OPA

Assistant Secretary of the Interior Roger Ernst today announced the adoption of regulations governing the preparation of a roll for distribution of the Oklahoma Quapaw Indian Judgment Fund.

The roll is being prepared under the provisions of a recently enacted congressional law in order to identify the persons entitled to share in a judgment awarded to the Tribe in 1954 by the Indian Claims Commission. The amount of judgment money now on deposit in the U. S. Treasury to the credit of the Tribe is nearly $1,000,000.

Under the congressional law and the regulations, applications for inclusion on the judgment fund roll must be submitted to the Area Director, Bureau of Indian Affairs, Muskogee, Oklahoma, on or before January 17, 1960.

Persons eligible for enrollment include those of Quapaw blood whose names appear on the tribal membership roll of January 4, 1890 (on the basis of blood membership rather than adoption) and descendants of such persons living on July 17, 1959. The burden of proof in establishing eligibility is placed by law upon the applicant.

Provision is made in the regulations for review of the applications by the Quapaw Tribal Business Committee in the period of three months after January 17, 1960, and for appeals to the Secretary of the Interior from decisions made by the Indian Bureau’s Area Director. Decisions of the Secretary are final.

Application forms may be obtained from the Area Director at Muskogee, the Bureau’s Quapaw Area Field Office at Miami, Oklahoma, or members of the Quapaw Tri-Business Committee.

The regulations will be published in the Federal Register in the near future.

The Department of the Interior today recommended the enactment of legislation that would transfer about 10,500 acres of federally owned land to the Rosebud Sioux Indian Tribe of South Dakota.

The lands to be transferred are located on the Rosebud Reservation and were acquired by the Federal Government between 1933 and 1950 for use in farming and ranching operations of the Rosebud Indian Boarding School. They are no longer needed for this purpose.

The original cost of the lands was approximately $45,000. Their present value is about $223,000. Also involved in the transfer would be improvements valued at around $2,000. These include a barn, bunkhouse, small house, granary, wellhouse and tower, garage and addition, and wellhouse and mill.

In a report on H. R. 2460, a bill providing for the transfer, the Department called attention to a $500,000 loan made to the Rosebud Sioux Tribe by the Bureau of Indian Affairs last fall for land acquisition purposes. Donation of the lands involved in the bill, the report said, “will supplement the Tribe's land acquisition program.”

Except for a few scattered tracts, the lands are in a compact block and can be readily utilized by the Tribe. In one block of about 280 acres, the Tribe already owns a 15/126 interest and the Federal Government a 111/126 interest.

The Department of the Interior today announced its endorsement of legislation that would permit the leasing of Indian lands on the Palm Springs Reservation in California and the three Seminole Reservations in Florida for periods up to a maximum of 99 years.

Under present law the maximum term permitted for such leases is 25 years with an option to renew for an additional 25 years.

In a report on H. R. 8712, Assistant Secretary Roger Ernst pointed out that the bill is needed to permit leases with a long term enough so that the lessee can obtain financing for the type of real estate development contemplated at the Palm Springs and Seminole Reservations. In both cases intensive development for residential or commercial use is being considered.

"Difficult problems arise under present laws limiting leases to what is the equivalent of a 50-year period,” Mr. Ernst explained. "By the time financing is obtained by the lessee, the lease has less than 50 years to run. The Federal Reserve Act and the National Housing Act require a minimum of 50-year leases before approving loans secured by lease holdings."

"A longer term will permit the financing of maximum development of the tribal lands," he explained. “This does not mean that all leases will be for the maximum term allowed by law. The Department will not approve leases for terms longer than needed to get the best return for the Indian owners."

The Department of the Interior today recommended enactment of legislation for construction of the Navajo Indian Irrigation Project and the initial stage of the San Juan-Chama Project.

In a report to Congress, the Department supported R.R. 2352 and R.R. 2494, identical bills authorizing construction and maintenance of the two projects as participating projects of the Colorado River Storage Project.

The proposed plan of development for the Navajo Irrigation Project contemplates construction of facilities to provide a water supply for irrigation of lands to be developed solely for Indian use. Construction cost of the project is estimated at $135,000,000 at January 1959 prices. A net area of 110,630 acres would be irrigated under the project.

The proposed plan for the San Juan-Chama Project is designed to improve the economy of the water-deficient Rio Grande and Canadian River basins of New Mexico by providing supplemental water. As recommended by New Mexico, 110,000 acre-feet would be diverted annually from the San Juan River. Construction cost of the project is estimated at about $86,000,000 at January 1959 prices.

In the Department’s report, Under Secretary Elmer F, Bennett said authoriza­tion of the irrigation development such as the proposed Navajo Indian Irrigation Project would implement recognition of the Nation's responsibility to help alleviate the severe economic distress among the Navajo people by providing them an opportunity to maintain a respectable standard of living.

Secretary Bennett said a development such as that embraced in the initial stage of the proposed San Juan-Chama Project might help materially to meet the pressing need for additional supplies of water in the Rio Grande basin where the uses of water have been developed to the point where they far exceed available supplies.

The Bureau of the Budget has advised that it has no objection to the submission of the Department's report.

The text of the Department's report is attached.

Juan River basin. This would be accompanied by associated water requirements for municipal, domestic, and miscellaneous purposes in the adjacent areas. Prospective municipal and industrial water users have already expressed interest in receiving water from the proposed Navajo Canal and have approached the Department in that regard. Section 4 of the bills would authorize the pro­vision of additional capacity for such purposes over and above the diversion requirements for irrigation on the Navajo Indian irrigation project.

Water for irrigation of the lands proposed to be included in the Navajo Indian irrigation project would be diverted from Navajo Reservoir which is now under construction as a storage unit of' the Colorado River storage project. A main gravity canal would extend from Navajo Dam to Kutz Canyon. There the water would be dropped through a power plant to develop electrical energy for pumping water to lands in the Newcomb and Bennett Peak areas for the project. “The main canal would extend an additional 77 miles beyond the power plant to serve project lands.

A net area of 110,630 acres of irrigable land has been proposed for development. The area would include off-reservation lands to be acquired in the South San Juan Division and Navajo Indian Reservation lands in the Shiprock Division. Section 3 of the bills would provide authority for the acquisition and addition of the off-reservation lands to the proposed project. The projects productive area, which would exclude farm steads and other nonproduc­tive areas within farm units, would comprise (a) 8,918 acres served by gravity below the main canal in the South San Juan Division and 70,359 acres in the Shiprock Division, and (b) 25,882 acres served from the pump canals in the Shiprock Division, or a total of about 105,100 acres. San Juan River would be required for that purpose. This would result in an average annual stream depletion of about 252,000 acre-feet, exclusive of reservoir losses.

The estimated construction cost of' the proposed Navajo Indian irrigation project is about $135,000,000 at January 1959 prices. Operation, maintenance, and replacement costs are estimated to average about $481,000 annually at January 1959 prices for both 50-year and 100-year periods of analysis. The benefit cost ratio for the project would be 0.64 to 1 on the basis of direct irrigation benefits only, and 1.44 to 1 on the basis of total irrigation benefits. The appraisal of annual economic costs includes the $2.00 per acre foot depletion charge of the storage project assigned to all participation projects for all benefit-costs ratio purposes.

As provided by sections 4(d) and 6 of the Colorado River Storage Project Act of April 11, 1956 (70 Stat. 105), authorizing the Colorado River storage project and participating project. In the event that the Navajo participating projects, in the event that the Navajo participating project is authorized, payment of costs allocated to irrigation of Indian-owned, tribal or restricted lands within the capability of the land to repay is subject to the Act of July 1, 1932 (47 Stat. 564); the costs beyond the capability of such lands to repay are to be determined and, in recognition of the fact that assistance to the Navajo Indians is the responsibility of the entire Nation, shall be non-reimbursable.

The proposed plan of development for the San Juan-Chama project is designed to improve stabilize the economy of the water deficient Rio Grande and Canadian River basins of New Mexico by providing supplemental water to meet rapidly increasing needs. This would be accomplished by diverting water from the upper tributaries of the San Juan River. The water would be used for supplemental irrigation, for replacement of watershed depletions in the Rio Grande basin, and for additional supply for municipal, domestic, and industrial purposes. Recreation and conservation and development of fish and wildlife would also be purposes of the project. On the basis of January 1959 prices, the estimated construction is about $149,000,000. The evaluated total annual benefits for such a development would exceed the estimated annual costs in a ratio of about 1.7 to 1.

The proposed plan for initial stage development for the San Juan-Chama project, as recommended by the State of New Mexico, contemplates an average annual diversion of about 110,000 acre feet from the San Juan River for utilization in the Rio Grande in New Mexico. The imported waters would be used for an additional municipal and industrial water supply (57,300 acre-feet) for the city of Albuquerque; a supplemental irrigation water supply (30,100 acre-feet) to about 39,300 acres of land in the Cerro, Taos, Llano, and Pojoaque tributary irrigation units in the Rio Grande basin in New Mexico; and supplemental water (22,600 acre-feet) for irrigation of about 81,600 acres of irrigable land in the existing middle Rio Grande conservancy District. Recreation and conservation and development of fish and wildlife would also be purposes of the initial stage of development.

The proposed plan of development for the initial stages would involve three major elements, namely, diversion facilities (diversion dams and conduits), regulation facilities (Heron No. 4) Dam and Reservoir, and enlargement of outlet works of the existing (EL vado Dam), and water use facilities (principally for the tributary irrigation units). Minimum basic recreation facilities would also be provided at the five project reservoirs.

The estimated construction cost of the project features of the proposed initial stage, on the basis of January 1959 prices, is about $86,000,000, which includes about $400,000 for minimum basic recreation facilities. Project operation, maintenance, and replacement costs are estimated at about $346,000 annually for 50-year period and about $378,000 annually for a 100 year period. Of the estimated project construction costs, reimbursable allocations of about $29,200,000 have been made tentatively to municipal and industrial water supply, $53,400,000 to irrigation, and $3,000,000 to future uses. The recreation costs would be no reimbursable. The proposed initial stage development would have engineering feasibility and would be economically justified in that the evaluated total benefits would exceed the estimated annual costs in a ratio of 1.26 to 1 for a 100-year period of analysis. If direct benefits only are considered in a 50-year period of' analysis, that ratio would be about o.81 to 1.

Costs allocated to municipal and industrial water supply, including interest during construction, would be repaid over a 50-year period with interest on the unamortized balance. The total to be paid by the municipal and industrial water users would be about $58,600,000. The cost of raw municipal and industrial water would be about 7.7 cents per 1,000 gallons, or about $25 per acre-foot.

This estimated municipal and industrial water rate would apply to water developed by initial stage construction. Repayment contract terms and water rates under subsequent development would be subject to re-examination as plans develop and additional quantities of municipal and industrial water would be contracted. Where necessary, in the adequate financing of any subsequent development, water rates and repayment provisions could be designed to reflect any significant change in municipal and industrial use, operation and main­tenance costs associated therewith and other relevant considerations.

Irrigation water users probably would repay about $8,000,000 of the allocation to irrigation. Repay1nent contracts would be negotiated and entered into with organizations of the type provided in section 4 of the Colorado River Storage Project Act or April 11, 1956 ( 70 Stat. 105), for contracting on the participating projects authorized by section 1 of that Act. Tile costs allocated to irrigation in excess of the irrigator’s ability to repay would be paid from New Mexico’s appointment of the Upper Colorado River Basin Fund revenues as provided in the act. Costs allocated to future uses, which would involve the provision of excess capacity in the initial stage to permit later project expansion would also be an obligation against New Mexico’s share of the Basin fund revenues, to be paid from that appointment if not otherwise collected as a result of subsequent allocations to the water users.

Authorization of an irrigation development such as the proposed .Navajo Indian irrigation project would implement the recognition given in the Act of April 11, 1956, of the Nation's responsibility to help alleviate the severe economic distress among the Navajo people by providing them an opportunity to earn a respectable standard of living. It would enable an estimated 1,400 families to establish homes on irrigated farms. The proposed project has the support of the Navajo Indian tribe and it is our understanding that an on-the-farm training program, financed with Tribal funds, has been undertaken already to prepare members of the Tribe for irrigation farming.

A development such as that which is embraced in the initial stage of the proposed San Juan-Chama project might help materially to meet the pressing need for additional supplies of water in the Rio Grande basin where the uses of water have been developed to the point where they far exceed available supplies. This need of the Rio Grande basin vitally affects the welfare of more than half of the population of New Mexico and, if it is not satisfied in the near future, threatens to check the economic development of the State Besides the requirement for irrigation, more water is needed to meet the domestic requirements of a growing urban population and of industry, particularly in the Albuquerque area.

The Bureau of the Budget has advised that there would be no objection to the submission of this report to your Committee.

Hon. Wayne N. Aspinall, Chairman

Committee on Interior and Insular Affairs

House of Representatives

Washington 25, D, C.

Enclosure

EXECUTIVE OFFICE OF THE PRESIDENT

BUREAU OF THE BUDGET

WASHINGTON 25, D. C.

My dear Mr. Secretary:

This is in reply to your letter of July 3, 1958, transmitting your coordinated report on the San Juan-Chama project in New Mexico and Colorado and the Navajo Indian irrigation project in New Mexico, both of which are proposed for authorization as units of the authorized Colorado.

River store project. You request advice as to the relationship of the two projects to the program of the President.

The initial stage of the San Juan - Chama development, recommended for authorization in your report, would provide for a maximum annual diversion of 110,000 acre-feet of water from the Upper Colorado River basin to the Rio Grande basin to supply supplemental irrigation water for about 121,000 acres and additional municipal and industrial water for the Albuquerque metropolitan area. The principal features of the initial stage include three diversion dams, about 29 miles of conduit, and one storage dam and reservoir. The total estimated cost is $86,000,000 based on January 1958 prices, tentatively allocated as follows:

All the costs allocated to municipal and industrial water supply would be repaid with interest within 50 years. About $8 million of the costs allocated to irrigation would be repaid by irrigation water users over a 50 year period and the balance would be repaid from New Mexico’s shore of surplus power revenues of the Colorado River storage project. The allocation to future use would also repaid from these power revenues if it is not otherwise collected from water users. The benefit cost ratio for the project based on a 50 year period of analysis, is estimated at 1.03 using total benefits, and 0.81 using direct benefits only.

We note that about 57,000 acre-feet of water--over half of the total annual diversion- would be allocated to municipal and industrial water supply. In view of the rapid growth of population and the increasing emphasis on industrial development in the Rio Grande basin of New Mexico, we believe this feature of the project would make an important contribution to the future development of the region.

­ Information in the report indicates that the Cerro, Taos, Llano, and Pojoaque tributary irrigation units are suffering increasing economic distress as the result of increasing population pressure erratic water supplies, deterioration of existing irrigation works, and subdivision of ownership among heirs resulting in uneconomic farm units. Although the economic justification for undertaking these works at this time appears to be somewhat questionable their inclusion in the overall recommended plan may be warranted because of the anticipated beneficial effects in sustaining the economies of these existing agricultural communities. We would recommend, however, that their inclusion on this basis be contingent upon the development of a joint Federal-State program to provide for the consolidation of farm developments into units large enough to provide reasonable family incomes.

We note that several of the concerned States have not furnished views on the project. We also understand that Colorado and New Mexico interests have been involved in negotiations aver differences with respect to the proposed transfer of Colorado River basin waters originating in Colorado for use outside the basin in New Mexico. We have been advised, however, that Colorado and New Mexico have recently reached agreement on the proposed transfer of waters.

The proposed Navajo Indian irrigation project would require the annual use of about 280,000 acre-feet of water of the San Juan River allocated to New Mexico under Colorado River compacts to irrigate about 110,000 acres within and adjacent to the Navajo Indian Reservation. These lands would be solely for Indian use. The principal features of the project include a main carnal over 150 miles in length, pumping plants, a power plant to provide project pumping energy, and associated works. The total cost is based on January 1958 prices, is estimated at $135,330,300 tentatively allocated entirely to irrigation, The benefit cost, ratio on the basis of a 50 year period of· analysis is estimated at 1.3 using total benefits and 0.52 using direct benefits only.

We believe this proposal raises a number of important questions of public policy with respect to Federal water resources and Indian assistance programs.

In a dry area like New Mexico, availability of water is essential to continued economic growth. On the basis of present trends, demands for water for industrial and municipal use can be expected to increase substantially in future years notwithstanding this fact, this project would result in committing to agricultural uses a major part of the last source of unappropriated water in the State of New Mexico, the water of the San Juan River allocated to the State under Colorado River compacts. We recognize, however, that the project is primarily intended as an Indian assistance measure, and that other factors are involved in these circumstances.

The plan of development for the Navajo project indicates that eventually about 1,400 families would be operating irrigated farms. It is predicted that service industries in the project area would support 2,800 families and that, in total, sufficient employment opportunities would be provided to support 20,000 Indians. The construction period for the project, however is estimated to be 14 years. Although construction could be accelerated, this period appears desirable to allow the integration of the irrigated land into the Indian economic base. Considering the normal lag between authorization and initiation of construction., it could be 16 to 20 years before the full benefits from the project become available if it were to be authorized this year.

Current population estimates on the Navajo Reservation range from 75,000 to 100,000. In view of the recent interest which has developed in industrial utilization of the large coal deposits on the Navajo Reserva­tion, commitment of a major portion of the waters of the San Juan River to agricultural purposes could impede industrial development on the reserva­tion and the correspondingly greater employment opportunities which such development would provide. We would, therefore, question whether a federal investment of $135 million is justified for a project which would ultimately establish not more than 25 percent of these people in an agricultural enterprise of marginal economic value.

Accordingly, subject to your consideration of the above views, the Bureau of the Budget would have no objection to the submission of your proposed report to the Congress. No commitment can be made, however, as to when any estimate of appropriation would be submitted tor construction of these projects, if authorized by the Congress., since this would be governed by the Presidents budgetary objectives as determined by the then prevailing fiscal situation.

The Honorable The Secretary of the Interior.

Award of two contracts totaling $255,749 for road and bridge construction on the Cheyenne River and Lower Brule Indian Reservations in South Dakota was announced today by the Department of the Interior.

The larger contract for $205,818, involves the grading, draining, and crushed gravel surfacing and construction of one bridge, 93 feet in length, on 12.4 miles of Cheyenne River Reservation Route 8 running west from Willow Creek. This is the second section of approximately 50 miles of all-weather road proposed for construction to serve 40 Indian families, including many who have resettled from the Oahe reservoir taking area, being established in stock raising enterprises in the southeastern section of the Cheyenne River Reservation. A 12.7 mile section of this road extending south from U.S. Highway 212 to Willow Creek is presently being constructed under a previous contract. The road, when completed, will serve for school bus, mail route, and farm to market travel.

The successful bidder was Delzer Construction Company of Selby, South Dakota. Eight other bids were received ranging to $259,378.

A second contract for $49,930 provides for construction of reinforced concrete bridges over Cedar Creek, Straight Creek, and LaRoche Creek on the Lower Brule Reservation Route 10 in Lyman and Stanley Counties, South Dakota. The construction of the bridges is a part of the improvement to all-weather standards of some 43 miles of road extending west from the Lower Brule Subagency, north of Reliance, South Dakota, to a connection near the northwest corner of the Lower Brule Reservation to a Stanley County road leading to U. S. Highway 83 and on to Pierre, South Dakota. Besides benefiting farm and ranching operations, mail delivery, and education of Indian children in a large area along the south side of the Missouri River in Lyman and Stanley Counties, this road will also have recreational value. It will provide access to much of the shoreline of the impounded lake that will be created when the Big Bend Dam across the Missouri River is completed.

The contract for construction of the bridges was awarded to Burton Jensen of Sioux Falls, South Dakota. Nine bids were received ranging to a high of fi73,233.

Ten plans submitted by Indian rancherias in California for distribution of lands and other assets among the individual members under a 1958 law have now been given final approval by the Department of the Interior, Assistant Secretary Roger Ernst announced today.

In total, the plans provide for distributing 904.79 acres among 137 individual Indians.

Six of the plans have also been ratified by referendum vote among the Indians affected and are now being put into effect.

The Act of August 18, 1958, under which the distribution plans were approved, applies to 41 small tracts of Government land in California set aside for Indian use and known as rancherias. Seventy-five other Indian areas in the State are not affected. The law was enacted at the request of the Indians involved and covers a total of 7,617 acres.

Under the procedure established in conformity with the law, the plans for distributing the lands and other assets are drawn up on each rancheria by the Indians themselves and submitted .to the Bureau of Indian Affairs. After receiving tentative approval from the Bureau, they are posted in a public place on the rancheria for 30 days.

If no protests are received, the plan is given final approval by the Commissioner of Indian Affairs. If protests are received, the plan is submitted for consideration by the Secretary of the Interior. Following final approval, a referendum is held among the distributees. If the vote is favorable, immediate steps are taken to put the plan into effect.

Once the property has been transferred, the Indian beneficiaries are no longer eligible by the terms of the 1958 law for special services because of their status as Indians. Thereafter all laws of the United States and of the several States apply to them as they do to other citizens.

The distribution plan most recently given final approval by the Department was for the Lytton Rancheria in Sonoma County. It covers 50 acres to be distributed among nine individual Indians.

Following is a list of the other nine rancherias whose plans have been given final approval, together with the acreage involved and the number of Indian distributees in each case:

Sixteen other plans have been submitted by rancherias and are now in process prior to the stage of final approval.

The Department of the Interior announced today the award of a $372,551 contract for the construction of educational facilities at Rosebud, South Dakota.

The contract includes a modern, fire-resistant, eight-classroom school building with a kitchen and multipurpose room, a bus garage, four new employees’ quarters, the relocation of two existing houses, and related equipment, utilities and site work. The project will replace an existing Bureau of Indian Affairs two-classroom day school. The new school will be operated under the Todd County Public School System, and will provide for 180 additional pupils.

The successful bidder was L.R. Foy Construction Company, Inc., of Hutchinson, Kansas. Three higher bids, ranging from $375,000 to $463,000 were received.

High bonus bids totaling over $10,000,000 for oil and gas leases on Ute Indian lands in southwestern Colorado were opened by the Bureau of Indian Affairs on September 2 at Gallup, New Mexico, Assistant Secretary of the Interior Roger Ernst announced today.

On 41 tracts of Ute Mountain tribal land, comprising 92,062.96 acres, the average bonus bid per acre was $112.53 and the total of the high bids was $10,359,671.30. On one of the tracts the bid was $539.25 per acre.

Bids received on three tracts of Southern Ute tribal land, totaling 5,806.21 acres, averaged $27.44 per acre and brought in a total of $159,354.59.

One tract of individually owned Southern Ute land, comprising 640.54 acres, attracted a high bonus bid of $26,845.04 or $41.91 per acre.

The leases were offered under the terms of $1.25 per acre annual rental and a royalty of 16-2/3 percent on production.

Final action on the bonus offerings has not yet been taken by either of the tribal organizations or by the individual Indian landowners.

Reappointment of Turner Bear as Principal Chief of the Creek Indian Tribe of Oklahoma for a two-year term beginning October 5 was announced today by the Department of the Interior. He has been serving in the position for the past two years.

Under a 1906 law the President was empowered to appoint a Principal Chief periodically for each of the so-called "Five Civilized Tribes" of Oklahoma--Cherokee, Choctaw, Chickasaw, Seminole and Creek. In 1951 this appointing authority was delegated to the Secretary of the Interior.

The primary function of the Principal Chief is to represent the tribe on public occasions and in the execution of documents relating to tribal property.

Sales of timber from lands belonging to Indian tribes and individual Indians brought the owners an income of $10,937,485 in the fiscal year 1959, or 17 percent more than the amount in 1958, Acting Secretary of the Interior Elmer F. Bennett announced today.

The volume of timber cut under contract on Indian lands was 551 million board feet, an increase of 98 million board feet over the 1958 total.

Sawmills owned by three Indian tribal groups--the Menominee of Wisconsin, the Red Lake Chippewa of Minnesota, and the Navajo of Arizona, New Mexico and Utah-- converted to lumber about 40 million board feet of the total cut. Besides producing a profit for the tribal organizations, these mills also furnish employment for the resident Indians, Mr. Bennett pointed out.

Over the country as whole, there are about 6,500,000 acres of commercially valuable Indian timberland, Mr. Bennett explained. Eighty-three percent is owned by tribal groups and the balance by individual Indians. Ponderosa pine is the predominant species.

Cutting is concentrated on the mature and over mature trees which are susceptible to mortality from insect attacks, disease and old age. Their removal leaves vigorous young stands with fine growth potential.

Over the past 50 years about half of the commercially valuable Indian timber has been improved by such selective cutting under sustained yield management. Recent inventories indicate that the yearly cut can safely be increased on a substantial portion of the remaining timberlands.