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entitled 'Indian Issues: Analysis of the Crow Creek Sioux and Lower 
Brule Sioux Tribes' Additional Compensation Claims' which was released 
on May 19, 2006. 

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Report to the Chairman, Committee on Indian Affairs, U.S. Senate: 

May 2006: 

INDIAN ISSUES: 

Analysis of the Crow Creek Sioux and Lower Brule Sioux Tribes' 
Additional Compensation Claims: 

GAO-06-517: 

GAO Highlights: 

Highlights of GAO-06-517, a report to the Chairman, Committee on Indian 
Affairs, U.S. Senate. 

Why GAO Did This Study: 

From 1946 to 1966, the government constructed the Fort Randall and Big 
Bend Dams as flood control projects on the Missouri River in South 
Dakota. The reservoirs created behind the dams flooded about 38,000 
acres of the Crow Creek and Lower Brule Indian reservations. The tribes 
received compensation when the dams were built and additional 
compensation in the 1990s. The tribes are seeking a third round of 
compensation based on a consultant’s analysis. 

The Congress provided additional compensation to other tribes after two 
prior GAO reports. For those reports, GAO found that one recommended 
approach to providing additional compensation would be to calculate the 
difference between the tribe’s final asking price and the amount that 
was appropriated by the Congress, and then to adjust it using the 
inflation rate and an interest rate to reflect a range of current 
values. 

GAO was asked to assess whether the tribes’ consultant followed the 
approach used in GAO’s prior reports. The additional compensation 
amounts calculated by the tribes’ consultant are contained in H.R. 109 
and S. 374. 

What GAO Found: 

The tribes’ consultant differed from the approach used in prior GAO 
reports by (1) not using the tribes’ final asking prices as the 
starting point of the analysis and (2) not providing a range of 
additional compensation. First, in calculating additional compensation 
amounts, GAO used the tribes’ final asking prices, recognizing that 
their final settlement position should be the most complete and 
realistic. In contrast, the consultant used selected figures from a 
variety of tribal settlement proposals. For example, for the 
rehabilitation component of the tribes’ settlement proposals, the 
consultant used $13.1 million from proposals in 1957, rather than $6.7 
million from the tribes’ final rehabilitation proposals in 1961. 
Second, the tribes’ consultant calculated only the highest additional 
compensation dollar value rather than providing the Congress with a 
range of possible additional compensation based on different adjustment 
factors, as in the earlier GAO reports. 

Based on calculations using the tribes’ final asking prices, GAO’s 
estimated range of additional compensation is generally comparable with 
what the tribes were authorized in the 1990s (see figure below). By 
contrast, the consultant estimated about $106 million and $186 million 
for Crow Creek and Lower Brule, respectively (in 2003 dollars). There 
are two primary reasons for this difference. First, GAO used the 
tribes’ final rehabilitation proposals from 1961, rather than the 1957 
proposals used by the consultant. Second, GAO’s dollar amounts were 
adjusted only through 1996 and 1997 to compare them directly with what 
the tribes received at that time. The consultant, however, adjusted for 
interest earned through 2003, before comparing it with the payments 
authorized in the 1990s. 

The additional compensation already authorized for the tribes in the 
1990s is consistent with the additional compensation authorized for 
other tribes on the Missouri River. GAO’s analysis does not support the 
additional compensation amounts contained in H.R. 109 and S. 374. 

Figure: GAO’s Estimated Range of Additional Compensation Versus the 
Additional Compensation the Tribes Were Authorized in the 1990s. 

[See PDF for Image] 

[End of Figure] 

What GAO Recommends: 

GAO is not making any recommendations. The tribes’ consultant commented 
that he disagreed with our reliance on the tribes’ final asking prices. 
GAO believes its approach is reasonable. 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-06-517]. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Robin M. Nazzaro at (202) 
512-3841 or nazzaror@gao.gov. 

[End of Section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

Consultant's Compensation Analysis Differs from the Approach GAO 
Previously Used for Other Tribes: 

Amounts Calculated by GAO Are Similar to the Amounts Received by the 
Tribes in the 1990s: 

Observations: 

Consultant's Comments and Our Evaluation: 

Appendixes: 

Appendix I: Scope and Methodology: 

Appendix II: Map of Tribes and Dams on the Missouri River: 

Appendix III: Timeline of Settlement Negotiations and Compensation for 
the Crow Creek Sioux Tribe: 

Appendix IV: Timeline of Settlement Negotiations and Compensation for 
the Lower Brule Sioux Tribe: 

Appendix V: Comments from the Tribes' Consultant: 

GAO Comments: 

Appendix VI: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: Acreage Lost and Families Displaced by the Fort Randall and 
Big Bend Dams: 

Table 2: Selected Settlement Proposals for the Fort Randall Dam: 

Table 3: Selected Settlement Proposals for the Big Bend Dam: 

Table 4: Additional Compensation Authorized by Congress for Tribes on 
the Missouri River: 

Table 5: Comparison of the Settlement Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices for the Fort Randall 
Dam: 

Table 6: Comparison of the Settlement Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices for the Big Bend Dam: 

Table 7: Comparison of Rehabilitation Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices: 

Table 8: Rehabilitation Payments Authorized by Congress for Tribes on 
the Missouri River: 

Table 9: Estimate of Additional Compensation Range for the Crow Creek 
Sioux Tribe: 

Table 10: Estimate of Additional Compensation Range for the Lower Brule 
Sioux Tribe: 

Figures: 

Figure 1: The Fort Randall Dam and Lake Case (February 2006): 

Figure 2: The Big Bend Dam and Lake Sharpe (July 1998): 

Abbreviations: 

MRBI: Missouri River Basin Investigations Unit: 

Letter: 
May 19, 2006: 

The Honorable John McCain: 
Chairman, Committee on Indian Affairs: 
United States Senate: 

Dear Mr. Chairman: 

During a 20-year period, from 1946 to 1966, the federal government 
constructed the Fort Randall and Big Bend Dams as flood control 
projects on the Missouri River in South Dakota. Installation of the 
dams caused the permanent flooding of approximately 38,000 acres of the 
Crow Creek Sioux and Lower Brule Sioux Indian reservations. During the 
construction of the two dams, the tribes entered into negotiations with 
the federal government for compensation for their land that would be 
flooded by the reservoirs created by the dams. The settlement 
negotiations for the Fort Randall Dam stretched over several years, and 
the tribes put forward a number of different settlement proposals. The 
settlement negotiations for the Big Bend Dam were conducted in a much 
shorter time frame, but there still were a number of settlement 
proposals and counterproposals. In both cases, the tribes and the 
federal government were unable to reach a negotiated settlement, and 
the Congress stepped in and imposed a legislative settlement. For both 
dams, the legislative settlements to the tribes were less than the 
amounts that they requested. 

The settlement processes for the two dams spanned several decades-- 
beginning in 1958, when the Congress authorized the payment of $2.6 
million to the two tribes for damages and administrative expenses 
related to the Fort Randall Dam.[Footnote 1] Regarding the Big Bend 
Dam, in 1962, the Congress authorized the payment of about $7.7 million 
to the two tribes for damages, rehabilitation (funds for improving the 
Indians' standard of living), and related administrative 
expenses.[Footnote 2] However, the tribes did not consider the 
compensation they received in 1958 and 1962 to be sufficient, and they 
sought additional compensation to address the effects of both dams. As 
a result, in 1996 and 1997, the Congress authorized the Crow Creek 
Sioux and Lower Brule Sioux tribes additional compensation of $27.5 
million and $39.3 million, respectively, through the establishment of 
development trust funds for each tribe.[Footnote 3] 

In addition to the Crow Creek Sioux and Lower Brule Sioux tribes, other 
Indian tribes in North and South Dakota also (1) lost land to flood 
control projects on the Missouri River, (2) received compensation for 
damages in the mid-1900s, and (3) requested and received additional 
compensation in the 1990s or early 2000s. In 1992, 2000, and 2002, the 
Congress authorized the payment of additional compensation, through the 
establishment of development trust funds, to Indian tribes at five 
other reservations for damages suffered from dam projects along the 
Missouri River.[Footnote 4] Prior to the Congress authorizing 
additional compensation to Indian tribes at three--Fort Berthold, 
Standing Rock, and Cheyenne River--of these five other reservations, we 
were asked to review their additional compensation claims. In 1991, we 
reported on the additional compensation claims for the Three Affiliated 
Tribes of the Fort Berthold Reservation and the Standing Rock Sioux 
tribe, and, in 1998, we reported on the additional compensation claims 
for the Cheyenne River Sioux tribe.[Footnote 5] For the tribes at these 
three reservations, we found the economic analyses used to justify 
their additional compensation claims to be unreliable, and we suggested 
that the Congress not rely on them as a basis for providing the tribes 
with additional compensation. 

As an alternative, we suggested that if the Congress determined that 
additional compensation was warranted, it could determine the amount of 
compensation by calculating the difference between the tribe's final 
settlement proposal (referred to in this report as the tribe's "final 
asking price") and the amount of compensation the Congress originally 
authorized the tribes. We used the inflation rate and an interest rate 
to adjust the difference to reflect a range of current values, using 
the inflation rate for the lower end of the range and the interest rate 
for the higher end. Using this approach, we calculated how much 
additional compensation it would take today to make up for the 
difference between the tribes' final asking prices and the original 
compensation provided. The Congress authorized additional compensation 
to the tribes of the Fort Berthold, Standing Rock, and Cheyenne River 
Indian reservations that was within our suggested range of additional 
compensation for each tribe. 

We were not asked by the Congress to review the additional compensation 
claims for the Crow Creek Sioux and Lower Brule Sioux tribes in the 
1990s. The Crow Creek Sioux and Lower Brule Sioux tribes did not base 
their additional compensation claims in the 1990s on an economic 
analysis as the tribes did for the three other reservations that we 
reviewed. Rather, the Crow Creek Sioux and Lower Brule Sioux tribes' 
consultant asserted that since the tribes suffered the same type of 
damages as the Standing Rock Sioux tribe, they should be provided with 
additional compensation commensurate, on a per-acre basis, with the 
additional compensation provided to the Standing Rock Sioux tribe in 
1992.[Footnote 6] 

After the Crow Creek Sioux and Lower Brule Sioux tribes received their 
additional compensation in 1996 and 1997, respectively, the Congress 
authorized additional compensation for the Cheyenne River Sioux tribe 
of $290.7 million, or about $2,800 per acre of land flooded. In 2003, 
the Crow Creek Sioux and Lower Brule Sioux tribes hired a consultant to 
determine if they were due additional compensation based on the method 
we proposed in our two prior reports. As a result of the consultant's 
analysis, the two tribes are currently seeking a third round of 
compensation totaling an additional $226 million (in 2003 dollars) for 
the land and resources flooded by the reservoirs created by the Fort 
Randall and Big Bend Dams.[Footnote 7] The tribes assert that their new 
calculations for additional compensation, using the alternative method 
we proposed in our two prior reports, will bring them into parity with 
the additional compensation provided to the other tribes on the 
Missouri River. 

The additional compensation amounts the consultant recommended are 
included in two bills pending in the 109TH Congress, H.R. 109 and S. 
374, referred to as the Tribal Parity Act. Both the consultant's 
analysis and the bills state that the compensation amounts are based on 
methodology deemed appropriate by GAO. However, in July 2005, we 
requested that this language be deleted from the bills because we had 
not analyzed the proposed additional compensation for these two tribes, 
as we had for the other tribes. As a result, you asked us to assess 
whether the tribes' consultant followed the approach in our prior 
reports in calculating the additional compensation amounts for the Crow 
Creek Sioux and Lower Brule Sioux tribes. 

To assess the consultant's methods and analysis for determining 
additional compensation for the Crow Creek Sioux and Lower Brule Sioux 
tribes, we used standard economic principles and the analysis we 
conducted in our two prior reports on additional compensation. In order 
to ensure that we obtained and reviewed all relevant data, we conducted 
a literature search for congressional, agency, and tribal documents at 
the National Archives and the Department of the Interior's library. We 
used original documents to learn about the negotiation process and to 
identify the appraised land prices and various proposed settlement 
amounts. As a result, we determined that the data were sufficiently 
reliable for purposes of this report. We met with the tribes' 
consultant to determine how he used the method we had suggested the 
Congress use as the basis for granting additional compensation to other 
tribes. We also met with representatives of the two tribes on their 
reservations in South Dakota to (1) discuss the analysis, actions taken 
with the compensation previously obtained, and plans for the additional 
compensation amounts requested and (2) review any records they might 
have on previous compensation negotiations. We performed our work from 
October 2005 to April 2006 in accordance with generally accepted 
government auditing standards. A more detailed discussion of our scope 
and methodology is presented in appendix I. 

Results in Brief: 

The Crow Creek Sioux and Lower Brule Sioux tribes' consultant differed 
from the approach we used in our two prior reports in two ways: (1) by 
not using the tribes' final asking prices as the starting point of the 
analysis and (2) by providing a single estimate of additional 
compensation instead of a range. During the settlement negotiations for 
the Fort Randall and Big Bend Dams, as was the case with the 
negotiations for the other dams that we have reviewed, the tribes made 
a number of settlement proposals. In analyzing a request for 
compensation, it is critically important to decide which settlement 
proposal to use to calculate the difference between what the tribe 
asked for and what it finally received. A small numerical difference in 
1950s dollars can result in a large difference today, once it is 
adjusted to reflect more current values. In our prior reports, we used 
the tribes' final asking prices because we believed that it represented 
the most up-to-date and complete information and that their final 
position was more realistic than their initial asking prices. In 
contrast, the tribes' consultant used selected numbers from a variety 
of settlement proposals, several that were not from the tribes' final 
asking prices. For example, for the rehabilitation component of the 
tribes' settlement proposals, the consultant used $13.1 million from 
settlement proposals in 1957, rather than $6.7 million from the tribes' 
final rehabilitation proposals in 1961. While rehabilitation was the 
largest component of the tribes' settlement proposals, it was not 
directly related to the damage caused by the dams. Rehabilitation 
funding in the 1950s was intended to improve the tribes' standard of 
living and prepare them for the termination of federal supervision. 
Finally, the tribes' consultant calculated only the highest additional 
compensation dollar value, rather than providing the Congress with a 
range of possible additional compensation based on different adjustment 
factors. 

Using the approach we followed in our prior reports, we determined in 
this analysis that the additional compensation the Congress authorized 
for the tribes in the 1990s was already at the high end or was above 
the range of possible additional compensation. For the Crow Creek Sioux 
tribe, we estimated that the difference--adjusted to account for 
inflation and interest rates through 1996--would range from $6.5 
million to $21.4 million, compared with the $27.5 million the Congress 
authorized for the tribe in 1996. For the Lower Brule Sioux tribe, we 
estimated that the adjusted difference would range from $12.2 million 
to $40.9 million, compared with the $39.3 million the Congress 
authorized for the tribe in 1997. Although the additional compensation 
amounts enacted in 1996 and 1997 were not calculated using our 
approach, the amounts were generally within the ranges we would have 
proposed. Our estimated amounts vary significantly from the amounts 
calculated by the tribes' consultant. Our estimated range for the two 
tribes combined is $18.7 million to $62.3 million. By contrast, the 
tribes' consultant calculated additional compensation for the two 
tribes combined to be $292.3 million--$105.9 million for the Crow Creek 
Sioux tribe and $186.4 million for the Lower Brule Sioux tribe (in 2003 
dollars). There are two primary reasons for this difference. First, a 
large difference occurs because we used the tribes' final 
rehabilitation request from 1961 in our calculation, rather than the 
tribes' rehabilitation requests from 1957, which the consultant used. 
Second, our total dollar amounts, including the rehabilitation amount, 
were adjusted to account for inflation and interest earned through 1996 
and 1997 to compare them directly with the additional compensation the 
Congress authorized for the two tribes at that time. The consultant, 
however, adjusted for interest earned through 2003, before comparing 
his estimate with the payments authorized in the 1990s. 

Because the consultant's analysis was the basis for the tribes' 
additional compensation claims and the consultant had asserted that the 
additional compensation amounts were based on a methodology deemed 
appropriate by GAO, we chose to provide the tribes' consultant with a 
draft of this report for review and comment. In commenting on the draft 
report, the tribes' consultant (1) acknowledged that he had made a 
calculation error in his analysis, (2) proposed a range of additional 
compensation, and (3) discussed the complex issues of "asking price" in 
the context of the Crow Creek Sioux and Lower Brule Sioux tribes' 
request for additional compensation. The consultant's proposed range of 
additional compensation is based on four different alternatives, rather 
than the approach for a range of additional compensation as we 
suggested in our report. We do not believe that the consultant's four 
alternatives represent a sound approach for establishing the range of 
additional compensation. Our approach is to provide the Congress with a 
range of possible additional compensation based on the difference 
between the amount the tribes believed was warranted at the time of the 
taking and the final settlement amount. We then adjusted the 
differences using the inflation rate for the lower end of the range and 
the corporate bond rate for the higher end. The ranges of additional 
compensation we calculated in the report were calculated in exactly the 
same way we did in our 1991 and 1998 reports, and we believe our 
approach is reasonable. Regarding the issue of the tribes' asking 
prices, the consultant disagreed with our assumption that the tribes' 
final asking prices were based on the most up-to-date and complete 
information and that they were more realistic than their initial asking 
prices. In our view, the drawn out negotiations for the Fort Randall 
Dam and the amounts of the tribes' final asking prices do not support 
the conclusion that the tribes simply capitulated and accepted whatever 
the government offered. For example, for 12 of the 15 compensation 
components shown in tables 5, 6, and 7 of our report, the tribes' final 
asking prices were equal to, or higher than, their initial settlement 
proposals. We used a reasonable, clearly defined, and consistent 
approach. As a result, we did not make any changes to the report based 
on the consultant's comments. See the "Consultant's Comments and Our 
Evaluation" section and appendix V for the consultant's comment letter 
and our evaluation of these comments. 

We recognize that compensation issues can be sensitive, complex, and 
controversial. While our analysis does not support the additional 
compensation amounts contained in H.R. 109 and S. 374, the Congress 
will ultimately decide whether additional compensation should be 
provided, and if so, how much it should be. Our analysis is intended to 
assist the Congress in this regard. 

Background: 

The Flood Control Act of 1944 established a comprehensive plan for 
flood control and other purposes, such as hydroelectric power 
production, in the Missouri River Basin.[Footnote 8] The Pick-Sloan 
Plan--a joint water development program designed by the U.S. Army Corps 
of Engineers (the Corps) and the Department of the Interior's 
(Interior) Bureau of Reclamation--included the construction of five 
dams on the Missouri River, including the Garrison Dam in North Dakota 
and the Oahe, Fort Randall, Big Bend, and Gavins Point Dams in South 
Dakota. The construction of the Fort Randall Dam, located 7 miles above 
the Nebraska line in south-central South Dakota, began in May 1946 and 
was officially dedicated in August 1956. The dam is 160 feet high, and 
the reservoir behind it, known as Lake Case, stretches 107 miles to the 
northwest. (See fig. 1.) 

Figure 1: The Fort Randall Dam and Lake Case (February 2006): 

[See PDF for image] 

[End of figure] 

In September 1959, the Corps began work on the Big Bend Dam, which is 
about 100 miles northwest of the Fort Randall Dam on land belonging to 
both the Crow Creek Sioux and Lower Brule Sioux tribes. The Big Bend 
Dam is 95 feet high and was completed in September 1966. The reservoir 
behind the dam, known as Lake Sharpe, is 20 miles long. (See fig. 2.) 

Figure 2: The Big Bend Dam and Lake Sharpe (July 1998): 

[See PDF for image] 

[End of figure]  

The Crow Creek Sioux and Lower Brule Sioux tribes reside on 
reservations located across the Missouri River from one another in 
central South Dakota. The Crow Creek reservation includes about 225,000 
acres, 56 percent of which is owned by the tribe or individual Indians. 
According to the 2000 Census, the Crow Creek reservation has 2,199 
residents, with the majority residing in the community of Fort 
Thompson. The Lower Brule reservation includes about 226,000 acres, 60 
percent of which is owned by the tribe or individual Indians. According 
to the 2000 Census, the Lower Brule reservation has 1,355 residents, 
including several hundred who reside in the community of Lower Brule. 
Both reservations include some non-Indians, and both tribes have 
several hundred members who do not live on the reservations. The major 
economic activities for both the Crow Creek Sioux and Lower Brule Sioux 
tribes are cattle ranching and farming, and both tribes provide guided 
hunting for fowl and other game. Each tribe also operates a casino and 
a hotel. Both tribes are governed by a tribal council under their 
respective tribal constitutions, and each tribal council is led by a 
tribal chairman. The major employers on the reservations are the 
tribes, the casinos, the Bureau of Indian Affairs, and the Indian 
Health Service. In addition, the Lower Brule Sioux tribe provides 
employment through the Lower Brule Farm Corporation, which is the 
nation's number one popcorn producer. See appendix II for a map of the 
Crow Creek and Lower Brule reservations and the locations of the 
previously mentioned dams and reservoirs. 

The construction of the Fort Randall Dam caused the flooding of more 
than 17,000 acres of Crow Creek and Lower Brule reservation land and 
the displacement of more than 100 tribal families. After these two 
tribes sustained major damage from this project, the construction of 
the Big Bend Dam inundated over 20,000 additional acres of their 
reservations. This flooding displaced more families, some of whom had 
moved earlier as a result of flooding from the Fort Randall Dam. (See 
table 1.) Flooding from the installation of both dams resulted in the 
loss of valuable timber and pasture and forced families to move to less 
desirable land, which affected their way of life. 

Table 1: Acreage Lost and Families Displaced by the Fort Randall and 
Big Bend Dams: 

Tribe: Crow Creek Sioux;  
Fort Randall Dam: Acreage lost: 9,418; 
Fort Randall Dam: Number of families displaced: 84; 
Big Bend Dam: Acreage lost: 6,179; 
Big Bend Dam: Number of families displaced: 27. 

Tribe: Lower Brule Sioux;  
Fort Randall Dam: Acreage lost: 7,997; 
Fort Randall Dam: Number of families displaced: 35;  
Big Bend Dam: Acreage lost: 14,299; 
Big Bend Dam: Number of families displaced: 62. 

Tribe: Total; 
Fort Randall Dam: Acreage lost: 17,415; 
Fort Randall Dam: Number of families displaced: 119; 
Big Bend Dam: Acreage lost: 20,478; 
Big Bend Dam: Number of families displaced: 89. 

Sources: House and Senate reports.  

[End of table] 

During the early 1950s, the Corps; Interior, through its Missouri River 
Basin Investigations Unit (MRBI);[Footnote 9] and the tribes-- 
represented through tribal negotiating committees--developed their own 
estimates of the damages caused by the Fort Randall Dam. Discussions 
and informal negotiating conferences were held among the three parties 
in 1953 to try to arrive at acceptable compensation for 
damages.[Footnote 10] At that point, the Fort Randall Dam had been 
closed since July 1952 and portions of the reservations were 
underwater. The MRBI's appraisal of damages was about $398,000 for Crow 
Creek and about $271,000 for Lower Brule, which was higher than the 
Corps' proposal.[Footnote 11] Both the MRBI appraisal and the Corps' 
proposal were substantially lower than the tribes' settlement 
proposals, and the parties were unable to reach settlement. The Corps 
planned to take the land by condemnation, but in July 1954 decided 
against that action when the Congress authorized and directed the Corps 
and Interior to jointly negotiate separate settlements with the 
tribes.[Footnote 12] Meanwhile, the tribes arranged to have settlement 
bills introduced in July 1954.[Footnote 13] These bills requested $1.7 
million for damages for the Crow Creek Sioux tribe and $2.5 million for 
damages for the Lower Brule Sioux tribe. Both of these bills also 
contained requests for about $2.5 million each for rehabilitation 
funds.[Footnote 14] The first formal negotiating conference was held 
among the parties in November 1954, and further discussions continued 
over several more years after the bills were introduced, but, again, 
the parties could not reach settlement. In 1955, with negotiations 
stalled, the Corps requested and obtained an official declaration of 
taking. The tribes--with their lands now flooded--received funds based 
on the earlier MRBI appraisal figures, with the understanding that 
negotiations for additional funds would continue. The tribes continued 
to insist on receiving substantially higher compensation amounts for 
damages, and additional funds for rehabilitation, as part of the 
settlement. The amounts the tribes requested for rehabilitation 
fluctuated in tribal settlement proposals between 1954 and 1957, but 
both the Corps and the MRBI maintained that rehabilitation funding was 
not within the scope of the negotiations. 

In March 1958, each tribe's negotiating committee submitted new 
proposals at compensation hearings for the Fort Randall Dam.[Footnote 
15] The Crow Creek Sioux tribe proposed compensation of about $2.2 
million for damages and administrative expenses related to the 
settlement, and the Lower Brule Sioux tribe proposed compensation of 
about $1.8 million for damages and administrative expenses.[Footnote 
16] Neither proposal included funds for rehabilitation because both 
tribes agreed with the government's request to wait to procure these 
funds in the Big Bend Dam compensation request. In May 1958, bills were 
introduced in the Congress with amounts that were less than the tribes 
had proposed through their negotiating committees, with the amount for 
direct damages from Fort Randall Dam construction being substantially 
reduced.[Footnote 17] According to House reports, both the tribes and 
the Corps agreed to the amounts proposed for damages.[Footnote 18] 
Later that summer, amendments to the bills reduced the amount for 
indirect damages for both tribes. In September 1958, the Congress 
authorized a payment of about $1.5 million to the Crow Creek Sioux 
tribe, and almost $1.1 million to the Lower Brule Sioux tribe. See 
table 2 for a summary of selected settlement proposals related to the 
Fort Randall Dam. 

Table 2: Selected Settlement Proposals for the Fort Randall Dam: 

Current year dollars. 

Crow Creek Sioux: Damages; 
Tribes': July 1954 request: Crow Creek Sioux: $1,699,419; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: $1,817,590; 
Tribes': May 1957: request[B]: Crow Creek Sioux: $2,105,021; 
Tribes': Mar. 1958 request: Crow Creek Sioux: $2,105,021;: House bills, 
May 1958[C]: Crow Creek Sioux: $2,019,220; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: $1,395,812. 

Crow Creek Sioux: Administrative expenses; 
Tribes': July 1954 request: Crow Creek Sioux: 0; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: 100,000; 
Tribes': May 1957: request[B]: Crow Creek Sioux: 100,000; 
Tribes': Mar. 1958 request: Crow Creek Sioux: 100,000;: House bills, 
May 1958[C]: Crow Creek Sioux: 100,000; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: 100,000. 

Crow Creek Sioux: Rehabilitation; 
Tribes': July 1954 request: Crow Creek Sioux: 2,560,000; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: 5,686,036; 
Tribes': May 1957: request[B]: Crow Creek Sioux: 6,715,311; 
Tribes': Mar. 1958 request: Crow Creek Sioux: 0;: House bills, May 
1958[C]: Crow Creek Sioux: 0; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: 0. 

Crow Creek Sioux: Subtotal; 
Tribes': July 1954 request: Crow Creek Sioux: $4,259,419; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: $7,603,626; 
Tribes': May 1957: request[B]: Crow Creek Sioux: $8,920,332; 
Tribes': Mar. 1958 request: Crow Creek Sioux: $2,205,021;: House bills, 
May 1958[C]: Crow Creek Sioux: $2,119,220; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: $1,495,812. 

Lower Brule Sioux: Damages; 
Tribes': July 1954 request: Crow Creek Sioux: $2,530,472; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: $1,497,397; 
Tribes': May 1957: request[B]: Crow Creek Sioux: $1,700,924; 
Tribes': Mar. 1958 request: Crow Creek Sioux: $1,560,902;: House bills, 
May 1958[C]: Crow Creek Sioux: $1,175,231; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: $976,523. 

Lower Brule Sioux: Administrative expenses; 
Tribes': July 1954 request: Crow Creek Sioux: 0; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: 100,000; 
Tribes': May 1957: request[B]: Crow Creek Sioux: 200,000; 
Tribes': Mar. 1958 request: Crow Creek Sioux: 200,000;: House bills, 
May 1958[C]: Crow Creek Sioux: 100,000; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: 100,000. 

Lower Brule Sioux: Rehabilitation; 
Tribes': July 1954 request: Crow Creek Sioux: 2,530,000; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: 6,348,316; 
Tribes': May 1957: request[B]: Crow Creek Sioux: 16,377,981; 
Tribes': Mar. 1958 request: Crow Creek Sioux: 0;: House bills, May 
1958[C]: Crow Creek Sioux: 0; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: 0. 

Lower Brule Sioux: Subtotal; 
Tribes': July 1954 request: Crow Creek Sioux: $5,060,472; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: $7,945,713; 
Tribes': May 1957: request[B]: Crow Creek Sioux: $18,278,905; 
Tribes': Mar. 1958 request: Crow Creek Sioux: $1,760,902;: House bills, 
May 1958[C]: Crow Creek Sioux: $1,275,231; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: $1,076,523. 

Total; 
Tribes': July 1954 request: Crow Creek Sioux: $9,319,891; 
House and Senate bills, 1955 and 1957[A]: Crow Creek Sioux: 
$15,549,339; 
Tribes': May 1957: request[B]: Crow Creek Sioux: $27,199,237; 
Tribes': Mar. 1958 request: Crow Creek Sioux: $3,965,923;: House bills, 
May 1958[C]: Crow Creek Sioux: $3,394,451; 
Payment authorized, Sept. 1958[D]: Crow Creek Sioux: $2,572,335. 

Source: National Archives. 

[A] H.R. 3544 and H.R. 3602, 84CONG., 1, 1sess., Introduced On February 
3, 1955, And S. 952 And S.S. 953, 84tcong., 1 1ssess., Introduced On 
February 4, 1955; H.R. 6074 And H.R. 6125, 8585 Cong., 1 1t Sess., 
Introduced On March 18, 1957, And March 19, 1957, Respectively; And 
H.R. 6204, 85t Cong., 11s Sess., And H.R. 6569, 85th Cong., 1st Sess., 
Introduced On March 20, 1957, And April 2, 1957, Respectively. 

[B] Statement and Estimates of the Crow Creek Sioux Tribe, Negotiating 
Committee, May 17, 1957; Lower Brule Sioux Tribe Negotiating 
Committee's Estimates and a Breakdown in Figures of All Damages 
Requested, May 10, 1957; and S. 2152, 85CONG., 1, 1st Sess., and H.R. 
7758, 85th Cong., 1SESS., Introduced On May 23, 1957 And May 24, 1957, 
Respectively. 

[C] H.R. 12663 and H.R. 12670, 85th Cong., 2nd Sess., introduced on May 
23, 1958. 

[D] Crow Creek, Pub. L. No. 85-916, 72 Stat. 1766 (1958); and Lower 
Brule, Pub. L. No. 85-923, 72 Stat. 1773 (1958). 

[End of table] 

In contrast to the Fort Randall negotiations, the compensation for the 
construction of the Big Bend Dam was granted quickly. In bills 
introduced in March 1961, the Crow Creek Sioux tribe requested over $1 
million for damages and administrative expenses as a result of the Big 
Bend Dam construction.[Footnote 19] The Lower Brule Sioux tribe 
requested close to $2.4 million for damages, administrative expenses, 
and a new school. In addition, both tribes requested the rehabilitation 
funds that had not been included in the Fort Randall Dam settlement-- 
that is, the Crow Creek Sioux tribe requested more than $4 million and 
the Lower Brule Sioux tribe requested about $2.7 million. In June 1961, 
the government and the tribes agreed to a reduction in direct damages, 
while the tribes requested an increase to the amount for indirect 
damages, bringing the total amount of compensation, including 
rehabilitation, requested by the Crow Creek Sioux and Lower Brule Sioux 
tribes to about $4.9 million for each tribe.[Footnote 20] In subsequent 
bills over the next year, however, the Congress lowered indirect 
damages considerably and dropped the amount requested for a new school 
for Lower Brule. The amounts requested for administrative expenses and 
rehabilitation were also reduced. In October 1962, the Congress 
authorized a payment of $4.4 million to the Crow Creek Sioux tribe and 
about $3.3 million to the Lower Brule Sioux tribe. See table 3 for a 
summary of selected settlement proposals related to the Big Bend Dam. 

Table 3: Selected Settlement Proposals for the Big Bend Dam: 

Current year dollars. 

Crow Creek Sioux: Damages; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: $0; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: $915,924; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
$822,004[E]; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: $564,302; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: $564,302. 

Crow Creek Sioux: Administrative Expenses; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: 125,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: 125,000; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
125,000; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: 125,000; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: 75,000. 

Crow Creek Sioux: Rehabilitation; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: 2,790,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: 4,002,000; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
4,002,000; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: 4,002,000; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: 3,802,500. 

Crow Creek Sioux: Subtotal; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: $2,915,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: $5,042,924; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
$4,949,004; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: $4,691,302; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: $4,441,802. 

Lower Brule Sioux: Damages; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: $0; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: $1,895,908; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
$1,709,472[E]; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: $1,225,715; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: $1,225,715. 

Lower Brule Sioux: Administrative expenses; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: 125,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: 125,000; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
125,000; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: 125,000; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: 75,000. 

Lower Brule Sioux: New school; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: 0; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: 350,000; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
350,000; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: 0; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: 0. 

Lower Brule Sioux: Rehabilitation; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: 1,620,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: 2,670,300; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
2,670,300; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: 2,670,300; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: 1,968,750. 

Lower Brule Sioux: Subtotal; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: $1,745,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: $5,041,208; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
$4,854,772; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: $4,021,015; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: $3,269,465. 

Total; 
House bills,: Mar. 1960[A]: Crow Creek Sioux: $4,660,000; 
House and Senate bills,: Mar. 1961[B]: Crow Creek Sioux: $10,084,132; 
U.S. and tribal proposed amendments,: June 1961: Crow Creek Sioux: 
$9,803,776; 
House bills,: Aug. 1961[C]: Crow Creek Sioux: $8,712,317; 
Payment authorized, Oct. 1962[D]: Crow Creek Sioux: $7,711,267. 

Source: National Archives. 

[A] H.R. 11214 and H.R. 11237, 86CONG., 2, 2SESS., INTRODUCED ON MARCH 
16, 1960, AND MARCH 17,7, 1960, respectively. These bills included a 
placeholder for damage amounts to be included at a later time. 

[B] H.R. 5144 and H.R. 5165, 87th Cong., 1SESS., INTRODUCED ON MARCH 2, 
1961; AND S. 1251 AND S.S. 1252, 87tCONG., 1 1sSESS., INTRODUCED ON 
MARCH 8, 1961.1. 

[C] H.R. 5144 and H.R. 5165, 87CONG., 1, 1SESS., INTRODUCED ON AUGUST 
8, 1961.61. 

[D] Crow Creek, Pub. L. No. 87-735, 76 Stat. 704 (1962); and Lower 
Brule, Pub. L. No. 87-734, 76 Stat. 698 (1962). 

[E] The amounts included in the damages category reflect the direct 
costs the tribes and government agreed on and the indirect costs 
proposed by the tribes. 

[End of table] 

See appendixes III and IV for a timeline summary of the settlement 
negotiations and compensation for the two dams for the Crow Creek Sioux 
and Lower Brule Sioux tribes, respectively. 

Tribes at five other reservations affected by flood control projects 
along the Missouri River incurred losses ranging from about 600 acres 
to over 150,000 acres. These tribes received some compensation, 
primarily during the 1950s, for the damages they sustained. However, 
beginning in the 1980s, some of these tribes began requesting 
additional compensation. The Congress responded to their requests by 
authorizing the establishment of development trust funds. (See table 
4.) The tribes at the Fort Berthold, Standing Rock, and Cheyenne River 
reservations received compensation within the ranges we had suggested 
the Congress consider in our reviews of the tribes' additional 
compensation claims. The ranges were based on the current value of the 
difference between each tribes' final asking price and the amount that 
the Congress authorized. We were not asked to review the additional 
compensation claims for the Crow Creek Sioux and Lower Brule Sioux 
tribes in the 1990s or for the Santee Sioux and Yankton Sioux tribes in 
2002. 

Table 4: Additional Compensation Authorized by Congress for Tribes on 
the Missouri River: 

Current year dollars in millions. 

Three Affiliated Tribes of the Fort Berthold Reservation; 
Dam(s): Garrison; 
Acreage lost: 152,360; 
Year additional compensation enacted: 1992[A]; 
Additional compensation authorized: $149.2. 

Standing Rock Sioux; 
Dam(s): Oahe; 
Acreage lost: 55,994; 
Year additional compensation enacted: 1992[A]; 
Additional compensation authorized: $90.6. 

Crow Creek Sioux; 
Dam(s): Fort Randall; Big Bend; 
Acreage lost: 15,597; 
Year additional compensation enacted: 1996[B]; 
Additional compensation authorized: $27.5. 

Lower Brule Sioux; 
Dam(s): Fort Randall; Big Bend; 
Acreage lost: 22,296; 
Year additional compensation enacted: 1997[C]; 
Additional compensation authorized: $39.3. 

Cheyenne River Sioux; 
Dam(s): Oahe; 
Acreage lost: 104,420; 
Year additional compensation enacted: 2000[D]; 
Additional compensation authorized: $290.7. 

Yankton Sioux; 
Dam(s): Fort Randall; 
Acreage lost: 2,851; 
Year additional compensation enacted: 2002[E]; 
Additional compensation authorized: $23.0. 

Santee Sioux; 
Dam(s): Gavins Point; 
Acreage lost: 593; 
Year additional compensation enacted: 2002[E]; 
Additional compensation authorized: $4.8. 

Source: GAO analysis of the additional compensation acts. 

[A] Pub. L. No. 102-575, title XXXV, 106 Stat. 4600, 4731 (1992). 

[B] Pub. L. No. 104-223, 110 Stat. 3026 (1996). 

[C] Pub. L. No. 105-132, 111 Stat. 2563 (1997). 

[D] Pub. L. No. 106-511, title I, 114 Stat. 2365 (2000). The 
development trust fund for the Cheyenne River Sioux tribe will not be 
created until the first day of the 11th fiscal year after enactment, or 
October 1, 2011. 

[E] Pub. L. No. 107-331, title II, 116 Stat. 2834, 2838 (2002). The 
development trust funds for the Yankton Sioux and Santee Sioux tribes 
will not be created until the first day of the 11th fiscal year after 
enactment, or October 1, 2013. 

[End of table] 

Consultant's Compensation Analysis Differs from the Approach GAO 
Previously Used for Other Tribes: 

The Crow Creek Sioux and Lower Brule Sioux tribes' consultant differed 
from the approach we used in our prior reports. The consultant used a 
variety of settlement proposals, instead of consistently using the 
tribes' final asking prices, in calculating the difference between what 
the tribes asked for and what the Congress authorized. As a result, the 
consultant's proposed compensation estimates are higher than if he had 
consistently used the tribes' final asking prices. In addition, the 
consultant provided only the highest additional compensation value, 
rather than a range of possible additional compensation from which the 
Congress could choose. 

Consultant Used Various Settlement Proposals, Rather Than Consistently 
Using the Tribes' Final Asking Prices: 

To arrive at an additional compensation estimate, the consultant did 
not consistently use the tribes' final asking prices when calculating 
the difference between what the tribes asked for and what they finally 
received. In determining possible additional compensation for the 
tribes at the Fort Berthold and Standing Rock reservations in 1991, and 
the Cheyenne River reservation in 1998, we used the tribes' final 
asking prices to calculate the difference between what the tribes asked 
for and what they received. In our prior reports, we used the tribes' 
final position because we believed that it represented the most up-to- 
date and complete information, and that their final position was more 
realistic than their initial asking prices. In contrast, the consultant 
used figures from a variety of settlement proposals--several of which 
were not the tribes' final asking prices--to estimate additional 
compensation for damages (including direct and indirect damages), 
administrative expenses, and rehabilitation. As a result, the 
consultant's estimate of the tribes' asking prices in the late 1950s 
and early 1960s was about $7.7 million higher than it would have been 
if he had consistently used the tribes' final asking prices. Choosing 
which settlement proposal to use to calculate the difference between 
what the tribe asked for and what it finally received is critically 
important, because a small numerical difference 50 years ago can result 
in a large difference today, once it is adjusted to reflect more 
current values. 

With respect to the Fort Randall Dam, the consultant used amounts from 
a variety of settlement proposals for damages and administrative 
expenses. To determine additional compensation, the consultant used a 
$2.2 million settlement proposal by the Crow Creek Sioux tribe and a 
$2.6 million settlement proposal by the Lower Brule Sioux tribe. (See 
table 5.) The Crow Creek proposal was from May 1957, and was the same 
as the tribe's final asking price requested about 1 year later, in 
February 1958. However, the Lower Brule proposal was from the first 
compensation bill introduced in the Congress in July 1954, almost 4 
years before the tribe's final asking price of about $1.8 million in 
March 1958---a difference of more than $850,000. 

Table 5: Comparison of the Settlement Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices for the Fort Randall 
Dam: 

Current year dollars. 

Crow Creek Sioux: Direct damages; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
$641,588; 
Date of settlement figure: Crow Creek Sioux: May 1957; 
Tribes' final asking prices: Crow Creek Sioux: $641,588; 
Date of final asking price: Crow Creek Sioux: Feb. 1958; 
Difference: Crow Creek Sioux: $0. 

Crow Creek Sioux: Indirect damages; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
1,463,433; 
Date of settlement figure: Crow Creek Sioux: May 1957; 
Tribes' final asking prices: Crow Creek Sioux: 1,463,433; 
Date of final asking price: Crow Creek Sioux: Feb. 1958; 
Difference: Crow Creek Sioux: 0. 

Crow Creek Sioux: Administrative expenses; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
100,000; 
Date of settlement figure: Crow Creek Sioux: May 1957; 
Tribes' final asking prices: Crow Creek Sioux: 100,000; 
Date of final asking price: Crow Creek Sioux: Feb. 1958; 
Difference: Crow Creek Sioux: 0. 

Crow Creek Sioux: Subtotal; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
$2,205,021; 
Date of settlement figure: Crow Creek Sioux: [Empty]; 
Tribes' final asking prices: Crow Creek Sioux: $2,205,021; 
Date of final asking price: Crow Creek Sioux: [Empty]; 
Difference: Crow Creek Sioux: $0. 

Lower Brule Sioux: Direct damages; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
$739,904; 
Date of settlement figure: Crow Creek Sioux: July 1954; 
Tribes' final asking prices: Crow Creek Sioux: $771,998; 
Date of final asking price: Crow Creek Sioux: Mar. 1958; 
Difference: Crow Creek Sioux: ($32,094). 

Lower Brule Sioux: Indirect damages; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
1,790,568; 
Date of settlement figure: Crow Creek Sioux: July 1954; 
Tribes' final asking prices: Crow Creek Sioux: 788,904; 
Date of final asking price: Crow Creek Sioux: Mar. 1958; 
Difference: Crow Creek Sioux: 1,001,664. 

Lower Brule Sioux: Administrative expenses; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
100,000; 
Date of settlement figure: Crow Creek Sioux: Feb. 1955; 
Tribes' final asking prices: Crow Creek Sioux: 200,000; 
Date of final asking price: Crow Creek Sioux: Mar. 1958; 
Difference: Crow Creek Sioux: (100,000). 

Lower Brule Sioux: Subtotal; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
$2,630,472; 
Date of settlement figure: Crow Creek Sioux: [Empty]; 
Tribes' final asking prices: Crow Creek Sioux: $1,760,902; 
Date of final asking price: Crow Creek Sioux: [Empty]; 
Difference: Crow Creek Sioux: $869,570. 

Total; 
Settlement figure used by the tribes' consultant[A]: Crow Creek Sioux: 
$4,835,493; 
Date of settlement figure: Crow Creek Sioux: [Empty]; 
Tribes' final asking prices: Crow Creek Sioux: $3,965,923; 
Date of final asking price: Crow Creek Sioux: [Empty]; 
Difference: Crow Creek Sioux: $869,570. 

Sources: National Archives and the consultant's analysis. 

[A] The consultant's figures for the Crow Creek Sioux tribe were from 
H.R. 7758, 85th Cong., 1st Sess., (companion bill S. 2152) introduced 
on May 24, 1957. The consultant's damage figures for the Lower Brule 
Sioux tribe were from H.R. 9832, 83rd Cong., 2nd Sess., (companion bill 
S. 3748) introduced on July 8, 1954. The administrative expenses figure 
for Lower Brule was from H.R. 3544, 84th Cong., 1sess., (Companion Bill 
S. 953) Introduced On February 3, 1955. The Direct Damages In H.R. 3544 
Were reduced to $708,493.29, and the indirect damages were reduced to 
$788,904. 

[End of table] 

For the Big Bend Dam, the consultant also used amounts from different 
settlement proposals for damages and administrative expenses. To 
determine additional compensation, the consultant used amounts from 
congressional bills introduced in March 1961 for direct damages, but 
used amounts from proposed amendments to the bills in June 1961 for 
indirect damages. The tribes' asking prices from June 1961 can be 
considered their final asking prices because the proposed amendments 
are the last evidence of where the tribes requested specific 
compensation (indirect damages) or agreed to a compensation amount 
(direct damages). The consultant would have been more consistent had he 
used both the indirect and direct damage settlement figures in the 
proposed amendments from June 1961, rather than a mixture of these 
figures. As a result, the total amount for damages the consultant used 
to calculate the difference between what the tribes requested and what 
it finally received is about $427,000 (in 1961 dollars) higher than if 
the tribes' final asking prices from June 1961 had been used 
consistently. (See table 6.) 

Table 6: Comparison of the Settlement Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices for the Big Bend Dam: 

Current year dollars. 

Crow Creek Sioux: Direct damages; 
Settlement figure used by the tribes' consultant[A]: $494,890; 
Date of settlement figure: Mar. 1961; 
Tribes' final asking prices: $355,000; 
Date of final asking price: June 1961; 
Difference: $139,890. 

Crow Creek Sioux: Indirect damages; 
Settlement figure used by the tribes' consultant[A]: 467,004; 
Date of settlement figure: June 1961; 
Tribes' final asking prices: 467,004; 
Date of final asking price: June 1961; 
Difference: 0. 

Crow Creek Sioux: Administrative Expenses; 
Settlement figure used by the tribes' consultant[A]: 125,000; 
Date of settlement figure: Mar. 1961; 
Tribes' final asking prices: 125,000; 
Date of final asking price: June 1961[B]; 
Difference: 0. 

Crow Creek Sioux: Subtotal; 
Settlement figure used by the tribes' consultant[A]: $1,086,894; 
Date of settlement figure: [Empty]; 
Tribes' final asking prices: $947,004; 
Date of final asking price: [Empty]; 
Difference: $139,890. 

Lower Brule Sioux: Direct damages; 
Settlement figure used by the tribes' consultant[A]: $1,111,910; 
Date of settlement figure: Mar. 1961; 
Tribes' final asking prices: $825,000; 
Date of final asking price: June 1961; 
Difference: $286,910. 

Lower Brule Sioux: Indirect damages; 
Settlement figure used by the tribes' consultant[A]: 884,472; 
Date of settlement figure: June 1961; 
Tribes' final asking prices: 884,472; 
Date of final asking price: June 1961; 
Difference: 0. 

Lower Brule Sioux: Administrative expenses; 
Settlement figure used by the tribes' consultant[A]: 125,000; 
Date of settlement figure: Mar. 1961; 
Tribes' final asking prices: 125,000; 
Date of final asking price: June 1961[B]; 
Difference: 0. 

Lower Brule Sioux: New school; 
Settlement figure used by the tribes' consultant[A]: 350,000; 
Date of settlement figure: Mar. 1961; 
Tribes' final asking prices: 350,000; 
Date of final asking price: June 1961[B]; 
Difference: 0. 

Lower Brule Sioux: Subtotal; 
Settlement figure used by the tribes' consultant[A]: $2,471,382; 
Date of settlement figure: [Empty]; 
Tribes' final asking prices: $2,184,472; 
Date of final asking price: [Empty]; 
Difference: $286,910. 

Total; 
Settlement figure used by the tribes' consultant[A]: $3,558,276; 
Date of settlement figure: [Empty]; 
Tribes' final asking prices: $3,131,476; 
Date of final asking price: [Empty]; 
Difference: $426,800. 

Sources: National Archives legislative files and the consultant's 
analysis. 

[A] The consultant used figures from H.R. 5165 (companion bill S. 1252) 
and H.R. 5144 (companion bill S. 1251) for direct damages and 
administrative expenses for the Crow Creek Sioux and Lower Brule Sioux 
tribes, respectively. The figure for the new school for the Lower Brule 
Sioux Tribe was also from H.R. 5144 (companion bill S. 1251). The 
figures for indirect damages were from proposed amendments to these 
bills. An Assistant Secretary for the Department of the Interior 
included a composite of the recommended amendments of the Secretary of 
the Interior, the Secretary of the Army, and the tribes to H.R. 5144 
and H.R. 5165 in a letter to the Chairman of the House, Subcommittee on 
Indian Affairs, Committee on Interior and Insular Affairs, on June 16, 
1961. 

[B] The tribes' final asking prices for administrative expenses and the 
new school for the Lower Brule Sioux tribe were represented in 
congressional bills introduced in March 1961. No changes were proposed 
to these figures in the proposed amendments to the bills, so we assumed 
these figures represented the tribes' final asking prices as of June 
1961. 

[End of table] 

Lastly, the consultant did not use the tribes' final asking prices for 
the rehabilitation component of the settlement payment. The consultant 
used a $6.7 million rehabilitation figure that the Crow Creek Sioux 
tribe's negotiating committee proposed in May 1957 and a $6.3 million 
rehabilitation figure that was proposed in congressional bills in 1955 
and 1957 for the Lower Brule Sioux tribe. (See table 7.) Both of these 
figures were developed during the negotiations for the Fort Randall 
Dam. However, the tribes agreed in their February and March 1958 
proposals--their final asking prices for the Fort Randall Dam--to defer 
consideration of their rehabilitation proposals until after land 
acquisitions were made for the construction of the Big Bend Dam. The 
Big Bend Dam's installation would once again result in the flooding of 
their lands. In our view, the consultant should have used the final 
rehabilitation figures proposed by the tribes in 1961--that is, $4 
million for the Crow Creek Sioux tribe and $2.7 million for the Lower 
Brule Sioux tribe. 

Table 7: Comparison of Rehabilitation Figures Used by the Tribes' 
Consultant Versus the Tribes' Final Asking Prices: 

Current year dollars. 

Crow Creek Sioux; 
Settlement figure used by the tribes' consultant[A]: $6,715,311; 
Date of settlement figure: May 1957; 
Tribes' final asking prices: $4,002,000; 
Date of final asking price: Mar. 1961; 
Difference: $2,713,311. 

Lower Brule Sioux; 
Settlement figure used by the tribes' consultant[A]: 6,348,316; 
Date of settlement figure: Apr. 1957[B]; 
Tribes' final asking prices: 2,670,300; 
Date of final asking price: Mar. 1961; 
Difference: 3,678,016. 

Total; 
Settlement figure used by the tribes' consultant[A]: $13,063,627; 
Date of settlement figure: [Empty]; 
Tribes' final asking prices: $6,672,300; 
Date of final asking price: [Empty]; 
Difference: $6,391,327. 

Sources: National Archives and the consultant's analysis. 

[A] The consultant's rehabilitation figure for the Crow Creek Sioux 
tribe was from H.R. 7758, 85th Cong., 1st Sess., (companion bill S. 
2152) introduced on May 24, 1957. The figure was also presented by the 
tribe's negotiating committee in May 1957. The consultant's 
rehabilitation figure for the Lower Brule Sioux tribe was from H.R. 
6569, 85th Cong., 1st Sess., introduced on April 2, 1957. 

[B] The same rehabilitation figure was also included in settlement 
proposals from February 1955 (H.R. 3544 and S. 953) and March 1957 
(H.R. 6074). As shown in table 5, the damage settlement figures the 
consultant used were from H.R. 9832 (companion bill S. 3748) in 1954, 
years earlier than the date of the rehabilitation figure that was used. 
In 1954, H.R. 9832 and S. 3748 both included a rehabilitation figure of 
$2.53 million--over $3.8 million less than the figure the consultant 
used. 

[End of table] 

While rehabilitation was the largest component of the tribes' 
settlement proposals, we believe it should be considered separately 
from the comparison for damages because rehabilitation was not directly 
related to the damage caused by the dams. Funding for rehabilitation, 
which gained support in the late-1940s, was meant to improve the 
tribes' social and economic development and prepare some of the tribes 
for the termination: 

of federal supervision.[Footnote 21] Funding for these rehabilitation 
programs came from both the government and from the tribes themselves. 
From the late-1940s through the early-1960s, the Congress considered 
several bills that would have provided individual tribes with 
rehabilitation funding. For example, between 1949 and 1950, the House 
passed seven bills for tribes totaling more than $47 million in 
authorizations for rehabilitation funding, and considered other bills, 
one of which would have provided $50 million to several Sioux tribes, 
including Crow Creek and Lower Brule. Owing to opposition from tribal 
groups, the termination policy began to lose support with the Congress 
in the late 1950s, and rehabilitation funding for individual tribes 
during this time was most often authorized by the Congress in 
association with compensation bills for dam projects on the Missouri 
River. However, the granting of rehabilitation funding for these tribes 
was inconsistent. Some tribes did not receive rehabilitation funding 
along with compensation for damages, while others did. (See table 8.) 

Table 8: Rehabilitation Payments Authorized by Congress for Tribes on 
the Missouri River: 

Current year dollars in millions. 

Three Affiliated Tribes of the Fort Berthold Reservation; 
Year payment enacted: 1947 and 1949; 
Total payment authorized: $12.6; 
Rehabilitation payment authorized: $0; 
Percentage: 0%. 

Cheyenne River Sioux; 
Year payment enacted: 1954; 
Total payment authorized: $10.6; 
Rehabilitation payment authorized: 5.2[A]; 
Percentage: 49. 

Yankton Sioux; 
Year payment enacted: 1952 and 1954; 
Total payment authorized: $0.2; 
Rehabilitation payment authorized: 0; 
Percentage: 0. 

Standing Rock Sioux; 
Year payment enacted: 1958; 
Total payment authorized: $12.2; 
Rehabilitation payment authorized: 7.0[A]; 
Percentage: 57. 

Santee Sioux; 
Year payment enacted: 1958; 
Total payment authorized: $0.05; 
Rehabilitation payment authorized: 0; 
Percentage: 0. 

Crow Creek Sioux; 
Year payment enacted: 1958 and 1962; 
Total payment authorized: 5.9; 
Rehabilitation payment authorized: $3.8; 
Percentage: 64. 

Lower Brule Sioux; 
Year payment enacted: 1958 and 1962; 
Total payment authorized: 4.3; 
Rehabilitation payment authorized: $1.9; 
Percentage: 45. 

Source: GAO analysis of the compensation acts. 

[A] These amounts include relocation and reestablishment funds 
authorized for the tribes. For example, the Cheyenne River Sioux tribe 
expended $416,626 for relocating and reestablishing tribal members 
living in the area that was flooded. 

[End of table] 

Consultant Developed a Single Compensation Estimate for Each Tribe, 
Rather Than a Range of Estimates: 

In our two prior reports, we suggested that, for the tribes of Fort 
Berthold, Standing Rock, and Cheyenne River, the Congress consider a 
range of possible compensation based on the current value of the 
difference between the final asking price of each tribe and the amount 
that it received. In calculating the current value, we used two 
different rates to establish a range of additional compensation. For 
the lower end of the range, we used the inflation rate to estimate the 
amount the tribes would need to equal the purchasing power of the 
difference. For the higher range, we used an interest rate to estimate 
the amount the tribes might have earned if they had invested the 
difference in Aaa corporate bonds as of the date of the 
settlement.[Footnote 22] The consultant did not follow this approach 
when he calculated the compensation estimates for the Crow Creek Sioux 
and Lower Brule Sioux tribes. Instead, he used the corporate bond rate 
to develop a single figure for each tribe, rather than a range. 

The consultant justified using only the corporate bond rate to 
calculate the compensation figures for the Crow Creek Sioux and Lower 
Brule Sioux tribes by pointing out that the Congress authorized 
additional compensation of $149.2 million for the tribes of Fort 
Berthold and $290.7 million for the Cheyenne River Sioux tribe in 1992 
and 2000, respectively, by using our estimates of the high end of the 
range for these tribes. The consultant contended that if the Congress 
also uses the corporate bond rate for the Crow Creek Sioux and Lower 
Brule Sioux tribes to determine compensation, it would ensure parity 
with the amounts the tribes of Fort Berthold and the Cheyenne River 
Sioux received. However, the Congress has not always chosen to use the 
highest value in the ranges we estimated. For example, in the case of 
the Standing Rock Sioux tribe, the Congress chose to provide additional 
compensation of $90.6 million in 1992--an amount closer to the lower 
end of the range we estimated. 

Amounts Calculated by GAO Are Similar to the Amounts Received by the 
Tribes in the 1990s: 

Using the approach we followed in our prior reports, which was based on 
the tribes' final asking prices, we found that the additional 
compensation the Crow Creek Sioux and Lower Brule Sioux tribes received 
in the 1990s was either at the high end or above the range of possible 
additional compensation. For both tribes, we calculated the difference 
between the final asking prices and the compensation authorized in 1958 
and 1962. We then took the difference and adjusted it to account for 
the inflation rate and the Aaa corporate bond rate through either 1996 
or 1997 to produce a possible range of additional compensation to 
compare it with the additional compensation the Congress authorized for 
the tribes in 1996 and 1997. For the Crow Creek Sioux tribe, we 
estimated that the difference adjusted to 1996 values for both dams 
would range from $6.5 million to $21.4 million (see table 9), compared 
with the $27.5 million the Congress authorized for the tribe in 1996. 
The $27.5 million in additional compensation already authorized for the 
Crow Creek Sioux tribe is therefore higher than the amount that we 
would have proposed in 1996 using our approach. 

Table 9: Estimate of Additional Compensation Range for the Crow Creek 
Sioux Tribe: 

Current year dollars. 

Fort Randall Dam: Damages; 
Tribes' final asking prices (1958 and 1961)[A]: $2,105,021; 
Payment authorized: (1958 and 1962)[B]: $1,395,812; 
Difference: $709,209; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $3,848,314; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $13,369,732. 

Fort Randall Dam: Administrative expenses; 
Tribes' final asking prices (1958 and 1961)[A]: 100,000; 
Payment authorized: (1958 and 1962)[B]: 100,000; 
Difference: 0; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: 0; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: 0. 

Fort Randall Dam: Subtotal; 
Tribes' final asking prices (1958 and 1961)[A]: $2,205,021; 
Payment authorized: (1958 and 1962)[B]: $1,495,812; 
Difference: $709,209;  
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $3,848,314; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $13,369,732. 

Big Bend Dam: Damages; 
Tribes' final asking prices (1958 and 1961)[A]: $822,004; 
Payment authorized: (1958 and 1962)[B]: $564,302; 
Difference: $257,702; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $1,338,508; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $4,094,541. 

Big Bend Dam: Administrative expenses; 
Tribes' final asking prices (1958 and 1961)[A]: 125,000; 
Payment authorized: (1958 and 1962)[B]: 75,000; 
Difference: 50,000; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: 259,701; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: 794,433. 

Big Bend Dam: Subtotal; 
Tribes' final asking prices (1958 and 1961)[A]: $947,004; 
Payment authorized: (1958 and 1962)[B]: $639,302; 
Difference: $307,702; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $1,598, 209; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $4,888,974. 

Rehabilitation; 
Tribes' final asking prices (1958 and 1961)[A]: $4,002,000; 
Payment authorized: (1958 and 1962)[B]: $3,802,500; 
Difference: $199,500; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $1,036,206; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $3,169,789. 

Total; 
Tribes' final asking prices (1958 and 1961)[A]: $7,154,025; 
Payment authorized: (1958 and 1962)[B]: $5,937,614; 
Difference: $1,216,411; 
Additional compensation range (in 1996 dollars): Low end: (inflation 
rate)[C]: $6,482,729; 
Additional compensation range (in 1996 dollars): High end: (interest 
rate)[D]: $21,428,495. 

Source: GAO analysis of National Archives legislative files and the 
consultant's analysis. 

[A] The damages figure for the Fort Randall Dam is from the Statement 
and Estimates of the Crow Creek Sioux Tribal Council and Negotiating 
Committee, dated February 21, 1958, presented at a hearing on H.R. 
10786 before the House Committee on Interior and Insular Affairs, 
Subcommittee on Indian Affairs, March 25, 1958. The tribe's final 
asking price for the damages caused by the Fort Randall Dam was 
embodied in H.R. 10786, 85th Cong., 2nd Sess., (companion bill S. 3225) 
introduced on February 18, 1958. The administrative expenses figure for 
the Fort Randall Dam is from H.R. 10786. The damage figure for the Big 
Bend Dam is from proposed amendments to H.R. 5165, dated June 16, 1961, 
and the figures for administrative expenses and rehabilitation are from 
H.R. 5165 (companion S. 1252) because the tribes did not ask for any 
changes to these components in the June 1961 proposed amendments. 

[B] Fort Randall Dam, Pub. L. No. 85-916, 72 Stat. 1766 (1958); and Big 
Bend Dam, Pub. L. No. 87-735, 76 Stat. 704 (1962). 

[C] Data in this column reflect the annual inflation rate (consumer 
price index for all items) from 1959 through 1996 for the Fort Randall 
Dam items and from 1962 through 1996 for the Big Bend Dam items and 
rehabilitation. 

[D] Data in this column reflect the annual average rate of interest 
earned on investments in Aaa corporate bonds from 1959 through 1996 for 
the Fort Randall Dam items and from 1962 through 1996 for the Big Bend 
Dam items and rehabilitation. 

[End of table] 

For the Lower Brule Sioux tribe, we estimated that the difference 
adjusted to 1997 values for both dams would range from $12.2 million to 
$40.9 million (see table 10), compared with the $39.3 million the 
Congress authorized for the tribe in 1997. The $39.3 million falls 
toward the high end of the range that we would have proposed in 1997 
using our approach. 

Table 10: Estimate of Additional Compensation Range for the Lower Brule 
Sioux Tribe: 

Current year dollars. 

Fort Randall Dam: Damages; 
Tribes' final asking prices (1958 and 1961)[A]: $1,560,902; 
Payment authorized: (1958 and 1962)[B]: $976,523;:: Difference: 
$584,379;  
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $3,243,892; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $11,816,283. 

Fort Randall Dam: Administrative expenses; 
Tribes' final asking prices (1958 and 1961)[A]: 200,000; 
Payment authorized: (1958 and 1962)[B]: 100,000;:: Difference: 100,000; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: 555,101; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: 2,022,024. 

Fort Randall Dam: Subtotal; 
Tribes' final asking prices (1958 and 1961)[A]: $1,760,902; 
Payment authorized: (1958 and 1962)[B]: $1,076,523;:: Difference: 
$684,379; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $3,798,993; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $13,838,307. 

Big Bend Dam: Damages; 
Tribes' final asking prices (1958 and 1961)[A]: $1,709,472; 
Payment authorized: (1958 and 1962)[B]: $1,225,715;:: Difference: 
$483,757;  
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $2,570,431; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $8,244,275. 

Big Bend Dam: Administrative expenses; 
Tribes' final asking prices (1958 and 1961)[A]: 125,000; 
Payment authorized: (1958 and 1962)[B]: 75,000;:: Difference: 50,000; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: 265,674; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: 852,109. 

Big Bend Dam: New school; 
Tribes' final asking prices (1958 and 1961)[A]: 350,000; 
Payment authorized: (1958 and 1962)[B]: 0;:: Difference: 350,000; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: 1,859,716; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: 5,964,764. 

Big Bend Dam: Subtotal; 
Tribes' final asking prices (1958 and 1961)[A]: $2,184,472; 
Payment authorized: (1958 and 1962)[B]: $1,300,715;:: Difference: 
$883,757;  
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $4,695,821; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $15,061,148. 

Rehabilitation; 
Tribes' final asking prices (1958 and 1961)[A]: $2,670,300; 
Payment authorized: (1958 and 1962)[B]: $1,968,750;:: Difference: 
$701,550; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $3,727,669; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $11,955,943. 

Total; 
Tribes' final asking prices (1958 and 1961)[A]: $6,615,674; 
Payment authorized: (1958 and 1962)[B]: $4,345,988;:: Difference: 
$2,269,686; 
Additional compensation range (in 1997 dollars):: Low end: (inflation 
rate)[C]: $12,222,483; 
Additional compensation range (in 1997 dollars):: High end: (interest 
rate)[D]: $40,855,398. 

Source: GAO analysis of National Archives legislative files and the 
consultant's analysis. 

[A] The damages figure and administrative expenses for the Fort Randall 
Dam are from the Lower Brule Proposed Program in Support of H.R. 6074, 
which was presented at a hearing on H.R. 6074 before the House 
Committee on Interior and Insular Affairs, Subcommittee on Indian 
Affairs, March 25, 1958. The tribe's final asking price for damages 
caused by the Fort Randall Dam was embodied in H.R. 6074, 85th Cong., 
1st Sess., introduced on March 18, 1957. The damages figure for the Big 
Bend Dam is from proposed amendments to H.R. 5144, dated June 16, 1961, 
and the figures for administrative expenses and rehabilitation are from 
H.R. 5144 (companion bill S. 1251) because there were no changes 
requested by the tribe to these components in the June 1961 proposed 
amendments. 

[B] Fort Randall Dam, Pub. L. No. 85-923, 72 Stat. 1773 (1958); and Big 
Bend Dam, Pub. L. No. 87-734, 76 Stat. 698 (1962). 

[C] Data in this column reflect the annual inflation rate (consumer 
price index for all items) from 1959 through 1997 for the Fort Randall 
Dam items and from 1962 through 1997 for the Big Bend Dam items and 
rehabilitation. 

[D] Data in this column reflect the annual average rate of interest 
earned on investments in Aaa corporate bonds from 1959 through 1997 for 
the Fort Randall Dam items and from 1962 through 1997 for the Big Bend 
Dam items and rehabilitation. 

[End of table] 

Our estimates of additional compensation for the two tribes vary 
significantly from the amounts calculated by the tribes' consultant. 
Our estimated range for the two tribes combined is from about $18.7 
million to $62.3 million. The consultant calculated an additional 
compensation figure for the two tribes of $292.3 million (in 2003 
dollars)--that is, $105.9 for the Crow Creek Sioux tribe and $186.4 for 
the Lower Brule Sioux tribe--before subtracting the amounts received by 
the tribes in 1996 and 1997, respectively. There are two primary 
reasons for the difference between our additional compensation amounts 
and the consultant's amounts. 

* First, most of the difference is due to the different rehabilitation 
cost figures that were used. For the difference between the tribes' 
asking prices for rehabilitation and the amounts they actually 
received, we used $901,450 and the consultant used about $7.3 million 
(in 1961 and 1957 dollars, respectively). Once the $901,450 is adjusted 
to account for inflation and interest earned through 1996 and 1997, it 
results in a range of additional compensation for rehabilitation for 
the two tribes combined of about $4.8 million to $15.1 million. If the 
consultant's rehabilitation figure of about $7.3 million is adjusted 
through 1996 and 1997, his total for the two tribes is $120.9 million, 
or more than $105 million above our high estimate. 

* Second, our dollar values were adjusted to account for inflation and 
interest earned only through 1996 and 1997 to compare them with what 
the two tribes received in additional compensation at that time. The 
consultant, however, adjusted for interest earned up through 2003. In 
addition, he then incorrectly adjusted for the additional compensation 
the tribes were authorized in the 1990s. Specifically, the consultant 
subtracted the $27.5 million and $39.3 million authorized for the Crow 
Creek Sioux and Lower Brule Sioux tribes in 1996 and 1997, 
respectively, from his additional compensation totals without first 
making the different estimates comparable. Since these amounts were in 
1996 and 1997 dollar values, versus the 2003 dollar values for his 
current calculations, it was incorrect to subtract one from the other 
without any adjustment. In our view, the consultant should have 
adjusted his current calculations through 1996 and 1997, depending on 
the tribe, and then should have subtracted the additional compensation 
provided the tribes at that time. If there was any remaining 
compensation due the tribes, the final step then would have been to 
adjust it to reflect 2003 dollar values. Using this approach, the 
additional compensation provided to the tribes in the 1990s would have 
been subtracted from comparable dollar values. 

Observations: 

The additional compensation already authorized for the Crow Creek Sioux 
and Lower Brule Sioux tribes in 1996 and 1997, respectively, is 
consistent with the additional compensation authorized for the other 
tribes on the Missouri River. Rather than bringing the Crow Creek Sioux 
and Lower Brule Sioux tribes into parity with the other tribes, the two 
bills under consideration in the 109TH Congress--H.R. 109 and S. 374-- 
would have the opposite effect. Providing a third round of compensation 
to the Crow Creek Sioux and Lower Brule Sioux tribes, in the amounts 
proposed in the bills, would catapult them ahead of the other tribes 
and set a precedent for the other tribes to seek a third round of 
compensation. Our analysis does not support the additional compensation 
amounts contained in H.R. 109 and S. 374. Notwithstanding the results 
of our analysis, the Congress will ultimately decide whether additional 
compensation should be provided and, if so, how much it should be. Our 
analysis will assist the Congress in this regard. 

Consultant's Comments and Our Evaluation: 

Because the consultant's analysis was the basis for the tribes' 
additional compensation claims and the consultant had asserted that the 
additional compensation amounts were based on a methodology deemed 
appropriate by GAO, we chose to provide the tribes' consultant with a 
draft of this report for review and comment. In commenting on the 
draft, the tribes' consultant (1) acknowledged that he had made a 
calculation error in his analysis, (2) proposed a range of additional 
compensation based on four different alternatives, and (3) discussed 
the complex issues of "asking price" in the context of the particular 
set of facts for the Crow Creek Sioux and Lower Brule Sioux tribes. In 
addition, the consultant commented "…that there has been no uniform or 
consistent approach, method, formula, or criteria for providing 
additional compensation. . ." to the seven tribes affected by Pick- 
Sloan dam projects on the Missouri River. Specifically, the consultant 
pointed out that the Congress has provided additional compensation to 
four tribes based on a per-acre analysis, while only three tribes have 
received additional compensation within the ranges we calculated in our 
two prior reports. As a result, the consultant believes that there is a 
wide disparity in the total compensation that the seven tribes have 
received from the Congress. As discussed in detail below, we believe 
that our approach is reasonable, and we did not make any changes to the 
report based on the consultant's comments. The tribes' consultant 
provided written comments that are included in appendix V, along with 
our specific responses. 

To address the perceived disparity in the total compensation amounts 
provided by the Congress, the consultant proposed four different 
alternatives for calculating additional compensation for the Crow Creek 
Sioux and Lower Brule Sioux tribes: (1) on a per-acre basis compared 
with the Cheyenne River Sioux tribe, (2) the consultant's original 
proposal (amended to correct for the calculation error), (3) on a per- 
acre basis compared with the Santee Sioux tribe, and (4) calculations 
based on using the tribes' highest asking prices. We do not believe 
that the consultant's amended original proposal nor the three new 
alternatives represent a sound approach for establishing the range of 
additional compensation. Our approach is to provide the Congress with a 
range of possible additional compensation based on the difference 
between the amount the tribes believed was warranted at the time of the 
taking and the final settlement amount. We then adjusted the 
differences using the inflation rate for the lower end of the range and 
the corporate bond rate for the higher end. The ranges of additional 
compensation we calculated in this report were calculated in exactly 
the same way we did in our 1991 and 1998 reports, and we believe our 
approach is reasonable. In our view, trying to compare the total 
compensation for the tribes on a per-acre basis--which are two of 
consultant's proposed alternatives--does not take into account the 
differences of what each tribe lost. For example, even if the 
individual resources such as timber, wildlife, and wild products would 
have all been valued the same for all of the tribes, if one tribe lost 
more of one resource than another, then their per-acre compensation 
values would be different. Also, about half of the payments to four of 
the tribes were for rehabilitation, which had no direct correlation to 
the acreage flooded by the dams, and the consultant did not make the 
different dollar amounts comparable before performing his per-acre 
calculations. 

The tribes' consultant disagreed with our assumption that the tribes' 
final asking prices were based on the most up-to-date and complete 
information and that they were more realistic than their initial asking 
prices. Specifically, the consultant noted that the tribes' final 
asking prices "were made under conditions of extreme duress." We agree 
with the consultant that the tribes were not willing sellers of their 
land at the initial price that the government offered for their land. 
However, we disagree that this factor invalidates the use of the 
tribes' final asking prices. The drawn out negotiations for the Fort 
Randall Dam and the amounts of the tribes' final asking prices do not 
support the conclusion that the tribes simply capitulated and accepted 
whatever the government offered. For example, for 12 of the 15 
compensation components shown in tables 5, 6, and 7 of our report, the 
tribes' final asking prices were equal to, or higher than, their 
initial settlement proposals. We used a clearly defined and consistent 
approach, whereas, in his analysis, the consultant selected only 
certain numbers from a variety of tribal settlement proposals without 
providing any justification. While the tribes' consultant chose to use 
the Crow Creek Sioux tribes' offer from May 1957, he did not use the 
Lower Brule Sioux tribes' offer from the same time. Instead, the 
consultant chose to use the Lower Brule Sioux tribes' initial offer 
from 3 years earlier--July 1954--without any explanation. Furthermore, 
rather than consistently using the Lower Brule Sioux tribes' July 1954 
offer, the consultant used the tribes' rehabilitation offer from April 
1957, again without any explanation. 

The tribes' consultant correctly points out that only three of the 
seven tribes have received additional compensation consistent with the 
ranges calculated in our two prior reports. Until this report, the 
Congress had only asked us to review these three tribes' additional 
compensation requests, and, each time, the Congress provided additional 
compensation within the ranges we calculated. Furthermore, our two 
prior reports dealt with the three highest tribal claims for additional 
compensation--all over $90 million--whereas, the four tribes that 
obtained additional compensation based on a per-acre calculation were 
all less than $40 million, and we were not asked to review those 
requests. As noted in this report, although the additional compensation 
already provided to the tribes in 1996 and 1997 was calculated on a per-
acre basis, by coincidence, for the Lower Brule Sioux tribe it was 
within the range we would have proposed and for the Crow Creek Sioux 
tribe it was above our range. As such, should the Congress rely on our 
analysis in this report and not provide these two tribes a third round 
of compensation, then the additional compensation provided to five of 
the seven tribes would generally be within the ranges we have 
calculated, leaving only two tribes that would have had their 
additional compensation calculated based on a per-acre analysis and not 
analyzed by GAO. Accordingly, we believe our approach would provide 
more consistency among the tribes. 

It is important to note that both the consultant's analysis and the two 
bills pending in the 109TH Congress state that the additional 
compensation amounts for the Crow Creek Sioux and Lower Brule Sioux 
tribes are based on a methodology deemed appropriate by GAO. We do not 
believe our analysis supports the additional compensation claims. We 
recognize that compensation issues can be a sensitive, complex, and 
controversial. Ultimately, it is up to the Congress to make a policy 
determination as to whether additional compensation should be provided 
and, if so, how much it should be. We amended our observations to 
reflect this reality. 

We are sending copies of this report to interested congressional 
committees, the Secretary of the Interior, the tribes' consultant, the 
Crow Creek Sioux and Lower Brule Sioux tribes, and other interested 
parties. We will also make copies available to others upon request. In 
addition, the report will be available at no charge on the GAO Web site 
at [Hyperlink, http://www.gao.gov]. 

If you or your staff have any questions about this report, please 
contact me at (202) 512-3841 or nazzaror@gao.gov. Contact points for 
our Offices of Congressional Relations and Public Affairs may be found 
on the last page of this report. GAO staff who made major contributions 
to this report are listed in appendix VI. 

Signed by: 

Robin M. Nazzaro: 
Director, Natural Resources and Environment: 

[End of section] 

Appendix I: Scope and Methodology: 

To assess the consultant's methods and analysis for determining 
additional compensation for the Crow Creek Sioux and Lower Brule Sioux 
tribes as a result of the flooding of 38,000 acres of their land and 
resources by the installation of the Fort Randall and Big Bend Dams, we 
used standard economic principles and the analysis we conducted in our 
two prior reports on additional compensation. We met with the tribes' 
consultant to determine how he used the method that we suggested the 
Congress adopt as the basis for granting additional compensation to 
other tribes and reviewed additional information he provided on how he 
arrived at his proposed compensation amounts. 

In order to ensure that we obtained and reviewed all relevant data, we 
conducted a literature search for congressional, agency, and tribal 
documents at the National Archives and the Department of the Interior's 
(Interior) library. We used original documents to learn about the 
negotiation process and to identify the appraised land prices and 
various proposed settlement amounts. As a result, we determined that 
these data were sufficiently reliable for purposes of this report. 
Specifically, from the National Archives, we reviewed legislative files 
containing proposed House and Senate bills, public laws enacted, House 
and Senate reports, and hearings held on compensation for the tribes. 
In addition, from Interior's library, we obtained Missouri River Basin 
Investigations Unit documents to review information on early damage 
estimates as a result of installation of the Fort Randall Dam and on 
details regarding both informal and formal negotiations between the 
federal government and the two tribes. We also met with representatives 
of the two tribes on their reservations in South Dakota to (1) discuss 
the analysis, the actions taken with the compensation previously 
obtained, and plans for the additional compensation amounts requested 
and (2) review any records they might have on earlier compensation 
negotiations. The tribes, however, did not have any documentation on 
tribal discussions or decisions regarding either compensation 
negotiations or offers that took place in the 1950s and 1960s. 

We performed our work from October 2005 to April 2006 in accordance 
with generally accepted government auditing standards. 

[End of section] 

Appendix II: Map of Tribes and Dams on the Missouri River: 

[See PDF for image]  

[End of figure] 

[End of section] 

Appendix III: Timeline of Settlement Negotiations and Compensation for 
the Crow Creek Sioux Tribe: 

[See PDF for image] 

[End of figure] 

[End of section] 

Appendix IV: Timeline of Settlement Negotiations and Compensation for 
the Lower Brule Sioux Tribe: 

Morgan Angel: 
Associates, LLC: 

April 27, 2006: 

Ms. Robin M. Nazarro: 
Director, Natural Resources and Environment: 
U.S. Government Accountability Office: 
Washington, D.C. 20548: 

Dear Ms. Nazarro: 

Thank you for providing me with the opportunity to review and comment 
on the Draft Report entitled Indian Issues: Analysis of the Crow Creek 
Sioux and Lower Brule Sioux Tribes' Additional Compensation Claims (GAO-
06-517) (hereinafter referenced as GAO Draft Report). These comments 
are submitted on behalf of the Lower Brule Sioux Tribe and the Crow 
Creek Sioux Tribe, both sovereign treaty Tribes, myself, and counsel. 
We appreciate this opportunity to comment on your GAO Draft Report, the 
time you have invested in your review, and the field trip your staff 
made to South Dakota to discuss the issues with tribal representatives. 

In the response that follows I have (1) acknowledged an error in my 
calculations; (2) proposed a range of additional compensation, 
including the Current Bills, per the suggestion in the GAO Draft 
Report; and (3) discussed the difficult issue of "asking price" in the 
context of this particular set of facts. The main point that I make is 
that there has been no uniform or consistent approach, method, formula, 
or criteria for providing additional compensation to the Missouri River 
Tribes impacted by the Pick-Sloan dam projects. Congress has used other 
approaches more often than it has followed the range methodology 
initially suggested by the General Accounting Office (GAO) in 1991 (now 
the Government Accountability Office but still the GAO). The result is 
that there remains a wide disparity in the total compensation that 
seven Tribes have received from Congress. We therefore seek your 
guidance and cooperation in proposing approaches that might solve this 
inequity and establish parity among the Tribes. 

Calculation Error: 

The GAO Draft Report states that my calculations incorrectly adjusted 
for the additional compensation that the Crow Creek Sioux Tribe 
received in 1996 and the Lower Brule Sioux Tribe in 1997. Thank you. I 
acknowledge that I did, indeed, error by compounding the interest on 
the differences through 2003 and then subtracting the amount of 
additional compensation. I should have subtracted the amount of 
additional compensation from the accrued value in 1996 for the Crow 
Creek Sioux and that in 1997 for the Lower Brule Sioux. If there was a 
difference remaining on those dates, I should have compounded the 
interest on that difference from that time to the present to establish 
the total amount of additional compensation due. I have used this 
corrected approach in calculating those compensation alternatives 
proposed below that are based on annual corporate bond yields. 

Range of Compensation: 

The GAO Draft Report is critical of the fact that I only proposed a 
single estimate of additional compensation instead of a range of 
possibilities, based on different computations and comparisons. It 
states that I deviated from the approach that the GAO suggested to 
Congress on two prior occasions "by providing a single estimate of 
additional compensation instead of a range (p. 5)." In response to this 
criticism, I have developed below a range of compensation that includes 
four alternatives. I have not included an alternative based on annual 
inflation rates rather than the annual corporate bond rate or 
compensation per-acre value because there is no precedent for Congress 
using the inflation rate as a basis for any of the additional 
compensation it has awarded to the seven Tribes since 1992. The four 
alternatives proposed below provide a range of additional compensation 
for the Lower Brule Sioux Tribe from $20.6 million to $432.5 million 
and for the Crow Creek Sioux Tribe from $11.5 million to $93.8 million. 

TABLE 1: Alternative Range of Additional Compensation: 

Alternatives: Lower Brule: 
I. Based on Parity with Cheyenne River Sioux: $20,690,688; 
II. Based on Current Bills Adjusted: $129,822,085; 
III. Based on Parity with Santee Sioux of Nebraska:  $138,368,976; 
IV. Based on Highest Tribal Asking Prices: $432,547,830.  

Alternatives: Crow Creek: 
I. Based on Parity with Cheyenne River Sioux: $11,572,974; 
II. Based on Current Bills Adjusted: $69,222,084; 
III. Based on Parity with Santee Sioux of Nebraska:  $93,893,940; 
IV. Based on Highest Tribal Asking Prices: $70,685,862. 

[End of table] 

My book Damned Indians: The Pick-Sloan Plan and the Missouri River 
Sioux (University of Oklahoma Press, 1982, 1994) has provided much of 
the factual basis for the additional compensation Congress extended to 
six Sioux Tribes between 1992 and 2002. In that work, I pointed out 
that Congress was inconsistent and inequitable in the original 
settlements it provided to the Sioux Tribes between 1954 and 1962. 
While the Cheyenne River Sioux Tribe sustained the most damages, the 
Standing Rock Sioux Tribe received the best settlement. The Yankton 
Sioux Tribe suffered the least disruption (although one of its 
communities, White Swan, was never replaced) and also received the 
worst settlement. The Crow Creek and Lower Brule Sioux Tribes were 
dealt with most rudely in the Fort Randall negotiations, since 
settlement did not take place until after the dam was constructed and 
rehabilitation was deferred for another four years. However, these 
Tribes received what was comparatively the most generous funding for 
rehabilitation as part of the Big Bend settlement. As I also noted in 
Dammed Indians, "none of the [Sioux] Tribes considered their 
compensation to be adequate, but all suffered considerably less and 
received considerably more than the Fort Berthold Indians [Three 
Affiliated Tribes] had (p. 134)." 

One of the goals of the Tribes in seeking additional compensation from 
Congress was that the inconsistency and inequity of the initial 
settlements could be corrected in such a way as to achieve parity among 
the Tribes. With the exception perhaps of the Santee Sioux Tribe of 
Nebraska, all of the Tribes suffered the same kinds of damages. They 
all lost a majority of their natural resources and reservation 
infrastructure. Similarly, they all were forced to remove, relocate, 
and reestablish a significant proportion of their tribal membership and 
all or a large portion of their population centers. More importantly, 
they all lost a significant part of their traditional culture, 
including herbs and plants used for medicinal and religious purposes, 
when their riverine environment was inundated. 

Since 1992, Congress has provided additional compensation to seven 
Tribes impacted by the Pick-Sloan projects. Yet, as demonstrated in 
Table 2 below, Congress has not achieved parity or equity in its total 
compensation to these Tribes. 

TABLE 2: Comparison of the Total Compensation Provided to Seven Tribes 
Impacted by the Missouri River Pick-Sloan Dam Projects on a Per-Acre 
Basis: 

Tribe(s): Three Affiliated Tribes of Fort Berthold, ND:
Dam(s): Garrison; 
Acreage Lost: 152,360a; 
Total Compensation: $161,805,625; 
Compensation Per acre: $1,062. 

Tribe(s): Standing Rock Sioux, ND and SD; 
Dam(s): Oahe; 
Acreage Lost: 55,994a; 
Total Compensation: $102,946,553; 
Compensation Per acre: $1,839. 

Tribe(s): Crow Creek Sioux, SD; 
Dam(s): Fort Randall, Big Bend;
Acreage Lost: 15, 597a; 
Total Compensation: $33,437,614; 
Compensation Per acre: $2,144. 

Tribe(s): Lower Brule Sioux, SD; 
Dam(s): Fort Randall, Big Bend; 
Acreage Lost: 22,296a; 
Total Compensation: $43,645,988; 
Compensation Per acre: $1,958. 

Tribe(s): Cheyenne River Sioux, SD; 
Dam(s): Oahe; 
Acreage Lost: 104,420a; 
Total Compensation: $301,366,972; 
Compensation Per acre: $2,886. 

Tribe(s): Yankton Sioux, SD;
Dam(s): Fort Randall; 
Acreage Lost: 2,851a; 
Total Compensation: $23,251,253; 
Compensation Per acre: $8,155. 

Tribe(s): Santee Sioux, NE; 
Dam(s): Gavins Point; 
Acreage Lost: 593a; 
Total Compensation: $4,841,010; 
Compensation Per acre: $8,164. 

[End of table] 

The tribal group that suffered the most damages, the Three Affiliated 
Tribes of Fort Berthold, has received the least amount of compensation 
on a per-acre basis ($1,062 per acre). At the same time, the Tribe that 
suffered the least damages, the Santee Sioux of Nebraska, has received 
the highest amount of compensation on a per-acre basis ($8,164 per 
acre). 

Congress has used three different formulas in providing additional 
compensation to the seven Tribes since 1992. It applied the GAO- 
recommended range of compensation to establish additional trust funds 
for the Three Affiliated Tribes and the Standing Rock Sioux in 1992 and 
the Cheyenne River Sioux in 2000. Yet, Congress was not consistent with 
the Tribes in applying the same point of the range. The additional 
compensation provided the Standing Rock Sioux Tribe was towards the 
lower end of the GAO suggested range. In contrast, that provided the 
Three Affiliated Tribes and the Cheyenne River Sioux Tribe was at the 
very highest range suggested by the GAO. The Cheyenne River Sioux 
legislation in 2002 had the effect of skewing the additional 
compensation that had been appropriated for six other Missouri River 
Tribes prior to that time. 

Congress used a different formula, one based on the per-acre value of 
the 1992 legislation, to compensate the Crow Creek Sioux in 1996 and 
the Lower Brule Sioux in 1997. It then used a separate formula, based 
on a per-acre valuation with a multiplier for rehabilitation, to 
compensate the Yankton and Santee Sioux Tribes in 2002. Thus, Congress 
has used a per-acre basis for additional compensation to the Missouri 
River Tribes more often (four times) than it has used the GAO- 
recommended range methodology (three times). As noted above, it has not 
been consistent in the application of the GAO suggested range, 
providing additional compensation to two Tribes at the highest end of 
the range and to another Tribe at the lower end of the range. 

The larger per-acre compensation provided to the Yankton and Santee 
Sioux Tribes may be justified by the fact that these Tribes were not 
given an opportunity to receive payment from Congress for direct 
damages or rehabilitation at the time their lands were taken. Neither 
does it appear that these Tribes would be eligible for the GAO- 
recommended range of compensation because they never made any tribal 
offers for settlement at the time of taking. 

The total compensation package provided to the Cheyenne River Sioux was 
approximately 54 percent higher than that provided to the next highest 
recipient, the Three Affiliated Tribes, although the Fort Berthold 
Tribes lost approximately 32 percent more land. The only conclusion 
that can be drawn from this analysis is that Congress has been as 
erratic in providing additional compensation to the seven Tribes 
between 1992 and 2002 as it was in providing initial settlements with 
six of these Tribes between 1946 and 1962. The result is that the total 
compensation to Tribes suffering similar damages has not been equitable 
and has not achieved parity among them. 

Compensation Alternative I: Parity with the Cheyenne River Sioux 
Settlement of 2000 on a Per Acre Basis: 

As one alternative for equitable additional compensation, the Crow 
Creek and Lower Brule Sioux Tribes request parity with the compensation 
on a per-acre basis provided to the Cheyenne River Sioux Tribe. 
Congress has established the precedent for providing additional 
compensation to the Missouri River Tribes on a per-acre basis in the 
trust funds it established for the Crow Creek Sioux Tribe in 1996, the 
Lower Brule Sioux Tribe in 1997, and the Yankton Sioux Tribe and Santee 
Sioux Tribe of Nebraska in 2002. 

TABLE 3: Comparison of Total Compensation Provided to the Crow Creek 
and Lower Brule Sioux Tribes with that Provided to the Cheyenne River 
Sioux Tribe on a Per-Acre Basis: 

Tribe(s): Cheyenne River Sioux, SD;  
Dam(s): Oahe; 
Acreage Lost: 104,420a; 
Total Compensation: $301,366,972; 
Compensation Per Acre: $2,886.  

Tribe(s): Crow Creek Sioux, SD; 
Dam(s): Fort Randall, Big Bend; 
Acreage Lost: 15,597a; 
Total Compensation: $33,437,614; 
Compensation Per Acre: $2,144. 

Tribe(s): Lower Brule Sioux, SD 
Dam(s): Fort Randall, Big Bend; 
Acreage Lost: 22,296a; 
Total Compensation: $43,645,988; 
Compensation Per Acre: $1,958. 

[End of table] 

Crow Creek Sioux: 

The difference between the overall compensation provided to the Crow 
Creek Sioux Tribe and that provided to the Cheyenne River Sioux Tribe 
is $742 per acre. Multiplying this difference by the number of acres 
lost by the Crow Creek Sioux (15,597) results in a total of 
$11,572,974. This is the amount of additional compensation necessary to 
provide the Crow Creek Sioux Tribe parity with the overall compensation 
provided to the Cheyenne River Sioux Tribe on a per-acre basis. 

Lower Brule Sioux: 

The difference between the overall compensation provided to the Lower 
Brule Sioux Tribe and that provided to the Cheyenne River Sioux Tribe 
is $928 per acre. Multiplying this difference by the number of acres 
lost by the Lower Brule Sioux (22,296) results in a total of 
$20,690,688. This is the amount of additional compensation necessary to 
provide the Lower Brule Sioux Tribe parity with the overall 
compensation provided to the Cheyenne River Sioux on a per-acre basis. 

This alternative provides the lowest range of compensation for both 
Tribes. 

Compensation Alternative II: Based on Present Bills Adjusted: 

A second alternative range is to use the base numbers of difference in 
the Current Bills between the asking prices considered by the Tribes to 
represent the "fair market values" of their damages and the amounts 
received from Congress in initial settlements. 

TABLE 4: Compensation Based on Present Bill Adjusted to Reflect 
Accurate Interest Rate Calculation: 

Fort Randall Costs and Expenses and Difference; 
Crow Creek: $709,208.61; 
Lower Brule: $1,170,667.00. 

Fort Randall Difference in 1996-1997 Dollars; 
Crow Creek: $13,368,444.64; 
Lower Brule: $23,688,898.72. 

Big Bend Costs and Expenses and Rehabilitation Difference; 
Crow Creek: $3,360,403.50; 
Lower Brule: $5,550,233.00. 

Big Bend Difference in 1996-1997 Dollars; 
Crow Creek: $53,392,328.20; 
Lower Brule: $94,588,086,19. 

Total Difference in 1996-1997 Dollars; 
Crow Creek: $66,760,772.84; 
Lower Brule: $118,276,984.90. 

Minus Amount Provided by Congress, 1996/1997; 
Crow Creek: - $27,500,000.00; 
Lower Brule: - $39,300,000.00. 

Difference Remaining in 1996-1997; 
Crow Creek: $39,260,772.84; 
Lower Brule: $78,976,984.90. 

Difference Remaining in 2006 Dollars**;  
Crow Creek: $69,222,084; 
Lower Brule: $129,822,085. 

*Difference in 1996-1997 Dollars and 2006 Dollars is calculated by 
adding to the principal difference the annual average rate of interest 
earned on investments in AAA corporate bonds during the time period. 
**Rounded to nearest dollar. 

[End of table] 

For the calculations of these differences see Appendix 1 (A-D). 

Crow Creek Sioux: 

If the compounded corporate interest rate value of the base amount is 
adjusted to reflect the $27.5 million compensation received by the Crow 
Creek Sioux Tribe in 1996, the result indicates that there was still a 
difference of $39.2 million at the time. If the annual corporate 
interest rate is added to the principal amount of $39.2 million from 
1996 through 2005, the present value of the difference is $69,222,084. 
This alternative approach would provide the Crow Creek Sioux Tribe with 
more compensation than the Tribe would receive from a settlement based 
on the Cheyenne River per-acre amount, but slightly less than it would 
receive from one based on the Santee Sioux per-acre amount and 
significantly less than one based on the Tribe's highest asking prices. 

Lower Brule Sioux: 

A similar adjustment to the accrued value of Lower Brule compensation 
based on asking prices in the Current Bills indicates that a difference 
of $78.9 million still remained after Congress awarded the Tribe $39.3 
million in additional compensation in 1997. If the annual corporate 
interest rate is added to the principal amount of $78.9 million from 
1997 through 2005, the present value of the difference is 
$129,822,085.00. This alternative approach would provide the Lower 
Brule Sioux Tribe with significantly more compensation than the Tribe 
would receive from a settlement based on the Cheyenne River per-acre 
amount, but less than it would receive from one based on the Santee 
Sioux per-acre amount and significantly less than one based on the 
Tribe's highest asking prices. 

Compensation Alternative III: Parity with the Santee Sioux Settlement 
of 2002 on a Per Acre Basis: 

As an alternative to parity with the Cheyenne River Sioux settlement, 
the Crow Creek and Lower Brule Sioux Tribes request parity with the 
Santee Sioux settlement of 2002. The Santee Sioux Tribe of Nebraska 
received the highest amount of total compensation on a per-acre basis 
($8,164 per acre). Parity with this per-acre amount would result in a 
higher range of compensation; the highest range for the Crow Creek 
Sioux and the second highest for the Lower Brule Sioux. As noted 
previously, Congress has established the precedent for providing 
additional compensation to the Missouri River Tribes on a per-acre 
basis in the trust funds it established for the Crow Creek Sioux Tribe 
in 1996, the Lower Brule Sioux Tribe in 1997, and the Yankton Sioux 
Tribe and Santee Sioux Tribe of Nebraska in 2002. 

TABLE 5: Comparison of the Total Compensation Provided to the Crow 
Creek and Lower Brule Sioux Tribes with that Provided to the Santee 
Sioux Tribe on a Per-Acre Basis: 

Tribe(s): Santee Sioux, NE;  
Dam(s): Gavins Point; 
Acreage Lost:  593a; 
Compensation Per Acre: $4,841,010; 
Total Compensation:  $8,164. 

Tribe(s): Crow Creek Sioux, SD;  
Dam(s): Fort Randall, Big Bend;  
Acreage Lost:  15,597a; 
Compensation Per Acre: $33,437,614; 
Total Compensation:  $2,144.  

Tribe(s): Lower Brule Sioux, SD; 
Dam(s): Fort Randall, Big Bend;  
Acreage Lost:  22,296a; 
Compensation Per Acre: $43,645,988; 
Total Compensation:  $1,958. 

[End of table] 

Crow Creek Sioux: 

The difference between the overall compensation provided to the Crow 
Creek Sioux Tribe and that provided to the Santee Sioux Tribe is $6,020 
per acre. Multiplying this difference by the number of acres lost by 
the Crow Creek Sioux (15,5 97) results in a total of $93,893,940. This 
is the amount of additional compensation necessary to provide the Crow 
Creek Sioux Tribe parity with the overall compensation provided to the 
Santee Sioux Tribe on a per-acre basis. 

Lower Brule Sioux: 

The difference between the overall compensation provided to the Lower 
Brule Sioux Tribe and that provided to the Santee Sioux Tribe is $6,206 
per acre. Multiplying this difference by the number of acres lost by 
the Lower Brule Sioux (22,296) results in a total of $138,368,976. This 
is the amount of additional compensation necessary to provide the Lower 
Brule Sioux Tribe parity with the overall compensation provided to the 
Santee Sioux on a per-acre basis. 

Compensation Alternative IV: Based on Highest Tribal Asking Prices: 

A fourth alternative for additional compensation to the Crow Creek and 
Lower Brule Sioux Tribes would be to base it on the difference between 
the highest amounts asked for by the Tribes for direct and indirect 
damages, negotiating expenses, and rehabilitation and the actual 
amounts provided to the Tribes by Congress. The Table below indicates 
that the total compensation based on these differences would be 
$70,685,862 for the Crow Creek Sioux Tribe and $432,547,830 for the 
Lower Brule Sioux Tribe. This is the highest range for the Lower Brule 
Sioux and the second highest range for the Crow Creek Sioux. 

TABLE 6: Basis for Parity Compensation when Asking Price is Based on 
"Highest Asking Prices" Offered by the Tribes (1954-1961): 

Fort Randall Costs and Expenses Difference; 
Crow Creek:  $752,759.00; 
Lower Brule: $1,826,045.00. 

Fort Randall Difference in 1996-1997 Dollars; 
Crow Creek:  $14,190,720.00; 
Lower Brule: $36,923,065.00. 

Big Bend Costs and Expenses and Rehabilitation Difference; 
Crow Creek:  $3,360,903.00; 
Lower Brule: $15,579,898.00. 

Big Bend Difference in 1996-1997 Dollars; 
Crow Creek:  $53,400.265.00; 
Lower Brule: $265,515,472.00. 

Total Difference in 1996-1997 Dollars; 
Crow Creek:  $67,590,985.00; 
Lower Brule: $302,438,537.00. 

Minus Amount Provided by Congress, 1996/1997;  
Crow Creek:  - $27,500,000.00; 
Lower Brule: - $39,300,000.00. 

Difference Remaining in 1996-1997; 
Crow Creek:  $40,090,985.00; 
Lower Brule: $263,138,537.00. 

Difference Remaining in 2006 Dollars**; 
Crow Creek:  $70,685,862.00; 
Lower Brule: $432,547,830.00. 

*Difference in 1996-1997 Dollars and 2006 Dollars is calculated by 
adding to the principal difference the annual average rate of interest 
earned on investments in AAA corporate bonds during the time period. 
**Rounded to nearest dollar.  

For the calculation of these differences see Appendix 2 (A-D). 

[End of table] 

The following table outlines the factual basis for determination of the 
highest tribal asking prices. 

TABLE 7: Summary of Amounts and Dates of Highest Tribal Asking Prices: 

[See PDF for Image]

[End of table] 

Asking Prices: 

The GAO Draft Report concludes that I deviated from the approach used 
in prior GAO reports on additional compensation for Tribes impacted by 
the Missouri River Pick-Sloan dam projects "by not using the Tribes' 
final asking price as a starting point of the analysis (p. 5)." From my 
perspective, the GAO did not clarify in its previous reports that the 
final tribal asking price was the starting point of analysis. The GAO's 
1998 report on additional compensation for the Cheyenne River Sioux, 
for example, does not make this clear. It suggested that the Congress 
"consider using the tribe's request for compensation at the time of the 
taking" of their lands. For the Crow Creek Sioux and Lower Brule Sioux 
Tribes that "time of taking" was in not in 1957 and 1961, when the 
Tribes were compelled to lower their asking price a final time. Rather, 
it was in 1952 and 1960 when the Army Corps of Engineers took title to 
their lands through condemnation. 

If the GAO used the final asking price as the starting price of 
analysis in its prior reports, then we can no longer claim that the 
compensation amounts in the Current Bills "are based on a methodology 
deemed appropriate by GAO (p. 4)." This is because I did not use the 
final asking prices as the starting point for determining differences, 
as I explain below. However, my calculations did use the approach 
suggested by GAO in the two previous reports for establishing the high 
range of compensation based on the annual yields of AAA corporate 
bonds. 

The GAO Draft Report indicates that the GAO used the tribe's final 
asking price "because we believed that it represented the most up-to- 
date and complete information and that their final position was more 
realistic than their initial asking price, which may have been inflated 
for negotiating purposes." I thoroughly disagree with this assumption. 

I did not use the final tribal asking prices as a starting point 
because my historical research made it clear that those final tribal 
offers were not "more realistic," as the GAO Draft Report asserts. To 
the contrary, my findings revealed that these so-called "final offers" 
were made under conditions of extreme duress. The GAO's statement in 
its 1998 Cheyenne River Sioux report that "the Tribes may not have been 
willing sellers of their land" is an understatement. The historical 
record makes it clear that Tribal representatives were continually 
pressured to resign themselves to the Government's "take it or leave 
it" posture. 

Neither the Crow Creek Sioux Tribe nor the Lower Brule Sioux Tribe was 
consulted prior to enactment of the Pick-Sloan Plan or the initial 
construction of the dams that impacted them. Congress in 1952 
stipulated by law that negotiations with the Tribes would not be 
allowed to interfere with the scheduled construction of the dam 
projects. Thus, the Tribes were not in a position to hold firm to an 
asking price or walk out of negotiations if they were dissatisfied. 
Their lands were going to be flooded, and their tribal members 
relocated whether or not they agreed to settlement terms. The 
Government negotiators held all the advantages, but chief among those 
was the leverage of the "impending flood." The Tribes' best hope was to 
receive funding before the catastrophic events took place. But, in the 
end, the Crow Creek and Lower Brule Sioux Tribes were not afforded the 
opportunity to see the realization of even that hope. 

By the time of the Tribes' "final offers" in March 1958, which the 
draft report uses as a starting point for analysis, the damages from 
the Fort Randall project had already been incurred. The Army had closed 
the floodgates of the dam in 1952 and had proceeded to condemn tribal 
lands illegally without Congressional authorization. Tribal members had 
been forced to relocate almost three years earlier without funds to 
cover their moving expenses. The Fort Randall Dam had been completed 
and dedicated nineteen months earlier. This was obviously not a 
negotiating situation in which the parties had equal standing. In 
essence, the Tribes had no bargaining power. 

The negotiations with the Tribes for settlement of Big Bend project 
damages proceeded on a more favorable timetable. However, at the time 
of the Tribe's "final offers" in March 1961, the tribal negotiators 
were still under duress as a result of the obvious inevitability of 
both the project's negative impact on their people and communities and 
the Government's ability to dictate the terms of settlement. A year 
before this, in March 1960, the Corps of Engineers had again illegally 
condemned tribal land. The groundbreaking for the Big Bend project had 
taken place two months after tribal lands were condemned. The Tribes 
had not received rehabilitation funds for the reestablishment of tribal 
members, some of whom had been forced to relocate more than eight years 
before. The prospect of dismantling the reservations' primary 
communities lay immediately ahead. 

Because of these circumstances, I did not use the Tribes' final offers 
as a basis for additional compensation. Instead, I used tribal offers 
that were based on estimates by professional appraisers of the "fair 
market value" of tribal losses. In reviewing the historical 
documentation, I did not gain the sense at any time that initial or 
subsequent tribal asking prices were "inflated," as the GAO Draft 
Report assumes (p. 5), with the view in mind that they would be "dealt 
down" in later negotiations. 

I did not use the highest offers in every case because I believed that 
some of those offers were skewed by special circumstances. For example, 
in May 1957, the Lower Brule Sioux Tribe requested $16,377,981 for 
tribal rehabilitation in exchange for its agreement to accept the 
termination of its Federal status. This offer came during the so-called 
"termination era" when many in Congress, as well as some top Government 
policymakers, sought to terminate the Federal relationship with as many 
Tribes as possible. The Lower Brule Sioux Tribe was reacting to the 
pressure it felt to conform to this policy. The fact that they were the 
only Tribe ever to volunteer to have their Federal relationship 
terminated reflected the desperation they felt generally about the 
negative impacts of the Fort Randall project and their negotiating 
position in particular. 

The Federal status of several Tribes was in fact terminated, but 
Congress later disavowed this policy and restored most of the 
terminated Tribes to their former status as federally recognized tribal 
entities. The Government never seriously considered Lower Brule to be 
among the Tribes considered eligible for termination, and there was 
significant opposition to the proposal within the Tribe itself. As a 
result, the offer was subsequently taken off the table. 

Rehabilitation: 

In regard to the issue of rehabilitation funds, the GAO Draft Report 
states that: 

While rehabilitation was the largest component of the Tribes' 
settlement proposals, we believe it should be considered separately 
from the comparison for damages because rehabilitation was not directly 
related to the damage caused by the dams. Funding for rehabilitation, 
which gained support in the late-1940's, was meant to improve the 
tribe's social and economic development and prepare some of the Tribes 
for the termination of federal supervision (p. 5). 

I wholeheartedly disagree with this conclusion. It is true that general 
rehabilitation funding for Tribes was a component of Federal Indian 
policy beginning in the late 1940's and was part of the overall 
termination policy. However, in the context of the settlements made 
with Tribes impacted by the Pick-Sloan projects, Congress has 
consistently demonstrated the understanding that funds for 
rehabilitation were directly linked to the damages caused by the dams. 

In establishing statutory guidelines for negotiations with the Cheyenne 
River and Standing Rock Sioux Tribes in 1950, Congress provided that 
the final settlements would pay the costs of "reestablishing the tribe 
. so that their economic, social, religious, and community life can be 
reestablished and protected." It was not expected that this provision 
could be accomplished solely from compensation provided for direct and 
indirect damages. In 1949, Congress provided funding for rehabilitation 
as part of an overall settlement with the Three Affiliated Tribes for 
damages caused by the Garrison Dam project. Subsequent Congressional 
settlements with four downriver Sioux Tribes between 1954 and 1962 
followed suit by providing rehabilitation funding as part of the 
overall compensation package. 

The largest portion of the rehabilitation funds provided in the initial 
settlements was used to improve the living conditions of families 
directly impacted by the dams. The second largest rehabilitation 
expenditure went for the reestablishment of farms and ranches. These 
new enterprises had to adjust to the fact that the reservoirs had 
flooded the most fertile soil and the best open grazing areas and 
natural shelters. The entire reservations were dependent on the natural 
resources of the bottomlands along the Missouri River. Most of the 
rehabilitation money was used to help tribal members adjust to the loss 
of those resources and the reservation infrastructure. In this context, 
rehabilitation was directly linked to the damages incurred and was 
therefore distinct from general rehabilitation funding that was 
appropriated for the social and economic approval of Tribes that had 
not suffered catastrophic losses of their environment. 

Between 1992 and 2002, Congress provided additional compensation to 
seven Tribes impacted by Pick-Sloan projects. In each of these cases, 
it allowed rehabilitation funding to be considered as part of the basis 
for additional appropriations that established tribal trust funds. In 
the case of the Yankton and Santee Sioux, Congress in 2002 established 
a trust fund that compensated these Tribes for the fact that they had 
not received rehabilitation funding as part of their original 
settlements. This additional compensation was based on a formula that 
provided 458 percent more for rehabilitation than was paid for direct 
damages. This percentage was the average ratio of rehabilitation to 
direct damage amounts previously paid by Congress to five other Tribes 
impacted by Pick-Sloan projects. 

In 1992, Congress provided additional compensation to the Three 
Affiliated Tribes and the Standing Rock Sioux Tribe, and in 2000 to the 
Cheyenne River Sioux Tribe, based on a range of compensation suggested 
by the GAO. In both of these cases, the GAO included rehabilitation, 
along with direct and indirect damages and negotiating expenses, as 
part of the tribal asking prices that served as the basis of difference 
between the amounts the Tribes requested and those they received from 
Congress in initial settlements. 

I am not aware that the GAO has ever suggested separate consideration 
for rehabilitation funds previous to this GAO Draft Report. Congress 
has clearly established solid precedent for including rehabilitation as 
part of the basis for additional compensation. 

Summary and Conclusion: 

Congress has not maintained uniformity or consistency in providing 
additional compensation to the Missouri River Tribes impacted by the 
Pick-Sloan dam projects. It has used other approaches more often than 
it has followed the range methodology initially suggested by the GAO in 
1991. In the three cases where it did utilize the GAO methodology, 
Congress was not consistent in applying the highest range of 
compensation. As a result, there remains a wide disparity in the total 
compensation that seven Tribes have received from Congress: 

There are probably many approaches that could be considered to solve 
the problem of the continuing inconsistency and inequity of the several 
statutes that Congress has enacted to compensate the Missouri River 
Tribes for their considerable damages. My response to the GAO Draft 
Report has proposed a range of four alternative methods for providing 
additional compensation to the Lower Brule and Crow Creek Sioux Tribes. 
Two of those methods would achieve parity with Sioux Tribes that have 
received more generous settlements. Both my clients, the Lower Brule 
and Crow Creek Sioux Tribes, and I would appreciate the GAO's extensive 
evaluation of the alternative methods of compensation proposed in this 
letter. We also request that your Final Report provide guidance to 
Congress and to us by suggesting alternative approaches that would both 
solve the problem of the lack of parity in the settlements and bring 
final closure to the ongoing issue of additional compensation for Pick- 
Sloan damages. 

I again thank you for giving me the opportunity to comment on the GAO 
Draft Report. I would also like to express my appreciation for the open 
dialogue your staff has maintained throughout this review. 

Sincerely, 

Signed by: 

Michael L. Lawson: 
Ph.D. Senior Associate: 

The following are our comments on the Crow Creek Sioux and Lower Brule 
Sioux tribes' consultant's letter dated April 27, 2006. 

GAO Comments: 

1. The tribes' consultant did not calculate a range of additional 
compensation as we suggested in our report. Our approach is to provide 
the Congress with a range of possible additional compensation based on 
the difference between the amounts the tribes believed was warranted at 
the time of the taking and the final settlement amount. We then 
adjusted the differences using the inflation rate for the lower end of 
the range and the corporate bond rate for the higher end. In deciding 
not to calculate a low-end value using the inflation rate, the 
consultant stated that "…there is no precedent for Congress using the 
inflation rate as a basis for any additional compensation it has 
awarded to the seven Tribes since 1992." While the consultant is 
correct in stating that the Congress has not provided any tribe with 
additional compensation at the lowest value in the ranges we have 
calculated, there is a precedent for the Congress providing an amount 
less than the highest value. In 1992, the Congress authorized $90.6 
million in additional compensation for the Standing Rock Sioux tribe, 
which was toward the low end of the possible compensation range we 
calculated of $64.5 million to $170 million. Although the Congress did 
not select the lowest value, having a lower value provided the Congress 
with a range from which to select. We did not suggest that the 
consultant should propose a range of additional compensation using four 
different approaches. 

2. Determining whether additional compensation is warranted is a policy 
decision for the Congress to decide. Nonetheless, if the Congress 
relies on our analysis in this report and does not provide a third 
round of compensation to the Crow Creek Sioux and Lower Brule Sioux 
tribes, the additional compensation provided to five of the seven 
tribes--the Cheyenne River Sioux tribe, the Crow Creek Sioux tribe, the 
Lower Brule Sioux tribe, the Standing Rock Sioux tribe, and the Three 
Affiliated Tribes of the Fort Berthold Reservation--would generally 
fall within the ranges we calculated using our approach, thereby 
leaving only two tribes--the Santee Sioux tribe and the Yankton Sioux 
tribe--that would have had their additional compensation calculated on 
a per-acre basis and not reviewed by GAO. As a result, we believe using 
our approach, which is based on the amounts that the tribes believed 
were warranted at the time of the taking, would provide more 
consistency among the tribes, rather than less. 

3. The tribes' consultant did not make the amounts from different years 
comparable before making his per-acre calculations. The consultant did 
not adjust the original compensation amounts from 1947 through 1962 
before adding them with the additional compensation amounts from 1992 
through 2002. As a result, any comparisons made between the 
compensation amounts of the Crow Creek Sioux and Lower Brule Sioux 
tribes and other tribes, such as the Cheyenne River Sioux tribe or the 
Santee Sioux tribe, would be inaccurate. For example, for the Lower 
Brule Sioux tribe, the consultant added three amounts from 1958, 1962, 
and 1997 for a total of $43.6 million, without first adjusting the 
individual amounts to constant dollars. More importantly, we do not 
believe that an aggregate per-acre comparison among the tribes is 
appropriate. We agree with the tribes' consultant that the tribes all 
suffered similar damages, but similar does not mean exactly the same. 
Damages would have to be exactly the same among all tribes for there to 
be equal total compensation on a per-acre basis, and this was not the 
case. Products, such as buildings, timber, and wildlife, were valued 
differently depending on type and some tribes lost more of one resource 
than other tribes. As a result, their per-acre compensation values 
would be different. Also, about half of the payments to four of the 
tribes were for rehabilitation that was not directly linked to the 
acreage flooded by the dams. 

4. We disagree that the additional compensation authorized for the 
Cheyenne River Sioux tribe in 2000 had a "skewing" effect on the 
additional compensation provided to the four other tribes prior to that 
time. The additional compensation authorized for the Cheyenne River 
Sioux tribe fell within the range we calculated, as did the additional 
compensation authorized for the Three Affiliated Tribes of the Fort 
Berthold Reservation and the Standing Rock Sioux tribe. Our range was 
based on the amount the Cheyenne Rive Sioux tribe believed was 
warranted at the time of the taking. Furthermore, as our analysis in 
this report demonstrates, although the Crow Creek Sioux and Lower Brule 
Sioux tribes were provided with additional compensation in 1996 and 
1997 based on a per-acre analysis, the amounts were consistent with, or 
higher, than the ranges we calculated in this report. 

5. As the tribes' consultant noted in his comments, he did not use the 
tribes' highest offers in every case in his original analysis because 
he believed that some of those offers, such as the $16 million 
rehabilitation figure requested by the Lower Brule Sioux tribe, were 
skewed by special circumstances. However, the consultant uses these 
same highest asking prices in his fourth alternative, even though he 
believed them to be too unreasonable to include in his original 
analysis. 

6. The tribes' consultant is correct in pointing out that we did not 
use the exact phrase "final asking price" in our two prior reports. 
However, the ranges we calculated in our 1991 and 1998 reports were 
based on the final asking price of the tribes and their final 
settlements. We used the phrase "at the time of the taking" as a 
general phrase to denote the time period when the tribes' were 
negotiating with the government for compensation for the damages caused 
by the dams. It is not intended to refer to a specific date. 

7. We disagree with the tribes' consultant that tribal members were 
forced to relocate without funds for moving expenses. The tribes did 
receive initial funds based on the Missouri River Basin Investigations 
Unit appraisals to help cover relocation expenses 3 years before they 
made what we refer to as their final asking prices in March 1958. In 
March 1955, the Crow Creek Sioux tribe received $399,313 and the Lower 
Brule Sioux tribe received $270,611 from the court, with the 
understanding that negotiations between the tribes, the U.S. Army Corps 
of Engineers, and Interior would continue until settlements were 
achieved. Tribal committees were formed to plan relocation activities 
with these funds. 

8. We disagree with the tribes' consultant regarding his 
characterization of the rehabilitation portion of the payment the 
tribes received. We state in this report that it should be considered 
separately from the comparison of the dams because it was not directly 
related to the damage caused by the dams. The tribes' consultant states 
that "…the Congress has consistently demonstrated the understanding 
that funds for rehabilitation were directly linked to the damages 
caused by the dams." We agree that funding for rehabilitation became 
intertwined with compensation for the dams, and we included 
rehabilitation in our analysis in this report, as shown in tables 9 and 
10, as we did for the Cheyenne River Sioux tribe and the Standing Rock 
Sioux tribe. However, we disagree that rehabilitation is directly 
linked to the damages caused by the dams for the following three 
reasons. First, other tribes not affected by dam projects were also 
provided with rehabilitation funding. Second, rehabilitation funding 
was to improve the economic and social conditions of all tribal 
members, it was not limited to only those members directly affected by 
the dams. Third, it was clear during the negotiations that the 
government did not consider rehabilitation funding to be compensation 
for the damages caused by the dams. In addition, in this report, as in 
our 1998 report, we show the breakout of each component in our analysis 
to provide the Congress with the most complete information. 

[End of section] 

Appendix VI: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Robin M. Nazzaro, (202) 512-3841, nazzaror@gao.gov: 

Staff Acknowledgments: 

In addition to the individual named above, Jeffery D. Malcolm, 
Assistant Director; Greg Carroll; Timothy J. Guinane; Susanna Kuebler; 
and Carol Herrnstadt Shulman made key contributions to this report. 
Also contributing to the report were Omari Norman, Kim Raheb, and Jena 
Y. Sinkfield. 

(360643): 

FOOTNOTES 

[1] Crow Creek, Pub. L. No. 85-916, 72 Stat. 1766 (1958); and Lower 
Brule, Pub. L. No. 85-923, 72 Stat. 1773 (1958). 

[2] Crow Creek, Pub. L. No. 87-735, 76 Stat. 704 (1962); and Lower 
Brule, Pub. L. No. 87-734, 76 Stat. 698 (1962). 

[3] Crow Creek, Pub. L. No. 104-223, 110 Stat. 3026 (1996); and Lower 
Brule, Pub. L. No. 105-132, 111 Stat. 2563 (1997). 

[4] Fort Berthold and Standing Rock, Pub. L. No. 102-575, title XXXV, 
106 Stat. 4600, 4731 (1992); Cheyenne River, Pub. L. No. 106-511, title 
I, 114 Stat. 2365 (2000); and Yankton and Santee, Pub. L. No. 107-331, 
title II, 116 Stat. 2834, 2838 (2002). 

[5] GAO, Indian Issues: Compensation Claims Analyses Overstate Economic 
Losses, GAO/RCED-91-77 (Washington, D.C.: May 21, 1991); and Indian 
Issues: Cheyenne River Sioux Tribe's Additional Compensation Claim for 
the Oahe Dam, GAO/RCED-98-39 (Washington, D.C.: Jan. 28, 1998). 

[6] We proposed in our 1991 report that the Congress consider a range 
of additional compensation of $64.5 million to $170 million for the 
Standing Rock Sioux tribe. In 1992, the Congress authorized payment to 
the tribe of $90.6 million, which amounted to $1,618 per acre. 
According to the Crow Creek Sioux tribe's consultant, the additional 
compensation for the Crow Creek Sioux tribe was calculated by adding an 
adjustment factor to this per-acre amount--to take into account that a 
greater percentage of the Crow Creek Sioux Reservation was taken--and 
then multiplying this figure ($1,763.16) by 15,597 acres. Using this 
formula, the Congress authorized an additional compensation payment to 
the Crow Creek Sioux tribe of $27.5 million in 1996. Similarly, using 
the same $1,763.16 per-acre figure (multiplied by 22,296 acres), the 
Congress authorized an additional compensation payment to the Lower 
Brule Sioux tribe of $39.3 million in 1997. 

[7] Michael L. Lawson, Ph.D., Morgan Angel & Associates, The Lower 
Brule and Crow Creek Sioux Tribes of South Dakota: Parity Compensation 
for Losses from Missouri River Pick-Sloan Dam Projects (Washington, 
D.C.: June 15, 2004). See S. Hrg. No. 108-620, at 34-112 (2004). The 
consultant calculated a gross amount of additional compensation of 
$292.3 million (in 2003 dollars)--$105.9 million for the Crow Creek 
Sioux tribe and $186.4 million for the Lower Brule Sioux tribe. After 
subtracting the $66.8 million in additional compensation that the 
tribes received in the 1990s, the consultant arrived at a net 
additional request of $225.5 million. 

[8] Pub. L. No. 78-534, 59 Stat. 887 (1944). 

[9] The Secretary of the Interior created this unit in 1945 to study 
the impact of the various Missouri River flood control projects. 

[10] Damages fall into two categories--direct and indirect. In this 
context, direct damages primarily include values for land and 
improvements in the area affected by the dams' construction. Indirect 
damages include values for the loss of such things as timber, wildlife, 
and wild products in the taking area. 

[11] MRBI estimates were based on studies it had conducted on the 
effect of the proposed reservoir on the two tribes. Included in these 
investigations were a timber assessment, an appraisal of all tribal 
members' properties in the reservoir area, and an analysis of indirect 
damages likely to be sustained by members of the tribe. 

[12] Pub. L. No. 83-478, 68 Stat. 452 (1954). 

[13] H.R. 9832 and H.R. 9833, 83RD Cong., 2ND Sess., introduced on July 
8, 1954; and S. 3747 and S. 3748, 83RD Cong., 2NDSess., introduced on 
July 14, 1954. 

[14] Funds for rehabilitation were an attempt to bring the Indians' 
standard of living closer to that of their non-Indian neighbors through 
loans and welfare payments. 

[15] Statements and Estimates of the Crow Creek Tribal Council and 
Negotiating Committee, February 21, 1958, submitted at hearings held on 
March 25, 1958; and Proposed Program Submitted by the Lower Brule Sioux 
Tribe in Support of H.R. 6074, March 25, 1958. 

[16] Administrative expenses for the Crow Creek Sioux tribe had been 
included earlier in H.R. 3602 and S. 952, 84TH Cong., 1ST Sess., 
introduced on February 3, 1955, and February 4, 1955, respectively, and 
no changes to the amount were proposed by the tribe in the March 1958 
request or later requests. 

[17] H.R. 12663 and H.R. 12670, 85TH Cong., 2ND Sess., introduced on 
May 23, 1958. 

[18] H.R. Rep. No. 2054, 85TH Cong., 2ND Sess., at 3 (1958) and H.R. 
Rep. No. 2086, 85TH Cong., 2ND Sess., at 3 (1958). 

[19] H.R. 5144 and H.R. 5165, 87THCong., 1sSTSess., introduced on March 
2, 1961; and S. 1251 and S. 1252, 87tTHCong., 1sSTess., introduced on 
March 8, 1961. 

[20] Proposed amendments to H.R. 5144 and H.R. 5165, prepared jointly 
by the Department of the Interior, the Department of the Army, and the 
Crow Creek Sioux and Lower Brule Sioux tribes. 

[21] The policy of termination, which was initiated in the 1940s and 
ended in the early 1960s, was aimed at ending the U.S. government's 
special relationship with Indian tribes, with an ultimate goal of 
subjecting Indians to state and federal laws on exactly the same terms 
as other citizens. 

[22] Aaa is the highest grade of corporate bonds in the estimate of 
bond rating services, such as Moody's Investment Services. 

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