[Federal Register Volume 71, Number 161 (Monday, August 21, 2006)]
[Proposed Rules]
[Pages 48626-48645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6852]



[[Page 48625]]

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Part III





Department of the Interior





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Bureau of Indian Affairs



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25 CFR Part 224



 Tribal Energy Resource Agreements Under the Indian Tribal Energy 
Development and Self-Determination Act; Proposed Rule

Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / 
Proposed Rules

[[Page 48626]]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 224

RIN 1076-AE80


Tribal Energy Resource Agreements Under the Indian Tribal Energy 
Development and Self-Determination Act

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Proposed rule.

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SUMMARY: The Department of the Interior, Bureau of Indian Affairs, 
proposes to amend its regulations by adding a new part to provide for 
Tribal Energy Resource Agreements (TERAs) between the Secretary of the 
Interior (Secretary) and Indian tribes under Section 2604 of the Indian 
Energy Resource Development and Self-Determination Act. The proposed 
regulations provide the process under which the Secretary will grant 
authority to an Indian tribe to review and approve leases business 
agreements and rights-of-way for specific energy development activities 
on tribal lands through an approved TERA. The Department invites your 
comments on the proposed rule.

DATES: Submit comments by September 20, 2006. We may not fully consider 
comments received after this date.

ADDRESSES: You may submit comments on the rulemaking by any of the 
following methods. Please use the Regulation Identifier Number (RIN) 
1076-AE80 as an identifier in your message. See also Public Comment 
Procedures under Procedural Matters.
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> E-mail IEED at <a href="/cdn-cgi/l/email-protection#5f161a1a1b1f3d363e713a3b2a"><span class="__cf_email__" data-cfemail="29606c6c6d694b4048074c4d5c">[email protected]</span></a> and use the RIN 1076-AE80 in 
the subject line.
    <bullet> Fax: 202-208-4564. Identify with the RIN 1076-AE80.
    <bullet> Mail or hand-carry comments to the Department of the 
Interior, Office of Indian Energy and Economic Development, Room 20--
South Interior Building, 1951 Constitution Avenue, NW., Washington, DC 
20245. Please reference RIN 1076-AE80 in your comments and also include 
your name and return address.
    <bullet> Comments on information collection are separate from 
comments on the rule and must be addressed separately. Send comments on 
the information collection in this rule (1076-AE80) to: Desk Officer 
for the Department of the Interior, Office of Management and Budget, by 
facsimile at (202) 395-6566 or e-mail: <a href="/cdn-cgi/l/email-protection#ee81879c8fb18a818d858b9aae81838cc08b819ec0898198"><span class="__cf_email__" data-cfemail="315e5843506e555e525a5445715e5c531f545e411f565e47">[email protected]</span></a>. Please 
also send a copy of your comments on the information collection to 
Office of Indian Energy and Economic Development, Room 20--South 
Interior Building, 1951 Constitution Avenue, NW., Washington, DC 20245. 
Please reference RIN 1076-AE80.

FOR FURTHER INFORMATION CONTACT: Darryl Francois, Program Analyst, 
Office of Indian Energy and Economic Development, Room 20--South 
Interior Building, 1951 Constitution Avenue, NW., Washington, DC 20245, 
Telephone (202) 219-0740 or fax (202) 208-4564.

SUPPLEMENTARY INFORMATION: The Secretary of the Interior is issuing 
this part under authority of the Indian Tribal Energy Development and 
Self-Determination Act of 2005, Pub. L. 109-58, 119 Stat. 763, 25 
U.S.C. 3501-3504, and 25 U.S.C. 2 and 9.
    Title V, Section 503 of the Energy Policy Act of 2005 (Pub. L. 109-
58) amends Title XXVI (Indian Energy) of the Energy Policy Act of 1992 
to require the Secretary of the Interior (Secretary) to promulgate 
regulations that implement new provisions concerning energy resource 
development on tribal lands. Specifically, the Indian Energy 
Development and Self-Determination Act, Title XXVI, Section 2604 of the 
Energy Policy Act, as amended, authorizes the Secretary to enter into 
TERAs with Indian tribes. The intent of these agreements is to promote 
tribal oversight and management of energy and mineral resource 
development on tribal lands and further the goal of Indian self-
determination. A TERA offers a tribe an entirely new alternative for 
entering into energy-related business agreements and leases and for 
granting rights-of-way for pipelines, electric transmission and 
distribution lines without the Secretary's review and approval.
    The proposed regulations provide that entering into a TERA requires 
a tribal application and Secretarial determination of a tribe's 
capacity to manage the full scope of administrative, regulatory, and 
energy resource development a tribe proposes to assume under an 
approved TERA. In addition, the Act requires that a TERA include 
provisions that cover environmental compliance measures and a process 
for review of any potential environmental impacts to areas affected by 
activities that the tribe could approve under the TERA. The TERA 
regulations must also provide a process for interested parties to 
challenge a tribe's non-compliance with terms of an approved TERA and 
for the Secretary to take necessary actions to protect trust resources 
if activities undertaken under an approved TERA cause or will cause 
imminent jeopardy to a trust resource.
    The Act became law on August 8, 2005 and requires the Secretary to 
establish and implement regulations governing the TERA approval process 
within 365 days of its passage. In addition, the implementation of 
these regulations will further the Federal Government's policy of 
providing enhanced self-determination and economic development 
opportunities for American Indian tribes and support the national 
energy policy of increasing utilization of domestic energy resources.
    Under the Act, the Department held a series of public meetings and 
tribal consultations in January 2006 to solicit stakeholder and tribal 
comment on the implementation of the Act. In addition, the Department 
in two letters to tribal leaders solicited direct involvement of tribes 
in drafting a framework for development of these proposed regulations.
    Written and oral comments in public meetings with stakeholders 
identified several concerns that the Department considered in drafting 
the proposed regulations. Three issues raised the most concern: tribal 
capacity determination by the Department, TERA-authorized activity on 
fee land held by tribes; and environmental review of proposed and 
ongoing activities authorized by a TERA.
    The Act requires that the implementing regulations include criteria 
the Secretary will use to determine the capacity of a tribe. These 
include the tribe's experience managing natural resources and 
administrative and financial resources that will be available to it 
when implementing an approved TERA; a process and requirements under 
which a tribe may voluntarily rescind a TERA and return to the 
Secretary the review and approval authority for future leases, business 
agreements and rights-of-way for energy resource development; a scope 
of and provisions for periodic review and evaluation of a TERA, 
including provision for review of transactions, reports and site 
inspections and any other review processes the Secretary deems 
appropriate; and provisions for final agency actions after exhaustion 
of administrative appeals of Secretarial decisions.
    In drafting the proposed regulations the Department has diligently 
attempted to conform to the provisions of the Act to include provisions 
for the items the Act states must be included in the

[[Page 48627]]

regulations and to address concerns that arose during the consultation 
process.
    With respect to a capacity determination, the proposed regulations 
include a provision for tribes considering entering into a TERA 
agreement to go through a pre-application process designed to provide a 
preliminary analysis of the type of expertise necessary to manage 
particular types of energy resource development projects. In addition, 
tribes as part of the TERA application process must outline the level 
of expertise they possess to manage the energy resource development 
projects within the scope of the proposed TERA or how they would 
acquire the needed expertise. The Department welcomes comment on 
whether these provisions are sufficient to allow the Secretary to 
determine tribal capacity to develop energy resources.
    The proposed regulations adopt the definition of tribal lands 
contained in the Act. However, some tribes suggest that a more 
expansive definition that includes real property held in fee by a tribe 
regardless of location would potentially create more economically 
robust development projects. The Department welcomes comment on whether 
to include this definition of Tribal land in the proposed regulations. 
The suggested language for a definition of tribal land is as follows:
    Tribal land means those lands for which the Secretary has 
determined that interests in real property held in fee by a tribe and 
located outside of Indian Country, as defined in 18 U.S.C 1151, are not 
subject to a restriction on alienation, unless otherwise specifically 
imposed by Congress. Should a final, non-appealable decision of a court 
of competent jurisdiction invalidate the Secretary's determination that 
such land is not subject to a restriction on alienation and conclude 
such land is subject to a restriction on alienation, this definition of 
Tribal land will include real property held in fee by a tribe, 
regardless of location, except in those instances in which Congress has 
removed the restriction on alienation.
    The proposed regulations also include provisions that require 
tribes seeking approval for a TERA to demonstrate their capacity to 
identify and evaluate all significant environmental effects and 
reasonable mitigation measures, including those related to cultural 
resources. The Department welcomes comment on whether these provisions 
are sufficient to allow the Secretary to determine tribal capacity to 
develop energy resources.

Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and does not require review 
by the Office of Management and Budget under Executive Order 12866. 
These regulations create a process that will allow tribes to enter into 
an agreement with the Department intended to promote tribal oversight 
and management of energy and mineral resource development on tribal 
lands. The approval of a Tribal Energy Resource Agreement will, not, by 
itself, result in energy development related leases, business 
agreements, or rights-of-way. Therefore, this proposed rule will not 
have an effect of $100 million or more on the economy and will not 
adversely affect in a material way the economy, productivity, 
competition, jobs, the environment, public health or safety, or state, 
local, or tribal governments or communities.
    By implementing the provisions of the Act, these regulations will 
further the goal of Indian self-determination that is a longstanding 
goal of the Federal Government and the Department and so will not 
create serious inconsistency or otherwise interfere with any action 
taken or planned by another agency or raise novel legal or policy 
issues. This proposed rule does not interact with entitlements, grants, 
user fees, or loan programs so it will not affect any such programs or 
the rights or obligations of their recipients.

Regulatory Flexibility Act (RFA)

    The Department certifies that this proposed rule will not have a 
significant economic effect on a substantial number of small entities 
as defined under the RFA (5 U.S.C. 601 et seq.). Most of the costs for 
complying with this proposed rule would be information collection 
costs. The total estimated annual burden hours for responding to the 
information collection requirements in this proposed rule are 10,752. 
Respondents to the information collection required by these regulations 
would need to acquire the services of individuals in the project 
management and energy, environmental, financial and legal analyses 
fields as well as administrative service staff. The annual non-hour 
burden associated with the proposed regulations is $48,200 for office 
and maintenance expenses associated with preparation of reports and a 
variety of correspondence. When added to the salary and benefits for 
personnel, the annual industry-wide cost for the information collection 
burden in this proposed rule would be about $375,795. Therefore, 
complying with ``Part 224--Tribal Energy Resource Agreements Under the 
Indian Tribal Energy Development and Self-Determination Act'' should 
not be a significant financial burden. For a proposed rule with these 
relatively low projected costs, a Regulatory Flexibility Analysis is 
not required. Accordingly, a Small Entity Compliance Guide is not 
required.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards will 
consider comments from small businesses about Federal agency 
enforcement actions. The Ombudsman annually evaluates each agency's 
responsiveness to small business. If you wish to comment, call toll-
free 1-(888)-734-3247.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This proposed rule is not a major rule under SBREFA (5 U.S.C. 
804(2)). This proposed rule:
    (a) Most of the costs for complying with this proposed rule would 
be information collection costs. The total estimated industry-wide cost 
for the information collection burden in this proposed rule would be 
about $375,000. Therefore, the proposed rule will not have an annual 
effect on the economy of $100 million or more.
    (b) The approval of a Tribal Energy Resource Agreement will not, by 
itself, result in energy development related leases, business 
agreements, or rights-of-way. Therefore, the proposed regulations will 
not cause a major increase in costs or prices for consumers, individual 
industries, federal, state, or local government agencies, or geographic 
areas.
    (c) Because the proposed regulations do not directly result in 
energy resource development projects, they will not have significant 
adverse effects on competition, employment, investment, productivity, 
innovation, or the ability of U.S.-based enterprises to compete with 
foreign-based enterprises.

Unfunded Mandates Reform Act (UMRA)

    Participation in the development of Tribal Energy Resource 
Agreements as outlined in these proposed regulations is voluntary. In 
addition, there are regulatory alternatives for tribes that want to 
develop energy resources on tribal lands, but they may not want to 
develop a TERA. Furthermore, the proposed regulations will not result 
in the expenditure by the state, local or tribal governments or private 
sector of

[[Page 48628]]

$100 million or more in any one year. Therefore, these proposed 
regulations do not impose an unfunded mandate on state, local, or 
tribal governments, or the private sector, of more than $100 million 
per year, and the proposed regulations do not have a significant or 
unique effect on state, local, or tribal governments, or the private 
sector. A statement containing the information required by the UMRA (2 
U.S.C. 1531 et seq.) is not required.

Federalism (Executive Order 13132)

    According to Executive Order 13132, these proposed regulations do 
not have Federalism implications. While these regulations are of 
interest to tribes, there is no federalism impact on the trust 
relationship or balance of power between the United States government 
and the various tribal governments affected by this rulemaking. 
Therefore, the proposed regulations do not substantially and directly 
affect the relationship between the Federal and State governments, and 
would not impose costs on states or localities and so do not require a 
federalism assessment.

Civil Justice Reform (Executive Order 12988)

    With respect to Executive Order 12988, the Office of the Solicitor 
has determined that this proposed rule would not unduly burden the 
judicial system, and meets the requirements of sections 3(a) and 
3(b)(2) of the Executive Order.

Paperwork Reduction Act (PRA)

    This proposed rule contains a collection of information that has 
been submitted to the Office of Management and Budget (OMB) for review 
and approval under section 3507(d) of the PRA. As part of our 
continuing effort to reduce paperwork and respondent burdens, the 
Department invites the public and other federal agencies to comment on 
any aspect of the reporting and recordkeeping burden. If you wish to 
comment on the information collection aspects of this proposed rule, 
you may send your comments directly to OMB (see the ADDRESSES section 
of this document). Please identify your comments with RIN 1076-AE80/
Tribal Energy Resource Agreements, 25 CFR 224. Send a copy of your 
comments to the Office of Indian Energy and Economic Development, Room 
20--South Interior Building, 1951 Constitution Avenue, NW., Washington, 
DC 20245. Please reference ``Proposed Rule--Tribal Energy Resource 
Agreements'' in your comments. You may obtain a copy of the supporting 
statement for the new collection of information by contacting the 
Bureau of Indian Affairs' Information Collection Clearance Officer at 
(703) 735-4414.
    The PRA provides that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. OMB is 
required to make a decision concerning the collection of information 
contained in these proposed regulations between 30 to 60 days after 
publication of this document in the Federal Register. Therefore, a 
comment to OMB is best assured of having its full effect if OMB 
receives it early during the comment period. This does not affect the 
deadline for the public to comment to the Department of the Interior 
about the proposed regulations.
    The title of the collection of information for the rule is ``Tribal 
Energy Resource Agreements, 25 CFR Part 224.'' Respondents to the 
information collections in these regulations derive economic benefit 
from an enhanced ability to manage energy resources that exist on 
tribal lands within their jurisdiction. Therefore, the frequency of 
response will vary and depends on the respondents needs. The 
information collection (IC) does not include questions of a sensitive 
nature. The IEED will protect proprietary information according to the 
Freedom of Information Act (5 U.S.C. 522) and its implementing 
regulations (43 CFR part 2) or other applicable laws.
    The following table details the IC burden for the proposed 
requirements in subparts B, C, D, E, F, G, and H:

                    Table 1.--Tribal Energy Resource Agreements Under the Indian Tribal Energy Development and Self Determination Act
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Average       Annual
                                                                          Information collection     Hour burden   number of      burden    Total annual
         Citation 25 CFR 224                   Section title                   requirement               for         annual     hours for   cost (salary
                                                                                                      respondent   responses    respondent   & benefits)
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                                          Subpart B--Procedures for Obtaining Tribal Energy Resource Agreements
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224.53 and 224.63....................  What must an Application for   224.53 Provisions (a) through         1080            4        4,320     $151,328
                                        an Agreement contain and       (p) outline Application                                                ($131,328)
                                        What provisions must an        information requirements and
                                        Agreement contain?             225.63 Provisions (a)
                                                                       through (c) outline
                                                                       Agreement requirements.
224.57(d)............................  What must the Director do      Director issues written                480            2          960      $33,468
                                        upon receipt of an             notice to tribe listing                                                 ($29,468)
                                        Application?                   additional information
                                                                       requirements.
224.61...............................  What will the tribe provide    Tribe must submit final                 32            4          128       $4,352
                                        to the Director after          proposed Agreement.                                                      ($3,952)
                                        receipt of the Director's
                                        report on the Application
                                        consultation meeting?
224.64...............................  How may a tribe assume         A tribe may assume management          720            1          720      $24,888
                                        management of development of   of other types of energy                                                ($21,888)
                                        different types of energy      resources by applying for a
                                        resources?                     new Agreement under the same
                                                                       requirements as Sec.
                                                                       224.53 and Sec.   224.54 for
                                                                       that additional type of
                                                                       energy resource.

[[Page 48629]]

 
224.65...............................  How may a tribe assume         Outlines an amendment process          520            1          520      $17,838
                                        additional activities under    for making changes to an                                                ($15,838)
                                        an Agreement?                  already approved Agreement.
224.68(d)............................  How will the Secretary use     If the Secretary makes                 480            4         1920      $66,936
                                        public comment?.               changes to final proposed                                               ($58,936)
                                                                       Agreement based on public
                                                                       comment the tribe must
                                                                       approve final changes in
                                                                       writing.
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                                                Subpart C--Approval of Tribal Energy Resource Agreements
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224.76...............................  Upon notification of           Yes--Tribe may submit a                520            1          520      $17,838
                                        disapproval, may a tribe re-   revised final proposed                                                  ($15,838)
                                        submit a revised final         Agreement.
                                        proposed Agreement?
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                                             Subpart D--Implementation of Tribal Energy Resource Agreements
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224.83...............................  What are the responsibilities  Inform public, send copy of             32           10          320      $10,920
                                        of a tribe following           any agreements to the                                                    ($8,920)
                                        execution of leases,           Director, and provide
                                        business agreements, and       documentation to Director of
                                        rights-of-way under an         information that would allow
                                        Agreement?                     Secretary to discharge trust
                                                                       responsibilities.
224.87...............................  What are the responsibilities  Tribe must provide written             120            1          120       $4,291
                                        of a tribe if it discovers a   notice to Director for                                                   ($3,791)
                                        Violation or Breach?           provisions (a) through (c).
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                                                          Subpart E--Interested Party Petitions
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224.108..............................  What must a petition contain?  Provisions (a) through (j)             464            1          464      $16,024
                                                                       outline petition information                                            ($14,024)
                                                                       requirements.
224.112..............................  What may the tribe do after    After completion of petition           408            1          408      $15,546
                                        it completes petition          consultation tribe may                                                  ($12,546)
                                        consultation with the          submit a written response.
                                        Director?
224.120(a)...........................  How must the Director proceed  The tribe must provide a               120            1          120       $4,291
                                        with a petition if it meets    written response to the                                                  ($3,791)
                                        the threshold                  Director's determination.
                                        determinations?
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                                                               Subpart F--Periodic Reviews
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224.139(b)...........................  What must a tribe do after     Submit a written response to           120            1          120       $4,291
                                        receiving a notice of          the Director.                                                            ($3,791)
                                        imminent jeopardy to a
                                        physical trust asset.
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                                                                 Subpart G--Reassumption
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224.156..............................  What information must the      Information requirements for            80            1           80       $2,696
                                        tribe's response to the        tribes response to notice of                                             ($2,496)
                                        notice of intent to reassume   intent to reassume.
                                        include?
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                                                                  Subpart H--Rescission
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224.173..............................  How does a tribe rescind an    Tribe must submit a written             32            1           32       $1,088
                                        Agreement?                     tribal resolution to                                                       ($988)
                                                                       initiate a rescission.
                                                                                                    ----------------------------------------------------
    Total Burden.....................  .............................  .............................  ...........  ...........       10,752     $375,795
                                                                                                                                              ($327,595)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    IEED specifically solicits comments on the following questions:
    (a) Is the proposed collection of information necessary for IEED to 
properly perform its functions, and will it be useful?

[[Page 48630]]

    (b) Are the estimates of the burden hours of the proposed 
collection reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?

National Environmental Policy Act (NEPA)

    Under NEPA and 516 Departmental Manual 6, Appendix 10.4C, 
``Issuance and/or modification of regulations.'' these proposed 
regulations do not constitute a major Federal action significantly 
affecting the quality of the human environment. The proposed 
regulations fall within the categorical exclusion of Appendix 10.4C(1) 
because the impact of the proposed rule would be limited to 
administrative and economic effects. There are no extraordinary 
circumstances that would require preparation of an environmental 
assessment or an environmental impact statement.

Data Quality Act

    In developing these regulations, we did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(Pub. L. 106-554).

Energy Supply, Distribution, or Use (Executive Order 13211)

    This proposed rule is not a significant rule and is not subject to 
review by the Office of Management and Budget under Executive Order 
13211. The proposed regulations are administrative in nature and will 
not directly lead to energy development projects. Therefore, they will 
not have a significant effect on energy supply, or distribution. Thus, 
a Statement of Energy Effects is not required.

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    Pursuant to Executive Order 13175 of November 6, 2000, Consultation 
and Coordination with Indian Tribal Governments, the Department has 
determined that because the proposed rulemaking will uniquely affect 
tribal governments it will follow Department and Administrative 
protocols in consulting with tribal governments on the rulemaking. 
Consequently, tribal governments will be notified through this Federal 
Register notice and through the BIA field offices, of the ramifications 
of this rulemaking. This will enable tribal officials and the affected 
tribal constituency throughout Indian country to have meaningful and 
timely input in the development of the final rule. This will reinforce 
good intergovernmental relations with tribal governments and better 
inform, educate and advise such tribal governments on compliance 
requirements of the rule making. We consulted with tribal 
representatives during the formulation of this proposed regulation.
    The Department sent letters to tribal leaders on October 31, 2005 
with information about the TERA provisions of Title V, Section 503 and 
soliciting participation in a process to develop a framework for the 
implementing regulations. On December 9, 2005, the Department published 
a Federal Register notice (70 FR 73257) announcing public meetings and 
tribal consultations in 10 cities between January 9 and 20, 2006. The 
Federal Register notice also solicited written comments and was 
distributed through the BIA regional offices to all tribes. We held the 
meetings in the following cities: Tulsa, OK; Denver, CO; Houston, TX; 
Albuquerque, NM; Las Vegas, NV; Sacramento, CA; Minneapolis, MN; 
Billings, MT; Portland, OR; and Washington, DC. The comments received 
from these public meetings and consultations and the written comments 
submitted were taken into consideration in the formulation of the 
following proposed regulations. We have committed to consulting with 
tribal representatives in the formulation of a final rule for Tribal 
Energy Resource Agreements regulations.

Public Comment Procedures

    The Department's practice is to make comments, including the names 
and addresses of respondents, available for public review. Individual 
respondents may request that we withhold their addresses from the 
rulemaking record, which we will honor to the extent allowable by law. 
There may be circumstances in which we would withhold from the 
rulemaking record a respondent's identity, as allowable by law. If you 
wish us to withhold your name and/or address, you must state this 
prominently at the beginning of your comment. However, the Department 
will not consider anonymous comments. We will make all submissions from 
tribes, organizations, or businesses, and from individuals identifying 
themselves as representatives or officials of tribes, organizations, or 
businesses, available for public inspection in their entirety.

Clarity of This Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this proposed rule easier to understand, including answers to the 
following questions:
    (1) Are the requirements in the proposed rule clearly stated?
    (2) Does the proposed rule contain technical language or jargon 
that interferes with its clarity?
    (3) Does the format of the proposed rule (grouping and order of 
sections, use of headings, paragraphing, etc.) aid or reduce its 
clarity?
    (4) Is the description of the proposed rule in the Supplementary 
Information; section of this preamble helpful in understanding the 
rule?
    (5) What else can we do to make the rule easier to understand?
    Send a copy of any comments that concern how we could make this 
rule easier to understand to the Office of Regulatory Affairs, 
Department of the Interior, Room 7229, 1849 C Street, NW., Washington, 
DC 20240. You may also e-mail the comments to this address: 
<a href="/cdn-cgi/l/email-protection#7d38050e181e3d14120e53191214531a120b"><span class="__cf_email__" data-cfemail="67221f140204270e08144903080e49000811">[email protected]</span></a>.

List of Subjects in 25 CFR Part 224

    Agreement, Appeals, Application, Business agreements, Energy 
development, Interested party, Lease, Recordkeeping requirements, 
Reporting requirements, Right-of-Way, Tribal Energy Resource 
Agreements, Tribal capacity, Tribal lands, Trust, Trust asset.

    Dated: August 1, 2006.
Michael D. Olsen,
Principal Deputy Assistant Secretary--Indian Affairs.

    For the reasons stated in the preamble, the Department proposes to 
add a new Part 224 in Chapter I of Title 25 of the Code of Federal 
Regulations as follows:

PART 224--TRIBAL ENERGY RESOURCE AGREEMENTS UNDER THE INDIAN TRIBAL 
ENERGY DEVELOPMENT AND SELF DETERMINATION ACT

Subpart A--General Provisions
Sec.
224.10 What is the purpose of this part?
224.20 How will the Secretary interpret and implement this part and 
the Act?
224.30 What definitions apply to this part?
224.40 How does the Act or an agreement affect the Secretary's trust 
responsibility?
224.41 When does the Secretary require agreement of more than one 
tribe to approve a TERA?

[[Page 48631]]

224.42 How does the Paperwork Reduction Act affect these 
regulations?
Subpart B--Procedures for Obtaining Tribal Energy Resource Agreements
224.50 What is the purpose of this subpart?

Pre-Application Consultation and the Form of Application

224.51 What is a pre-application consultation between a tribe and 
the Director?
224.52 What may a tribe and the Secretary include in an agreement?
224.53 What must an application for an agreement contain?

Processing Applications

224.54 How must a tribe submit an application?
224.55 Will information a tribe submits during the application 
process be subject to disclosure to third parties?
224.56 What is the effect of the Director's receipt of a tribe's 
complete application?
224.57 What must the Director do upon receipt of an application?

Application Consultation Meeting

224.58 What is an application consultation meeting?
224.59 How may the Director use the results of the application 
consultation meeting?
224.60 What will the Director provide to the tribe after the 
application consultation meeting?
224.61 What will the tribe provide to the Director after receipt of 
the Director's report on the application consultation meeting?
224.62 May a final proposed agreement differ from the original 
proposed agreement?

Agreement Requirements

224.63 What provisions must an agreement contain?
224.64 How may a tribe assume management of development of different 
types of energy resources?
224.65 How may a tribe assume additional activities under an 
agreement?

Public Notification and Comment

224.67 What must the Secretary do upon the Director's receipt of a 
final proposed agreement?
224.68 How will the Secretary use public comments?
Subpart C--Approval of Tribal Energy Resource Agreements
224.70 Will the Secretary conduct a review of a final proposed 
agreement under the National Environmental Policy Act (NEPA)?
224.71 What standards will the Secretary use to decide to approve a 
final proposed agreement?
224.72 How will the Secretary determine whether a tribe has 
demonstrated sufficient capacity?
224.73 How will the scope of energy resource development proposed in 
a tribe's agreement affect the Secretary's determination of the 
tribe's capacity?
224.74 When must the Secretary approve or disapprove a final 
proposed agreement?
224.75 What must the Secretary do upon approval or disapproval of a 
final proposed agreement?
224.76 Upon notification of disapproval, may a tribe re-submit a 
revised final proposed agreement?
224.77 Who may appeal the Secretary's decision on a final proposed 
agreement or a revised final proposed agreement?
Subpart D--Implementation of Tribal Energy Resource Agreements

Applicable Authorities and Responsibilities

224.80 Under what authority will a tribe perform activities 
undertaken under an agreement?
224.81 What laws are applicable to activities under an agreement?
224.82 What services will the Department provide to a tribe after 
approval of an agreement?
224.83 What are the responsibilities of a tribe following execution 
of leases, business agreements, and rights-of-way under an 
agreement?

Leases, Business Agreements, and Right-of-Way Under an Agreement

224.84 When may a tribe grant a right-of-way under an agreement?
224.85 When may a tribe enter into a lease or business agreement 
under an agreement?
224.86 Are there limits for terms of leases, business agreements, 
and rights-of-way entered into under an agreement?

Violation or Breach

224.87 What are the responsibilities of a tribe if it discovers a 
violation or breach?
224.88 What are the responsibilities of the Director after receiving 
notice of a violation or breach from the tribe?
224.89 What procedures will the Secretary use to enforce leases, 
business agreements, or rights-of-way entered into under an 
agreement?
Subpart E--Interested Party Petitions
224.100 May a person or entity ask the Secretary to review a tribe's 
compliance with an agreement?
224.101 Who is an interested party?
224.102 Must a tribe establish a comment or hearing process under an 
agreement for addressing environmental concerns?
224.103 Must a tribe establish a process for public participation 
regarding an agreement or activities undertaken under an agreement?
224.104 Must a tribe enact tribal laws, regulations, or procedures 
permitting persons or entities to allege a tribe's noncompliance 
with an agreement?
224.105 How may a person or entity obtain copies of tribal laws, 
regulations, or procedures that establish hearing or comment 
processes or that permit allegations of a tribe's noncompliance with 
its agreement?
Sec.  224.106 If a tribe has enacted tribal laws, regulations, or 
procedures for challenging tribal action under an agreement, how 
must the tribe respond to a petitioner's challenge?
224.107 What must a petitioner claim or request in a petition filed 
with the Secretary?
224.108 What must a petition contain?
224.109 What must a petitioner do before filing a petition with the 
Secretary?
224.110 When may a petitioner file a petition with the Secretary?
224.111 What must the Director do upon receipt of a petition?
224.112 What may the tribe do after it completes petition 
consultation with the Director?
224.113 How may the tribe address a petition in its written 
response?
224.114 What will the Director do if the tribe offers a resolution 
of a petitioner's claim in which the petitioner concurs?
224.115 When must the Director make threshold determinations about a 
petition?
224.116 What must the Director consider in making threshold 
determinations about a petition?
224.117 When must the Director dismiss a petition after making the 
threshold determinations about a petition?
224.118 How must the Director proceed if the Director dismisses a 
petition based on consideration of threshold determinations?
224.119 How must the Director proceed if the Director does not 
dismiss the petition based on threshold determinations?
224.120 How must the Director proceed with a petition if it meets 
the threshold determinations?
224.121 What action must the Director take to bring a tribe into 
compliance with an agreement?
224.122 When must the Director act on a petition?
224.123 How may a tribe or a petitioner appeal the Director's 
disposition of a petition?
Subpart F--Periodic Reviews
224.130 What is the purpose of this subpart?
224.131 What is a periodic review and evaluation?
224.132 How does the Director conduct a periodic review and 
evaluation?
224.133 What must the Director do after a periodic review and 
evaluation?
224.134 How often must the Director conduct a periodic review and 
evaluation?
224.135 Under what circumstances may the Director conduct additional 
reviews and evaluations?

Noncompliance

224.136 How will the Director's written report address a tribe's 
noncompliance with Federal law or the terms of an agreement?
224.137 What must the Director do if a tribe's noncompliance has 
resulted in harm or the potential for harm to a physical trust 
asset?
224.138 What must the Director do if a tribe's noncompliance has 
caused imminent jeopardy to a physical trust asset?

[[Page 48632]]

224.139 What must a tribe do after receiving a notice of imminent 
jeopardy to a physical trust asset?
224.140 What must the Secretary do if the tribe fails to respond to 
or does not comply with the Director's order?
224.141 What must the Secretary do if the tribe responds to the 
Director's order?
Subpart G--Reassumption
224.150 What is the purpose of this subpart?
224.151 When may the Secretary reassume activities under an 
agreement?
224.152 Must the Secretary always reassume the activities under an 
agreement upon a finding of imminent jeopardy to a physical trust 
asset?

Notice of Intent To Reassume

224.153 Must the Secretary notify the tribe of an intent to reassume 
activities under an agreement?
224.154 What must a notice of intent to reassume include?
224.155 When must a tribe respond to a notice of intent to reassume?
224.156 What information must the tribe's response to the notice of 
intent to reassume include?
224.157 How must the Secretary proceed after receiving the tribe's 
response?
224.158 What must the Secretary include in a written notice of 
reassumption?
224.159 How will reassumption affect valid existing rights that 
vested or lawful actions taken by the tribe or the Secretary before 
the effective date of the reassumption?
224.160 How will reassumption affect an agreement?
224.161 How may reassumption affect the tribe's ability to modify an 
agreement, administer additional activities or to assume 
administration of activities that the Secretary previously 
reassumed?
Subpart H--Rescission
224.170 What is the purpose of this subpart?
224.171 Who may rescind an agreement?
224.172 May a tribe rescind its authority to approve or disapprove a 
specific future lease, business agreement, or right-of-way or the 
development of a specific energy resource or geographic area?
224.173 How does a tribe rescind an agreement?
224.174 When does a voluntary rescission become effective?
224.175 How will rescission affect rights that vested before the 
effective date of the rescission or lawful actions taken by the 
tribe or the Secretary before the effective date of the rescission?
Subpart I--General Appeal Procedures
224.180 What is the purpose of this subpart?
224.181 Who may appeal Department decisions or inaction under this 
part?
224.182 What is the Initial Appeal Process?
224.183 What other administrative appeals processes also apply?
224.184 How do other administrative appeals processes apply?
224.185 When are decisions under this part effective?

    Authority: 25 U.S.C. 2 and 9; 25 U.S.C. 3501-3504; Pub. L. 109-
58.

Subpart A--General Provisions


Sec.  224.10  What is the purpose of this part?

    This part:
    (a) Establishes procedures by which a tribe may enter into and 
manage leases, business agreements, and rights-of-way for purposes of 
energy resource development on tribal land; and
    (b) Describes the process for obtaining, implementing, and 
enforcing an agreement that will allow a tribe to enter into individual 
leases, business agreements, and rights-of-way without obtaining 
Secretarial approval.


Sec.  224.20  How will the Secretary interpret and implement this part 
and the Act?

    (a) The Secretary will interpret and implement this part and the 
Indian Tribal Energy Development and Self-Determination Act (the Act) 
in keeping with the self-determination and energy development 
provisions and policies in the Act.
    (b) The Secretary will liberally construe this part and the Act for 
the benefit of tribes to implement the Federal policy of self-
determination. The Secretary will construe any ambiguities in this part 
or the Act in favor of the tribe to implement Tribal Energy Resource 
Agreements as authorized by this part and the Act.


Sec.  224.30  What definitions apply to this part?

    Act means the Indian Tribal Energy Development and Self-
Determination Act of 2005, as promulgated in Title V of the Energy 
Policy Act of 2005, Pub. L. 109-58, 25 U.S.C. 3501-3504.
    Agreement means a tribal energy resource agreement (TERA) provided 
for by the Act and this part.
    Application means the application submitted for an agreement under 
subpart B.
    Business agreement means:
    (1) Any permit, contract, joint venture, option, or other agreement 
that furthers any activity related to locating, producing, 
transporting, or marketing energy resources on or across tribal land;
    (2) Any amendment, supplement, or other modification to such an 
agreement; or
    (3) Any other business agreement entered into or subject to 
administration under a TERA.
    Days mean calendar days. In computing any period prescribed or 
allowed by the Act and this part:
    (1) Do not include the day of the event from which the period 
begins to run;
    (2) Include the last day of the period, unless it is a Saturday, 
Sunday, or Federal holiday, in which event the period runs until the 
end of the next day which is not a Saturday, Sunday, or Federal 
holiday; and
    (3) When the period prescribed or allowed is less than 11 days, 
exclude intermediate Saturdays, Sundays, and Federal holidays from the 
computation.
    Decision Deadline means the 120-day period within which the 
Director will make a decision about a petition submitted by an 
interested party under subpart E. The Director may extend this period 
for up to 120 days.
    Department means the Department of the Interior.
    Director means the Director of the Office of Indian Energy and 
Economic Development or the Secretary's designee authorized to act on 
behalf of the Secretary.
    Energy Resources means both renewable and nonrenewable energy 
sources, including, but not limited to, natural gas, oil, uranium, 
coal, nuclear, wind, solar, geothermal, biomass, and hydrologic 
resources.
    Imminent jeopardy to a physical trust asset means an immediate 
threat of devaluation, degradation, damage, or loss of a physical trust 
asset, as determined by the Secretary, caused by the noncompliance of a 
tribe with an agreement or applicable Federal law.
    Interested party means a person or entity who has filed a petition 
with the Secretary under subpart E seeking review of a tribe's 
compliance with an agreement and who meets the criteria in Sec.  
224.51.
    Lease means a written agreement, or modification to an agreement, 
between a tribe and a tenant or lessee, whereby the tenant or lessee is 
granted a right to possession of tribal land or energy resources for 
purposes of energy resource development, including:
    (1) Exploration, extraction, processing, refining, marketing or 
other activities that further the development of energy resources; and
    (2) Construction or operation of facilities on tribal lands used to 
generate, transmit, or distribute electricity or to process, transport, 
or refine energy resources.
    Petitioner means a person or entity who has filed a petition under 
subpart E with a tribe or the Secretary seeking review of a tribe's 
compliance under an agreement. A petitioner is not considered to be an 
interested party unless the petitioner meets the criteria in Sec.  
224.51.

[[Page 48633]]

    Physical trust asset means a physical asset held in trust by the 
United States in trust for a tribe or individual Indian or by a tribe 
or individual Indian subject to a restriction against alienation under 
the laws of the United States. ``Physical trust asset'' does not 
include:
    (1) Any improvements (for example, wells or structures) to the 
assets held in trust or restricted status; or
    (2) Monetary assets.
    Public means one or more natural or legal persons, and their 
associations, organizations, or groups; or Federal, State, tribal and 
local government agencies; or private industry and their associations, 
organizations, or groups.
    Right-of-way means an easement, right, or other authorization over 
tribal lands, granted or subject to administration under an agreement, 
for a pipeline or electric transmission or distribution line that 
serves a facility located on tribal land that is related to energy 
resources or an agreement to grant a right-of-way.
    Secretary means the Secretary of the Interior or the Secretary's 
designee.
    Tribal Designated Official means the official designated in a 
tribe's pre-application consultation request, application, or agreement 
to assist in scheduling consultations or to receive communications from 
the Secretary or the Director to the tribe regarding the status of an 
agreement or activities under an agreement.
    Tribal governing body means a tribe's governing entity, such as 
tribal council or tribal business committee, as established under 
tribal or Federal law and recognized by the Secretary.
    Tribal land means any land or interests in land owned by a tribe, 
title to which is held in trust by the United States, or is subject to 
a restriction against alienation under the laws of the United States. 
For the purposes of this part, tribal land includes land taken into 
trust or subject to restrictions on alienation under the laws of the 
United States after the effective date of the agreement.
    Tribe means any Indian tribe, band, nation, or other organized 
group or community, which is recognized as eligible for the special 
programs and services provided by the United States to Indians because 
of their status as Indians, except a Native Corporation as defined in 
the Alaska Native Claims Settlement Act, 43 U.S.C. 1602.
    Violation or breach means any breach or violation of a lease, 
business agreement, or right-of-way or a Federal or tribal 
environmental law resulting from an activity undertaken under a lease, 
business agreement, or right-of-way under an agreement.


Sec.  224.40  How does the Act or an agreement affect the Secretary's 
trust responsibility?

    (a) The Act (25 U.S.C. 3504(e)(6)) preserves the Secretary's trust 
responsibilities relating to trust resources and requires the Secretary 
to act in good faith and in the best interest of Indian tribes at all 
times.
    (b) Neither the Act nor this part absolve the Secretary of 
responsibilities to Indian tribes under the trust relationship, 
treaties, statutes, regulations, Executive Orders, agreements or other 
Federal law.
    (c) The Act and this part preserve the Secretary's trust 
responsibility to ensure that the rights and interests of an Indian 
tribe are protected if:
    (1) Another party to a lease, business agreement, or right-of-way 
violates any term thereof; or any applicable Federal law; or
    (2) Any provision of a lease, business agreement, or right-of-way 
violates an agreement under which it was executed.
    (d) The United States is not liable for losses that may result to a 
tribe or to third parties from terms or provisions contained in a 
lease, business agreement, or right-of-way negotiated by an Indian 
tribe and executed under an agreement.


Sec.  224.41  When does the Secretary require agreement of more than 
one tribe to approve a TERA?

    When a TERA includes leases, business agreements and rights-of-way 
on tribal land held for the benefit of more that one tribe, as part of 
the pre-application process each tribal governing body must submit a 
resolution or enactment approving the submission of an application. 
Each tribal governing body must also sign the agreement, if approved.


224.42  How does the Paperwork Reduction Act affect these regulations?

    The information collected from the public is cleared and covered by 
OMB Control Number 1076-XXXX. The sections of this rule which have 
information collections are Sec. Sec.  224.53, 224.57(d), 224.61, 
224.63, 224.64, 224.65, 224.68(d), 224.76, 224.83, 224.87, 224.108, 
224.112, 224.120(a), 224.139(b), 224.156, and 224.173. Please note that 
a Federal Agency may not conduct or sponsor, and you are not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.

Subpart B--Procedures for Obtaining Tribal Energy Resource 
Agreements


Sec.  224.50  What is the purpose of this subpart?

    This subpart establishes procedures governing:
    (a) The pre-application process;
    (b) The required content of applications;
    (c) Submitting applications; and
    (d) Secretarial review and processing of applications.

Pre-application Consultation and the Form of Application


Sec.  224.51  What is a pre-application consultation between a tribe 
and the Director?

    (a) A tribe interested in entering into an agreement should request 
a pre-application consultation by writing to the Director, Office of 
Indian Energy and Economic Development, Department of the Interior, 
Room 20--South Interior Building, 1951 Constitution Avenue, NW., 
Washington, DC 20245. The request should include the name and contact 
information of the tribal Designated Official who will coordinate 
scheduling with the Director.
    (b) Upon receiving a pre-application consultation request, the 
Director will contact the tribal Designated Official to set up a 
consultation meeting. The Director may also initiate pre-application 
discussions with tribal governing bodies.
    (c) At the pre-application consultation meeting, the tribe and the 
Director may discuss any of the matters related to a future application 
including, but not limited to:
    (1) The application process;
    (2) The potential scope of the tribe's future application, 
including any regulatory or administrative activities that the tribe 
anticipates exercising;
    (3) The required content of an application for an agreement;
    (4) The tribe's capacity to manage and regulate energy resource 
development identified in the scope of its application;
    (5) Potential opportunities for funding capacity-building and other 
activities of the tribe under an agreement; and
    (6) Any other matters applicable to this part, the Act, and the 
tribe.


Sec.  224.52  What may a tribe and the Secretary include in an 
agreement?

    An agreement under this part:
    (a) May include development of all or part of a tribe's energy 
resources;
    (b) Must be explicit as to the type of energy resource included;
    (c) May include assumption by the tribe of certain activities 
normally carried out by the Secretary, except for inherently Federal 
functions; and

[[Page 48634]]

    (d) Must be explicit as to what activities related to specific 
energy resource developments the tribe proposes to assume.


Sec.  224.53  What must an application for an agreement contain?

    (a) An application for an agreement must contain all of the 
following:
    (1) A proposed agreement between the tribe and the Secretary that 
contains the provisions required in Sec.  224.63;
    (2) A statement that the Secretary recognizes the tribe as an 
Indian tribe and that the tribe has tribal land;
    (3) A brief description of the tribe's form of government;
    (4) Copies of relevant portions of tribal documents (see paragraph 
(b) of this section);
    (5) A map, legal description, and general description of the tribal 
land that the tribe intends to be covered by an agreement;
    (6) A coverage statement meeting the requirements in paragraph (c) 
of this section;
    (7) A statement describing the tribe's experience in negotiating 
and administering energy-related leases, business agreements, and 
rights-of-way issued under Federal laws other than the Act, including 
descriptions of significant leases, business agreements, and rights-of-
way it has entered into with third parties or to which it has 
consented;
    (8) A description of the expertise that the tribe will use to 
administer the agreement that meets the requirements of paragraph (d) 
of this section;
    (9) A statement of the scope of administrative responsibility that 
the tribe intends to exercise that meets the requirements of paragraph 
(e) of this section;
    (10) A statement that meets the requirements of paragraph (f) of 
this section describing the capability of the tribe assume any of the 
activities the tribe has identified in the application;
    (11) A copy of the resolution or enactment of the tribal governing 
body or tribal governing bodies under Sec.  224.41 approving the 
submission of an application for an agreement; and
    (12) A designation of, and contact information for, the tribal 
Designated Official who will receive notifications from the Secretary 
or the Director regarding the status of the application.
    (b) The documents required by paragraph (a)(4) of this section 
include documents such as a constitution, code, ordinance, or 
resolution, that designates the tribal governing body or officials 
within the tribe that have the authority to enter into leases, business 
agreements, or rights-of-way on behalf of the tribe.
    (c) The coverage statement required by paragraph (a)(7) of this 
section must:
    (1) If applicable, state that the tribe retains the option of 
entering into energy-related leases or agreements under laws other than 
the Act for any tribal land covered by the agreement; and
    (2) State one of the following:
    (i) The tribe intends the agreement to cover all tribal land, 
energy resources, and categories of energy-related leases, business 
agreements and rights-of-way; or
    (ii) The tribe intends to exclude certain tribal land, energy 
resources, or categories of energy-related leases, business agreements, 
or rights-of-way from the agreement. In this case, the statement must 
include a description of the tribal land, energy resources, or energy-
related leases, business agreements, or rights-of-way intended to be 
excluded from the agreement.
    (d) The statement required by paragraph (a)(8) of this section must 
describe the expertise that the tribe will use in the three areas 
specified in paragraph (d)(1) of this section. It must address at a 
minimum the resources specified in paragraph (d)(2) of this section.
    (1) The statement must describe the expertise that the tribe will 
use to:
    (i) Negotiate or review leases, business agreements, or rights-of-
way under the agreement;
    (ii) Evaluate the environmental effects, including those related to 
cultural resources, of the agreement;
    (iii) Review proposals or monitor compliance with financial terms 
and conditions of leases, business agreements, or rights-of-way under 
the agreement; and
    (iv) Monitor the compliance of a third party with the terms of any 
arrangement covered by the agreement
    (2) The statement must address the following areas of the tribe's 
expertise:
    (i) Existing departments or administrative divisions within the 
tribe;
    (ii) Proposed departments or administrative divisions within the 
tribe;
    (iii) Existing internal and external expertise possessed by the 
tribe, including a description of applicable tribal employees and 
consultants or advisors; and
    (iv) Proposed internal and external expertise that the tribe may 
acquire, including a description of anticipated tribal employees and 
consultants or advisors.
    (e) The statement required by paragraph (a)(9) of this section must 
address the amount of administrative responsibility related to the 
permitting, approval, or monitoring of activities to be undertaken 
under a lease, business agreement, or right-of-way.
    (1) If a tribe desires to exercise regulatory responsibilities, the 
tribe must indicate that intent and describe the tribe's plan for such 
administration and management.
    (2) Examples of regulatory authority that a tribe may wish to 
exercise include, but are not limited to review and approval of 
applications for permits to drill; review of archaeological resources 
or historical or cultural resources; royalty accounting, collection, 
and auditing; production accounting; or other review and enforcement 
activities associated with compliance.
    (3) The tribe's intended scope of administrative responsibilities 
may not include the responsibilities of the Federal Government under 
the Endangered Species Act or any other inherently Federal function.
    (f) The statement required by paragraph (a)(10) of this section 
must:
    (1) Describe the tribe's ability to negotiate and consummate 
leases, business agreements, and rights-of-way;
    (2) Include a discussion of the estimated annual costs to the tribe 
to assume those responsibilities and the availability and source of 
revenue needed by the tribe to carry out those responsibilities; and
    (3) If the intended source of tribal funds includes grants or 
contract awards from the Department, the Department of Energy, or other 
Federal agencies, describe the estimated annual amounts needed and the 
Federal program under which such funds are to be requested.
    (4) Include a description of contracts entered into between the 
tribe and the Secretary under the Indian Self-Determination and 
Education Assistance Act, as amended; or environmental programs a tribe 
assumes under the Clean Water Act (33 U.S.C. 1251 et seq.) or the Clean 
Air Act (42 U.S.C.A. 7401); or cooperative agreements under the Federal 
Oil and Gas Royalty Management Act (30 U.S.C. 1701 et seq.).

Processing Applications


Sec.  224.54  How must a tribe submit an application?

    A tribe must submit an application and all supporting documents in 
both written and electronic formats to the Director, Office of Indian 
Energy and Economic Development, Room 20--South Interior Building, 1951 
Constitution Avenue, NW., Washington, DC 20245.

[[Page 48635]]

Sec.  224.55  Will information a tribe submits during the application 
process be subject to disclosure to third parties?

    (a) Information the tribe submits during the application process, 
including information provided during pre-application consultation, may 
be subject to disclosure to third parties under the Freedom of 
Information Act (5 U.S.C. 552);
    (b) If information a tribe submits contains commercial or financial 
information that is confidential and proprietary, exceptions to 
disclosure under the Freedom of Information Act may apply to those 
portions of the information;
    (c) During the application process, a tribe may identify 
information in the documents it submits that it considers commercial or 
financial and also confidential and proprietary;
    (d) The terms of existing mineral agreements previously entered 
into under the Indian Mineral Development Act are statutorily protected 
under the Act against disclosure; and
    (e) A tribe is under no Federal obligation to disclose to any 
person or party the fact that it has submitted an application to the 
Secretary.


Sec.  224.56  What is the effect of the Director's receipt of a tribe's 
complete application?

    The Director's receipt of a tribe's complete application begins a 
270-day period during which the Secretary must approve or disapprove a 
proposed agreement. With the consent of the tribe, the Secretary may 
extend the period for a decision.


Sec.  224.57  What must the Director do upon receipt of an application?

    (a) Upon receipt of an application, the Director must:
    (1) Promptly notify the tribal Designated Official in writing that 
the Director has received the application and the date of such receipt;
    (2) Within 30 days from the date of receipt of the application, 
determine whether the application is complete;
    (3) If the Director determines that the application is complete, 
issue a written notice together with a request for an application 
consultation meeting to the tribal Designated Official. As appropriate, 
the Director will also notify other Department bureaus and offices that 
the Director has received a complete application and provide copies; or
    (4) Issue a written notice to the tribal Designated Official that 
the application is not complete and specify the additional information 
the tribe is required to submit to make the application complete. If 
the Director determines that an application is not complete, the 270-
day review period does not begin until the Director receives a complete 
application.
    (b) Unless, within the 30-day period, the Director notifies the 
tribal Designated Official that the application is not complete, the 
application is presumed complete and the 270-day review period under 
Section 2604(e)(2)(A) of the Act will begin as of the date that the 
application was received.

Application Consultation Meeting


Sec.  224.58  What is an application consultation meeting?

    (a) An application consultation meeting is a meeting held at the 
tribe's headquarters between the Director and the tribal governing body 
and any other representatives that the tribe may designate to discuss 
the scope of the application. The Secretary will designate 
representatives of appropriate Department offices or bureaus to attend 
the application consultation meeting, as necessary. The meeting will:
    (1) Be held at the earliest practicable time after the Director 
receives the application;
    (2) Be a thorough review of the tribe's application;
    (3) Identify specific services that the Department would provide, 
consistent with the Secretary's ongoing trust responsibilities, in the 
event that the agreement is approved;
    (4) Include a discussion of the relationship of the tribe to other 
Federal agencies with responsibilities for implementing or ensuring 
compliance with the terms and conditions of leases, business 
agreements, or rights-of-way and applicable Federal laws;
    (5) Include a discussion of the relationship of the tribe to its 
members, to State and local governments, and to non-Indians who may be 
affected by approval of an agreement or by leases, business agreements, 
or rights-of-way that may be granted or entered into by the tribe;
    (6) Include a discussion of the tribal administrative structure and 
financial and management capacities needed to carry out the tribe's 
obligations under an agreement; and
    (7) Include a discussion of the form of the agreement and the 
timing and relative responsibilities for its preparation.
    (b) The tribe may record the meeting.


Sec.  224.59  How may the Director use the results of the application 
consultation meeting?

    The Director may use the results of the application consultation 
meeting to assist the Secretary in evaluating the capacity of the tribe 
to:
    (a) Analyze the business and legal terms and the potential effect 
of proposals for leases, business agreements, and rights-of-way;
    (b) Monitor and enforce third party compliance with the terms of 
leases, business agreements, and rights-of-way; and
    (c) Carry out the tribe's responsibilities under an agreement if 
the agreement is approved.


Sec.  224.60  What will the Director provide to the tribe after the 
application consultation meeting?

    Within 30 days following the meeting with the tribe, the Director 
will provide to the tribal Designated Official a written report 
summarizing the content of the meeting. The report must include the 
Director's recommendations, if any, for revising the proposed agreement 
submitted with the tribe's application.


Sec.  224.61  What will the tribe provide to the Director after receipt 
of the Director's report on the application consultation meeting?

    If the tribe wishes to proceed with the application process, the 
tribe must submit a final proposed agreement to the Director within 45 
days following the issuance of the Director's report on the application 
consultation meeting.


Sec.  224.62  May a final proposed agreement differ from the original 
proposed agreement?

    The final proposed agreement may or may not contain provisions that 
differ from the original proposed agreement submitted with the 
application.
    (a) If a final proposed agreement does not differ significantly or 
materially from the original complete application, the running of the 
270-day period commenced by either the receipt of the original complete 
application or by operation of Sec.  224.16(d) is not changed.
    (b) If a final proposed agreement differs significantly or 
materially from the original complete application, the Secretary may 
extend the 270-day period for a reasonable time. The Secretary will 
notify the tribe in writing if an extension of time is necessary.

Agreement Requirements


Sec.  224.63  What provisions must an agreement contain?

    An agreement must contain the following:
    (a) Provisions for periodic review and evaluation of the tribe's 
performance under the agreement and recognizing the authority of the 
Secretary, upon a finding of imminent jeopardy to a physical trust 
asset, to take actions the Secretary determines to be necessary to

[[Page 48636]]

protect the asset, including reassumption under subparts F and G.
    (b) Provisions ensuring:
    (1) Appropriate evaluation of all significant environmental effects 
(as compared to a no-action alternative), including effects on cultural 
resources, arising from leases, business agreements, or rights-of-way, 
and measures ensuring that appropriate mitigation measures will be 
identified and implemented in performance of activities under leases, 
business agreements, or rights-of-way;
    (2) A process for informing the public and providing opportunity 
for public comment on the environmental impacts of the proposed action;
    (3) A process for providing tribal responses to relevant and 
substantive public comments before tribal approval of the lease, 
business agreement or right-of-way;
    (4) Sufficient tribal administrative support and technical 
capability to carry out the environmental review process; and
    (5) The tribe's oversight of energy resource development activities 
any other party conducts to determine whether the activities comply 
with the agreement and applicable Federal environmental laws.
    (c) Provisions that require, with respect to any lease, business 
agreement, or right-of-way approved under an agreement, the following:
    (1) Mechanisms for obtaining corporate, technical, and financial 
qualifications of a third party that has applied to enter into a lease, 
business agreement, or right-of-way;
    (2) Express limitations on duration that meet the restrictions of 
the Act;
    (3) Mechanisms for amendment, transfer, and renewal;
    (4) Mechanisms for obtaining, reporting and evaluating economic 
return to the tribe;
    (5) Mechanisms for securing technical information about activities 
and ensuring that technical activities are performed in compliance with 
terms and conditions;
    (6) Assurances of compliance with all applicable environmental 
laws;
    (7) Requirements that the lessee, operator or right-of-way grantee 
will comply with all applicable environmental laws;
    (8) Identification of tribal offices or entities with authority to 
approve a lease, business agreement, or right-of-way and the activities 
to be undertaken under a lease, business agreement, or right-of-way;
    (9) Public notification that a lease, business agreement, or right-
of-way has received final tribal approval;
    (10) A process for consultation with affected States regarding off-
reservation impacts, if any, identified under (b) of this section;
    (11) A description of remedies for breach;
    (12) A statement that any provision that violates an express term 
or requirement of the agreement is null and void;
    (13) A statement that if the Secretary determines that any 
provision that violates an express term or requirement of the agreement 
is material, the Secretary may reassume or rescind the lease, business 
agreement, or right-of-way, or take any action the Secretary determines 
to be in the best interest of the tribe;
    (14) A statement that the lease, business agreement, or right-of-
way goes into effect when the tribe delivers executed copies to the 
Director by first class mail return receipt requested or express 
delivery;
    (15) Citations to any applicable tribal laws, regulations, or 
procedures that permit persons or entities to submit comments on or 
participate in hearings regarding activities to be undertaken by a 
tribe under an agreement;
    (16) Citations to any applicable tribal laws, regulations, or 
procedures establishing remedies that petitioning parties must exhaust 
before filing a petition with the Secretary under subpart E;
    (17) Provisions that require a tribe to provide the Secretary with 
citations to any tribal laws, regulations, or procedures tribes adopt 
after the effective date of an agreement that establish, amend, or 
supplement tribal comment or hearing provisions or tribal remedies that 
petitioning parties must exhaust prior to filing a petition with the 
Secretary under subpart E;
    (18) Provisions that designate a person or entity authorized by the 
tribe to maintain and to disseminate to requesting members of the 
public current copies of tribal laws, regulations, or procedures that 
establish or describe tribal comment or hearing processes that 
petitioning parties must participate in or tribal remedies that 
petitioning parties must exhaust before instituting appeals under 
subpart E, together with contact information;
    (19) Identification of financial assistance, if any that the 
Secretary will provide to assist in implementation of the agreement, 
including the tribe's environmental review of individual energy 
development activities;
    (20) Provisions that require a tribe to notify the Secretary and 
the Director in writing of violations or breaches; and
    (21) Provisions that require the tribe and the tribe's financial 
experts to adhere to Government auditing standards and continuing 
professional education requirements when performing audits and periodic 
reviews of the audits.


Sec.  224.64  How may a tribe assume management of development of 
different types of energy resources?

    In order for a tribe to assume responsibility for development of 
energy resources that are not included in the Agreement, a tribe must 
apply for a new agreement covering the responsibilities for the 
development of the other energy resources it wishes to assume. The 
Secretary's approval of a new agreement will include a determination of 
the tribe's capacity to develop that type of energy resource.


Sec.  224.65  How may a tribe assume additional activities under an 
agreement?

    A tribe may assume additional activities related to the development 
of the same type of energy resource included in an agreement by 
negotiating an amendment to the existing agreement with the Secretary 
to include the additional activities.

Public Notification and Comment


Sec.  224.67  What must the Secretary do upon the Director's receipt of 
a final proposed agreement?

    Within 10 days of the Director's receipt of a final proposed 
agreement, the Secretary must submit a notice for publication in the 
Federal Register advising the public that the Secretary is considering 
a final proposed agreement for approval or disapproval. The notice 
will:
    (a) Contain information advising the public how to request and 
receive copies of the final proposed agreement from the Secretary;
    (b) Contain information advising the public how to request and 
receive copies of or participate in any National Environmental Policy 
Act (NEPA) reviews, as prescribed in subpart C, related to approval of 
the final proposed agreement; and
    (c) Invite written public comments, state the due date for 
comments, and state the address to which to send comments.


Sec.  224.68  How will the Secretary use public comments?

    (a) The Secretary will review public comments and provide copies of 
the comments to the tribal Designated Official;
    (b) The Secretary will consider public comments in deciding to 
approve or

[[Page 48637]]

disapprove the final proposed agreement;
    (c) Upon mutual agreement between the tribe and the Secretary, the 
tribe may make changes in the final proposed agreement based on the 
comments received; and
    (d) If the tribe revises the final proposed agreement based on 
public comments, the tribal governing body must approve the changes, 
the authorized representative of the tribe must sign the final proposed 
agreement as changed, and the tribe must send the revised final 
proposed agreement to the Director.

Subpart C--Approval of Tribal Energy Resource Agreements


Sec.  224.70  Will the Secretary conduct a review of a final proposed 
agreement under the National Environmental Policy Act (NEPA)?

    Yes, the Secretary will conduct a review under NEPA of the 
potential impacts on the quality of the human environment that might 
arise from approving a final proposed agreement. The scope of the 
Secretary's evaluation will be limited to the scope of the activities 
and the energy resource developments the tribe is proposing to 
undertake as specified by the provisions of the agreement. The public 
comment period, if any, under the NEPA review will occur concurrently 
with the public comment period for an agreement under Sec.  224.67.


Sec.  224.71  What standards will the Secretary use to decide to 
approve a final proposed agreement?

    The Secretary will consider the best interests of the tribe and the 
Federal policy of promoting tribal self-determination in deciding to 
approve a final proposed agreement. The Secretary must approve a final 
proposed agreement if it contains the provisions required by the Act 
and this part and the Secretary determines that the tribe has 
demonstrated sufficient capacity to:
    (a) Make prudent decisions in negotiating, approving or 
disapproving proposals for leases, business agreements, or rights-of-
way affecting tribal land; and
    (b) Monitor and regulate activities undertaken by third parties 
under approved leases, business agreement, or rights-of-way in 
accordance with the final proposed agreement.


Sec.  224.72  How will the Secretary determine whether a tribe has 
demonstrated sufficient capacity?

    The Secretary will determine whether a tribe has demonstrated 
sufficient capacity under Sec.  224.71 based on the information 
obtained through the application process. The Secretary will consider:
    (a) The specific energy resource development the tribe proposes;
    (b) The scope of the administrative or regulatory authority the 
tribe seeks to assume;
    (c) Materials and information submitted with the application for an 
agreement, the results of meetings between the tribe and 
representatives of the Department, and the Director's written report;
    (d) The history of the tribe's role in energy resource development, 
including pre-existing energy-related leases, business agreements, and 
rights-of-way;
    (e) The administrative expertise of the tribe available to regulate 
energy resource development within the scope of the final proposed 
agreement or the tribe's plans for establishing that expertise;
    (f) The financial capacity of the tribe to maintain or procure the 
technical expertise needed to evaluate proposals and to monitor 
anticipated activities in a prudent manner;
    (g) The tribe's past performance administering contracts and grants 
associated with self-determination programs, cooperative agreements 
with Federal and State agencies, and environmental programs 
administered by the Environmental Protection Agency; and
    (h) Any other factors the Secretary finds to be relevant in light 
of the scope of the proposed agreement.


Sec.  224.73  How will the scope of energy resource development 
proposed in a tribe's agreement affect the Secretary's determination of 
the tribe's capacity?

    The Secretary's review under Sec.  224.72 of the tribe's capacity 
to manage and regulate energy resource development under the agreement 
will include a determination as to each energy resource development 
subject to the agreement, and each activity the tribe proposes to 
assume. The Secretary's review of an agreement must be limited to 
activities specified by the provisions of the agreement.


Sec.  224.74  When must the Secretary approve or disapprove a final 
proposed agreement?

    The Secretary must approve or disapprove a final proposed agreement 
or a revised final proposed agreement within 270 days of the Director's 
receipt of a complete application for an agreement. With the consent of 
the tribe, or as provided in Sec.  224.16, the Secretary may extend the 
period for a decision.


Sec.  224.75  What must the Secretary do upon approval or disapproval 
of a final proposed agreement?

    Within 10 days of the Secretary's approval or disapproval of a 
final proposed agreement, the Secretary must notify the tribal 
governing body in writing;
    (a) If the Secretary's decision is to approve the final proposed 
agreement, the Secretary will sign the agreement, which will be 
effective on the date of the Secretary's signature, and return the 
signed agreement to the tribal governing body.
    (b) If the Secretary's decision is to disapprove the final proposed 
agreement, the Secretary's notice of disapproval must include:
    (1) The basis of the disapproval;
    (2) The revisions needed, if any, to meet the Secretary's concerns; 
and
    (3) A statement that the decision is a final agency action and is 
subject to judicial review.
    (c) If the Secretary approves the final proposed agreement, the 
Secretary will maintain a copy of the agreement and any subsequent 
amendments or supplements to the agreement, and provide copies to 
persons or entities upon request under the Freedom of Information Act 
(5 U.S.C. 552).


Sec.  224.76  Upon notification of disapproval, may a tribe re-submit a 
revised final proposed agreement?

    Yes, within 45 days of receipt of the notice of disapproval, or a 
later date as the Secretary and the tribe agree to in writing, the 
tribe may re-submit a revised final proposed agreement, approved by the 
tribal governing body and signed by the tribe's authorized 
representative, to the Director that addresses the Secretary's 
concerns. Unless the Secretary and the tribe otherwise agree, the 
Secretary must approve or disapprove the revised final proposed 
agreement within 60 days of the Director's receipt of the revised final 
proposed agreement. Within 10 days of the Secretary's approval or 
disapproval of a revised final proposed agreement, the Secretary must 
notify the tribal governing body in writing;
    (a) If the Secretary's decision is to approve the revised final 
proposed agreement, the Secretary will sign the agreement, which will 
be effective on the date of the Secretary's signature, and return the 
signed agreement to the tribal governing body.
    (b) If the Secretary's decision is to disapprove the revised final 
proposed agreement, the Secretary's notice of disapproval must include:
    (1) The reasons for the disapproval; and

[[Page 48638]]

    (2) A statement that the decision is a final agency action and is 
subject to judicial review.


Sec.  224.77  Who may appeal the Secretary's decision on a final 
proposed agreement or a revised final proposed agreement?

    Only a tribe applying for an agreement may appeal the Secretary's 
decision to disapprove a final proposed agreement or a revised final 
proposed agreement in accordance with the appeal procedures contained 
in subpart I of this part. No other person or entity may appeal the 
Secretary's decision. The Secretary's decision to approve a final 
proposed agreement or a revised final proposed agreement is a final 
agency action.

Subpart D--Implementation of Tribal Energy Resource Agreements

Applicable Authorities and Responsibilities


Sec.  224.80  Under what authority will a tribe perform activities for 
energy resource development undertaken under an agreement?

    A tribe will perform activities for energy resource development 
activities undertaken under an agreement under the authorities provided 
in the approved agreement. Notwithstanding anything in this part or an 
approved agreement to the contrary, a tribe will retain all sovereign 
and other powers it otherwise possesses.


Sec.  224.81  What laws are applicable to activities under an 
agreement?

    Federal and tribal laws apply to activities under an agreement, 
unless otherwise specified in the agreement.


Sec.  224.82  What services will the Department provide to a tribe 
after approval of an agreement?

    After approval of an agreement, the services the Department will 
provide to a tribe include:
    (a) Access to title status information and support services needed 
by a tribe in the course of evaluating proposals for leases, business 
agreements, or Rights-of Way;
    (b) Coordination between the tribe and the Department for ongoing 
maintenance of accurate real property records;
    (c) Access to technical support services within the Department to 
assist the tribe in evaluating the physical, economic, financial, 
cultural, social, environmental, and legal consequences of approving 
proposals for leases, business agreements, or rights-of-way under an 
agreement;
    (d) Assistance to ensure that violations of the terms of leases, 
business agreements, or rights-of-way and applicable provisions of 
Federal law by third parties are handled appropriately; and
    (e) Any other Department activities that the agreement does not 
affect.


Sec.  224.83  What are the responsibilities of a tribe following 
execution of leases, business agreements, and rights-of-way under an 
agreement?

    Following execution of leases, business agreements, and rights-of-
way under an agreement, a tribe must:
    (a) Inform the public of approval of a lease, business agreement, 
or right-of-way under the agreement;
    (b) Send a copy of the executed lease, business agreement, or 
right-of-way, or amendments, to the Director within one business day of 
execution. The copy must be sent by certified mail return receipt 
requested or by overnight delivery; and
    (c) Provide, to the Director, sufficient information and 
documentation of payments made directly to the tribe to enable the 
Secretary to discharge the trust responsibility of the United States to 
enforce the terms of, and the rights of the tribe, under a lease, 
business agreement, or right-of-way.

Leases, Business Agreements, and Rights-of-Way Under an Agreement


Sec.  224.84  When may a tribe grant a right-of-way under an agreement?

    A tribe may grant a right-of-way under an agreement if the grant of 
right-of-way is over tribal land for a pipeline or an electric 
transmission or distribution line if the pipeline or electric 
transmission or distribution line serves.
    (a) An electric generation, transmission, or distribution facility 
located on tribal land; or
    (b) A facility located on tribal land that processes or refines 
energy resources developed on tribal land.


Sec.  224.85  When may a tribe enter into a lease or business agreement 
under an agreement?

    A tribe may enter into a lease or business agreement for the 
purpose of energy resource development on tribal land for:
    (a) Exploration for, extraction of, processing of, or other 
development of the tribe's energy resources;
    (b) Construction or operation of an electric generation, 
transmission, or distribution facility located on tribal; and
    (c) A facility to process or refine energy resources developed on 
tribal land.


Sec.  224.86  Are there limits for terms of leases, business 
agreements, and rights-of-way entered into under an agreement?

    Yes. There are limits for terms of leases, business agreements, and 
rights-of-way as follows:
    (a) For leases and business agreements, except as provided in 
paragraph (b) of this section, terms are limited to 30 years;
    (b) For leases for production of oil resources and gas resources, 
or both, terms are limited to 10 years and as long after as oil or gas 
production continues in paying quantities; and
    (c) For rights-of-way, terms are limited to 30 years.

Violation or Breach


Sec.  224.87  What are the responsibilities of a tribe if it discovers 
a violation or breach?

    As soon as practicable after discovering or receiving notice of a 
Violation or Breach of a lease, business agreement, or right-of-way or 
a Federal or tribal environmental law resulting from an activity 
undertaken under a lease, business agreement, or right-of-way, the 
tribe must provide written notice to the Director describing:
    (a) The nature of the Violation or Breach in reasonable detail;
    (b) The corrective action taken or planned by the tribe; and
    (c) The proposed period for the corrective action to be completed.


Sec.  224.88  What are the responsibilities of the Director after 
receiving notice of a violation or breach from the tribe?

    After receiving notice of a violation or breach from the tribe, the 
Director will review the notice and:
    (a) If the Director determines that a violation or breach does not 
cause imminent jeopardy to a physical trust asset, the Director will 
review, for concurrence or disapproval, the corrective action to be 
taken by the tribe and the proposed period for completion of the 
corrective action.
    (b) If the Director determines that a violation or breach causes 
imminent jeopardy to a physical trust asset, the Director will proceed 
under the imminent jeopardy provisions of subpart F.
    (c) Before making a determination whether a violation or breach 
will or will not cause imminent jeopardy to a physical trust asset, the 
Director may, as appropriate:
    (1) Conduct an on-site inspection; and
    (2) Review relevant transactions and reports.

[[Page 48639]]

Sec.  224.89  What procedures will the Secretary use to enforce leases, 
business agreements, or rights-of-way entered into under an agreement?

    When appropriate, the Secretary will use the notification and 
enforcement procedures established in 25 CFR parts 162, 211 and 225 to 
ensure compliance with leases and business agreements. When 
appropriate, the Secretary will use the notification and enforcement 
procedures of 25 CFR part 169 to ensure compliance with rights-of-way. 
All enforcement remedies established in 25 CFR parts 162, 211, 225, and 
169 are available to the Secretary. The Secretary and a tribe will 
consult with each other regarding enforcement of and Secretarial 
assistance needed to enforce leases, business agreements, or rights-of-
way.

Subpart E--Interested Party Petitions


Sec.  224.100  May a person or entity ask the Secretary to review a 
tribe's compliance with an agreement?

    In accordance with this subpart, a person or entity that is an 
interested party may submit a petition to review a tribe's compliance 
with an agreement to the Secretary. However, before filing a petition 
with the Secretary, a person or entity that is an interested party must 
first exhaust tribal remedies, if a tribe has provided for tribal 
remedies. If a tribe has not provided for tribal remedies, the person 
or entity that is an interested party may file a petition directly with 
the Secretary.


Sec.  224.101  Who is an interested party?

    An interested party is a person or an entity that has demonstrated 
that an interest of the person or entity has sustained, or will 
sustain, an adverse environmental impact because of a tribe's failure 
to comply with an agreement.


Sec.  224.102  Must a tribe establish a comment or hearing process 
under an agreement for addressing environmental concerns?

    Yes. The Act (25 U.S.C. 3504(e)(2)(C)(iii)(I), (II) and 25 U.S.C. 
3504(e)(2)(B)(iii)(X)) and this subpart require that a tribe must 
establish an environmental review process under an agreement that:
    (a) Ensures that the public is notified about and has an 
opportunity to comment on the environmental impacts of proposed tribal 
action to be taken under an agreement;
    (b) Requires that a tribe respond to relevant and substantive 
comments about the environmental impacts of a proposed tribal action 
before a tribe approves a lease, business agreement, or right-of-way; 
and
    (c) Establishes a process for consultation with any affected States 
regarding off-reservation environmental impacts, if any, resulting from 
approval of a lease, business agreement, or right-of-way.


Sec.  224.103  Must a tribe establish a process for public 
participation regarding an agreement or activities undertaken under an 
agreement?

    No. Except for the environmental review process required by the Act 
and Sec.  224.63(b)(i), a tribe is not required to establish a process 
for public participation, including taking comments or holding 
hearings, regarding an agreement or activities undertaken under an 
agreement. However, a tribe may elect to establish procedures that 
permit persons or entities to participate in public hearings or that 
expand the scope of matters about which the public may comment.


Sec.  224.104  Must a tribe enact tribal laws, regulations, or 
procedures permitting persons or entities to allege a tribe's 
noncompliance with an agreement?

    No. A tribe is not required to enact tribal laws, regulations, or 
procedures permitting persons or entities to allege that a tribe does 
not comply with its agreement. However, a tribe may elect to enact 
laws, regulations, or procedures permitting persons or entities to 
allege that a tribe does not comply with its agreement.


Sec.  224.105  How may a person or entity obtain copies of tribal laws, 
regulations, or procedures that establish hearing or comment processes 
or that permit allegations of a tribe's noncompliance with its 
agreement?

    A person or entity may obtain copies of tribal laws, regulations, 
or procedures that establish a hearing or comment process or that 
permit allegations of a tribe's noncompliance under its agreement by 
requesting such information from the tribe under procedures established 
in the agreement. Under Sec.  224.63 the agreement must:
    (a) Cite applicable tribal laws, regulations, or procedures in 
place at the time the agreement is approved that establish tribal 
hearing or comment procedures regarding an agreement or activities 
undertaken under an agreement;
    (b) Cite applicable tribal laws, regulations, or procedures in 
place at the time the agreement is approved permitting allegations of a 
tribe's noncompliance with its agreement;
    (c) Describe how, when, and under what conditions copies of current 
applicable tribal laws, regulations, or procedures or amendments may be 
obtained from the tribe; and
    (d) Require a tribe to supply the Secretary with citations to 
amendments and supplements to applicable laws, regulations, or 
procedures that the tribe adopts after the effective date of an 
agreement related to tribal hearing or comment processes or to 
establishment of tribal remedies for challenging tribal action or 
inaction under an agreement, which citations the Secretary will append 
to the agreement.


Sec.  224.106  If a tribe has enacted tribal laws, regulations, or 
procedures for challenging tribal action under an agreement, how must 
the tribe respond to a petitioner's challenge?

    If a tribe has enacted tribal laws, regulations, or procedures 
under which a petitioner may file a petition alleging noncompliance 
with an agreement, the tribe must:
    (a) Within a reasonable time issue a written decision under the 
tribal laws, regulations, or procedures that addresses the allegation , 
which decision may include a determination of whether the petitioner is 
an interested party; and
    (b) Provide a copy of its written decision to the petitioner.


Sec.  224.107  What must a petitioner claim or request in a petition 
filed with the Secretary?

    In a petition filed with the Secretary, a petitioner must:
    (a) Claim that the tribe, through its action or inaction:
    (1) Has failed to comply with terms or provisions of an agreement; 
and
    (2) That, because of the tribe's noncompliance, the petitioner's 
interest has sustained or will sustain an adverse environmental impact;
    (b) Request that the Secretary review the matters described in the 
petition; and
    (c) Request that the Secretary take action necessary to bring a 
tribe into compliance with the agreement.


Sec.  224.108  What must a petition contain?

    A petition must contain:
    (a) The name and contact information of the petitioner;
    (b) Specific facts demonstrating that the petitioner is an 
interested party under Sec.  224.101;
    (c) Specific facts demonstrating that the petitioner participated 
in a tribal hearing or comment process regarding the tribal action to 
which the petitioner objects, if a hearing or comment process was 
available;
    (d) Specific facts demonstrating that the petitioner exhausted 
tribal remedies, if tribal laws, regulations, or procedures

[[Page 48640]]

permitted the petitioner to allege tribal noncompliance with an 
agreement to which the petitioner objects and that the petitioner 
followed to completion the procedures accorded by those tribal laws, 
regulations, or procedures;
    (e) A description of the petitioner's allegation of noncompliance 
with an agreement;
    (f) A description of the adverse environmental impact that the 
petitioner's interest has sustained or will sustain because of the 
tribe's noncompliance with the agreement;
    (g) A copy of any written decisions the tribe issued responding to 
the petitioner's allegation;
    (h) If applicable, a statement that the tribe has issued no written 
decision within a reasonable time related to an allegation a petitioner 
has filed with the tribe under applicable tribal laws, regulations, or 
procedures;
    (i) A description of the action the Secretary may take under Sec.  
224.120 to bring the tribe into compliance with the agreement; and
    (j) Any other information relevant to the petition.


Sec.  224.109  What must a petitioner do before filing a petition with 
the Secretary?

    Before a petitioner may file a petition with the Secretary under 
this subpart, the petitioner must have:
    (a) Participated in the tribal process, if the tribe has laws, 
regulations, or procedures that provided the petitioner an opportunity 
to participate in a tribal hearing or comment process regarding 
allegations of tribal noncompliance; and
    (b) Pursued to completion procedures accorded by those tribal laws, 
regulations, or procedures.


Sec.  224.110  When may a petitioner file a petition with the 
Secretary?

    A petitioner may file a petition with the Secretary by delivering 
the petition to the Director:
    (a) Within 45 days of receipt of the tribe's written decision 
addressing the allegation of noncompliance under applicable tribal 
laws, regulations, or procedures.
    (b) If the tribe fails within a reasonable period to issue a 
written decision to an allegation of noncompliance with an agreement a 
petitioner brings under applicable tribal laws, regulations, or 
procedures, the Secretary will deem the allegation as having been 
denied. The Secretary will determine if the petitioner has filed the 
petition within a reasonable period following the constructive denial 
in light of the applicable facts and circumstances.
    (c) A petitioner may file a petition directly with the Secretary, 
if the tribe has no tribal laws, regulations or procedures that 
provided the petitioner an opportunity to allege tribal noncompliance 
with an Agreement.


Sec.  224.111  What must the Director do upon receipt of a petition?

    Within 20 days after receipt of a petition, the Director must:
    (a) Notify the tribe in writing that the Director has received a 
petition;
    (b) Provide a copy of the complete petition to the tribe;
    (c) Initiate a petition consultation with the tribe that will 
address the petitioner's allegation of a tribe's noncompliance with an 
agreement and alternatives to resolve the noncompliance; and
    (d) Notify the tribe in writing when the petition consultation is 
complete.


Sec.  224.112  What may a tribe do after it completes petition 
consultation with the Director?

    Within 45 days of the date of the Director's notice that the tribal 
petition consultation is complete, the tribe may respond to the 
petition by submitting a written response to the Director and the 
petitioner. If the tribe fails to submit a written response to the 
petition within those 45 days, the tribe will not be permitted to 
submit any additional information to the Director addressing the 
petition.


Sec.  224.113  How may the tribe address a petition in its written 
response?

    In its written response, the tribe may or may not dispute the 
petitioner's claims.
    (a) If the tribe disputes the petitioner's claims of tribal 
noncompliance with an agreement, in its written response, the tribe 
must describe why it disputes the petitioner's claims of noncompliance, 
including the tribe's interpretation of relevant provisions of the 
agreement and other legal requirements;
    (b) Whether or not the tribe disputes the petitioner's claims of 
tribal noncompliance with an agreement, in its written response, the 
tribe may:
    (1) Discuss whether the petitioner is an interested party;
    (2) State whether the petitioner participated in a hearing or 
comment process that was available with respect to the allegation of 
the tribe's noncompliance with an agreement that is the subject of the 
petition;
    (3) State whether the petitioner has exhausted tribal remedies;
    (4) Identify the steps, if any, the tribe will take to comply with 
the agreement and state when the steps will be taken; or
    (5) Offer a resolution of the petitioner's claim of the adverse 
environmental impact the petitioner's interest has sustained or will 
sustain because of the tribe's noncompliance with an agreement.


Sec.  224.114  What will the Director do if the tribe offers a 
resolution of a petitioner's claim in which the petitioner concurs?

    If the tribe submits a proposed resolution and a written statement 
signed by the petitioner that shows the petitioner concurs with the 
tribe's proposed resolution of the claim of adverse environmental 
impact to the petitioner's interest, the Director may accept the 
resolution, dismiss the petition, and notify the parties of the 
petition's dismissal.


Sec.  224.115  When must the Director make threshold determinations 
about a petition?

    The Director must make threshold determinations about a petition 
if:
    (a) The tribe does not submit a timely written response to a 
petition to the Director and the petitioner;
    (b) The tribe's written response does not include a proposed 
resolution in which the petitioner concurs; or
    (c) The Director did not accept the tribe's proposed resolution in 
which the petitioner agreed.


Sec.  224.116  What must the Director consider in making threshold 
determinations about a petition?

    The Director must consider the information contained in the 
petition and the information submitted in the tribe's written response, 
if applicable, and determine as threshold matters whether:
    (a) The petitioner is an interested party because;
    (1) An interest of the petitioner has sustained or will sustain an 
adverse environmental impact; and
    (2) The adverse environmental impact was the result of the failure 
of the tribe to comply with an agreement.
    (b) The petitioner participated in a tribal hearing or comment 
process under tribal laws, regulations, or procedures that were 
available with respect to the allegation of the tribe's noncompliance 
with an agreement that is the subject of the petition.
    (c) The petitioner exhausted tribal remedies under Sec.  224.109.


Sec.  224.117  When must the Director dismiss a petition after making 
the threshold determinations about a petition?

    After considering threshold determinations under Sec.  224.116, the 
Director must dismiss the petition if the Director determines that:
    (a) The petitioner is not an interested party;
    (b) The petitioner failed to participate under tribal laws, 
regulations, or

[[Page 48641]]

procedures in a tribal hearing or comment process that was available 
with respect to the allegation of the tribe's noncompliance with an 
agreement that is the subject of the petition, unless failure to 
participate was a result of the tribe's failure to provide the 
petitioner with notice of the tribal hearing or comment process 
following the petitioner's timely request for information; or
    (c) The petitioner failed to exhaust tribal remedies before 
submitting the petition, unless the failure to exhaust tribal remedies 
was because the tribe did not:
    (1) Issue a written decision within a reasonable time under tribal 
laws, regulations, or procedures that permitted an allegation of a 
tribe's noncompliance with an agreement that is the subject of the 
petition; or
    (2) Appropriately respond to the petitioner's timely request for 
copies of current applicable tribal laws, regulations, or procedures; 
permitting an allegation of a tribe's noncompliance with an agreement.


Sec.  224.118  How must the Director proceed if the Director dismisses 
a petition based on consideration of threshold determinations?

    If the Director dismisses a petition based on consideration of 
threshold determinations, the Director must:
    (a) Issue a written decision of dismissal that states the basis for 
the decision and includes finding of fact and conclusions of law; and
    (b) Provide a copy of the written decision of dismissal to the 
petitioner and the tribe, including a notification of the petitioner's 
right to appeal the dismissal to the Deputy Assistant Secretary--Policy 
and Economic Development under subpart I.


Sec.  224.119  How must the Director proceed if the Director does not 
dismiss the petition based on threshold determinations?

    If the Director does not dismiss the petition under Sec.  224.117, 
the Director must:
    (a) Evaluate the petition and determine whether the petition states 
a claim that:
    (1) The tribe failed to comply with one or more terms or provisions 
of an agreement; and
    (2) The Secretary's action is necessary to cure or otherwise 
resolve each claim of adverse environmental impact.
    (b) If the Director determines that the petition fails to state a 
claim, the Director must:
    (1) Issue a written decision of dismissal setting forth the basis 
for the decision;
    (2) Provide a copy of the written decision of dismissal to the 
petitioner and the tribe; and
    (3) Notify the tribe and the petitioner of the petitioner's right 
to appeal the dismissal to the Deputy Assistant Secretary--Policy and 
Economic Development under subpart I.


Sec.  224.120  How must the Director proceed with a petition if it 
meets the threshold determinations?

    If the Director determines a petition meets the threshold 
determinations of Sec.  224.116, the Director must:
    (a) Issue a written notice to the tribe which states that the 
Director has accepted the petition and that the tribe must provide a 
written response within 30 days of receipt of the written notice or 
provide a written statement that the tribe is declining to provide a 
written response;
    (b) Review and analyze the claims alleged in the petition and the 
tribe's response, if any, to determine what action the tribe or the 
Secretary must take to prevent, diminish, eliminate, or reverse the 
adverse environmental impact alleged in the petition;
    (c) Review and analyze the claims alleged in the petition and the 
tribe's response to determine what action the tribe or the Secretary 
must take to cure the alleged violation of the agreement;
    (d) Review and analyze the tribe's proposed resolution, if any, to 
determine whether that proposal will resolve the alleged adverse 
environmental impact;
    (e) Accept or reject the tribe's proposed resolution;
    (f) Issue a written decision to the petitioner and the tribe that 
states the basis for the Director's decision including:
    (1) Findings of fact and conclusions of law; and
    (2) A statement that either party, the petitioner or the tribe, has 
the right to appeal the Director's decision to the Deputy Assistant 
Secretary--Policy and Economic Development under subpart I; and
    (g) Issue a notice informing the tribe as to what action the 
Director has determined the tribe must take to cure the violation of 
the agreement, if any, or whether the Director has determined that the 
Secretary must take specified actions to cure the violation of the 
agreement, which may include reassumption under subpart G.


Sec.  224.121  What action must the Director take to bring a tribe into 
compliance with an agreement?

    Upon review of a petition, if the Director determines, that a tribe 
does not comply with an agreement, the Director must take action that 
the Director determines to be necessary to ensure compliance with the 
agreement, including:
    (a) Temporarily suspending any activity under a lease, business 
agreement, or right-of-way until the tribe complies with the agreement;
    (b) Rescinding approval of all or part of the agreement, or
    (c) Recommending that the Secretary reassume activities under 
subpart G.


Sec.  224.122  When must the Director act on a petition?

    (a) Within 120 days of the Director's receipt of a petition, the 
Director must act on the petition. The Director may:
    (1) Dismiss the petition;
    (2) Grant the petition; or
    (3) Take other action on the petition under this subpart.
    (b) The Director may extend the time for acting on a petition up to 
120 days in any case in which the Director determines that additional 
time is necessary to evaluate the allegations of the petition and the 
tribe's written response, if any. If the Director decides to extend the 
time, the Director must notify the petitioner and the tribe in writing 
of a determination and extension before expiration of the initial 120-
day period.


Sec.  224.123  How may a tribe or a petitioner appeal the Director's 
disposition of a petition?

    Either a tribe or a petitioner may appeal the Director's decision 
dismissing, granting, or otherwise disposing of the petition under this 
subpart to the Deputy Assistant Secretary--Policy and Economic 
Development.

Subpart F--Periodic Reviews


Sec.  224.130  What is the purpose of this subpart?

    This subpart describes how the Secretary and a tribe will develop 
and perform the periodic review and evaluation process required by the 
Act and by an agreement, when the Secretary may conduct other reviews 
and evaluations, and how the Secretary will determine and remedy 
noncompliance with an agreement and imminent jeopardy to a physical 
trust asset.


Sec.  224.131  What is a periodic review and evaluation?

    A periodic review and evaluation is an examination the Director 
performs to monitor a tribe's performance of activities associated with 
the development of energy resources and to

[[Page 48642]]

review compliance with an agreement. During the agreement consultation, 
a tribe and the Director will develop a periodic review and evaluation 
process that addresses the tribe's specific circumstances and the terms 
and conditions of the tribe's agreement. The tribe will include the 
agreed upon review and evaluation process in its final proposed 
agreement.


Sec.  224.132  How does the Director conduct a periodic review and 
evaluation?

    (a) The Director will conduct a periodic review and evaluation 
under the agreement, in consultation with the tribe, and in cooperation 
with other Department bureaus and offices whose activities were assumed 
by the tribe.
    (b) The Director will communicate with the tribal Designated 
Official throughout the process established by this section.
    (c) During the periodic review and evaluation, the Director will:
    (1) Review transactions and reports prepared under the agreement;
    (2) Conduct on-site inspections as appropriate; and
    (3) Review compliance with statutes and regulations applicable to 
activities undertaken under the agreement.
    (d) Review the effect on physical trust assets resulting from 
activities undertaken under an agreement.
    (e) Upon written request, the tribe must provide the Director with 
records and documents relevant to the provisions of an agreement.


Sec.  224.133  What must the Director do after a periodic review and 
evaluation?

    After a periodic review and evaluation, the Director must prepare a 
written report of the results of the periodic review and evaluation and 
send the report to the tribe.


Sec.  224.134  How often must the Director conduct a periodic review 
and evaluation?

    The Director must conduct a periodic review and evaluation annually 
during the first 3 years of an agreement. After the third annual review 
and evaluation, the Secretary and the tribe may mutually agree that 
periodic reviews and evaluations will be conducted once every 2 years.


Sec.  224.135  Under what circumstances may the Director conduct 
additional reviews and evaluations?

    The Director may conduct additional reviews and evaluations:
    (a) At a tribe's request;
    (b) As part of an investigation undertaken under a notice of 
Violation or Breach a tribe submits to the Director;
    (c) As part of an investigation undertaken under a petition 
submitted under subpart E; or
    (d) As follow-up to a determination of harm or the potential for 
harm to a physical trust asset previously identified in a periodic 
review and evaluation.

Noncompliance


Sec.  224.136  How will the Director's written report address a tribe's 
noncompliance with Federal law or the terms of an agreement?

    If the Director concludes, as a part of any review and evaluation 
or investigation of a notice of violation or breach, that the tribe has 
not complied with Federal law or the terms of an agreement, the 
Director's report must include a determination of whether the tribe's 
noncompliance has resulted in harm or the potential for harm to a 
physical trust asset. If the Director determines that the tribe's 
noncompliance has harmed or may harm a physical trust asset, the 
Director must also determine whether the noncompliance poses imminent 
jeopardy to a physical trust asset.


Sec.  224.137  What must the Director do if a tribe's noncompliance has 
resulted in harm or the potential for harm to a physical trust asset?

    If, because of the tribe's noncompliance with Federal law or the 
terms of an agreement, the Director determines that there is harm or 
the potential for harm to a physical trust asset that does not rise to 
the level of imminent jeopardy to a physical trust asset, the Director 
must:
    (a) Document the issue in the written report of the review and 
evaluation;
    (b) Report the issue in writing to the tribal governing body;
    (c) Report the issue in writing to the Assistant Secretary--Indian 
Affairs; and
    (d) Determine what action, if any, the Secretary must take to 
protect the physical trust asset.


Sec.  224.138  What must the Director do if a tribe's noncompliance has 
caused imminent jeopardy to a physical trust asset?

    If the Director determines that a tribe's noncompliance with 
Federal law or the terms of an agreement has caused imminent jeopardy 
to a physical trust asset, the Director must:
    (a) Document the issue in the written report of the review and 
evaluation; and
    (b) Immediately notify the tribe by a telephone call to the tribal 
Designated official followed by a written notice by facsimile to the 
tribal Designated official and the tribal governing body of the 
imminent jeopardy to a physical trust asset which notice must contain:
    (1) A description of the tribe's noncompliance with Federal law or 
the terms of the agreement;
    (2) A description of the physical trust asset and the nature of the 
imminent jeopardy to a physical trust asset resulting from the tribe's 
noncompliance; and
    (3) An order to the tribe to cease specific conduct or take 
specific action deemed necessary by the Director to correct any 
condition that caused the imminent jeopardy to a physical trust asset.


Sec.  224.139  What must a tribe do after receiving a notice of 
imminent jeopardy to a physical trust asset?

    (a) Upon receipt of the notice of imminent jeopardy to a physical 
trust asset, the tribe must cease specific conduct or take specific 
action ordered by the Director as necessary to correct any condition 
causing imminent jeopardy to a physical trust asset; and
    (b) Within 5 days of receipt of a notice of imminent jeopardy to a 
physical trust asset the tribe must submit a written response to the 
Director that:
    (1) Responds to the Secretary's finding that the tribe has failed 
to comply with applicable Federal law or the terms of the agreement;
    (2) Responds to the Secretary's finding of imminent jeopardy to a 
physical trust asset;
    (3) Describes the status of the tribe's cessation of specific 
conduct or specific action the tribe has taken to correct any condition 
causing imminent jeopardy to a physical trust asset; and
    (4) Describes what further actions, if any, the tribe proposes to 
take to correct any condition causing imminent jeopardy to a physical 
trust asset.


Sec.  224.140  What must the Secretary do if the tribe fails to respond 
to or does not comply with the Director's order?

    If the tribe does not respond to or does not comply with the 
Director's order under Sec.  224.138(b)(iii), the Secretary may take 
any actions the Secretary deems appropriate to protect the physical 
trust asset and will immediately reassume all activities the tribe 
assumed under the agreement. The procedures in subpart G do not apply 
to reassumption under this section.


Sec.  224.141  What must the Secretary do if the tribe responds to the 
Director's order?

    (a) If the tribe responds in a timely manner to the Director's 
order under Sec.  224.138, the Secretary must:
    (1) Consider the tribe's response;
    (2) Determine whether or not the tribe has complied with the 
agreement and Federal law; and
    (3) If the Secretary determines, after reviewing the tribe's 
response, that the tribe has not complied with the agreement or with 
Federal law, the

[[Page 48643]]

Secretary will determine whether the noncompliance caused imminent 
jeopardy to a physical trust asset.
    (b) If the Secretary determines that the tribe's noncompliance has 
caused imminent jeopardy to a physical trust asset, the Secretary may:
    (1) Order the tribe to take further action deemed necessary by the 
Secretary to protect the physical trust asset; or
    (2) Take action deemed necessary to protect the physical trust 
asset, including reassumption under subpart G.
    (c) If the Secretary determines, after reviewing the tribe's 
response, that the tribe has complied with the agreement and with 
Federal law, the Secretary will withdraw the Director's order.
    (d) The Secretary must base a finding of imminent jeopardy to a 
physical trust asset on the tribe's violation of an agreement or 
applicable Federal law.

Subpart G--Reassumption


Sec.  224.150  What is the purpose of this subpart?

    This subpart explains when and how the Secretary may reassume all 
or certain activities included within an agreement without the consent 
of a tribe.


Sec.  224.151  When may the Secretary reassume activities under an 
agreement?

    Upon issuing a written finding of imminent jeopardy to a physical 
trust asset, the Secretary may reassume activities under an agreement 
in accordance with this subpart. The Secretary may issue a finding of 
imminent jeopardy to a physical trust asset following any review and 
evaluation of a tribe's compliance with an agreement. The Secretary may 
also reassume activities approved under an agreement in response to a 
petition from an interested party under subpart E. Only the Secretary 
or the Assistant Secretary--Indian Affairs may reassume activities 
under an agreement.


Sec.  224.152  Must the Secretary always reassume the activities under 
an agreement upon a finding of imminent jeopardy to a physical trust 
asset?

    (a) The Secretary may take whatever actions the Secretary deems 
appropriate to protect the physical trust asset. These actions may, at 
the discretion of the Secretary, include reassumption of the activities 
under an agreement.
    (b) If the tribe does not respond to or does not comply with the 
Director's order under Sec.  224.138(b)(iii), the Secretary will 
immediately reassume all activities the tribe assumed under the 
agreement. The procedures in this subpart will not apply to that 
immediate reassumption.

Notice of Intent To Reassume


Sec.  224.153  Must the Secretary notify the tribe of an intent to 
reassume activities under an agreement?

    If the Secretary determines under Sec.  224.152 that reassumption 
is appropriate to protect the physical trust asset, the Secretary will 
issue a written notice to the tribal governing body of the Secretary's 
intent to reassume.


Sec.  224.154  What must a notice of intent to reassume include?

    A notice of intent to reassume must include:
    (a) A statement of the reasons for the intended reassumption, 
including, as applicable, a copy of the Secretary's written finding of 
imminent jeopardy to a physical trust asset;
    (b) A description of specific measures that the tribe must take to 
correct the violation and any condition that caused the imminent 
jeopardy;
    (c) The time period within which the tribe must take the measures 
to correct the violation and any condition that caused the imminent 
jeopardy to a physical trust asset; and
    (d) The effective date of the reassumption if the tribe does not 
meet the requirements in paragraphs (b) and (c) of this section.


Sec.  224.155  When must a tribe respond to a notice of intent to 
reassume?

    The tribe must respond to the Director in writing by mail, 
facsimile, or overnight express within 5 days of receipt of the 
Secretary's notice of intent to reassume. If sent by mail, the tribe 
must send the response by certified mail, return receipt requested, and 
the postmark date will be considered the date of response.


Sec.  224.156  What information must the tribe's response to the notice 
of intent to reassume include?

    The tribe's response to the notice of intent to reassume must 
state:
    (a) That the tribe has complied with the Secretary's requirements 
in the notice of intent to reassume;
    (b) The measures that the tribe is taking to comply with the 
Secretary's requirements, and when the tribe will complete such 
measures, if the time required under Sec.  224.154(c) to complete the 
required measures is greater than 5 days; or
    (c) A declaration that the tribe will not comply with the 
Secretary's required measures.


Sec.  224.157  How must the Secretary proceed after receiving the 
tribe's response?

    (a) If the Secretary determines that the tribe's measures to comply 
with the Secretary's requirements are adequate or will be adequate to 
correct the violation and any condition that caused the imminent 
jeopardy or the adverse environmental impact alleged in a petition from 
an interested party, the Secretary will:
    (1) Notify the tribe of the acceptance in writing; and
    (2) Terminate the reassumption proceedings in writing.
    (b) If the Secretary determines that the tribe's measures to comply 
with the Secretary's requirements are not adequate, then the Secretary 
will issue a written notice of reassumption.


Sec.  224.158  What must the Secretary include in a written notice of 
reassumption?

    The notice of reassumption must include:
    (a) A description of the activities the Secretary is reassuming;
    (b) The reasons for the determination under Sec.  224.157(a);
    (c) The effective date of the reassumption; and
    (d) A statement that the decision is a final agency action and is 
subject to judicial review.


Sec.  224.159  How will reassumption affect valid existing rights that 
vested or lawful actions taken by the tribe or the Secretary before the 
effective date of the reassumption?

    Reassumption will not affect valid existing rights that vested 
before the effective date of the reassumption or lawful actions the 
tribe and the Secretary took before the effective date of the 
reassumption.


Sec.  224.160  How will reassumption affect an agreement?

    Reassumption of an agreement applies to all activities undertaken 
under an agreement.


Sec.  224.161  How may reassumption affect the tribe's ability to 
modify an agreement, administer additional activities or to assume 
administration of activities that the Secretary previously reassumed?

    Following reassumption, the tribe may request to modify an 
agreement, administer additional activities, or assume administration 
of activities the Secretary previously reassumed. In reviewing a 
subsequent tribal request, however, the Director may consider the fact 
that activities were reassumed and any changes in circumstances 
supporting the tribe's request.

[[Page 48644]]

Subpart H--Rescission


Sec.  224.170  What is the purpose of this subpart?

    This subpart explains the process and requirements under which a 
tribe may rescind an agreement and return to the Secretary the 
responsibility to approve any future leases, business agreements, or 
rights-of-way related to energy resource development previously covered 
under the agreement.


Sec.  224.171  Who may rescind an agreement?

    A tribe, acting through a resolution passed by the tribal governing 
body, may rescind an agreement and return to the Secretary the 
responsibility to approve any future leases, business agreements, or 
rights-of-way related to energy resource development.


Sec.  224.172  May a tribe rescind its authority to approve or 
disapprove a specific future lease, business agreement, or right-of-way 
or the development of a specific energy resource or geographic area?

    No. A tribe may only rescind an agreement, not its authority to 
approve a specific future lease, business agreement, or right-of-way 
under an agreement or the development of a specific energy resource or 
geographic area.


Sec.  224.173  How does a tribe rescind an agreement?

    To rescind an agreement, a tribe must submit to the Secretary a 
written tribal resolution or other official action of the tribe's 
governing body voluntarily rescinding the agreement.


Sec.  224.174  When does a voluntary rescission become effective?

    A voluntary rescission becomes effective on the date specified by 
the Secretary, provided that the date is no more than 90 days after the 
Secretary receives the tribal resolution or other official action the 
tribe submits under Sec.  224.173.


Sec.  224.175  How will rescission affect rights that vested before the 
effective date of the rescission or lawful actions taken by the tribe 
or the Secretary before the effective date of the rescission?

    Rescission does not affect rights that vested before the effective 
date of the rescission or lawful actions taken by the tribe and the 
Secretary before the effective date of the rescission.

Subpart I--General Appeal Procedures


Sec.  224.180  What is the purpose of this subpart?

    The purpose of this subpart is to explain who may appeal 
Departmental decisions or inaction under this part and the initial 
administrative appeal processes, and general administrative appeal 
processes, including how 25 CFR part 2 and 43 CFR part 4 apply, and the 
effective dates for appeal decisions.


Sec.  224.181  Who may appeal Department decisions or inaction under 
this part?

    The following persons or entities may appeal Department decisions 
or inaction under this part:
    (a) A tribe that is unfavorably affected by a decision of or 
inaction by an official of the Department of the Interior under this 
part;
    (b) A person or entity who has entered into a lease, right-of-way, 
or business agreement and is unfavorably affected by a decision of or 
inaction by a Department official under this part; or
    (c) An interested party who is unfavorably affected by a decision 
of or inaction by the Director under subpart E, provided that the 
interested party may appeal only those issues raised in its prior 
participation under subpart E and may not appeal any other decision 
rendered or inaction under this part.


Sec.  224.182  What is the Initial Appeal Process?

    The initial appeal process is as follows:
    (a) Within 30 days of receipt of an adverse decision by the 
Director or within 30 days after the time periods within which the 
Director was required to act under subpart E, a party that may appeal 
under this subpart may file an appeal to the Deputy Assistant 
Secretary--Policy and Economic Development.
    (b) Within 60 days of receipt of an appeal, the Deputy Assistant 
Secretary--Policy and Economic Development will review the record and 
issue a written decision on the appeal.
    (c) Within 7 days of a decision by the Deputy Assistant Secretary--
Policy and Economic Development, the Secretary will provide a written 
copy of the decision to the tribe and other participating parties.


Sec.  224.183  What other administrative appeals processes also apply?

    The administrative appeal processes in 25 CFR part 2 and 43 CFR 
part 4, subject to the limitations in Sec.  224.184, apply to:
    (a) An interested party's appeal from an adverse decision or 
inaction by the Deputy Assistant Secretary--Policy and Economic 
Development under Sec.  224.182; and
    (b) An appeal by a tribe or a person or entity that has entered 
into a lease, business agreement, or right-of-way from an adverse 
decision by or the inaction of a Department official taken under this 
part.


Sec.  224.184  How do other administrative appeals processes apply?

    The administrative appeals process in 25 CFR part 2 and 43 CFR part 
4 are modified, only as they apply to appeals under this part, as 
follows:
    (a) The definition of interested party in 25 CFR part 2 and as 
incorporated in 43 CFR part 4 does not apply to this part.
    (b) The right of persons or entities other than an appealing party 
to participate in appeals under 25 CFR part 2 and 43 CFR part 4 does 
not apply to this part, except as permitted under paragraph (c) of this 
section.
    (c) The only persons or entities, other than appealing parties 
under Sec.  224.181(a) to (c), who may participate in an appeal under 
this part are:
    (1) The Secretary, if an appeal is taken from a decision of the 
Director or Deputy Assistant Secretary--Policy and Economic 
Development;
    (2) A tribe, which may intervene, appear as an amicus curiae, or 
otherwise appear in any appeal taken under this part by a person or 
entity who has entered into a lease, business agreement, or right-of-
way with the tribe or by an interested party under this part; or
    (3) A person or entity that has entered into a lease, business 
agreement, or right-of-way with a tribe, which may intervene, appear as 
an amicus curiae, or otherwise appear in any appeal taken under this 
part by the tribe or by an interested party under this part.
    (d) Any obligation to provide notice and service upon non-appealing 
persons provided in 25 CFR part 2 and 43 CFR part 4 does not apply to 
this part, except that notice and service of all documents must be 
served consistent with the requirements of 25 CFR part 2 and 43 CFR 
part 4 on those persons or entities identified in paragraph (c) of this 
section.


Sec.  224.185  When are decisions under this part effective?

    Decisions under subpart I are effective as follows:
    (a) Decisions of the Secretary disapproving a final proposed 
agreement or revised final proposed agreement under subpart C, finding 
imminent jeopardy to a physical trust asset under subpart F, and 
decisions by the Secretary or the Assistant Secretary--Indian Affairs 
to reassume a program under subpart G are final for the Department and 
effective upon issuance.
    (b) Decisions under this part, other than those in paragraph (a) of 
this

[[Page 48645]]

section that are unfavorable to a tribe and in which an appeal is 
pending are not final for the Department and are not effective pending 
appeal, unless:
    (1) Before the decision, the tribe had an opportunity for a 
hearing;
    (2) After the decision was rendered, the tribe had a reasonable 
amount of time to attain compliance with the agreement; and
    (3) The Interior Board of Indian Appeals (Board), the Secretary, or 
Assistant Secretary--Indian Affairs issued a written decision that, 
notwithstanding a reasonable period to attain compliance with the 
agreement, the tribe has not attained compliance.
    (c) All other decisions rendered by the Board or the Assistant 
Secretary of Indian Affairs in an appeal from a Director's decision 
under subparts E, F, or G are effective when rendered by the Board, the 
Secretary, or the Assistant Secretary--Indian Affairs.

[FR Doc. 06-6852 Filed 8-18-06; 8:45 am]
BILLING CODE 4310-96-P


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