II 

108TH CONGRESS 

2D SESSION S. 2225

To authorize an exchange of mineral rights by the Secretary of the Interior 

in the State of Montana. 

IN THE SENATE OF THE UNITED STATES 

MARCH 23, 2004

Mr. BURNS (for himself, Mr. BAUCUS, and Mr. CAMPBELL) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL

To authorize an exchange of mineral rights by the Secretary 

of the Interior in the State of Montana.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Montana Mineral Ex5 change Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ANCILLARY FUND.—The term ‘‘Ancillary 

9 Fund’’ means the Northern Cheyenne Ancillary 

10 Fund established by section 5(a)(1). 
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1 (2) ANNUAL 6 PERCENT AMOUNT.—The term 

2 ‘‘annual 6 percent amount’’ means the amount from 

3 the Permanent Fund that becomes available each 

4 Permanent Fund fiscal year for expenditure or obli5 gation, as provided in section 5(d). 

6 (3) ANNUAL TONNAGE.—The term ‘‘annual 

7 tonnage’’ means the total tonnage of merchantable 

8 coal mined during a fiscal year from any mine estab9 lished after the date of enactment this Act in an ap10 proved mine plan area that includes land all or a 

11 portion of which is located not more than 25 miles 

12 from the boundary of the Northern Cheyenne Res13 ervation, as the boundary exists on the date of en14 actment of this Act. 

15 (4) BASE SUM.—The term ‘‘base sum’’ means 

16 the amount equal to the annual tonnage multiplied 

17 by 50 cents per ton. 

18 (5) CHEYENNE TRACTS.—The term ‘‘Cheyenne 

19 tracts’’ means the tracts of land located in the east20 ern portion of the State within the boundaries of the 

21 Northern Cheyenne Reservation, totaling approxi22 mately 5,000 acres, as generally depicted on the 

23 map entitled ‘‘Cheyenne Coal Land Exchange’’ and 

24 dated January 9, 2004, and that have the following 

25 legal descriptions: 
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1 (A) T. 2 S., R. 44 E., sec. 17. 

2 (B) T. 2 S., R. 44 E., sec. 19. 

3 (C) T. 3 S., R. 44 E., sec. 5. 

4 (D) T. 3 S., R. 44 E., sec. 7. 

5 (E) T. 3 S., R. 44 E., sec. 9. 

6 (F) T. 3 S., R. 44 E., sec. 17. 

7 (G) T. 3 S., R. 44 E., sec. 19. 

(H) T. 3 S., R. 44 E., sec. 21, N1⁄2SW1 8 ⁄4, 

and S1⁄2SE1 9 ⁄4. 

10 (6) EXCHANGE.—The term ‘‘exchange’’ means 

11 the exchange of mineral rights described in section 

12 3(a). 

13 (7) FEDERAL TRACTS.—The term ‘‘Federal 

14 tracts’’ the unleased tracts of land located in the 

15 State of Montana, consisting of approximately 5,000 

16 acres, as generally depicted on the map entitled 

17 ‘‘Cheyenne Coal Land Exchange’’ and dated Janu18 ary 9, 2004, and that have the following legal de19 scription: 

(A) T. 11 N., R. 49 E., sec. 8, S1 20 ⁄2. 

21 (B) T. 11 N., R. 49 E., sec. 21. 

22 (C) T. 11 N., R. 49 E., sec. 27, 

W1⁄2NW1 23 ⁄4. 

(D) T. 11 N., R. 49 E., sec. 28, NE1 24 ⁄4, 

N1⁄2SE1⁄4, and N1⁄2NW1 25 ⁄4. 
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1 (E) T. 9 S., R. 40 E., sec. 3, 

SW1⁄4SE1⁄4SE1⁄4, and SW1⁄4SE1 2 ⁄4. 

(F) T. 9 S., R. 40 E., sec. 4, SW1⁄4NW1 3 ⁄4. 

(G) T. 9 S., R. 40 E., sec. 5, S1⁄2NE1 4 ⁄4

and SE1 5 ⁄4. 

6 (H) T. 9 S., R. 40 E., sec. 8, 

NW1⁄4NE1⁄4NE1⁄4 and NW1⁄4NE1 7 ⁄4. 

8 (I) T. 9 S., R. 38 E., sec. 24, lot 16 and 

SE1⁄4SE1 9 ⁄4. 

10 (J) T. 9 S., R. 38 E., sec. 25, lots 9, 12, 

13, 16, and E1⁄2E1 11 ⁄2. 

(K) T. 9 S., R. 38 E., sec. 36, E1⁄2SE1 12 ⁄4. 

13 (L) T. 9 S., R. 39 E., sec. 20, lots 1, 2, 

3, and 4, E1⁄2NW1⁄4, E1⁄2NE1⁄4, SW1⁄4NE1 14 ⁄4, 

E1⁄2SW1⁄4, and SE1 15 ⁄4. 

16 (M) T. 9 S., R. 39 E., sec. 21, 

SW1⁄4SW1 17 ⁄4. 

(N) T. 9 S., R. 39 E., sec. 28, W1⁄2NW1 18 ⁄4, 

SW1⁄4, W1⁄2SE1⁄4, and NE1⁄4SE1 19 ⁄4. 

20 (O) T. 9 S., R. 39 E., sec. 29. 

21 (P) T. 9 S., R. 39 E., sec. 32, lots 1, 3, 

4, 5, 6, and 7, NE1⁄4NW1⁄4, N1⁄2NE1 22 ⁄4, 

SE1⁄4NE1⁄4, NE1⁄4SW1⁄4, and N1⁄2SE1 23 ⁄4.
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1 (Q) T. 9 S., R. 39 E., sec. 33, lots 1, 2, 

3, and 4, NW1⁄4, S1⁄2NE1⁄4, N1⁄2SW1 2 ⁄4, and 

N1⁄2SE1 3 ⁄4. 

4 (R) T. 9 S., R. 39 E., sec. 34, lots 1, 2, 

3, and 4, N1⁄2SW1⁄4, and N1⁄2SE1 5 ⁄4. 

6 (8) GREAT NORTHERN PROPERTIES.—The term 

7 ‘‘Great Northern Properties’’ means Great Northern 

8 Properties Limited Partnership, a Delaware limited 

9 partnership, and any successor to the ownership in10 terest of Great Northern Properties in the minerals 

11 underlying the Cheyenne tracts. 

12 (9) IMMEDIATELY PRECEDING PERMANENT

13 FUND YEARS.—The term ‘‘immediately preceding 

14 Permanent Fund years’’ means the 3 Permanent 

15 Fund fiscal years immediately preceding the current 

16 Permanent Fund fiscal year, except that— 

17 (A) for the second Permanent Fund fiscal 

18 year, the term means the first Permanent Fund 

19 fiscal year; and 

20 (B) for the third Permanent Fund fiscal 

21 year, the term means the first and second Per22 manent Fund fiscal years. 

23 (10) INCOME.—The term ‘‘income’’ means the 

24 total net return from the investment of the Perma25 nent Fund or Ancillary Fund, consisting of— 
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1 (A) all interest, dividends, realized and un2 realized gains and losses and other earnings, 

3 plus all income resulting from the investment of 

4 the income; less 

5 (B) any costs and fees for private invest6 ment management, investment consulting, and 

7 custodianship and any other reasonably nec8 essary transactional services or matters. 

9 (11) PERMANENT FUND.—The term ‘‘Perma10 nent Fund’’ means the Northern Cheyenne Perma11 nent Fund established by section 5(a)(2). 

12 (12) PERMANENT FUND FISCAL YEAR.—The 

13 term ‘‘Permanent Fund fiscal year’’ means a fiscal 

14 year of the Permanent Fund as defined in the Per15 manent Fund plan. 

16 (13) PERMANENT FUND PLAN.—The term 

17 ‘‘Permanent Fund plan’’ means the plan established 

18 under section 5(g). 

19 (14) SECRETARY.—The term ‘‘Secretary’’ 

20 means the Secretary of the Interior. 

21 (15) TRAILING AVERAGE PERMANENT FUND

22 VALUE.—The term ‘‘trailing average Permanent 

23 Fund value’’ means the average quarterly market 

24 value of the Permanent Fund during the imme25 diately preceding Permanent Fund years. 
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1 (16) TRIBE.—The term ‘‘Tribe’’ means the 

2 Northern Cheyenne Tribe. 

3 SEC. 3. MINERAL RIGHTS EXCHANGE. 

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of Federal law, concurrent with the conveyance from 

6 Great Northern Properties to the United States of all of 

7 its mineral interests underlying the Cheyenne tract, the 

8 Secretary shall convey to Great Northern Properties all 

9 mineral interests in the Federal tracts. 

10 (b) TRUST.—On conveyance of the mineral interests 

11 underlying the Cheyenne tracts to the United States, the 

12 Secretary shall take the mineral interests into trust for 

13 the benefit of the Tribe. 

14 SEC. 4. TERMS AND CONDITIONS OF EXCHANGE. 

15 (a) WAIVER OF LEGAL CLAIMS.—In return for the 

16 exchange, the Tribe shall waive any and all claims relating 

17 to the failure of the United States to previously acquire 

18 in trust for the Tribe as part of the Northern Cheyenne 

19 Reservation the private mineral interests underlying the 

20 Cheyenne tracts. 

21 (b) CONDITION.—As a condition precedent of the ex22 change, the Tribe and Great Northern Properties shall 

23 jointly notify the Secretary in writing that they have 

24 agreed on a formula for the sharing of revenue from coal 

25 produced from any portion of the Federal tracts. 
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1 (c) COMPLETION OF EXCHANGE.—Notwithstanding 

2 any other provision of law, after satisfaction of the condi3 tion precedent specified in subsection (b), the exchange 

4 shall be completed in a single transaction not later than 

5 90 days after the date on which the Secretary receives no6 tice under subsection (b). 

7 (d) RESCISSION OF EXCHANGE.—If a portion of the 

8 completed exchange is invalidated by a court of competent 

9 jurisdiction and the judgment of the court is no longer 

10 subject to appellate review, the Secretary or Great North11 ern Properties may rescind the entire exchange. 

12 SEC. 5. NORTHERN CHEYENNE PERMANENT FUND AND 

13 NORTHERN CHEYENNE ANCILLARY FUND. 

14 (a) ESTABLISHMENT.—There are established in the 

15 Treasury of the United States— 

16 (1) a fund to be known as the ‘‘Northern Chey17 enne Permanent Fund’’; and 

18 (2) a fund to be known as the ‘‘Northern Chey19 enne Ancillary Fund’’. 

20 (b) AUTHORIZATION OF APPROPRIATIONS TO

21 FUNDS.—There are authorized to be appropriated— 

22 (1) to the Permanent Fund $10,000,000 for 

23 each of fiscal years 2005, 2006, and 2007; and 

24 (2) to the Ancillary Fund $10,000,000 for each 

25 of fiscal years 2008, 2009, 2010, and 2011. 
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1 (c) TRANSFERS FROM ANCILLARY FUND TO PERMA2 NENT FUND.— 

3 (1) IN GENERAL.—Not later than 120 days 

4 after the end of fiscal year 2008 and each subse5 quent fiscal year in which amounts in the Ancillary 

6 Fund are available for transfer to the Permanent 

7 Fund, the Secretary of the Treasury shall transfer 

8 from the Ancillary Fund to the Permanent Fund an 

9 amount, as determined by the Secretary, equal to— 

10 (A) the base sum; plus or minus 

11 (B) any accrued realized and undisbursed 

12 income or any accrued realized loss in the An13 cillary Fund as of the end of the fiscal year, in 

14 an amount not to exceed the base sum. 

15 (2) WRITTEN STATEMENT.—As soon as prac16 ticable after a transfer under paragraph (1), the 

17 Secretary of the Treasury shall provide to the 

18 Tribe— 

19 (A) a written statement describing— 

20 (i) the amount transferred under 

21 paragraph (1); and 

22 (ii) how the amount was calculated; 

23 and 

24 (B) copies of any written materials used to 

25 determine the amount.
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1 (d) EXPENDITURES FROM PERMANENT FUND.— 

2 (1) IN GENERAL.—Beginning with the second 

3 Permanent Fund fiscal year and during each subse4 quent Permanent Fund fiscal year, the Tribe may 

5 expend or obligate not more than 6 percent of the 

6 trailing average Permanent Fund value (plus, during 

7 each Permanent Fund fiscal year subsequent to the 

8 second Permanent Fund fiscal year, the amount of 

9 any unexpended and unobligated portion of the an10 nual 6 percent amount from any of the immediately 

11 preceding Permanent Fund years, not including any 

12 income that may accrue on that portion) only for the 

13 following purposes: 

14 (A) Education. 

15 (B) Law enforcement. 

16 (C) Any other tribal governmental services 

17 or facilities. 

18 (D) Economic development. 

19 (E) Acquisition of land, water rights, or 

20 related property interests. 

21 (F) Payment of costs and fees incurred in 

22 connection with the investment of the Perma23 nent Fund for private investment management, 

24 investment consulting, custodianship, and any 
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1 other reasonably necessary transactional serv2 ices or matters. 

3 (2) NO OTHER EXPENDITURES FROM PERMA4 NENT FUND.—No amounts from the Permanent 

5 Fund may be expended or obligated— 

6 (A) for the purpose of making per capita 

7 payments to members of the Tribe or litigating 

8 against any aspect of any proposed or existing 

9 off-Reservation coal mining, oil or gas develop10 ment, or electric power generation project; or 

11 (B) for any other purpose other than a 

12 purpose authorized in paragraph (1). 

13 (e) COMPLIANCE WITH PERMANENT FUND PLAN.—

14 The Tribe shall invest, manage, disburse, and expend the 

15 amounts in the Permanent Fund for the purposes de16 scribed in subsection (d)(1) in accordance with the Perma17 nent Fund plan. 

18 (f) INVESTMENT THROUGH SECRETARY.— 

19 (1) IN GENERAL.—As requested by the Tribe, 

20 the Secretary shall invest any portions of the Perma21 nent Fund and the Ancillary Fund in interest-bear22 ing deposits and securities in accordance with— 

23 (A) the Act of April 1, 1880 (21 Stat. 70, 

24 chapter 41; 25 U.S.C. 161); and 
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1 (B) the Act of June 24, 1938 (25 U.S.C. 

2 162a). 

3 (2) INCOME.— 

4 (A) PERMANENT FUND.—All income 

5 earned on investments in the Permanent Fund 

6 shall be deposited in the Permanent Fund. 

7 (B) ANCILLARY FUND.—All income earned 

8 on investments in the Ancillary Fund shall be 

9 deposited in the Ancillary Fund. 

10 (g) DEVELOPMENT OF PERMANENT FUND PLAN.— 

11 (1) IN GENERAL.—The Tribe shall— 

12 (A) develop a Permanent Fund plan, in 

13 consultation with the Secretary, for the invest14 ment, management, administration, and ex15 penditure of the amounts in the Permanent 

16 Fund; and 

17 (B) submit the plan to the Secretary. 

18 (2) CONTENTS.—The Permanent Fund plan— 

19 (A) shall set forth the manner in which 

20 amounts in the Permanent Fund shall be man21 aged, administered, and expended for the pur22 poses described in subsection (d)(1); and 

23 (B) may provide for investment manage24 ment of all or any portion of the Permanent 
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1 Fund by qualified private professional invest2 ment managers. 

3 (3) REVISION.—The Permanent Fund plan may 

4 be revised and updated by the Tribe, in consultation 

5 with the Secretary. 

6 (h) FEDERAL DISBURSEMENTS.— 

7 (1) IN GENERAL.—Notwithstanding any other 

8 provision of Federal law, while the Permanent Fund 

9 or any portion of the Permanent Fund is invested by 

10 the Secretary under subsection (f), on request of the 

11 Tribe, the Secretary of the Treasury and the Sec12 retary shall make available to the Tribe, amounts in 

13 the Permanent Fund to be used— 

14 (A) for any of the purposes set forth in 

15 subsection (d)(1); or 

16 (B) as may be provided in the Permanent 

17 Fund plan under subsection (g)(2)(B), to en18 able submission of all or any portion of the Per19 manent Fund to private professional investment 

20 management. 

21 (2) EXCEPTION.—No amounts shall be made 

22 available to the Tribe under paragraph (1) until the 

23 Tribe adopts the Permanent Fund plan required by 

24 subsection (g). 
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1 (i) ENFORCEMENT.—The Secretary may take any ju2 dicial or administrative action to enforce the provisions of 

3 the Permanent Fund plan that is necessary to ensure that 

4 any amount withdrawn from the Permanent Fund is used 

5 in accordance with this Act. 

6 (j) LIABILITY.—If the Tribe exercises the right to 

7 withdraw an amount from the Permanent Fund, neither 

8 the Secretary nor the Secretary of the Treasury shall re9 tain any liability for the expenditure or investment of the 

10 amount withdrawn. 

11 SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 

12 In addition to the amounts authorized to be appro13 priated to the Permanent Fund and Ancillary Fund under 

14 section 5(b), there are authorized to be appropriated such 

15 sums as are necessary to carry out this Act.

Æ