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----- Original Message -----
Cc: E Weick
Sent: Thursday, August 21, 2003 12:45 PM
Subject: Interior Dept cheated Indians report released

Here is the Washington Post�s version of the report on Indian lands oil leases. I did not find anything on this in the NYT.  - Karen

Excerpts: Report Finds Oil Firms Paid Indians Less for Land
Special Master Urges Full Probe of Leases

By Carol D. Leonnig, Washington Post Staff Writer, Thursday, August 21, 2003; Page A21 @ http://www.washingtonpost.com/wp-dyn/articles/A23434-2003Aug20.html

Oil and gas companies paid Indians whose land is managed by the government just a fraction of the amounts they paid private landowners for the right to run pipelines across their property, arrangements that were approved by Interior Department officials, according to an investigative court report released yesterday.

For natural gas and oil pipelines running across the San Juan basin in New Mexico, for example, utility companies paid $25 to $40 for the right to cross every 51/2 yards of Navajo land managed by the government. But on adjoining properties, the investigation found, the companies paid $140 to $577 to cross the same amount of land owned and managed by private individuals and companies.

A special master appointed by a federal judge in Washington released the findings yesterday, urging the judge to end the disparities and order a full investigation into how Interior Department officials value leases for Indian lands they control.  The special master, Alan L. Balaran, also reported that the Interior Department's chief appraiser of Indian trust land admitted destroying his computerized appraisal records last fall and misplacing key documents relating to how he valued Indian properties in New Mexico and Arizona.

The Native American groups have been involved in a seven-year legal battle with the Interior Department that seeks a fair accounting of government-managed Indian lands and money, one of the largest class-action lawsuits in U.S. history, with 300,000 plaintiffs. U.S. District Judge Royce C. Lamberth has already determined that the government failed in its fiduciary responsibilities to the Indians and is trying to determine damages and how to repair the system.

The Indian groups said they would sue the department again for damages based on Balaran's conclusions. They said they would seek uncollected revenue that would have been generated by leasing the rights at fair market value, and contended the government conspired with utility companies to keep lease rates low.

"Why are Indians getting pennies on the dollar for what others get?" asked Keith Harper, attorney with the Native American Rights Fund. "These people are essentially being robbed of their inheritance. You have sweetheart deals with oil and gas companies. And you have the top people at Interior saying it's okay, and aiding this corrupt practice."

Interior officials responded that they had asked Lamberth to remove Balaran from his post, alleging Balaran is biased in favor of Native Americans. "This is clearly another faulty and biased report from the special master," said Interior Department spokesman Dan DuBray. "We believe an independent, objective�review of Interior's appraisal activity will find it is reasonable and appropriate." (end of excerpts)

 

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