S. HRG. 107–268

EQUITABLE COMPENSATION ACT

HEARING

BEFORE THE

COMMITTEE ON INDIAN AFFAIRS

UNITED STATES SENATE

ONE HUNDRED SEVENTH CONGRESS

FIRST SESSION

ON

FEDERAL OBLIGATION TO EQUITABLE COMPENSATION TO THE FORT

BERTHOLD AND STANDING ROCK RESERVATIONS

AUGUST 30, 2001

NEW TOWN, ND

(
EQUITABLE COMPENSATION ACT
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77–528 PDF 2001

S. HRG. 107–268

EQUITABLE COMPENSATION ACT

HEARING

BEFORE THE

COMMITTEE ON INDIAN AFFAIRS

UNITED STATES SENATE

ONE HUNDRED SEVENTH CONGRESS

FIRST SESSION

ON

FEDERAL OBLIGATION TO EQUITABLE COMPENSATION TO THE FORT

BERTHOLD AND STANDING ROCK RESERVATIONS

AUGUST 30, 2001

NEW TOWN, ND

(
COMMITTEE ON INDIAN AFFAIRS

DANIEL K. INOUYE, Hawaii, Chairman

BEN NIGHTHORSE CAMPBELL, Colorado, Vice Chairman

FRANK MURKOWSKI, Alaska

JOHN McCAIN, Arizona,

PETE V. DOMENICI, New Mexico

CRAIG THOMAS, Wyoming

ORRIN G. HATCH, Utah

JAMES M. INHOFE, Oklahoma

KENT CONRAD, North Dakota

HARRY REID, Nevada

DANIEL K. AKAKA, Hawaii

PAUL WELLSTONE, Minnesota

BYRON L. DORGAN, North Dakota

TIM JOHNSON, South Dakota

MARIA CANTWELL, Washington

PATRICIA M. ZELL, Majority Staff Director/Chief Counsel

PAUL MOOREHEAD, Minority Staff Director/Chief Counsel

(II)
(III)

C O N T E N T S

Page

Statements:

Baker, Biron ...................................................................................................... 30

Baker, Frederick, enrolled member, Three Affiliated Tribes ........................ 26

Burr, Joyce, educational consultant, Three Affiliated Tribes ....................... 32

Conrad, Hon. Kent, U.S. Senator from North Dakota .................................. 2

Danks, John H. member, Mandan, Hidatsa, Arikara Elder Organization .. 24

Fredericks, John, member, Mandan, Hidatsa, Arikara Tribe ....................... 21

Hall, Tex, chairman, Mandan, Hidatsa, and Arikara Nation (with attachments)................................................................................................................. 2, 5

Hudson, Marilyn, member, Three Affiliated Tribes ...................................... 31

Jones, Cora, director, Great Plains Region, BIA ............................................ 15

Mandan, Tony, member, Three Affiliated Tribes ............................................. 1, 35

APPENDIX

Prepared statements:

Baker, Frederick ............................................................................................... 39

Burr, Joyce ........................................................................................................ 159

Danks, John H. (with attachments) ................................................................ 118

Fredericks, John ‘‘Buzz’’ elder (with attachment) .......................................... 114

Hall, Tex (with attachments) ........................................................................... 47

Hudson, Marilyn ............................................................................................... 159

Jones, Cora ........................................................................................................ 39

Mandan, Tony ................................................................................................... 41

Old Dog Cross, Phyllis ..................................................................................... 44

Packineau, Elise ............................................................................................... 42

Walker, Tillie, enrolled member, Mandan Tribe (with attachments) .......... 165

Young Bird, Bernadine, administrator of the Three Affiliated Tribes Education Department ........................................................................................ 43

Additional material submitted for the record:

Letters ............................................................................................................... 169

Final Report of the Garrison Unit, May 23, 1986 .......................................... 184

Public Voucher For Purchases and Services other than Personal, (with

attachments) .................................................................................................. 283

Tribal Resolutions Approving Expenditures from Economic Recovery

Fund, Accompanied by Approval of Fund Transfer Forms and Letters

of Approval from BIA, 1995–2001 For the Three Affiliated Tribes .......... 405

(1)

EQUITABLE COMPENSATION ACT

FRIDAY, AUGUST 30, 2001

U.S. SENATE, COMMITTEE ON INDIAN AFFAIRS, New Town, ND.

The committee met, pursuant to notice, at 9:30 a.m. at the Four

Bears Casino Events Center, New Town, ND, Hon. Kent Conrad

(acting chairman of the committee) presiding.

Present: Senator Conrad.

Mr. RED FOX. We’d like to open the ceremony by having VFW

Post 9061, American Legion Posts 253 and 271 posting the colors.

[Posting of colors.]

Mr. RED FOX. Thank you. Now I’d like to ask one of our respected tribal elders to say a prayer. Tony Mandan.

STATEMENT OF TONY MANDAN, TRIBAL ELDER

Mr. MANDAN. Thank you. I’d like to welcome Senator Conrad

today. We’re going to be talking about our sacred land that we had

lost along the Missouri River, and so that our people—they want

to sell that land—they were forced to sell it. So our Senator here

represents all of us. He has taken an oath to represent all of us,

and it’s very important. What you say you must carry out because

you might—that’s—we understand that we have to through the

bible.

So at this time I would like to mention that a lot of our warriors

that were protecting our lands are there underneath the water.

Some of them were never reclaimed, and others, like my grandfather, lost his life up there on the Canadian border protecting our

territory, and he never was reclaimed.

So I’d like to say these before I say my prayer, and I thank you

for the attention, and I want to say that in my native tongue so

that—I don’t know how many of you speak my native tongue anymore, but I’m going to say it in my native tongue.

[Prayer was said.]

Mr. RED FOX. Thank you, Mr. Mandan. Moving along very quickly here, we realize we’re pressed for time, and we can never—we

must always take time I think to appreciate our country and our

God.

At this time we’d like to introduce the councilmen and the segments they represent, not only the new segments, but we’ll talk

about Little Shell, Lucky Mound, Independence, Elbowoods, and

any other ones that I may have forgotten. I’ll start up front here

with Mark Fox from the Parshall area right now. Mark, say hello.
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Mr. FOX. Hello, hello.

Mr. RED FOX. Thank you. Marcus Wells, Jr., from the Four Bears

area. Randy Phelan from the Mandaree area. On the way up front

here is Austin Gillette from the White Shield area and Malcolm

Wolf from the New Town area, and we’ll save for last Mr. Hall because Mr. Hall will have a few comments and then will introduce

the Senator to us. Ladies and gentlemen, Chairman Hall.

STATEMENT OF TEX HALL, CHAIRMAN, MANDAN, HIDATSA

AND ARIKARA NATION

Mr. HALL. I hope everybody can hear me all right. Good morning,

Senator Conrad, and the staff, Lisa Linnell, good morning. Good

morning, everybody, and welcome to the hearing for the Equitable

Compensation Act, and I just want to thank all the staff for putting

together our entertainment center, our facility today.

The Elders Organization has put together some of their pictures,

and they have a table set up over there by Phyllis Cross, and we

also—next to it we have the Nishu—the original community before

the flood. So you’ll see that, and then going over there you’ll see

a power-point that’s been prepared by the businesses that are here,

and, of course, you’ll see the 1948 picture that’s been shown

throughout history about the signing by the council in 1948 of our

bottom lands and the traumatic and emotional picture that we still

honor and respect today, and thank all the veterans and the drum

group and thank Tony Mandan for that very solemn prayer for

opening today.

With that I’d like to introduce and turn it over to our Senator,

Senator Kent Conrad.

STATEMENT OF HON. KENT CONRAD, U.S. SENATOR FROM

NORTH DAKOTA

Senator CONRAD. Thank you very much, Chairman Hall, and

thank all of you for being here. This is an honor for me to be here

chairing this hearing. This is an official hearing before the Senate

Committee on Indian Affairs authorized specifically by the chairman, Senator Inouye, of Hawaii.

I am now the second ranking member of the Senate Committee

on Indian Affairs, and so this is a special privilege for me to have

the chance to be here today to talk about legislation that is critically important to this tribe and critically important to me. I am

especially pleased to be here to talk about the Three Affiliated

Tribes and Standing Rock Sioux Tribe Equitable Compensation

Act, known more familiarly as the JTAC Legislation.

As the principal sponsor of that legislation, I have a special interest in monitoring its progress. The Equitable Compensation Act

attempts to right the wrong that was perpetrated upon the people

of the Fort Berthold and Standing Rock Reservations when the

Federal Government flooded these reservations during construction

of the two mainstem dams on the upper Missouri River.

When the Garrison Dam was constructed, thousands of acres of

tribal land were lost as were bridges, homes, hospitals and roads.

When Fort Berthold’s land was taken in 1949, the Three Affiliated

Tribes lost one-quarter of the reservation’s land base, and much of

that land was the very best land that the tribe had. There were
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325 families—80 percent of the tribal membership—that were forcibly relocated; 94 percent of the agricultural lands of these farmers

and ranchers were lost. The tribal headquarters at Elbowoods was

completely flooded.

The 1992 Equitable Compensation Act was the result of recommendations made by two reports. The first was entitled ‘‘The

Final Report of the Garrison Unit Joint Tribal Advisory Committee.’’ That’s where JTAC comes from, Joint Tribal Advisory Committee, a special committee created by the former Secretary of the

Interior, Mr. Hodell.

The 1986 JTAC report acknowledged the Federal Government’s

obligation to compensate the tribes, a legal obligation to compensate the tribes. It came up with a range of money owed to the

tribe of $178 million to $412 million.

The second report, which was conducted by the general accounting office, analyzed the JTAC report and concluded that the methodology was flawed. They concluded that the tribe was owed anywhere from $52 million to $149 million.

We were able to secure in the legislation that I introduced the

high end of the general accounting office report that analyzed what

was owed the Tribe. What we were able to successfully get was the

$149 million. I am especially proud of the work we did in passing

the JTAC bill. It took me 4 years and literally hundreds of hours

of negotiating and the persuasion of my colleagues in the Senate

and the House of Representatives to secure this victory.

When I started the effort, I was told there was no way that we

could possibly succeed. Many of you who are here in this room remember that. We were at meetings in which we were told over and

over there is no way we will ever get this kind of money, and that’s

because those were the days of massive Federal budget deficits,

and all new spending was routinely rejected by the appropriations

committee.

It was only when I hit upon the idea of funding the legislation

outside of the 5-year Federal budget window and in a way that

avoided the appropriations committee that we had any hope for

success.

As you know, the bill creating the $149-million trust fund provided that the interest on the principal would accrue for 5 years

before being available for expenditure. It was that device that allowed us to pass the legislation and secure the funds, and it has

served as the model for all succeeding settlement funds that occurred since, but I might say to you all of the new settlement funds

now take 10 years before any of the money is available because the

Federal budget window is no longer 5 years, it’s 10 years.

When we achieved that success, we all knew what was intended.

The compensation legislation was designed to allow the Three Affiliated Tribes the opportunity to rebuild and regain financial independence. It provides the resources for the general health and welfare of the tribe and its members.

While it is not everything that we wanted, it has the potential

to make a big difference in the future of this tribe and its people.

The interest on the money in the Fort Berthold Equitable Compensation Fund became available for use on October 1, 1997, nearly

4 years ago.
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I believe now is a good time to look and to assess how those

funds are being used. Also at today’s hearings we’ll hear from a

panel about the infrastructure needs of the tribe.

The legislative history of this bill also acknowledges that the

Three Affiliated Tribes are entitled to replacement of infrastructure

lost by the creation of the Garrison Dam and Lake Sakakawea, including health care facilities, a bridge, and school facilities.

You will remember that just last year we were successful in getting the bridge funded at a level of $35 million. It was one of only

two bridges that was approved outside of the Federal Highway Program last year. Only two bridges in the entire country were funded, and I’m especially proud that our bridge here was one of the

two.

[Applause.]

Senator CONRAD. That, too, was a remarkable accomplishment, a

testimony to the teamwork of Senator Dorgan, Congressman Pomeroy, and my office working with your tribal leadership. I think

your tribal leadership can tell you it was the Perils of Pauline getting that $35 million approved outside of the normal highway bill.

Typically no bridges, none, are approved outside of the normal legislation of the Federal Highway bill.

And last year we were also able to get funded the Dakota Water

Resources Act, this after nearly 2 decades of work. It is perhaps my

proudest accomplishment as a U.S. Senator representing North Dakota. That legislation provides $600 millions to North Dakota, including $200 million of Indian MRI water projects.

Those examples of the bridge funding and the funding for water

projects are examples of how we can keep the promise that was

made to this reservation and this State by normal appropriations

bills in addition to the funding that we secured through the JTAC

Legislation.

I want to say today that I thank Chairman Tex Hall, the tribal

business council, and the staff of the tribe for helping to organize

this hearing. I would also like to thank Cora Jones, the Great

Plains director of the Bureau of Indian Affairs, for testifying here

today.

The U.S. Department of the Interior is charged with approving

the plans for the use of these funds. So I believe the presence of

Ms. Jones and her testimony today will be helpful in giving a complete picture of this process.

Finally, I would like to remind everyone here that this is an official hearing of the U.S. Senate, and the rules of the U.S. Senate

will apply. Although we only have a limited number of witnesses,

additional testimony can be submitted for the hearing record up to

14 days following this hearing. Those who would like to submit testimony for the record can do so by sending it to my office no later

than September 13, 2001. So let me just repeat that. The record

will remain open, the official record, until September 13, 2001.

I again want to thank the tribal leadership, Chairman Tex Hall,

the council, all of its members. I’ve worked closely with them, not

only on the bridge project but Dakota Water Resources Act over

many years and certainly the previous tribal leadership on the

JTAC Legislation.
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I think back at how people told us it would never happen. I remember going to the first meeting of the Senate Energy Committee

that had to approve this legislation and being told by the chairman

this can never pass because of the budget deficits, and yet we

found a way, a novel way, a way no one had ever figured out before

and has allowed us to succeed, and again last year when we got

the bridge funded, one of only two in the country, and again we

were told we had little chance, and Dakota Water Resources Act,

when again we were told after 20 years of effort you can’t possibly

hope to succeed.

I think we’ve proven the skeptics wrong, and it’s happened because we worked together. There is a lesson in this for all of us because working together our efforts are always going to be more successful than if we work separately and apart. That should be one

of the lessons we learn from this hearing today.

Again, I want to thank Chairman Hall, the members of the council and the elders who have given us such good advice and in many

cases given me such good advice that have helped us to be successful, and I suspect some of those prayers that we said over the many

meetings that we held also may have been a secret to our success.

With that, I want to call on Chairman Hall for his testimony and

to again thank all of you who are in the audience for being here

and for listening patiently. Chairman Hall.

STATEMENT OF TEX HALL, CHAIRMAN, MANDAN, HIDATSA

AND ARIKARA NATION

Mr. HALL. Thank you, Senator Conrad. Dosha. Hello and good

morning to Senator Conrad and also to Senator Inouye. We thank

the chairman of the committee and yourself for allowing us this

very important—as I mentioned earlier, a sacred day for the members of the Mandan, Hidatsa and Arikara Nation, and on behalf of

the tribal business council that we have here I’m very happy to

present testimony on the 1992 Equitable Compensation Act.

Today marks an historic occasion as the U.S. Senate holds an official hearing on the Fort Berthold Indian Reservation just 3 weeks

in advance of the 150th anniversary of the signing of the 1851 Fort

Laramie Treaty and almost 200 years after the commencement of

the Lewis and Clark expedition, whose bicentennial will be celebrated starting in 2003.

This hearing also marks another milestone not nearly so historic

but certainly one of the most devastating events that happened to

our people, the completion of the Garrison Dam across the Missouri

River and the flooding of what was left of our ancestral homelands

along the river, the flooding of 156,000 acres that represented the

largest part, and as you mentioned, Senator, 80 percent of our

members lived there on the bottom lands.

This damage, as many of our elders will testify, can never be

fully compensated by money and will never be fully healed, but

thanks to your efforts, Senator, we are beginning to repair some of

those social and economic damages caused by that flood.

To name a few: The 1992 Equitable Compensation Act and the

establishment of a $149.2-million fund. This was unprecedented.

Through your budget strategies and through your skills you were

able to achieve something that all of your comrades and your fellow
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senators said that could not be done. It was through this creative

legislation that many other of your colleagues and senators have

used in similar bills to accomplish the establishment of the $149.2-

million fund, and so we owe singly to you perhaps the greatest attributes to successfully passing of this very historic legislation that

is now beginning to repair and heal the members of our nation.

We also want to recognize you, Senator, for as you mentioned,

the 2000—November 2000, the $35 million for the Four Bears

Bridge, and again your persistent and creative budgeting effort to

achieve something that again your comrades and your fellow senators said could not happen, and it did.

And then, finally, also the November 2000 passage of the $70-

million Dakota Water Resources Act authorizing this for our water

distribution, and again your fellow Senators and comrades said

that this could not be done, and again through your efforts and

your budget strategies you were able to accomplish this, and maybe

that’s why you’re a U.S. Budget Committee chairman today, and

the United States has entrusted that to you, and we’re fortunate

to have you in North Dakota as our Senator to help accomplish

these three very historic and very large multi-million-dollar pieces

of legislation, and, again, thank you for those efforts.

[Applause.]

Mr. HALL. It would also be appropriate to also thank the late

Senator Quentin Burdick. As you recognized, our elders today were

also sitting on this council and worked with the late Senator for

his tireless efforts in this regard. Without the efforts of yourself,

Senator Burdick, Senator Dorgan, and Congressman Pomeroy, we

would not have the Equitable Compensation Act, and there would

have been no followup to the efforts of the JTAC or the Joint Tribal

Advisory Committee to the Garrison Diversion Unit.

We also to thank you for your efforts regarding return—beginning to return to us some of the lands along the lake shore, the

so-called excess lands, and your willingness to want to work with

us on this very important issue.

And, finally, we want to thank you for your efforts regarding the

MRI. It’s through the million dollars of appropriations through our

MRI that we’re beginning to see quality treated water in the communities of White Shield, Twin Buttes, Mandaree, and Four Bears

for these new water treatment plants, and we know that getting

enough funds for our water project needs is a tough job, given how

the budget surpluses seem to slip away, but we also know that

Senator Conrad will do his utmost to secure the funds needed to

really begin to fulfill the promise of a good water system made to

us more than two generations ago.

And we know that these efforts are continuing, and we know

that our Congressional delegation will not stop working for us as

we make the efforts needed to supply our remaining needs.

This hearing is really about all those things that Congress has

done and the things that have not yet quite been accomplished. It

is about, number one, how the compensation provided to the people

of our nation for the flooding of our lands has been used by the

MHA nation; and, number two, whether or not this compensation

is really quite adequate to meet, as you mentioned, the need to
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complete the infrastructure development because of the flooding of

Lake Sakakawea.

What I want to talk about—I want to emphasize several matters

today, Senator Conrad. These matters are partly covered by the

written statement and accompanying resolutions that we have submitted for the record that have been approved by our Tribal Business Council that authorize expenditures from the permanent Economic Recovery Fund created by the tribe—the Three Affiliated

Tribes, the Standing Rock Sioux Tribe Equitable Compensation

Act.

We will be submitting a corrected written statement for the

record. Further, we will be submitting for the record a final corrected statement that incorporates my oral statements here today.

Funds used for purposes allowed in the act. First of all, I want

to emphasize that every dollar of income that we’ve received from

the Economic Recovery Fund has been used for the purposes and

for programs authorized by the 1992 Three Affiliated Tribes and

Standing Rock Sioux Tribe Equitable Compensation Act.

Not only have we spent the funds for purposes allowed by the

act, we have also gone much, much further. Senator, as you will

hear over and over again today, a lot of what we have done with

the income from the Economic Recovery Fund is to supplement the

Federal Government’s fundamental trust and treaty obligations to

our people. This is not right, but we are forced to use some of the

funds, and our efforts to achieve economic self-sufficiency, which is

really the purpose of the Economic Recovery Fund, are substantially delayed.

The report accompanied by the Equitable Compensation Act

issued in 1992 states on page 191:

Section 3505 of the act makes clear that the payments made pursuant to this Act

shall not result in the denial or reduction of any such services to the tribes. For

example, the Three Affiliated Tribes have budget authority available for water systems development, and given the health-threatening quality of domestic water on

the reservation, the committee is hopeful that additional appropriations for upgrading these water systems will be made available in future years.

But, Senator, as I will describe in greater detail shortly, we have

ended up using some of our Economic Recovery Fund income for

exactly these purposes over and over and over again.

The funds we have received to date do not replace lost infrastructure. We still need additional dollars to replace the lost infrastructure.

Second, it is important to recognize that the Equitable Compensation Act only provided a part what was promised to us by the

United States when the Garrison Dam was built.

What we were promised when the dam was built. When the dam

was built, the Army Corps of Engineers promised an awful lot.

Some of our elders will testify shortly as to those promises. The

Army Corps promised infrastructure replacement, including a new

hospital, new schools, adequate secondary and access roads, new

community centers, a new bridge, a new rural water delivery system for all of our members on the Reservation, and access to the

electricity generated by the new dam, among other things.

Well, Senator, of all these things the only things that are only

partly completed are the new community buildings in some of our

communities, but New Town, our largest community, does not have
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one yet, which is why in part we are meeting in our new multipurpose facility at the Casino here today. Most of these community

centers were built within the past five years, nearly 45 years after

the promises were made.

We have some water treatment plants, as I mentioned previously, that serve the people living within our reservation communities but which do not yet serve our rural outlying citizens. Most

of these were upgraded or fully constructed in the past 10 years,

40 to 45 years after the promises were made.

We do not yet have adequate healthcare facilities, and we do not

begin to have adequate educational resources for our children and

for our adults.

Our secondary and access roads are still woefully inadequate,

and our rural water system is still only on the drawing board.

Of all the things on the list as recommended by the JTAC original committee—and we have some of our—we have members of our

1986—I don’t know if we have any of the membership here today.

Do we have any members—I know like Phyllis Cross was on the

1986 original JTAC Committee. Is she in audience? Are there any

other members of the 1986 original JTAC Committee? I want to acknowledge them, and I also want to acknowledge—oh, and John

Charger? Is John Charger here? There is one of the members, as

well. John, if you would please stand up and be recognized from

the 1986 original JTAC Committee.

[Applause.]

Mr. HALL. I’d also like to take the time, Senator Conrad, to recognize the 1996 JTAC Committee. Would you please rise? Tony

Walker I see here, Phyllis Cross. All of you, please stand up. I want

to recognize the 1996 JTAC Committee. They did a very important—a good 21⁄2 years of research and documentation of the needs,

but of all the things that the JTAC Committee completed, the one

thing we do not have right now is—we hope that we have is adequate funds for the new bridge, and we thank the efforts of you,

Senator Conrad, and the entire congressional delegation, but the

number one priority that they have identified is healthcare, and I

will cover that a little bit later on.

First of all, let’s look at how the funds we have received to date

have been spent since the act was passed in 1997. Under the act,

the funds can be used for education, social welfare, economic development, and other government programs.

This Equitable Compensation Act initially began in 1949 as appropriated and authorized by Congress in the approximate amount

of $12.5 million dollars. Almost 50 years later the tribe received the

first installment of interest on October 1, 1997, from the permanent fund of $149.2 million.

As we have used these funds, over 100 new jobs have been created. Many of our young people have gone on to college and graduate school, and we have supplemented many of the Federal programs. I’d like to take just a few seconds to recognize some of the

JTAC educational dollars, Senator Conrad. I’d like to recognize the

following individuals who will receive their Master’s degree from

use of the JTAC funds: Spencer Wilkinson, Jr., cogeneral manager

of the Four Bears Casino; Rusty Mason, cogeneral manager of Four

Bears Casino; Richard Beard, if you’d please stand, Richard; Patti
9

Jo Thomas; and Todd Hall, if you’d also stand. These are recent

Master’s degree graduates.

We’d also like to recognize these following individuals for currently taking their Master’s degree: Viola Wells; Marcus Wells, Jr.,

if you’d please rise; Rose Crow Flies High; Roger Baker; Orian

Baker; Iris and Alfred Obiss; and Mike Young Bird.

The following individuals, if you’d please rise, are currently participating in the Bachelor’s degree program at the University of

Mary: Clover Little Soldier, Judy Elseth, Terry Young Bird, Lori

Alberts, Stacey Driver, Carmen Fox, Margaret Pretends Eagle,

Claudia Mason, and Kay Wilkinson.

As you can see, Senator, these are the product of the educational

scholarship programs, and the Bachelor’s degree programs—the

Bureau of Indian Affairs currently allocates about $1,900, and the

average tuition costs are close to $5,000. So there’s a huge unmet

need, and the JTAC dollars are used to supplement that unmet

need.

[Applause.]

Mr. HALL. And, Senator Conrad, we have also set up the uses of

the Economic Recovery Fund to—on economic development and

tried to match dollar for dollar the expenditures made for economic

development and social welfare. These two purposes go hand in

hand. Social welfare dollars helps heal the wounds of the flood, and

economic development dollars helps secure our future.

We’ve also established a general plan for the expenditure of the

funds, and each year as we begin our budget cycle, we place funds

into the categories listed in our overall general spending plan so

that we can fulfill the purposes of the Equitable Compensation Act.

Let’s look at some of those actual uses. Elder housing. Uses of

the funds have included construction costs for 12 homes for the

most needy elders, and these elders are still living in their homes

that were the original 1948 before the flood that were moved from

the original home sites, and this is approximately 550,000.

The use of the funds have also created an elder organization. For

the past 2 years they’ve been diligently working on organizing themselves and creating a budget of $2 million appropriated from

the JTAC funds for the past 2 years to look at an overall strategy

and plan for their well-being, and health care again is their number one priority, and they will testify to that a short time later. Mandaree Enterprises, $800,000 to expand its capabilities, and I

might add they are a two-time SBA minority business of the year

and are trying to secure a number of contracts.

Twin Buttes Custom Homes. The income from the Economic Recovery Fund secured the bonds that built this plant and now employs more than 50 people, and these funds are also used to pay

off those bonds while the company reaches maximum profitability. Road Equipment. Over $700,000 in road equipment was also purchased because there was never adequate access roads constructed

after the flood. These are funds that pay for the costs that the Government should have paid for after the flood. These are funds that

should be going for real economic development that will provide the

kind of self-sufficiency we enjoyed before the flood.

We’ve also created a management and information services department—as I mentioned, Richard Beard, over on the slides over
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there is showing some of our businesses—with the potential for a

reservation-wide Internet access system that will help us close the

gap that is known as the digital divide between those who have

high-speed access and those who don’t, but our system is hardly complete. We need literally more than $4 million to completely provide for high-speed access to all of our members.

This will help our members with health care, as well as the

Internet has many sites, including the sites—and I know you’re

very much aware of this, Senator Conrad, in your support for rural

telemedicine and health—of the National Institute of Health that

provide critical information on diabetes prevention. This information can greatly help our people avoid the scourge of this disease

which Carl Whitman, a former chairman, testified about in 1992.

This is the least we can provide for our members, who, after all,

before the flood were a closely-knit community who had easy access

to each other and the resources the tribe and the BIA could provide.

Under health care we created a tribal health department that,

among other things, provides approximately 500,000 annually to

supplement the meager IHS budget for our Minne Tohe Clinic, that

provides for an administrator whose responsibility is, among other

things, the development of a comprehensive health care plan for all

of our members.

We’ve also created a central planning office of $500,000. We’ve

created this office that has greatly facilitated our ability to obtain

grants and other sources of funding and plans for economic development and for the rebuilding of our nation, including grants for

our community centers, fire suppression and prevention equipment,

cultural sensitivity design for the new Four Bears Bridge, a master

plan for the Four Bears Peninsula, westward expansion as far as

5 miles westward of the new bridge. This will allow comprehensive

public input for the citizens most affected as the central planning

office holds public meetings throughout all the communities

throughout the Fort Berthold Indian Reservation.

A film department was established. 200,000 has been allocated

for a feature film and other documentaries illustrating the history

and culture of our people. Already we have a facility in Parshall

which will be able to mentor our young people for work in the film

industry and in our film department.

We also allocated 400,000 for the tourism department, which has

been allocated to prepare for the Lewis and Clark bicentennial, secure a signature event, which Fort Berthold is the only reservation

in the United States to have one of the signature events in 2006,

and to develop a strategic tourism plan.

We’ve also utilized 400,000 for our tribal education department,

which has been allocated to allow the tribe to take control of its

educational development and develop a new educational code designed to increase our achievement levels and preserve our language and our culture.

We also allocated $750,000 for the tribal administration expansion to improve our tribal headquarters. This will allow better access by our members to the activities of our tribal government and

will allow our tribal employees to enjoy the comforts of a modern

tribal facility that will allow us to greatly improve all of our serv-
11

ices to our members, including such services as economic development for all of our 11,000 members.

Under additional housing we have allocated 750,000 for the construction of 36 apartment units at the Four Bears community,

supplementing the inadequate funds provided by HUD for much

needed new housing on the reservation, which is in effect at least

1,000 units that we are in need of, and once again, we are providing additional funds to satisfy what we feel are government trust

obligations to our people, not just because of the flood, but treaty

and trust obligations that have been owed to us since the 1851 Fort

Laramie Treaty.

Under indirect costs for Federal programs we have spent more

than 400,000 per year supplementing our indirect cost needs, and

these are administrative costs that should be provided under various self-determination contracts held by the tribe but which are

not paid to us, even though our self-determination contracts call for

these amounts to be paid annually. And once again, Senator

Conrad, we are using the funds to satisfy trust obligations.

In regards to leveraging of our JTAC funds the interest from the

Economic Recovery Fund has also been leveraged in a number of

ways, and I might add it’s because of the Economic Recovery Fund

that we are at AAA bond rating, which helps you, as you know,

Senator Conrad, get the lowest possible interest rate.

The first project that we leveraged our funds is this expansion

of this multi-purpose facility you are sitting in now that is open to

the public and a new hotel and a swimming pool at the Four Bears

Casino and Lodge.

The second thing we were able to do is leverage our funds for the

building of Twin Buttes Custom Homes, which we are now looking—we built a new alcoholic treatment center, we built 12 elderly

units, we’ve secured contracts with the Standing Rock Sioux Tribe,

also with the IHS and the BIA with contracts down at the Cheyenne River Sioux Tribe and are now currently working on a multimillion-dollar enterprise—a bond to build 300 homes for our reservation, and hopefully we can help tribes, such as the Turtle

Mountain Chippewa Tribe, who are having their own problems as

you are very much aware of. That’s the capability of our Twin

Buttes Custom Homes plan that we do have.

And, last, we’re looking at an additional casino expansion by

leveraging our funds that we are set to approve by our tribal council to complete our expansion efforts, including a new marina and

getting the peninsula ready for the signature event and the Lewis

and Clark bicentennial.

But, again, it’s because of the JTAC funding that we’re able to

get the AAA bonding and get the lowest possible interest rates,

thereby saving literally $1 million over the entire usage of the loan.

We also created an investment fund. We will be creating an investment fund of up to $30 million. This fund described in my written testimony is also subject to an investment cap of 25 percent so

that all of the fund will not be used at once to secure other economic development duties of the tribe. We intend for this fund to

be a permanent feature, the income from which will be available

to many future generations of our members.
12

Experience will guide us to use the income from the Economic

Recovery Fund more efficiently and more wisely as the years go by,

Senator.

For us economic development is a way of achieving self-sufficiency, to get where we were before the Garrison Dam flood. But

economic self-sufficiency is not completed overnight, as you know,

even with the income from the Economic Recovery Fund. And so

while we have begun to make progress in creating economic recovery and economic self-sufficiency, we have a long way to go.

And I could go on and on, Senator Conrad, but I think you can

see from what I have talked about and what is listed in our resolutions that have been submitted for the record that the funds are

being spent for the purposes intended by the act.

So what do we still need? As I stated earlier, there are a large

number of unfulfilled JTAC commitments. A health care facility.

We are currently putting together, as you can see on the conceptual

drawing, a 24 ambulatory care facility. This facility could take care

of the many urgent health care needs that will be testified by Fred

Baker a little bit later on, and this facility is extremely important

because of the flood, because of the separation of the communities

that was mentioned earlier, and the distance around is very critical

to the well-being of our members.

The facility’s extremely important because also the number of enrolled members who reside on the Reservation has nearly doubled

as shown by the 2000 Census.

We know that a full-scale hospital is not possible, but describing

such problems as the 24-hour on-call situations where a physician

can only refer patients to another clinic that is not open 24 hours

is simply not acceptable to our people in the 21st Century, 50 years

after a new hospital was promised us.

And each year, Senator Conrad, we could spend every dollar of

income from the Economic Recovery Fund and still not satisfy the

health care needs of our people. This fact alone is a major inhibitor

of effective long-term economic growth and self-sufficiency that

causes tremendous loss and productive years of life for our members.

Under education, as we will testify, our achievement levels in

education are still behind the national average and the statewide

averages. Dr. Joyce Burr has done significant research in this regard, and also Holly Echo Hawk’s study of one of our communities

shows that we are suffering from some of the symptoms of a posttraumatic stress disorder caused by the dislocations of our people,

not just once but many times over the past 150 years, including

perhaps the unkindest relocation of all, and that is the Garrison

Dam. And at least a third of our people—of our students, I should

say, are affected by this.

A central dormitory high school, which will employ a therapeutic

model has been identified by research as one of the best ways to

change the statistics, but we cannot do this under the present economic development income.

We need a facility that will allow those that have been most affected by the dislocation to have a chance to improve their lives.

And finally, Senator, on the irrigation, we need authorization

and appropriation of funds for irrigation. Over 15,000 acres were
13

authorized by the 1986 Reformulation Act, but there are no funds

for these irrigation acres. The 60 million originally authorized was

folded into the authorization by the Equitable Compensation Act,

yet no funds of that authorization were ever actually appropriated

or included in the final funding of the Permanent Economic Recovery Fund.

And food sources were critical for our culture and survival, and

after all, we provided food for Lewis and Clark the entire time they

were with us from our lush gardens that produced corn, squash,

beans, and many other vegetables in the rich soils of the

riverbottom lands.

We literally had tens of thousands of acres under cultivation in

1949 when the floods started.

[Prepared statement of Mr. Hall appears in appendix.]

Senator CONRAD. Let me just stop you right there, and one of the

things that I really think is important, a point that we make here

today, is that we are—according to the legislation we’re owed $60

million that we’ve never gotten. We had $149 million, and we got

that. We had $149 million in the basic fund, but in addition to that

we were specifically promised in this legislation $6 million a year

for 10 years, and that was to be the fund for the irrigation on the

reservation. Now separately we have the Dakota Water Resources

Act and we understand that, but it’s very clear in the legislation.

We’re owed $60 million. That’s due and owing today. Is that your

reading?

Mr. HALL. Yes; it is, Senator Conrad.

Mr. GILLETTE. Plus interest.

Senator CONRAD. And Austin points out we’re owed the interest

on that now, too. I think that would be a fair—that would be a fair

conclusion. We really—we’re owed $60 million plus the interest on

that money that has never been paid over. That’s a lot of money,

and it’s clearly owed to this tribe by the Federal Government, I believe.

Mr. HALL. Thank you very much for pointing that out in the legislation for us, Senator Conrad, and I hope my attorney knows

where to look for that—or our attorney and the legal department.

Senator CONRAD. Page 192.

Mr. HALL. Thank you very much for that help. We’ll address that

to Tom Disselhorst.

Those acreages have not been deauthorized, but no money has

been authorized for their cultivation. We have a number of projects

that could use those irrigated acres to produce barley, oats, corn,

alfalfa, and hay for a feedlot and many other purposes, and currently we are looking at a slaughter plant on the east side of the

reservation to take advantage of the—acres in the Lucky Mound

area by Parshall and White Shield.

And in conclusion, Senator Conrad, the Economic Recovery Fund

again is a good start for us, and it’s done great things for us, and

again we want to thank you for all your efforts in this regard, but

I want to emphasize that still many promises made to us are not

quite fulfilled yet.

We need to work hard to get adequate appropriations each year

to fulfill the promises of the Dakota Water Resources Act, and we

need to work toward obtaining the funds needed to replace the in-
14

frastructure lost to us 50 years ago and also the irrigation funding

that you’ve pointed out, over $60 million, and these are still

unfulfilled promises to our people, and we should not rest until

these promises are finally kept.

And, again, we want to thank you for all your efforts, Senator.

We look forward to spending some time with you today to show you

all of the projects that we have done, and I would like to say that

we’d like to submit additional comments, and I will be happy later

on to answer the questions that you have.

Masehgedatz. Thank you.

Senator CONRAD. Thank you very much, and as we indicated,

your full written testimony will be made part of the official record

of the Committee on Indian Affairs.

Before we miss this point, I think it’s very important to know

that this is not money that is a gift. This is not money that’s a

handout. This is money that is owed by the Federal Government.

When the land was taken from this tribe, promises were made, and

during the Reagan administration the then Secretary of the Interior appointed a special committee to look into the legal obligation—legal obligation of the Federal Government to the affected

tribes.

They concluded that the Federal Government owed this money to

the tribes, and if the tribes were to bring suit in the Federal courts,

these were the amounts of money that they would recover. So I

think it’s very important to understand this was money that was

owed legally by the Federal Government to this tribe for things

that were given up by this tribe at the time land was taken. In

other words, the tribe was not compensated fully and completely

for the things that it was promised. That is clear. That is why we were successful in getting the $149-million settlement fund, but in addition to that, upon examination of the record

it was also clear that we were owed this additional $60 million for

irrigation projects that were promised as part of the Garrison Diversion Project.

That was a legal obligation entered into by the Federal Government that has to this day not been kept. It is part of the legislation. It is very clearly set out there. We were supposed to receive

$6 million a year every year for the next 10 years. That money, not

one dime of it, has been paid over, and it is clearly due and owing

the tribe. So that is important to understand.

No. 2, to me it is also very clear that we were promised, this

tribe more specifically, was promised a bridge. That promise is now

being kept. This tribe was also promised health facilities, specifically a hospital. That promise has not been kept. This tribe was

promised in addition new school facilities. We might say that’s

been partially kept but in large measure not.

If we look at the other trust responsibilities of the Federal Government, I think that any objective analysis would say that is another promise that was made at the time of the flooding of these

lands that has simply not been kept and that we should insist as

a matter of fairness and, more than that, as a matter of law—as

a matter of law that should be kept by the Federal Government.

The Federal Government has an obligation when it makes promises to keep them, and so I say to you today I believe part of the
15

unfinished agenda is certainly the completion of the bridge, certainly the medical facilities that have been promised, the educational facilities, and the 60 million dollars, plus interest, that is

owed to the tribe at this time. That is my own reading of what is

legally obligated by the Federal Government. It is still outstanding.

[Applause.]

Senator CONRAD. Let me now go to Cora Jones, who is the Aberdeen Regional Director of the Bureau of Indian Affairs, and ask her

for her testimony.

STATEMENT OF CORA JONES, DIRECTOR, GREAT PLAINS

REGION, BUREAU OF INDIAN AFFAIRS

Ms. JONES. Thank you, and good morning to everyone, and, Senator, before I get started I would like very much to thank you for

the opportunity to be here because it’s always a pleasure for me to

witness your willingness to assist our people, and I thank you for

that, and beside me, I’d like to introduce to you Dr. Baker, and he’s

the superintendent here at the Fort Berthold Agency, and he’s new,

but he’s doing a great job for the tribe.

Senator CONRAD. Welcome. Good to have you both here. Thank

you very much. Please proceed with your testimony, Cora.

Ms. JONES. Senator Conrad, Mr. Chairman, I am pleased to be

here to discuss the Three Affiliated Tribes Economic Recovery provisions of Title XXXV of Public Law 102–575, the Three Affiliated

Tribes and Standing Rock Sioux Tribe Equitable Compensation

Act, an act to ensure that the Three Affiliated Tribes of Fort

Berthold and the Standing Rock Sioux Tribe were adequately compensated for the taking of Indian lands for the site of Garrison

Dam and reservoir and the Oahe Dam and reservoir, and for other

purposes.

The act established the Three Affiliated Tribes Economic Recovery Act in the U.S. Treasury. Sources for this fund are derived

from the revenues generated in the Eastern Division of the PickSloan Missouri River Basin Project and the congressional appropriations with a maximum limit of $149,200,000.

Since only the interest of this fund is available for payments to

the tribes by the secretary, the act requires interest to be deposited

into a separate account. The act also limits the use of these payments by the Three Affiliated Tribes for education, social welfare,

economic development, and other programs, subject to the approval

of the secretary. The approval authority was delegated to the Bureau of Indian Affairs Regional Director for the Great Plains Region.

Until January 2001, the Three Affiliated Tribes submitted their

individual requests for funds to me as the regional director through

the Fort Berthold Agency superintendent. These requests were reviewed for compliance with the act, approved as appropriate, and

coordinated with the Office of Trust Funds Management for fund

distribution.

On January 12, 2001, a general plan was approved by myself as

regional director entitled ‘‘Three Affiliated Tribes Economic Recovery Fund Proposal.’’ The plan outlines the tribes’ proposed use for

the interest fund, and the plan has been shared with OTFM. Upon

the BIA’s authorization of each funding request that is in compli-
16

ance with the plan, the request has been promptly forwarded to

OTFM for processing.

Funding requests outside of the plan will require—which require

modifications and/or amendments to the plan will then need to be

submitted—or must be submitted by the tribe to the superintendent—to the regional director for approval prior to the BIA forwarding the funding request and the modified and/or amended plan to

OTFM for processing.

The approved plan was established in consultation with the

tribes.

Senator, I have with me copies of all the resolutions, the plan,

and all the forms which are the forms which initiate the drawdown

of the funds for the tribe of the—for the JTAC funds, and, Senator,

if you’d like these documents, I would be happy to give them to

you, and this concludes my prepared statement.

If you have any questions, I’d be happy to answer them.

Senator CONRAD. Yes; I would like those documents, and they

will be important for the committee record. I’d like now before we

go to the second panel to have a chance to ask questions of the

chairman and Cora Jones, the regional director, about the sources

and uses of funds so far.

We know that we had the $149 million. That’s the base amount

of the fund. That’s kept in the U.S. Treasury. The interest is paid

over to the tribe. Can you tell me how much the interest earnings

have been so far? Just by my cursory review it would appear to be

something over $70 million. Is that—is that approximately correct?

Mr. HALL. From 1998 to 2001?

Senator CONRAD. No; from the whole period, the amount of interest that has been paid over to the tribe or made available to the

Tribe. What was the total amount?

Mr. HALL. I believe that’s about correct.

Senator CONRAD. It would be about $70 million?

Mr. HALL. I believe you’re very close, Senator Conrad.

Senator CONRAD. If you’d like to pull up a chair there, Dan,

you’re certainly welcome to.

Mr. HALL. Yes.

Senator CONRAD. For the committee record, it’s important that

we establish what the full amount of the interest earnings has

been and then how that money has been used. I know the first interest allocation after the 5 years was $37 million. I know that

number.

Mr. HALL. Let me state this.

Senator CONRAD. Yes.

Mr. HALL. I think, Senator, Dan, Marcus, and Austin have pointed out under our financial report that’s been submitted by Steve

Salveson, who is our CPA, we have spent $37,590,097, but we still

have the $30 million in the investment fund. So that’s $67.5 million.

Senator CONRAD. Yeah. That would be very close. I kind of did

a back-of-the-envelope calculation at breakfast this morning and

came up with about $70 million. What you’re telling me is the accurate number would be $67.5 million?

Mr. HALL. That is correct.
17

Senator CONRAD. I accept that. That makes sense to me; $67.5

million. And so $30 million, as I understand your testimony here

this morning, has actually been reserved for further investment.

Instead of spending all of the interest income, the tribal leadership

has made the decision to actually save and invest some of that

money in the amount of $30 million.

Mr. HALL. That’s correct, Senator. We’ve developed an investment fund out of that $30 million, and we’re going to—on our resolution by October 1, 2001 we will be putting that into private placement, and we’ve also got a referendum to that effect by the people

that supports the $30 million to be used for a permanent investment fund for the future.

Senator CONRAD. And how will that fund be managed?

Mr. HALL. The tribe by resolution and by also doing an RFP with

various financial investment firms has identified two financial

firms that will invest $15 million, each of it, and then thereafter

whoever gives us the best service—we may choose just one investment firm after that.

Senator CONRAD. And can you tell us who the two firms are that

will be——

Mr. HALL. Yes; the first firm is the Community First Bank of

Dickinson, North Dakota, and the second firm is Gang-Rosher Investment Firm I believe out of Phoenix, Arizona.

Senator CONRAD. So those two firms would each have $15 million

of the investment, that they would in effect manage that investment?

Mr. HALL. That’s correct. And they’ve identified through their

RFPs that we’ll amount to at a minimum 8 percent to 10 percent

interest on that $30 million—or the $15 million, and we’re currently getting around 4.5 percent to 5 percent at the Office of Trust

Funds Management in Albuquerque.

Senator CONRAD. So you’re getting a far higher rate of return as

a result of this strategy of taking some of the money and further

investing?

Mr. HALL. Yes Senator; it’s actually almost doubling the interest

from 4 percent to 5 percent to between 8 percent and 10 percent

by putting the $30 million investment fund into private placement.

Senator CONRAD. Okay. I appreciate that. Now if we could turn

our attention to the other—Dan, do you want to talk?

Mr. PRESS. Tex and I were talking last night that the tribe’s decision to reinvest the fund guarantees money for future generations.

We thought you’d enjoy this. This is a sharp contrast to what occurs in Washington, making it much more difficult for future generations.

Senator CONRAD. In fact, maybe we could ask all of you to come

to Washington and instruct our leader there, because you guys are

saving the surplus, and unfortunately in Washington it’s just the

opposite of that. Let me just say this: We should now turn our attention to the $37 million that has been expended of the interest,

and if you could just review for the committee and for the record

the use of the $37 million.

As I understand it, and correct me if I’m wrong, there would

have been $14 million for fiscal year 2001, $12.5 million for fiscal
18

year 2000, $14 million for fiscal year 1999, and then is there a

$5.5-million that had been expended before that plan?

Mr. HALL. Yes; that was in 1998, Senator.

Senator CONRAD. So that would give us a total of $37.5 million.

Do we have for the record—or could you provide, if you don’t have

it here today, how that $37.5 million has been expended? Do we

have a—a record of that that we could submit for the record?

Mr. HALL. Yes; we do, Senator, and, again, on a page—what I

haven’t submitted which has just been prepared for me by Steve Salveson, our CPA, there is a breakdown of the $37.5 million, and

overall from fiscal years 1998 to 2001 the highest amount has

been—$16.5 million has been allocated for economic development, $10 million for social welfare, 7.6 for other programs, and $3.3 million for education, for a total of $37.5 million.

Senator CONRAD. Okay. If we could just go over those one more

time. $16.5 million for economic development.

Mr. HALL. That’s correct.

Senator CONRAD. And could you give us some examples of what

the economic development expenditures have been? You’ve already

in your testimony referred to a number of items, including the

home-building operation and, of course, the Mandaree operation.

Are there other examples of how that money has been used? I assume that some of the financing for the casino expansion—I take

it from your testimony money has been used there.

Mr. HALL. Yes, Senator; the casino expansion is by far the largest amount of leveraging our moneys for economic development.

There’s the Mandaree Enterprise of 800,000. We’ve also utilized

moneys for the Twin Buttes Custom Homes, our plant that employs

50 people. We pay approximately 350,000 a year for the interest

payments for their bond until they can become self-sufficient, and

we hope after 3 or 4 years they can do that.

Senator CONRAD. And in terms of the casino and the—you mentioned the hotel expansion, what’s been the expenditure there? Do

we have an estimate for that?

Mr. HALL. I think from what Tom has just indicated and Marcus

was telling me, it’s about—which we didn’t use the JTAC for but

we leveraged the moneys for it, and it was approximately $14 million, but we had a financing company—we did a comparison with— with JTAC leveraging our interest rate and without JTAC, and it

was substantial. It was probably two interest points difference by

utilizing the leveraging of the JTAC funds, and two interest points

as you know, Senator Conrad, is literally millions off a $15-year

note for a $14-million expansion project.

Senator CONRAD. So actually you didn’t use the JTAC money to

fund it. You went out and borrowed the money, but you used the

JTAC money as an assurance that it would get repaid, and because

they saw you had that money available they gave you a lower interest rate?

Mr. HALL. Absolutely, Senator.

Senator CONRAD. And two full points reduction?

Mr. HALL. I believe it was about two full points, but Marcus and

Austin, both treasurers, are indicating yes.

Senator CONRAD. So that would be probably 20 percent less interest cost than you would otherwise have spent.
19

Mr. HALL. That’s correct.

Senator CONRAD. Okay. I can tell you I’m very impressed you’re

using Miller and Schroeder because they, of course, have one of the

best reputations in our area as being a firm. If you could get the

committee—and perhaps you have it in the testimony that you’re

about to submit—the breakdown on that $16.5 million, that would

certainly be useful to the committee and how those funds are being

used for economic development.

Then in the next category you indicated there were social better- ment programs of some $10 million; is that correct?

Mr. HALL. Yes, $10,030,191, to be exact.

Senator CONRAD. Okay. $10,030,000. And can you give us examples of how that money has been used, Chairman Hall?

Mr. HALL. Yes, Senator; we allocated as far back as 1997

$507,882 for our daycare center. We supplemented in 1997 also

$218,000 for senior citizens, $167,000 for a Wake Fund—to supplement our Wake Fund for our tribal members.

In 1998 we again supplemented our daycare of $173,129 for the

elderly. In 1999 we supplemented our TERO department $100,000.

We supplemented the elderly program of $224,000. We supplemented the Wake Fund $124,000 and Tribal Court $104,000.

In the year 2000 we supplemented the cops—you see a lot of the

law enforcement officers seated in the audience today—$186,000.

As you know, those are 3-year grants and they run out and the

tribe picks it up. We supplemented the elderly program $397,000,

the daycare $193,000, our Wake Fund $107,000, senior citizens

again $65,000, and our aging meals $87,000. And in the year 2000,

$750,000 for the 36-unit apartment complex at Four Bears, $50,000

to the alcohol and drug program, and $15,000 to our elderly program, all under the social welfare category.

Senator CONRAD. Now that’s—the 36-unit facility, that’s going to cost, I assume, more than the $750,000. Is that just the—— Mr. HALL. It’s approximately $3 million for the total cost, and

that was our match, and I believe the housing utilized NAHASDA

and they utilized a USDA loan, and that was the maximum.

Senator CONRAD. So the total funding was made up of some

money from JTAC, some money from the NAHASDA, some money

from USDA—— Mr. HALL. That’s correct.

Senator CONRAD [continuing]. For the rural development funds?

Mr. HALL. That’s correct.

Senator CONRAD. So you are really—you are really strengthening

the use or you are multiplying the use of your JTAC funds. You

are leveraging those funds to get additional Federal funds to be

able to build that facility.

Mr. HALL. Absolutely. And if we did not have the JTAC funds,

we would not be able to supplement to get the full 36 units. We

might have been lucky to get maybe one-half or one-third of the

necessary units and had to find some money from other sources.

So, again, the use of the JTAC funds clearly helped us get the complete 36 units but also again the low interest loan on the USDA

rural development.

Senator CONRAD. I can tell you one thing I think the committee

is going to be very interested in and very pleased about is that this
20

JTAC funding is being used to leverage additional funding, either

private sector funding, because as you’ve described with the casino

financing you’re actually—because you had that stream of income

coming, you’re able to get a much lower interest rate. So that’s substantial savings on that operation just because the JTAC money is

available. I think the Committee will be very pleased to hear that

and on the leveraging for the purposes of providing additional

housing, as well. Let’s go—if we could go then to the—maybe I

need to go back to the first category because you’ve indicated $16.5

million in economic development. What’s the biggest expenditure in

the economic development category?

Mr. HALL. We have a number of large categories, Senator

Conrad, if I can just give you a few. Back in 1997—let me correct

that—1996 approximately $500,000 was for MRI for our water distribution plants back then. That’s a large figure $800,000 for

Mandaree Enterprise Corporation is one of our larger figures. We

supplemented the Four Bears Community Center of $582,000 for

their new community center.

We also allocated $443,000 to the segment employee program.

That was Councilman Fox’s resolution about the segmented employees, basically providing more outreach for each of the districts.

So that’s money well spent. Again, we supplemented that program.

That was in 1998 and in 1999 under the segmented employee program, $614,000, and, again, that’s to provide better services.

Buffalo program, $600,000. We now have over 1,000 head. Of our

buffalo—we supply the buffalo plate at the casino. Maybe we can

try some of that later, Senator Conrad.

Again, the MRI in 1999 was $864,000. Two other line items for

the White Shield Data Entry Plant, in 1999, $335,000, and the

Parshall Data Entry Plant $361,000.

And then as I move to the 2000 year, segment employee program, $644,000; solid waste program we supplemented $142,000—

almost $143,000. Land purchases, $307,779. Of course, you may or

may not be aware, Fort Berthold has a lot of fractionated parcels

that tribal members are selling to the tribe now. Again the White

Shield Data Entry Plant, $175,000. White Shield Development Corporation in the year 2000, $223,000. Purchase of gravel—crushed

gravel, $51,000, and we’re currently doing home access roads with

this $51,000 of crushed gravel.

If you drive just to the west of us, you’ll see a lot of the newly

built roads—of course, we have the $750,000 for the roads equipment. So we have tribal roads, tribal members driving tribal equipment. Marcus Wells, Jr., just indicated we supplement the BIA

roads program $300,000 annually, and my understanding is they

don’t own the equipment, and so we purchased equipment—we purchased the equipment and we provide additional staff so that all

of the segments are covered now, and, of course, with the tribal

JTAC money now we can build home access, and you can’t with

Bureau funds. So that’s another feature that Marcus has reminded

me.

Senator CONRAD. Well, I’m going through this for a reason, and

I think you probably know the reason. What we see here is you are

having to use some of the JTAC settlement money to do things the

Federal Government should be doing.
21

That’s one of the things that is—I applaud you for doing it. I

thank you for doing it. You’re doing the right thing, but really the

Federal Government should be doing these things. They, frankly,

owe you the MRI money. You shouldn’t have to be using your

JTAC money for that purpose. You shouldn’t have to be using your

JTAC money for the roads, but because there’s inadequate funding

of those things, you really had no choice in terms of the health and

safety of the people in your community. So you acted. I applaud

you for it. Some people would just wait. I’m glad you didn’t wait.

I’m glad you dealt with those problems.

But I think it builds the case for some of these other things. I

think this is very important for the committee record that we establish there are things here that you have done that really were

the Federal Government’s responsibility to do, and you’ve taken

money that was owed to you for other promises that were made,

and you have in effect helped the Federal Government do its job.

So just as I’m adding here, there’s a substantial amount of money

in those areas.

Let me ask you this: In the detailed tables that you will provide the committee, under the $16.5 million, does that add to—do those

tables add to the $16.5 million?

Mr. HALL. That’s correct.

Senator CONRAD. Okay. And then we have the $10 million. We’ve

talked about that. The third category, the $7.6 million, what was

that category?

Mr. HALL. Most of the others in summary is building the tribal

programs like the MIS department, as I indicated.

Senator CONRAD. And you’ll provide the detail of that in your

written submission?

Mr. HALL. Yes; I will, Senator Conrad.

Senator CONRAD. All right. We don’t need to take more time on

that. I think the important thing is we have it all laid out for the

committee, and I don’t want to take more time on this segment of

the hearing because we have an additional panel that we want to

hear from.

So I thank you for what you’ve laid out here because I think it’s

very important information. It’s going to be very useful to the committee and really builds the case for what is still owed. Thank you,

Chairman Hall. Thank you very much. Thank you, Cora.

[Applause.]

Senator CONRAD. I’d like now to turn to our second panel and

start with Buzz Fredericks to give us a historical perspective. If I

could ask each of the witnesses, Buzz Fredericks, Fred Baker,

Marilyn Hudson, and Chairman Hall again who will be testifying

as part of this panel, if I could ask you to summarize your testimony in about 5 minutes each, that would be helpful. Thank you

and please proceed.

STATEMENT OF JOHN ‘‘BUZZ’’ FREDERICKS, MEMBER,

MANDAN, HIDATSA, AND ARIKARA TRIBE

Mr. FREDERICKS. Greetings to all honorable dignitaries that are

here today. My name is John Fredericks, Jr., better known as

Buzz. I am a member of the Mandan, Hidatsa and Arikara Tribe.
22

I am a member of the Prairie Chicken Clan and a child of the Low

Cap. I was given the name, E–Zoo–Ba, shin of the buffalo, by my

clan father, Pete Coffey, Sr., which was my Uncle Wilfred Medicine

Stone’s Indian name. He was killed in action in Germany during

World War II, so I am proud to have my uncle’s Indian name.

I have known our good Senator here for a lot of years, and it’s

good to have you out here again. I especially want to thank you

and the committee for coming here to hear our testimony today on

what the Garrison Dam took away from us, and so on.

It seems very ironic that we will be celebrating the 150th anniversary of the Fort Laramie September 17, 2001, the treaty that

our tribe participated in signing that historical day so long ago.

The treaty guaranteed our tribe a certain land base and also provided our Tribe that we would have the opportunity to live in peace

and tranquility.

Also, we are in the process of celebrating the Lewis and Clark

expedition and centennial that will take place in a couple years. Of

our tribal members, Sacajawea was instrumental in guiding this

group across the mountains to the West Coast and return safely.

Chief Four Bears, Mandan, stated in his last talk to our people

that he has always loved the white man and gave them food and

water and provided them with a buffalo pad to sleep on. What he

got in return was a rotten face that would even scare the wolves,

according to his last statement.

What I am saying to you is that our tribes have always been

good to the white man, providing the white man with the various

things he needed to survive the treacherous weather and maintain

his health and continue on with their discovery voyage as I mentioned above.

On the contrary, the white man does not have a good track

record.

Out of 13 million acres or so initially negotiated for in the Fort

Laramie Treaty, we have less than 1 million acres left, the last big

land grab when FHA took large tracts of land and used the land

as security for large economic disaster loans back in the seventies

and eighties, even though the regs didn’t call for it. This situation

is being litigated in the Federal Court at the present time. We ask

you to support our efforts however you can.

I attended the elementary school in Elbowoods that was provided

for elementary education. I graduated from high school in 1951

from the Elbowoods High. At that time our nations had adapted to

farming and ranching as a way of life and were doing pretty good

at it, I might add. We did not have welfare payments to our people.

As a matter of fact, it was not a concern of our tribal people.

The cattlemen formed a Federal corporation and operated it

under the guidance of their chairman and a Federal agent hired for

assisting with the operation of the ranchers and farmers, and I

might add that all of our families at that time were involved in agriculture. They had a productive bull program to breed up their

breeding herds and bought feed by the bulk in large quantities so

it was cheaper, also salt and mineral the same way, and they had

their own flour and feed mill to provide members with flour and

bran feed.
23

The ranchers even used to haul water with a team of horses and

barrels from the Little Missouri River to irrigate their corn crops

during dry years. In fact, the tribe had a sizable irrigation field in

Lower Elbowoods that provided feed for both livestock and our people.

We also had additional irritation projects out in the various districts. We had two sloughs that ran through our reservation along

with springs and wells that provided adequate freshwater for our

tribal members. I’m just going to mention the fact that when I was

a small boy, I used to hook up the horses with my dad and we’d

put in two barrels across the river and go to a spring that came

out of the rocks about a quarter of a mile west of the crossing, and

we would back up our team, and he had it fixed so the water would

run right into the barrels, and then we’d cap it with a canvas so

we wouldn’t lose it between there and home. So that was our

water, and that was some of the best water you could drink. We

pay $1 a bottle for it now.

We also had a good hospital well staffed that provided us with

good health care services. It wasn’t like now when you are referred

to other health care units in and around the reservation area. Then

when the bill comes and you refer it to the Indian Public Health

Service in New Town, ND, you get a letter telling you you are

turned down for payment but you can appeal. Very few people appeal. See attached letter dated August 14, 2001, signed by Karrol

Parker, Service Unit Director, Indian Public Health Service located

at New Town, ND.

We had a good road maintenance crew that was able to provide

and maintain our road systems to adequately serve our people at

that time. We had a powerplant that provided the electrical needs

of our reservation administrative offices, health care facilities, our

school systems, as well as a number of the housing units.

In 1951 when I graduated from Elbowoods High, we had all the

above facilities in place and were working well for our people. The

people on Fort Berthold were living in an agricultural economy

that provided our people with life, liberty and peace in a prosperous community that our people are satisfied with.

During my years in the ranching business I had to move my cattle to Nebraska during a drought situation here on the reservation.

During that time it seemed that Nebraska ranchers always had

feed from their large, natural lakes and underground aquifers provided by nature. I was tossing this around in my mind wondering

why we weren’t provided this kind of feed base. Then it occurred

to me that we were provided a good feed and water base with good

shelter, that of the lowlands and river and trees that the Great

Spirit provided us with, but it was again the white man that came

in and disrupted all of this with the construction of major features

of the Pick-Sloan Dam.

And I might just add there that there were five of those dams

built and all built on reservations up and down the Missouri River.

It did not only take the bottom lands and thousands of acres of

prime land, but it split our members into five distinct segments. So

we were unable to see each other grow up and utilize the resources

that the Great Spirit provided us with. Therefore, in the last 50

years we turned from a welfare-free people living in harmony to a
24

drug and alcohol-infested state bringing us into—bringing into this

world many babies that are—that are alcoholics, is what I’m saying. I don’t want to get into statistics in that area but leave it to

someone that is more involved in the area.

It is my understanding that anytime the Government takes

something from you, they are supposed to replace it in as close a

fashion as what they took at the same time that they took it. So

with that in mind, hear what I have to say today, members of the

committee and members of the Tribal Business Council and other

members of our tribe.

The Government should have moved all of our facilities I mentioned earlier west, somewhere in the old district of Independence,

for example; put in two bridges to tie Mandaree, the west segment,

and Twin Buttes, the south segment. This would put us back in the

central location with all the services we originally had to assure

our people of life, liberty and peace. This did not happen, but we

have a second chance to get this done.

Therefore, as an elder that has lived during the above timeframe,

I want you to know that we don’t want money. We simply want our

property returned to us so we can begin to initiate the above plan

and begin to mend the many wounds inflicted upon us over the last

50 years that our Government by and for the people created for us

by failing to act in a timely, responsible way at the time negotiations took place for all the losses our people suffered so that our

non-Indian friends will benefit from the resources that the major

features of the Pick-Sloan Missouri Basin Program provided for

them.

Public Law 102–575 was amended by S. 6233, Dakota Resources

Act of 2000. I would like to add that individual landowners have

not been given their due by the Federal Government for the land

loss by the Garrison Dam Diversion Project. They have not received

compensation for water rights and now see that the taken area and

water is being allocated out to various areas in the state. See Bismarck Tribune article dated August 24, 2001, entitled ‘‘Land transfer from Corps to South Dakota planned.’’

I’d like to turn the microphone over to John Danks who has a

few more comments to make about the loss, and so forth.

[Applause.]

Senator CONRAD. Thank you very much, Buzz, for that very powerful testimony. Thank you very much. Welcome. Could you identify yourself for the record?

STATEMENT OF JOHN H. DANKS, MEMBER, MANDAN, HIDATSA,

ARIKARA ELDERS ORGANIZATION

Mr. DANKS. Good morning. Thank you, Senator Conrad. My

name is John Danks. I’m a tribal member, a resident of the Four

Bears Community and an active member of the Mandan, Hidatsa,

Arikara Elders Organization. I thank fellow tribal member, John

Fredericks, for yielding some time to me, and I thank you, Senator

Conrad, for your assistance to the Three Affiliated Tribes in the

many projects, including our new bridge and for holding this hearing in this most important issue today.

I’ve been authorized by the Mandan, Hidatsa, Arikara Elders to

make brief comments on three important topics: Return of surplus
25

lands; respond to Senator Inouye’s letter dated August 22 concerning the tribe’s use of JTAC funds, including the planning process

and compliance with requirements of the legislation; third, Social

Security.

For the sake of time, my comments are very brief. The elders’ foremost concern is the return of surplus lands within the taking

area. Public Law 102–575 dated October 30, 1992, section 3508, authorized the return of certain surplus lands in the taking area to

the Three Affiliated Tribes. Later section 407 of Public Law 103– 211, dated February 12, 1994, rescinded a good portion of that except Subsection B of Sections 3508 and 3509 of the Three Affiliated

Tribes and the Standing Rock Sioux Tribe Equitable Compensation

Act were repealed.

However, Congress provided that the U.S. Army Corps of Engineers should proceed with the Secretary of the Interior to designates excess lands and to transfer them pursuant to Public Law

93–599. The Elders know that these lands are critical to our longterm tourism and recreational development. We request the Corps

of Engineers and the Secretary of the Interior to expedite the

transfer of these lands to the tribes.

[Applause.]

Mr. DANKS. Senator Inouye’s letter of August 2001 solicits comments concerning the use of JTAC funds, including the planning

process and compliance with the legislation. The MHA Elders Organization is not satisfied with how the tribal council has used

JTAC funds, including the planning process and the reporting requirements. We do not hold our tribal council totally responsible for

their inability to manage JTAC funds in accordance with the legislative requirements.

The Three Affiliated Tribes Constitution and the bylaws are inadequate and outdated and do not meet the needs of the membership. The burden the tribal council—they burden the tribal council

with the responsibility of legislating, administering and adjudicating all activities of the tribe. This concentration of responsibility

and authority lessens the effectiveness of our Government. There

is a quote, absolute authority, absolute corrupt.

Our tribal constitution needs major revisions to ensure that the

welfare of our membership is protected. The constitution must address the separation of powers, accountability and reporting of tribal funds, recall of elected officials, and a sundry of other revisions.

Traditionally the tribal elders have provided leadership on the

important issues relating to the welfare of the people. In keeping

with our tradition the Mandan, Hidatsa, Arikara Elders Organization intends to provide the leadership in the design and development of a new constitution for the Mandan and Arikara Tribes.

[Applause.]

Mr. DANKS. This will be done by petition as provided for in our

current constitution.

Our tribe’s financial accountability and reporting are not available to the general membership, and by coming to this meeting and

hearing my chairman’s report, I am pleased with his report. It was

good, but I didn’t hear it before.

We remind the Senator—no. Our tribes’ financial accountability

and reporting are not available to the general membership. It is
26

the position of the Mandan, Hidatsa, Arikara elders that our financial system should mirror that of our Federal and State corporations. We remind the Senator that the Three Affiliated Tribes are

not only a sovereign entity; we are also a federally chartered corporation.

The elders wish to point out that the referendum for the use of

JTAC funds was conducted by the tribal council. However, turnout

of eligible voters on the referendum was minimum. The low turnout of eligible voters is an indication of lack of understanding as

the wording of the referendum was ambiguous. A referendum vote

of this importance should have garnered a larger turnout.

A third topic is Social Security. Social Security benefits of the elders of the Three Affiliated Tribes is far below the national average. The construction of the Garrison Dam disrupted the social-economic livelihood of the tribal members, creating communities of

poverty on Fort Berthold Reservation. This disruption deprived our

membership of the opportunity to earn an adequate livelihood and

full participation in the Federal Social Security program. The elders organization requests your assistance again to remedy this situation, similar to the process used to be extend Social Security benefits to the farmers and religious organizations.

We regret that we are not prepared to provide you total documentation on these issues today. The time for preparing for this

public hearing was short. MHA Elders Organizations will submit

further written comments on these topics within the deadline set

for this hearing process.

Again, I thank you, Senator, for coming to our community.

Senator CONRAD. Thank you, and we appreciate that testimony,

and we look forward to your additional submissions for the record,

and as I indicated, you’ll have until September 13 for any additional testimony you want to provide.

Now we’ll go to Fred Baker who will testify on health care. Welcome. Good to have you

STATEMENT OF FREDERICK BAKER, ENROLLED MEMBER,

THREE AFFILIATED TRIBES

Mr. FREDERICK BAKER. Thank you. Welcome to you, Senator.

Welcome to my home. My name is Frederick Baker. I’m an enrolled

member of the Three Affiliated Tribes, and thanks to my grandparents and my parents, I am knowledgeable in the history and

culture of the Three Affiliated Tribes. We will provide written testimony, so I’ll try to summarize as much as I can.

We’re trying to really emphasize two points in this hearing. One

is the need—the level of need of the health or the status of the

health on the reservation, and second is our vision or our dream

of what we feel is necessary in order to improve the situation. I

just want to point out that in the three tribes, the Hidatsa,

Mandan, Arikara, we’ve demonstrated over the years the tremendous resilience and adaptability over the years, you know, considering the effects of the smallpox epidemic of 1781, the smallpox epidemic of 1837, us being put on reservations and losing our lifestyle

and adapting very well to the—to the new situation that we were

put into.
27

We all adapted into those communities such as Independence,

Lucky Mound, Shell Creek, places like that where we think we’ve

adapted. We started to go from using the buffalo to using cattle

and became cattle ranchers and farmers where we learned how to

deal with the problems that we had and we became very strong

communities, including our ability to take care of our health care

needs. We knew how to deal with certain kinds of illnesses, we

knew what resources we had in our communities, and we did very

well in keeping ourselves alive and at the hospitals.

Unfortunately, during the 1940’s, early 1950’s the whole Garrison Dam process came into existence, and with that was a tremendous and drastic change in our lifestyles. A change in our diet,

change in our cooking mechanisms, and as a result, the last 50

years has seen a great increase in things like depression, diabetes,

hopeless poverty, obesity, alcoholism, loss of self-esteem, and those

kinds of things, and that resulted in an increase in things like diabetes, hypertension, heart disease, cancer and all this, use of alcohol, increased trauma, and so forth.

Kind of moving quickly to the present situation, one of the things

just looking at in our report, in our improvement act, fund distribution, there’s a couple of things I want to point out. One is that the

Aberdeen area that we are part of seems to have a large part of

the health problems of the Indian health community, and yet we’re

one of the lower funded areas when it comes to the distribution of

money, and a lot of this has to do with the whole idea of looking

at the population and user funds.

Our population may not be as great as Oklahoma, for instance,

but yet our—the things like isolation, the various kinds of problems

that we’ve encountered over the years such as the Garrison Dam,

has caused us to have a large and very difficult health care situation, you know, and this distribution in 2000—I want to point out

that, you know, the Oklahoma area, for instance, received over 30

percent of the—of the money that was given to the tribes are given

to the areas in the Indian Health Care Improvement Fund distribution. So we think it’s grossly unfair.

We have a 50—in fact, at this point we have about a 50-percent

level of needs funded. According to the—this was a document that

was produced by the Indian Health Service. We have a user population of about 5,683, and last year we had—in 1999 we had a total

of 86,830 visits to our health care facilities here. In 2000 we saw

90,020 visits, and these are—the main clinic is here, and we also

have satellites clinics at White Shield, Twin Buttes and Mandaree.

Moving along quickly, some of the things that we desperately

need are 24-hour care. We don’t have 24-hour care. All of us have

access to—to the ambulance services around—in our communities,

and most of these ambulance services, as you know in other parts

of rural North Dakota, are based on the volunteers, you know, and

so it’s a tremendous problem. Many of our people have died en

route to their facility because there’s no 24-hour service available

anywhere in this area. The other thing I want to point out is quickly, you know, that there——

Senator CONRAD. Can I just interrupt you and ask you—I assume the closest 24-hour care would be in Minot?
28

Mr. FREDERICK BAKER. Yes; by and large. There is a hospital in

Stanley, but they’re limited.

Senator CONRAD. Is that emergency—I don’t even know if they

have an emergency room there.

Mr. FREDERICK BAKER. They do have an emergency room at

Stanley.

Senator CONRAD. Is that staffed 24 hours?

Mr. FREDERICK BAKER. Yeah. But for all practical purposes it is

Minot, and that’s 70-some miles away. Yeah. I failed to introduce

my consultant here, Dr. Biron Baker. Dr. Biron Baker is one of the

up-and-coming physicians. He’s the chief of medical staff. He’s a

family practice board-certified physician and a member of our

Tribe.

[Applause.]

Mr. FREDERICK BAKER. Somebody alluded a few minutes ago to

contract health care denials, and, you know, in 1998 there were

2,221 cases of denial of the Indian Health Service, and the estimated cost of these denials were $1,084,623. In 1999 this went up

to 3,401 cases—3,401 denials, and the cost of that was 1,365,282,

and in 2000 that’s gone up to 3,824 cases. The monetary amount

is a little bit less, 1,216,000, but in this year alarmingly as of May

18, 2001, which is not quite one-half of a fiscal year, we had 2,783

cases denied. That estimated cost is 1,130,755.

Senator CONRAD. That’s through what month?

Mr. FREDERICK BAKER. It’s through May, May 18. It’s not quite— well, it’s—— Senator CONRAD. About halfway through the fiscal year.

Mr. FREDERICK BAKER. Yeah. So I just wanted to point out

again—I might have done it already, but in the interim fiscal year

2000 the Indian Health Care Improvement Act shows us at 50 percent of our level of need. In order for us to come to—and these are

IHS statistics. In order for us to come to the—at this point the target, 60 percent level of need funded, even if we were to get to that

point, we’d need $1,556,882 in order to get to 60 percent of our

need. We’d still need a 40-percent level of need funded. To get to

100 percent we’d need an additional $7,532,643. This is according

to Indian health care statistics.

But I’m retired as the service director for the Indian Health

Service, and when I was working, the average cost for health care

in America was at about $3,450 roughly, give or take, and at that

point we were funded about $1400 per capita. So we were more

than 50 percent under the average cost.

So with that, I’d like to move quickly to—well, we do have—and

I’ll submit this as testimony. We’ve been working on this. We have

a comprehensive health plan that was completed in 1997, you

know, that has—including the impressions and the opinions of people in our community. We also have a—with that is a vision of a

center, a new health care center that would allow us to do several

things.

Senator CONRAD. Can you tell me what the estimated cost of that

health center would be?

Mr. FREDERICK BAKER. I believe at that time—we haven’t updated it, but at that time it was—depending on the model that we

were able to do, we’re talking somewhere between 14 and 18 mil-
29

lion dollars, and we were talking about at that point, you know, a

possibility of a joint venture, and although a joint venture is authorized, there has never been any appropriations. So we were very

interested at that point in trying to participate in the joint venture.

As far as the way the Indian Health Service and Congress calculates the construction needs, you know, again because of our

numbers, we’re not eligible—we’re so far down the line in priority

as far as construction that we’re not able to get on the list, and at

this point in time the list is apparently frozen so that no new facilities can be added to the construction list.

With the new—the new hospital some of those things—or some

of those plans—we’re talking about a comprehensive health care

clinic that would have the capability of doing procedures like ambulatory care, 24-hour-a-day service, and those types of things, and

with that that would increase our capability. I think over the last

few years, you know, our level of health care has—as far as our

ability to provide care has improved in that we brought in, you

know, physicians that are very able—and I think one of the shortcomings with Indian health care is, unfortunately, with the government system. It’s very difficult.

I was in the business for 17 years as the service director, and I

tried to recruit physicians and to keep physicians once they came

to the service area, and since then prescriptions are gone, there’s

a reduction in the repayment, and so forth. So I think one of the

things that was very difficult was to find physicians that would be

willing to come to work at Fort Berthold and work at the level of

salary that we were able to provide them, especially when we were

concerned with the level of care or meeting the standards of care.

I think we’ve resolved that. We entered into a contract with the

tribe to provide physician care. They provided us with additional

funding and then give it back to the Indian Health Service to manage it. It’s a very good arrangement, and I just want to say quickly

that as a result of those improved physicians, you know, our lab

costs have gone up radically, our x ray costs have gone up radically, the kinds of pharmacy items, the kinds of drugs that we’re

giving out have gone up radically.

Those costs are—they’re to improve your health care, but the

costs are—we’ve got, I think, five exam rooms, and the industry

calls for one—or three exam rooms and one nurse for every physician, and we have—we have five exam rooms totally for three doctors and one nurse practitioner. We have two—we have three fulltime nurses, but with vacation time and all that we’re down. So the

biggest complaint we get constantly, and there’s nothing we can do

to improve that, is the space problem. No matter what we do, when

I was working as the director, I spent endless nights trying to figure out how to improve patient flow and how to increase our patient numbers because the demand is tremendous, and, you know,

no matter what you do, you’ve always got those space problems.

So with that we’ll submit stuff in writing, but I’ll stop at that

point, but we do have a plan, and our plan is to build an ambulatory care center capable of providing needed additional services like

24-hour care, a mental health program that will be accomplished—

exercise facilities, education facilities, those types of things.
30

Senator CONRAD. All right. Thank you very much. We appreciate

your time, and, Dr. Baker, it’s good to have you here, as well.

STATEMENT OF BIRON BAKER

Mr. BIRON BAKER. Good morning, Senator, and thank you for

your time. I just have a few things to add to what Mr. Baker already alluded to. I’ll be brief in the interest of time.

We talk about a lot of our health care needs, and everything that

we talk about has been well-documented in terms of the diseases

that ravage our population, and we try to think about some of the

things that would provide immediate benefit, immediate relief, and

a new facility would do this in a number of different ways.

As Mr. Baker alluded to earlier, the space at the clinic is a problem. We’ve done patient satisfaction surveys and found our patients

are satisfied with their physicians, they’re satisfied with their

pharmacy experience, they’re satisfied with lab personnel. Everyone is doing a good job until you get to how much time did they

spend in the clinic, and, unfortunately, one of the most frustrating

things is to study something and then not be able to do anything

about it.

With a larger, new facility we would have the space necessary.

We would have three exams rooms per physician to—the necessary

space for patient turnover, for patient flow. Continuity would also

be improved with a new facility. We could enclose within this new

facility the mental health, as well as health education. All of these

things being provided under one roof would enhance the continuity

of care, and continuity has also been an issue with Indian Health

Service, but historically in terms of health care professional turnover.

If we had a newer facility, this would allow us to enhance services available to our patients in terms of mammography, in terms

of enhanced laboratory testing, also physical therapy, occupational

therapy for those patients who have had strokes, those patients

who have had myocardial infarctions and are in need of cardiac

rehab. We would be able to provide these things onsite and enhance the services that we deliver. 24-hour care would also be

something that we would strive for because it’s unacceptable for us

not to have it.

Some of the intangibles that would improve with a new facility,

some of the things that we don’t often think about, would be the

quality of worklife for those people employed by Indian Health

Service and the tribe to provide health care. The quality of worklife

has been an issue in terms of recruitment and retention of health

care professionals. If we find well-trained professionals, they must

have a facility that allows them to practice medicine to the standard of care to which they were taught, and this is true for physicians, it’s true for dentists. Currently we have no dentist, and this

is something that causes us no end of grief. We will continue to

look. However, with the Federal salaries being what they are, I

don’t anticipate that we’re going to find anyone any time soon.

Also, the patient perceptions of the health care that they’re receiving would improve in a new facility. If my patient could come

to me in a new facility, is greeted in a warm and courteous manner

by the people present, and the waiting room is aesthetically pleas-
31

ing, they feel that they’re in a real clinic, and one of the complaints

with Indian Health Service is that I’m not going to a real clinic,

I’m not going to a real doctor, and so forth, and this would help

address that.

With the addition of a new, aesthetically pleasing 24-hour health

care center we would also be able to address trust issues. A lot of

our patients have trust issues, and understandably so. Everyone I

know has a horror story about the Indian Health Service, and

we’ve been able to address some of that, but it’s slow progress, and

with people waiting in our waiting room for hours on end, we’re

heading into a gun. So the trust issues could be assessed and dealt

with.

I had an 80-some-year-old lady come to my house and see me

there complaining of chest pain. All I could tell her was you’ve got

to go to the hospital where they can do the testing necessary to determine whether or not it’s your heart. She said, No, I don’t trust

those guys, and I tried to convince her, but I wasn’t successful, and

this isn’t an uncommon occurrence. We have the trust of our patients, but we’re frustrated in that we can’t carry through for our

patients to a greater degree.

So I think we’d be able to recruit and retain health care professionals, well-trained, to address all of our health care needs with

a new facility. That always helps. It always helps to offer something like that.

The last thing I’d just have to say before passing this on is that

any health care endeavor on a reservation must be free of any political involvement. There can be no political involvement in health

care. When health care becomes number two—— [Applause.]

Mr. BIRON BAKER. When health care becomes secondary, when

healthcare becomes number two to someone’s personal or political

agenda, my patients have to pay for it.

Thank you for your time.

[Applause.]

Senator CONRAD. All right. Thank you. And next we’ll hear from

Marilyn Hudson, discussing the education.

STATEMENT OF MARILYN HUDSON

Ms. HUDSON. Thank you. Senator Conrad and members of the

Committee, my name is Marilyn Hudson, and I am pleased to be

here today to present a brief perspective on the history of education. The proof of a strong, highly-valued educational system is

well documented in tribal archives. I will recount for you several

of these memorable records from the past 100 years.

School reopened in December 1875 in a small room with 77 students. ‘‘They are bright and quick to learn,’’ said the teacher, Hannah Briggs.

‘‘Several years after the cessation of hostilities, Chief Son of Star

again conferred with officials in Washington and agreed to cooperate in an educational program for Indian children beginning in the

abandoned barracks of Fort Stevenson in 1883. The educational

program has steadily advanced and is now an invaluable asset to

the tribes,’’ said Peter Beauchamp in his history of the Arikara people.
32

In 1925, 356 Fort Berthold students were attending school, many

of them in Bismarck, Wahpeton, Pierre, and Flandreau, and by

1933 efforts were being made to educate children at home. Classrooms were makeshift because the wooden buildings kept burning

down, and in 1936 a high school was built in Elbowoods.

A dedication ceremony was scheduled for January 24, 1936, a

day that began with a blizzard and 40 miles of snowdrifts. Through

the snow came 230 Indian people to attend the dedication ceremonies. Bears Arms, representing the Hidatsa, in full ceremonial

dress spoke in praise of the fine new building. Little Crow and Little Owl, representing the Arikara and Mandan people, were unable

to attend because of the snowstorm.

And by 1944, 551 students were attending school on the Fort

Berthold Reservation. Nishu had 3 teachers and 90 children, Shell

Creek and Independence had 2 teachers and 50 to 60 students. Red

Butte, Charging Eagle, Beaver Creek, and Lucky Mound were 1-

teacher schools with 15 to 35 students. Elbowoods had an enrollment of 200 students with 10 teachers.

The average cost per pupil in education in 1943 was $124.50, with a range from $83 at Lucky Mound to 155 at Independence.

This variance was due to such factors as transportation.

In 1953 the educational system on the Fort Berthold Reservation

was totally wiped out by the Garrison Dam. Since then we have

struggled to retain the high value our people have always placed

on education, the sense of community we had with the school at the

center and the pride of the ownership of a fine school system.

A former student wrote, ‘‘I had great friends and relatives. I did

not realize it then, but I certainly do now, that we had a great

school in Elbowoods and great qualified teachers.’’ I appreciate being able to tell you what school was like 50 years

ago. Now I’d like to yield the floor to Joyce Burr, educational consultant for the Three Affiliated Tribes.

Senator CONRAD. Welcome.

[Applause.]

Senator CONRAD. Thank you. That was a beautiful description.

Very well done. Welcome, Joyce. Good to see you.

STATEMENT OF DR. JOYCE BURR, EDUCATIONAL

CONSULTANT, THREE AFFILIATED TRIBES

Ms. BURR. Hi. It’s good to be here. I’m honored to discuss the request for the high school and the adjoining dormitory that they’d

like to put here at Fort Berthold. I have been working as a consultant for the tribe. However, my husband and five children are enrolled members of the Mandan, Hidatsa and Arikara Nation. So,

again, I’m honored, and I’d like to thank you for your willingness

to examine the needs of the children on the Fort Berthold Reservation.

Like Marilyn said, there were eight communities with schools

originally, and three schools were built—rebuilt or placed after the

flood, and also the school that was in New Town, ND, just at one

time was not considered on the reservation, but as they redistricted, they did replace three of the original eight, and they did

not replace the Fort Berthold school, the Elbowoods school and the

dormitories, so those are no longer here and they’ve never been re-
33

placed, and we understand that the compensation was for the land,

and so they are seeking to have the school and the dormitories replaced.

I am here to testify for high school and dormitories for children

who are experiencing extreme problems resulting in the low test

scores and other things that are found to be prevalent here at some

of our schools.

Both you and I and many of the community members understand

that there have been really two major reports on education, the

Meriam report in 1928 and the Kennedy report in 1969 that Congress mandated, and the findings from those reports was that Indian education was in deplorable condition.

The facilities were old, the staff was inadequately prepared, the

curriculum was not appropriate, and so on and so on, and 40 years

passed between those reports and nothing changed. Since that time

in 19—or 1994 a man called Michael Charleston made a report, little known report actually that was made in the Journal of Indian

Education about the condition of Indian education, and again he

says the same thing that the Meriam and Kennedy report says,

that Indian education is in terrible condition.

There’s not much change that has happened. Curriculum— there’s a cultural mismatch in our curriculum that continues to be

the same system out there. Nothing has changed. The BIA that enrolls the largest portion of students—Indian students—well, not

the largest portion but a large number of Indian students, their

system has stayed the same. So we’re concerned about that.

Although in recent years there’s been much legislation passed

with self-determination, Elementary and Secondary Education Act,

those types of things that are friendly to Indians. They put us in

the driver’s seat with education. So why are we still in the condition that we’re in?

Recent research that I did here at Fort Berthold shows again

that we still have low test scores, high absenteeism rates, high

dropout rates, all those things that contribute to poor performance.

So we’re concerned about those. The Tribe is concerned about what

they can do.

The system is the same. We have not changed much with the

presentation of education to the children, and we feel by establishing a school and dormitories here on the reservation to serve those

children, only the children that are experiencing extreme problems,

personal problems, problems in the school—the schools that are

here on the reservation now are trying their best. They’re struggling with education. They need new facilities, they need new

schools. They have proposed new schools. They have not received

those yet.

However, we’re here to talk about those children and such a high

dropout rate. The National Center for Educational Progress made

a report in 1993 that said the dropout rate was 26 percent for nonIndian children. It was 53 percent for Indian children. That’s outrageous. We need to do something about it. We need to improve our

education.

The school that we’re proposing is going to do a lot of things. It

can lower the student/teacher ratio. It can provide a better curriculum that’s both culturally relevant but valued so that our children
34

can make the transition into the modern world. We could provide

therapeutic services there for the children and their families. We

could do lots of extended day programs in the evening, things like

tutorial programs, laboratories, libraries, things like that in those

dormitory settings. We could provide a safe and secure environment. We need that for our children. We need drug prevention,

intervention, things like that.

This enrollment would be by choice. It is not going to be forced

upon anyone. It’s not the old boarding school concept where people

were forced to go there. This school will be here in the community.

We can promote the language. Let’s keep our language going, our

culture going. Let’s keep programs for that. Let’s not let this language die.

I have one quote here that I’d like to make, and it was done by

Senator Burdick, and it was made—recorded from the 137 Congressional Record, and I quote,

Mr. President, today I join Mr. Conrad in cosponsoring a bill that would provide

compensation to the Three Affiliated Tribes and Standing Rock Sioux Tribe for land

taken during the flooding of the Garrison and Oahe Reservoirs. The bill we are introducing today attempts to redress the disregard for treaty rights and human

rights. I believe that the passage of this bill will start the healing process for the

Indian men, women and children who feel that the Government unfairly destroyed

their ancestral lands.

Again, we thank you for all that you’ve done to help the tribe in

so many ways, and we encourage you to support the proposal for

a school and dormitories on this reservation.

The Three Affiliated Tribes has struggled to provide the best

education possible for its children, and they continue to grow and

they continue to be creative as you have been. Thank you for your

time.

[Applause.]

Senator CONRAD. Thank you. Thank you very much. Chairman

Hall, in my list of witnesses, we still have you to hear from on the

question of irrigation, and maybe we could do that. We’re running

over our schedule. We have another event here, but if you can summarize any additional comments, they would be made part of the

record.

Mr. HALL. I’ll be very brief. Senator, I’ll be very brief, and let me

just take off on one statement—one statement, and I’ll defer the remaining minute of my time to Tony Mandan, who started the prayer and will close for us, if I could, Senator Conrad.

In talking with Austin Gillette, our treasurer, on the $60 million—and I very appreciate your efforts and again for holding the

hearing on the Equitable Compensation Act because it is the single

best thing that ever happened to our Tribe in the past 100 years.

There is clearly no question about it, your bold leadership to sponsor that legislation. That’s why we have young people standing up.

On the education if I could have the young people from the

school, if they could stand up, as well, and I think our superintendent—if you could have all your students please stand up and be

recognized because I think education is an important component.

[Applause.]

Mr. HALL. I appreciate Dr. Joyce Burr in saying that the compensation was for men, women, and children of the Mandan,

Hidatsa, Arikara Nation, but from 1986 to 1996 the $60 million—
35

8 percent average was equated for $139 million; 1997 to 2000 it

would be at $204 million. So just using some rough averages, that’s

what that would equate to with interest. So my sharp treasurer

was able to pencil that out in the last 5 minutes.

Senator CONRAD. That Austin is good with a pencil.

Mr. HALL. So, again, I want to defer the remaining minute of my

time to Tony Mandan.

STATEMENT OF TONY MANDAN, MEMBER, THREE AFFILIATED

TRIBES

Mr. MANDAN. Thank you, Tex. Senator Conrad, we’ve really appreciated the things that you have done for our tribe. Most of the

things that we’re talking about is that we’re always short of money.

The Public Health, the BIA, and you name it. We’re always short

of money so that all of our people cannot be satisfied. You know

that as well as I do, that there’s going to be a squabble, and, now,

you know, I’m a senior citizen and there’s money set for—for us,

but I’ve asked how much is the overhead, you know, and I can’t

seem to get an answer how much the overhead is costing us on

that alone, but here we’re all fighting for the same thing.

We’re fighting for money so that our people can all come in on

an eye, so to speak, and that’s one of the things that this JTAC

is going to represent. To me we’re giving up our sacred land on

which we’ve held ceremonials all along the river. That’s where our

people live.

So today when we’re talking about things that we’ve lost, it’s

true that we lost our schools. I went to school in Elbowoods. I was

very proud of my school, but that’s gone, and our kids, you know,

have to go to Parshall and New Town, and there were two secondhand citizens until just a few years ago when we finally got some

elected to the board, and so we’re coming along, but now that we’re

talking about JTAC, it’s going to really help because we’re looking

out for the future of the unborn.

That’s what my grandfather done when he signed the 1851 treaty. He was looking out for us that wasn’t born, and my dad came

along and he talked about old claims. In the fifties our senators at

that time, I think Burdick and Young, helped us get these old

claims. These are all the things that our council and the people

that are working together are trying to get so that we will move

ahead to—we’re up to 10,000 right now. Back in 1837 I think there

was only maybe 50 families of the Mandan, maybe a little more

than that of the Hidatsa, but our enrollment is up to 10,000.

We’re moving along, but we need more money here, and like Dr.

Baker here is talking about, that we need a 24-hour emergency

room bad because, you know, there’s a lot of accidents that could

be worked on right here if we had the equipment, because we have

three doctors here, and our—over here she’s short of funds because

she’s serving so many reservations.

So all this really becomes a problem to us that are on the bottom

of the totem pole, you know, because it goes to the people that are

working, earning. So when you’re down on the totem pole, you’re

not going to get any, you know, so to speak, but we’ve lived

through this.
36

So that’s—I’m saying we want to work together so that we can

get some more because every four years we have a chance to

change our council, and I really appreciate what you have done for

us and Burdick and all the Democratic people that really stuck

their necks out for our people, our Indian people, and I thank you

very much for this, Senator. Thank you.

Senator CONRAD. Thank you.

Mr. HALL. So, Senator, that concludes our testimony today for

this panel, for the first panel, and we’ll offer additional comments

in the next 14 days for the record. So thank you again, and whenever you close the hearing, we have a special honor on your behalf

for your presence and Senator Inouye and the rest of the committee. Masehgedatz.

[Applause.]

Senator CONRAD. Thank you. Thank you all. Thank you for really

excellent presentations here today. I’ve had a chance to review

some of the additional written material, and I look forward to the

additional submissions. As we indicated before, we’ll have until

September 13 for any additional written comments to be made part

of the official record.

Before we conclude, I want to again thank Chairman Inouye for

allowing me to hold this hearing today. That was a grant of authority that he did not have to make, but he is interested—vitally interested in how the JTAC process was working, and I think we’ve

learned a lot here today that will help us make a good record.

I am—there are five areas that I have concluded based on this

hearing need to be further addressed.

No. 1, clearly the $60 million that is owed under the JTAC Legislation that has not been paid with interest, that is owed to this

tribe clearly.

No. 2, the promise that was made for a health facility here has

not been kept. That remains an additional obligation of the Federal

Government, and I believe the clear record of this hearing will

demonstrate that is owed to this tribe.

No. 3, I also believe it’s very clear a school was promised, and

that remains an unkept promise, and I believe the clear record of

this hearing will demonstrate a replacement for the Elbowoods

school and the dormitories is owed to this tribe.

No. 4, Social Security disparity. The difference between what our

seniors who are on the reservation and who are enrolled members

off the reservation receive in Social Security payments versus what

others receive in Social Security payments is unfair and cannot be

justified and must be fixed.

[Applause.]

Senator CONRAD. No. 5, as you know as part of the JTAC Legislation there was the return of certain lands that were taken in excess of the needs of the Corps of Engineers. Those lands—those

that were taken by the Corps of Engineers and held by the Corps

of Engineers that are in excess of their needs were supposed to

have been returned. That remains part of the unfinished agenda.

Those excess lands should be returned.

[Applause.]

Senator CONRAD. So today I say to you I believe the record has

been made on each of those issues in this hearing, and we will take
37

that—the result of this hearing to the U.S. Congress and seek our

very best to get results in all of that unfinished agenda. Thank you

very much.

[Applause.]

Mr. HALL. Thank you.

[Whereupon, at 12:04 p.m., the committee was adjourned, to reconvene at the call of the Chair.]

(39)

APPENDIX

ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD

PREPARED STATEMENT OF CORA JONES, DIRECTOR, GREAT PLAINS REGION, BIA,

DEPARTMENT OF THE INTERIOR

Mr. Chairman, I am pleased to be here to discuss the Three Affiliated Tribes Economic Recovery Fund provisions of Title XXXV of Public Law 102–575, the ‘‘Three

Affiliated Tribes and Standing Rock Sioux Tribe Equitable Compensation Act’’, an

act to ensure that the Three Affiliated Tribes of Fort Berthold and the Standing

Rock Sioux Tribe, were adequately compensated for the taking of Indian lands for

the site, of the Garrison Dam and reservoir, and the Oahe Dam and Reservoir, and

for other purposes.

The act established the Three Affiliated Tribes Economic Recovery Fund in the

United States Treasury. Sources for this fund are derived from the revenues generated in the Eastern Division of the Pick-Sloan Missouri River Basin Project and

Congressional appropriations with a maximum limit of $149,200,000. Since only the

interest from this fund is available for payments to the Tribes by the Secretary, the

Act requires interest to be deposited into a separate account. The act also limits the

use of these payments by the Three Affiliated Tribes for educational, social welfare,

economic development, and other programs, subject to the approval of the Secretary.

The approval authority was delegated to the Bureau of Indian Affairs Regional Director for the Great Plains Region.

Until January of this year, the Three Affiliated Tribes submitted their individual

requests for funds to the Regional Director, through the Fort Berthold Agency Superintendent. These requests were reviewed for compliance with the act, approved

as appropriate, and coordinated with the Office of Trust Funds Management

(OTFM) for funds distribution.

On January 12, 2001, a general plan was approved by the Regional Director entitled the ‘‘Three Affiliated Tribes Economic Recovery Fund Proposal’’ (Plan). The

Plan outlines the tribes’ proposed uses for the interest fund. The Plan has been

shared with the OTFM. Upon BIA’s authorization of each funding request that is

in compliance with the Plan, the request will be promptly forwarded to OTFM for

processing. Funding requests outside of the Plan will require modification(s) and/or

amendment (s) to the Plan and will need to be submitted by the tribe to the Regional Director for approval prior to the BIA forwarding the funding request and

modified and/or amended Plan to OTFM for processing.

The approved Plan was established in consultation with the tribes.

This concludes my prepared statement. I will be happy to answer any questions

the committee may have.

PREPARED STATEMENT OF FREDERICK BAKER

Thank you for the opportunity to present some thoughts regarding the present

state of health care and some recommendations for needed changes in our present

system of health care delivery.
40

I am retired after 27 years of Federal service, including 23 years with the Indian

Health Service, 17 years of which I served as a service unit director. The last 9

years of my Federal career where spent here at Fort Berthold where I served as

Service Unit Director of The Fort Berthold Service Unit of the Indian Health Service.

Prior to our contacts with the White Man, we were able to take care of our health

needs. In terms of the rest of the world, we had remedies for injuries and illnesses

that were in many cases superior to those available to our European counterparts.

We learned to use what nature/Mother Earth provided for us, to treat illnesses and

injuries of all types. Our life style allowed us to be healthy because we had to be

in great physical condition, and the foods that we ate were healthy. Our culture was

such that we lived in harmony with our surroundings so that mental health problems were virtually non-existent.

In 1781, we contracted the European disease of smallpox. This disease was totally

unknown to us therefore we had no defense and no cure. We literally lost thousands

of people. It is reported that the Mandans, for example, were reduced from 13 villages composed of a few thousand in each village to only 2 villages. They eventually

joined the Hidatsa in the area commonly known as the Knife River Villages near

the present town of Stanton, ND. The two tribes composed of 2 Mandan and 3

Hidatsa villages and numbering about 20,000 (larger than St. Louis, MO at the

time) were at Knife River when the Lewis and Clark expedition visited them.

In 1837, the second major epidemic of smallpox hit the ‘‘five’’ villages. The estimates are that only 20 percent of the Mandans, and 30 percent of the Hidatsas survived the epidemic. Among the casualties was the famous Mandan Chief, Four

Bears. We also lost many of our ‘‘medicine people, our medicine bundles, and our

way of life. The orderly transition and preservation of culture, history, healing, leadership, et cetera from one generation to another was lost.

Besides the effects of diseases such as, smallpox, we lost our strength as tribes,

and hence became more vulnerable to our enemies. Further, the encroachment of

the White People’s western migration, the increase in the numbers of other tribes

that were ‘‘pushed’’ into our traditional hunting territories, and the slaughter of the

buffalo by the buffalo hunters changed our lifestyle. However, through our resilience

and adaptability, we survived and changed, and kept our culture alive.

We were forced into the confines of the Fort Berthold Reservation beginning in

1865. Despite the many problems that this created, we continued to raise gardens,

and became livestock owners and farmers, settling in homogeneous communities

known as Independence, Nishu, Red Butte, Lucky Mound, Shell Creek, et cetera.

In the agency town of Elbowoods, we had a hospital, which met the health needs

of our people at the time. Many of us were born there, including myself. Many of

us went there to get cured from things like ear infections, pneumonia, injuries, and

had surgery for things like appendixes, tonsils, and other basic surgeries. Our biggest disease problem in those days was tuberculosis. Many families took care of children of relatives who were sent to the various sanitariums for TB. This was the

days before antibiotics.

The Garrison Dam came along in the 40’s and changed our lifestyle again. The

‘‘River’’ that was such a part of our lifes and provided us with shelter, fertile ground

for our gardens, and pastures for our livestock, not to mention a lifestyle and culture that stood for a fierce independence, and self reliance was over. The communities that we so successfully built since we were forced on the reservation, and the

strategies that we developed to solve our own problems, and rely on each other was

ended. Our neighborhoods were literally uprooted and dissolved, The result was

chaos, despair, and the introduction of hopeless poverty. Alcohol became rampant

as an attempt at curing the hoplessness, and despair that many people felt. Lifestyles for many changed from activity to sedentary, and diets became a diet of

‘‘grease’’ and ‘‘starch’’.

As a result of these things, and their impact on us as a People, we now are among

the world leaders in diabetes and its complications; alcoholism and its effects on

people and families; heart disease; injuries; cancer; and mental health problems.

We don’t have a hospital anymore, it was lost as a result of the Garrison Dam.

It was replaced by an outpatient clinic in Four Bears and satellite clinics at White

Shield, Mandaree, and Twin Buttes. The clinic space is inadequate to meet the

many needs of our reservation. We have no full-time dentist.

We have a vision for a new clinic that can provide needed services of not only

our people but our neighbors on and near the reservation. We see a building that

can be adequately built to accommodate such needed services as 24-hour emergency

care; ambulatory care surgery; preventive services such as health education and exercise facilities; overnight patient observation capability; specialty clinic space, adequate clinic space.
41

Although JTAC was funded, it was not sufficient to meet the needs that resulted

from the terrible losses of infrastructure of the Garrison Dam. We need additional

funding for a new adequate sized clinic. We are making progress toward being selfsufficient, however, there are some vitally needed things that we need help with and

that will ultimately help us to become self-sufficient. We need help in getting and

maintaining good health, and a new clinic is a large step in realizing this goal.

PREPARED STATEMENT OF TONY MANDAN, TRIBAL ELDER AND MEMBER, MANDAN,

HIDATSA, AND ARIKARA TRIBES

Good Morning. My name is Tony Mandan; I’m a member of the Three Affiliated

Tribes. I want to talk today about the unkept promises of the Government and why

we are asking for this JTAC II money. On September 17, 1851, 150 years ago, my

great grandfather Red Buffalo Cow signed the Fort Laramie Treaty for the

Mandans. We were promised things in that Treaty, just as we were promised things

when the Government flooded our homelands for this Garrison Diversion Project.

The Garrison Diversion Project is not just a project to me; it’s my homelands. It’s

where my ancestors lived and are buried. I’ll talk about a few of the things we were

promised when our homelands were flooded.

The tribal business council was forced to sell our land. They didn’t want to sell

but the Government came in and condemned the land and forced us to sell. Our

land was prime bottom land. We could farm the land. We had coal and wood to heat

and cook with. We had wild berries, fruit and wild turnips to pick and use for food.

We also had alfalfa and sweet clover for our animals to feed on in the wintertime.

It was so rich we needed only one-half ton to feed our animals compared to 2 tons

of feed today. The river would flood and cover the lands and that was a way to enrich the land and a form of irrigation.

We never wanted to sell our lands and move. The Army Corps of Engineers forced

us to move. What value do you put on your mother? How can you sell your mother?

They could never pay us enough for the land. Our forefathers are buried there; their

bones are still there. They were never recovered.

We lost more than our homes. We lost schools. We had schools and a dorm for

students to stay while they went to school. We lost everything. How can you repay

us for that?

We had schools and dorms for the high school kids to live in while they went to

school. High school students stayed there. They came from the districts. We had

eight districts then: Elbowoods, Nishu, Red Butte, Independence, Lucky Mound,

Beaver Creek, Charging Eagle, and Shell Creek.

We got along well with each other in the day schools and high school. All the different districts got along with each other. We were one tribe so to speak, even

though we were three tribes. We all got along as one. We lost that. Today, we’re

not so competitive together as we were then. Even in our basketball and football

games we never lost a game. The schools represented our people well. Today, we

play against each other. We need to all come together again and we can be champions.

We had a hospital and we lost that when we were flooded. Now we have a Health

Center and a doctor, but they still send us to Minot and other towns for our health

care. That’s a long ways away when you’re sick. We need an Emergency Health

Care Center (critical care center), even if its one bed. Now we have nothing. We

have no emergency equipment or ambulance or anything. We’re not considered an

emergency health center. Doctors could save lives, they could stabilize those that

need emergency care and then send them on to other facilities. We need a first class

health center. My wife is diabetic and I have to drive her to Minot twice a week.

We shouldn’t have to do that. It’s to late for us senior citizens but we need this for

our children so they can get a good start in life. We need additional dollars to improve on our health. We need a health care facility to replace the hospital we lost

because of the flooding. If we had a helicopter to bring injured people here it would

help. The way it is now, they have to drive miles to a health center and many times

IHS won’t pay the medical bills because they never went to the IHS clinic first. Your

credit is ruined. So a lot of people don’t go to a doctor till their real bad sick.

We’re supposed to get free electricity from the dam. I haven’t gotten it yet. I’m

not aware of anyone getting free electricity yet. The electric companies get free electricity. I don’t know how much they get. I’m still paying the get amount I have for

years. Nothing has changed now.

Pesticides were put on the land and drained into the lake. They contaminated the

fish and made the water unfit for drinking. It has minerals in it. The water west

of here has sulfer in it that causes diarrhea—it’s dirty and brown. The oil wells
42

cause problems in the water. We need the MR&I project. We have to haul water

from New Town, ND. We need water for the outlying district, Before this lake was

created the water was moving and it cleansed itself. That’s changed now.

There is no way, we could be paid for the land because of value we put on our

homelands. We didn’t want to sell. A lot of the elders died from loneliness and

homesickness. Families and friends were torn apart. We couldn’t see each other anymore and visit like we used to. It’s to late for us senior citizens. Many of us have

diabetes, but we need to think of our children. We were all sent to different towns

and that was really a hardship. We had no social security or even welfare was hard

to get. So we really need this money.

Through the years, you made many treaties and promises to us. You took our land

away. You were the people who put a value on the land. We didn’t. We were forced

to sell and to move because you said civilized people needed land for roads and such.

You never considered that we are all one family. Like the fish, you contaminated

them with pesticides. You killed them. Our people are like that. A lot of them can’t

make it on top. We get maybe one good crop and then nothing. Everything was natural and you forced us to move. The first JTAC didn’t address everything, so that’s

why we need this JTAC II to compensate us for our schools, hospital and all the

other problems that flooding us out has caused.

Those are my comments. That’s all I have to say.

PREPARED STATEMENT OF ELISE PACKINEAU

Senator Conrad:

As an enrolled member I am very concerned as the spending of the JTAC funds.

Please accept this statement for the record and testimony relating to the Three Affiliated Tribes Recovery Fund. I understand that the recovery funds were to enhance

and supplement the various programs and needs that address health, education, social, and economic development.

I thought it was wonderful that the Tribal Business Council in 1998 or thereof,

were involving the general population and their input with the JTAC budget. However, shortly after the people of the Fort Berthold were informed that the budget

that had been so carefully thought out and planned by the people would be dissolved. Early in 2000 the Tribal Business Council stated they would then implement

their own plan and budget.

Since this time I have been disheartened regarding numerous decisions that the

council has made. One of which to invest 25 percent or 50 percent of $30 million

via a referendum vote. Sufficient time and notification was not given to the general

public. No explanation or assistance offered to the elderly. We were not even given

the opportunity to decide ‘‘yes’’ or ‘‘no’’ if the JTAC funds should be invested or not.

To this day we have no idea what investment venture was taken.

The purchase of a ranch that has no return investment since the purchase, no

report of any returns has been made public.

Each year a budget is approved for various buildings on the Fort Berthold Reservation, one of which a commitment was made for a new Commodity Warehouse.

Funds were set aside in the budget. It is now going on 2 years and there still is

not a warehouse. Where was the money spent that was budgeted for this warehouse?

Numerous travel expenses by the Tribal Business Council, no trip reports or documentation made available to the enrolled members or results of trips. Often times

when inquiring about the whereabouts of the council, very limited information is

given.

Due to the closure of the Kidney Dialysis Unit, patients’ request for travel, mileage and per them were constantly scrutinized. On several occasions the patients

were only given $5.00 per meal for lunch and dinner, and told that the hotel would

provide continental breakfast. Continental breakfast consists of sugar pastries, not

a recommended diet for a diabetic, especially on dialysis. Many of the patients are

elderly and only the elderly who were 60 and over were allowed assistance who requested overnight lodging.

My last concern is in regards to the Mandan Hidatsa Arikara Elders Organization. This organization was allocated $1 million, of that only $650 actually goes to

the elderly in a 1-year span, this is totally inadequate given the nature of their

health situation. Other services include, dentures, glasses, safety equipment. The remainder is spent on overhead cost. $300,000 was taken from the Elders Organization budget without the approval or proper documentation from the MHA Board of

Directors, the money was to go toward the purchase of two modular homes for each
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district, 6 districts, 12 homes total. To date the modular homes are still sitting on

the site where they were made.

Thank you for the opportunity to voice my concerns regarding the expenditures

of the JTAC funds. I have many other issues, however, for the sake of time I will

conclude here. Please contact me if you need documentation, proof and verification

of the statements that I have made regarding JTAC funds.

PREPARED STATEMENT OF BERNADINE YOUNG BIRD, ADMINISTRATOR, THREE

AFFILIATED TRIBES EDUCATION DEPARTMENT

Dosha. Good Day, Senator Conrad. My name is Bernadine Young Bird. My

Hidatsa name is Sacred Tree (Cedar) Woman. I am the Administrator of the Three

Affiliated Tribes Education Department. I am also the Director of the Special Education Office, I am an enrolled member of the Mandan, Hidatsa, and Atikara Nation. I have been a teacher, special education teacher, and education administrator

for 23 years. I am a parent of three sons. Two of my sons Robert and Duane have

served honorably in the Marines and are now working and going to the Fort

Berthold Community College. My youngest son, Justin, has just turned 13 and is

attending New Town Middle School. I am also a doting grandparent of three wonderful grandsons. I am, also, an active and supportive community member.

I am providing written testimony today to share with you and your committee

about the educational needs that I have observed and experienced through my work

and my personal life in the educational system of the Fort Berthold Reservation.

First, the life we live today on the Fort Berthold Indian Reservation is a much

different than in the early fifties. The geography of the area of the Elbowoods; era

helped define much of what the social and economic life would be in the Pre-Garrison Dam period. The community was more cohesive and insulated. Today, there are

six distinct communities in six different geographical areas of the reservation. The

Garrison Dam destroyed the independent and thriving tribal way of life by the,

flooding of the heart of the reservation that was Elbowoods. It left a terrible open

wound and left in its wake a separated land base and a traumatized people. This

dramatic impact can never be measured in full but it clearly traumatized our people

so deeply that recovery and Adjustment is still going on today.

The Garrison Dam project greatly impacted and has changed our reservation and

our people forever. The needs today, as a result, are very different from the

Elbowoods days. In education, for instance, Elbowoods functioned well with the one

community school and dormitory. Today, education includes early childhood (Head

Start, Early Start, Healthy Start and Child/Day Care Needs) to adult (GED, Community Education, Voctech Training, College) to better meet the changing modern

and complex society and culture of today. Fort Berthold has 6 Head Starts to serve

163 children. However, there are an additional 500 plus children birth to 5 that

have early childhood and childcare needs. The early childhood needs include the

need to build quality state-of-the-art facilities to better meet the needs for positive

and quality early childhood experiences. We have five K–12 schools serving the six

communities, The school facilities on Fort Berthold are in critical need of replacement and expansion for the growing needs and increasing population. One common

need of Early Childhood and our schools is the need for replacement facilities.

The Fort Berthold Community College has the first two phases completed for its

facility needs. The classrooms, library, and other space needs have recently been

built. However, additional space needs for offices, gym, day care, single, married,

housing, and more are already being identified.

Early Childhood

Head Start-six ‘‘state-of-the-art’’ Early Childhood Centers-Day Care/Early Childhood Centers-eight centers 3 for New Town, 1 for each of the other 5 communities.

These centers will be open to workers, students and the public.

K–12 Schools

Mandaree, White Shield and Twin Buttes are in dire need of replacements for

their facilities. They have outlived their lifespan from the 1950’s. These Public Law

100–297 Tribal Grant Schools are Bureau of Indian Affairs funded and have submitted requests through the BIA process but without success. The Fort Berthold Indian

School Boards Association is submitting more detailed testimony regarding their

status. I support their request and testimony to replace and strengthen the current

schools with new facilities and added resources for supplementing needed services

for students.

Fort Berthold Community College
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The Fort Berthold Community College is continuing in the effort to enhance and

expand their facilities and student services to better meet the needs of the adult

population. The college continues to need resources for the day-to-day services and

management, The staff and board have an ongoing effort to access the needed resources for improvement and expansion. Increased funding to tribal colleges is still

a critical need.

The priorities for Education on Fort Berthold, therefore, are for facilities that will

be adequate to serve the many needs, such as counseling, social, and cultural, of

all students.

If the Three Affiliated Tribes, the Mandan, Hidatsa, and Arikara, are to survive

it will be through a viable, effective, and appropriate education system. Besides the

critical need for adequate and safe facilities, the tribal education system will need

to continue its work to ensure that every citizen has an opportunity for a worldclass education. Equally important will be our efforts to integrate the native languages and culture into all levels of education. Finally the education system will

carry on the importance of civic responsibilities to our Nation for the perpetuation

of the ideals and values we hold dearly.

Mahsahgidahds. Thank you for this opportunity to submit my testimony.

PREPARED STATEMENT OF PHYLLIS OLD DOG CROSS

Senator Conrad: This is my written testimony as part of the field hearing held

by the Committee on Indian Affairs by Senator Conrad on funding authorized by

the Three Affiliated Tribes and Standing Rock Sioux Equitable Compensation Act(

Title 35 of Public Law 102–575) often called JTAC.

I am glad you held this hearing because I am concerned about the expenditures

of the money without involving the people in the decisionmaking. Large amounts

of money have been obligated to the Figure Four Ranch, the Twin Buttes Manufacturing Company and to expansion of the Casino. I am concerned that funds are not

allocated for health care, children and education. When community hearings were

held regarding the JTAC funds the top priority for all was health.

We have found that the people have no voice and no power with our current Constitution. Until that is faced and corrected, we will continue to have problems. At

present, planning and sound fiscal management are absent. There have been no audits conducted, there is no personnel system, and certainly over all management has

no accountability which results in chaos.

Tribal Business Council

My testimony is that I am concerned about the Tribal Business Council spending

large sums of JTAC funds on projects such as the Figure 4 Ranch and the Twin

Buttes Housing. This was one of the first actions when Chairman Hall took office.

There was no appraisal available. Neither were a plan or audit presented. When

this amount of funds are committed with peoples’ funds, a referendum should be

used. Our Regional Director acting for the Secretary was responsible to question the

action before signing off on the transaction. She is our Trustee.

JTAC funds are described as moneys that belong to the people, yet the draw down

of these funds and expenditures are handled entirely by the Tribal Council and

some Consultants behind closed doors. Under Chairman Mason’s administration, a

people’s committee was authorized by Resolution to develop a People’s Plan to set

priorities, schedules, and services to meet the needs of the people. The plan was

completed and submitted to Tex Hall and the Tribal Council. It was rejected. The

Committee was dissolved. An outside Consultant was employed by the Council. He

wrote the plan which was submitted to the Department of the Interior. The people

have never seen it.

We strongly recommend that the people be involved in the total planning process,

as well as approving expenditures and seeing audits.

Lack of Management

My Testimony is that I am concerned by the lack of management that is observed

in Tribal Government organization and practice. There is a need for plain old fashioned rules for accomplishing goals. The Council itself is not organized enough to

accomplish much of anything. There is no delegation of authority or delegation of

work in order to have a well functioning organization. The council uses committees

but there are no committee reports or recommendations. The minutes are usually

very slow in being approved, sometimes months late. Records and Archives are not

safe, and minutes and resolutions are misplaced.

The agenda and council meeting are filled and choked with minutiae. Each item

is discussed, even it is paying someone’s motel bill to whether a sun dance is a religious ceremony. All, that is ALL, of the personnel issues are handled by the Council.
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Some issues are discussed as long as 4 hours, then tabled. Very important issues

and decisions can be made in a few minutes. The methods of voting are chaotic with

abstentions, not voting or leaving the room during a vote. It has been recommended

many times to have roll call voting so that constituents can know how their representative votes. Council meetings can last ALL night. This practice is hard on Elders, sick persons, and people who drive 200 miles to attend.

The employees are delegated little authority, can be fired by only the council and

are not accountable. The money wasted and equipment wasted counts up. It is the

Tribes most desirable welfare system available. Change in our Constitution is needed.

Ethics

It is my testimony that our tribal government, elected leaders and tribal employees could benefit from the injection of some ethics into the entire management system of tribal government. It seems a shame that one must reach a point where ethics must be observed in a written directive. But we seem to have lost the way to

respect ourselves and others. The elders have always been charged with showing the

good way but even that task is ignored. As a result we have become a miserable

bitter and unhappy group. Our lack of ethical practice has contributed to poor management, disrespect, and an illness of the soul.

In order to accomplish a return of ethics, it will have to be part of the revision

of the Constitution. Our Constitution is silent about ethics and leaves the responsibility to the elected officials themselves to be a part of ethics. The Constitution

must be revised. It no longer is powerful enough to handle the officials and others.

In 1935, we had strong leaders and clans, but now they are weak.

Some of our elected officials and members have seen that ethics must be adapted

and made to be an inherent part of governing. We need to face the whole issue of

corruption. We need to make sure the strong ones do not exploit the weak. We need

a court system that is fair. We need a press that is free and can report the truth.To

get that we must distribute the power of the Tribal Government, to set limits and

define limits. The Constitution is the vehicle of the people to deal with elected officials.

Health Care

This is my testimony regarding the need for health care by the Three Tribes. We

had a hospital in Elbowoods, it wasn’t fancy but it fit the times. We had a doctor

and nurses and other needed services. It was built in 1936 and closed in 1948 pending the flood. It was at that time, that responsibility for health care for Indian people was transferred from BIA to the United States Public Health Service, under

DHEW. It is ironic that health service was still the responsibility of a quasi-military

organization with the staff in uniforms and with rank. We cannot get away from

the military. By then Dr. Herbert Wilson reported in to Fort Berthold at Elbowoods

and began a BIA clinic. The BIG Move was made about 1952 and the Agency was

located in New Town. The DHEW—IHS began to provide health service through

contract care. No hospital was built to replace the old one. A day clinic was built

in 1962. It provided only minimal services. Small clinics were located in out lying

areas.

From the beginning there never seemed to be enough staff to meet the demand.

The population increased, health problems grew. As with the general population,

cost of health care spiraled up and up. The statistics of morbidity and other health

issues showed that the population of the Three Tribes had some problems that are

the worst in the Nation. The problems of LIFESTYLE are overwhelming. Depression since the move is epidemic, diabetes is affecting all, cancer is increasing. The

addiction to alcohol and other drugs as well as tobacco is growing. Gross malignant

obesity is the norm. Suicide is a major problem.

The people have let the council know that health care is the No. 1 need. An extensive study was completed about 4 years ago. But the plans for health care are

pushed back in favor of Casinos and Ranches. We need health care that is free of

politics. We need a Health Authority that can determine needs that cannot be sabotaged by the Council. We need emergency health care of high quality including ambulance service, we need after hours clinic care. We need a detox center. Elders

need medical cards or insurance and we need a larger facility to provide health services in eluding mental health care. But this is not possible until we can develop a

Constitution that gives power to the people.

Constitution

It is my testimony, that before anything can be accomplished as far as JTAC is

concerned the Three Tribes NEED a new Constitution. The one in 1935, was adequate for the times, but it is missing a lot. It gave the people the power to have
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a democratic say in dealing with their government but it didn’t provide the people

with weapons. It gave absolute power to the Council with no recourse. In essence

the Council can do just as it pleases with sanction from the Secretary. The Council

has the power to interpret the Constitution, and can change their minds to meet

their needs. It controls the judge, it controls law and order and can affect the out

come of lawsuits. The Regional Director (Secretary) is influenced by the Council and

is easily swayed by their demands. A good example is the fiasco of leases last year.

The person who suffered is the land owner who received no check from their lease.

The Council controls every job on the reservation. Even the most lowly of jobs

doesn’t escape their scrutiny. The people have joined in with their council to gather

as much of the spoils that they can.

Just as with management issues, Councilmen rarely have any experience or

knowledge in management of workers, systems or budgets. Their ability to insure

accountability is weak. They have had no experience with Constitutional Government, managing a board or business, Personnel systems are non existent.

If we do not do something about our Constitution as well as management, our system will crumble. Now we are dealing with millions. These millions belong to the

people not the council.
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Æ