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[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.

                                  
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