132)); Gila River (act of Dec. 8, 1967 (81 Stat. 559)); San Carlos Apache (act of Dec. 10, 1967 (81 Stat. 560)); and Hualapai (act of June 20, 1968 (82 Stat. 242)).

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 of 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 the listed 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.

Under the National Housing Act, mortgage insurance is available for residential housing loans based on a leasehold interest only if the lease has not less than 50 years to run from the date the mortgage is executed (12 U.S.C. 1707). The same limitation applies under the rental housing insurance program (12 U.S.C. 1713), the rehabilitation and neighborhood conservation housing insurance program (12 U.S.C. 1715k), the relocation housing insurance program (12 U.S.C. 17151), the national defense housing insurance program (12 U.S.C. 1750), and the land development insurance program (12 U.S.C. 1749aa). The regulations governing leasehold loans by a Federal savings and loan association require a mimimum unexpired lease term of 50 years when the loan is made. The law and regulations governing leasehold loans by State savings and loan assocaitions vary from State to State with several States following the limitations governing Federal associations. Insurance companies follow restrictive policies that vary, depending to a large degree upon the requirements imposed by the laws of the States controlling their organization, but in general they require leases to extend well beyond the date for amortizing the loan, and in some cases they require 99-year leases.

After a long term development lease is approved, time must be consumed in preparing development plans, securing requisite approval of those plans, negotiating financing, constructing developments and marketing them. This means that under present leasing authority a lessee of Indian land cannot possibly comply with the minimum legal requirements of a substantial segment of the lending community.

The extension of leasing authority which now permits the equivalent of a 50-year lease to the 65 years provided for in the bill will be of substantial assistance in making Indian development leases marketable. However, even that extension will not permit the lease development of all lands in a manner that will best serve the interests of all Indian owners.

The amendment will, for instance, assist a prospective lessee of 10,000 acres of Indian land who might propose to spend $20 million in developing it over a period of 15 years. The developer would agree

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to spend $8 million during the first 3 years plus $1 million a year for the next 12 years. Such a lessee could not seek or obtain the total $20 million before commencing any construction but would, rather, finance developments as they are made. Thus, during the 15th year of his lease, he would be seeking a substantial portion of $1 million for the last elements of his development. In a proposal of this magnitude, however, a development period of 20 or 25 years would not be unreasonable.

Indian lands available for development are located in varying degrees of remoteness from existing development areas and must compete with non-Indian lands, the fee title to which is usually offered. A lessee of Indian land, because of the problem of remoteness, is usually faced with substantial uncertainties as to the marketability of the developed property, and in this situation demands sufficient lease term to protect his interests if the marketing of developments proves to be slower than the parties would initially desire or anticipate.

It is our considered opinion that in order to provide the flexibility necessary to meet the differing problems inherent in financing the development of Indian land, and, equally important, the varying market situations existing from reservation to reservation, authority should be granted to allow all Indians to enter into leases with terms of up to 99 years, subject to the approval of this Department. As noted, 18 reservations already have been granted authority to lease for 99 years, and each session of Congress sees the governing bodies of other reservations seeking this authority. Even with the legislation as now proposed, it is our belief that there will be tribal groups coming forward from time to time seeking legislation for 99-year leasing authority, as the potential for substantial development becomes greater on their reservations.

To give all tribes 99-year leasing authority, we recommend that the bill be amended by deleting lines 8 through 19 on page 2 of the bill and inserting in lieu thereof the words "lease shall not exceed ninety-nine years. No".

If the above-recommended amendment is not adopted, the bill will have to be amended to protect the 99-year leasing authority of the Colorado River, San Xavier, and Salt River Reservations since the bill as it is presently written does not include these reservations in the list of reservations which may make leases for a 99-year period. The bill would also restrict any legislative authority that Congress might enact in the meantime affecting 99-year leasing authority on certain public domain allotments. We do not believe that this was intended. We, therefore, recommend that the following amendment be adopted if the first amendment suggested by this report is not adopted by the committee. On page 2, delete line 18 and insert in lieu thereof the words "Apache Reservation, the Navajo Reservation, the Colorado River Reservation, the San Xavier Reservation, and the Salt River Reservation, and any other Indian trust or restricted and authorized by specific legislation, which".

The bill retains the language of the present act to the effect that business leases may include the development or utilization of natural resources in connection with operations under such leases, but adds a clarifying statement that the authority to lease land for the development or utilization of natural resources does not extend to leases for

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purposes that are subject to the laws governing mining leases of Indian lands, the laws under which minerals, including oil and gas, are exploited. This has been the consistent interpretation of the law. This new language clearly precludes the making of mineral leases under its authority but does not prevent the development of natural resources that are not mineral, such as recent proposals to develop geothermal steam.

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.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET,

Washington, D.C., July 16, 1969.

Hon. HENRY M. JACKSON,

Chairman, Committee on Interior and Insular Affairs,

U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: This is in reply to your request for the views of the Bureau of the Budget on S. 204, a bill to amend the Indian Long-Term Leasing Act.

The Bureau of the Budget would have no objection to the enactment of S. 204 if amended as recommended by the Department of the Interior.

Sincerely yours,

WILFRED H. 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

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Reservation, the Pueblo of Pojoaque, the Pueblo of Tesuque, the Pueblo of Cochiti, the Pueblo of Zuni, 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.] 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, business, farming, or grazing purposes, including the development or utilization of natural resources in connection with operations under such leases, but no lease shall be executed under this Act for purposes that are subject to the laws governing mining leases of Indian lands. The term of a grazing lease or a farming lease that does not require the making of a substantial investment in the improvement of the land shall not exceed ten years. The term of a farming lease that requires the making of a substantial investment in the improvement of the land shall not exceed forty years. The term of any other lease shall not exceed sixty-five years, except such other leases of land on the Agua Caliente (Palm Springs) Reservation, the Dania Reservation, the Southern Ute Reservation, the the Fort Mojave Reservation, the Pyramid Lake Reservation, the Pueblo of Pojoaque, the Pueblo of Tesuque, the Pueblo of Cochiti, the Pueblo of Zuni, the Hualapai Reservation, the Yavapai Reservation, the San Carlos Apache Reservation, the Gila River Reservation, the Havasupai Reservation, the Tulalip Reservation the Swinomish Reservation, the Lummi Reservation, the Spokane Reservation, the Fort Apache Reservation, the Navajo Reservation, the Coeur d'Alene Reservation, the Colorado River Reservation, the San Xavier Reservation, and the Salt River Reservation, and any other Indian trust or restricted land authorized by specific legislation, which may be for a term of not to exceed ninety-nine years. No lease shall contain an option to renew which, if exercised, would extend the term beyond the maximum term permitted by this Act. The Secretary of the Interior shall not approve any lease with a term that is longer than is necessary in his judgment to obtain maximum economic benefits for the Indian owners.

о

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DECLARING THAT CERTAIN FEDERALLY OWNED LANDS ARE HELD BY THE UNITED STATES IN TRUST FOR THE INDIANS OF THE PUEBLO OF LAGUNA

AUGUST 12, 1969.-Ordered to be printed

Mr. ANDERSON, from the Committee on Interior and Insular Affairs, submitted the following

REPORT

[To accompany S. 210]

The Committee on Interior and Insular Affairs, to which was referred the bill (S. 210) to declare that certain federally owned lands are held by the United States in trust for the Indians of the Pueblo of Laguna, having considered the same, reports favorably thereon with amendments and recommends that the bill as amended do pass. The amendments are as follows:

On page 4, line 8, strike the work "point," and insert the word "point;".

On page 9, line 3, strike the words "jurisdiction over" and insert in lieu thereof the words "use and occupancy of".

PURPOSE

The purpose of S. 210 is to declare that the United States will hold approximately 1,016.65 acres of excess federally owned land in trust for the Laguna Pueblo, N. Mex. The conveyance is subject to valid existing rights-of-way, and to the right of the U.S. Public Health Service to continue to use and occupy the property presently in use by it for so long as needed. The bill also provides that the Indian Claims Commission will determine the extent to which the value of the beneficial interest conveyed should or should not be set off against any claim against the U.S. Government determined by the Com

mission.

NEED

This federally owned land is comprised of 11 widely separated tract: that range in size from less than an acre to one parcel of 640 acres Five of the parcels are former school sites acquired from the puebl