19–010

1 25 U.S.C. 415(a). 

Calendar No. 99

108TH CONGRESS REPORT " SENATE ! 1st Session 108–48

AMENDING THE ACT OF AUGUST 9, 1955, TO EXTEND THE 

TERMS OF LEASES OF CERTAIN RESTRICTED INDIAN 

LAND, AND FOR OTHER PURPOSES

MAY 15, 2003.—Ordered to be printed 

Mr. CAMPBELL, from the Committee on Indian Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 521]

The Committee on Indian Affairs, to which was referred the bill 

(S. 521) to amend the Act of August 9, 1955, to extend the terms 

of leases of certain restricted Indian land, and for other purposes, 

having considered the same, reports favorably thereon with an 

amendment in the nature of a substitute and recommends that the 

bill (as amended) do pass. 

PURPOSE

The purpose of S. 521 is to amend the Act of August 9, 1955, 25 

U.S.C. 415, Pub. L. 83–255 to expedite the leasing of tribal lands 

by eliminating duplicative Federal and tribal procedures for the 

leasing of Indian reservation lands. 

BACKGROUND

Article I, section 8, clause 3 of the United States Constitution authorizes Congress to regulate commerce with Indian tribes. Under 

current law, the approval of the Secretary of the Interior is required for any lease of Indian lands held in trust by the United 

States for any Federally-recognized Indian tribe in the United 

States for a term of up to 25 years.1

Indian tribes have long complained of the bureaucratic delays in 

securing secretarial approvals and the loss of economic opportunities resulting from those delays.

2

2 Id. 

To attract and retain investment and encourage entrepreneurial 

activity, Indian tribes require an efficient leasing process that is 

less time-consuming than the current Interior Department review. 

In addition, tribes need the flexibility to execute leases for terms 

longer than the current 25 year limit. 

Since its enactment in 1955, the original Act has been amended 

over 38 separate times to reflect the tribes’ wishes that their leases 

include terms longer than 25 years.2

Because many tribes have established land leasing regulations, 

in many cases a typical lease on Indian reservation land must be 

approved twice—once by the tribe and then again by the Secretary. 

This results in serious delays that become a barrier to economic development on Indian lands. 

The new framework included in the substitute amendment to S. 

521 authorizes the Secretary to approve an Indian tribe’s regulations governing the leasing of its tribal lands—except for leases involving the exploration or development of mineral resources—and, 

once approved, leases of Indian trust lands will no longer require 

Secretarial approval. The terms of such leases may not exceed the 

time frames specified in the bill. 

LEGISLATIVE HISTORY

The Indian Lands Leasing Act of 2003 was introduced on March 

5, 2003 by Senator Campbell, for himself and for Senator Inouye, 

and was referred to the Committee on Indian Affairs. On April 10, 

2003, the Committee on Indian Affairs convened a business meeting to consider S. 521 and other measures that had been referred 

to it. On that date the Committee favorably reported an amendment in the nature of a substitute to S. 521. 

COMMITTEE RECOMMENDATION AND TABULATION OF VOTE

On April 10, 2003, the Committee on Indian Affairs, in an open 

business session, adopted an amendment in the nature of a substitute to S. 521 by voice vote and ordered the bill, as amended, 

reported favorably to the Senate. 

SECTION-BY-SECTION ANALYSIS OF THE SUBSTITUTE AMENDMENT

A section-by-section analysis of the amendment in the nature of 

a substitute follows. 

Section 1. Short title 

This Act may be cited as the Indian Lands Leasing Act of 2003. 

Section 2. Authorization of 99-year leases 

This section amends subsection (a) of the Act of August 9, 1955, 

25 U.S.C. 415, to provide that leases of restricted lands held by the 

Confederated Tribes of the Umatilla Indian Reservation, the Yurok 

Tribe, the Hopland Rancheria, and the Muckleshoot Tribe may be 

of terms not to exceed 99 years. 

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Section 3. Lease of tribally-owned land by the Assiniboine and 

Sioux Tribes of the Fort Peck Reservation 

This section authorizes the Assiniboine and Sioux Tribes of the 

Fort Peck Reservation of Montana to lease land to the Northern 

Border Pipeline Company land for one or more gas pipelines for a 

term of 25 years beginning in 2011. The lease may be renewed for 

another 25 years and the rental rate for land shall be increased by 

3 percent per annum for each 5-year period. 

Section 4. Certification of rental proceeds 

This section provides that any revenue accrued from renting land 

acquired under Farmers Home Administration Direct Loan Act, 25 

U.S.C. 488 shall be considered the rental value of that land and 

considered the appraisal value of that land. 

Section 5. Montana Indian Tribes; agreement with Dry Prairie 

Rural Water Association, Incorporated 

Section 5 provides that the Assiniboine and Sioux Tribes of the 

Fort Peck Indian Reservation of Montana may enter into a lease 

agreement with the Dry Prairie Rural Water Association for the 

temporary conveyance of water rights recognized under the Fort 

Peck-Montana Compact to meet the water needs of the association 

for a term not to exceed 100 years. 

Section 6. Leases of restricted Indian land; non-Indian land business partners on Indian land 

This section amends the Act of August 9, 1955 regarding leases 

of restricted Indian lands to provide that, at the discretion of any 

Indian tribe, any lease approved by a tribe for any use permitted 

under 25 U.S.C. 415 shall not require the Secretary of the Interior’s approval if the lease is executed pursuant to tribal regulations approved by the Secretary. The lease term may not exceed 99 

years. 

Section 6 also authorizes the Secretary to approve or disapprove 

such tribal regulations, and sets forth the process for the Secretary 

to review and approve or disapprove the regulations. This section 

also provides that the United States shall not be liable for losses 

sustained by any party—including the Indian tribe—to a lease executed pursuant to such tribal regulations. 

COST AND BUDGETARY CONSIDERATION

The cost estimate for S. 521 as calculated by the Congressional 

Budget Office, is set forth below:

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, April 28, 2003. 

Hon. BEN NIGHTHORSE CAMPBELL, 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. 521, the Indian Land Leasing Act of 2003. 

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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Lanette J. Walker. 

Sincerely, 

BARRY B. ANDERSON

(For Doug Holtz-Eakin, Director). 

Enclosure.

S. 521—Indian Land Leasing Act of 2003

CBO estimates that enacting S. 521 would have no significant 

impact on the federal budget. Enacting S. 521 would not affect direct spending or revenues. The bill contains no intergovernmental 

or private-sector mandates as defined in the Unfunded Mandates 

Reform Act and would impost no costs on state, local, or tribal governments. 

S. 521 would add four Indian tribes to the list of tribes that can 

lease lands held in trust for up to 99 years. Under current law, 

these tribes may only enter into leases on lands in trust that do 

not exceed 25 years. S. 521 also would allow other tribes to enter 

into such long-term leases without the approval of the Secretary if 

certain requirements are met. Based on information provided by 

the Bureau of Indian Affairs, CBO expects that implementing this 

change in lease terms could result in a small administrative cost 

savings to that agency because of less frequent lease renewals. 

However, CBO estimates that any such savings would be less than 

$500,000 a year over the 2003–2008 period. 

The CBO staff contact for this estimate is Lanette J. Walker. 

This estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT STATEMENT

Paragraph 11(b) of the rule XXVI of the Standing Rules of the 

Senate requires that each report accompanying a bill to evaluate 

the regulatory and paperwork impact that would be incurred in implementing the legislation. The Committee has concluded that enactment of S. 521 will create only de minimis regulatory or paperwork burdens. 

EXECUTIVE COMMUNICATIONS

The Committee has received no official communication from the 

Administration on the provisions of the amendment in the nature 

of a substitute to S. 521.

CHANGES IN EXISTING LAW

In compliance with subsection 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee states that the enactment of 

S. 521 will result in the following changes in 25 U.S.C. Sec. 415 

et seq., (with existing law proposed to be omitted is enclosed in 

black brackets and the new language to be added in italic): 

25 U.S.C. 415(a) 

(a) AUTHORIZED PURPOSES; TERM; APPROVAL BY SECRETARY.—

Any restricted Indian lands, whether tribally, or individually 

owned, may be leased by the Indian owners, with the approval of 

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the Secretary of the Interior, for public, religious, educational, recreational, residential, or business purposes, including the development or utilization of natural resources in connection with the operations under such leases, for grazing purposes, and for those 

farming purposes which require the making of a substantial investment in the improvement of the land for the production of specialized crops as determined by said Secretary. All leases so granted 

shall be for a term of not to exceed twenty-five years, except leases 

of land located outside the boundaries of Indian reservations in the 

State of New Mexico, leases of land on the Agua Caliente (Palm 

Springs) Reservation, the Dania Reservation, the Pueblo of Santa 

Ana (with the exception of the lands known as the ‘‘Santa Ana 

Pueblo Spanish Grant’’) the Moapa Indian Reservation, the 

Swinomish Indian Reservation, the Southern Ute Reservation, the 

Fort Mojave Reservation, the Reservation of the Confederated 

Tribes of the Umatilla Indian Reservation, the Burns Paiute Reservation, the Coeur d’Alene Indian Reservation, the Kalispel Indian 

Reservation, the Pueblo of Cochiti, the Pueblo of Pojoaque, the 

Pueblo of Tesuque, the Pueblo of Zuni, the Hualapai Reservation, 

the Spokane Reservation, the San Carlos Apache Reservation, the

Yavapai-Prescott Community Reservation, the Pyramid Lake Reservation, the Gila River Reservation, the Soboba Indian Reservation, the Viejas Indian Reservation, the Tulalip Indian Reservation, 

the Navajo Reservation, the Cabazon Indian Reservation, The 

Muckleshoot Indian Reservation and land held in trust for the 

Muckleshoot Indian Tribe, the Mille Lacs Indian Reservation with 

respect to a lease between an entity established by the Mille Lacs 

Band of Chippewa Indians and the Minnesota Historical Society, 

leases of the lands compromising the Moses Allotment Numbered 

10, Helen County, Washingtonø,¿, and lands held in trust for the 

Twenty-Nine Palms Band of Luiseno Mission Indians, and lands 

held in trust for the Reno Sparks Indian Colony, lands held in 

trust for the Torres Martinez Desert Cahuilla Indians, lands held 

in trust for the Guidiville Band of Pomo Indians of the Guidiville 

Indian Rancheria, lands held in trust for the Confederated Tribes 

of the Umatilla Reservation, lands held in trust for the Pueblo of 

Santa Clara, lands held in trust for the Yurok Tribe, lands held in 

trust for the Hopland Band of Pomo Indians of the Hopland 

Rancheria, lands held in trust for the Confederated Tribes of the 

Coville Reservation, lands held in trust for the Cahuilla Band of 

Indians of California, lands held in trust for the Confederated 

Tribes of the Grand Ronde Community of Oregon, and the lands 

held in trust for the Confederated Salish and Kootenai Tribes of 

the Flathead Reservation, Montana, and leases to the Devils Lake 

Sioux Tribe, or any organization of such tribe, of land on the Devils 

Lake Sioux Reservation which may be for a term of not to exceed 

ninety-nine years, and except leases of land for grazing purposes 

which may be for a term of not to exceed ten years. Leases for public, religious, educational, recreational, residential, or business purposes (except leases the initial term of which extends for more than 

seventy-four years) with the consent of both parties may include 

provisions authorizing their renewal for one additional term of not 

to exceed twenty-five years, and all leases and renewals shall be 

made under such terms and regulations as may be prescribed by 

the Secretary of the Interior. Prior to approval of any lease or exVerDate Jan 31 2003 21:48 May 17, 2003 Jkt 019010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR048.XXX SR048
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tension of an existing lease pursuant to this section, the Secretary 

of the Interior shall first satisfy himself that adequate consideration has been given to the relationship between the use of the 

leased lands and the use of neighboring lands; the height, quality, 

and safety of any structures or other facilities to be constructed on 

such lands; the availability of police and fire protection and other 

services; the availability of judicial forums for all criminal and civil 

causes arising on the leased lands; and the effect on the environment of the uses to which the leased lands will be subject.

25 U.S.C. 415(f) 

(f) APPROVAL OF, AND REGULATIONS RELATING TO, TRIBAL

LEASES.—

(1) Definitions. In this subsection: 

(A) INDIAN TRIBE.—The Term ‘‘Indian tribe’’ has the 

meaning given the term in section 4 of the Indian Self-Determination and the Education Assistance Act (25 U.S.C. 

450b). 

(B) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior. 

(2) APPROVAL OF LEASES.—At the discretion of any federally 

recognized Indian tribe, a lease by the federally recognized Indian tribe for a purpose authorized under subsection (a) (not including any lease for the exploration, development, or extraction 

of any mineral resource) shall not require the approval of the 

Secretary if— (A) the lease is executed under the tribal regulations approved by the Secretary under paragraph (3); and 

(B) the term of the lease does not exceed— (i) in the case of a business or agricultural lease, 99 

years; and 

(ii) in the case of a lease for a public, religious, educational, recreational, or residential purpose, 99 years, 

if such a term is provided for by the federally recognized Indian tribe in the tribal regulations. 

(3) TRIBAL REGULATIONS.— (A) IN GENERAL.—The Secretary may approve or disapprove tribal regulations referred to in paragraph 

(2)(B)(ii). 

(B) APPROVAL AND DISAPPROVAL.—Not later than 90 days 

after the date on which the Secretary receives tribal regulations described in paragraph (2)(B)(ii) from a federally recognized Indian tribe (or such later date as may be established by the Secretary, after consultation with the Indian 

tribe), the Secretary shall—

(i) review the tribal regulations; and 

(ii)(I) if the Secretary determines that the tribal regulations are consistent with the regulations of the Secretary promulgated under subsection (a)—

(aa) approve the regulations; and 

(bb) provide for an environmental review process 

with respect to the regulations; or 

(II) if the Secretary determines that the regulations 

are not consistent with the regulations of the Secretary 

promulgated under subsection (a)—

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(aa) disapprove the regulations; and 

(bb) provide to the Indian tribe that submitted 

the tribal regulations a written explanation that 

describes the basis for the disapproval. 

(4) EXECUTED LEASES.—If a federally recognized Indian tribe 

has executed a lease under paragraph (2) in accordance with 

tribal regulations approved under paragraph (3), the Indian 

tribe shall provide to the Secretary—

(A) a copy of the lease (including all amendments to and 

renewals of the lease); and 

(B) in the case of a tribal regulation or lease that permits 

payments for the lease to be made directly to the Indian 

tribe, documentation of the payments that is sufficient to 

enable the Secretary to discharge the trust responsibility of 

the United States under paragraph (5)(B). 

(5) LIABILITY AND TRUST RESPONSIBILITY.—

(A) LIABILITY.—The United States shall not be liable for 

any loss sustained by any party to a lease approved under 

paragraph (2) in accordance with tribal regulations approved under paragraph (3) (including any loss by an Indian tribe).

(b) TRUST RESPONSIBILITY.—Nothing in this paragraph 

diminishes or otherwise affects the authority of the secretary to take appropriate actions, including the cancellation of a lease, in furtherance of the trust obligation of the 

United States to an Indian tribe. 

(6) COMPLIANCE REVIEW.—

(A) IN GENERAL.—After exhaustion of tribal remedies, 

any person may submit to the Secretary, in a timely manner, a petition to review compliance of an Indian tribe with 

tribal regulations of the Indian tribe approved under paragraph (3). 

(B) ACTION BY SECRETARY.—The Secretary shall—

(i) review compliance of an Indian tribe described in 

subparagraph (A); and 

(ii) on completion of the review, if the Secretary determines that an Indian tribe is not in compliance with 

tribal regulations approved under this subsection, take 

such action as is necessary to compel compliance, including—

(I) rescinding a lease approved under paragraph 

(2); or 

(II)(aa) suspending a lease approved under paragraph (2) until an Indian tribe is in compliance 

with tribal regulations; and 

(bb) rescinding approval of the tribal regulations 

and reassuring the responsibility for approval of 

leases under paragraph (2). 

(C) COMPLIANCE.—If the Secretary seeks to compel compliance of an Indian tribe with tribal regulations under 

subparagraph (B)(ii), the Secretary shall—

(i) make a written determination that describes the 

manner in which the tribal regulations have been violated; 

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(ii) provide the Indian tribe with a written notice of 

the violation together with the written determination; 

and 

(iii) before taking any action described in subparagraph (B)(ii) or seeking any other remedy, provide the 

Indian tribe with a hearing and a reasonable opportunity to attain compliance with the tribal regulations. 

(7) APPLICABILITY.—This subsection shall not apply to individually owned Indian allotted land. 

25 U.S.C. 415(g) 

(1) IN GENERAL.—Notwithstanding subsection (a) and any 

regulations under part 162 of title 25, Code of Federal Regulations (or any successor regulation), subject to paragraph (2), the 

Assiniboine and Sioux Tribes of the Fort Peck Reservation may 

lease to the Northern Border Pipeline Company tribally-owned 

land on the Fort Peck Indian Reservation for 1 or more interstate gas pipelines. 

(2) CONDITIONS.—A lease entered into under paragraph (1)— (A) shall commence during fiscal year 2011 for an initial 

term of 25 years; 

(B) may be renewed for an additional term of 25 years; 

and 

(C) shall specify in the terms of the lease an annual rental rate—

(i) which rate shall be increased by 3 percent per 

year on a cumulative basis for each 5-year period; and 

(ii) the adjustment of which in accordance with 

clause (i) shall be considered to satisfy any review requirement under part 162 of title 25, Code of Federal 

Regulations (or a successor regulation).

25 U.S.C. 415(h) 

Notwithstanding any other provision of law, any actual rental 

proceeds from the lease of land acquired under section 1 of Public 

Law 91–229 (25 U.S.C. 488) certified by the Secretary of the Interior 

shall be deemed—

(1) to constitute the rental value of that land; and 

(2) to satisfy the requirement for appraisal of that land. 

25 U.S.C. 415(i) 

(a) IN GENERAL.—The Assiniboine and Sioux Tribes of the Fort 

Peck Indian Reservation (referred to in this section as the ‘‘Tribes’’) 

may, with the approval of the Secretary of the Interior, enter into 

a lease or other temporary conveyance of water rights recognized 

under the Fort Peck-Montana Compact (Montana Code Annotated 

84–20–201) for the purpose of meeting the water needs of the Dry 

Prairie Rural Water Association, Incorporated (or any successor entity), in accordance with section 5 of the Fort Peck Reservation 

Rural Water System Act of 2000 (114 Stat. 1454). 

(b) CONDITIONS OF LEASE.—With respect to a lease or other temporary conveyance described in subsection (a)—

(1) the term of the lease or conveyance shall not exceed 100 

years; and 

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(2)(A) the lease or conveyance may be approved by the Secretary of the Interior without monetary compensation to the 

Tribes; and 

(B) the Secretary of the Interior shall not be subject to liability for any claim or cause of action relating to the compensation or consideration received by the Tribes under the lease or 

conveyance. 

(c) NO PERMANENT ALIENATION OF WATER.—Nothing in this section authorizes any permanent alienation of any water by the 

Tribes.

Æ