[Congressional Record Volume 143, Number 109 (Tuesday, July 29, 1997)]
[Senate]
[Pages S8265-S8266]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself and Mr. Conrad):
  S. 1079. A bill to permit the leasing of mineral rights, in any case 
in which the Indian owners of an allotment that is located within the 
boundaries of the Fort Berthold Indian Reservation and held trust by 
the United States have executed leases to more than 50 percent of the 
mineral estate of that allotment; to the Committee on Indian Affairs.


    oil and gas development at fort berthold reservation legislation

  Mr. DORGAN. Mr. President, today I am introducing legislation, along 
with my good friend and colleague Mr. Conrad. that will promote 
economic development on the Fort Berthold Indian Reservation in our 
State.
  Economic development must be among our top priorities in Indian 
country, and our Federal policies should support, not hinder, the 
creation of new employment opportunities on our Nation's Indian 
reservations. This bill is aimed at addressing a provision in Federal 
law that is unnecessarily hampering the economic development efforts of 
Three Affiliated Tribes in North Dakota and has the support of the 
Tribes' Business Council.
  The Fort Berthold Indian Reservation has been working for years to 
develop partnerships with the oil industry to explore the development 
of oil and gas resources on its tribally owned or allotted lands. The 
Fort Berthold Reservation covers about 1 million acres of land in the 
middle of the proven oil-rich Williston Basin. There has been active 
oil and gas exploration and

[[Page S8266]]

development on the lands surrounding the reservation, but Three 
Affiliated Tribes itself and its members have been able to participate 
in this activity in only a very limited way because of a Federal 
requirement that 100 percent of all tribal members with ownership in an 
allotment agree to the leasing of that allotment. Some of the allotted 
land tracts on this reservation are owned by up to 200 individuals, and 
if even one of these owners will not sign the lease, the exploration 
cannot proceed. This outmoded 100-percent requirement makes it 
virtually impossible for tribes and its members to pursue this kind of 
economic development, even if a vast majority of allottees are 
supportive.
  This legislation, which is narrowly drawn and applies only to the 
Fort Berthold Reservation, would allow a leasing agreement to go 
forward if more than 50 percent of those with an interest in specific 
allotted lands agree. By keeping in place a majority requirement for 
the leasing of mineral rights, the rights of individual landowners 
would still be protected. The Secretary of the Interior would also 
still have to review and approve a proposed leasing agreement.
  The economic implications of this legislation for Three Affiliated 
Tribes are enormous. The drilling of just 1 well would create 50 to 100 
jobs, so clearly, this bill can help the Indian people on Fort Berthold 
Reservation to move away from welfare dependency to economic 
independence. I look forward to working with my colleagues to enact 
this legislation.
  Mr. President, I ask unanimous consent that the text of my bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1079

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. LEASES OF ALLOTTED LANDS OF THE FORT BERTHOLD 
                   INDIAN RESERVATION.

       (a) In General.--
       (1) Approval by secretary of the interior.--
       (A) In general.--Notwithstanding any other provision of law 
     (including the Act of March 3, 1909 (35 Stat. 783, chapter 
     263; 25 U.S.C. 396) and the regulations issued under that 
     Act), the Secretary of the Interior or a designee of the 
     Secretary may approve mineral leases of an allotment 
     described in paragraph (2) in any case in which the Indian 
     owners of that allotment have executed leases to more than 50 
     percent of the mineral estate of that allotment.
       (B) Benefits of leases.--At such time as mineral leases on 
     an allotment have been approved for all Indian ownership 
     interests pursuant to this section, all Indian owners of the 
     allotment shall be entitled to the benefits of the leases.
       (2) Allotments.--An allotment described in this paragraph 
     is an allotment that--
       (A) is located in the Fort Berthold Indian Reservation, 
     North Dakota; and
       (B) is held in trust by the United States.
       (b) Rules of Construction.--This Act supersedes the Act of 
     March 3, 1909 (35 Stat. 783, chapter 263; 25 U.S.C. 396) only 
     to the extent provided in subsection (a).

  Mr. CONRAD. Mr. President, I am pleased to introduce, along with my 
distinguished colleague from North Dakota, legislation to increase 
opportunities for oil and gas leasing on the Fort Berthold Indian 
Reservation in North Dakota.
  Mr. President, as a member of the Senate Select Committee on Indian 
Affairs, I understand the importance of increasing economic development 
in Indian country, in particular, development that creates high-paying, 
skilled employment. Members of the Three Affiliated Tribes at Fort 
Berthold have been working on a plan to create jobs and increase 
revenue through oil and gas development on the Fort Berthold 
Reservation, which lies within the oil-rich Williston Basin.
  At present, there are only seven oil producing wells on land owned by 
the Three Affiliated Tribes or tribal members. The Tribal Business 
Council is considering possibilities for development of oil and gas 
reserves of its tribally owned land and allotted lands of its members 
and is pursuing approval by the Bureau of Indian Affairs of an 
exploration and development agreement under the Mineral Development 
Act.
  The fractionated ownership of allotted lands complicates the leasing 
and exploration process. The Bureau must approve tribal oil and gas 
leases, and in order for the Bureau to approve a lease of Indian lands, 
all who have an interest in the land must agree to the particular oil 
and gas lease. The number of people who have an undivided interest in 
various land allotments grows larger each year and now involves 
hundreds of people. Thus, for an oil and gas exploration to commence, 
hundreds of oil and gas leases for small allotments of land would have 
to be executed. If any one person with an interest--no matter how 
small--in the land objects, the lease agreement would fail. Present law 
creates a nearly insurmountable barrier to this type of oil and gas 
development, even in the face of overwhelming support by allotted 
landowners.
  The legislation we are introducing today--which applies only to the 
Fort Berthold Indian Reservation--would allow an oil and gas lease to 
become effective if those individual owners of 50 percent or more of 
the interests in a particular tract of mineral acres agree to the 
lease. The bill also includes safeguards to ensure that all Indian 
owners of the allotments are entitled to the benefits of the leases.
  This legislation is an important step for oil and gas development on 
the Fort Berthold Indian Reservation; it is supported by the Tribal 
Business Council of the Three Affiliated Tribes. I believe the bill can 
also serve as a model for addressing other problems in Indian country 
that have arisen as a result of fractionated heirship, and a first step 
toward a more comprehensive solution.
                                 ______