New Opportunities for Energy Development on Indian Reservations

Indian tribes own a substantial portion of the West's minerals. More importantly, Indian reservations contain coal, oil and gas, uranium, and oil shale reserves in unusually large and unencumbered blocks. Many tribes are now prepared to intensify development of their large reserves knowing that they can offer energy partners the unique opportunity to develop major energy facilities free of overlapping local, state, and federal permitting authorities. The tribes, therefore, can offer mineral developers both substantial reserves and an unusual degree of freedom from a multiplicity of government regulation. In the past, Indians and energy companies enjoyed only partial success as business partners. Indian tribes lacked the resources and know-how to act as equal partners with large oil and gas and mining operators. The tribes relied on the Bureau of Indian Affairs (BIA) to initiate and execute reservation energy projects, and as a result the tribes never developed adequate tribal structures and the expertise to responsibly manage their energy resources. At the same time industry made little effort to understand and learn the laws, customs, and institutions existing on Indian reservations. To the contrary, industry found it easier to bypass the tribes and deal with BIA officials. But the situation has changed. In 1975 the tribes organized an effective coalition, the Council of Energy Resources Tribes (CERT), which recently acquired substantial federal assistance to bring the tribes a level of technical and business expertise that begins to equal that of industry. Because the tribes have changed the rules of the game, industry must now change and learn to work directly with tribal governments. A working knowledge of Indian law, practices, customs, and policies must be acquired by energy companies before beginning negotiations with tribal governments for development of reservation energy resources.