S. 1586

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

To reduce the fractionated ownership of Indian lands, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Indian Land Consolidation Act

Amendments of 2000’’.

TITLE I—INDIAN LAND CONSOLIDATION

SEC. 101. FINDINGS.

Congress finds that—

(1) in the 1800’s and early 1900’s, the United States sought

to assimilate Indian people into the surrounding non-Indian

culture by allotting tribal lands to individual members of Indian

tribes;

(2) as a result of the allotment Acts and related Federal

policies, over 90,000,000 acres of land have passed from tribal

ownership;

(3) many trust allotments were taken out of trust status,

often without their owner’s consent;

(4) without restrictions on alienation, allotment owners

were subject to exploitation and their allotments were often

sold or disposed of without any tangible or enduring benefit

to their owners;

(5) the trust periods for trust allotments have been

extended indefinitely;

(6) because of the inheritance provisions in the original

treaties or allotment Acts, the ownership of many of the trust

allotments that have remained in trust status has become

fractionated into hundreds or thousands of undivided interests,

many of which represent 2 percent or less of the total interests;

(7) Congress has authorized the acquisition of lands in

trust for individual Indians, and many of those lands have

also become fractionated by subsequent inheritance;

(8) the acquisitions referred to in paragraph (7) continue

to be made;

(9) the fractional interests described in this section often

provide little or no return to the beneficial owners of those

interests and the administrative costs borne by the United

States for those interests are inordinately high;

(10) in Babbitt v. Youpee (117 S Ct. 727 (1997)), the United

States Supreme Court found the application of section 207
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of the Indian Land Consolidation Act (25 U.S.C. 2206) to the

facts presented in that case to be unconstitutional, forcing

the Department of the Interior to address the status of thousands of undivided interests in trust and restricted lands;

(11)(A) on February 19, 1999, the Secretary of the Interior

issued a Secretarial Order which officially reopened the probate

of all estates where an interest in land was ordered to escheat

to an Indian tribe pursuant to section 207 of the Indian Land

Consolidation Act (25 U.S.C. 2206); and

(B) the Secretarial Order also directed appropriate officials

of the Bureau of Indian Affairs to distribute such interests

‘‘to the rightful heirs and beneficiaries without regard to 25

U.S.C. 2206’’;

(12) in the absence of comprehensive remedial legislation,

the number of the fractional interests will continue to grow

exponentially;

(13) the problem of the fractionation of Indian lands

described in this section is the result of a policy of the Federal

Government, cannot be solved by Indian tribes, and requires

a solution under Federal law.

(14) any devise or inheritance of an interest in trust or

restricted Indian lands is a matter of Federal law; and

(15) consistent with the Federal policy of tribal self-determination, the Federal Government should encourage the recognized tribal government that exercises jurisdiction over a reservation to establish a tribal probate code for that reservation.

SEC. 102. DECLARATION OF POLICY.

It is the policy of the United States—

(1) to prevent the further fractionation of trust allotments

made to Indians;

(2) to consolidate fractional interests and ownership of

those interests into usable parcels;

(3) to consolidate fractional interests in a manner that

enhances tribal sovereignty;

(4) to promote tribal self-sufficiency and self-determination;

and

(5) to reverse the effects of the allotment policy on Indian

tribes.

SEC. 103. AMENDMENTS TO THE INDIAN LAND CONSOLIDATION ACT.

The Indian Land Consolidation Act (25 U.S.C. 2201 et seq.)

is amended—

(1) in section 202—

(A) in paragraph (1), by striking ‘‘(1) ‘tribe’ ’’ and

inserting ‘‘(1) ‘Indian tribe’ or ‘tribe’ ’’;

(B) by striking paragraph (2) and inserting the following:

‘‘(2) ‘Indian’ means any person who is a member of any

Indian tribe or is eligible to become a member of any Indian

tribe, or any person who has been found to meet the definition

of ‘Indian’ under a provision of Federal law if the Secretary

determines that using such law’s definition of Indian is consistent with the purposes of this Act;’’;

(C) by striking ‘‘and’’ at the end of paragraph (3);

(D) by striking the period at the end of paragraph

(4) and inserting ‘‘; and’’; and

(E) by adding at the end the following:
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‘‘(5) ‘heirs of the first or second degree’ means parents,

children, grandchildren, grandparents, brothers and sisters of

a decedent.’’;

(2) in section 205—

(A) in the matter preceding paragraph (1)—

(i) by striking ‘‘Any Indian’’ and inserting ‘‘(a) IN

GENERAL.—Subject to subsection (b), any Indian’’;

(ii) by striking the colon and inserting the following: ‘‘. Interests owned by an Indian tribe in a

tract may be included in the computation of the

percentage of ownership of the undivided interests in

that tract for purposes of determining whether the

consent requirement under the preceding sentence has

been met.’’;

(iii) by striking ‘‘: Provided, That—’’ and inserting

the following:

‘‘(b) CONDITIONS APPLICABLE TO PURCHASE.—Subsection (a)

applies on the condition that—’’;

(B) in paragraph (2)—

(i) by striking ‘‘If,’’ and inserting ‘‘if’’; and

(ii) by adding ‘‘and’’ at the end; and

(C) by striking paragraph (3) and inserting the following:

‘‘(3) the approval of the Secretary shall be required for

a land sale initiated under this section, except that such

approval shall not be required with respect to a land sale

transaction initiated by an Indian tribe that has in effect a

land consolidation plan that has been approved by the Secretary

under section 204.’’;

(3) by striking section 206 and inserting the following:

‘‘SEC. 206. TRIBAL PROBATE CODES; ACQUISITIONS OF FRACTIONAL

INTERESTS BY TRIBES.

‘‘(a) TRIBAL PROBATE CODES.—

‘‘(1) IN GENERAL.—Notwithstanding any other provision of

law, any Indian tribe may adopt a tribal probate code to govern

descent and distribution of trust or restricted lands that are—

‘‘(A) located within that Indian tribe’s reservation; or

‘‘(B) otherwise subject to the jurisdiction of that Indian

tribe.

‘‘(2) POSSIBLE INCLUSIONS.—A tribal probate code referred

to in paragraph (1) may include—

‘‘(A) rules of intestate succession; and

‘‘(B) other tribal probate code provisions that are consistent with Federal law and that promote the policies

set forth in section 102 of the Indian Land Consolidation

Act Amendments of 2000.

‘‘(3) LIMITATIONS.—The Secretary shall not approve a tribal

probate code if such code prevents an Indian person from inheriting an interest in an allotment that was originally allotted

to his or her lineal ancestor.

‘‘(b) SECRETARIAL APPROVAL.—

‘‘(1) IN GENERAL.—Any tribal probate code enacted under

subsection (a), and any amendment to such a tribal probate

code, shall be subject to the approval of the Secretary.

‘‘(2) REVIEW AND APPROVAL.—
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‘‘(A) IN GENERAL.—Each Indian tribe that adopts a

tribal probate code under subsection (a) shall submit that

code to the Secretary for review. Not later than 180 days

after a tribal probate code is submitted to the Secretary

under this paragraph, the Secretary shall review and

approve or disapprove that tribal probate code.

‘‘(B) CONSEQUENCE OF FAILURES TO APPROVE OR DISAPPROVE A TRIBAL PROBATE CODE.—If the Secretary fails

to approve or disapprove a tribal probate code submitted

for review under subparagraph (A) by the date specified

in that subparagraph, the tribal probate code shall be

deemed to have been approved by the Secretary, but only

to the extent that the tribal probate code is consistent

with Federal law and promotes the policies set forth in

section 102 of the Indian Land Consolidation Act Amendments of 2000.

‘‘(C) CONSISTENCY OF TRIBAL PROBATE CODE WITH

ACT.—The Secretary may not approve a tribal probate code,

or any amendment to such a code, under this paragraph

unless the Secretary determines that the tribal probate

code promotes the policies set forth in section 102 of the

Indian Land Consolidation Act Amendments of 2000.

‘‘(D) EXPLANATION.—If the Secretary disapproves a

tribal probate code, or an amendment to such a code,

under this paragraph, the Secretary shall include in the

notice of disapproval to the Indian tribe a written explanation of the reasons for the disapproval.

‘‘(E) AMENDMENTS.— ‘‘(i) IN GENERAL.—Each Indian tribe that amends

a tribal probate code under this paragraph shall submit

the amendment to the Secretary for review and

approval. Not later than 60 days after receiving an

amendment under this subparagraph, the Secretary

shall review and approve or disapprove the amendment.

‘‘(ii) CONSEQUENCE OF FAILURE TO APPROVE OR DIS- APPROVE AN AMENDMENT.—If the Secretary fails to

approve or disapprove an amendment submitted under

clause (i), the amendment shall be deemed to have

been approved by the Secretary, but only to the extent

that the amendment is consistent with Federal law

and promotes the policies set forth in section 102 of

the Indian Land Consolidation Act of 2000.

‘‘(3) EFFECTIVE DATES.—A tribal probate code approved

under paragraph (2) shall become effective on the later of—

‘‘(A) the date specified in section 207(g)(5); or

‘‘(B) 180 days after the date of approval.

‘‘(4) LIMITATIONS.—

‘‘(A) TRIBAL PROBATE CODES.—Each tribal probate code

enacted under subsection (a) shall apply only to the estate

of a decedent who dies on or after the effective date of

the tribal probate code.

‘‘(B) AMENDMENTS TO TRIBAL PROBATE CODES.—With

respect to an amendment to a tribal probate code referred

to in subparagraph (A), that amendment shall apply only

to the estate of a decedent who dies on or after the effective

date of the amendment.
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‘‘(5) REPEALS.—The repeal of a tribal probate code shall—

‘‘(A) not become effective earlier than the date that

is 180 days after the Secretary receives notice of the repeal;

and

‘‘(B) apply only to the estate of a decedent who dies

on or after the effective date of the repeal.

‘‘(c) AUTHORITY AVAILABLE TO INDIAN TRIBES.—

‘‘(1) IN GENERAL.—If the owner of an interest in trust

or restricted land devises an interest in such land to a nonIndian under section 207(a)(6)(A), the Indian tribe that exercises jurisdiction over the parcel of land involved may acquire

such interest by paying to the Secretary the fair market value

of such interest, as determined by the Secretary on the date

of the decedent’s death. The Secretary shall transfer such payment to the devisee.

‘‘(2) LIMITATION.—

‘‘(A) IN GENERAL.—Paragraph (1) shall not apply to

an interest in trust or restricted land if, while the

decedent’s estate is pending before the Secretary, the nonIndian devisee renounces the interest in favor of an Indian

person.

‘‘(B) RESERVATION OF LIFE ESTATE.—A non-Indian devisee described in subparagraph (A) or a non-Indian devisee

described in section 207(a)(6)(B), may retain a life estate

in the interest involved, including a life estate to the revenue produced from the interest. The amount of any payment required under paragraph (1) shall be reduced to

reflect the value of any life estate reserved by a nonIndian devisee under this subparagraph.

‘‘(3) PAYMENTS.—With respect to payments by an Indian

tribe under paragraph (1), the Secretary shall—

‘‘(A) upon the request of the tribe, allow a reasonable

period of time, not to exceed 2 years, for the tribe to

make payments of amounts due pursuant to paragraph

(1); or

‘‘(B) recognize alternative agreed upon exchanges of

consideration or extended payment terms between the nonIndian devisee described in paragraph (1) and the tribe

in satisfaction of the payment under paragraph (1).

‘‘(d) USE OF PROPOSED FINDINGS BY TRIBAL JUSTICE SYSTEMS.— ‘‘(1) TRIBAL JUSTICE SYSTEM DEFINED.—In this subsection,

the term ‘tribal justice system’ has the meaning given that

term in section 3 of the Indian Tribal Justice Act (25 U.S.C.

3602).

‘‘(2) REGULATIONS.—The Secretary by regulation may provide for the use of findings of fact and conclusions of law,

as rendered by a tribal justice system, as proposed findings

of fact and conclusions of law in the adjudication of probate

proceedings by the Department of the Interior.’’;

(4) by striking section 207 and inserting the following:

‘‘SEC. 207. DESCENT AND DISTRIBUTION.

‘‘(a) TESTAMENTARY DISPOSITION.—

‘‘(1) IN GENERAL.—Interests in trust or restricted land may

be devised only to—

‘‘(A) the decedent’s Indian spouse or any other Indian

person; or
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‘‘(B) the Indian tribe with jurisdiction over the land

so devised.

‘‘(2) LIFE ESTATE.—Any devise of an interest in trust or

restricted land to a non-Indian shall create a life estate with

respect to such interest.

‘‘(3) REMAINDER.—

‘‘(A) IN GENERAL.—Except where the remainder from

the life estate referred to in paragraph (2) is devised to

an Indian, such remainder shall descend to the decedent’s

Indian spouse or Indian heirs of the first or second degree

pursuant to the applicable law of intestate succession.

‘‘(B) DESCENT OF INTERESTS.—If a decedent described

in subparagraph (A) has no Indian heirs of the first or

second degree, the remainder interest described in such

subparagraph shall descend to any of the decedent’s collateral heirs of the first or second degree, pursuant to the

applicable laws of intestate succession, if on the date of

the decedent’s death, such heirs were a co-owner of an

interest in the parcel of trust or restricted land involved.

‘‘(C) DEFINITION.—For purposes of this section, the

term ‘collateral heirs of the first or second degree’ means

the brothers, sisters, aunts, uncles, nieces, nephews, and

first cousins, of a decedent.

‘‘(4) DESCENT TO TRIBE.—If the remainder interest

described in paragraph (3)(A) does not descend to an Indian

heir or heirs it shall descend to the Indian tribe that exercises

jurisdiction over the parcel of trust or restricted lands involved,

subject to paragraph (5).

‘‘(5) ACQUISITION OF INTEREST BY INDIAN CO-OWNERS.—An

Indian co-owner of a parcel of trust or restricted land may

prevent the descent of an interest in Indian land to an Indian

tribe under paragraph (4) by paying into the decedent’s estate

the fair market value of the interest in such land. If more

than 1 Indian co-owner offers to pay for such an interest,

the highest bidder shall obtain the interest. If payment is

not received before the close of the probate of the decedent’s

estate, the interest shall descend to the tribe that exercises

jurisdiction over the parcel.

‘‘(6) SPECIAL RULE.— ‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), an

owner of trust or restricted land who does not have an

Indian spouse, Indian lineal descendant, an Indian heir

of the first or second degree, or an Indian collateral heir

of the first or second degree, may devise his or her interests

in such land to any of the decedent’s heirs of the first

or second degree or collateral heirs of the first or second

degree.

‘‘(B) ACQUISITION OF INTEREST BY TRIBE.—An Indian

tribe that exercises jurisdiction over an interest in trust

or restricted land described in subparagraph (A) may

acquire any interest devised to a non-Indian as provided

for in section 206(c).

‘‘(b) INTESTATE SUCCESSION.—

‘‘(1) IN GENERAL.—An interest in trust or restricted land

shall pass by intestate succession only to a decedent’s spouse

or heirs of the first or second degree, pursuant to the applicable

law of intestate succession.
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‘‘(2) LIFE ESTATE.—Notwithstanding paragraph (1), with

respect to land described in such paragraph, a non-Indian

spouse or non-Indian heirs of the first or second degree shall

only receive a life estate in such land.

‘‘(3) DESCENT OF INTERESTS.—If a decedent described in

paragraph (1) has no Indian heirs of the first or second degree,

the remainder interest from the life estate referred to in paragraph (2) shall descend to any of the decedent’s collateral

Indian heirs of the first or second degree, pursuant to the

applicable laws of intestate succession, if on the date of the

decedent’s death, such heirs were a co-owner of an interest

in the parcel of trust or restricted land involved.

‘‘(4) DESCENT TO TRIBE.—If the remainder interest

described in paragraph (3) does not descend to an Indian heir

or heirs it shall descend to the Indian tribe that exercises

jurisdiction over the parcel of trust or restricted lands involved,

subject to paragraph (5).

‘‘(5) ACQUISITION OF INTEREST BY INDIAN CO-OWNERS.—An

Indian co-owner of a parcel of trust or restricted land may

prevent the descent of an interest in such land for which

there is no heir of the first or second degree by paying into

the decedent’s estate the fair market value of the interest

in such land. If more than 1 Indian co-owner makes an offer

to pay for such an interest, the highest bidder shall obtain

the interest. If no such offer is made, the interest shall descend

to the Indian tribe that exercises jurisdiction over the parcel

of land involved.

‘‘(c) JOINT TENANCY; RIGHT OF SURVIVORSHIP.—

‘‘(1) TESTATE.—If a testator devises interests in the same

parcel of trust or restricted lands to more than 1 person, in

the absence of express language in the devise to the contrary,

the devise shall be presumed to create joint tenancy with the

right of survivorship in the land involved.

‘‘(2) INTESTATE.—

‘‘(A) IN GENERAL.—Any interest in trust or restricted

land that—

‘‘(i) passes by intestate succession to more than

1 person, including a remainder interest under subsection (a) or (b) of section 207; and

‘‘(ii) that constitutes 5 percent or more of the undivided interest in a parcel of trust or restricted land;

shall be held as tenancy in common.

‘‘(B) LIMITED INTEREST.—Any interest in trust or

restricted land that—

‘‘(i) passes by intestate succession to more than

1 person, including a remainder interest under subsection (a) or (b) of section 207; and

‘‘(ii) that constitutes less than 5 percent of the

undivided interest in a parcel of trust or restricted

land;

shall be held by such heirs with the right of survivorship.

‘‘(3) EFFECTIVE DATE.—

‘‘(A) IN GENERAL.—This subsection (other than

subparagraph (B)) shall become effective on the later of—

‘‘(i) the date referred to in subsection (g)(5); or
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‘‘(ii) the date that is six months after the date

on which the Secretary makes the certification required

under subparagraph (B).

‘‘(B) CERTIFICATION.—Upon a determination by the Secretary that the Department of the Interior has the capacity,

including policies and procedures, to track and manage

interests in trust or restricted land held with the right

of survivorship, the Secretary shall certify such determination and publish such certification in the Federal Register.

‘‘(d) DESCENT OF OFF-RESERVATION LANDS.—

‘‘(1) INDIAN RESERVATION DEFINED.—For purposes of this

subsection, the term ‘Indian reservation’ includes lands located

within—

‘‘(A)(i) Oklahoma; and

‘‘(ii) the boundaries of an Indian tribe’s former reservation (as defined and determined by the Secretary);

‘‘(B) the boundaries of any Indian tribe’s current or

former reservation; or

‘‘(C) any area where the Secretary is required to provide special assistance or consideration of a tribe’s acquisition of land or interests in land.

‘‘(2) DESCENT.—Except in the State of California, upon

the death of an individual holding an interest in trust or

restricted lands that are located outside the boundaries of an

Indian reservation and that are not subject to the jurisdiction

of any Indian tribe, that interest shall descend either—

‘‘(A) by testate or intestate succession in trust to an

Indian; or

‘‘(B) in fee status to any other devises or heirs.

‘‘(e) APPROVAL OF AGREEMENTS.—The official authorized to

adjudicate the probate of trust or restricted lands shall have the

authority to approve agreements between a decedent’s heirs and

devisees to consolidate interests in trust or restricted lands. The

agreements referred to in the preceding sentence may include trust

or restricted lands that are not a part of the decedent’s estate

that is the subject of the probate. The Secretary may promulgate

regulations for the implementation of this subsection.

‘‘(f) ESTATE PLANNING ASSISTANCE.— ‘‘(1) IN GENERAL.—The Secretary shall provide estate planning assistance in accordance with this subsection, to the extent

amounts are appropriated for such purpose.

‘‘(2) REQUIREMENTS.—The estate planning assistance provided under paragraph (1) shall be designed to—

‘‘(A) inform, advise, and assist Indian landowners with

respect to estate planning in order to facilitate the transfer

of trust or restricted lands to a devisee or devisees selected

by the landowners; and

‘‘(B) assist Indian landowners in accessing information

pursuant to section 217(e).

‘‘(3) CONTRACTS.—In carrying out this section, the Secretary

may enter into contracts with entities that have expertise in

Indian estate planning and tribal probate codes.

‘‘(g) NOTIFICATION TO INDIAN TRIBES AND OWNERS OF TRUST

OR RESTRICTED LANDS.—

‘‘(1) IN GENERAL.—Not later than 180 days after the date

of enactment of the Indian Land Consolidation Act Amendments

of 2000, the Secretary shall notify Indian tribes and owners
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of trust or restricted lands of the amendments made by the

Indian Land Consolidation Act Amendments of 2000.

‘‘(2) SPECIFICATIONS.—The notice required under paragraph

(1) shall be designed to inform Indian owners of trust or

restricted land of—

‘‘(A) the effect of this Act, with emphasis on the effect

of the provisions of this section, on the testate disposition

and intestate descent of their interests in trust or restricted

land; and

‘‘(B) estate planning options available to the owners,

including any opportunities for receiving estate planning

assistance or advice.

‘‘(3) REQUIREMENTS.—The Secretary shall provide the

notice required under paragraph (1)—

‘‘(A) by direct mail for those Indians with interests

in trust and restricted lands for which the Secretary has

an address for the interest holder;

‘‘(B) through the Federal Register;

‘‘(C) through local newspapers in areas with significant

Indian populations, reservation newspapers, and newspapers that are directed at an Indian audience; and

‘‘(D) through any other means determined appropriate

by the Secretary.

‘‘(4) CERTIFICATION.—After providing notice under this subsection, the Secretary shall certify that the requirements of

this subsection have been met and shall publish notice of such

certification in the Federal Register.

‘‘(5) EFFECTIVE DATE.—The provisions of this section shall

not apply to the estate of an individual who dies prior to

the day that is 365 days after the Secretary makes the certification required under paragraph (4).’’;

(5) in section 208, by striking ‘‘section 206’’ and inserting

‘‘subsections (a) and (b) of section 206’’; and

(6) by adding at the end the following:

‘‘SEC. 213. PILOT PROGRAM FOR THE ACQUISITION OF FRACTIONAL

INTERESTS.

‘‘(a) ACQUISITION BY SECRETARY.—

‘‘(1) IN GENERAL.—The Secretary may acquire, at the discretion of the Secretary and with the consent of the owner, and

at fair market value, any fractional interest in trust or

restricted lands.

‘‘(2) AUTHORITY OF SECRETARY.—

‘‘(A) IN GENERAL.—The Secretary shall have the

authority to acquire interests in trust or restricted lands

under this section during the 3-year period beginning on

the date of certification that is referred to in section

207(g)(5).

‘‘(B) REQUIRED REPORT.—Prior to expiration of the

authority provided for in subparagraph (A), the Secretary

shall submit the report required under section 218 concerning whether the program to acquire fractional interests

should be extended or altered to make resources available

to Indian tribes and individual Indian landowners.

‘‘(3) INTERESTS HELD IN TRUST.—Subject to section 214,

the Secretary shall immediately hold interests acquired under
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this Act in trust for the recognized tribal government that

exercises jurisdiction over the land involved.

‘‘(b) REQUIREMENTS.—In implementing subsection (a), the

Secretary—

‘‘(1) shall promote the policies provided for in section 102

of the Indian Land Consolidation Act Amendments of 2000;

‘‘(2) may give priority to the acquisition of fractional

interests representing 2 percent or less of a parcel of trust

or restricted land, especially those interests that would have

escheated to a tribe but for the Supreme Court’s decision in

Babbitt v. Youpee (117 S Ct. 727 (1997));

‘‘(3) to the extent practicable—

‘‘(A) shall consult with the tribal government that exercises jurisdiction over the land involved in determining

which tracts to acquire on a reservation;

‘‘(B) shall coordinate the acquisition activities with the

acquisition program of the tribal government that exercises

jurisdiction over the land involved, including a tribal land

consolidation plan approved pursuant to section 204; and

‘‘(C) may enter into agreements (such agreements will

not be subject to the provisions of the Indian Self-Determination and Education Assistance Act of 1974) with the

tribal government that exercises jurisdiction over the land

involved or a subordinate entity of the tribal government

to carry out some or all of the Secretary’s land acquisition

program; and

‘‘(4) shall minimize the administrative costs associated with

the land acquisition program.

‘‘(c) SALE OF INTEREST TO INDIAN LANDOWNERS.— ‘‘(1) CONVEYANCE AT REQUEST.— ‘‘(A) IN GENERAL.—At the request of any Indian who

owns at least 5 percent of the undivided interest in a

parcel of trust or restricted land, the Secretary shall convey

an interest acquired under this section to the Indian landowner upon payment by the Indian landowner of the

amount paid for the interest by the Secretary.

‘‘(B) LIMITATION.—With respect to a conveyance under

this subsection, the Secretary shall not approve an application to terminate the trust status or remove the restrictions

of such an interest.

‘‘(2) MULTIPLE OWNERS.—If more than one Indian owner

requests an interest under paragraph (1), the Secretary shall

convey the interest to the Indian owner who owns the largest

percentage of the undivided interest in the parcel of trust

or restricted land involved.

‘‘(3) LIMITATION.—If an Indian tribe that has jurisdiction

over a parcel of trust or restricted land owns 10 percent or

more of the undivided interests in a parcel of such land, such

interest may only be acquired under paragraph (1) with the

consent of such Indian tribe.

‘‘SEC. 214. ADMINISTRATION OF ACQUIRED FRACTIONAL INTERESTS,

DISPOSITION OF PROCEEDS.

‘‘(a) IN GENERAL.—Subject to the conditions described in subsection (b)(1), an Indian tribe receiving a fractional interest under

section 213 may, as a tenant in common with the other owners

of the trust or restricted lands, lease the interest, sell the resources,
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consent to the granting of rights-of-way, or engage in any other

transaction affecting the trust or restricted land authorized by

law.

‘‘(b) CONDITIONS.—

‘‘(1) IN GENERAL.—The conditions described in this paragraph are as follows:

‘‘(A) Until the purchase price paid by the Secretary

for an interest referred to in subsection (a) has been recovered, or until the Secretary makes any of the findings

under paragraph (2)(A), any lease, resource sale contract,

right-of-way, or other document evidencing a transaction

affecting the interest shall contain a clause providing that

all revenue derived from the interest shall be paid to the

Secretary.

‘‘(B) Subject to subparagraph (C), the Secretary shall

deposit any revenue derived under subparagraph (A) into

the Acquisition Fund created under section 216.

‘‘(C) The Secretary shall deposit any revenue that is

paid under subparagraph (A) that is in excess of the purchase price of the fractional interest involved to the credit

of the Indian tribe that receives the fractional interest

under section 213 and the tribe shall have access to such

funds in the same manner as other funds paid to the

Secretary for the use of lands held in trust for the tribe.

‘‘(D) Notwithstanding any other provision of law,

including section 16 of the Act of June 18, 1934 (commonly

referred to as the ‘Indian Reorganization Act’) (48 Stat.

987, chapter 576; 25 U.S.C. 476), with respect to any

interest acquired by the Secretary under section 213, the

Secretary may approve a transaction covered under this

section on behalf of a tribe until—

‘‘(i) the Secretary makes any of the findings under

paragraph (2)(A); or

‘‘(ii) an amount equal to the purchase price of

that interest has been paid into the Acquisition Fund

created under section 216.

‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not apply to any

revenue derived from an interest in a parcel of land acquired

by the Secretary under section 213 after—

‘‘(A) the Secretary makes a finding that—

‘‘(i) the costs of administering the interest will

equal or exceed the projected revenues for the parcel

involved;

‘‘(ii) in the discretion of the Secretary, it will take

an unreasonable period of time for the parcel to generate revenue that equals the purchase price paid for

the interest; or

‘‘(iii) a subsequent decrease in the value of land

or commodities associated with the land make it likely

that the interest will be unable to generate revenue

that equals the purchase price paid for the interest

in a reasonable time; or

‘‘(B) an amount equal to the purchase price of that

interest in land has been paid into the Acquisition Fund

created under section 216.

‘‘(c) TRIBE NOT TREATED AS PARTY TO LEASE; NO EFFECT ON

TRIBAL SOVEREIGNTY, IMMUNITY.—
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‘‘(1) IN GENERAL.—Paragraph (2) shall apply with respect

to any undivided interest in allotted land held by the Secretary

in trust for a tribe if a lease or agreement under subsection

(a) is otherwise applicable to such undivided interest by reason

of this section even though the Indian tribe did not consent

to the lease or agreement.

‘‘(2) APPLICATION OF LEASE.—The lease or agreement

described in paragraph (1) shall apply to the portion of the

undivided interest in allotted land described in such paragraph

(including entitlement of the Indian tribe to payment under

the lease or agreement), and the Indian tribe shall not be

treated as being a party to the lease or agreement. Nothing

in this section (or in the lease or agreement) shall be construed

to affect the sovereignty of the Indian tribe.

‘‘SEC. 215. ESTABLISHING FAIR MARKET VALUE.

‘‘For purposes of this Act, the Secretary may develop a system

for establishing the fair market value of various types of lands

and improvements. Such a system may include determinations of

fair market value based on appropriate geographic units as determined by the Secretary. Such system may govern the amounts

offered for the purchase of interests in trust or restricted lands

under section 213.

‘‘SEC. 216. ACQUISITION FUND.

‘‘(a) IN GENERAL.—The Secretary shall establish an Acquisition

Fund to—

‘‘(1) disburse appropriations authorized to accomplish the

purposes of section 213; and

‘‘(2) collect all revenues received from the lease, permit,

or sale of resources from interests in trust or restricted lands

transferred to Indian tribes by the Secretary under section

213 or paid by Indian landowners under section 213(c).

‘‘(b) DEPOSITS; USE.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), all proceeds

from leases, permits, or resource sales derived from an interest

in trust or restricted lands described in subsection (a)(2) shall—

‘‘(A) be deposited in the Acquisition Fund; and

‘‘(B) as specified in advance in appropriations Acts,

be available for the purpose of acquiring additional fractional interests in trust or restricted lands.

‘‘(2) MAXIMUM DEPOSITS OF PROCEEDS.—With respect to

the deposit of proceeds derived from an interest under paragraph (1), the aggregate amount deposited under that paragraph shall not exceed the purchase price of that interest

under section 213.

‘‘SEC. 217. TRUST AND RESTRICTED LAND TRANSACTIONS.

‘‘(a) POLICY.—It is the policy of the United States to encourage

and assist the consolidation of land ownership through

transactions—

‘‘(1) involving individual Indians;

‘‘(2) between Indians and the tribal government that exercises jurisdiction over the land; or

‘‘(3) between individuals who own an interest in trust and

restricted land who wish to convey that interest to an Indian

or the tribal government that exercises jurisdiction over the

parcel of land involved;
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in a manner consistent with the policy of maintaining the trust

status of allotted lands. Nothing in this section shall be construed

to apply to or to authorize the sale of trust or restricted lands

to a person who is not an Indian.

‘‘(b) SALES, EXCHANGES AND GIFT DEEDS BETWEEN INDIANS

AND BETWEEN INDIANS AND INDIAN TRIBES.—

‘‘(1) IN GENERAL.—

‘‘(A) ESTIMATE OF VALUE.—Notwithstanding any other

provision of law and only after the Indian selling,

exchanging, or conveying by gift deed for no or nominal

consideration an interest in land, has been provided with

an estimate of the value of the interest of the Indian

pursuant to this section—

‘‘(i) the sale or exchange or conveyance of an

interest in trust or restricted land may be made for

an amount that is less than the fair market value

of that interest; and

‘‘(ii) the approval of a transaction that is in compliance with this section shall not constitute a breach

of trust by the Secretary.

‘‘(B) WAIVER OF REQUIREMENT.—The requirement for

an estimate of value under subparagraph (A) may be

waived in writing by an Indian selling, exchanging, or

conveying by gift deed for no or nominal consideration

an interest in land with an Indian person who is the

owner’s spouse, brother, sister, lineal ancestor of Indian

blood, lineal descendant, or collateral heir.

‘‘(2) LIMITATION.—For a period of 5 years after the Secretary approves a conveyance pursuant to this subsection, the

Secretary shall not approve an application to terminate the

trust status or remove the restrictions of such an interest.

‘‘(c) ACQUISITION OF INTEREST BY SECRETARY.—An Indian, or

the recognized tribal government of a reservation, in possession

of an interest in trust or restricted lands, at least a portion of

which is in trust or restricted status on the date of enactment

of the Indian Land Consolidation Act Amendments of 2000 and

located within a reservation, may request that the interest be

taken into trust by the Secretary. Upon such a request, the Secretary shall forthwith take such interest into trust.

‘‘(d) STATUS OF LANDS.—The sale, exchange, or conveyance

by gift deed for no or nominal consideration of an interest in

trust or restricted land under this section shall not affect the

status of that land as trust or restricted land.

‘‘(e) LAND OWNERSHIP INFORMATION.—Notwithstanding any

other provision of law, the names and mailing addresses of the

Indian owners of trust or restricted lands, and information on

the location of the parcel and the percentage of undivided interest

owned by each individual, or of any interest in trust or restricted

lands, shall, upon written request, be made available to—

‘‘(1) other Indian owners of interests in trust or restricted

lands within the same reservation;

‘‘(2) the tribe that exercises jurisdiction over the land where

the parcel is located or any person who is eligible for membership in that tribe; and

‘‘(3) prospective applicants for the leasing, use, or consolidation of such trust or restricted land or the interest in trust

or restricted lands.
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‘‘(f) NOTICE TO INDIAN TRIBE.—After the expiration of the limitation period provided for in subsection (b)(2) and prior to considering

an Indian application to terminate the trust status or to remove

the restrictions on alienation from trust or restricted land sold,

exchanged or otherwise conveyed under this section, the Indian

tribe that exercises jurisdiction over the parcel of such land shall

be notified of the application and given the opportunity to match

the purchase price that has been offered for the trust or restricted

land involved.

‘‘SEC. 218. REPORTS TO CONGRESS.

‘‘(a) IN GENERAL.—Prior to expiration of the authority provided

for in section 213(a)(2)(A), the Secretary, after consultation with

Indian tribes and other interested parties, shall submit to the

Committee on Indian Affairs and the Committee on Energy and

Natural Resources of the Senate and the Committee on Resources

of the House of Representatives a report that indicates, for the

period covered by the report—

‘‘(1) the number of fractional interests in trust or restricted

lands acquired; and

‘‘(2) the impact of the resulting reduction in the number

of such fractional interests on the financial and realty recordkeeping systems of the Bureau of Indian Affairs.

‘‘(b) REPORT.—The reports described in subsection (a) and section 213(a) shall contain findings as to whether the program under

this Act to acquire fractional interests in trust or restricted lands

should be extended and whether such program should be altered

to make resources available to Indian tribes and individual Indian

landowners.

‘‘SEC. 219. APPROVAL OF LEASES, RIGHTS-OF-WAY, AND SALES OF

NATURAL RESOURCES.

‘‘(a) APPROVAL BY THE SECRETARY.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of

law, the Secretary may approve any lease or agreement that

affects individually owned allotted land or any other land held

in trust or restricted status by the Secretary on behalf of

an Indian, if—

‘‘(A) the owners of not less than the applicable percentage (determined under subsection (b)) of the undivided

interest in the allotted land that is covered by the lease

or agreement consent in writing to the lease or agreement;

and

‘‘(B) the Secretary determines that approving the lease

or agreement is in the best interest of the owners of the

undivided interest in the allotted land.

‘‘(2) RULE OF CONSTRUCTION.—Nothing in this section shall

be construed to apply to leases involving coal or uranium.

‘‘(3) DEFINITION.—In this section, the term ‘allotted land’

includes any land held in trust or restricted status by the

Secretary on behalf of one or more Indians.

‘‘(b) APPLICABLE PERCENTAGE.—

‘‘(1) PERCENTAGE INTEREST.—The applicable percentage

referred to in subsection (a)(1) shall be determined as follows:

‘‘(A) If there are 5 or fewer owners of the undivided

interest in the allotted land, the applicable percentage shall

be 100 percent.
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‘‘(B) If there are more than 5 such owners, but fewer

than 11 such owners, the applicable percentage shall be

80 percent.

‘‘(C) If there are more than 10 such owners, but fewer

than 20 such owners, the applicable percentage shall be

60 percent.

‘‘(D) If there are 20 or more such owners, the applicable

percentage shall be a majority of the interests in the

allotted land.

‘‘(2) DETERMINATION OF OWNERS.—

‘‘(A) IN GENERAL.—For purposes of this subsection, in

determining the number of owners of, and their interests

in, the undivided interest in the allotted land with respect

to a lease or agreement, the Secretary shall make such

determination based on the records of the Department

of the Interior that identify the owners of such lands and

their interests and the number of owners of such land

on the date on which the lease or agreement involved

is submitted to the Secretary under this section.

‘‘(B) RULE OF CONSTRUCTION.—Nothing in subparagraph (A) shall be construed to authorize the Secretary

to treat an Indian tribe as the owner of an interest in

allotted land that did not escheat to the tribe pursuant

to section 207 as a result of the Supreme Court’s decision

in Babbitt v. Youpee (117 S Ct. 727 (1997)).

‘‘(c) AUTHORITY OF SECRETARY TO SIGN LEASE OR AGREEMENT

ON BEHALF OF CERTAIN OWNERS.—The Secretary may give written

consent to a lease or agreement under subsection (a)—

‘‘(1) on behalf of the individual Indian owner if the owner

is deceased and the heirs to, or devisees of, the interest of

the deceased owner have not been determined; or

‘‘(2) on behalf of any heir or devisee referred to in paragraph

(1) if the heir or devisee has been determined but cannot

be located

‘‘(d) EFFECT OF APPROVAL.—

‘‘(1) APPLICATION TO ALL PARTIES.—

‘‘(A) IN GENERAL.—Subject to paragraph (2), a lease

or agreement approved by the Secretary under subsection

(a) shall be binding on the parties described in subparagraph (B), to the same extent as if all of the owners

of the undivided interest in allotted land covered under

the lease or agreement consented to the lease or agreement.

‘‘(B) DESCRIPTION OF PARTIES.—The parties referred

to in subparagraph (A) are—

‘‘(i) the owners of the undivided interest in the

allotted land covered under the lease or agreement

referred to in such subparagraph; and

‘‘(ii) all other parties to the lease or agreement.

‘‘(2) TRIBE NOT TREATED AS PARTY TO LEASE; NO EFFECT

ON TRIBAL SOVEREIGNTY, IMMUNITY.—

‘‘(A) IN GENERAL.—Subparagraph (B) shall apply with

respect to any undivided interest in allotted land held

by the Secretary in trust for a tribe if a lease or agreement

under subsection (a) is otherwise applicable to such undivided interest by reason of this section even though the

Indian tribe did not consent to the lease or agreement.
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‘‘(B) APPLICATION OF LEASE.—The lease or agreement

described in subparagraph (A) shall apply to the portion

of the undivided interest in allotted land described in such

paragraph (including entitlement of the Indian tribe to

payment under the lease or agreement), and the Indian

tribe shall not be treated as being a party to the lease

or agreement. Nothing in this section (or in the lease

or agreement) shall be construed to affect the sovereignty

of the Indian tribe.

‘‘(e) DISTRIBUTION OF PROCEEDS.—

‘‘(1) IN GENERAL.—The proceeds derived from a lease or

agreement that is approved by the Secretary under subsection

(a) shall be distributed to all owners of undivided interest

in the allotted land covered under the lease or agreement.

‘‘(2) DETERMINATION OF AMOUNTS DISTRIBUTED.—The

amount of the proceeds under paragraph (1) that are distributed

to each owner under that paragraph shall be determined in

accordance with the portion of the undivided interest in the

allotted land covered under the lease or agreement that is

owned by that owner.

‘‘(f) RULE OF CONSTRUCTION.—Nothing in this section shall

be construed to amend or modify the provisions of Public Law

105–188 (25 U.S.C. 396 note), the American Indian Agricultural

Resources Management Act (25 U.S.C. 3701 et seq.), title II of

the Indian Land Consolidation Act Amendments of 2000, or any

other Act that provides specific standards for the percentage of

ownership interest that must approve a lease or agreement on

a specified reservation.

‘‘SEC. 220. APPLICATION TO ALASKA.

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) numerous academic and governmental organizations

have studied the nature and extent of fractionated ownership

of Indian land outside of Alaska and have proposed solutions

to this problem; and

‘‘(2) despite these studies, there has not been a comparable

effort to analyze the problem, if any, of fractionated ownership

in Alaska.

‘‘(b) APPLICATION OF ACT TO ALASKA.—Except as provided in

this section, this Act shall not apply to land located within Alaska.

‘‘(c) RULE OF CONSTRUCTION.—Nothing in this section shall

be construed to constitute a ratification of any determination by

any agency, instrumentality, or court of the United States that

may support the assertion of tribal jurisdiction over allotment lands

or interests in such land in Alaska.’’.

SEC. 104. JUDICIAL REVIEW.

Notwithstanding section 207(g)(5) of the Indian Land Consolidation Act (25 U.S.C. 2206(f)(5)), after the Secretary of the Interior

provides the certification required under section 207(g)(4) of such

Act, the owner of an interest in trust or restricted land may bring

an administrative action to challenge the application of such section

207 to the devise or descent of his or her interest or interests

in trust or restricted lands, and may seek judicial review of the

final decision of the Secretary of the Interior with respect to such

challenge.
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SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated not to exceed $8,000,000 for fiscal year 2001 and each subsequent fiscal year

to carry out the provisions of this title (and the amendments made

by this title) that are not otherwise funded under the authority

provided for in any other provision of Federal law.

SEC. 106. CONFORMING AMENDMENTS.

(a) PATENTS HELD IN TRUST.—The Act of February 8, 1887

(24 Stat. 388) is amended—

(1) by repealing sections 1, 2, and 3 (25 U.S.C. 331, 332,

and 333); and

(2) in the second proviso of section 5 (25 U.S.C. 348)—

(A) by striking ‘‘and partition’’; and

(B) by striking ‘‘except’’ and inserting ‘‘except as provided by the Indian Land Consolidation Act or a tribal

probate code approved under such Act and except’’.

(b) ASCERTAINMENT OF HEIRS AND DISPOSAL OF ALLOTMENTS.—

The Act of June 25, 1910 (36 Stat. 855) is amended—

(1) in the first sentence of section 1 (25 U.S.C. 372), by

striking ‘‘under’’ and inserting ‘‘under the Indian Land Consolidation Act or a tribal probate code approved under such Act

and pursuant to’’; and

(2) in the first sentence of section 2 (25 U.S.C. 373), by

striking ‘‘with regulations’’ and inserting ‘‘with the Indian Land

Consolidation Act or a tribal probate code approved under

such Act and regulations’’.

(c) TRANSFER OF LANDS.—Section 4 of the Act of June 18,

1934 (25 U.S.C. 464) is amended by striking ‘‘member or:’’ and

inserting ‘‘member or, except as provided by the Indian Land

Consolidation Act,’’.

TITLE II—LEASES OF NAVAJO INDIAN

ALLOTTED LANDS

SEC. 201. LEASES OF NAVAJO INDIAN ALLOTTED LANDS.

(a) DEFINITIONS.—In this section:

(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning

given the term in section 4(e) of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 450b(e)).

(2) INDIVIDUALLY OWNED NAVAJO INDIAN ALLOTTED LAND.— The term ‘‘individually owned Navajo Indian allotted land’’

means Navajo Indian allotted land that is owned in whole

or in part by 1 or more individuals.

(3) NAVAJO INDIAN.—The term ‘‘Navajo Indian’’ means a

member of the Navajo Nation.

(4) NAVAJO INDIAN ALLOTTED LAND.—The term ‘‘Navajo

Indian allotted land’’ means a single parcel of land that—

(A) is located within the jurisdiction of the Navajo

Nation; and

(B)(i) is held in trust or restricted status by the United

States for the benefit of Navajo Indians or members of

another Indian tribe; and

(ii) was—

(I) allotted to a Navajo Indian; or
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(II) taken into trust or restricted status by the

United States for a Navajo Indian.

(5) OWNER.—The term ‘‘owner’’ means, in the case of any

interest in land described in paragraph (4)(B)(i), the beneficial

owner of the interest.

(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.

(b) APPROVAL BY THE SECRETARY.—

(1) IN GENERAL.—The Secretary may approve an oil or

gas lease or agreement that affects individually owned Navajo

Indian allotted land, if—

(A) the owners of not less than the applicable percentage (determined under paragraph (2)) of the undivided

interest in the Navajo Indian allotted land that is covered

by the oil or gas lease or agreement consent in writing

to the lease or agreement; and

(B) the Secretary determines that approving the lease

or agreement is in the best interest of the owners of the

undivided interest in the Navajo Indian allotted land.

(2) PERCENTAGE INTEREST.—The applicable percentage

referred to in paragraph (1)(A) shall be determined as follows:

(A) If there are 10 or fewer owners of the undivided

interest in the Navajo Indian allotted land, the applicable

percentage shall be 100 percent.

(B) If there are more than 10 such owners, but fewer

than 51 such owners, the applicable percentage shall be

80 percent.

(C) If there are 51 or more such owners, the applicable

percentage shall be 60 percent.

(3) AUTHORITY OF SECRETARY TO SIGN LEASE OR AGREEMENT

ON BEHALF OF CERTAIN OWNERS.—The Secretary may give written consent to an oil or gas lease or agreement under paragraph

(1) on behalf of an individual Indian owner if—

(A) the owner is deceased and the heirs to, or devisees

of, the interest of the deceased owner have not been determined; or

(B) the heirs or devisees referred to in subparagraph

(A) have been determined, but 1 or more of the heirs

or devisees cannot be located.

(4) EFFECT OF APPROVAL.—

(A) APPLICATION TO ALL PARTIES.—

(i) IN GENERAL.—Subject to subparagraph (B), an

oil or gas lease or agreement approved by the Secretary

under paragraph (1) shall be binding on the parties

described in clause (ii), to the same extent as if all

of the owners of the undivided interest in Navajo

Indian allotted land covered under the lease or agreement consented to the lease or agreement.

(ii) DESCRIPTION OF PARTIES.—The parties referred

to in clause (i) are—

(I) the owners of the undivided interest in

the Navajo Indian allotted land covered under the

lease or agreement referred to in clause (i); and

(II) all other parties to the lease or agreement.

(B) EFFECT ON INDIAN TRIBE.—If—
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(i) an Indian tribe is the owner of a portion of

an undivided interest in Navajo Indian allotted land;

and

(ii) an oil or gas lease or agreement under paragraph (1) is otherwise applicable to such portion by

reason of this subsection even though the Indian tribe

did not consent to the lease or agreement,

then the lease or agreement shall apply to such portion

of the undivided interest (including entitlement of the

Indian tribe to payment under the lease or agreement),

but the Indian tribe shall not be treated as a party to

the lease or agreement and nothing in this subsection

(or in the lease or agreement) shall be construed to affect

the sovereignty of the Indian tribe.

(5) DISTRIBUTION OF PROCEEDS.—

(A) IN GENERAL.—The proceeds derived from an oil

or gas lease or agreement that is approved by the Secretary

under paragraph (1) shall be distributed to all owners

of the undivided interest in the Navajo Indian allotted

land covered under the lease or agreement.

(B) DETERMINATION OF AMOUNTS DISTRIBUTED.—The

amount of the proceeds under subparagraph (A) distributed

to each owner under that subparagraph shall be determined

in accordance with the portion of the undivided interest

in the Navajo Indian allotted land covered under the lease

or agreement that is owned by that owner.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.