ligation. Negotiations centered on the possibility that the State could meet its obligations with the assistance of a zero interest loan. As the State had already received two such Federal loans before, this seemed to be a sensible approach.

Based upon assurances and statements from the Federal negotiating team, the State incorporated the loan provision into the legislation. That compact was signed by the State, the tribal negotiators, the Governor of the State of Montana, and before adjourning, ratified by the State Legislature. However, when the agreement was presented to the Department of Interior, doors were slammed shut.

Mr. Chairman, this bill represents a new beginning for both the State of Montana and the Northern Cheyenne. They have produced an agreement that does great credit to both. In fact, a new spirit of trust and mutual respect reflected by the compact might be one of its lasting achievements.

So as you consider S. 1607, I would ask you to understand what the consequences are if this water compact is not ratified. If you do not pass this bill, only a few possibilities could happen, and they are not good. The longer we delay, the greater the likelihood that nature will conspire against us and we could lose the Tongue River Dam. The resulting loss of life and property would be devastating. We cannot wait.

In addition, a major rewriting of this compact would required the agreement of the Montana Legislature. In our State of Montana, our Legislature will not reconvene for more than a year. We have biannual sessions. We do not meet every year. Having been led to believe that there was an agreement as to how this compact was to be financed, I have very real doubts that the financial situation of the State of Montana would permit it to accept the additional burdens requested by the Federal Government. The State has done the best it could. In Montana, a deal is a deal.

When the Federal Government testifies in opposition, I would ask this committee to satisfy itself as to the origins and provisions in the compact that they can test. In the end, I believe you will conclude as I have, that the protests are being driven solely by mid-level budget bureaucrats without any understanding of the larger issues at stake.

In conclusion, I would ask the committee to join Senator Burns, Senator McCain, and myself to help the Northern Cheyenne reach out and secure their future. This compact leads to the economic promise and stability they so desire. Now is the time. We should not and we cannot delay any longer.

My only comment, as former Chairman of the Foreign Operations Appropriations Subcommittee, is that I am well aware of the billions of dollars of loans we have made throughout this world with zero interest, concessionary loans. If we can do that for Pakistan, for India, for Greece, for Turkey, then by God we can do that for Montana.

Thank you, Mr. Chairman.

The CHAIRMAN. It is now my pleasure to call upon my colleague, the author of this bill, the catalyst that brings us all together, Sen

STATEMENT OF HON. CONRAD BURNS, U.S. SENATOR FROM

MONTANA

Senator BURNS. Thank you, Mr. Chairman. I thank you and the other Members of the Select Committee on Indian Affairs. I know that without your effort this would not have happened today. We are very appreciative of that.

I want to especially thank the ranking Republican on this committee, Senator McCain, who is one of the original cosponsors of S. 1607. My colleague, Senator Baucus, and I have been working on the Tongue River settlement since Governor Stephens identified it as the State's top water priority. I think it would be fair to say that S. 1607, the bill before us today, represents a consensus agreement on the part of virtually everyone involved. Reaching that consensus, however, has been a rocky road for everyone involved.

The Federal Government, although they will testify in opposition, will tell you in private that they were an intricate part of the water rights settlement that is embodied in S. 1607. In fact, several provisions of the bill are here as a direct result of advice and guidance offered by the Federal negotiating team. The State, the compact commission, and the Northern Cheyenne Tribe jumped through every hoop put up by the Federal Government. In a very real sense, S. 1607 is in the form that it is because of the Federal Government. I urge the committee to remember that fact when weighing the Federal testimony that will be offered here today.

This bill marks a significant step forward for both the Northern Cheyenne and the Crow Tribes that occupy adjacent lands in Southeast Montana. S. 1607 represents the settlement of longstanding Federal water rights claims for the Northern Cheyenne. By raising the existing State dam some 4 feet, all of the additional water will be used to satisfy that claim. An additional allocation of water from the unallocated water entrapped behind Yellow Tail Dam will be used to satisfy the Northern Cheyenne water rights along the Rosebud also within the Reservation.

In addition to the hard work of Chairman Edwin Dahle of the Northern Cheyenne Tribe, recognition should be given to Clara Nomee, Chairperson of the Crow Tribe. Disagreement between the two tribes have effectively killed progress on this settlement in the past. That did not happen this time. The two tribes are cooperating. And as a result progress can be made not only on this but on other matters of importance to Clara and the Crow people. She is an effective leader of her people and this agreement is evidence of that leadership.

The Governor of Montana, Stan Stephens, the Montana Legislature, and the Montana Reserve Water Rights Commission now under the very able leadership of Joe Mazurek have also worked mightily to move this process forward. The State of Montana has contributed and will contribute more actual dollar funds—real dollars at a time when dollars are tight-than most other States have contributed to similar settlements. The State is doing all the things necessary to make the settlement work.

The obligation is not the State of Montana's. The State does not owe the Northern Cheyenne its water. That obligation belongs to the Federal Government. The State does own the Tongue River

Dam located near the Northern Cheyenne Reservation. By raising the level of a State-owned dam, the Federal Government can meet its Federal obligation to the Northern Cheyenne people. The State is a facilitator in this process. What the State gains is a safer dam. The Tongue River Dam is in danger of collapse. As an urban dam, the ground around the spillway is eroded and is in danger of giving way. The Corp and the Bureau of Reclamation has identified the dam as structurally in need of repair. The State could do those repairs and, absent the provisions of S. 1607, would probably proceed with a more modest repair of shoring up around the spillway. Such repair would not entrap any additional water.

The Federal obligation on the Northern Cheyenne remains if the dam is repaired without raising the level. The water would have to come from somewhere and an alternate solution would be, in all probability, at a greater Federal cost than the solution proposed in S. 1607. That probably would not be at a State's contribution as an offset to the Federal obligation.

We should seize the moment and settle the water claims for the Northern Cheyenne people that could be a model for the Nation. We should do it in partnership with the State of Montana.

Mr. Chairman, again, I thank you for these hearings and appreciate your efforts in our regard. Thank you very much.

The CHAIRMAN. Thank you very much, Senator. Would you care to join the committee here?

Senator BURNS. Thank you very much. I would like to do so.

Senator BAUCUs. All of us are involved in lots of meetings with our constituents and various groups around the country and around the world. I wish you could have been in my office yesterday when the parties were all together. I cannot remember a time when people were so giddy with enthusiasm and joy that they had reached an agreement and see the light at the end of the tunnel. I so desperately hope that we don't let a narrow interest in the Federal Government defeat this proposal and destroy that optimism and that sense of accomplishment where groups in our State have worked together.

We must do all we can to allow groups to reach agreement as these groups have. It is a very good agreement. I know the committee will help make that happen.

The CHAIRMAN. Although I was not there, I have been fully briefed on what happened there, and I am sorry I missed the lovefest. [Laughter.]

Senator BAUCUS. I won't comment on that, but it was a good meeting.

The CHAIRMAN. It is a banner day for the Crow and the Northern Cheyenne. As you have indicated, I think this is the beginning of a new age for all of us.

Senator BAUCus. Thank you, Mr. Chairman.

The CHAIRMAN. I have received a statement from Congressman Marlenee. Without objection, that statement will be made a part of the record.

[Prepared statement of Mr. Marlenee appears in appendix.]

The CHAIRMAN. I have been advised that the statement by Senator John McCain has also been received. That statement will also

[Prepared statement of Senator McCain appears in appendix.] The CHAIRMAN. The statement by Congressman Williams will be personally submitted by the chairperson of the Crow.

It is now my great privilege to call upon Timothy Glidden, the counsel to the Secretary of the Department of the Interior.

Mr. Glidden is an old friend of this committee. We have worked on many, many projects together very successfully. As I tried to indicate, this committee was looking forward to a time of great joy when the State of Montana, the Montana delegation, the Crow, the Northern Cheyenne, and the Federal Government were all in the same boat, but now I gather that something has happened in the last 24 to 48 hours. I call upon Mr. Glidden to tell us what happened.

STATEMENT OF TIMOTHY GLIDDEN, COUNSEL TO THE SECRETARY, DEPARTMENT OF THE INTERIOR, WASHINGTON, DC Mr. GLIDDEN. Thank you, Mr. Chairman. I have asked members of the negotiating team to join me here at the witness table, if that's fine with you.

The CHAIRMAN. That is fine, sir.

Mr. GLIDDEN. I have a prepared statement, Mr. Chairman. I assume you've already seen that. If you would like, I can read through it, or

The CHAIRMAN. No; without objection, that statement will be made a part of the record. You may summarize if you wish, sir.

Mr. GLIDDEN. Thank you, Mr. Chairman. Perhaps I will summarize and skip through it to hit the high points.

Mr. Chairman and members of the committee, I am pleased to be here today to discuss S. 1607, a bill to provide for the settlement of the water rights claims of the Northern Cheyenne Tribe. While we support a negotiated settlement of the Northern Cheyenne water rights claims, we strongly oppose enactment of S. 1607, as written. The bill would provide for confirmation and ratification of the Water Rights Compact between the Northern Cheyenne Tribe, the State, and the United States. The United States has not yet approved this compact.

The compact and the bill would quantify the tribe's water rights by providing 91,330 acre feet of water including 27,500 acre feet from water stored behind the Tongue River Dam, 30,000 acre feet of water from Big Horn Reservoir, and 33,830 feet of water from surface flows and groundwater. The bill would also authorize $3.6 million for Fish and Wildlife. Finally, the bill would establish a tribal development fund that would assist the tribe in developing its water resources.

In evaluating the Federal contribution to individual settlements, the United States considers both the Federal legal obligation and the trust responsibility for tribes. We also assess the proposed financial and in-kind contributions by the other parties to the settlement with respect to their legal liability and the benefits received from a settlement. We therefore must ensure that all parties contribute an equitable share to the settlement.

We do not believe this would be the case under S. 1607 as written. Under the bill, the Federal Government would pay a total of

about $40 million related to construction of the Tongue River Dam and another $21.5 million for an Economic Development Trust Fund for the tribe, of which $11.5 million would be used to provide a no interest loan to the State of Montana. The State would pay a direct contribution of $5 million in cash and $4.2 million in in-kind services.

In December 1990, the State of Montana requested the United States to provide a no interest loan of $11.5 million to assist in the State's contribution to the construction of the Tongue River Dam. Such a loan would increase the cost to the United States an additional $8 million, representing a substantial and unacceptable increase in the Federal cost of the settlement beyond the level the Administration could accept as a reasonable Federal taxpayer contribution given the United States legal and trust responsibilities.

Accordingly, the State's request at that time in 1990 was denied. S. 1607 contains a provision that would circumvent the Administration's objection to increasing the Federal Government's contribution to the settlement.

At this point, let me interject that this provision was never agreed to. This provision was never discussed. It was never even brought up during the many months of negotiations that took place. This bill would increase the tribal development fund from the original $10 million to $21.5 million.

That particular provision, Mr. Chairman, was never part of the negotiations, it was never agreed to, it was never proposed, and it was never discussed. This is something that has appeared in this bill after the State and the tribe decided to present legislation to Congress to be introduced.

The bill then directs the tribe-mind you, the tribe-to loan the State $11.5 million interest free. The effect of this change would be to increase the Federal contribution to the settlement by $11.5 million or approximately 25 percent. We did not agree to such a sum, nor to such a procedure to provide funding to the State. We most strenuously object to this element of the settlement as it would set a precedent and initiate a new program of Federal subsidy to repair non-Federal dams.

There are thousands of non-Federal dams throughout the Nation. Beginning such a program could lead to billions of dollars_in demand for similar treatment by other States. Moreover, the Department of the Interior alone is responsible for the evaluation and modification, if warranted, of approximately 400 high hazard Federal dams.

These dams are expected to cost several hundred million dollars to repair or modify. There is insufficient Federal funding for repair of non-Federal dams, such as Tongue River, utilizing Federal appropriations for direct contributions, financial assistance, or through any other means except reimbursable technical assistance. Let me say at this point, Mr. Chairman, that is the nub of the issue here. We are faced with a bill which contains a provision that would start an avalanche of State requests for Federal assistance to repair non-Federal dams which have been deemed to be high hazard dams.

[Prepared statement of Mr. Glidden appears in appendix.]