SECTION 3 (C)

Section 3(c) at line 22 should be amended by deleting the words "a flowage easement and rights-of-way" and by substituting the following therefor: "interests in land".

SECTION 5

Section 5 at line 12 on page 7 should be amended by deleting "That the Secretary of the Army is authorized and directed to provide for perpetual care and maintenance at not more than two cemetery relocation sites designated by the Seneca Nation if 50 per centum or more of the graves within the Allegany Reservation subject to disinterment by virtue of the Allegheny River projects are reinterred in such sites." and by substituting the following therefor: "That the Secretary of the Army is authorized and directed to provide a trust fund in the amount of $43,200 for the perpetual care and maintenance of the graves for the reinterments at the two cemetery relocation sites selected by the Seneca Nation."

SECTION 6

The provisions of section 6 should be deleted in entirety and amended to read: "All minerals of any kind whatsoever, including gas and oil and sand and gravel, within the areas subjected to the interests in land acquired by the United States under section 1 of this act, are hereby reserved to the Seneca Nation: Provided, That the use and enjoyment of minerals shall not interfere with or abridge said interests in land: And provided further, That the exploration and development of such minerals, including oil and gas and sand and gravel, within the taking area shall be subject to all reasonable regulations of the Secretary of the Army necessary for the protection of the Allegheny River Reservoir project."

SECTION 7

Section 7 on page 8, line 9 should be amended by deleting the words "flowage easements and rights-of-way" and by substituting the word "interests"; the date for insertion in lines 14 and 15 is 1964.

SECTION 8

Section 8 at line 17 should be amended by deleting the words "vacating the flowage easement and rights-of-way" and by substituting the following therefor: "vacation".

SECTION 9

Section 9 should be amended: on page 9 at line 7 by deleting the words “flowage easement and rights-of-way" and by substituting the word "interests"; and at lines 14 and 15 by deleting the words "and the right to regulate access to the shoreline of the reservoir"; and by placing a semicolon after the word "Nation" and add the following:

"Provided, That the exercise of such rights shall be subject to the following conditions:

**(a) The use by the public of the water areas of the Allegheny Reservoir proj ect shall be pursuant to such rules and regulations as prescribed by the Secretary of the Army; and such rights of the Seneca Nation as herein above mentioned shall be limited exclusively to the land areas of the project within the Allegany Indian Reservation.

(b) Nothing contained in this section of this Act shall be construed to diminish the provision in section 4 of the Flood Control Act of 1944, approved December 22, 1944 (58 Stat. 887) and amendatory laws, to wit: "The water areas of all such projects shall be open to public use generally, without charge, for boating, swimming, bathing, fishing, and other recreational purposes."

SECTION 12 (C)

Section 12(e) at line 6 should be amended by deleting the word "property" and by substituting therefor the words "structures and improvements".

SECTION 15

Section 15 at lines 15 and 16 should be amended by deleting the words "flowage easement and rights-of-way" and by substituting therefor the words "interests in lands".

Hon. WAYNE N. ASPINALL,

DEPARTMENT OF THE INTERIOR,
Washington, D.C., July 12, 1963.

Chairman, Committee on Interior and Insular Affairs,
House of Representatives, Washington, D.C.

DEAR MR. ASPINALL: This responds to your request for a report on H.R. 1794 and H.R. 3343, identical bills, and H.R. 7354, a similar bill, to authorize the acquisition of and the payment for a flowage easement and rights-of-way over lands within the Allegany Indian Reservation in New York, required by the United States for the Allegheny River (Kinzua Dam) project, to provide for the relocation, rehabilitation, social, and economic development of the members of the Seneca Nation, and for other purposes.

We endorse the purpose of these bills and urge their early consideration, so that congressional policy toward the Senecas may be determined, particularly with respect to compensation for special damages. The purposes of financial assistance specified in section 4 of the bills have our full endorsement. They are well designed to promote the community well-being and prosperity of the Seneca Indians. Because important dollar figures are still incomplete, however, we are unable at this time to go beyond a general endorsement. When all dollar amounts have been supplied and the documentation underlying such amounts has been made available to us for examination, we shall be glad to prepare further recommendations. At the present time we are in position to recommend several perfecting amendments. The page and line references are to H.R. 1794, and some of the amendments are already contained in H.R. 7354.

The bills result from the construction by the Corps of Engineers of the Allegheny River Dam and Reservoir project, which will require the acquisition by the Government of a substantial portion of the lands of the Seneca Indian Reservation. The bills are patterned along the lines of similar legislation enacted for several Indian tribes in the Missouri River Basin when their lands were acquired for water development projects (Standing Rock, Cheyenne River, Crow Creek, Lower Brule, Yankton, and Fort Berthold). There are, however, differences.

The principal provisions of H.R. 1794 and H.R. 3343 are:

(1) The bill is a legislative taking of a flowage easement on approximately 10,000 acres of reservation land, and of a right-of-way on additional land for the relocation of roads and utilities.

(2) The compensation to be paid for the legislative taking is left blank in the bill and the figures need to be inserted. The compensation consists of three parts:

(a) The fair market value of the interests in land acquired by the Government (i.e., the flowage easement and right-of-way).

(b) The fair market value of the improvements on the land taken.
(c) The so-called indirect damages.

The first two of these sums are under negotiation between the Seneca Nation and the Corps of Engineers. The third sum is still under consideration by the Indians and by this Department. We have estimates for various items aggregating $1,442,350. The figure includes such items as the moving of farm buildings, farm machinery, household equipment and furniture, families and personal property, loss of wages, and the extra cost of acquiring from Indian assignees their surface rights to areas where the displaced Indians will be relocated. It also includes certain development costs in the relocation area. These costs, however, will be reduced if grant funds are received under the accelerated public works program for which the Seneca Nation has applied to the Community Facilities Administration. The figure also includes reimbursement for loss of food, medicinal herbs, and craft material in the "taking" area, which loss has been capitalized at 4 percent.

The division between the Seneca Nation and its individual members of the amount paid for the flowage easement will depend upon the total amount of the negotiated price.

The portion of the indirect damages set aside for moving costs incurred by individual Senecas (subsec. 3(c)) is estimated at $127,050. These costs include the moving of farm buildings and machinery, household equipment and furniture, families and personal property, and the loss of wages, and are based upon the March 1963 draft report entitled "Seneca Indians Who Will Be Affected by

the Kinzua Dam Reservoir" prepared by the Director of the Missouri River Basin Investigations Staff, Bureau of Indian Affairs.

(3) In addition to the foregoing compensation provisions, the bill provides an additional sum, the amount of which is blank, for rehabilitation, or, in the language of the bill, "for assistance designed to improve the economic, social, and educational conditions of enrolled members of the Seneca Nation." We have a partial list of items which aggregate $4,493,000. It covers the general subjects of relocation and resettlement costs (including the construction of roads, sanitation facilities, houses, and related structures), the construction of community buildings and facilities, and an educational fund for scholarship loans and grants, vocational training, and counseling services. That figure does not include estimates for agricultural, commercial, and recreational development on the reservations, for industrial development, or for the acquisition of lieu lands. A feasibility and development study regarding commerce, recreation, and industry on or near the Seneca Reservation is being made by an engineering firm with funds provided jointly by the Corps of Engineers and by the Bureau of Indian Affairs. It is nearing completion and the final report will be presented to the Seneca Nation for consideration, and the proposals of the Indians will be made directly to the Congress. This report is expected to indicate the necessity for a very substantial sum for the development proposed. The tribal council of the Seneca Nation is still considering the lieu lands it wants, and its determination will be based upon the report of the engineering firm. There is no method of determining the land value until after the council's decision is reached on the amount of lands required.

(4) The Seneca Nation retains the right to use and control the "taking" area for all purposes not inconsistent with the flowage easement and right-of-way acquired by the Corps of Engineers, including the right to regulate access to the shoreline of the reservoir.

(5) The Secretary is authorized to acquire for the Seneca Nation, by condemnation if necessary, lieu lands not in excess of a blank number of acres. (6) Miscellaneous provisions relate to the relocation of cemetaries, limitations on the exercise by the Seneca Nation of its reserved mineral rights, rights of occupancy until the land is needed by the Corps of Engineers, the right to salvage timber and improvements, reimbursement for expenses incurred by the Seneca Nation (which we estimate at $250,000), and the procedure for adjudicating the compensation payable to the individual Senecas who reject the negotiated amounts. Provision is also made for the preparation of necessary maps and legal descriptions, authorization for reconveyances of interests in lands not needed for the project, and the usual tax exemption.

We recommend the following perfecting amendments:

(1) After the word "flowage" wherever it appears, insert "and clearing”. The word appears in the title of the bill, and on page 2, line 16; page 3, line 2: page 4, line 22; page 7, line 20; page 8, lines 9 and 17; page 9, line 7; page 12, line. 22.

(2) On page 2, line 2, after "flood" insert ", clear".

(3) On page 3, line 19, change "allottees" to "assignees".

(4) On page 5, line 3, after "except" insert "for the repayment of housing or resettlement loans made to individual Seneca Indians by a bank or other recognized lending institution, and also except." This will permit the assignment of money anticipated under the bill as security for bona fide housing and

resettlement loans.

(5) On page 6, lines 1 and 2, delete "if a preferential right of employment is granted members of the Nation". The preference right of employment might be detrimental rather than helpful in some kinds of industrial development. (6) On page 6, line 20, delete ", after consultation with" and insert in lieu thereof "and".

(7) On page 8, line 21, change "allottees" to "assignees".

(8) On page 8, line 22, after "charge" insert "to harvest crops, to mine and remove sand and gravel,".

(9) On page 9, line 2, after "That" insert "the crops harvested, the sand and gravel removed,".

(10) On page 9, line 18, after "Nation" insert "out of funds in the Treasury not otherwise appropriated".

(11) On page 12, line 17, change "adjacent" to "contiguous".

(12) On page 12, line 19, after "recreational" insert ", commercial".

(13) On page 12, line 20, after "the" insert "existing".

(14) On page 12, line 20, after "shall" insert "become a part of the reservation and".

(15) On page 13, revise section 15 to read as follows: "SEC. 15. Upon a determination by the Secretary of the Army that all or part of the flowage and clearing easement and rights-of-way acquired under section 1 of this Act no longer are necessary for the purposes of the Allegheny River project, all right, title, and interests in such lands shall thereupon vest in the Seneca Nation." The Bureau of the Budget has advised that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely yours,

JOHN A. CARVER, Jr., Assistant Secretary of the Interior.

Mr. HALEY. I might also state to the witnesses and the members of the committee that I am somewhat alarmed about the situation insofar as the Seneca Nation is concerned. It seems to me that rapidly the Army Corps of Engineers is completing the project, probably a little bit ahead of schedule, if I am to judge from reports that I hear. Yet, as far as know, there has been no firm determination insofar as the Seneca Nation and the Army Corps of Engineers are concerned, as to programs for relocation of roads and other facilities. As a matter of fact, as of this moment the Subcommittee on Indian Affairs does not even have the number of acres that will be required in the taking of the Seneca Nation's land for the construction of the Kinzua Dam.

I think it would be a terrible situation if we come up to the point that the gates on this dam are closed and the Seneca people are without some place to go. I do not want to see that happen. I hope the Army Corps of Engineers, which has a vital responsibility here, will proceed as rapidly as they possibly can to do the things that will be necessary to take care of this situation in the Seneca Nation.

Also, we should like to have from the Army Corps of Engineers not only the total amount of acreage involved, but some rough figures as to how they are to meet the responsibilities which I think we owe the Seneca Indians insofar as repayments or payments for the various takings which will be neecssary for the completion of this project. STATEMENT OF WOODROW L. BERGE, ACTING DIRECTOR OF REAL ESTATE, OFFICE, CHIEF OF ENGINEERS; COL. BERT DE MELKER, DISTRICT ENGINEER, U.S. ARMY ENGINEER DISTRICT, PITTSBURGH, PA.; LONEY W. HART, CHIEF, LEGISLATIVE SERVICES (REAL ESTATE), OFFICE, CHIEF OF ENGINEERS; MARK GURNEE, CHIEF, OPERATIONS DIVISION, OFFICE, CHIEF OF ENGINEERS; C. C. CASEY, CHIEF, PLANNING AND PURCHASE (REAL ESTATE), OFFICE, CHIEF OF ENGINEERS; J. A. NEILL, CHIEF, ENGINEERING DIVISION, U.S. ARMY ENGINEER DISTRICT, PITTSBURGH, PA.; HALSEY W. HARMON, PROJECT ENGINEER, U.S. ARMY ENGINEER DISTRICT, PITTSBURGH, PA.; LAWRENCE A. LAYTON, DISTRICT COUNSEL, U.S. ARMY ENGINEER DISTRICT, PITTSBURGH, PA.; AND PAUL E. LOCKE, LIAISON REPRESENTATIVE, U.S. ARMY ENGINEER DISTRICT, PITTSBURGH, PA.

Mr. HALEY. The first witness this morning is the Acting Director of Real Estate, Office, Chief of Engineers, Mr. Woodrow L. Berge. Mr. Berge, will you come forward. You are accompanied by Col. Bert de Melker, and Mr. Loney W. Hart.

Mr. BERGE. That is correct, sir.

Mr. HALEY. The colonel is the district engineer out of the Pittsburgh office, and Mr. Hart is the Chief of the Legislative Services (Real Estate), Office, Chief of Engineers.

Gentleman, we are very happy to have you with us here this morning. We hope that we can proceed to unravel what I think are some very sensitive and necessary requirements to meet our responsibility insofar as the country is concerned. We are glad to have you, gentlemen. You may be seated and proceed.

Mr. BERGE. Mr. Chairman and members of the committee, I am Woodrow Berge, Acting Director of Real Estate, Office of the Chief of Engineers, Department of the Army. I have been designated to represent the Department of the Army in this matter. I have with me on my right, Col. Bert de Melker, the district engineer, U.S. Army engineer district, Pittsburgh, and on my left, Mr. Loney W. Hart, Chief of the Real Estate Legislative Services Office, Office of the Chief of Engineers. In back of me are other members of the staff of the Chief of Engineers as well as members of Colonel de Melker's staff. The names of these individuals appear on the witness list for the Department of the Army.

Ĥ.R. 1794 and H.R. 3343 are identical bills, the purpose of which is generally as stated in the titles; for convenience of discussion we will refer to H.R. 1794. The views of the Department of the Army on this legislation were recently furnished to this committee by letter of the Secretary of the Army.

As you are aware, the proposed acquisition of a part of the real estate holdings of the Seneca Nation of Indians for the Allegheny Reservoir project has been under discussion for a number of years; the subject has received wide publicity through the media of the press, radio, and television. The Department of the Army is cognizant of the fact that there is involved in this matter deep sentiments over the loss of a portion of the lands which have been owned by the Seneca Nation for many, many years. As will be brought out in our presentation to this committee, the adjustments which must be made by the members of the Seneca Nation have had the attention of the President of the United States with the result that he directed that the ininterested agencies and department of the Federal Government take all action within their authority to assist the Seneca Nation and its members; at the same time, the President listed specific areas of possible assistance for consideration.

As in the case of the acquisition by the Government of lands owned by Indian tribes involved in other public works projects which acquisitions have been the subject of legislation considered by this committee there are damage items involved which are difficult to evaluate from the standpoint of fairness to the Indian owners as well as the United States.

With the indulgences of the committee, in order to orient the members of the committee as to the general features of the Allegheny Reservoir project and the effect the project will have on the Seneca Nation land, I shall ask Colonel de Melker to briefly describe the project features by reference to several charts that have been prepared; following Colonel de Melker. Mr. Hart is prepared to present to the committee comments on the specific provisions of this bill.