<DOC> [108 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:89744.wais] S. Hrg. 108-375 SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION GRAND COULEE DAM EQUITABLE COMPENSATION SETTLEMENT ACT ======================================================================= HEARING BEFORE THE COMMITTEE ON INDIAN AFFAIRS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS FIRST SESSION ON S. 1438 TO PROVIDE FOR EQUITABLE COMPENSATION OF THE SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION IN SETTLEMENT OF CLAIMS OF THE TRIBE CONCERNING THE CONTRIBUTION OF THE TRIBE TO THE PRODUCTION OF HYDROPOWER BY THE GRAND COULEE DAM __________ OCTOBER 2, 2003 WASHINGTON, DC 89-744 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2003 ____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 COMMITTEE ON INDIAN AFFAIRS BEN NIGHTHORSE CAMPBELL, Colorado, Chairman DANIEL K. INOUYE, Hawaii, Vice Chairman JOHN McCAIN, Arizona, KENT CONRAD, North Dakota PETE V. DOMENICI, New Mexico HARRY REID, Nevada CRAIG THOMAS, Wyoming DANIEL K. AKAKA, Hawaii ORRIN G. HATCH, Utah BYRON L. DORGAN, North Dakota JAMES M. INHOFE, Oklahoma TIM JOHNSON, South Dakota GORDON SMITH, Oregon MARIA CANTWELL, Washington LISA MURKOWSKI, Alaska Paul Moorehead, Majority Staff Director/Chief Counsel Patricia M. Zell, Minority Staff Director/Chief Counsel (ii) C O N T E N T S ---------- Page S. 1438, text of................................................. 3 Statements: Cantwell, Maria, U.S. Senator from Washington................ 16 Funke, Howard, Funke and Work Law Offices, Coeur D'Alene, ID. 19 Inouye, Hon. Daniel K., U.S. Senator from Hawaii, vice chairman, Committee on Indian Affairs...................... 1 Murray, Patty, U.S. Senator from Washington.................. 17 Pace, Charles E., president and CEO, Regional Services, Challis, ID................................................ 19 Seyler, Warren, chairman, Spokane Tribal Business Council.... 19 Prepared Statements: Cantwell, Maria, U.S. Senator from Washington................ 29 Funke, Howard................................................ 33 Hickok, Steven G., deputy administrator, Bonneville Power Administration............................................. 36 Murray, Patty, U.S. Senator from Washington.................. 31 Pace, Charles E.............................................. 45 Robinson, Robert A., managing director, Natural Resources and Environment................................................ 60 Seyler, Warren (with attachment)............................. 52 SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION GRAND COULEE DAM EQUITABLE COMPENSATION SETTLEMENT ACT ---------- THURSDAY, OCTOBER 2, 2003 U.S. Senate, Committee on Indian Affairs, Washington, DC. The committee met, pursuant to notice, at 2:08 p.m. in room 485, Russell Senate Building, Hon. Daniel K. Inouye (vice chairman of the committee) presiding. Present: Senators Inouye and Cantwell. STATEMENT OF HON. DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII, VICE CHAIRMAN, COMMITTEE ON INDIAN AFFAIRS Senator Inouye. The Committee on Indian Affairs meets this afternoon to receive testimony on S. 1438, a bill to provide for the equitable compensation of the Spokane Tribe in settlement of the tribe's claims relating to the use of tribal lands for the production of hydropower. Seventy years ago, the United States began construction of the Grand Coulee Dam in Washington State. In 1940, lands belonging to the Confederated Tribes of the Colville Reservation and the Spokane Tribe were acquired by the United States for its hydropower project, and some minimal compensation was authorized to be paid to the tribes. Those tribal lands were directly affected by the construction and operation of the Grand Coulee Dam. Some lands were inundated with water; others were affected by the production of hydropower, and salmon fisheries on which the tribes were dependent both for subsistence and economically were destroyed. Fifteen years ago, the Congress enacted a settlement for the Confederated Tribes of the Colville Reservation based upon the tribe's legal claims which had been pending for 43 years before the Indian Claims Commission, the United States Court of Federal Claims, and finally the U.S. Court of Appeals for the Federal Circuit. At that time, recognizing that the Spokane Tribe's legal claims for the loss of tribal lands and resources were barred by the applicable statute of limitations, several senators joined me in calling upon the Departments of the Interior and Justice to work with the Spokane Tribe to develop a settlement of the tribe's equitable claims. That process did not come to fruition, but today I am pleased to report that the good and worthy Senators from the State of Washington have not forgotten the history of the Grand Coulee Dam, and the losses suffered by the Spokane Tribe. We are here today to receive testimony on the bill that they have introduced to provide equitable compensation to the Spokane Tribe for its losses. [Text of S. 1438 follows:] <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> Senator Inouye. In order to provide a sharpened focus on the testimony of the Spokane Tribe, the committee has called upon the Bonneville Power Administration, the General Accounting Office [GAO] and the Department of the Interior to submit written testimony for the record of the hearing today. Now it is my pleasure to call upon the authors of the measure, my distinguished colleagues from the State of Washington, Senator Patty Murray and Senator Maria Cantwell. Senator Cantwell. STATEMENT OF HON. MARIA CANTWELL, U.S. SENATOR FROM WASHINGTON Senator Cantwell. Thank you, Mr. Chairman. I greatly appreciate your willingness to hold this important hearing and for your cosponsorship of this legislation. You have been a consistent champion for establishing a fair and equitable settlement process and to compensate sovereign Indian nations harmed by actions of the U.S. Government and those that we represent. For this and the other efforts on Washington State tribes, Senator Murray and I greatly thank you. I would also like to thank my friend and colleague, Senator Murray, for her important efforts on this legislation. As you all are aware, Senator Murray was instrumental in providing the Colville's with a fair and equitable settlement in 1994 for nearly identical impact to their reservation. I look forward to working with her as we move through this settlement agreement. And of course, I would like to thank Warren Seyler and the other Spokanes and their representatives for coming today. I know you have been fighting for just compensation for a long period of time, and the damages to your reservation way of life that have been that way since the construction of the Grand Coulee Dam in 1933. I recognize that this has been a long and extremely frustrating process. I hope that this hearing will provide the necessary information for us to move forward and once and for all resolve the Spokane claims against the U.S. Government. I would also like to take this opportunity to reiterate my condolences to the tribe regarding the death of Bruce Wynne. Bruce obviously was very dedicated to this community and was invaluable. His loss will not just be felt in Washington State, but across the country. My thoughts and prayers are with his family. I know that Bruce spent a great deal of time trying to solve this issue, so it is my hope that we can give some quick action to this and the longstanding grievances that have been here, so that we can move forward and make that a legacy to Bruce's leadership. Mr. Chairman, my goal for this hearing is to establish for the record the harm done to the Spokane Tribe, and the damage that was done following the construction of the Grand Coulee Dam and the legal and moral obligation that I believe that we have as a Federal Government to compensate the Spokane's for those damages. For more than one-half century, as you mentioned, the Grand Coulee Dam project has been an extraordinary contribution to our Nation. It helped pull the economy out of the Great Depression. It provided the electricity that produced the aluminum industry required for airplanes and weapons, and it ensured our national security. The project continues to provide enormous revenues for the United States and is a key component of our agricultural economy in Eastern Washington. However, these benefits have come at direct cost and expense to tribal property that have been inundated when the United States built the Grand Coulee Dam. Before dam construction, the free-flowing Columbia River supported a very robust and plentiful salmon run and provided virtually all of the subsistence needed by the Spokane Tribe. After that construction, the Columbia and Spokane River tributary flooded tribal communities, schools, roads, and causing problems with stagnant water and still erosion problems on the reservation today. The legislation that Senators Inouye, Murray, and I have introduced, which was done in July, is similar to the legislation that Senator Murray did in 1994, a bill that codified the settlement and provided perpetual payments to the neighboring Confederated Colville Tribes. To date, the Colvilles have received over $180 million in payments for their land inundated by Lake Roosevelt. This bill provides the framework for the success that was the same for that settlement, providing the Spokanes with compensation that is directly proportional to the settlement afforded the Colville Tribes. Specifically, the Spokane Tribe would receive 39.4 percent of the past and future compensation awarded the Colville Tribes pursuant to the 1994 legislation. This percentage is based on the proportion of tribal lands impacted after the Federal Government built the Grand Coulee project. S. 1438 also outlines the facts of the Spokane claims and describes how the tribe can use that compensation that is forthcoming. Mr. Chairman, I will enter the rest of my statement for the record, but I just want to say that I very much appreciate the fact that you have given time for this hearing on this important issue. When Federal actions take physical and economic impacts on our tribes, we need to respond. So I applaud the leadership that you and Senator Murray and others are using on this legislation. Thank you. [Prepared statement of Senator Cantwell appears in appendix.] Senator Inouye. I thank you very much. Your full statement will be made part of the record. Now it is my great honor to recognize the distinguished senior Senator of the State of Washington, the Honorable Patty Murray. STATEMENT OF HON. PATTY MURRAY, U.S. SENATOR FROM WASHINGTON Senator Murray. Good afternoon, Mr. Chairman. It is a delight to call you Mr. Chairman. Thank you very much for having this very important hearing today. And Senator Cantwell, thank you for your leadership on this and the many tribal issues that affect our State, our region and, really, our Nation. I look forward to working with you on this. I appreciate all your work on this. I am really proud to be here today to introduce to the committee the distinguished chairman of the Spokane Tribal Business Council, Chairman Warren Seyler. He is a leading figure in Washington's tribal communities and I know his testimony will be of great value to this committee. Before I introduce him, I would like to share a few ideas about S. 1438. Earlier this year, I joined with Senators Cantwell and Inouye in offering legislation that would finally compensate the Spokane Tribe for its contribution to the hydropower that is generated by the Grand Coulee Dam. You will recall I introduced similar legislation in the 106th and 107th Congresses. The Grand Coulee Dam is the largest electricity producer in the United States. It provides electricity and water to the Columbia Basin Project, which is one of the world's largest irrigation projects. For more than 60 years, the Grand Coulee has been the backbone of the Northwest Federal power grid and our agricultural economy. But for the Native peoples of this region, construction of the Grand Coulee Dam came at a very high price. For the Spokane Tribe in particular, it brought an end to a way of life. The Spokane River was once a free- flowing waterway that supported plentiful salmon runs. It became a barren stretch of slack water that now erodes the southern lands of the reservation. In fact, the tribe's reservation has been flooded on two sides. Mr. Chairman, S. 1438 is not the first piece of legislation seeking to compensate a tribe for losses brought by the construction of Grand Coulee Dam. In 1994, Congress passed similar settlement legislation to compensate the neighboring Confederated Colville Tribes. Since the 1970's, the Congress and Federal agencies have indicated that both the Colville and Spokane Tribes should be compensated for their losses. This legislation will provide a long overdue settlement to the Spokane Tribe. Mr. Chairman, it is now my pleasure to introduce Chairman Seyler to the committee. He was first elected to the Spokane Tribal Business Council in 1990. Chairman Seyler also serves on the board of the Upper Columbia United Tribes, which is involved in fish and management issues along the Columbia River. He is also active in management issues at Lake Roosevelt, a reservoir created when the Grand Coulee Dam was constructed. Finally, Mr. Chairman, I would like to join with Senator Cantwell in offering my condolences to the tribe. Last week they lost, and indeed all of Indian Country, lost a great deal with the passing of former Chairman Bruce Wynne. He led with his heart and had a remarkable ability to bridge generations. His leadership, knowledge of history and warm personality will be missed. I must say his legacy continues in leaders like Chairman Seyler, and I am proud to introduce him to the committee today. Thank you very much. [Prepared statement of Senator Murray appears in appendix.] Senator Inouye. Chairman Seyler, with that introduction, you can't lose. [Laughter.] Before you proceed, just for the record, you are accompanied by Howard Funke of Funke and Work Law Offices, Coeur d'Alene, ID; and Charles E. Pace, president and CEO, Regional Services, Challis, ID. Would you gentlemen like to join Chairman Seyler at the table? STATEMENT OF WARREN SEYLER, CHAIRMAN, SPOKANE TRIBAL BUSINESS COUNCIL, ACCOMPANIED BY HOWARD FUNKE, ESQUIRE, FUNKE AND WORK LAW OFFICES, COEUR D'ALENE, ID; AND CHARLES E. PACE, PRESIDENT AND CEO, REGIONAL SERVICES, CHALLIS, ID Mr. Seyler. Thank you, Mr. Chairman and members of the Committee on Indian Affairs for the opportunity to testify on S. 1438. As stated, accompanying me is Howard Funke, our attorney, and Charles Pace, our economist. Also joining us today in the audience is Vice Chairman Greg Abrahamson, tribal council member, Dave Wynekoop, Jr., and tribal attorney, Margo Hill. I am here today on behalf of the Spokane Tribe to ask for your help as representatives of the United States of America. I ask that you act on behalf of the United States to finally treat the Spokane Tribe fairly and honorably for the injury to our tribe and reservation caused by the Grand Coulee project. My testimony today summarizes the critical need for this important legislation. We are also providing briefing books for the record and a video. I ask that they be put in the record also. The Spokane Tribe is an honorable tribe. We are a strong tribe, a trusting tribe. We are good for our word and strong in our commitment to this Nation. Grand Coulee's waters flooded the lands of two sister Indian reservations that held great economic, cultural and spiritual significance. Ours is one of those reservations. Let me just state one issue that I just mentioned, being sister Indian reservations. That is exactly what we are even today. Today, you can find family members, one enrolled on the Colville Reservation as a brother, and on the Spokane Reservation a sister may be enrolled. Aunts and uncles, one may be enrolled on the Spokane, another on the Colville. That is just historic. It has always been that way, even when we had free use of the river. Our life, culture, economy and religion centered around the river. We were river people. We were fishing people. We depended heavily on the rivers and historic salmon runs that were brought to us. We were known by our neighboring tribes as the salmon eaters. The Spokane River, which was named after our people, was and is the center of our universe. We call it the Path of Life. President Rutherford B. Hayes in 1881 recognized the importance and significance of these rivers by expressly including the entire adjacent river beds of the Spokane and Columbia Rivers within our reservation. But the Spokane and Columbia Rivers are now beneath Grand Coulee's waters. The other reservation flooded by Grand Coulee is that of the Colville. The waters that rose behind Grand Coulee brought similar fates to our reservations. Burial sites, village sites, spiritual sites, all lost to the rising waters, lost so this country could benefit. The river banks which provided us plants for foods and medicines were forever flooded. Homes, gardens, farms, ranches our people had worked hard to build on our reservation are now under water. The free-flowing Columbia River and our Path of Life is now under the water behind Grand Coulee Dam. The dam also destroyed our salmon runs, which from time immemorial had given us life and identity. While the Colville lost most of their runs, salmon were still able to reach the Colville Reservation. But upstream to our reservation, the salmon was entirely lost. For decades, the Colville and Spokane Tribes shared similar histories and dialogue in connection with the Grand Coulee issue and were subjected to identical misconduct by the U.S. Government. When the project first began, it was to be a State project governed by the Federal Power Act, which required annual compensation to impacted Indian tribes. Later, after the project was Federalized and no longer fell under the Federal Power Act, Government officials promised and acknowledged that the tribes still should be compensated. When the construction on Grand Coulee Dam began, the Commissioner of Indian Affairs recommended in writing that both tribes receive annual payments for the dam's operations. The Secretary of the Interior and other high-level Federal official knew the tribe should receive compensation, but this never happened. In 1941, the tribes renewed their efforts, taking the extraordinary step of sending a joint delegation cross country by train to meet in Washington, DC. This meeting was with the Commissioner of Indian Affairs, the issue, Grand Coulee Dam. The meeting was held on December 10, 3 days after Pearl Harbor was bombed. The Commissioner and his staff explained that the war had become the Nation's priority and that Congress could not be expected at such times to address the tribes' needs, but they promised to do so. They promised they would help. When our leaders returned home, they trusted that things would be made right once the war was over, and this is the same war that we sent our young men and women to help fight. Understand, for the Spokane Tribe these were times our people were completely dependent on the Bureau of Indian Affairs [BIA]. We were allowed to do nothing without the BIA or their approval. In words of one of the spiritual people back in our tribe, in many of his comments, unfortunately he has passed away recently, he would state that back then, BIA was God. We could do nothing without asking their permission. We could do nothing without them leading the way. We were not experienced in the ways of American law, politics and business. At that time, we were among the most isolated tribes in the Nation. We were a ward of the Department of Interior and the BIA. We were beginning to farm and ranch, but our subsistence ways depended heavily on the river's salmon, and this was most prominent. At that time, we had no constitutionally formed government. Even though the BIA's nearest agency was 100 miles away on the Colville Reservation, we relied on the BIA officials for managing details as simple as taking minutes at tribal meetings. And put forth at that time, many of our elders still did not speak English. They spoke in our Salish tongue. So when the Commissioner of Indian Affairs told our people he would do all he could to help, it carried great weight back home. Most of the communication at this time was done in letter form, so it had to be interpreted or read to our people. Soon after the war's end in 1946, Congress enacted the Indian Claims Commission Act. The ICCA allowed Indian tribes to bring historic legal claims against the U.S. Government. Several obstacles, unique to our tribe, made the task of filing the ICCA claims unusually difficult. First, although the Act required the Commission and the BIA to notify all tribes of the claim that should be filed, we received no such notice. This was due to the very remoteness of our tribe. We learned of the ICCA only from the neighboring tribe. I believe it was the Colville or the Kalispel and Coeur d'Alene Tribes, by happenstance. This was only months before the 1951 deadline. Second, our leadership acted to retain a lawyer once they learned of the ICCA, but the Commissioner of Indian Affairs withheld his approval several months, costing our tribe much critical time. Also, our constitutional government was only finally formed 60 days prior to the 1951 deadline. Eventually, the Spokanes filed the standard ICCA claim, much like the claim filed by the Colville Tribe, but no mention of Grand Coulee was ever made. It was understood to apply only to historic claims, rather than claims for wrongful conduct that was ongoing. In 1972, the Secretary of the Interior established a task force to address the Spokane and Colville Tribes, but unfortunately the only thing that came out of this task force was legal defenses. We trusted that the right thing would be done when the task force report came out. It was not. We trusted that the Congress would help by addressing our claims side by side with the Colvilles. This has not happened yet. Grand Coulee's impacts on the Spokane and Colville Tribes is virtually identical, as were the tribes' histories of dealing with the United States throughout all of the years. While the tribes have survived decades of lost hope and broken promises, we continue to fight for this today. There is a simple historical fact that separates the two tribes. It is the fact that led ultimately to the Colville settlement of its claim. The settlement under the Colvilles received $53 million in back damages and annual payments in perpetuity that since 1994 have been $15 million to $20 million each year. I think it would be unprecedented for one tribe to receive such compensation from the United States on the exact identical issue that a sister tribe would receive nothing. In the mid-1960's, the Spokane Tribe, a trusting tribe that had always come to the aid of the U.S. Government whenever asked, entered into a cooperative relationship with the United States, and in 1967 the tribe settled its Indian Claims Commission case. The Colville's did not. Instead, the Colville's persisted with their legal battles through the 1960's and beyond the days of the task force. The Colville's had not raised the Grand Coulee claim either in their original ICCA case any better than the Spokanes, but their decades-long resistance to settlement enabled them to benefit from a 1970's Indian Claims Commission case. In 1975, the Commission ruled for the first time ever that it had jurisdiction over cases where the wrong continued beyond the ICCA's 1951 statutory deadline. From this point forward, it seems our trusting ways have been working against us, because the Colvilles, armed with that new decision, in 1976 had sought and obtained permission to amend their claim to include for the first time the Grand Coulee. Our tribe, having come to terms with the United States in the 1960's, had no case to amend. In 1978, the Indian Claims Commission ruled that the United States' conduct in building Grand Coulee Dam was unfair and dishonorable. Therefore, they awarded the Colville Tribes over $3 million for fisheries. In 1992, the Federal Circuit Court of Appeals ruled that the Colvilles' claim for power values based on the same standard was not barred. With that leverage, the Colville's secured a settlement which in 1994 the Congress approved Public Law 103-436. Nine years ago, in the context of the Colville settlement, I came here and testified to you, Congress, on my tribe's behalf. I asked Congress to include our settlement with the Colville's or to waive the statute of limitations so we may also present our case. But rather than providing our requested relief, Congress again directed the United States to negotiate a fair settlement. Unfortunately, again Congress' directive never happened. Since then, I have participated in virtually all discussions held between the tribe and the three separate BPA administrators that had represented the United States. During the past nine years, we have been forced to confront countless tactics that run directly counter to Congress' direction and intent, that our Grand Coulee claim be negotiated in good faith and on its merits. For the first several years, we met nothing but delay and assertion of technical legal defenses. Members of Congress who had been made aware of these failings admonished the United States, stating in clear terms that the negotiation must be on the merits of our claim without consideration of legal defenses, and that definition negotiations must involve flexibility. After 9 years of fruitless negotiations, 9 years of broken promises and delays, I am back here today requesting that justice not go unanswered; that the U.S. Government recognize our contributions and sacrifices to this great Nation. To compensate one of two tribes devastated by Grand Coulee and not the other has only compounded the injustice to our people and prolonged this conflict. We believe it would be unprecedented for Congress to only provide relief to one tribe and not the other, when both are so similarly impacted. We also make two quotes: Acting Associate Solicitor Aschenbrenner, quote, ``The government overlooked the prohibition against a guardian seizing property of its own ward, and then profiting from the seizure.'' Also a quote from Chief Justice Blackmun, ``Great nations like great men should honor their word.'' In closing, Mr. Chairman and honorable members of the committee, I ask that you listen to your hearts. We have no place to turn, we have no place to go. We ask for our day of justice. We have waited for this day for over 60 years. One last comment from the words of the Spokane Tribe and in our language, that goes [remarks in native tongue], listen to your hearts what is on your heart. Thank you. [Prepared statement of Mr. Seyler appears in appendix.] Senator Inouye. Thank you very much. I have been advised that Mr. Funke would like to say a few words. Mr. Funke. Thank you Mr. Chairman. Just a few words. Just to give you a sense of what was going on in the 1930's on the Spokane Indian Reservation before Grand Coulee was visited on these people. They were one of the most isolated tribes in America. They were sitting there on the shores of the Columbia River and the Spokane River. Their reservation is bordered by and includes within the description of the reservation the Columbia River and the Spokane River. It is very unusual for the United States to do that. They did that for the specific reason that these people were so tied to those rivers that they included them within the boundary of the Spokane Reservation. Very unusual. Sitting there very isolated, intact Indian communities, virtually untouched, and in come 7,800 non-Indian workers plopped right in the middle of that whole operation to build Grand Coulee. As the United States is moving to build Grand Coulee as a public works project, and to begin production of energy, they made promises to the tribe about how they would protect their interests. They made promises to the tribe that they would get a share of the power revenues. And then they went ahead and built Grand Coulee and they have not paid the tribe anything. They started flooding their lands and people were being driven out of their homes. As that was occurring their cemeteries were being buried, their cultural sites and the best land on that reservation was being inundated, then Congress saw fit to direct the Secretary to designate a taking of those lands. It was not a bargain deal. It was not a sale. It was a taking of Indian lands as directed by Congress. Go in and designate what you want and what you need, and then you, Secretary, determine what that is worth. What he thought it was worth, thousands of acres of land, cutting off their fish runs, disrupting their culture, their economy, their health system, their social systems, their entire life-way, what he thought that was worth was $4,700. Well, then they turned around and started reaping billions annually from the value of Grand Coulee. We are not against people and so-called progress and the generation of value from hydropower. But this Nation has benefited tremendously from the generation of hydropower at Grand Coulee. It is called the ``economic engine'' of the Northwest. I could spend hours telling you the value of Grand Coulee. It is the keystone in the Federal Columbia River Power System. It regulates water supply all the way from Canada into the United States, all the way to the southern end. It regulates the Transmission Inter-tie. It generates billions of kilowatts. The only group that I can identify that really does not share in the value of the generation of this power is the people that this land was stolen from to build it. They are the only people that do not benefit from it. Everybody else reaps millions, billions. They got $4,700. That is atrocious. Larry Aschenbrenner says that was an act of confiscation by the guardian from land that belonged to the ward. And then the United States turned around and converted it to their own use. That is what the U.S. Associate Solicitor for Indian Affairs had to say about that activity and about that transfer. A lot is made about the fact, Senator, that the tribe did not file Grand Coulee claims on time back in 1951; that the Colvilles filed in 1951, why didn't the Spokanes? If they could do it, why didn't you do it? Well, the fact of the matter and if the truth were really revealed, neither tribe filed in 1951 to beat that statute of limitations. The Colvilles did not and neither did the Spokane. Neither one of them did because they were in discussions with the United States. They were being represented by the United States saying their interests would be protected. The United States was telling them they would provide compensation and protect their interests. They were in negotiation with the United States for management of the Grand Coulee Reservoir. Nothing was being said about filing claims through this entire period. When the United States started asserting legal defenses in the 1960's and 1970's, well, in 1967 the Spokane Tribe settled their claims case, a claims case based on land. It did not have anything to do with hydropower. At that point in the late 1960's and 1970's, neither tribe had filed. Then the United States started for the first time to assert defenses. Instead of continued negotiating, they began to both negotiate and start to erect defenses against the tribes. In 1975, the Navajo case was decided, which allowed claims that had not been filed in 1951 by the statute, you could take those claims and if you could relate them back to a wrong occurring in 1951, you could add those to claims you did file in 1951. So the Colvilles had not yet settled their case. They went into the court and asked the court to amend their petition to add Grand Coulee claims in 1976, not in 1951, but in 1976. That is the legal difference between this tribe and the Colvilles. They had an active case that they could amend in 1976 to relate back to 1951 or they would have been out of luck probably, too. So that is the only difference legally between these two tribes. So one is compensated; the other is told, you did not put that postage stamp on that envelope back in 1951, so you are out of luck. We now have a defense against you called navigational servitude. It does not have anything to do with fairness. It does not have anything to do with honor. All it has to do with is, navigational servitude, a defense. Fairness and honor are not on the table where you are concerned because you did not make that filing, or you did not have a case to amend. So just to illustrate the legal difference between the two and why one is compensated today and Congress has settled with one tribe, and the United States has not settled with the Spokane. Thank you. Senator Inouye. Thank you very much, Mr. Funke. Dr. Pace, would you care to add something to this? Mr. Pace. Thank you, Mr. Chairman and members of the committee. I will be very brief. In terms of the benefits that have been derived, Senator Cantwell mentioned the contribution in World War II. That was the aircraft. The electricity that was produced at Grand Coulee was used to produce the aircraft that turned the tide in the Pacific. Another thing that the project contributed at that time was readily available power to build the atomic bomb at Hanford, so there was a national security contribution there. I don't know if we have mentioned the Columbia Basin Project. I have done some estimation. I think the fact that a full water supply is provided for 500,000 acres has caused an increase in the valuation of land on the order of $2.5 billion. There are another 500,000 acres that potentially could have a full water supply. So there have been significant benefits to Eastern Washington. The support the project provides for the electric system serving the Western United States is unparalleled by any other asset. There simply is no substitute for Grand Coulee. If Grand Coulee was not available, the system operators would have far less flexibility. The system would be far less reliable, much less efficient, and be much more costly. So those are very significant national, regional and extra-regional benefits that are conferred by this project. At the same time, I have worked for the Spokane Tribe on their TANF program. I can tell you that the Spokane tribal government is essentially on life support. They have slashed millions of dollars out of their budgets between fiscal year 1999 and fiscal year 2002. Over $1.3 million has come out of those budgets. That has impacted their ability to deliver services to their tribal membership. It has impacted their ability to perform a number of other governmental functions. Their most recent round of budget cuts, looking forward to fiscal year 2004, have again devastated the tribe, with another $1.3 million coming out of their general fund just to balance their budget. Their health care facility operates on priority one status. You cannot even get service unless you are essentially dying or about to die. That is the state of affairs there. So there are dramatic contributions that Chairman Seyler and the people that have gone before him have made, and that the people who come after him will make from the Spokane Tribe. They have not shared in the substantial benefits of this project. Thank you. Senator Inouye. I thank you very much, Dr. Pace. Senator Cantwell. Senator Cantwell. Thank you, Mr. Chairman. I wondered if I could, Chairman Seyler, go back over a few things, because I think it is important for people to understand the damage that actually has been done in the area. While we are talking about the Colville Federation and the restitution that was given to them, sometimes we get lost in all the numbers. Could you provide the committee some detail about the tribal assets that have been inundated because of the rising river? Mr. Seyler. The Spokane Tribe, being historically living along the river, only naturally started developing through the years those farms, the orchards, those families as they built their homes, used the cemeteries that historically lay our ancestors were all covered over. Every year, that water as it has fluctuated for the Nation's use opens those graves up, opens up those village sites, opens up the cultural and spiritual sites. Within the records, you will see that there were other hydropower sites that could have been built benefiting the Spokane Tribe. Those have been covered over. That is probably some of the most. Senator Cantwell. Was there any attempt to relocate the graves during the construction of the dam? Mr. Seyler. More so for the Colville Tribe because they had more notice that it was going to happen. A few graves did get relocated, just on a last minute, maybe 1 week before they were covered over. But every year, we have people down on the boats walking the shores, trying to protect those graves. That water fluctuates on most years 90 feet. If you take 90 feet in a valley, sometimes you have a 1-mile long beach, for 18 miles, sometimes narrower, but sometimes 1 mile of beach. The Spokane River is about 15 miles like that, so it is a constant looking for those graves, because we do not know where they are at, because historically we have been there for over 10,000 years. Senator Cantwell. So compared to the Colvilles, you think that maybe what, 90 percent of those graves were not moved? Mr. Seyler. They are still there. Senator Cantwell. And have been affected and continue to be affected. Mr. Seyler. As of last month, I can attest that graves, we still had to relocate some as we found them coming up open. Senator Cantwell. And Chairman Seyler, what about the economic loss from salmon as a mainstay for the tribe? Mr. Seyler. Both economically and just for life itself, economically we cannot fish salmon. We have no place to go get salmon if we wanted. The Colvilles do. They can go to Chief Joseph and pull those fish out of the river. Other tribes can go to where the Klamath Falls used to be, where the other fishing sites used to be, and fish for those salmon. We do not have that right anymore, unless we buy a State permit. We should not have to do that. Senator Cantwell. Prior to the construction of the dam, though, the mainstay of economic resource for the tribe was salmon fishing? Mr. Seyler. Centered around salmon. Prior to the construction, salmon benefited the tribes not just in sustenance, but also it was a trading item. When times were tough, we could take the salmon and trade with other tribes. The economic value, we never sold the salmon because in our teachings, you do not take anything more than you can eat. So it is hard to put an economic value as far as sales of the salmon because that was not our heritage. We were not allowed to take something from the river if it was not for our own provision. That is just our cultural way. Senator Cantwell. In the 1940 directive by the Secretary of the Interior on what is just and equitable compensation, I think they came up with some number. Mr. Seyler. $4,700. Senator Cantwell. $4,700. I don't know if under any scenario $4,700 would have been equitable justification. But what do you think the number should be as far as payment to the tribe as it relates to the impact of the Grand Coulee Dam and the Federal Power Act? Mr. Seyler. I think fairness would go back to the process that was developed, and we know that there was also a tie to the Colville legislation through the years. I have had to deal with that. We feel that even they were cut short of what they deserved. The $39.4 million that has been mentioned over the years by the tribe is fair to us, not that it based on the Colvilles is probably not enough, but that is something that we could move forward with. Over the years, we have had negotiations, and following the identical discussions that the Colville Tribal Council had with the U.S. Government, when they came to a loggerhead, the Colville Tribe had a high, I guess BPA or the Government had a low figure, and they just cut the baby right in half. That is where they come up with their $57 million and their $15.25 million annually. There was no formula. They had no formula. There was a formula created later to work around that number. That came directly from their economist. My good friend and chairman at that time, Eddie Pomantier, that came from them directly and that was the method that was used. Senator Cantwell. The damage done by Lake Roosevelt, which has been specified as it related to the Colvilles and their payments, was similar to the damage done from Lake Roosevelt to the Spokanes? Mr. Seyler. Identical, if not worse for the Spokanes, because of the no-notice. I saw there was a video that was done, and I cannot recall even what it was. Actually, it was the first camera that came out of California, a video camera that was colored. It showed the Colville Tribes taking the time to remove those graves, taking the time to relocate their homes and their churches and that. Where the Spokanes as the water rose, we had to watch ours float down river. Senator Cantwell. Thank you, Mr. Chairman. Senator Inouye. Thank you very much. I gather, Mr. Chairman, that at this moment the negotiations between BPA and your tribe are not going on. Mr. Seyler. That is correct. Senator Inouye. Do you intend to resume these negotiations? Mr. Seyler. This morning, both BPA and the Spokane Tribe testified over at the House on this issue, and both parties were asked that same question. Both parties indicated that they would like to go back to the negotiating table. My comment to that is that the tribe has been trying to negotiate this for the last 60 years and just with one understanding is that whoever negotiates for the Federal Government on this is that they really understand what the term ``negotiation'' means. That is not what we have found in the past, a take-it-or-leave- it offer, but both parties show willingness at this time. Senator Inouye. On the payment of the compensation, I presume part of that will come from the Bonneville Power Administration and part of it from the Government. Mr. Seyler. Up until this point, it has been looked at just from Bonneville. I think just recently they looked at other forums. The Spokane tribal members do not care where it comes from. They just feel that things need to be fairly and honorably addressed. I think there are some real avenues that could resolve this issue. Part of that answer, because of who is receiving the rewards, Bonneville is part of that; maybe the water and land settlement could be used. We have other thoughts and ideas, but it is getting those onto the table and really looked at carefully. Senator Inouye. The bill, as you know, does not establish the source of compensation payment. I presume that was done to give you the flexibility to negotiate. If this committee can do anything to bring this about or to expedite it, we would be very happy to help. Mr. Seyler. That is very much appreciated. Senator Inouye. Do you have further questions? Senator Cantwell. Mr. Chairman, if I could, to followup on your comment, I believe that there have been many benefits from the establishment of the Grand Coulee Dam, and obviously, a history here that we have had the opportunity to look back on both from the Colvilles and the experience that the Spokanes have. So I guess at this point in time I am interested in looking at restitution to the Spokanes. If that means looking broader at the Treasury as opposed as to the Bonneville Power Administration as a source, I am happy to consider a variety of options. What I think is important for today's hearing is that we have had two courses of history here, two entities, sovereign nations impacted in similar ways. I am not sure if we actually weighed actual damages, we might have the most damage done right before us today. And yet, the restitution was not paid. So not only do we want to see that restitution, we want to look back on Indian country history and say that there was equitable access to restitution, equitable results, and not see future generations viewing the films of a lost opportunity to preserve the heritage and the history of a culture within the State of Washington. So I very much appreciate your attention to this important issue and to Senator Murray being here as well today. Senator Inouye. The record of this hearing will be kept open for 2 weeks just in case you want to supplement your remarks or to add anything. Mr. Seyler. Just one last comment. I think it would only be appropriate that not only everything be expected out of BPA, because this country, the great country of the United States of America, has also benefited from what the tribe lost, what we gave. We gave everything for this country to survive the war, to help it come out of the Depression and many other things. Thank you. Senator Inouye. I thank all of you very much for this most enlightening hearing. I thank Senator Cantwell. I think this has been very helpful. You have me very eager to move forward. Senator Cantwell. Thank you, Mr. Chairman. Senator Inouye. Thank you very much. The hearing is adjourned. Mr. Seyler. Thank you, Mr. Chairman. Thank you, committee. [Whereupon, at 3 p.m. the committee was adjourned, to reconvene at the call of the Chair.] ======================================================================= A P P E N D I X ---------- Additional Material Submitted for the Record ======================================================================= Prepared Statement of Hon. Maria Cantwell, U.S. Senator from Washington Thank you, Senator Inouye, I greatly appreciate your willingness to hold this important hearing and for your cosponsorship of this legislation. You have been a consistent champion for establishing fair and equitable settlements agreements that compensate sovereign Indian nations harmed by actions of the U.S. Government. For this and other efforts on behalf of Washington State tribes, I thank you. I would also like to thank my friend and colleague Senator Murray for her remarks in support of this bill. As you are all aware, Senator Murray was instrumental in providing the Confederated Colville Tribe with a fair and equitable settlement in 1994 for nearly identical impacts to its reservation. I look forward to working with her as we move this settlement agreement forward. And of course I would like to thank Warren Seyler and the other members of the Spokane Tribe and their representatives for coming today. I know you have been fighting for just compensation for the damages to your Reservation and way of life since construction of the Grand Coulee Dam began in 1933. I recognize that it has been an extremely frustrating process, and I hope this hearing will provide the necessary catalyst to once and for all resolve the Spokanes claim against the U.S. Government. I would also like to take this opportunity to reiterate my condolences to you and the tribe regarding the death of Bruce Wynne. Bruce's dedication to his community was legendary, and his loss will be felt not just in Washington State, but across the country. My thoughts and prayers are with his family and the tribe at this difficult time. I know Bruce spent a great deal of time trying to solve this very issue, so it is my hope that we can act quickly to settle this long-standing grievance which could serve as a legacy to Bruce's leadership. Mr. Chairman, my goal for this hearing is to establish for the record the harm done to the Spokane Tribe following construction of the Grand Coulee Dam, and the obligation the Federal Government has to compensate the Spokanes for these damages. For more than one-half century, the Grand Coulee Project has made an extraordinary contribution to this Nation. It helped pull the economy out of the Great Depression. It provided the electricity that produced aluminum required for airplanes and weapons that ensured our national security. The Project continues to produce enormous revenues for the United States, it is a key component of the agricultural economy in eastern Washington, and plays a pivotal role in the electric systems serving the entire western United States. However, these benefits have come at a direct cost to tribal property that became inundated when the U.S. Government built the Grand Coulee dam. Before dam construction, the free flowing Columbia and Spokane Rivers supported robust and plentiful salmon runs and provided for virtually all of the subsistence needs of the Spokane Tribe. After construction, the Columbia and Spokane rivers flooded tribal communities, schools, and roads, and the remaining stagnant water continues to erode reservation lands today. The legislation that Senators Inouye, Murray, and I introduced in July is similar to Senator Murray's 1994 bipartisan bill codified a settlement and provided perpetual payments to the neighboring Confederated Colville Tribes. To date, the Colville Tribes have received over $180 million in payments for their lands inundated by Lake Roosevelt. This bill builds on the success of that successful settlement by providing the Spokane Tribe of Indians' with compensation that is directly proportional to the settlement afforded the Colville Tribes. Specifically, the Spokane Tribe would receive 39.4 percent of the past and future compensation awarded the Colville Tribes pursuant to the 1994 legislation. This percentage is based on the proportion of tribal lands impacted after the Federal Government built the Grand Coulee Project. S. 1438 also outlines the facts of the Spokane claim and describes how the tribe will use any forthcoming compensation funds. Mr. Chairman, if you will indulge me, I would like to read for the record the findings forwarded by this legislation: From 1927 to 1931, at the direction of Congress, the U.S. Army Corps of Engineers investigated the Columbia River and its tributaries to determine sites at which power could be produced at low cost. The Corps of Engineers identified a number of sites, including the site at which the Grand Coulee Dam is located; and recommended that power development at those sites be performed by local governmental authorities or private utilities under the Federal Power Act. Under section 10(e) of that act, a licensee is required to compensate an Indian tribe for the use of land under the jurisdiction of the Indian tribe. In August 1933, the Columbia Basin Commission, an agency of the State of Washington, received a preliminary permit from the Federal Power Commission for waterpower development at the Grand Coulee site. In the mid-1930's, the Federal Government, which is not subject to the Federal Power Act, Federalized the Grand Coulee Dam project and began construction of the Grand Coulee Dam. At the time at which the Grand Coulee Dam project was Federalized, the Federal Government recognized that the Spokane Tribe and the Confederated Tribes of the Colville Reservation had compensable interests in the Grand Coulee Dam project, including compensation for the development of hydropower; the extinguishment of a salmon fishery on which the Spokane Tribe was almost completely financially dependent; and the inundation of land with loss of potential power sites previously identified by the Spokane Tribe. In the act of June 29, 1940, Congress granted to the United States all rights to Spokane Tribe and Colville Indian Reservations lands that were required for the Grand Coulee Dam project; and various rights-of- way over other land under the jurisdiction of Indian tribes that were required in connection with the project. Additional provisions provided that compensation for the land and rights-of-way was to be determined by the Secretary of the Interior in such amounts as the Secretary determined to be just and equitable. In response to these provisions, the Secretary of the Interior paid to the Spokane Tribe $4,700, and $63,000 to the Confederated Tribes of the Colville Reservation. In 1994, following 43 years of litigation before the Indian Claims Commission, the United States Court of Federal Claims, and the United States Court of Appeals for the Federal Circuit, Congress ratified an agreement between the Confederated Tribes of the Colville Reservation and the United States that provided for damages and annual payments of $15,250,000 in perpetuity, adjusted annually, based on revenues from the sale of electric power from the Grand Coulee Dam project and transmission of that power by the Bonneville Power Administration. In legal opinions issued by the Office of the Solicitor of the Department of the Interior, a Task Force Study conducted from 1976 to 1980 ordered by the Committee on Appropriations of the Senate, and hearings before Congress at the time at which the Confederated Tribes of the Colville Reservation Grand Coulee Dam Settlement Act was enacted, it has repeatedly been recognized that the Spokane Tribe suffered damages similar to those suffered by, and had a case legally comparable to that of, the Confederated Tribes of the Colville Reservation; but that the 5-year statute of limitations under the act of August 13, 1946 precluded the Spokane Tribe from bringing a civil action for damages under that act. The inability of the Spokane Tribe to bring a civil action before the Indian Claims Commission can be attributed to a combination of factors, including the failure of the Bureau of Indian Affairs to carryout its advisory responsibilities in accordance with that act; and an attempt by the Commissioner of Indian Affairs to impose improper requirements on claims attorneys retained by Indian tribes, which caused delays in retention of counsel and full investigation of the potential claims of the Spokane Tribe. As a consequence of construction of the Grand Coulee Dam project, the Spokane Tribe has suffered the loss of the salmon fishery on which the Spokane Tribe was dependent; identified hydropower sites that the Spokane Tribe could have developed; and hydropower revenues that the Spokane Tribe would have received under the Federal Power Act had the project not been Federalized; and continues to lose hydropower revenues that the Federal Government recognized were owed to the Spokane Tribe at the time at which the project was constructed. More than 39 percent of the land owned by Indian tribes or members of Indian tribes that was used for the Grand Coulee Dam project was land of the Spokane Tribe. Mr. Chairman, the United States has a trust responsibility to maintain and protect the integrity of all tribal lands within its borders. When Federal actions physically or economically impact harm, our nation has a legal responsibility to address and compensate the damaged parties. Unfortunately, despite countless efforts, one-half century has passed without justice to the Spokane people. The time has come for the Federal Government to finally meet its fiduciary responsibility for converting the Spokane tribe's resources to its own benefit. I believe that the legislation we are proposing today will catalyze the completion of a fair and equitable settlement and put a closure to these matters. I was pleased to see similar bipartisan legislation introduced earlier this year in the U.S. House of Representatives and I am glad to see that the House bill also received a hearing just this morning. Again, thank you Mr. Chairman for holding this hearing and support this important legislation. I look forward to working with you, the Indian Affairs Committee, our Senate colleagues, and the Spokanes as endeavor to develop a satisfactory and permanent settlement with all parties involved. ______ Prepared Statement of Hon. Patty Murray, U.S. Senator from Washington Good morning, Mr. Chairman, and thank you for this opportunity. I'm proud to introduce to the committee the distinguished chairman of the Spokane Tribal Business Council, Chairman Warren Seyler. He's a leading figure in Washington's tribal communities, and I know his testimony will be of great value to this committee. Before I introduce him, I'd like to share a few ideas about S. 1438. Earlier this year, I joined with Senators Cantwell and Inouye in offering legislation that would finally compensate the Spokane Tribe for its contribution to the hydropower that is generated by the Grand Coulee Dam. Some of you will recall that I introduced similar legislation in the 106th and 107th Congresses. The Grand Coulee Dam is the largest electricity producer in the United States. It provides electricity and water to the Columbia Basin Project, which is one of the world's largest irrigation projects. For more than 60 years, the Grand Coulee has been the backbone of the Northwest's Federal power grid and our agricultural economy. But for the Native peoples of this region, construction of the Grand Coulee Dam came at a very high price. For the Spokane Tribe in particular, it brought an end to a way of life. The Spokane River was once a free-flowing waterway that supported plentiful salmon runs. It became a barren stretch of slack water that now erodes the southern lands of the reservation. In fact, the tribe's reservation has been flooded on two sides. Mr. Chairman, S. 1438 is not the first piece of legislation seeking to compensate a Tribe for losses brought by construction of the Grand Coulee Dam. In 1994, Congress passed similar settlement legislation to compensate the neighboring Confederated Colville Tribes. Since the 1970's, the Congress and Federal agencies have indicated that both the Colville and Spokane Tribes should be compensated for their losses. This legislation will provide a long overdue settlement to the Spokane Tribe. Mr. Chairman, it is now my pleasure to introduce Chairman Seyler to the committee. First elected to the Spokane Tribal Business Council in 1990, Chairman Seyler also serves on the board of the Upper Columbia United Tribes, which is involved in fish and management issues along the Columbia River. He is also active in management issues at Lake Roosevelt, a reservoir created when the Grand Coulee Dam was constructed. Finally, Mr. Chairman, I'd like to offer my condolences to the Spokane Tribe. Last week the tribe--and indeed all of Indian country-- suffered a great loss with the passing of former Chairman Bruce Wynne. Bruce led with his heart and had a remarkable ability to bridge generations. His leadership, knowledge of history, and warm personality will be missed, but his legacy continues in leaders like Chairman Seyler. Thank you. 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