    [Senate Hearing 108-375]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 108-375

     SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION GRAND COULEE DAM
                     EQUITABLE COMPENSATION SETTLEMENT ACT

    =======================================================================

                                    HEARING

                                   BEFORE THE

                          COMMITTEE ON INDIAN AFFAIRS
                              UNITED STATES SENATE

                          ONE HUNDRED EIGHTH CONGRESS

                                 FIRST SESSION

                                       ON

                                    S. 1438

     TO PROVIDE FOR EQUITABLE COMPENSATION OF THE SPOKANE TRIBE OF INDIANS
        OF THE SPOKANE RESERVATION IN SETTLEMENT OF CLAIMS OF THE TRIBE
         CONCERNING THE CONTRIBUTION OF THE TRIBE TO THE PRODUCTION OF
                       HYDROPOWER BY THE GRAND COULEE DAM

                                   __________

                                OCTOBER 2, 2003
                                 WASHINGTON, DC

    89-744              U.S. GOVERNMENT PRINTING OFFICE
                                WASHINGTON : 2003
    ____________________________________________________________________________
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                          COMMITTEE ON INDIAN AFFAIRS

                  BEN NIGHTHORSE CAMPBELL, Colorado, Chairman

                    DANIEL K. INOUYE, Hawaii, Vice Chairman

    JOHN McCAIN, Arizona,                KENT CONRAD, North Dakota
    PETE V. DOMENICI, New Mexico         HARRY REID, Nevada
    CRAIG THOMAS, Wyoming                DANIEL K. AKAKA, Hawaii
    ORRIN G. HATCH, Utah                 BYRON L. DORGAN, North Dakota
    JAMES M. INHOFE, Oklahoma            TIM JOHNSON, South Dakota
    GORDON SMITH, Oregon                 MARIA CANTWELL, Washington
    LISA MURKOWSKI, Alaska

             Paul Moorehead, Majority Staff Director/Chief Counsel

            Patricia M. Zell, Minority Staff Director/Chief Counsel

                                      (ii)

                                C O N T E N T S

                                  ----------
                                                                       Page
    S. 1438, text of.................................................     3
    Statements:
        Cantwell, Maria, U.S. Senator from Washington................    16
        Funke, Howard, Funke and Work Law Offices, Coeur D'Alene, ID.    19
        Inouye, Hon. Daniel K., U.S. Senator from Hawaii, vice
          chairman, Committee on Indian Affairs......................     1
        Murray, Patty, U.S. Senator from Washington..................    17
        Pace, Charles E., president and CEO, Regional Services,
          Challis, ID................................................    19
        Seyler, Warren, chairman, Spokane Tribal Business Council....    19
    Prepared Statements:
        Cantwell, Maria, U.S. Senator from Washington................    29
        Funke, Howard................................................    33
        Hickok, Steven G., deputy administrator, Bonneville Power
          Administration.............................................    36
        Murray, Patty, U.S. Senator from Washington..................    31
        Pace, Charles E..............................................    45
        Robinson, Robert A., managing director, Natural Resources and
          Environment................................................    60
        Seyler, Warren (with attachment).............................    52

     SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION GRAND COULEE DAM
                     EQUITABLE COMPENSATION SETTLEMENT ACT

                                  ----------

                           THURSDAY, OCTOBER 2, 2003

                                           U.S. Senate,
                                   Committee on Indian Affairs,
                                                        Washington, DC.
        The committee met, pursuant to notice, at 2:08 p.m. in room
    485, Russell Senate Building, Hon. Daniel K. Inouye (vice
    chairman of the committee) presiding.
        Present: Senators Inouye and Cantwell.

     STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII,
               VICE CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS

        Senator Inouye. The Committee on Indian Affairs meets this
    afternoon to receive testimony on S. 1438, a bill to provide
    for the equitable compensation of the Spokane Tribe in
    settlement of the tribe's claims relating to the use of tribal
    lands for the production of hydropower.
        Seventy years ago, the United States began construction of
    the Grand Coulee Dam in Washington State. In 1940, lands
    belonging to the Confederated Tribes of the Colville
    Reservation and the Spokane Tribe were acquired by the United
    States for its hydropower project, and some minimal
    compensation was authorized to be paid to the tribes.
        Those tribal lands were directly affected by the
    construction and operation of the Grand Coulee Dam. Some lands
    were inundated with water; others were affected by the
    production of hydropower, and salmon fisheries on which the
    tribes were dependent both for subsistence and economically
    were destroyed.
        Fifteen years ago, the Congress enacted a settlement for
    the Confederated Tribes of the Colville Reservation based upon
    the tribe's legal claims which had been pending for 43 years
    before the Indian Claims Commission, the United States Court of
    Federal Claims, and finally the U.S. Court of Appeals for the
    Federal Circuit.
        At that time, recognizing that the Spokane Tribe's legal
    claims for the loss of tribal lands and resources were barred
    by the applicable statute of limitations, several senators
    joined me in calling upon the Departments of the Interior and
    Justice to work with the Spokane Tribe to develop a settlement
    of the tribe's equitable claims.
        That process did not come to fruition, but today I am
    pleased to report that the good and worthy Senators from the
    State of Washington have not forgotten the history of the Grand
    Coulee Dam, and the losses suffered by the Spokane Tribe. We
    are here today to receive testimony on the bill that they have
    introduced to provide equitable compensation to the Spokane
    Tribe for its losses.
        [Text of S. 1438 follows:]

        Senator Inouye. In order to provide a sharpened focus on
    the testimony of the Spokane Tribe, the committee has called
    upon the Bonneville Power Administration, the General
    Accounting Office [GAO] and the Department of the Interior to
    submit written testimony for the record of the hearing today.
        Now it is my pleasure to call upon the authors of the
    measure, my distinguished colleagues from the State of
    Washington, Senator Patty Murray and Senator Maria Cantwell.
        Senator Cantwell.

     STATEMENT OF HON. MARIA CANTWELL, U.S. SENATOR FROM WASHINGTON

        Senator Cantwell. Thank you, Mr. Chairman.
        I greatly appreciate your willingness to hold this
    important hearing and for your cosponsorship of this
    legislation. You have been a consistent champion for
    establishing a fair and equitable settlement process and to
    compensate sovereign Indian nations harmed by actions of the
    U.S. Government and those that we represent. For this and the
    other efforts on Washington State tribes, Senator Murray and I
    greatly thank you.
        I would also like to thank my friend and colleague, Senator
    Murray, for her important efforts on this legislation. As you
    all are aware, Senator Murray was instrumental in providing the
    Colville's with a fair and equitable settlement in 1994 for
    nearly identical impact to their reservation. I look forward to
    working with her as we move through this settlement agreement.
        And of course, I would like to thank Warren Seyler and the
    other Spokanes and their representatives for coming today. I
    know you have been fighting for just compensation for a long
    period of time, and the damages to your reservation way of life
    that have been that way since the construction of the Grand
    Coulee Dam in 1933.
        I recognize that this has been a long and extremely
    frustrating process. I hope that this hearing will provide the
    necessary information for us to move forward and once and for
    all resolve the Spokane claims against the U.S. Government.
        I would also like to take this opportunity to reiterate my
    condolences to the tribe regarding the death of Bruce Wynne.
    Bruce obviously was very dedicated to this community and was
    invaluable. His loss will not just be felt in Washington State,
    but across the country. My thoughts and prayers are with his
    family. I know that Bruce spent a great deal of time trying to
    solve this issue, so it is my hope that we can give some quick
    action to this and the longstanding grievances that have been
    here, so that we can move forward and make that a legacy to
    Bruce's leadership.
        Mr. Chairman, my goal for this hearing is to establish for
    the record the harm done to the Spokane Tribe, and the damage
    that was done following the construction of the Grand Coulee
    Dam and the legal and moral obligation that I believe that we
    have as a Federal Government to compensate the Spokane's for
    those damages.
        For more than one-half century, as you mentioned, the Grand
    Coulee Dam project has been an extraordinary contribution to
    our Nation. It helped pull the economy out of the Great
    Depression. It provided the electricity that produced the
    aluminum industry required for airplanes and weapons, and it
    ensured our national security. The project continues to provide
    enormous revenues for the United States and is a key component
    of our agricultural economy in Eastern Washington.
        However, these benefits have come at direct cost and
    expense to tribal property that have been inundated when the
    United States built the Grand Coulee Dam. Before dam
    construction, the free-flowing Columbia River supported a very
    robust and plentiful salmon run and provided virtually all of
    the subsistence needed by the Spokane Tribe. After that
    construction, the Columbia and Spokane River tributary flooded
    tribal communities, schools, roads, and causing problems with
    stagnant water and still erosion problems on the reservation
    today.
        The legislation that Senators Inouye, Murray, and I have
    introduced, which was done in July, is similar to the
    legislation that Senator Murray did in 1994, a bill that
    codified the settlement and provided perpetual payments to the
    neighboring Confederated Colville Tribes. To date, the
    Colvilles have received over $180 million in payments for their
    land inundated by Lake Roosevelt.
        This bill provides the framework for the success that was
    the same for that settlement, providing the Spokanes with
    compensation that is directly proportional to the settlement
    afforded the Colville Tribes.
        Specifically, the Spokane Tribe would receive 39.4 percent
    of the past and future compensation awarded the Colville Tribes
    pursuant to the 1994 legislation. This percentage is based on
    the proportion of tribal lands impacted after the Federal
    Government built the Grand Coulee project.
        S. 1438 also outlines the facts of the Spokane claims and
    describes how the tribe can use that compensation that is
    forthcoming.
        Mr. Chairman, I will enter the rest of my statement for the
    record, but I just want to say that I very much appreciate the
    fact that you have given time for this hearing on this
    important issue. When Federal actions take physical and
    economic impacts on our tribes, we need to respond. So I
    applaud the leadership that you and Senator Murray and others
    are using on this legislation.
        Thank you.
        [Prepared statement of Senator Cantwell appears in
    appendix.]
        Senator Inouye. I thank you very much. Your full statement
    will be made part of the record.
        Now it is my great honor to recognize the distinguished
    senior Senator of the State of Washington, the Honorable Patty
    Murray.

      STATEMENT OF HON. PATTY MURRAY, U.S. SENATOR FROM WASHINGTON

        Senator Murray. Good afternoon, Mr. Chairman. It is a
    delight to call you Mr. Chairman. Thank you very much for
    having this very important hearing today.
        And Senator Cantwell, thank you for your leadership on this
    and the many tribal issues that affect our State, our region
    and, really, our Nation. I look forward to working with you on
    this. I appreciate all your work on this.
        I am really proud to be here today to introduce to the
    committee the distinguished chairman of the Spokane Tribal
    Business Council, Chairman Warren Seyler. He is a leading
    figure in Washington's tribal communities and I know his
    testimony will be of great value to this committee.
        Before I introduce him, I would like to share a few ideas
    about S. 1438. Earlier this year, I joined with Senators
    Cantwell and Inouye in offering legislation that would finally
    compensate the Spokane Tribe for its contribution to the
    hydropower that is generated by the Grand Coulee Dam. You will
    recall I introduced similar legislation in the 106th and 107th
    Congresses. The Grand Coulee Dam is the largest electricity
    producer in the United States. It provides electricity and
    water to the Columbia Basin Project, which is one of the
    world's largest irrigation projects.
        For more than 60 years, the Grand Coulee has been the
    backbone of the Northwest Federal power grid and our
    agricultural economy. But for the Native peoples of this
    region, construction of the Grand Coulee Dam came at a very
    high price. For the Spokane Tribe in particular, it brought an
    end to a way of life. The Spokane River was once a free-
    flowing waterway that supported plentiful salmon runs. It
    became a barren stretch of slack water that now erodes the
    southern lands of the reservation. In fact, the tribe's
    reservation has been flooded on two sides.
        Mr. Chairman, S. 1438 is not the first piece of legislation
    seeking to compensate a tribe for losses brought by the
    construction of Grand Coulee Dam. In 1994, Congress passed
    similar settlement legislation to compensate the neighboring
    Confederated Colville Tribes. Since the 1970's, the Congress
    and Federal agencies have indicated that both the Colville and
    Spokane Tribes should be compensated for their losses. This
    legislation will provide a long overdue settlement to the
    Spokane Tribe.
        Mr. Chairman, it is now my pleasure to introduce Chairman
    Seyler to the committee. He was first elected to the Spokane
    Tribal Business Council in 1990. Chairman Seyler also serves on
    the board of the Upper Columbia United Tribes, which is
    involved in fish and management issues along the Columbia
    River. He is also active in management issues at Lake
    Roosevelt, a reservoir created when the Grand Coulee Dam was
    constructed.
        Finally, Mr. Chairman, I would like to join with Senator
    Cantwell in offering my condolences to the tribe. Last week
    they lost, and indeed all of Indian Country, lost a great deal
    with the passing of former Chairman Bruce Wynne. He led with
    his heart and had a remarkable ability to bridge generations.
    His leadership, knowledge of history and warm personality will
    be missed. I must say his legacy continues in leaders like
    Chairman Seyler, and I am proud to introduce him to the
    committee today.
        Thank you very much.
        [Prepared statement of Senator Murray appears in appendix.]
        Senator Inouye. Chairman Seyler, with that introduction,
    you can't lose. [Laughter.]
        Before you proceed, just for the record, you are
    accompanied by Howard Funke of Funke and Work Law Offices,
    Coeur d'Alene, ID; and Charles E. Pace, president and CEO,
    Regional Services, Challis, ID.
        Would you gentlemen like to join Chairman Seyler at the
    table?

     STATEMENT OF WARREN SEYLER, CHAIRMAN, SPOKANE TRIBAL BUSINESS
     COUNCIL, ACCOMPANIED BY HOWARD FUNKE, ESQUIRE, FUNKE AND WORK
    LAW OFFICES, COEUR D'ALENE, ID; AND CHARLES E. PACE, PRESIDENT
                AND CEO, REGIONAL SERVICES, CHALLIS, ID

        Mr. Seyler. Thank you, Mr. Chairman and members of the
    Committee on Indian Affairs for the opportunity to testify on
    S. 1438. As stated, accompanying me is Howard Funke, our
    attorney, and Charles Pace, our economist. Also joining us
    today in the audience is Vice Chairman Greg Abrahamson, tribal
    council member, Dave Wynekoop, Jr., and tribal attorney, Margo
    Hill.
        I am here today on behalf of the Spokane Tribe to ask for
    your help as representatives of the United States of America. I
    ask that you act on behalf of the United States to finally
    treat the Spokane Tribe fairly and honorably for the injury to
    our tribe and reservation caused by the Grand Coulee project.
        My testimony today summarizes the critical need for this
    important legislation. We are also providing briefing books for
    the record and a video. I ask that they be put in the record
    also.
        The Spokane Tribe is an honorable tribe. We are a strong
    tribe, a trusting tribe. We are good for our word and strong in
    our commitment to this Nation. Grand Coulee's waters flooded
    the lands of two sister Indian reservations that held great
    economic, cultural and spiritual significance. Ours is one of
    those reservations.
        Let me just state one issue that I just mentioned, being
    sister Indian reservations. That is exactly what we are even
    today. Today, you can find family members, one enrolled on the
    Colville Reservation as a brother, and on the Spokane
    Reservation a sister may be enrolled. Aunts and uncles, one may
    be enrolled on the Spokane, another on the Colville. That is
    just historic. It has always been that way, even when we had
    free use of the river.
        Our life, culture, economy and religion centered around the
    river. We were river people. We were fishing people. We
    depended heavily on the rivers and historic salmon runs that
    were brought to us. We were known by our neighboring tribes as
    the salmon eaters. The Spokane River, which was named after our
    people, was and is the center of our universe. We call it the
    Path of Life.
        President Rutherford B. Hayes in 1881 recognized the
    importance and significance of these rivers by expressly
    including the entire adjacent river beds of the Spokane and
    Columbia Rivers within our reservation. But the Spokane and
    Columbia Rivers are now beneath Grand Coulee's waters.
        The other reservation flooded by Grand Coulee is that of
    the Colville. The waters that rose behind Grand Coulee brought
    similar fates to our reservations. Burial sites, village sites,
    spiritual sites, all lost to the rising waters, lost so this
    country could benefit. The river banks which provided us plants
    for foods and medicines were forever flooded. Homes, gardens,
    farms, ranches our people had worked hard to build on our
    reservation are now under water. The free-flowing Columbia
    River and our Path of Life is now under the water behind Grand
    Coulee Dam.
        The dam also destroyed our salmon runs, which from time
    immemorial had given us life and identity. While the Colville
    lost most of their runs, salmon were still able to reach the
    Colville Reservation. But upstream to our reservation, the
    salmon was entirely lost. For decades, the Colville and Spokane
    Tribes shared similar histories and dialogue in connection with
    the Grand Coulee issue and were subjected to identical
    misconduct by the U.S. Government.
        When the project first began, it was to be a State project
    governed by the Federal Power Act, which required annual
    compensation to impacted Indian tribes. Later, after the
    project was Federalized and no longer fell under the Federal
    Power Act, Government officials promised and acknowledged that
    the tribes still should be compensated.
        When the construction on Grand Coulee Dam began, the
    Commissioner of Indian Affairs recommended in writing that both
    tribes receive annual payments for the dam's operations. The
    Secretary of the Interior and other high-level Federal official
    knew the tribe should receive compensation, but this never
    happened.
        In 1941, the tribes renewed their efforts, taking the
    extraordinary step of sending a joint delegation cross country
    by train to meet in Washington, DC. This meeting was with the
    Commissioner of Indian Affairs, the issue, Grand Coulee Dam.
    The meeting was held on December 10, 3 days after Pearl Harbor
    was bombed. The Commissioner and his staff explained that the
    war had become the Nation's priority and that Congress could
    not be expected at such times to address the tribes' needs, but
    they promised to do so. They promised they would help. When our
    leaders returned home, they trusted that things would be made
    right once the war was over, and this is the same war that we
    sent our young men and women to help fight.
        Understand, for the Spokane Tribe these were times our
    people were completely dependent on the Bureau of Indian
    Affairs [BIA]. We were allowed to do nothing without the BIA or
    their approval. In words of one of the spiritual people back in
    our tribe, in many of his comments, unfortunately he has passed
    away recently, he would state that back then, BIA was God. We
    could do nothing without asking their permission. We could do
    nothing without them leading the way.
        We were not experienced in the ways of American law,
    politics and business. At that time, we were among the most
    isolated tribes in the Nation. We were a ward of the Department
    of Interior and the BIA. We were beginning to farm and ranch,
    but our subsistence ways depended heavily on the river's
    salmon, and this was most prominent.
        At that time, we had no constitutionally formed government.
    Even though the BIA's nearest agency was 100 miles away on the
    Colville Reservation, we relied on the BIA officials for
    managing details as simple as taking minutes at tribal
    meetings. And put forth at that time, many of our elders still
    did not speak English. They spoke in our Salish tongue.
        So when the Commissioner of Indian Affairs told our people
    he would do all he could to help, it carried great weight back
    home. Most of the communication at this time was done in letter
    form, so it had to be interpreted or read to our people.
        Soon after the war's end in 1946, Congress enacted the
    Indian Claims Commission Act. The ICCA allowed Indian tribes to
    bring historic legal claims against the U.S. Government.
    Several obstacles, unique to our tribe, made the task of filing
    the ICCA claims unusually difficult. First, although the Act
    required the Commission and the BIA to notify all tribes of the
    claim that should be filed, we received no such notice. This
    was due to the very remoteness of our tribe.
        We learned of the ICCA only from the neighboring tribe. I
    believe it was the Colville or the Kalispel and Coeur d'Alene
    Tribes, by happenstance. This was only months before the 1951
    deadline. Second, our leadership acted to retain a lawyer once
    they learned of the ICCA, but the Commissioner of Indian
    Affairs withheld his approval several months, costing our tribe
    much critical time. Also, our constitutional government was
    only finally formed 60 days prior to the 1951 deadline.
        Eventually, the Spokanes filed the standard ICCA claim,
    much like the claim filed by the Colville Tribe, but no mention
    of Grand Coulee was ever made. It was understood to apply only
    to historic claims, rather than claims for wrongful conduct
    that was ongoing.
        In 1972, the Secretary of the Interior established a task
    force to address the Spokane and Colville Tribes, but
    unfortunately the only thing that came out of this task force
    was legal defenses. We trusted that the right thing would be
    done when the task force report came out. It was not. We
    trusted that the Congress would help by addressing our claims
    side by side with the Colvilles. This has not happened yet.
        Grand Coulee's impacts on the Spokane and Colville Tribes
    is virtually identical, as were the tribes' histories of
    dealing with the United States throughout all of the years.
    While the tribes have survived decades of lost hope and broken
    promises, we continue to fight for this today.
        There is a simple historical fact that separates the two
    tribes. It is the fact that led ultimately to the Colville
    settlement of its claim. The settlement under the Colvilles
    received $53 million in back damages and annual payments in
    perpetuity that since 1994 have been $15 million to $20 million
    each year. I think it would be unprecedented for one tribe to
    receive such compensation from the United States on the exact
    identical issue that a sister tribe would receive nothing.
        In the mid-1960's, the Spokane Tribe, a trusting tribe that
    had always come to the aid of the U.S. Government whenever
    asked, entered into a cooperative relationship with the United
    States, and in 1967 the tribe settled its Indian Claims
    Commission case. The Colville's did not. Instead, the
    Colville's persisted with their legal battles through the
    1960's and beyond the days of the task force.
        The Colville's had not raised the Grand Coulee claim either
    in their original ICCA case any better than the Spokanes, but
    their decades-long resistance to settlement enabled them to
    benefit from a 1970's Indian Claims Commission case. In 1975,
    the Commission ruled for the first time ever that it had
    jurisdiction over cases where the wrong continued beyond the
    ICCA's 1951 statutory deadline.
        From this point forward, it seems our trusting ways have
    been working against us, because the Colvilles, armed with that
    new decision, in 1976 had sought and obtained permission to
    amend their claim to include for the first time the Grand
    Coulee. Our tribe, having come to terms with the United States
    in the 1960's, had no case to amend.
        In 1978, the Indian Claims Commission ruled that the United
    States' conduct in building Grand Coulee Dam was unfair and
    dishonorable. Therefore, they awarded the Colville Tribes over
    $3 million for fisheries. In 1992, the Federal Circuit Court of
    Appeals ruled that the Colvilles' claim for power values based
    on the same standard was not barred. With that leverage, the
    Colville's secured a settlement which in 1994 the Congress
    approved Public Law 103-436.
        Nine years ago, in the context of the Colville settlement,
    I came here and testified to you, Congress, on my tribe's
    behalf. I asked Congress to include our settlement with the
    Colville's or to waive the statute of limitations so we may
    also present our case. But rather than providing our requested
    relief, Congress again directed the United States to negotiate
    a fair settlement. Unfortunately, again Congress' directive
    never happened.
        Since then, I have participated in virtually all
    discussions held between the tribe and the three separate BPA
    administrators that had represented the United States. During
    the past nine years, we have been forced to confront countless
    tactics that run directly counter to Congress' direction and
    intent, that our Grand Coulee claim be negotiated in good faith
    and on its merits.
        For the first several years, we met nothing but delay and
    assertion of technical legal defenses. Members of Congress who
    had been made aware of these failings admonished the United
    States, stating in clear terms that the negotiation must be on
    the merits of our claim without consideration of legal
    defenses, and that definition negotiations must involve
    flexibility.
        After 9 years of fruitless negotiations, 9 years of broken
    promises and delays, I am back here today requesting that
    justice not go unanswered; that the U.S. Government recognize
    our contributions and sacrifices to this great Nation. To
    compensate one of two tribes devastated by Grand Coulee and not
    the other has only compounded the injustice to our people and
    prolonged this conflict. We believe it would be unprecedented
    for Congress to only provide relief to one tribe and not the
    other, when both are so similarly impacted.
        We also make two quotes: Acting Associate Solicitor
    Aschenbrenner, quote, ``The government overlooked the
    prohibition against a guardian seizing property of its own
    ward, and then profiting from the seizure.'' Also a quote from
    Chief Justice Blackmun, ``Great nations like great men should
    honor their word.''
        In closing, Mr. Chairman and honorable members of the
    committee, I ask that you listen to your hearts. We have no
    place to turn, we have no place to go. We ask for our day of
    justice. We have waited for this day for over 60 years. One
    last comment from the words of the Spokane Tribe and in our
    language, that goes [remarks in native tongue], listen to your
    hearts what is on your heart.
        Thank you.
        [Prepared statement of Mr. Seyler appears in appendix.]
        Senator Inouye. Thank you very much.
        I have been advised that Mr. Funke would like to say a few
    words.
        Mr. Funke. Thank you Mr. Chairman.
        Just a few words. Just to give you a sense of what was
    going on in the 1930's on the Spokane Indian Reservation before
    Grand Coulee was visited on these people. They were one of the
    most isolated tribes in America. They were sitting there on the
    shores of the Columbia River and the Spokane River. Their
    reservation is bordered by and includes within the description
    of the reservation the Columbia River and the Spokane River. It
    is very unusual for the United States to do that. They did that
    for the specific reason that these people were so tied to those
    rivers that they included them within the boundary of the
    Spokane Reservation. Very unusual.
        Sitting there very isolated, intact Indian communities,
    virtually untouched, and in come 7,800 non-Indian workers
    plopped right in the middle of that whole operation to build
    Grand Coulee. As the United States is moving to build Grand
    Coulee as a public works project, and to begin production of
    energy, they made promises to the tribe about how they would
    protect their interests. They made promises to the tribe that
    they would get a share of the power revenues. And then they
    went ahead and built Grand Coulee and they have not paid the
    tribe anything. They started flooding their lands and people
    were being driven out of their homes.
        As that was occurring their cemeteries were being buried,
    their cultural sites and the best land on that reservation was
    being inundated, then Congress saw fit to direct the Secretary
    to designate a taking of those lands. It was not a bargain
    deal. It was not a sale. It was a taking of Indian lands as
    directed by Congress. Go in and designate what you want and
    what you need, and then you, Secretary, determine what that is
    worth. What he thought it was worth, thousands of acres of
    land, cutting off their fish runs, disrupting their culture,
    their economy, their health system, their social systems, their
    entire life-way, what he thought that was worth was $4,700.
        Well, then they turned around and started reaping billions
    annually from the value of Grand Coulee. We are not against
    people and so-called progress and the generation of value from
    hydropower. But this Nation has benefited tremendously from the
    generation of hydropower at Grand Coulee. It is called the
    ``economic engine'' of the Northwest.
        I could spend hours telling you the value of Grand Coulee.
    It is the keystone in the Federal Columbia River Power System.
    It regulates water supply all the way from Canada into the
    United States, all the way to the southern end. It regulates
    the Transmission Inter-tie. It generates billions of kilowatts.
    The only group that I can identify that really does not share
    in the value of the generation of this power is the people that
    this land was stolen from to build it. They are the only people
    that do not benefit from it. Everybody else reaps millions,
    billions. They got $4,700. That is atrocious.
        Larry Aschenbrenner says that was an act of confiscation by
    the guardian from land that belonged to the ward. And then the
    United States turned around and converted it to their own use.
    That is what the U.S. Associate Solicitor for Indian Affairs
    had to say about that activity and about that transfer.
        A lot is made about the fact, Senator, that the tribe did
    not file Grand Coulee claims on time back in 1951; that the
    Colvilles filed in 1951, why didn't the Spokanes? If they could
    do it, why didn't you do it? Well, the fact of the matter and
    if the truth were really revealed, neither tribe filed in 1951
    to beat that statute of limitations. The Colvilles did not and
    neither did the Spokane. Neither one of them did because they
    were in discussions with the United States. They were being
    represented by the United States saying their interests would
    be protected. The United States was telling them they would
    provide compensation and protect their interests. They were in
    negotiation with the United States for management of the Grand
    Coulee Reservoir. Nothing was being said about filing claims
    through this entire period.
        When the United States started asserting legal defenses in
    the 1960's and 1970's, well, in 1967 the Spokane Tribe settled
    their claims case, a claims case based on land. It did not have
    anything to do with hydropower. At that point in the late
    1960's and 1970's, neither tribe had filed. Then the United
    States started for the first time to assert defenses. Instead
    of continued negotiating, they began to both negotiate and
    start to erect defenses against the tribes.
        In 1975, the Navajo case was decided, which allowed claims
    that had not been filed in 1951 by the statute, you could take
    those claims and if you could relate them back to a wrong
    occurring in 1951, you could add those to claims you did file
    in 1951. So the Colvilles had not yet settled their case. They
    went into the court and asked the court to amend their petition
    to add Grand Coulee claims in 1976, not in 1951, but in 1976.
    That is the legal difference between this tribe and the
    Colvilles. They had an active case that they could amend in
    1976 to relate back to 1951 or they would have been out of luck
    probably, too.
        So that is the only difference legally between these two
    tribes. So one is compensated; the other is told, you did not
    put that postage stamp on that envelope back in 1951, so you
    are out of luck. We now have a defense against you called
    navigational servitude. It does not have anything to do with
    fairness. It does not have anything to do with honor. All it
    has to do with is, navigational servitude, a defense. Fairness
    and honor are not on the table where you are concerned because
    you did not make that filing, or you did not have a case to
    amend.
        So just to illustrate the legal difference between the two
    and why one is compensated today and Congress has settled with
    one tribe, and the United States has not settled with the
    Spokane.
        Thank you.
        Senator Inouye. Thank you very much, Mr. Funke.
        Dr. Pace, would you care to add something to this?
        Mr. Pace. Thank you, Mr. Chairman and members of the
    committee. I will be very brief.
        In terms of the benefits that have been derived, Senator
    Cantwell mentioned the contribution in World War II. That was
    the aircraft. The electricity that was produced at Grand Coulee
    was used to produce the aircraft that turned the tide in the
    Pacific. Another thing that the project contributed at that
    time was readily available power to build the atomic bomb at
    Hanford, so there was a national security contribution there.
        I don't know if we have mentioned the Columbia Basin
    Project. I have done some estimation. I think the fact that a
    full water supply is provided for 500,000 acres has caused an
    increase in the valuation of land on the order of $2.5 billion.
    There are another 500,000 acres that potentially could have a
    full water supply. So there have been significant benefits to
    Eastern Washington.
        The support the project provides for the electric system
    serving the Western United States is unparalleled by any other
    asset. There simply is no substitute for Grand Coulee. If Grand
    Coulee was not available, the system operators would have far
    less flexibility. The system would be far less reliable, much
    less efficient, and be much more costly. So those are very
    significant national, regional and extra-regional benefits that
    are conferred by this project.
        At the same time, I have worked for the Spokane Tribe on
    their TANF program. I can tell you that the Spokane tribal
    government is essentially on life support. They have slashed
    millions of dollars out of their budgets between fiscal year
    1999 and fiscal year 2002. Over $1.3 million has come out of
    those budgets. That has impacted their ability to deliver
    services to their tribal membership. It has impacted their
    ability to perform a number of other governmental functions.
    Their most recent round of budget cuts, looking forward to
    fiscal year 2004, have again devastated the tribe, with another
    $1.3 million coming out of their general fund just to balance
    their budget.
        Their health care facility operates on priority one status.
    You cannot even get service unless you are essentially dying or
    about to die. That is the state of affairs there.
        So there are dramatic contributions that Chairman Seyler
    and the people that have gone before him have made, and that
    the people who come after him will make from the Spokane Tribe.
    They have not shared in the substantial benefits of this
    project.
        Thank you.
        Senator Inouye. I thank you very much, Dr. Pace.
        Senator Cantwell.
        Senator Cantwell. Thank you, Mr. Chairman.
        I wondered if I could, Chairman Seyler, go back over a few
    things, because I think it is important for people to
    understand the damage that actually has been done in the area.
    While we are talking about the Colville Federation and the
    restitution that was given to them, sometimes we get lost in
    all the numbers. Could you provide the committee some detail
    about the tribal assets that have been inundated because of the
    rising river?
        Mr. Seyler. The Spokane Tribe, being historically living
    along the river, only naturally started developing through the
    years those farms, the orchards, those families as they built
    their homes, used the cemeteries that historically lay our
    ancestors were all covered over. Every year, that water as it
    has fluctuated for the Nation's use opens those graves up,
    opens up those village sites, opens up the cultural and
    spiritual sites. Within the records, you will see that there
    were other hydropower sites that could have been built
    benefiting the Spokane Tribe. Those have been covered over.
    That is probably some of the most.
        Senator Cantwell. Was there any attempt to relocate the
    graves during the construction of the dam?
        Mr. Seyler. More so for the Colville Tribe because they had
    more notice that it was going to happen. A few graves did get
    relocated, just on a last minute, maybe 1 week before they were
    covered over. But every year, we have people down on the boats
    walking the shores, trying to protect those graves. That water
    fluctuates on most years 90 feet. If you take 90 feet in a
    valley, sometimes you have a 1-mile long beach, for 18 miles,
    sometimes narrower, but sometimes 1 mile of beach. The Spokane
    River is about 15 miles like that, so it is a constant looking
    for those graves, because we do not know where they are at,
    because historically we have been there for over 10,000 years.
        Senator Cantwell. So compared to the Colvilles, you think
    that maybe what, 90 percent of those graves were not moved?
        Mr. Seyler. They are still there.
        Senator Cantwell. And have been affected and continue to be
    affected.
        Mr. Seyler. As of last month, I can attest that graves, we
    still had to relocate some as we found them coming up open.
        Senator Cantwell. And Chairman Seyler, what about the
    economic loss from salmon as a mainstay for the tribe?
        Mr. Seyler. Both economically and just for life itself,
    economically we cannot fish salmon. We have no place to go get
    salmon if we wanted. The Colvilles do. They can go to Chief
    Joseph and pull those fish out of the river. Other tribes can
    go to where the Klamath Falls used to be, where the other
    fishing sites used to be, and fish for those salmon. We do not
    have that right anymore, unless we buy a State permit. We
    should not have to do that.
        Senator Cantwell. Prior to the construction of the dam,
    though, the mainstay of economic resource for the tribe was
    salmon fishing?
        Mr. Seyler. Centered around salmon. Prior to the
    construction, salmon benefited the tribes not just in
    sustenance, but also it was a trading item. When times were
    tough, we could take the salmon and trade with other tribes.
    The economic value, we never sold the salmon because in our
    teachings, you do not take anything more than you can eat. So
    it is hard to put an economic value as far as sales of the
    salmon because that was not our heritage. We were not allowed
    to take something from the river if it was not for our own
    provision. That is just our cultural way.
        Senator Cantwell. In the 1940 directive by the Secretary of
    the Interior on what is just and equitable compensation, I
    think they came up with some number.
        Mr. Seyler. $4,700.
        Senator Cantwell. $4,700. I don't know if under any
    scenario $4,700 would have been equitable justification. But
    what do you think the number should be as far as payment to the
    tribe as it relates to the impact of the Grand Coulee Dam and
    the Federal Power Act?
        Mr. Seyler. I think fairness would go back to the process
    that was developed, and we know that there was also a tie to
    the Colville legislation through the years. I have had to deal
    with that. We feel that even they were cut short of what they
    deserved. The $39.4 million that has been mentioned over the
    years by the tribe is fair to us, not that it based on the
    Colvilles is probably not enough, but that is something that we
    could move forward with.
        Over the years, we have had negotiations, and following the
    identical discussions that the Colville Tribal Council had with
    the U.S. Government, when they came to a loggerhead, the
    Colville Tribe had a high, I guess BPA or the Government had a
    low figure, and they just cut the baby right in half. That is
    where they come up with their $57 million and their $15.25
    million annually. There was no formula. They had no formula.
    There was a formula created later to work around that number.
    That came directly from their economist. My good friend and
    chairman at that time, Eddie Pomantier, that came from them
    directly and that was the method that was used.
        Senator Cantwell. The damage done by Lake Roosevelt, which
    has been specified as it related to the Colvilles and their
    payments, was similar to the damage done from Lake Roosevelt to
    the Spokanes?
        Mr. Seyler. Identical, if not worse for the Spokanes,
    because of the no-notice. I saw there was a video that was
    done, and I cannot recall even what it was. Actually, it was
    the first camera that came out of California, a video camera
    that was colored. It showed the Colville Tribes taking the time
    to remove those graves, taking the time to relocate their homes
    and their churches and that. Where the Spokanes as the water
    rose, we had to watch ours float down river.
        Senator Cantwell. Thank you, Mr. Chairman.
        Senator Inouye. Thank you very much.
        I gather, Mr. Chairman, that at this moment the
    negotiations between BPA and your tribe are not going on.
        Mr. Seyler. That is correct.
        Senator Inouye. Do you intend to resume these negotiations?
        Mr. Seyler. This morning, both BPA and the Spokane Tribe
    testified over at the House on this issue, and both parties
    were asked that same question. Both parties indicated that they
    would like to go back to the negotiating table. My comment to
    that is that the tribe has been trying to negotiate this for
    the last 60 years and just with one understanding is that
    whoever negotiates for the Federal Government on this is that
    they really understand what the term ``negotiation'' means.
    That is not what we have found in the past, a take-it-or-leave-
    it offer, but both parties show willingness at this time.
        Senator Inouye. On the payment of the compensation, I
    presume part of that will come from the Bonneville Power
    Administration and part of it from the Government.
        Mr. Seyler. Up until this point, it has been looked at just
    from Bonneville. I think just recently they looked at other
    forums. The Spokane tribal members do not care where it comes
    from. They just feel that things need to be fairly and
    honorably addressed. I think there are some real avenues that
    could resolve this issue. Part of that answer, because of who
    is receiving the rewards, Bonneville is part of that; maybe the
    water and land settlement could be used. We have other thoughts
    and ideas, but it is getting those onto the table and really
    looked at carefully.
        Senator Inouye. The bill, as you know, does not establish
    the source of compensation payment. I presume that was done to
    give you the flexibility to negotiate. If this committee can do
    anything to bring this about or to expedite it, we would be
    very happy to help.
        Mr. Seyler. That is very much appreciated.
        Senator Inouye. Do you have further questions?
        Senator Cantwell. Mr. Chairman, if I could, to followup on
    your comment, I believe that there have been many benefits from
    the establishment of the Grand Coulee Dam, and obviously, a
    history here that we have had the opportunity to look back on
    both from the Colvilles and the experience that the Spokanes
    have. So I guess at this point in time I am interested in
    looking at restitution to the Spokanes. If that means looking
    broader at the Treasury as opposed as to the Bonneville Power
    Administration as a source, I am happy to consider a variety of
    options.
        What I think is important for today's hearing is that we
    have had two courses of history here, two entities, sovereign
    nations impacted in similar ways. I am not sure if we actually
    weighed actual damages, we might have the most damage done
    right before us today. And yet, the restitution was not paid.
    So not only do we want to see that restitution, we want to look
    back on Indian country history and say that there was equitable
    access to restitution, equitable results, and not see future
    generations viewing the films of a lost opportunity to preserve
    the heritage and the history of a culture within the State of
    Washington.
        So I very much appreciate your attention to this important
    issue and to Senator Murray being here as well today.
        Senator Inouye. The record of this hearing will be kept
    open for 2 weeks just in case you want to supplement your
    remarks or to add anything.
        Mr. Seyler. Just one last comment. I think it would only be
    appropriate that not only everything be expected out of BPA,
    because this country, the great country of the United States of
    America, has also benefited from what the tribe lost, what we
    gave. We gave everything for this country to survive the war,
    to help it come out of the Depression and many other things.
        Thank you.
        Senator Inouye. I thank all of you very much for this most
    enlightening hearing. I thank Senator Cantwell. I think this
    has been very helpful. You have me very eager to move forward.
        Senator Cantwell. Thank you, Mr. Chairman.
        Senator Inouye. Thank you very much.
        The hearing is adjourned.
        Mr. Seyler. Thank you, Mr. Chairman. Thank you, committee.
        [Whereupon, at 3 p.m. the committee was adjourned, to
    reconvene at the call of the Chair.]

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                                A P P E N D I X

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                  Additional Material Submitted for the Record

    =======================================================================

    Prepared Statement of Hon. Maria Cantwell, U.S. Senator from Washington

        Thank you, Senator Inouye, I greatly appreciate your willingness to
    hold this important hearing and for your cosponsorship of this
    legislation. You have been a consistent champion for establishing fair
    and equitable settlements agreements that compensate sovereign Indian
    nations harmed by actions of the U.S. Government. For this and other
    efforts on behalf of Washington State tribes, I thank you.
        I would also like to thank my friend and colleague Senator Murray
    for her remarks in support of this bill. As you are all aware, Senator
    Murray was instrumental in providing the Confederated Colville Tribe
    with a fair and equitable settlement in 1994 for nearly identical
    impacts to its reservation. I look forward to working with her as we
    move this settlement agreement forward.
        And of course I would like to thank Warren Seyler and the other
    members of the Spokane Tribe and their representatives for coming
    today. I know you have been fighting for just compensation for the
    damages to your Reservation and way of life since construction of the
    Grand Coulee Dam began in 1933. I recognize that it has been an
    extremely frustrating process, and I hope this hearing will provide the
    necessary catalyst to once and for all resolve the Spokanes claim
    against the U.S. Government.
        I would also like to take this opportunity to reiterate my
    condolences to you and the tribe regarding the death of Bruce Wynne.
    Bruce's dedication to his community was legendary, and his loss will be
    felt not just in Washington State, but across the country. My thoughts
    and prayers are with his family and the tribe at this difficult time. I
    know Bruce spent a great deal of time trying to solve this very issue,
    so it is my hope that we can act quickly to settle this long-standing
    grievance which could serve as a legacy to Bruce's leadership.
        Mr. Chairman, my goal for this hearing is to establish for the
    record the harm done to the Spokane Tribe following construction of the
    Grand Coulee Dam, and the obligation the Federal Government has to
    compensate the Spokanes for these damages.
        For more than one-half century, the Grand Coulee Project has made
    an extraordinary contribution to this Nation. It helped pull the
    economy out of the Great Depression. It provided the electricity that
    produced aluminum required for airplanes and weapons that ensured our
    national security. The Project continues to produce enormous revenues
    for the United States, it is a key component of the agricultural
    economy in eastern Washington, and plays a pivotal role in the electric
    systems serving the entire western United States.
        However, these benefits have come at a direct cost to tribal
    property that became inundated when the U.S. Government built the Grand
    Coulee dam. Before dam construction, the free flowing Columbia and
    Spokane Rivers supported robust and plentiful salmon runs and provided
    for virtually all of the subsistence needs of the Spokane Tribe. After
    construction, the Columbia and Spokane rivers flooded tribal
    communities, schools, and roads, and the remaining stagnant water
    continues to erode reservation lands today.
        The legislation that Senators Inouye, Murray, and I introduced in
    July is similar to Senator Murray's 1994 bipartisan bill codified a
    settlement and provided perpetual payments to the neighboring
    Confederated Colville Tribes. To date, the Colville Tribes have
    received over $180 million in payments for their lands inundated by
    Lake Roosevelt.
        This bill builds on the success of that successful settlement by
    providing the Spokane Tribe of Indians' with compensation that is
    directly proportional to the settlement afforded the Colville Tribes.
    Specifically, the Spokane Tribe would receive 39.4 percent of the past
    and future compensation awarded the Colville Tribes pursuant to the
    1994 legislation. This percentage is based on the proportion of tribal
    lands impacted after the Federal Government built the Grand Coulee
    Project. S. 1438 also outlines the facts of the Spokane claim and
    describes how the tribe will use any forthcoming compensation funds.
        Mr. Chairman, if you will indulge me, I would like to read for the
    record the findings forwarded by this legislation:
        From 1927 to 1931, at the direction of Congress, the U.S. Army
    Corps of Engineers investigated the Columbia River and its tributaries
    to determine sites at which power could be produced at low cost.
        The Corps of Engineers identified a number of sites, including the
    site at which the Grand Coulee Dam is located; and recommended that
    power development at those sites be performed by local governmental
    authorities or private utilities under the Federal Power Act.
        Under section 10(e) of that act, a licensee is required to
    compensate an Indian tribe for the use of land under the jurisdiction
    of the Indian tribe.
        In August 1933, the Columbia Basin Commission, an agency of the
    State of Washington, received a preliminary permit from the Federal
    Power Commission for waterpower development at the Grand Coulee site.
        In the mid-1930's, the Federal Government, which is not subject to
    the Federal Power Act, Federalized the Grand Coulee Dam project and
    began construction of the Grand Coulee Dam.
        At the time at which the Grand Coulee Dam project was Federalized,
    the Federal Government recognized that the Spokane Tribe and the
    Confederated Tribes of the Colville Reservation had compensable
    interests in the Grand Coulee Dam project, including compensation for
    the development of hydropower; the extinguishment of a salmon fishery
    on which the Spokane Tribe was almost completely financially dependent;
    and the inundation of land with loss of potential power sites
    previously identified by the Spokane Tribe.
        In the act of June 29, 1940, Congress granted to the United States
    all rights to Spokane Tribe and Colville Indian Reservations lands that
    were required for the Grand Coulee Dam project; and various rights-of-
    way over other land under the jurisdiction of Indian tribes that were
    required in connection with the project. Additional provisions provided
    that compensation for the land and rights-of-way was to be determined
    by the Secretary of the Interior in such amounts as the Secretary
    determined to be just and equitable.
        In response to these provisions, the Secretary of the Interior paid
    to the Spokane Tribe $4,700, and $63,000 to the Confederated Tribes of
    the Colville Reservation.
        In 1994, following 43 years of litigation before the Indian Claims
    Commission, the United States Court of Federal Claims, and the United
    States Court of Appeals for the Federal Circuit, Congress ratified an
    agreement between the Confederated Tribes of the Colville Reservation
    and the United States that provided for damages and annual payments of
    $15,250,000 in perpetuity, adjusted annually, based on revenues from
    the sale of electric power from the Grand Coulee Dam project and
    transmission of that power by the Bonneville Power Administration.
        In legal opinions issued by the Office of the Solicitor of the
    Department of the Interior, a Task Force Study conducted from 1976 to
    1980 ordered by the Committee on Appropriations of the Senate, and
    hearings before Congress at the time at which the Confederated Tribes
    of the Colville Reservation Grand Coulee Dam Settlement Act was
    enacted, it has repeatedly been recognized that the Spokane Tribe
    suffered damages similar to those suffered by, and had a case legally
    comparable to that of, the Confederated Tribes of the Colville
    Reservation; but that the 5-year statute of limitations under the act
    of August 13, 1946 precluded the Spokane Tribe from bringing a civil
    action for damages under that act.
        The inability of the Spokane Tribe to bring a civil action before
    the Indian Claims Commission can be attributed to a combination of
    factors, including the failure of the Bureau of Indian Affairs to
    carryout its advisory responsibilities in accordance with that act; and
    an attempt by the Commissioner of Indian Affairs to impose improper
    requirements on claims attorneys retained by Indian tribes, which
    caused delays in retention of counsel and full investigation of the
    potential claims of the Spokane Tribe.
        As a consequence of construction of the Grand Coulee Dam project,
    the Spokane Tribe has suffered the loss of the salmon fishery on which
    the Spokane Tribe was dependent; identified hydropower sites that the
    Spokane Tribe could have developed; and hydropower revenues that the
    Spokane Tribe would have received under the Federal Power Act had the
    project not been Federalized; and continues to lose hydropower revenues
    that the Federal Government recognized were owed to the Spokane Tribe
    at the time at which the project was constructed.
        More than 39 percent of the land owned by Indian tribes or members
    of Indian tribes that was used for the Grand Coulee Dam project was
    land of the Spokane Tribe.
        Mr. Chairman, the United States has a trust responsibility to
    maintain and protect the integrity of all tribal lands within its
    borders. When Federal actions physically or economically impact harm,
    our nation has a legal responsibility to address and compensate the
    damaged parties. Unfortunately, despite countless efforts, one-half
    century has passed without justice to the Spokane people.
        The time has come for the Federal Government to finally meet its
    fiduciary responsibility for converting the Spokane tribe's resources
    to its own benefit. I believe that the legislation we are proposing
    today will catalyze the completion of a fair and equitable settlement
    and put a closure to these matters. I was pleased to see similar
    bipartisan legislation introduced earlier this year in the U.S. House
    of Representatives and I am glad to see that the House bill also
    received a hearing just this morning.
        Again, thank you Mr. Chairman for holding this hearing and support
    this important legislation. I look forward to working with you, the
    Indian Affairs Committee, our Senate colleagues, and the Spokanes as
    endeavor to develop a satisfactory and permanent settlement with all
    parties involved.
                                     ______

     Prepared Statement of Hon. Patty Murray, U.S. Senator from Washington

        Good morning, Mr. Chairman, and thank you for this opportunity. I'm
    proud to introduce to the committee the distinguished chairman of the
    Spokane Tribal Business Council, Chairman Warren Seyler. He's a leading
    figure in Washington's tribal communities, and I know his testimony
    will be of great value to this committee.
        Before I introduce him, I'd like to share a few ideas about S.
    1438. Earlier this year, I joined with Senators Cantwell and Inouye in
    offering legislation that would finally compensate the Spokane Tribe
    for its contribution to the hydropower that is generated by the Grand
    Coulee Dam.
        Some of you will recall that I introduced similar legislation in
    the 106th and 107th Congresses.
        The Grand Coulee Dam is the largest electricity producer in the
    United States. It provides electricity and water to the Columbia Basin
    Project, which is one of the world's largest irrigation projects. For
    more than 60 years, the Grand Coulee has been the backbone of the
    Northwest's Federal power grid and our agricultural economy.
        But for the Native peoples of this region, construction of the
    Grand Coulee Dam came at a very high price. For the Spokane Tribe in
    particular, it brought an end to a way of life.
        The Spokane River was once a free-flowing waterway that supported
    plentiful salmon runs. It became a barren stretch of slack water that
    now erodes the southern lands of the reservation. In fact, the tribe's
    reservation has been flooded on two sides.
        Mr. Chairman, S. 1438 is not the first piece of legislation seeking
    to compensate a Tribe for losses brought by construction of the Grand
    Coulee Dam. In 1994, Congress passed similar settlement legislation to
    compensate the neighboring Confederated Colville Tribes.
        Since the 1970's, the Congress and Federal agencies have indicated
    that both the Colville and Spokane Tribes should be compensated for
    their losses. This legislation will provide a long overdue settlement
    to the Spokane Tribe.
        Mr. Chairman, it is now my pleasure to introduce Chairman Seyler to
    the committee. First elected to the Spokane Tribal Business Council in
    1990, Chairman Seyler also serves on the board of the Upper Columbia
    United Tribes, which is involved in fish and management issues along
    the Columbia River. He is also active in management issues at Lake
    Roosevelt, a reservoir created when the Grand Coulee Dam was
    constructed.
        Finally, Mr. Chairman, I'd like to offer my condolences to the
    Spokane Tribe. Last week the tribe--and indeed all of Indian country--
    suffered a great loss with the passing of former Chairman Bruce Wynne.
    Bruce led with his heart and had a remarkable ability to bridge
    generations. His leadership, knowledge of history, and warm personality
    will be missed, but his legacy continues in leaders like Chairman
    Seyler.
        Thank you.

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