    [Senate Hearing 108-620]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 108-620

                               TRIBAL PARITY ACT

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

                                    HEARING

                                   BEFORE THE

                          COMMITTEE ON INDIAN AFFAIRS
                              UNITED STATES SENATE

                          ONE HUNDRED EIGHTH CONGRESS

                                 SECOND SESSION

                                       ON

                                    S. 1530

    TO PROVIDE COMPENSATION TO THE LOWER BRULE AND CROW CREEK SIOUX TRIBES
    OF SOUTH DAKOTA FOR DAMAGE TO TRIBAL LAND CAUSED BY PICK-SLOAN PROJECTS
                            ALONG THE MISSOURI RIVER

                                   __________

                                 JUNE 15, 2004
                                 WASHINGTON, DC

                        U.S. GOVERNMENT PRINTING OFFICE
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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. 1530, text of.................................................     3
    Statements:
        Big Eagle, Sr., Duane, chairman, Crow Creek Sioux Tribe......    10
        Daschle, Hon. Tom, U.S. Senator from South Dakota............     6
        Jandreau, Michael, chairman, Lower Brule Sioux Tribe.........    10
        Johnson, Hon. Tim, U.S. Senator from South Dakota............     1
        Lawson, Michael L., senior associate, Morgan, Angel and
          Associates, Public Policy Consultants......................     8
        Mooney, Ross, acting director of Trust Services, BIA,
          Department of the Interior.................................     7
        .............................................................

                                    Appendix

    Prepared statements:
        Big Eagle, Sr., Duane........................................    19
        Jandreau, Michael............................................    21
        Lawson, Michael L. (with attachments)........................    25
        Mooney, Ross.................................................   113
    Additional material submitted for the record:
        Letter from M. Michaels Rounds, Governor, State of South
          Dakota.....................................................   114

                               TRIBAL PARITY ACT

                                  ----------

                             TUESDAY, JUNE 15, 2004

                                           U.S. Senate,
                                   Committee on Indian Affairs,
                                                        Washington, DC.
        The committee met, pursuant to notice, at 11:08 a.m. in
    room 485, Senate Russell Building, Hon. Tim Johnson, (acting
    chairman of the committee), presiding.
        Present: Senator Johnson.

     STATEMENT OF HON. TIM JOHNSON, U.S. SENATOR FROM SOUTH DAKOTA

        Senator Johnson. I will bring the Senate Committee on
    Indian Affairs to order.
        Today, the Committee on Indian Affairs will conduct a
    hearing regarding S. 1530, a bill to provide compensation to
    the Lower Brule and Crow Creek Sioux Tribes of South Dakota for
    damage to tribal land caused by Pick-Sloan projects along the
    Missouri River.
        Before we begin, I want to thank Chairman Campbell and Vice
    Chairman Inouye for permitting this hearing to take place. I
    also want to thank their staffs for their assistance in making
    this happen.
        I want to especially thank Senator Daschle for his
    leadership on Missouri River issues in general. Senator Daschle
    was instrumental in getting the Crow Creek Sioux Tribe and
    Lower Brule Sioux Tribe Infrastructure Development Trust Fund
    Acts passed to begin with. Senator Daschle's leadership on
    Indian issues is a blessing to our tribes throughout South
    Dakota, and truly our tribes have no better friend in
    Washington than my friend and colleague, Senator Tom Daschle.
        I want to welcome our South Dakota witnesses to the
    committee. Chairman Jandreau of the Lower Brule Tribe is truly
    the Dean of our tribal leaders. As a tribal leader for over 30
    years, I rely on his experience and perspective and I
    appreciate the wisdom that he has so kindly provided my office
    throughout the years.
        I also want to extend a big welcome to Chairman Big Eagle
    of the Crow Creek Tribe. This past year has presented Duane
    with many challenges. Chairman Big Eagle has been a tireless
    advocate for the children of Crow Creek, whether it has been
    advocating for better educational facilities or for real
    solutions for the youth suicide crisis on his reservation.
    During these challenging times, I appreciate the leadership
    that Chairman Big Eagle has demonstrated. Thank you for your
    friendship and I am pleased that Diane could join you here for
    the hearing today.
        I want to welcome Norm Thompson and Crystal Kirkie of the
    Crow Creek Tribal Council, as well as Chairman Frazier of the
    Cheyenne River Sioux Tribe to this committee, and thank them
    for being part of this important hearing, and for all that they
    do for their constituents, for their people.
        The Lower Brule Sioux Tribe and the Crow Creek Tribe were
    both impacted by two significant dam projects located on the
    Missouri River, the Fort Randall Dam and the Big Bend Dam. Both
    projects resulted in the inundation of several thousands of
    acres of land on the reservations of these two Indian tribes.
    In 1962, Congress attempted to mitigate the impacts of these
    two projects on the two reservations and the Indian people who
    were living on them by enacting the Big Bend Recovery Act. This
    Act was insufficient. Thus, Congress felt it was necessary to
    enact the Crow Creek Sioux Tribe Infrastructure Development
    Trust Fund Act of 1996, and then one year later, the Lower
    Brule Sioux Tribe Infrastructure Development Trust Fund Act.
        Both these Acts created an infrastructure development trust
    fund for the respective tribes. Last year, Senator Daschle
    sponsored, and I cosponsored, S. 1530. This bill recognizes the
    need to amend the Acts, compensating these tribes at a more
    appropriate level. It is with great pleasure that I recognize
    first Leader Daschle, followed by four witnesses, Ross Mooney,
    Chairman Michael Jandreau, Chairman Duane Big Eagle, and Dr.
    Mike Lawson.
        [Text of S. 1530 folows:]

        Senator Johnson. I know that we are anticipating a vote
    sometime around 12:10 this afternoon so I am going to do what I
    can to expedite the testimony here. Before we go to the first
    panel, I defer to South Dakota's Senior Senator, the Democratic
    Leader, Senator Tom Daschle.
        Welcome, Tom.

     STATEMENT OF HON. THOMAS A. DASCHLE, U.S. SENATOR FROM SOUTH
                                 DAKOTA

        Senator Daschle. Thank you very much, Tim, first for
    chairing this important hearing and for cosponsoring S. 1530.
    Your leadership and commitment to Native Americans and the
    incredible work that you invest on a daily basis on their
    behalf is widely recognized. Once again, your presence here
    this morning is yet the latest illustration of your commitment
    to these issues.
        I, like you, would like to thank Chairman Campbell and Vice
    Chairman Inouye and their remarkable staffs for their
    cooperation and the effort that they have made to allow us to
    have this hearing today. Like you, I also want to welcome our
    chairs, Mike Jandreau and Duane Big Eagle, remarkable chairs
    that have done so much on behalf of their people; and recognize
    as well Chairman Harold Frazier of Cheyenne River who certainly
    knows the consequences of damming the Missouri River as well as
    anybody in our State.
        Because of the interest that you noted in finishing our
    hearing within an hour, I want to be very brief this morning.
    Let me simply say that the consequences of the dams and the
    construction of those dams was devastating for people who lived
    and generated their livelihoods all along the Missouri River.
    Land, homes, local economies, entire communities were actually
    destroyed. Families who lived along the river were forced into
    housing, oftentimes inadequate and poorly constructed. Many
    lost their whole way of life.
        The compensation from the Federal Government could never
    possibly be sufficient to deal with the loss that many of these
    people experienced. We can never erase the damage that has been
    done. But if we have an obligation, we have an obligation to do
    the best we can to rebuild what some have lost in the best way
    we know how. That really is what the Joint Tribal-Federal
    Advisory Committee, or so-called JTAC legislation passed over
    the last few years has been designed to do.
        Chairmen Jandreau and Big Eagle can tell you how they have
    used that compensation for the benefit of their people. But in
    the various JTAC bills, different methodologies for calculating
    compensation have now been used. S. 1530 is an attempt to level
    the playing field for all the affected tribes. Knowing there is
    confusion about what truly constitutes parity, it is a
    complicated equation and I am very pleased that Mike Lawson,
    who is a real expert, can be here to explain how we might
    define it in policy terms, hoping this hearing will move us one
    step forward and closer to achieving a final and most
    importantly the just compensation to all tribes that were so
    devastated by the Pick-Sloan flooding and all of the
    experiences that came as a result of it.
        So Mr. Chairman, I thank you again for your commitment to
    this legislation. I thank our tribal leaders for their
    willingness to come to express again the need for early passage
    of this bill. My hope is that once and for all we can make the
    commitment on behalf of the Federal Government that needs to be
    made in support of the many, many thousands of Native Americans
    who lost so much with the construction of the dams, now some 50
    years ago.
        I thank you for your chairing this hearing this morning,
    and I will turn the dais over to my colleagues from South
    Dakota.
        Senator Johnson. Thank you, Senator Daschle, for your
    extraordinary leadership. I think it is fair to say that
    Congress would not even be to the point of debating this issue
    were it not for your leadership and your guidance on this
    matter.
        I appreciate that you have ongoing obligations on the
    floor, and certainly understand if you felt a need to return to
    the Capitol. Thank you again for your statement this morning,
    and I look forward to working very closely with you and with
    our tribal leaders in South Dakota on this issue.
        Senator Daschle. Thank you, Mr. Chairman.
        Senator Johnson. Our first panel this morning consists of
    Ross Mooney who is acting director of Trust Services, Bureau of
    Indian Affairs [BIA], Department of the Interior here in
    Washington, DC. Welcome, Mr. Mooney. Your entire written
    statement will be received in the record, so if you so choose
    to summarize in an oral fashion, that is very acceptable to the
    Chair.

      STATEMENT OF ROSS MOONEY, ACTING DEPUTY DIRECTOR, OFFICE OF
                 TRUST SERVICES, BIA, DEPARTMENT OF THE
                               INTERIOR.

        Mr. Mooney. Thank you.
        Good morning, Mr. Chairman and members of the committee. I
    am pleased to be here today to present the views of the
    Administration on S. 1530, the Tribal Parity Act.
        If enacted, S. 1530 would increase the compensation to the
    Lower Brule and Crow Creek Tribes for their loss of lands and
    cultural resources as a result of the Pick-Sloan project. The
    intent of this legislation is to put the compensation on par
    with that provided to similarly situated tribes in the region
    that have already received compensation for losses resulting
    from Pick-Sloan.
        Section 2 of S. 1530 references a methodology determined
    appropriate by the General Accounting Office. We are under the
    assumption the sponsors are referring to the GAO reports of May
    1991 concerning the Fort Berthold and Standing Rock Sioux
    Tribes; and January 1998 concerning the Cheyenne River Sioux,
    in which questions were raised about the calculations used to
    determine the amounts of the compensation provided.
        Within appendix 3 of the January 1998 GAO report, there is
    a table which states in the footnotes that dollar amounts shown
    are not comparable. The original payments authorized and the
    additional compensation authorized are not comparable across
    the five reservations or with each other. In 1991, testimony
    provided on behalf of GAO stated the question of whether
    additional compensation should be provided to the tribes is a
    policy decision for the Congress.
        To summarize, the Department is not in a position to
    comment on whether these two tribes were equitably compensated
    that at this time. However, we will be happy to work with the
    sponsor of the bill, this committee, and the tribes to
    determine if, in fact, there was an inequitable calculation
    regarding the original principal amounts.
        This concludes my testimony and I will be happy to respond
    to any questions you may have.
        Thank you.
        [Prepared statement of Mr. Mooney appears in appendix.]
        Senator Johnson. Thank you for your testimony today, Mr.
    Mooney. We on the committee, I think it is fair to say,
    recognize that this is a policy determination that ultimately
    needs to be made. On the other hand, it is important that that
    determination not be made on some random basis and that there
    be a sense of fairness and uniformity to however it is we do
    approach the resolution of the compensation package.
        I would simply say, I would hope that, as you indicated in
    your statement, that you would be willing to work with us in a
    constructive fashion to create an equitable compensation
    package for the Lower Brule and the Crow Creek Tribes.
        Mr. Mooney. Surely.
        Senator Johnson. We very much appreciate that and we
    recognize your expertise in this area, and we will be working
    closely with you, Mr. Mooney. Thank you for your testimony.
        Mr. Mooney. Thank you.
        Senator Johnson. The second panel this morning consists of
    Michael Lawson, Ph.D., senior associate, Morgan, Angel and
    Associates, Public Policy Consultants of Washington, DC; also
    Michael Jandreau, chairman, Lower Brule Sioux Tribe of Lower
    Brule, SD; and Duane Big Eagle, Sr., chairman, Crow Creek Sioux
    Tribe of Fort Thompson, SD.
        Would you please join us at the witness table?
        Mr. Lawson, welcome to the hearing this morning. We will
    begin this panel with your testimony. As I indicated earlier,
    your full statement is received for the record. If you choose
    to summarize in oral fashion, that is acceptable to the
    committee.

    STATEMENT OF MICHAEL L. LAWSON, SENIOR ASSOCIATE, MORGAN, ANGEL
               AND ASSOCIATES, PUBLIC POLICY CONSULTANTS

        Mr. Lawson. Thank you.
        Mr. Chairman and members of the committee, I am Mike
    Lawson, a historian with Morgan, Angel and Associates, a public
    policy consulting firm here in Washington. I am grateful to
    have the opportunity to testify today in regard to S. 1530, the
    Tribal Parity Act. With your permission, Mr. Chairman, I would
    like to provide my written statement for the hearing record,
    along with my report entitled, Parity Compensation for Losses
    from Missouri River Pick-Sloan Dam Projects, and then summarize
    my findings.
        Senator Johnson. Without objection, these documents are
    received into the record.
        [Referenced documents appears in appendix.]
        Mr. Lawson. I was asked to review the proposed Tribal
    Parity Act in light of previous compensation that Congress has
    provided to tribes impacted by the Pick-Sloan Dam projects,
    based on a methodology approved by the General Accounting
    Office. The bottom line, Mr. Chairman, is that both the Lower
    Brule Sioux Tribe and the Crow Creek Sioux Tribe are due
    additional compensation from the United States if parity is to
    be maintained among the Missouri River tribes.
        Please allow me to elaborate. On two prior occasions,
    Congress has provided final settlements to Missouri River
    tribes based on a methodology for determining fair compensation
    recommended by the GAO in 1991. The 102d Congress enacted
    Public Law 575 in 1992 which authorized the establishment of a
    recovery trust fund capitalized at $149.2 million for the Three
    Affiliated Tribes of the Fort Berthold Reservation in North
    Dakota. The 106th Congress approved Public Law 511 in 2000,
    which appropriated $290.7 million for the establishment of a
    recovery trust fund for the Cheyenne River Sioux Tribe of South
    Dakota.
        The method for determining additional compensation approved
    by Congress in these two prior statutes was based on a
    calculation of the difference between the amounts determined by
    the tribes to be warranted at the time of taking, and the
    amounts that Congress eventually provided to them as
    compensation. The compensation recommended by the GAO in 1991
    and reiterated in a 1998-GAO report on the Cheyenne River
    compensation, was to take the difference between the amounts
    requested by the tribes and the amounts appropriated by
    Congress and add to that difference the average annual rate of
    interest that would have accrued over time had the amount of
    difference been invested in AAA-rated corporate bonds. AAA is
    the highest grade of corporate bonds as determined by bond
    rating services such as Moody's Investment Services.
        In accordance with this method of determining fair
    compensation, the Lower Brule Sioux Tribe is entitled to a
    parity payment and additional final compensation of
    $147,082,140, and the Crow Creek Sioux Tribe to $78,417,853,
    for their Pick-Sloan damages. The calculations on which these
    amounts are based are summarized in the table I have provided
    to the committee entitled, Basis for Parity Compensation. I
    would be happy to walk the committee through these numbers,
    either now or at any time in the future.
        The damages suffered by the Lower Brule and Crow Creek
    Sioux Tribes as a result of the Fort Randall and Big Bend Dam
    projects are comparable to the impacts of the Garrison Dam on
    the Three Affiliated Tribes at Fort Berthold and of the Oahe
    Dam on the Cheyenne River Sioux Tribe. This is especially true
    in regard to the loss of natural resources and reservation
    infrastructure, and the forced relocation of tribal members.
        I have concluded based on my review that additional
    compensation for the Lower Brule and Crow Creek Sioux Tribes is
    warranted and required if the United States is to treat all of
    the Missouri tribes equally. I therefore support S. 1530 as
    being a consistent, accurate and a fair method by which the
    Federal Government can provide parity to all of the Missouri
    River Tribes.
        This concludes my remarks. I would be happy to answer any
    questions that you may have.
        [Prepared statement of Mr. Lawson appears in appendix.]
        Senator Johnson. Thank you, Dr. Lawson. I think what we
    will do is conclude the testimony of this panel and then
    reserve questions for after that testimony has been provided.
        The committee also welcomes Marshall Matz to the table as
    well, a highly respected counsel here in Washington on these
    kinds of issues.
        Second on our panel today we will turn to Chairman Jandreau
    for your statement, and again your full statement is received
    for the record.

      STATEMENT OF MICHAEL JANDREAU, CHAIRMAN, LOWER BRULE SIOUX
                                 TRIBE

        Mr. Jandreau. First I would like to thank the committee. I
    would like to thank Senator Daschle and yourself for
    cosponsoring this bill.
        I would like to state that the amount of dollars that are
    to be received have been a long time coming. We are very
    grateful for the initial trust fund that was given to us. We
    have been able to accomplish a tremendous amount on our
    reservation with that. We are grateful also to you and to
    Senator Daschle and to Congress for allowing us that
    opportunity.
        However, in spite of the fact that we have used these
    dollars to impact positively the growth and development of our
    tribe, we still suffer the same issues of poverty, of
    joblessness, not to as large an extent as it was previously,
    but we have a long way to go for the entire development. We
    need to be able to leverage more with private industry to make
    our dollars effectively work for our tribes.
        We need this opportunity and I guess I feel a little ill at
    ease because the last time I was here I had the elders of our
    tribe, many of them, here supporting this actively. We could
    not afford to do it this time. However, they are in support of
    the expansion of this.
        I thank you for the opportunity to come and testify before
    you today.
        [Prepared statement of Mr. Jandreau appears in appendix.]
        Senator Johnson. Thank you, Mr. Chairman, for your
    testimony, and most of all for your longstanding extraordinary
    leadership of the Lower Brule Tribe.
        Last on this panel, Chairman Duane Big Eagle, Sr. Duane,
    welcome to the committee and again, as with the others, your
    full statement is received for the record.

     STATEMENT OF DUANE BIG EAGLE, Sr., CHAIRMAN, CROW CREEK SIOUX
                                 TRIBE

        Mr. Big Eagle. Thank you.
        Mr. Chairman and members of the committee, I am Duane Big
    Eagle, chairman of the Crow Creek Sioux Tribe. I thank you very
    much for the opportunity to testify in support of the Tribal
    Parity Act, S. 1530.
        I would like to thank Senator Daschle for the introduction
    of legislation and you, Senator Johnson, for cosponsoring. The
    legislation before you this morning is of great importance to
    the Crow Creek Sioux Tribe. We support it and urge its
    favorable consideration by the committee and the Congress.
        The Crow Creek Sioux Tribe, like Lower Brule, is a Band of
    the Great Sioux Nation and a signatory of the Fort Laramie
    Treaty of 1851 and the Fort Sully Treaty of 1865. The Missouri
    River established our western boundaries directly across the
    river from Lower Brule. The Big Bend Dam connects our two
    reservations and its construction affected our two reservations
    in a similar manner. It flooded our best bottomlands and
    required us to relocate our town. For us, that is Fort
    Thompson. In 1996, the Congress enacted Public Law 104-223,
    creating the Crow Creek Sioux Tribe Infrastructure Development
    Trust Fund Act. It established a trust fund of $27.5 million
    for the benefit of the tribe. The legislation before you today,
    S. 1530, the Tribal Parity Act, would complement that earlier
    law.
        We are not seeking any advantage over any other tribe, just
    parity. The additional compensation called for in the Tribal
    Parity Act was computed by Dr. Lawson based on methodology used
    by the GAO for our other tribes. The amount included in the
    legislation was not computed by either the Crow Creek Sioux
    Tribe or the Lower Brule Sioux Tribe. It is the amount that Dr.
    Lawson has computed. It would bring us up to the standard used
    by the Congress for the Cheyenne River.
        Candidly, Mr. Chairman, our tribe needs every dollar that
    is fairly owed to us. Our unemployment rate is high. Our health
    problems are a significant barrier to progress, and our
    education and infrastructure systems are in need of great
    improvement. With the interest on the trust fund, we could much
    more effectively meet the challenges we face on our
    reservation, and these challenges cannot be overstated. We are
    a small tribe with great human needs. The Tribal Parity Act is
    vital to the progress and the future of the Crow Creek Sioux
    Tribe.
        Mr. Chairman, we all know painfully the history of the
    reservations in the United States and the history of the Great
    Sioux Nation tribes in particular. We are not near any major
    population centers. We have a casino, as does Lower Brule, that
    will never be a major source of income. For us to stand a
    chance, we must at a minimum be fairly compensated for the land
    that was taken by the Pick-Sloan. The $78 million in the parity
    bill for Crow Creek, if added to our current trust fund, would
    give us a trust fund of $105 million. The interest on this
    trust fund would provide Crow Creek with resources necessary to
    make a significant difference in the lives of our people, in
    the lives of our children and grandchildren. It would, in
    short, give our tribe a second chance.
        Thank you for your consideration. I would be pleased to
    answer any questions.
        [Prepared statement of Mr. Big Eagle appears in appendix.]
        Senator Johnson. Thank you, Mr. Chairman.
        Let me begin some questions for Dr. Lawson. As I understand
    from your testimony, the Cheyenne River and the Three
    Affiliated settlements which were approved by Congress were
    based on the damages claimed by the tribes at the time of
    taking. Is that a correct observation?
        Mr. Lawson. That is correct.
        Senator Johnson. By comparison, the Lower Brule and Crow
    Creek trust funds were not based on the damages claimed by the
    tribes at the time, but were based on a per-acre calculation.
    Is it fair to say that that discrepancy is at the heart of this
    debate and of the parity bill?
        Mr. Lawson. Yes; what this legislation seeks to do is to
    resolve this discrepancy between two different methodologies of
    determining the fair compensation.
        Senator Johnson. As a historian, it would be interesting to
    me and to the committee to go back just a few years. Why wasn't
    the Fort Berthold, Standing Rock, and Cheyenne River Sioux
    formula used in 1996?
        Mr. Lawson. We have not completely found all the
    documentation on that, but it seems to be that these two tribes
    were not aware of that formula in 1996 and 1997, and
    surprisingly neither the GAO nor the Congress made them aware
    that this methodology had been applied in the previous
    legislation.
        Senator Johnson. The amount called for in your testimony
    today is somewhat higher than the parity bill as it was
    originally introduced. I gather that this is simply the effect
    of additional interest in the intervening years. Is that
    correct?
        Mr. Lawson. Yes; that is correct. The original bill as
    introduced reflected the calculation of interest through
    calendar year 2002. The revised numbers reflect the calculation
    that includes the interest through calendar year 2003.
        Senator Johnson. If you could put together a written
    analysis of the difference between the Fort Berthold, Standing
    Rock, Cheyenne River formula versus the 1996 approach, that
    would be very helpful. We could put that in the record.
        Mr. Lawson. I would be happy to do that.
        Senator Johnson. That would be very helpful. Thank you.
        I appreciate that the final assessment about whether the
    reconciliation process is complete or not is a question that
    only the members of the Lower Brule and the Crow Creek Tribes
    themselves can answer. But from your perspective, would this
    parity in approach be a significant step toward reconciliation
    between the Indian and non-Indian communities along the
    Missouri River?
        Mr. Lawson. From my perspective, I view this legislation as
    being a final settlement for all of the damages that these
    tribes have suffered as a result of the Pick-Sloan dam
    projects.
        Senator Johnson. Very good.
        For Chairmen Jandreau and Big Eagle, again I thank you both
    for your testimony and for coming all the way to Washington to
    testify on this important legislation. I wonder if you could
    summarize for me in a brief fashion what the existing trust
    funds that you have under current law have allowed you to do on
    your respective reservations. Chairman Jandreau, what has that
    money been used for?
        Mr. Jandreau. The dollars that received through the trust
    fund have been leveraged to develop approximately $15 million
    worth of buildings that were sorely needed, a new tribal
    headquarters, a community center, a new office for the Wildlife
    Department. It contributed to the expansion of our rural water
    storage facilities. It helped us and solely was used for the
    construction of an ambulance office and garage.
        It has also been used to set up a fund for burial of our
    people that meets standards that are much higher than were
    allowed before. It has allowed us to provide a substantial
    increase in our educational dollars for the youth. It has
    allowed us to do some things with economic development, and as
    far as it was able, to expand a loan program on the reservation
    for individual members of the tribe.
        Totally, those dollars have been a significant part of
    helping to reduce and level the employment processes on the
    reservation. Those things roughly are what we have done up to
    this point.
        Senator Johnson. As you know, thanks to your hospitality, I
    have had an opportunity to tour those facilities on the Lower
    Brule. I can attest myself to what a wonderful improvement in
    the quality of life and the public health and safety and
    welfare of the people these projects have created. I am
    appreciative of your leadership in very innovatively using the
    dollars available in a way that maximizes their impact.
        Can you imagine any way that these projects would have been
    built, completed, or these programs put underway, without the
    resources from the trust fund?
        Mr. Jandreau. I guess knowing South Dakota and the
    inability to access with the limited resources that we had
    prior to this, it may have been able to be done, but it would
    have taken a long, long time to make it happen.
        Senator Johnson. The revenue from the trust fund, that is
    going to be required for some years to come now to pay off this
    indebtedness. So there is not a lot of additional room for
    still new initiatives or projects, given the revenue that you
    have. Is that correct?
        Mr. Jandreau. Yes; many of the plans that we laid out, or
    many of the developments that we have laid out in our plan are
    not going to be able to be accomplished for a long time, even
    under the old trust fund. With the new trust fund, should it be
    capitalized efficiently, will allow us the opportunity to meet
    the plan that we submitted to Congress.
        Senator Johnson. Can you give us some examples of things
    that you would be able to do if we were able to pass this
    legislation and improve the size of the trust fund?
        Mr. Jandreau. I sincerely believe that we would be able to
    complete our detention facility, holistically, that we are now
    in the process of constructing; that we could in all
    probability reduce unemployment to zero simply because of the
    outlaying plans that there are to employ not only adults, but
    youth; that we would expand our educational opportunity capital
    by at least 50 percent to 75 percent greater than we are
    providing today; that we could develop some of the economic
    opportunities such as tourism development and other activities
    that would stabilize the long-term growth of the reservation
    more effectively. We have the plans, but not the dollars.
        Senator Johnson. Thank you for that.
        On the Lower Brule, is there broad support for this
    legislation among the people on the Council with the Elders?
        Mr. Jandreau. I guess, you know, you have been around
    reservations for a long time, Senator.
        Senator Johnson. Unanimity is never possible, but a large
    consensus.
        Mr. Jandreau. If there is anything that there is any
    unanimity on, it would be in support of this.
        Senator Johnson. Very good.
        I would note as well that the Lower Brule sits astride very
    historic land related to the Lewis and Clark trip up the
    Missouri River.
        Chairman Big Eagle, I would ask you the same questions that
    I did to Mike. Could you give us a general picture of how have
    you used the resources from your existing trust fund up until
    now?
        Mr. Big Eagle. Senator, after a series of meetings with the
    three districts that we have on the Crow Creek Reservation and
    much consultation with the Elders and the tribal members asking
    them what they felt their wants and needs are, in our Big Bend
    District we purchased a school building that now provides
    educational facilities for over 40 children and 16 Head Start
    children. In our Fort Thompson and Crow Creek Districts, we
    have put up community buildings; the Crow Creek District in
    particular, with a gymnasium, so that children that are out
    there literally in the middle of nowhere can now have
    recreational activities in the evenings, which offsets what we
    like to feel is the ongoing suicide rate in our teenagers on
    the reservation.
        Senator Johnson. Share with us, have you had a recent spate
    of youth suicide?
        Mr. Big Eagle. Yes; we have. I believe it was addressed to
    me by one of Senator Daschle's staff at one point in time that
    a township of 2,200 people had an average of 22 suicide
    attempts or successes a month.
        Senator Johnson. A month.
        Mr. Big Eagle. A month.
        Senator Johnson. That is remarkable.
        Mr. Big Eagle. We have also purchased a tract of land at
    the insistence of a local rancher that would refuse to sell his
    land to anybody else but the tribe, that sits adjacent to the
    substation or the grid that is located north of Fort Thompson
    there, and have been working with South Dakota public utilities
    and other outside investment firms on developing wind energy. I
    believe in last week's Sioux Falls Argus Leader, Senator
    Daschle commented that South Dakota could produce 276,000
    megawatts with wind energy. We are at present hoping that we
    will someday establish at least 150 wind turbines on that tract
    of land for a start.
        Senator Johnson. You have the circumstance where you are
    located in an area where there is a lot of wind potential, but
    also you are next to the Big Bend Dam and the electricity grid
    that runs through there. So both you and Lower Brule have some
    potential in that regard, I would think.
        Mr. Big Eagle. We have set aside $100,000 annually for a
    student scholarship program for those that want to continue
    school and further their education. Like Lower Brule, I think
    Chairman Jandreau has kind of summed up a lot of the other
    useful purposes that the infrastructure has provided, the
    doorways that it has opened. We are grateful for that at this
    time.
        Senator Johnson. If you were to have a significantly
    enhanced trust fund, any thoughts about the kinds of things
    that you would use that revenue for?
        Mr. Big Eagle. At the present time, some of the issues that
    I work on, as you are aware of, is our educational facilities
    that are collapsing as we speak. I meet with the elderly who
    live in an outdated 1969 elderly center and have asked the
    tribe for help in setting up some kind of assisted living
    quarters because the houses that they live in have so many
    other relatives living in them.
        We have a large variety of contact with the elderly people
    in our community and they provide a lot of support in things
    that we want to do. So other than major road repair, probably
    we had to pass up the opportunity to work with a company out of
    Colorado that had contracts with the military to develop
    decontamination devices in this state of terrorism that we go
    through. We would have liked to have been able to put up a
    building that would have been suitable for such a factory and
    probably would have created somewhere in the area of 50 to
    whatever jobs.
        Senator Johnson. I have had an opportunity to tour the
    school at Stefan. In fact, Kevin Gover was with us those years
    ago. It was in deplorable condition then. Since then, things
    have only become worse. Thanks to your work and working with
    Senator Daschle, we have made some improvements on the
    gymnasium there, but there is much that remains to be done.
        Let me ask both the Chairmen here, either one of you can
    take this, to describe the planning process in place on your
    reservations that will assure the committee that the trust
    funds will be utilized in accordance with the wishes of the
    tribal people themselves; that there is a thoughtful public and
    organized utilization of the money. That this is not just free
    cash lying around someplace; that there is in fact a very
    systematic way of utilizing the trust fund.
        Mr. Jandreau. Senator, at Lower Brule presently we have an
    Infrastructure Development Committee that consists of
    approximately 16 people who are in various parts of the tribe,
    program directors, individuals of the community. Also in
    addition to that, we have representatives from the Bureau of
    Indian Affairs and from Indian Health Service who we utilized
    in an ongoing process to deal with any way that these dollars
    are programmed to be funded; any way that they will affect a
    plan into the future. Those activities after hearing by this
    particular committee, after being vetted to the public, are
    then provided to the Tribal Council for enactment. That is how
    we move this process forward at Lower Brule.
        Senator Johnson. Does the BIA have a role in this?
        Mr. Jandreau. Yes; their role is primarily advisory, the
    same way with Indian Health Service. Their role is primarily
    advisory. But the strength of personality that is there, if it
    is something that is not being conducted in a proper way, they
    are there to help with a guiding hand also.
        Senator Johnson. And there is an audit process that is
    involved?
        Mr. Jandreau. We have a yearly audit that is accomplished
    on all funds that are received by our tribe.
        Senator Johnson. Chairman Big Eagle, what is the process on
    your reservation?
        Mr. Big Eagle. Although we lack a committee, we meet with
    the people in our Tribal Council chambers and listen to their
    ideas and suggestions as to what they want done. We try to do
    this in a manner that we include all three districts. Like I
    say, we get a lot of advice from our tribal membership, our
    elderly and our young, and we try to follow at any point their
    direction. As I say, if anybody knows best what they need, it
    is them.
        So at some point in time, based on the unemployment ratio
    on the Crow Creek Reservation----
        Senator Johnson. What would you estimate that to be?
        Mr. Big Eagle. I would probably guess at this point
    somewhere in the high 80's, 85 percent.
        Senator Johnson. High 80's of unemployment?
        Mr. Big Eagle. Yes, sir; people have the opportunity to
    work on farms and ranches and travel to surrounding towns to
    commute for work. We try to employ as many as we can on a full-
    time or part-time basis. The Corps of Engineers recently now
    has started employing tribal members from both Lower Brule and
    Crow Creek, which has been very helpful.
        So I think whether it is a committee or whether it is just
    a general community meeting with the people, we both look at
    going in the same direction. That is what is best for the
    benefit of our tribes.
        Senator Johnson. Again, as I asked Chairman Jandreau, in
    your view there is pretty broad-based support on your Council
    and among your people for this legislation?
        Mr. Big Eagle. Yes; at our last Tuesday council meeting, we
    had a large turnout of different Bands of our people and the
    Districts. And on this day, I think that they are all offering
    up prayer at this point in time for the success of our trip.
        Senator Johnson. Thank you, and I know that neither of you
    are particularly fond of a lot of travel back and forth from
    South Dakota to Washington, but your presence here is
    critically important, and your insights are very valuable to
    the committee.
        We of course will share this with the committee and staff,
    and as was noted at the outset that the goal here is not simply
    to augment the trust fund for the sake of augmenting the trust
    fund. What is at work here is trying to arrive at a systematic,
    equitable, fair way of determining what a fair trust fund
    compensation amount might be. That is what we are attempting to
    do here.
        It would be interesting to know a little more about the
    dynamic of why some trust funds are arrived at in a far
    different fashion than these trust funds were, but in any event
    these are two tribes with enormously urgent needs, high levels
    of unemployment and poverty. Great progress has been made
    thanks to the leadership of these two Chair, but much, much
    more needs to be done.
        It seems critically important to me if we are going to draw
    this whole debate to a closure that all the tribes up and down
    the Missouri River who have been negatively impacted by the
    flooding of their historic land base should know that they have
    been treated fairly and equitably. Otherwise, there can never
    be very much satisfaction about any of this.
        So thank you for your leadership, what you have done here.
    Dr. Lawson, thank you for your insights. We look forward to
    some written response to that one point that we raised with
    you.
        Mr. Lawson. Mr. Chairman, I wonder if I might add a
    personal note for the record?
        Senator Johnson. Certainly.
        Mr. Lawson. This whole endeavor of studying the impact of
    the Pick-Sloan dams on the Missouri River tribes began for me
    more than 30 years ago when I needed to find a subject to write
    a doctoral dissertation about. Okay? Over the years, all of the
    tribes that received additional compensation have used in part
    or in whole my research. I just wanted to say what an enormous
    good feeling it gives to me that these Indian people have
    received a very practical application of that research and that
    they have been able to enjoy the additional compensation that
    Congress has provided them over the years.
        Senator Johnson. We are very appreciative of your work. I
    think it is fair to say that it is rare that academic work has
    such very real-life applications as yours has. We have more
    work to do here, but we will fall back on your study and your
    examination in large measure in the course of doing this.
        Keep it in mind again that the revenue for the creation of
    these trust funds is not out of the general fund, but rather
    comes from the electricity production on these earthen dams
    that in fact flooded these tribes. So there is a certain
    justice at the end of the day in that regard as well.
        Thank you for your testimony. We will have ongoing
    communications with all of you as we move this legislation
    forward in a constructive bipartisan fashion. I most simply say
    thank you for your presence here today. I think the fact that
    the Chairman and the Ranking Member were very willing to allow
    us to go forward with this hearing today is a good omen. I am
    confident that we will reach a point where we can draw a close
    to this whole debate about Missouri River flooding
    compensation.
        Thank you again.
        With that, this hearing is adjourned.
        [Whereupon, at 12:18 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

                                  ----------

                  Additional Material Submitted for the Record

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

    Prepared Statement of Duane Big Eagle, Chairman, Crow Creek Sioux Tribe

        Mr. Chairman, Members of the Committee, I am Duane Big Eagle,
    Chairman of the Crow Creek Sioux Tribe. Thank you very much for the
    opportunity to testify in support of the Tribal Parity Act, S. 1530.
        First, I would also like to thank Senator Daschle for the
    introduction of the legislation, and Senator Johnson for cosponsoring.
    The legislation before you this morning is of great importance to the
    Crow Creek Sioux Tribe. We support it and urge its favorable
    consideration by the Committee and the Congress.
        The Crow Creek Sioux Tribe is, like Lower Brule, a constituent band
    of the Great Sioux Nation and a signatory of the Fort Laramie Treaty of
    1851 and the Fort Sully Treaty of 1865. The Missouri River establishes
    our western boundary, directly across the river from Lower Brule. The
    Big Bend Dam connects our two reservations and its construction
    effected our two reservations in a similar manner. It flooded our best
    bottomlands and required us to relocate our town; for us that is Fort
    Thompson.
        In 1996, the Congress enacted Public Law 104-223 creating the Crow
    Creek Sioux Tribe Infrastructure Development Trust Fund Act. It
    established a Trust Fund of $37,500,000 for the benefit of the tribe.
    The legislation before you today, S. 1530, the Tribal Parity Act, would
    compliment that earlier law.
        We are not seeking any advantage over any other tribe, just parity.
    The additional compensation called for in the Tribal Parity Act was
    computed by Dr. Lawson based on methodology used by the GAO for other
    tribes. The amount included in the legislation, was not computed by
    either the Crow Creek Sioux Tribe or the Lower Brule Sioux Tribe. It is
    the amount that Dr. Lawson has computed would bring us up to the
    standard used by the Congress for Cheyenne River.
        Candidly, Mr. Chairman, our tribe needs ever dollar that is fairly
    owed to us. Our unemployment rate is too high, our health problems are
    a significant barrier to progress, and our education and infrastructure
    systems are in need on great improvement.
        With the interest on the trust fund, we could much more effectively
    meet the challenges we face on the reservation, and these challenges
    can not be overstated. We are a small tribe with great human needs. The
    Tribal Parity Act is vital to the progress and future of the Crow Creek
    Sioux Tribe.
        Mr. Chairman, we all know--painfully--the history of the
    reservations in the United States and the history of the Great Sioux
    Nation Tribes, in particular. We are not near any major population
    center. We have a casino, as does Lower Brule, but that will never be a
    major source of income. For us to stand a chance, we must, at aminimum,
    be fairly compensated for the land that was taken by the Pick-Sloan.
    The $78 million in the Parity bill for Crow Creek, if added to our
    current trust fund, would give us a trust fund of $105 million. The
    interest on this trust fund would provide Crow Creek with the resources
    necessary to make a significant difference in the lives of our people
    and the lives of our children and grandchildren. It would, in short,
    give our tribe a second chance. Thank you for your consideration. I
    would be pleased to answer any questions.

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