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B-177079 1 (1974-01-29)

handle is hein.gao/gaobaaefr0001 and id is 1 raw text is: R~~sCTat b e relesC o L -UGA RM GENERAL OF THE UNITED STATES WASHINGTON, D.C. 205 .. RELEASED 0 JAh 2 b 1974 B-177079 T--he Honorable Henry M. Jackson, Chairman ? Committee on Interior and Insular Affairs United States Senate Dear Mr. Chairman: During hearings before your Committee in 1971, pursuant to Senate Resolution 45 which authorized investigation into the national fuels and 7' energy policy, Navajo and Hopi Indian tribal members and others ques- tioned the equity of utility and coal companies' payments for mining coal on tribal lands. In a June 1972 report on problems of electrical power production in the Southwest, the Committee recommended that the Comptroller General be requested to review provisions of Navajo and Hopi coal leases and to report to the Congress on his analysis of the comparison of royalties and other payments to the tribes with payments received on public lands and elsewhere for similar types of contracts. In your February 20, 1973, letter, you requested that we review these leases and compare the revenues and royalties being received by the Navajo and Hopi Tribes with the revenues and royalties being re- ceived by the Federal Government from similar coal leases issued during the same period and, to the extent feasible, with revenues being received from mining on State and private lands. You suggested that we consider such factors as coal quality, mining ease, transportation and mining costs, and required land reclamation work. We reviewed and evaluated the provisions of 1 Hopi and 5 Navajo coal-mining leases on tribal lands in Arizona and New Mexico; 61 coal- mining leases on Federal lands in Colorado, New Mexico, and Utah; 25 coal-mining leases on State lands in Colorado, New Mexico, and Utah; and 14 coal-mining leases on private lands in Colorado, Montana, New Mexico, and Wyoming. We also interviewed appropriate Federal, State, tribal, and coal-mining-company officials. We made our review at the Navajo Tribal Headquarters and Bureau of Indian Affairs (BIA) Area Office, Window Rock, Arizona; the Hopi Tribal Headquarters and BIA Agency Office, Keams Canyon, Arizona; the BIA Area Office, Phoenix, Arizona; the U.S. Geological Survey (USGS) State offices and State land resources agency offices in Arizona, Colorado, New Mexico, and Utah; and the offices of two coal-mining companies. We reviewed the provisions of the Navajo and Hopi coal-mining leases and compared the revenue provisions of these leases with the revenue provisions of similar Federal, State, and private leases issued during the same period. The revenue provisions of the Indian leases, except the first lease, are generally as good as, or better than, the revenue provisions of the non-Indian leases.

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