Mining Leases On Tribal Lands Produce Cash And Questions

 

(Crow Nation gas well - Reuters)

After years of legal wrangling, the Anadarko Agency office of the Bureau of Indian Affairs recently held the largest-ever auction of oil and gas mining leases on Tribal land. The auction offered mining lease rights on over 1500 plots located on Kiowa, Comanche, Apache, Fort Sill Apache, Caddo, Delaware, and Wichita Tribal and allotted lands. The sale netted just over $6 million in purchases, with the majority of the lease rights going to the Sodak, Marathon and Chesapeake oil companies.

Revenues like this are certainly much-needed in Native communities, but the money does not go directly into Native hands. The funds will be managed by the BIA in trust for the Tribes whose lands underlie the mining leases. As the claims in the Cobell litigation highlight, the fiduciary relationship between the BIA and Tribal members has been marred by allegations of mismanagement and breach of trust.  It will be incumbent upon Tribal governments and their members to monitor the revenue flow from these leases to ensure the funds are properly used for Tribal needs. A further question arises regarding future revenue streams from the mineral resources the leases are designed to produce. Whether Tribes will receive royalty payments from wells that begin pumping oil and natural gas on their lands – and how much money can be expected – is undetermined at this time.

Indian trust beneficiaries who have questions about this sale may contact their fiduciary trust officer using the interactive map on the OST Web site , or call OST’s Trust Beneficiary Call Center at 1-888-678-6836
 

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