[Senate Report 109-116]
[From the U.S. Government Publishing Office]
Calendar No. 186
109th Congress Report
SENATE
1st Session 109-116
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PROVIDING FOR THE ACQUISITION OF SUBSURFACE MINERAL INTERESTS IN LAND
OWNED BY THE PASCUA YAQUI TRIBE AND LAND HELD IN TRUST FOR THE TRIBE
_______
July 29, 2005.--Ordered to be printed
_______
Mr. McCain, from the Committee on Indian Affairs, submitted the
following
R E P O R T
[To accompany S. 1291]
The Committee on Indian Affairs, to which was referred the
bill (S. 1291) to provide for the acquisition of subsurface
mineral interests in land owned by the Pascua Yaqui Tribe and
land held in trust for the Tribe, having considered the same,
reports favorably thereon without amendment and recommends that
the bill (as amended) do pass.
PURPOSE
The purpose of S. 1291 is to allow the United States to
obtain and/or consolidate ownership of the subsurface rights,
title and interests (including subsurface mineral rights), in
its name, in trust for the Pascua Yaqui Tribe (hereinafter the
``Tribe''). These subsurface interests are beneath the surface
of land already either owned by the Tribe, or held in trust for
the Tribe by the United States.
BACKGROUND
The Tribe has purchased in fee four parcels of land,
totaling approximately 436 acres, from the State of Arizona.
These parcels are contiguous to the Tribe's reservation near
Tucson, Arizona. The Tribe subsequently applied to have these
lands taken into trust pursuant to Department of the Interior
Land Into Trust regulations found in the Code of Federal
Regulations at Title 25, Part 151.
The Bureau of Indian Affairs approved the trust application
pursuant to the Part 151 regulations. However, the State of
Arizona objected due to its ownership of the subsurface mineral
rights beneath the subject lands. Arizona law prevents the
State from selling mineral interests and the only way they can
be acquired is through an act of condemnation brought by the
United States pursuant to 40 U.S.C. 3113. The State of Arizona
has consented to a condemnation action (see attached).
Based on the State of Arizona's objection, and with the
Tribe's consent, the Land Into Trust application was stayed
pending resolution of the subsurface mineral rights title
issue.
It has since been discovered that an additional 140 acres
of land with the Tribe's reservation was also former State of
Arizona trust land that was purchased in fee by the Tribe and
taken into trust without obtaining the mineral estate. The
State of Arizona has likewise consented to a condemnation
action, pursuant to 40 U.S.C. 3113, with regard to these
additional 140 acres.
In additional to the condemnation of the State of Arizona
mineral interests, S. 1291 also deals with mineral interests
owned by the United States. Under 360 acres of land within the
Tribe's reservation, the United States owns the mineral
interests for itself, rather than in trust for the Tribe.
Although that acreage was originally purchased in fee by the
Tribe, it was originally patented by the United States and the
United States retained the mineral interests to that property
for its own benefit, currently administered by the Bureau of
Land Management. S. 1291 would authorize the Bureau of Land
Management to transfer beneficial ownership of those mineral
interests to the Tribe, to be held in trust by the United
States.
LEGISLATIVE HISTORY
S. 1291 was introduced on June 23, 2005, for himself, and
was referred to the Committee on Indian Affairs. On June 29,
2004, at an open business session duly noticed, the Committee
adopted S. 1291 by voice vote and ordered the bill reported
favorably to the Senate with a recommendation that the Senate
pass the bill.
SECTION-BY-SECTION ANALYSIS OF S. 1291
Section 1. Short title
This section cites the short title as the ``Pascua Yaqui
Mineral Rights Act of 2005''.
Section 2. Definitions
The term ``Secretary'' means the Secretary of the Interior.
The term ``State'' means the State of Arizona. The term
``Tribe'' means the Pascua Yaqui tribe.
Section 3. Acquisition of subsurface mineral interests
This section set forth the specific tribally-owned parcels
that the Secretary shall acquire through eminent domain from
the State of Arizona, only by consent of the State, all
subsurface rights, title, and interests (including subsurface
mineral interests) held by the State. Total subsurface estate
owned by the State of Arizona includes 436 acres that are
adjacent to the reservation, but not held in trust for the
tribes, and 140 acres that are located within the reservation
boundary with the surface estate currently held in trust for
the tribe.
The section also sets forth that the Secretary shall pay to
the State an amount equal to the market value of the subsurface
mineral interests acquired and that the Tribe agrees to fully
reimburse the Secretary relating to the acquisition, including
payment to the State for the acquisition.
Section 4. Interests taken into trust
This section sets forth that the Secretary shall take into
trust for the benefit of the Tribe the subsurface rights,
title, and interests, formerly reserved to the United States.
The 360 acres of subsurface estate, located beneath the surface
currently held in trust for the Tribe, are administered by the
Bureau of Land Management. This section authorizes the BLM to
transfer the subsurface estate to the U.S. to be held in trust
for the Tribe.
This section also sets forth that the Tribe shall pay to
the Secretary only the transaction costs relating to the
assessment, review, and transfer of the subsurface rights,
title, and interests taken into trust under this section.
COMMITTEE RECOMMENDATION AND TABULATION OF VOTE
On June 29, 2005, the Committee, in an open business
session, considered S. 1291 and ordered S. 1291 favorably
reported to the full Senate with a recommendation that the bill
do pass.
COST AND BUDGETARY CONSIDERATIONS
The cost estimate for S. 1291 as calculated by the
Congressional Budget Office, is set forth below:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 19, 2005.
Hon. John McCain,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1291, the Pascua
Yaqui Mineral Rights Act of 2005.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Deborah
Reis and Mike Waters.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
S. 1291--Pascua Yaqui Mineral Rights Act of 2005
S. 1291 would direct the Department of the Interior (DOI)
to acquire all subsurface rights and interests to certain lands
in Arizona by eminent domain. Once acquired, these interests
would be put into trust for the Pascua Yaqui Tribe. The tribe,
which already owns the related surface estate, would reimburse
the department for any transaction and appraisal costs.
Based on information provided by DOI and the state of
Arizona and assuming the availability of appropriated funds,
CBO estimates that acquiring the affected property rights for
the Pascua Yaqui Tribe would cost less than $500,000 over the
next year. We expect that reimbursement by the tribe for
associated transaction costs would sum to a few thousand
dollars; therefore, we estimate that enacting this legislation
would have no significant effect on direct spending. Enacting
S. 1291 would not affect revenues.
S. 1291 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.
The acquisitions authorized by the bill would be voluntary on
the part of the tribe and the state of Arizona; any costs they
would incur as a result of these acquisitions would be incurred
voluntarily.
The CBO staff contacts for this estimate are Deborah Reis
and Mike Waters. This estimate was approved by Peter H.
Fontaine, Deputy Assistant Director for Budget Analysis.
REGULATORY AND PAPERWORK IMPACT STATEMENT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that each report accompanying a bill evaluate
the regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee has concluded that S. 1291
will reduce regulatory or paperwork requirements and impacts.
EXECUTIVE COMMUNICATIONS
The Committee has received no communications from the
Executive Branch regarding S. 1291.
CHANGES IN EXISTING LAW
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law are
required to be made. The committee has determined that there
are no changes to existing law made by S. 1291.
COMMITTEE CORRESPONDENCE
State of Arizona,
Office of the Governor,
Phoenix, AZ, May 20, 2005.
Re Senate Companion Bill for H.R. 631.
Hon. John McCain,
U.S. Senate,
Russell Senate Office Building, Washington, DC.
Hon. Jon Kyl,
Hart Senate Office Building,
Washington, DC.
Dear Senators McCain and Kyl: I am writing to you at the
request of the Pascua Yaqui Tribe of Arizona, a federally
recognized Indian Tribe.
At the request of the Pascua Yaqui Tribe, the Honorable
Raul Grijalva has sponsored a bill in the House of
Representatives that is designated as H.R. 631. This is a bill
in which the Tribe seeks the assistance of the U.S. in
condemning subsurface mineral interests owned by the State of
Arizona under land for which either the Tribe, or the United
States in trust for the Tribe, owns the surface interests.
This bill provides for the U.S. to acquire subsurface
rights only. It does not involve an attempt to implement new
gaming. The payment required under the bill is not a proposed
exchange of land. Rather, the Pascua Yaqui Tribe will pay the
full value of the mineral interests in cash. In addition, the
Tribe will also be required to pay the State's costs in the
condemnation action in cash, plus will also pay, in cash, all
the costs and expenses of the condemnation incurred by the
United States.
As it is written, to be successful this bill requires the
consent of the State of Arizona. On behalf of the State of
Arizona, and its Land Trust, this letter is to inform you that
the State of Arizona supports H.R. 631, and also supports the
request of the Pascua Yaqui Tribe that you jointly introduce a
mirror image bill mirroring H.R. 631 in the Senate.
Thank you each for your consideration.
Yours very truly,
Janet Napolitano,
Governor.