programs.
Impact on Small Businesses
There are, however, two reasons why EPA believes that it may be
appropriate to change its approach and the Agency wishes to invite comments
Under the Regulatory Flexibility Act an agency is required to prepare an
on the proposed changes from interested parties. First, subsequent to the
initial regulatory flexibility analysis whenever it is required to publish general
promulgation of the Consolidated Permit Regulations, Congress amended the
notice of any proposed rule, unless the head of the agency certifies that the rule,
Safe Drinking Water Act (SDWA). New section 1425 allows a Staste to make
if promulgated will not have a significant economic impact on a substantial
an alternative demonstration in order to gain EPA's approval for its Class Il
number of small entities. This amendment is proposed in order to provide
program. Whereas previously under section 1422 of the SEWA the State had
increased regulatory flexibility; therefore, the Administrator certifies that this
to demonstrate that its UIC program met the requirements of the Consol-
regulation will not have a significant impact on a substantial number of small
idated Permit Regulations and Part 146, under section 1425 a State may choose
entities.
to demonstrate that its Class II UIC program meets the requirements of
section 1421(b)(1a)(A)-(D) and represents an effective program to prevent
Executive Order 12291
endangerment of underground sources of drinking water.
Prior to the enactment of section 1425, EPA expected all programs, whether
Under Executive Order 12291, EPA must judge whether the proposed rule
adopted by States or prescribed by EPA, to share a certain degree of consistency
is major and therefore subject to the requirements of a regulatory impact
since they would all be based on the Consolidated Permit Regulations and Part
analysis. The proposed amendment would provide increased flexibility to the
146. Under section 1425, however, EPA expects to approve a number of State
Administrator and does not set any specific requirement for the regulated
Class II UIC programs which, while effective, may vary significantly from the
community. It does not constitute major rulemaking.
program the Agency would prescribe pursuant to the Consolidated Permit
This amendment was submitted to OMB for review as required by Executive
Regulations and Part 146.
Order 12291.
The opportunity for an alternative demonstration under section 1425 raises
the possibility, if EPA retains its current approach, that the State (within its
(Secs. 1421, 1422, 1423, 1431, 1445, 1447, 1450, Safe Drinking Water Act, as
jurisdiction) and EPA (for Indian lands) will establish inconsistent require-
amended 42 U.S.C. 300(f) et seq.)
ments for the regulation of oil and gas-related injection wells. This possibility
is compounded by the fact that Indian lands cross State boundaries.
Ann M. Gorsuch,
The Agency is mindful of the admonition of the Safe Drinking Water Act
Administrator.
that, to the extent feasible, EPA regulatory actions designed to protect
underground sources of drinking water should not unnecessarily interfere with
List of Subjects in 40 CFR Part 122
or impede underground injections in connection with oil and natural gas
production and recovery. In this regard, the Agency is aware of the possibility
Administrative practice and procedure. Air pollution control, Hazardous
that special circumstances may exist in certain cases where the presence of two
materials, Reporting and recordkeeping requirements, Waste treatment and
inconsistent Class II programs within a givenState, within a given reservation,
disposal, Water pollution control, Water supply, Confidential business
or perhaps between a reservation and an adjoining State, might create an
information.
undue burden on affected oil and gas producers.
40 CFR Part 122 is amended as follows:
The second reason for this proposal is that the Agency is mindful of the
responsibilities and interests of tribal governments having authority over
Part 122-EPA Administered Permit Programs: The National
Indian lands. In keeping with the special "government-to-government
Pollutant Discharge Elimination System; The Hazardous Waste Permit
relationship" which generally exists between such tribes and the Federal
Program; and the Underground Injection Control Program
Government, it is appropriate to give special consideration to the expressed
interests and desires of the affected tribal government when prescribing a
1. Add $122.46 which reads:
Federal program for the Reservation.
The amendment proposed here today would allow EPA to prescribe
$12246 Promulgation of Class Il programs for Indian lands.
themost appropriate Class II program for individual reservations or Indian
Notwithstanding the requirements of this Part of Parts 124 and 146, when
lands where it is responsible for the UIC program. In determining the
the Administrator prescribes a Class II program for an Indian reservation or
appropriate program in each case, the Administrator would take into account:
for Indian lands, he or she may do so in a manner that he or she deems
(1) The interests and preferences of the responsible tribal governmetn or
appropriate for the individual reservation or Indian lands. In prescribing such
nation; (2) the goal of simplifying regulatory requirements applicable to
programs the Administrator shall consider the following factors:
producers of oil and gas; and (3) the authorities and responsibilities conferred
(a) The interest and preferences of the tribal government having
upon EPA by the Safe Drinking Water Act to protect underground sources of
responsibility for the given reservation or Indian lands.
drinking water.
(b) The consistency between the prescribed program and program or
The Agency proposes to consider these factors in each case, based upon the
programs in effect in adjoining jurisdictions.
facts pertaining to the individual reservation. The Agency anticipates that as a
(c) Such other factors as are necessary and appropriate to attain the
result of the proposed amendments some of the programs it prescribes for
purposes of the Safe Drinking Water Act.
May 17, 1982
Page 23
Opportunities
HELP WANTED
DIRECTOR, American Indian Bilingual Education Center (AIBEC),
$17,844. Members of the bar of another jurisdiction may practice in New
College of Education, University of New Mexico, Albuquerque, 87131.
York State for an 18 month period while working with a legal services
Qualifications:
office. In addition persons practicing five years or more in another
1. Doctorate preferred with specialization in the areas of American
jurisdiction may generally be admitted without taking the bar examination.
bilingual education and educational administration.
Southern Tier Legal Services is an equal opportunity employer, and will
2. Minimum experience (3-5) in administration of, and working with
not discriminate on the basis of age, race, color, religion, sex, sexual
American Indians with emphasis on Navajo, Pueblo, and Oklahoma
preference, marital status, parental status, handicap or disability, national
American Indian education programs.
origin or prior criminal record not related to job performance. Minorities,
3. Knowledge and experience in the area of American Indian teacher
women and handicapped are encouraged to apply. There is an especially
training, i.e. planning, coordinating and implementing workshops and
strong need for black, Native American, and women attorneys in this area.
technical assistance activities.
4. Fluency in English and an American Indian language of the target
SUMMER JOBS FOR COLLEGE STUDENTS: Hewlett-Packard's
service area (Navjao, Apache, Pueblo, or Oklahoma American Indian
Summer Employment and Educational Development (SEED) Program
languages).
seeks out those highly motivated college students who want to broaden their
5. Knowledge of the American Indian cultures and educational systems
education and advance their career with a practical co-op or summer work
included in the target service area.
experience in a sophisticated technological environment. Once accepted in
6. Knowledge of, and experience with federal project administration and
SEED, these students are viewed as potential permanent Hewlett-Packard
university structure.
employees. Openings are available in Research and Development,
7. Minimum of three years classroom teaching experience (bilingual
Manufacturing, Marketing, Finance, and Personnel.
education preferred).
HP recruits at over 200 U.S. campuses. Check with your placement office
8. Knowledge of the Bilingual Education Title VII Network.
for HP's campus recruiting schedule, and sign-up for an interview. Or, you
9. Experience in developing and writing proposals.
can apply directly to: SEED, Hewlett-Packard Co., Mail Stop 20AD,
Duties and Responsibilities (partial listing):
Hanover Street, Palo Alto, CA 94304.
1. Administers Center according to proposal specifications in providing
services to Title VII American Indian bilingual projects and LEAs
requesting service within service area.
PUBLICATIONS
2. Selects and supervises qualified personnel necessary to achieve the
goals and objectives of the Center.
POSTER AVAILABLE. The 20" X 30" full-color poster features "The Flag
3. Assumes responsibility for the Center's budget, preparation and
Carrier," depicting the prologue to Crow tribal council ceremonies, by
submission of interim and final reports, and evaluation of Center's
celebrated Crow artist Kevin Red Star. The limited edition was printed to
activities.
commemorate Night of the First A mericans. the March CERT-sponsored
4. Works closely with Title VII target programs, SEAs, BESCs, other
Kennedy Center performance in Washington, D.C. to raise funds for Indian
Title VII Network agencies, and Tribal groups in the service area to
education programs in engineering, the sciences and business management.
promote effective service development for target area bilingual projects.
All posters are signed personally by the artist; proceeds from sales will
5. Represents Center within UNM structure and establishes and
benefit the education program as well. To order, please send $30 (plus $2.50
maintains a sound public relations program with all agencies.
for postage and shipping) to: Attention Julia Nichols, Council of Energy
Employment: Position to be filled on or after June 30, 1982 and to exist
Resource Tribes, 1140 Connecticut Avenue, N.W., Suite 310, Washington,
for a three (3) year period contingent on continued federal funding.
D.C. 20036. Checks payable to: Night of the First Americans (CERT).
Salary Range: $25,043-$27,000-commensurate with training and
experience and UNM Personnel Policies.
CREEK CALENDAR: The Creek Indian Calendar Co. is offering an 11" x
Closing Date for Application: April 30, 1982.
19" size, poster-type calendar, printed in the Muscogee and English
For more information contact: Dr. Ignacio R. Cordova, Director,
languages. It retails at $1.00 per calendar and can be ordered from the
Multicultural Education Center, College of Education, University of New
address below. There will be an additional charge of $1.50 per order to cover
Mexico, Albuquerque, N.M. 87131, Telephone: (505) 277-5961.
postage costs. Creek Indian Calendar Co., P.O. Box 307, Stillwater, OK
Submit Applications to: Personnel Office, University of New Mexico,
74076.
1717 Roma, N.E., Aubuqerque, N.M. 87131.
CAPITAL INDIAN GUIDE: New 1981 D.C. Directory of Native
STAFF ATTORNEY. Southern Tier Legal Services seeks to fill a staff
American Federal and Private Programs at $5.00 per copy. Directory lists
attorney position. The program is a five attorney program serving a largely
contact names, title, mailing address and phone number of White House,
rural population in Steuben, Allegany and Cattaraugus Counties in
U.S. Congress, federal government, Indian organizations, Indian interest
southwestern New York State. The practice is primarily in the areas of
groups, Indian business and professional groups, religious organizations,
housing, public benefits, health and education law. The position is located in
research sources, arts and crafts. Indian media, points of Indian cultural
our main office in Bath, a small community in the western Finger Lakes area
interest and general information on airlines, night spots and frequently used
about one and one quarter hours south of Rochester. The area is
hotels and motels in D.C., Md., and Va. near IHS and BIA offices. Available
exceptionally beautiful and has a variety of outdoor recreation activities.
for $5 by ordering from D.C. DIRECTORY, American Indian Program,
There is a possible opportunity for concentration in one or more of the
Phelps-Stokes Fund, 1029 Vermont Ave. NW, Suite 1100, Washington,
program's priority areas. An experienced attorney is preferred, although an
D.C. 20005.
exceptionally well qualified law school graduate will be considered.
Applicants should send a resume, a sample of their legal writing, and the
ENERGY STUDIES: Now available free of cost, Publications of the
names, addresses and telephone numbers of three references to Southern
Geological Survey. 1980. 352 PP. Cumulative listing of publications
Tier Legal Services, 56 Liberty Street, Bath, New York 14810 (Attn.: Gerald
advertised monthly in New Publications of the Geological Survey during
A. Mclntyre, Executive Director). The salary range for an experienced
1980. Free on application to Eastern Distribution Branch, Text Products
attorney is from $19,626 to $29,277, depending on the level of experience
Section, U.S. Geological Survey, 604 S. Pickett St., Alexandria, VA 22304.
and tenure with the program. The starting salary for a law school graduate is
THE
CERT
REPORT
1140 Connecticut Avenue, NW
Suite 310
Washington, DC 20036
The CERT Calendar
Sponsor
Subject
Date
Location
House Interior
Hearing on H.R. 5856, Indian Land
May 20, 1982
Room 1324
Committee
Consolidation Act of 1982 by Udall
Longworth HOB
Washington, DC
9:30 a.m.
Latin American
American Indian International Conference
May 24-26, 1982
University of
Institute
New Mexico
Albuquerque, NM 87131
Dr. David Warren
(505) 227-2961
National Congress
Mid-Year Conference with focus on
May 26-28, 1982
Town & Country Hotel
of American
BIA realignment and reorganization.
San Diego, Cal.
Indians
Coordinator:
Roanne Robinson
(202) 546-1168
House Interior
Hearing on H.R. 5425, H.R. 5426 and
May 27, 1982
1324 Longworth HOB
Committee
H.R. 5989, Osage Nation Reorganization
Washington, DC
Act and bills to define membership of Osage
9:30 a.m.
Tribe.
Native American
Sixth Annual National Indian Media
June 6-9, 1982
Old Town Sheraton Hotel
Public Broadcasting
Conference with workshops in print
Albuquerque, N.M.
Consortium
journalism, radio, TV and film
Frank Blythe
(402) 472-3522
Senate Select
Oversight hearings on BIA, tribal
June 9, 1982
Roo 6226
Committee on
and FBI law enforcement on Indian lands
Dirksen SOB
Indian Affairs
with possible bill on Federal Magistrates.
Washington, DC
9:30 a.m.
Electronic Industries Association
INDUSTRY
EST 1984
March 29, 1982
Mr. Vincent P. Lachelli
1919 Pennsylvania Avenue, N.W.
Suite 301
Washington, D.C. 20006
Dear Mr. Lachelli:
I enjoyed our recent meeting, and was intrigued by your work on behalf
of the Indian population in the U.S. The economic strategy which you have
developed, and the consequent administration policy, make a great deal of
sense to me; I look forward to discussing them further with you. TO that
end, I have set up a luncheon meeting on Wednesday March 31 for you, me
and Jim Burge, Vice President of Personnel for Motorola, Inc. We will
meet at noon at the Shoreham Hotel, in the main lobby.
In addition to a general discussion of your project and EIA's interest
in it, I would like to discuss two items which occurred to me upon reflec-
tion of our meeting on Friday. First, one major assumption of your policy
position is that high technology industries will be expanding and building
new plants and facilities. I believe this should be substantiated and
would recommend a study to collect such information. TO the extent that
this regards economic development of Indian tribes and reservations, I
would expect the Department of Interior to be a funding source for such a
study. The second item, which is related to the first, regards White House
involvement in your project. There are numerous policy matters relevant to
your work which fit very nicely into the Reagan administration - - for
example, private sector involvement, and economic development in depressed
areas of the U.S. (interprize zones). Inasmuch as this activity deals with
growth of high tech industries, it may be very useful to involve the
President's science and technology policy advisor, Mr. George Keyworth.
Let's discuss these matters further on Wednesday. I look forward to
seeing you.
Sincerely,
Thomas B. Patton
Director, Human Resources Council
CC Jim Burge, Motorola
2001 Eye Street, N.W.
Washington, D. C. 20006
(202) 457-4900
TWX:710-822-0148
WILLIAM s. COHEN, MAINE, CHAIRMAN
BARRY GOLDWATER. ARIZONA
JOHN MELCHER. MONTANA
MARK ANDREWS. NORTH DAKOTA
DANIEL K. INDUYE, HAWAII
SLADE GORTON, WASHINGTON
DENNIS DE CONCINI, ARIZONA
TIMOTHY c. WOODCOCK, STAFF DIRECTOR
PETER s. TAYLOR. GENERAL COUNSEL
United States Senate
SELECT COMMITTEE ON INDIAN AFFAIRS
WASHINGTON. D.C. 20510
WITNESS LIST FOR APRIL 29, 1982
OVERSIGHT HEARING
INTRODUCTORY REMARKS
Alan R. Parker, Counsel, Karl A. Funke & Associates.
National Congress of American Indians
Joe DeLaCruz, President
Chairman, Quinault Indian Nation
Joe Baca, Chairman, NCAI Economic Development Committee
Member Tewa and Santa Clara Pueblo Tribes
Robert McLaughlin, Committee Member and Special Assistant
to the Chairman; Member Standing Rock
Sioux Indian Tribe
Ted Bryant, Committee Member
Member of Deloit, Haskins and Sells Accountants
Council of Energy Resource Tribes
Harry Early, Chairman, CERT Economic Development Committee;
Governor Laguna Pueblo
Ronald Guiterez, Committee Member;
Councilman, Spokane Indian Tribe
Caleb Shields, Committee Member,
Councilman, Ft. Peck Indian Community
National Tribal Chairman's Association
Phillip Martin, President
Chief, Mississippi Choctaw Indian Tribe
Ernest Tiger, Economic Development Specialist,
Mississippi Choctaw Indian Tribe
Charles Trimble, President
Charles Trimble Co.,
Member Oglala Sioux Indian Tribe
American Indian National Bank
William Yallup, Member of AINB Board of Directors;
Councilman, Yakima Nation
Conley Ricker, Chief Executive Officer, A.I.N.B.
Statement of Alan Parker
Counsel, Karl Funke & Associates
Before the Senate Select Committee on Indian Affairs
Oversight hearing on Indian Economic Development
Mr. Chairman, members of the Select Committee on Indian Affairs, I
wish to express my appreciation on behalf of the Indian tribes and
organizations represented here today for your agreement to schedule
this hearing on Indian economic development policies and issues.
It is my privilege to begin the testimony of Indian witness appearing
before this committee by providing a brief overview of those economic
conditions currently prevailing in Indian Country which have prompted
the leaders of the major national Indian Organizations represented to
request this hearing. The National Congress of American Indians,
Council of Energy Resource Tribes and National Tribal Chairman's
Association will be presenting testimony which summarizes a joint
Indian position regarding long term, mid range and short term or
immediate objectives and needs. Taken together, their statements
address Indian tribal economic needs and goals on a comprehensive,
coherent basis. Their recommendations for legislative, administrative
and tribal initiatives constitute, in our view, a historic first in
terms of the formulation of a realistic and achievable economic policy
for Indian Affairs. This joint Indian testimony is based on the
longstanding positions of Indian tribal leaders, as well as recommend-
ations which have consistently been identified by the Congress, the
GAO and leading experts in the field of Indian Economic Development
and we are convinced that it effectively outlines the range of
strategies and tasks needed to achieve real progress toward the goal
of Indian economic self-sufficiency.
1
Current Economic Conditions
There is really no room for debate over the fact that American Indians
and Alaskan Natives experience poverty and unemployment along with the
associated incidences of social pathologies, to an extent unequalled
by any other group in America. These findings have been documented by
every major task force and report on the subject and the U.S. Bureau
of the Census. Despite occasional and isolated examples of economic
progress, Indian reservation-resident per capita income, unemplovment
percentages and other relevant standard of living criteria show that
the qap between the economic standard of Indian and non-Indian
society has been increasing rather than decreasing in recent years.
For example, in a recent report prepared in January 1982 by the Navajo
Nation entitled "A Matter of Life", the official BIA unemployment rate
for the reservation was estimated to be 75% and projected to exceed
80% by 1983. In 1979 the Bureau of Economic Analysis, U.S. Department
of Commerce, estimated that rural Indian income per capita was $3,246
compared to the U.S. average $8,773. While the 1980 census data on
such items is not vet available, there is little doubt that it will
confirm the presence of extremely depressed economic conditions in
Indian Country on a nationwide basis. In the face of these conditions
of severe economic distress, it is clear that there are no rich or
poor tribes, small or large tribes, the suffering and need is the same
for all. These conditions have, of course, only been excerbated by
dramatic reductions in the level of federal assistance provided to
Indian Tribes in FY '81 and 82. However, the attention focused on
these problems has had the unintended but beneficial effect of shed-
ding light on the underlying causes of the depressed tribal economy.
2
That is, the level of dependency on federal program assistance which
has developed in Indian Country has been demonstrated in stark terms
as a result of these federal budget cuts, particularly in such areas
as CETA, EDA and HUD. Indeed, as forcefully pointed out in the Navajo
report, such federal programs have created and sustained the founda-
tions for the economy on most reservations and the traumatic withdrawal
of such assistance has not only undermined tribal efforts to create a
viable private sector economy but also crippled their abilitv to provide
essential government services. Because the level of non-federally
subsidized industrial and commercial activity on the reservations has
been minimal, there are no real employment alternatives to such federal
programs and, in the face of such staggering levels of unemployment, the
market for goods and services produced by the fledging tribal private
sector is itself depressed. Finally, the absence of a viable private
sector on the reservation has greatly constrained the ability of Indian
tribal governments to generate local tax revenues needed to support
those essential government services and phvsical infrastructure
construction necessary to attract private business and industry.
Fundamental Obstacles to Indian Economic Progress
In study after study commissioned by the Conqress, the GAO, executive
branch agencies and the tribes themselves, there is clear agreement
regarding the fundamental obstacles to balanced economic growth in
Indian Country: the lack of access to development capital and sources
of commercial credit for the Indian business enterprise development, the
lack of effective control over the development and management of Indian
natural resources by the Indians themselves, and the absence of an
experienced cadre of Indian managers and technicians. The testimonv of.
3
the three Indian organizations will identify and recommend tasks and
strategies which can and should be taken to overcome these obstacles.
For now it is sufficient to point out that these interrelated problems
can be effectively dealt with through a systematic and multifaceted
approach the substance of which constitutes the economic policy being
recommended on a joint basis bv the Indian leaders themselves.
Critique of past and present federal policies
"Too little and too late" accurately describes past and present federal
efforts to stimulate and support Indian economic development. Lacking
sufficient internal capital and effectively cut off from conventional
sources of private financing, Indians have found themselves almost
totally dependent upon the federal government as their primary source of
capital for development. Since the 1950's, the federal government has
provided capital in the form of catagorical grants, subsidized loans,
loan quarantees and interest subsidies. The record of the federal
programs providing assistance to reservations has been mixed, and the
impact of federal assistance has been diminished, according to several
Congressional studies conducted over the past decade, because of a
number of deficiences in the administration of these programs. They
include inadequate project review and monitoring, inadequate technical
assistance, lack of effective coordination between agencies and
inadequate funding. The failure of. these efforts to achieve meaningful
and tangible progress has served to discourage many tribes and their
friends in the Congress. Despite this discouragement, the experience
gained over the past decade has served to identify the steps that can be
taken to overcome many of these deficiencies and shortcomings in the
administration of federal economic development assistance programs.
4
As the following testimony will point out, an essential and vital role
for such federal assistance must be part of any rational and carefully
formulated economic policy for Indian Affairs. Indeed, any attempt to
build tribal economies which can, eventually, be truly self-sustaining,
must be premised on continued assistance for physical infrastructure,
development planning, investment incentives and development financing to
name only a few elements.
Indian Economic Development and the Trust Rsponsibility
A sound economic policy for Indian Country can only be based on
adherence to the U.S. Trust Responsibility which includes as its
essential elements such legal protections for the Indian land and
natural resources as preservation from sale or financial encumberance,
exemption from federal and state taxation, and freedom from state
control and requlation. All to often, the trust status of Indian lands
and resources is characterized as a negative influence on Indian
economic development potential in the sense that the trust status is a
constraint on using these assets as collateral and security for
financing. However, such an argument not only ignores the fact that
viable alternatives to such security interest protection mechanisms are
well established, but also overlooks the positive aspects of the trust
status in relation to economic development potential. For example,
triballv owned business enterorises enjoy significant tax advantages and
reservation based commercial activities mav be eligible for federally
and tribally sponsored incentives and protections which can serve to
enhance their economic status. Thus, maintenance of. the trust
responsibility will serve to protect the tribal status of the reserv-
ation homelands and provide a distinctive Indian nature to the tribal
5
economy itself. At the same time, it can be expected that the
regulatory and bureaucratic nature of the federal trust agency will
diminish as tribes assert a greater level of control over the
development and management of their own natural resources.
In closing, I would like to again express my thanks to you,
Mr. Chairman, for your sincere interest in these matters which are
of such vital importance to the Indian tribes and their people. The
priority and urgency which is ascribed to these questions of Indian
Economic Policy bv the leaders of the major Indian Tribal organizations'
is attested to by their unprecedented efforts to formulate the joint
position to be presented to this committee. This concludes my
statement.
6