[House Report 107-285]
[From the U.S. Government Publishing Office]




107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-285

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



 
             PUEBLO OF ACOMA LAND AND MINERAL CONSOLIDATION

                                _______
                                

 November 13, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Hansen, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 1913]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 1913) to require the valuation of nontribal interest 
ownership of subsurface rights within the boundaries of the 
Acoma Indian Reservation, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. PUEBLO OF ACOMA LAND AND MINERAL CONSOLIDATION.

  (a) Valuation.--Not later than 6 months after the date of the 
enactment of this section, the Secretary of the Interior shall 
determine the extent and the value of the nontribal interest ownership 
of the subsurface rights, including mineral rights, within the 
boundaries of the Acoma Indian Reservation.
  (b) Land Exchanges.--Upon completion of the valuation required by 
subsection (a), the Secretary shall, unless the Secretary exercises an 
option under subsection (c), negotiate an exchange with any willing 
sellers of interests in nontribal land (including interests in mineral 
or other surface or subsurface rights) within the boundaries of the 
Acoma Indian Reservation for interests in Federal land that is--
          (1) located within the boundaries of the State of New Mexico;
          (2) identified by the Bureau of Land Management as available 
        for disposal; and
          (3) of approximately the same value as the interest in land 
        for which it is being exchanged.
  (c) Purchase Option.--At the discretion of the Secretary, instead of 
a land exchange under subsection (b), the Secretary may acquire 
interests in nontribal land (including interests in mineral or other 
surface or subsurface rights) within the boundaries of the Acoma Indian 
Reservation through--
          (1) direct cash purchase of the interests in nontribal land 
        for the fair market value determined under subsection (a);
          (2) issuance to any owner of the interests in nontribal land 
        of a Certificate of Bidding Rights in such form and manner as 
        provided for under regulations promulgated by the Secretary 
        under provisions of the Act of February 25, 1920 (commonly 
        known as the Mineral Leasing Act (30 U.S.C. 181 et seq.)) or 
        the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
        for mineral leasing and bidding rights equal to the fair market 
        value determined under subsection (a).
  (d) Cost Sharing.--The costs of the valuation required under 
subsection (a) and any land exchange under subsection (b) shall be 
equally shared between the owners of the interests in nontribal land 
and the Secretary. This subsection shall apply to the cost of the 
valuation under subsection (a) even if the Secretary elects to exercise 
the options for acquisition under subsection (c).
  (e) Timeline; Land Taken Into Trust.--The Secretary shall complete 
such negotiations and exchanges not later than 3 years after the date 
of the enactment of this section and shall place interests in land 
within the boundaries of the Acoma Indian Reservation that are acquired 
under this section into trust for the Pueblo of Acoma.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1913 is to require the valuation of 
nontribal interest ownership of subsurface rights within the 
boundaries of the Acoma Indian Reservation, and for other 
purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 1913 would effect an exchange of approximately 67,000 
acres of privately-owned subsurface rights (mineral rights) 
beneath lands within the Acoma Indian Reservation in New Mexico 
for lands or interests in lands to be identified by the 
Secretary of the Interior.
    When the Treaty of Guadalupe Hidalgo was signed in 1848, 
the territory which includes New Mexico was ceded by Mexico to 
the United States, and the federal government agreed that the 
Pueblo Indian tribes, and other land owners, would retain their 
property rights. In 1858, Congress recognized specific land 
claims of the Pueblo of Acoma. However, in 1866 a federal 
charter to the Atlantic and Pacific Railroad provided for a 
land grant from the public domain as an incentive to build a 
railroad and telegraph line along the 35th parallel that 
included a large portion of what is now the Acoma Indian 
Reservation. Under the law, Indian title lands could not be 
granted without ``voluntary session'' by the tribe. Regardless, 
U.S. land surveyors in 1876 and 1877 designated large amounts 
of tribal land as public domain. Thus, the improperly 
designated lands were available to the railroad company in 
alternating sections along the railroad right-of-way, despite 
the claims of the Pueblo of Acoma leaders. The New Mexico and 
Arizona Land Company (the NZ Corporation) owns 67,710 acres of 
mineral rights beneath the Acoma Indian Reservation, as 
successor in interest to part of the railroad grants lands 
which passed to the NZ's parent corporation.
    Under the National Recovery Act of June 16, 1933 (48 Stat. 
200), the United States purchased 11 townships of land from NZ, 
a recognition of sorts that the Pueblo of Acoma had a 
legitimate claim to the lands granted to the railroad, either 
by mistake or by design. At the time of the purchase, it was 
NZ's policy (and common practice everywhere) to reserve all 
oil, gas and minerals, together with right of access for 
prospecting and developing mineral resources in the future. 
However, NZ now believed that the Pueblo of Acoma's ``sacred 
connection and continuity with their land'' would mean that 
NZ's split-estate mineral interests likely could never be 
sufficiently explored or developed.
    For a decade or more, NZ and the Pueblo of Acoma have 
worked closely to remove private mineral rights, but are unable 
to proceed without the assistance of the federal government. 
The Acoma Tribal Council passed Resolution TC-May-30-90-2, 
titled: ``Authorizing the Administration to Negotiate with the 
New Mexico and Arizona Land Company and the Department of the 
Interior to Acquire Mineral Rights Inside 11 Townships.'' The 
original intent of the resolution was for the Department of the 
Interior (DOI) to acquire the mineral estates with the purpose 
of reuniting the surface and mineral estates for the benefit of 
the Pueblo of Acoma. On March 3, 1994, Ada E. Deer, then 
Assistant Secretary of Indian Affairs of the Department of the 
Interior, wrote to the Acoma Governor that she was aware of the 
situation and would request the Secretary of Interior to direct 
the Bureau of Land Management (BLM) to begin a three party land 
exchange between the BLM, NZ Company, and Acoma Pueblo. To 
date, all efforts have failed to even initiate the process.
    Should NZ assert its right of access to large portions of 
the Acoma Indian Reservation, including areas of great 
spiritual sensitivity, the Acoma would almost certainly oppose 
the effort. The result would be a federal court, not the Pueblo 
of Acoma people, would decide the fate of the Acoma land.
    H.R. 1913 would reunite the severed mineral estate with the 
surface for the benefit of the Acoma. H.R. 1913 provides that 
the federal land exchanged for the private mineral estate would 
be from the BLM disposal land list and would be of the same 
value. The bill would provide for the protection of Acoma 
sacred sites, protect the interest of the private NZ Company, 
eliminate this split estate obstacle to development by both 
parties, and halt the possibility of litigation over NZ's 
rights to develop their property rights.
    The Committee believes that nothing in this bill creates 
any precedent favoring a land exchange or purchase option for 
the situation addressed in H.R. 1913. The Committee agrees that 
any subsequent request for acquisition of nontribal interest 
ownership of subsurface rights, including mineral rights, 
within the boundaries of an Indian reservation shall be 
considered on a case by case basis.

                            COMMITTEE ACTION

    H.R. 1913 was introduced on May 17, 2001, by Congressman 
Joe Skeen (R-NM). It was referred to the Committee on Resources 
and within the Committee to the Subcommittee on Energy and 
Mineral Resources and the Subcommittee on National Parks, 
Recreation and Public Lands. On September 13, 2001, the 
Subcommittee on Energy and Mineral Resources held a hearing on 
the bill. On October 17, 2001, the Resources Committee met to 
consider the bill. The Subcommittee on Energy and Mineral 
Resources and the Subcommittee on National Parks, Recreation 
and Public Lands were discharged from further consideration of 
the bill by unanimous consent. Congressman Jim Gibbons (R-NV) 
offered an amendment in the nature of a substitute to allow the 
Secretary of the Interior the option to directly purchase the 
subsurface estate, if funds are available and this is the most 
efficient manner to unify subsurface and surface estates within 
the Acoma reservation. The amendment was adopted by voice vote. 
The bill as amended was then ordered favorably reported to the 
House of Representatives by voice vote.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. 
According to the Congressional Budget Office (CBO), enactment 
of H.R. 1913 could increase direct spending by a maximum of 
$1.7 million in 2002, but this would be offset by a 
corresponding decrease in direct spending in later years. 
Alternatively, CBO estimates that the bill could result in a 
loss of offsetting receipts from bonus bids of up to $1.7 
million in 2002.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of Rule 
XIII of the rules of the House of Representatives does not 
apply.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 7, 2001.
Hon. James V. Hansen,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1913, a bill to 
require the valuation of nontribal interest in ownership of 
subsurface rights within the boundaries of the Acoma Indian 
Reservation, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1913--A bill to require the valuation of nontribal interest in 
        ownership of subsurface rights within the boundaries of the 
        Acoma Indian Reservation, and for other purposes

    CBO estimates that enacting H.R. 1913 would increase direct 
spending by as much as $1.7 million in 2002, which could be 
offset by a corresponding decrease in direct spending in later 
years. Because the bill would affect direct spending (including 
offsetting receipts), pay-as-you-go procedures would apply. 
H.R. 1913 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    H.R. 1913 would direct the Secretary of the Interior to 
estimate the value of about 67,000 acres of privately owned 
subsurface rights and then acquire those rights in exchange for 
cash, mineral leasing or bidding credits, or interests in other 
federal lands of approximately equal value. The NZ Corporation, 
which specializes in the development and sale of real estate, 
owns those subsurface rights, which lie beneath lands located 
within the boundaries of the Acoma Indian Reservation in New 
Mexico. Under the bill, once the Secretary acquires the 
corporation's subsurface rights, they would be taken into trust 
on behalf of the Pueblo of Acoma.
    The corporation's subsurface rights are estimated to be 
worth between $1 million and $1.7 million. For this estimate, 
we assume that the Secretary would use cash to purchase the 
subsurface rights in 2002. According to Department of Interior 
(DOI), doing so would require the department to reprogram 
existing funds allocated to other land acquisition projects 
that are not expected to proceed this year. Hence, CBO 
estimates that using such funds to implement H.R. 1913 would 
increase direct spending by up to $1.7 million in 2002 as shown 
in the following table. That increase might be offset in 
subsequent years, but any such effects would likely depend on 
future legislation.

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                            CHANGE IN DIRECT SPENDING

Estimated Budget Authority.........................................        0        0        0        0        0
Estimated Outlays..................................................        2        0        0        0        0
----------------------------------------------------------------------------------------------------------------

    Alternatively DOI could compensate the corporation with 
mineral leasing or bidding credits, which would result in 
forgone offsetting receipts from bonus bids when those credits 
are used to pay a winning bid to secure a federal oil or gas 
lease. CBO estimates that granting such credits as an 
alternative method to acquire the subsurface rights would 
result in a loss of offsetting receipts from bonus bids of up 
to $1.7 million in 2002--and this cost would not be offset in 
later years.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                
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