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Drawdown
Table of Contents Chapter 2 The utmost good faith shall always be observed towards the Indians. . . . During the nineteenth century, an array of alien forces challenged the cultural and tribal autonomy of the Hopi and Navajo peoples. Missionaries, folklorists, Anglo-American settlers, and government officials encroached on their land, and while some of that land was eventually "reserved" for the tribes, the Navajo's by treaty in 1868 and the Hopi's by executive order in 1887, a law that allotted tribal property to individual members (who could then convey it to buyers outside the tribe) threatened the integrity of tribal holdings long after the ink was dry.[90] But the history of the current water crisis does not really begin until the twentieth century, when, in 1909, the U.S. government detected coal beneath the Black Mesa plateau.[91] The government's discovery sparked intense interest among mineral companies, which soon conducted their own research in the region. Finding extensive coal, oil, and gas deposits, some of them began pressuring the Bureau of Indian Affairs, the agency charged with protecting tribal lands, for permission to open the Hopi and Navajo reservations to development.[92] The bureau was prepared to comply. A few small mining operations run by Navajos were quickly replaced by larger, non-Indian enterprises.[93] Then, when discovery of oil in the northeastern corner of the reservation drove demand higher still, the bureau -- citing an 1891 law permitting mineral development on Indian lands that were not already committed to farming or agricultural purposes (and were not desired for individual allotments) -- created dubious "general councils" and nonrepresentative "business committees" to rubber-stamp the first oil leases on Navajo property.[94] When some of these general councils started turning leases down, the bureau dismissed them and created new councils with prodevelopment leanings.[95] The first true Navajo tribal council was established in 1923, but only through a scheme that gave the bureau almost complete authority in matters of leasing, perhaps in exchange for promises of government aid.[96] Long distances to major markets and the region's poor transportation system initially hampered mineral mining on the reservation; by the 1930s, however, oil revenue had become important to the tribe's operations.[97] As with the Navajo, the first significant barrier to mineral development on the Hopi section of Black Mesa was the lack of any formal governmental body to negotiate and approve a lease. Ironically, it was the Indian Reorganization Act (IRA) of 1934, a law intended to reduce the exploitation of tribal land, that paved the way. John Collier, commissioner of the bureau under Franklin Roosevelt and a champion of Native American rights, believed that the tribal constitutions called for in the IRA would enable tribes to operate more efficiently in a changing and increasingly exploitative world. Yet the kind of centralized government he envisioned was deeply at odds with Hopi tradition and its respect for the integrity of individual clans. When, after long and acrimonious debate, the tribe was forced to vote on a constitution, the vast majority of its members abstained, a traditional Hopi form of protest. Collier certified the election nonetheless and the Hopi Tribal Council was born.[98] For 20 years the council would be mired in disagreement. The Hopi constitution required religious leaders from the villages, known as Kikmongwi, to approve the council's members, but they routinely refused to do so, and in 1943 the council was forced to disband; the bureau's attempts at reinstatement met with little success.[99] It was an ambitious Salt Lake City lawyer named John C. Boyden, twice candidate for Utah governor, who managed to assemble (through means that have been severely criticized) a new governing body of "progressive" Hopis in 1953. Boyden got the bureau to confirm him as Hopi general counsel, over the objections of local agents, before an official, representative tribal council had been constituted; he then used his authority to pull a small quorum of leaders together -- over the objection of elders and other traditionalists who refused to participate and eventually found themselves shut out.[100] Meanwhile, the postwar boom had created a great demand for electric power, and pressure was mounting to tap the energy resources of the Southwest. Uranium production was becoming big business in the region, Congress was authorizing dams for the Colorado Plateau; Four Corners, the area's first coal-fired power plant, was nearly complete and utility companies were planning to build more.[101] To sign mineral leases for Black Mesa, however, the Hopi and Navajo had to settle a long-standing dispute over property rights. Although the 1882 executive order that established the Hopi reservation was intended to protect Hopi land from encroachments by Mormons and increasing numbers of Navajos, it failed to assign ownership of Black Mesa with sufficient legal clarity.[102] It took 80 years and a federal court decision to resolve the competing claims. In the Healing v. Jones case of 1962, the U.S. District Court of Arizona ruled that minerals in the disputed portion of the Hopi reservation were jointly owned and ordered that royalties received from mining activities be divided equally between the two tribes.[103] For supporters of development, the decision came at precisely the right time. The real draw for Black Mesa coal was the Central Arizona Project (CAP), a massive network of aqueducts, tunnels, pumping plants, and pipelines designed to transport millions of acre-feet of water each year from the Colorado River to arid lands in the American Southwest. Introduced in Congress in the 1940s, CAP was initially controversial. Twenty years passed before Arizona, California, Colorado, and Nevada could settle their political differences and agree to move forward -- and then the project was stalled by public opposition to its plans for the Colorado River, which would have flooded the Grand Canyon with backwater from a hydroelectric dam.[104] Rather than build the dam, Secretary of the Interior Stewart Udall opted to obtain the power needed for CAP by expanding the Mojave coal plant in eastern Nevada.[105] The Mojave plant looked in turn to Black Mesa for its coal. As a result of this new dependence, the Navajo and Hopi were in a position of considerable leverage from which to dictate their lease terms; according to current scholarship, however, the tribes' lawyers failed to secure not only the highly favorable terms that circumstances might have made attainable, but even the standard terms on options and royalties included in public and private mineral leases from the same period.[106] There were no public hearings. Minutes of the Hopi Tribal Council show little discussion of the lease negotiations or the rate of financial return, and apparently no information regarding the magnitude of the operation, its use of water for slurry, or its environmental consequences was provided.[107] Extraordinarily, John Boyden, the Hopi's long-time general counsel, reportedly was representing Peabody on Black Mesa coal and water matters at the same time he represented the Hopi in the lease negotiations -- an apparent conflict of interest that might have worked to the serious disadvantage of the tribe. There is no indication that Boyden ever informed his Hopi clients of his conflict of interest.[108] On June 6, 1966, the Hopi Tribal Council signed a lease for the Black Mesa coal mine, with proceeds to be split evenly between the Hopi and Navajo in accordance with the district court's decision in Healing v. Jones. The lease was rife with inequities. For example, it accorded Peabody rights to 40,000 acres of land for at least ten years, even though federal regulations ordinarily limited coal leases in Indian country to just 2,560 acres.[109] (The purpose of these regulations was to reduce the possibility of environmental exploitation, to ensure that tribes wishing to develop their resources could proceed in a way that "minimizes any adverse environmental impacts or cultural impacts resulting from such development.")[110] And for each acre-foot of groundwater, Peabody was to pay the tribe a mere $1.67 -- a rate that one prominent scholar has called "laughable."[111] Perhaps the most remarkable component of the Peabody lease is the escape clause inserted by Secretary Udall. In an effort to assuage his concerns about the use of potable water for a coal-slurry pipeline, Udall added an option enabling future secretaries of the Interior to end Peabody's groundwater mining. Should the secretary determine "at any time" that Peabody's pumping "is endangering the supply of underground water," he may compel the company to "obtain water for its mining and pipeline operations from another source that will not significantly affect the supply of underground water in the vicinity," or to "provide water in quantity and of quality equal to that formerly available."[112] (See sidebar below, "Secretary Udall and the Black Mesa Lease.") Despite growing evidence that Peabody's pumping is contributing to the water problems on Black Mesa, no Interior secretary has exercised his contractual authority. In 1987 the lease was renegotiated, providing some remedy for the economic injustice the Hopi and Navajo had suffered. Under the new arrangement, the tribes began to receive a standard royalty of 12.5 percent (which they continue to divide), nearly doubling the proceeds that the Hopi, for their part, had gained before; in ten years they would be able to reopen negotiations in the hope of driving the rate upwards.[114] Today, annual revenues from the Black Mesa mine amount to between $10 and $20 million for each tribe, which, together with the salaries of its Navajo and Hopi employees, make Peabody a principal source of income in an otherwise underdeveloped economy.[115] But the new lease did nothing to remedy the environmental impact that Peabody's operations have caused, nothing to lift the disproportionate burden of risk that the tribes have been compelled to bear.[116] The U.S. government, meanwhile, has an historic duty to fulfill. THE TRUST RESPONSIBILITYFrom the early nineteenth century, American law has embraced the concept that the federal government owes a unique duty to Native Americans. The existence of such a duty was first articulated by John Marshall, Chief Justice of the Supreme Court, in the seminal 1831 case Cherokee Nation v. Georgia.[117] Marshall described the relationship between the various Native American tribes and the federal government as "perhaps unlike that of any two other peoples in existence, . . . [m]arked by peculiar and cardinal distinctions which exist nowhere else." To Marshall, the tribes were nothing less (and nothing more) than "domestic dependent nations." "Their relation to the United States," he concluded, "resembles that of a ward to his guardian."[118] Marshall's characterization of the tribes will justifiably strike modern ears as paternalistic and condescending.[119] By nineteenth-century standards, however, it was enlightened, holding as basic legal principle that the federal government must safeguard the interests of the sovereign peoples it absorbed in its expansion westward. Unfortunately, as the tribes were pushed onto reservations and into poverty over subsequent decades, Marshall's characterization of the tribes as dependent nations became increasingly accurate and the government's duty -- its trust responsibility -- grew by necessity in scope and importance. When the Supreme Court wrote of the government's trust responsibilities in 1886, there was a grim reality behind its words. "These Indian tribes," the Court observed, are the wards of the nation. They are communities dependent on the United States -- dependent largely for their daily food; dependent for their political rights. They owe no allegiance to the states, and receive from them no protection. Because of the local ill feeling, the people of the states where they are found are often their deadliest enemies. From their very weakness and helplessness, so largely due to the course of dealing of the federal government with them, and the treaties in which it has been promised, there arises the duty of protection, and with it the power. This has always been recognized by the executive, and by congress, and by this court, whenever the question has arisen.[120]
Modern courts have recognized that the general duty articulated by Marshall and his brethren obligates the federal government to consider and protect tribal interests in many different contexts, but especially when the government exercises control over the use of natural resources on tribal lands. The specific trust duty owed to tribes by the federal government in such circumstances rises to the level of a fiduciary duty -- a duty similar to what lawyers owe their clients, executives their shareholders, and trustees their beneficiaries. In a typical case from 1983, the Supreme Court held that the federal government could be sued for violating its fiduciary duty and be liable for monetary damages after it mismanaged timber resources belonging to the Quinault Tribe.[121] Justice Thurgood Marshall, writing for the Court, found that "a fiduciary relationship [between the tribe and the federal government] necessarily arises when the government assumes such elaborate control over forests and property belonging to Indians."[122] Other courts have held the government liable for failing to properly manage a reservation's oil and gas or mineral resources, much as the Interior Department has done with the Black Mesa and Kayenta mines.[123] The government's fiduciary duty in such cases arises out of a network of statutes, including the Indian Long-Term Leasing Act, the Mineral Leasing Act, and the Indian Mineral Development Act.[124] In each of these statutes, the government reserves to itself ultimate supervisory authority over the extraction of oil, gas, and minerals from tribal lands. The Indian Mineral Development Act, for example, specifically instructs the secretary of Interior to veto mineral lease agreements that are not in a tribe's best interests, taking into account (among other things) "the potential environmental, social, and cultural effects on the tribe."[125] Together and singly, the laws of mineral leasing vest the Interior Department with broad control over Native American resources -- and with control comes responsibility.[126] The fiduciary duty we have described has been found applicable to Native American water rights as well. Thirty years ago, in Pyramid Lake Paiute Tribe v. Morton, the U.S. District Court for the District of Columbia enjoined the diversion of water from Pyramid Lake, which is located on the Paiute reservation in Utah, by an upstream dam.[127] Diversions had diminished the value of the lake to the tribe by raising its salinity and preventing fish from returning there to spawn -- and yet, rather than protect the tribe's historic interests, the secretary of the Interior tried to achieve an "accommodation" between the tribe and the federal agency that constructed and operated the dam.[128] According to the court, the secretary's actions must be held against a high bar: "The United States, acting through the Secretary of the Interior, has charged itself with moral obligations of the highest responsibility and trust. Its conduct . . . should therefore be judged by the most exacting fiduciary standards."[129] Although the Pyramid Lake case was about surface water, a recent decision from the Arizona Supreme Court indicates why applying its conclusions to groundwater is essential to the future of tribes in the Southwest. "[S]ome reservations lack perennial streams and depend for present or future survival substantially or entirely upon pumping of underground water. We find it no more thinkable in the latter circumstance [dependence on groundwater] than in the former [dependence on surface water] that the United States reserved land for habitation without reserving the water necessary to sustain life."[130] The general trust duty owed to the Navajo and Hopi and the specific fiduciary obligation established under the Indian Mineral Development Act are reflected in the terms of Peabody's lease, which gives the Interior Department (in the person of its secretary) ultimate authority over the Black Mesa and Kayenta mines. Interior has the right to end Peabody's ancillary pumping of the N-aquifer if it determines that pumping is "endangering the supply of underground water in the vicinity or so lowering the water table that other users of such water are being damaged."[131] As we will see in the next chapter, the agency has taken some steps to move the parties toward settlement, but progress has come slowly; in the meantime, Peabody has been allowed to operate on the basis of an interim permit, without having to guarantee the cost of reclamation for its coal mining activities as regulations would otherwise require.[132] If Peabody's operations have contributed to the decline of the N-aquifer system -- and the company's status as principal user all but compels a fiduciary to make that assumption -- then Interior's failure to protect the Hopi and Navajo's drinking water constitutes a breach of both its general and specific trust duties. (In any event, Interior's duties compel it to upgrade its monitoring and assessment programs.) Courts have rigorously enforced these duties when a tribe's natural resources are threatened.[133] The federal trust responsibility is not the only law or legal doctrine compelling the Interior Department to take a stronger stand and keep Peabody from depleting the N-aquifer under an indefinite interim permit. Action is demanded by the Surface Mining and Control Act, which requires the government to either "grant, require modification of, or deny the application of a permit" in a "reasonable time," and the Administrative Procedure Act, which more generally requires it to take administrative action within a reasonable period of time.[134] A number of federal environmental statutes including the Clean Water Act and Safe Drinking Water Act, which were amended in the 1980s and early 1990s to give tribes additional responsibility, may also apply. Also weighing on the government are national and international laws and policies that protect Native American religious sites, such as the sacred springs on Black Mesa, from degradation. In 1978, Congress passed the American Indian Religious Freedom Act (AIRFA), making it "the policy of the United States to protect and preserve for American Indians their inherent right of freedom to believe, express, and exercise the traditional religions of the American Indian . . . including but not limited to access to sites, use and possession of sacred objects, and the freedom to worship through ceremonies and traditional rites."[140] In 1996, President Clinton used an executive order to strengthen the law. In order to "protect and preserve Indian religious practices," he ordered all federal agencies to avoid adversely affecting the physical integrity of sacred sites.[141] By continuing to allow Peabody to deplete the supply of water to Black Mesa's springs, Interior is adversely affecting their physical integrity, thus threatening the Hopi's religious practices contrary to AIRFA and President Clinton's executive order. International principles further strengthen the case for the agency's intervention. Recognizing the value of water resources to indigenous society, culture and religion, the United Nations Draft Declaration on the Rights of Indigenous Peoples asserts their "right to maintain and strengthen their distinctive spiritual and material relationship with the lands, territories, [and] waters . . . which they have traditionally owned or otherwise occupied or used, and to uphold their responsibilities to future generations in this regard."[142] If overpumping the Hopi springs, the Hopi's traditional relationship with these springs will be broken, and their ability to practice and pass on essential elements of their religion compromised. The Hopi may be denied their fundamental right to "manifest [their] religion or belief in worship, observance, [and] practice," guaranteed them by the International Covenant of Civil and Political Rights, which the United States recently ratified.[143] The United States is in a unique position to safeguard the water supply of the Hopi and Navajo peoples. Sound public policy as well as trust responsibility and fiduciary duty require that the government act decisively to protect the N-aquifer and the sacred springs it feeds.
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