Statement of Administration Policy: S. 291 - San Carlos Apache Indian Water Rights Settlement

(Senate)
(McCain (R) Arizona)

The Administration strongly opposes Senate passage of S. 291 as reported by the Select Committee on Indian Affairs, unless the Senate amends the bill to:

—   extend the period during which the Department of the Interior will make payments into the San Carlos Indian Tribe's Development Trust Fund;

—   waive certain potential monetary claims that could arise from past Indian water rights settlements; and

—   make consistent with Federal policy or statute the provisions regarding (1) the discharge of the remaining debt of the Elgo Dam on the San Carlos Apache Indian Reservation, (2) the investment of the principal and interest from the Development Trust Fund, and (3) the credit towards the reimbursable costs of the Central Arizona Project (CAP) .

Specifically, the Administration urges the Senate to extend the appropriation authorization period for the San Carlos Tribe's Development Trust Fund from two annual payments to five, evenly distributed annual payments, beginning in FY 1994. Otherwise, payment to the San Carlos settlement could adversely affect funding for services to tribes nationwide.

The Administration recommends that the Senate amend the bill to waive certain monetary claims that could arise from past Indian water rights settlements in Arizona. These alleged claims could undermine the security of past settlement arrangements.

The Administration urges the Senate to amend Section 7, to discharge all remaining repayment obligations due the United States relating to the construction of the Elgo Dam, and to direct that the investment of the principal and interest from the San Carlos Tribe's Development Fund be invested in U.S. Treasury securities.

The Administration also urges the Senate to amend Section 10 to provide that, if certain lands are exchanged for CAP lands, the fair market value of those lands will be credited to the Central Arizona Water Conservancy District's existing balances.

Finally, the Administration is reviewing the advisability of the construction of a new Central Arizona Project facility. The construction costs for this facility are estimated at not less than $47 million, or approximately $13,500 per acre, as compared to $2,500 per acre for current development on Indian lands. The Federal responsibility toward the San Carlos Tribe may be adequately discharged by the Federal contribution of $55 million to the settlement.