89–006 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–513 

FOUNTAINHEAD PROPERTY LAND TRANSFER ACT 

JUNE 28, 2010.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. RAHALL, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 1554] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 1554) to take certain property in McIntosh County, Oklahoma, into trust for the benefit of the Muscogee (Creek) Nation, 

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. SHORT TITLE. 

This Act may be cited as the ‘‘Fountainhead Property Land Transfer Act’’. 

SEC. 2. TRANSFER OF LAND; LAND INTO TRUST. 

(a) IN GENERAL.—Immediately after completion of the survey required under subsection (b), the receipt of consideration and costs required under subsection (c), and 

satisfaction of all terms specified by the Secretary and the Secretary of the Army 

under subsection (d), administrative jurisdiction of the Property shall be transferred 

from the Secretary of the Army to the Secretary and the Secretary shall take the 

Property into trust for the benefit of the Tribe. 

(b) SURVEY.—The exact acreage and legal description of the Property shall be determined by a survey satisfactory to the Secretary and the Secretary of the Army. 

(c) CONSIDERATION; COSTS.—The Tribe shall pay— 

(1) to the Secretary of the Army fair market value of the Property, as determined by the Secretary of the Army; and 

(2) all costs and administrative expenses associated with the transfer of administrative jurisdiction of the Property and taking the Property into trust pursuant to subsection (a), including costs of the survey provided for in subsection 

(b) and any environmental remediation. 

(d) OTHER TERMS AND CONDITIONS.—The transfer of administrative jurisdiction of 

the Property and taking the Property into trust shall be subject to such other terms 

and conditions as the Secretary and the Secretary of the Army consider appropriate 

to protect the interests of the United States, including reservation of flowage easeVerDate Mar 15 2010 03:35 Jun 29, 2010 Jkt 056099 PO 00000 Frm 00001 Fmt 6659 Sfmt 6621 E:\HR\OC\HR513.XXX HR513

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ments consistent with the Acquisition Guide Line for Flowage Easement for the 

Lake Eufaula project and other applicable policies for that project. 

(e) DEFINITIONS.—For the purposes of this section: 

(1) PROPERTY.—The term ‘‘Property’’ means, subject to valid existing rights, 

all right, title, and interest of the United States in and to the Federal land generally described as the approximately 18 acres of Federal land located in 

McIntosh County, Oklahoma, within the boundary of the Muscogee (Creek) Nation and located in Northwest Quarter of Section 3, Township 10 North, Range 

16 East, McIntosh County, Oklahoma, at Lake Eufaula. 

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

(3) TRIBE.—The term ‘‘Tribe’’ means the Muscogee (Creek) Nation. 

(f) GAMING.—Gaming pursuant to the Indian Gaming Regulatory Act (25 U.S.C. 

2701 et seq.) may not be conducted on the Property, except as provided under section 20(b)(1)(A) of the Indian Gaming Regulatory Act (25 U.S.C. 2719(b)(1)(A)), notwithstanding the exception contained in section 20(a)(2) of that Act (25 U.S.C. 

2719(a)(2)). 

PURPOSE OF THE BILL

The purpose of H.R. 1554 is to take certain property in McIntosh 

County, Oklahoma, into trust for the benefit of the Muscogee 

(Creek) Nation, and for other purposes. 

BACKGROUND AND NEED FOR LEGISLATION

The Muscogee (Creek) Nation has over 69,000 enrolled citizens 

and is headquartered in east-central Oklahoma. As part of their effort to create a resort hotel and casino near Lake Eufaula, the Nation purchased the Fountainhead Lodge and 48 surrounding acres 

through a foreclosure auction in 2005. This property included a 

188-room hotel, a recreational building, and some duplex cabins. A 

lease on 18 acres of land owned by the U.S. Army Corps of Engineers (Corps) came with the property. 

Once a survey of the purchased property was completed, it was 

determined that the recreational building was located entirely on 

the Corps’ land. In 2006, representatives of the Creek Nation met 

with the Corps to discuss development of the property. The Corps 

suggested that the Corps transfer ownership of the leased land to 

the Creek Nation to assist in its future development as a resort. 

Enactment of H.R. 1554, and approval of their recently filed 

trust application for the 48 acres purchased in 2005, would allow 

the Nation to move forward with their plans to build a destination 

hotel and casino near Lake Eufaula. The bill provides that provides 

that after completion of a survey, the receipt of consideration and 

costs and satisfaction of certain terms, the Secretary of the Army 

shall transfer administrative jurisdiction of certain property to the 

Secretary of the Interior, who shall take the property into trust for 

the benefit of the Nation. The legislation requires the Nation to pay 

fair market value for the property as well as all costs related to the 

transfer. This bill also provides that gaming may only be conducted 

on the property pursuant to section 20(b)(1)(A) of the Indian Gaming Regulatory Act. 

COMMITTEE ACTION

H.R. 1554 was introduced by Rep. Dan Boren (D–OK) on March 

17, 2009 and was referred to the Committee on Natural Resources. 

The Committee held a hearing on H.R. 1554 on April 21, 2010. Mr. 

George Skibine, Acting Principal Deputy Assistant Secretary for Indian Affairs, testified in support of this legislation but expressed 

concerns with the way the bill was drafted. 


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On June 16, 2010 the Committee met to consider H.R. 1554. Rep. 

Boren offered an amendment in the nature of a substitute that provides for the involvement of the Secretary of the Army in making 

certain decisions regarding the transfer of lands, which addressed 

the drafting concerns expressed by the Administration. The amendment in the nature of a substitute also clarifies that gaming is not 

allowed under Section 20(a)(2) of IGRA, known as the ‘‘Oklahoma 

exception.’’ The amendment in the nature of a substitute was 

agreed to by voice vote. H.R. 1554, as amended, was then 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 

Natural 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, spending authority, credit authority, or an increase or decrease in revenues or tax expenditures. 

3. General Performance Goals and Objectives. As required by 

clause 3(c)(4) of rule XIII, the general performance goal or objective 

of this bill is to take certain property in McIntosh County, Oklahoma, into trust for the benefit of the Muscogee (Creek) Nation, 

and for other purposes. 

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: 

H.R. 1554—Fountainhead Property Land Transfer Act 

H.R. 1554 would transfer 18 acres of land from the Army Corps 

of Engineers (the Corps) to the Department of the Interior (DOI) 

to be held in trust for the Muscogee Creek Nation. Based on information from the Corps, CBO estimates that implementing the legislation would increase offsetting receipts (a credit against direct 

spending) by about $2 million. 


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Under the bill, the Muscogee Creek Nation would pay fair market value to the Corps for the purchase of 18 acres of land in Oklahoma, which would be held in trust by DOI. Based on information 

from the Corps, CBO estimates that the value of the affected land 

is about $2 million. The bill also would require the tribe to pay all 

costs associated with transferring administrative jurisdiction of the 

land from the Corps to DOI. 

According to the Corps, the affected land does not currently generate any receipts and is not expected to be sold or generate receipts over the next 10 years. Therefore, CBO estimates that implementing the legislation would increase offsetting receipts by about 

$2 million. 

The Statutory Pay-As-You-Go Act of 2010 establishes budget reporting and enforcement procedures for legislation affecting direct 

spending or revenues. H.R. 1554 would increase offsetting receipts; 

therefore, pay-as-you-go procedures would apply. The net budgetary changes that are subject to pay-as-you-go procedures are 

shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1554, THE FOUNTAINHEAD PROPERTY LAND 

TRANSFER ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES 

ON JUNE 16, 2010 

By fiscal year, in millions of dollars— 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010– 

2015 

2010– 

2020 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-AsYou-Go Impact ... 0 ¥2 0 0 0 0 0 0 0 0 0 ¥2 ¥2 

H.R. 1554 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 bill 

would benefit the Muscogee tribe and any costs to the tribe would 

be incurred voluntarily. 

The CBO staff contact for this estimate is Jeff LaFave. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates. 

EARMARK STATEMENT

H.R. 1554 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

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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