or commercial enterprises but authority must exist to lease the property for sufficient terms in order to attract developers and to enable them to obtain financing for improvements. COST No additional expenditure of Federal funds will result from the enactment of S. 1609. DEPARTMENTAL REPORTS The reports of the Department of the Interior and the Bureau of the Budget recommending enactment of S. 1609 are as follows: U.S. DEPARTMENT OF THE INTERIOR, Hon. HENRY M. JACKSON, OFFICE OF THE SECRETARY, Washington, D.C., July 22, 1969. Chairman, Committee on Interior and Insular Affairs, DEAR MR. CHAIRMAN: This is in response to your request for the views of this Department on S. 1609, a bill to amend the act of August 9, 1955, to authorize longer term leases of Indian lands located outside the boundaries of Indian reservations in New Mexico. We recommend the enactment of the bill. The act of August 9, 1955 (69 Stat. 539), authorizes leases of Indian lands to be made for public, religious, educational, recreational, residential, or business purposes for terms not to exceed 25 years, with an option to renew for one additional term of not to exceed 25 years. Grazing leases are limited to 10-year terms with no option to renew any farming leases that involve the making of substantial improvements to the land are limited to 25-year terms with no option to renew. The act has been amended to permit leases for public, religious, educational, recreational, residential, or business purposes and for farming purposes which require the making of a substantial investment in the improvement of the land for the growing of specialized crops for not to exceed 99 years, including any renewal options, on the following reservations and pueblos: Agua Caliente (Palm Springs) (act of September 21, 1959 (73 Stat. 597)); Navajo (act of June 11, 1960 (74 Stat. 199)); Dania (now Hollywood) (act of October 4, 1961 (75 Stat. 804)); Swinomish (act of September 28, 1968 (82 Stat. 884)); Southern Ute (act of October 10, 1962 (76 Stat. 805)); Fort Mojave (act of November 4, 1963 (77 Stat. 301)); Cochiti, Pojoaque, Tesuque, and Zuni (act of October 12, 1968 (82 Stat. 1003)); Spokane (act of June 10, 1968 (82 Stat. 174)); Pyramid Lake (act of April 27, 1966 (80 Stat. 132)); Gila River (act of December 8, 1967 (81 Stat. 539)); San Carlos Apache (act of December 10, 1967 (81 Stat. 560)); and Hualapai (act of June 20, 1968 (82 Stat. 242)). In addition, 99-year leases may be granted on the Colorado River Reservation under the act of June 11, 1960 (74 Stat. 199), as amended by the act of September 5, 1962 (76 Stat. 428), and the act of April 30, 1964 (78 Stat. 188). S. Rept. 91-377 The act of November 2, 1966 (80 Stat. 1112), authorizes leases of Indian land on the San Xavier and Salt River Pima-Maricopa Indian Reservations to be made for public, religious, educational, recreational, residential, business, farming, or grazing purposes. Grazing leases and those farming leases that do not require the making of a substantial investment in the improvement of the land can be made for terms not to exceed 10 years. A farming lease that requires a substantial investment in improvement of the land can be made for a term of not to exceed 40 years. The term of any other lease shall not exceed 99 years. The authority granted under the 1966 act is in addition to that contained in other laws. The 99-year maximum lease authority for those 18 reservations was granted because of the need for longer term leases as the basis for financing substantial developments on the land. Without a long-term lease, construction or development loans could not be obtained by the lessees from lending institutions. Although the Navajo Reservation has had long-term lease authority since it was granted under the 1960 act, a determination has been made by the Department that this authority does not apply to scattered public domain allotments located elsewhere in New Mexico. The Navajo off-reservation allotments extend eastward in New Mexico approximately 30 miles north and south and some 50 to 70 miles from the eastern boundary of the reservation. The area includes 4,000 allotments on which business firms are reluctant to locate industrial or commercial enterprises because the present leasing authority which now permits the equivalent of a 50-year lease (25-year initial term plus an option to renew for 25 years), makes financing and amortizing the property almost impossible. Most of these allotments are within 30 miles north or south of Interstate Highway No. 40 with rail and truck transportation available at Gallup. The location of these allotments with the availability of transportation makes them suitable for the location of industrial or commercial enterprises. The reasons for the difficulties in financing development on the basis of 50-year leases have been explained to the committee in connection with each of the statutes referred to above, and are not repeated here. They were explained by Senator Montoya when he introduced S. 1609 on March 20 (see Congressional Record, vol. 115, No. 49, p. S2938). If these off-reservation Indians are to realize the maximum return for the use of their lands, they must have the flexibility to offer leases with sufficient terms to satisfy the requirements of most lending institutions and to meet the varying market situations that may arise. We believe that only if they have the authority to negotiate leases with terms of up to 99 years will this flexibility exist. If Congress grants this additional authority it will be exercised with caution. Even though for a number of years we have been authorized to approve such leases on several reservations, very few 99-year leases have in fact been approved. The Bureau of the Budget has advised that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely yours, RUSSELL E. TRAIN, Under Secretary of the Interior. S. Rept. 91-377 EXECUTIVE OFFICE OF THE PRESIDENT, Hon. HENRY M. JACKSON, BUREAU OF THE BUDGET, Washington, D.C., July 22, 1969. Chairman, Committee on Interior and Insular Affairs, U.S. Senate New Senate Office Building, Washington, D.C. DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Bureau of the Budget on S. 1609, a bill to amend the Act of August 9, 1955, to authorize longer term leases of Indian lands located outside the boundaries of Indian reservations in New Mexico. The Bureau of the Budget would have no objection to the enactment of S. 1609. Sincerely yours, WILFRED ROMMEL, Assistant Director for Legislative Reference. CHANGES IN EXISTING LAW In compliance with subsection (4) of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill (S. 285), as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): ACT OF AUGUST 9, 1955 (69 STAT. 539), AS AMENDED (25 U.S.C. 415) SEC. 1. Any restricted Indian lands, whether tribally or individually owned, may be leased by the Indian owners, with the approval of the Secretary of the Interior, for public, religious, educational, recreational, residential, or business purposes, including the development or utilization of natural resources in connection with operations under such leases, for grazing purposes, and for those farming purposes which require the making of a substantial investment in the improvement of the land for the production of specialized crops as determined by said Secretary. All leases so granted shall be for a term of not to exceed twenty-five years, except leases of land on the Agua Caliente (Palm Springs) Reservation, the Dania Reservation, the Southern Ute Reservation, the Fort Mojave Reservation, the Pyramid Lake Reservation, the Pueblo of Pojoaque, the Pueblo of Tesuque, the Pueblo of Cochiti, the Pueblo of Zuni, Indian trust or restricted lands located outside the boundaries of Indian reservations in the State of New Mexico, the Spokane Reservation, the Gila River Reservation, the San Carlos Apache Reservation, the Hualapai Reservation, the Lummi Reservation, the Swinomish Reservation, and the Navajo Reservation which may be for a term of not to exceed ninety-nine years, and except leases of land for grazing purposes which may be for a term of not to exceed ten years. Leases for public, religious, educational, recreational, residential, or business purposes (except leases the initial term of which extends for more than seventy-four years) with the consent of both parties may include provisions authorizing their renewal for one additional term of not to exceed twenty-five years, and all leases and renewals shall be made under such terms and regulations as may be prescribed by the Secretary of the Interior. S. Rept. 91-877 |