(a) "Secretary" means the Secretary of the Interior or his authorized representative.

(b) "Red Lake Indian Mills" means the tribal enterprise, established under section 9 of the act of May 18, 1916 (39 Stat. 137), as amended, for the purpose of producing forest products.

(c) "Forest Products" means lumber, lath, shingles, crating, ties, bolts, logs, bark, pulpwood, or other marketable materials manufactured or produced by the Red Lake Indian Mills.

(d) "Red Lake Indian Reservation, Minnesota" means the Red Lake Indian Forest and all other forest lands held in trust for the Red Lake Band of Chippewa Indians.

§ 144.2 Purpose of regulations.

The regulations in this Part 144 prescribe the terms and conditions under which forest products produced by the Red Lake Indian Mills may be sold without compliance with section 3709 of the Revised Statutes.

§ 144.3 Applicability of regulations. The regulations in this Part 144 apply only to the Red Lake Indian Mills. § 144.4 Sale in open market.

The forest products produced by the Red Lake Indian Mills may be sold in the open market at such prices as may be realized through the methods in this Part 144.

§ 144.5 Advertisement in trade journals and newspapers.

The Secretary may advertise forest products of the Red Lake Indian Mills for sale in trade journals of general cir

culation among persons, companies, or corporations interested in buying and selling of forest products, and in newspapers in cities that may afford a favorable market for such forest products. § 144.6 Advertising contracts.

The Secretary may, as he determines, make advertising contracts, provided that such contracts shall not be executed for periods of more than one year. § 144.7 General advertisement.

Advertisement of forest products may also be made by direct and circular letters and through personal interviews with the trade: Provided, That travel expense incident thereto shall not be incurred without specific authority from the Secretary.

§ 144.8 Proposals for purchase.

Proposals for the purchase of forest products may be made to the Secretary, and he is authorized to quote prices and consummate sales at such times and/or such terms as are consistent with the regulations of this Part 144.

§ 144.9 Proposals to Government departments.

Proposals may be made by the Secretary to sell to municipalities, counties, States, or the United States and prices may be quoted to such agencies. Terms and payment in connection with such sales may be formulated in accordance with the general practice of agencies.

§ 144.10 Cash sales.

such

All forest products of the Red Lake Indian Mills shall be sold for cash f.o.b. mill or other point of delivery, except as provided in §§ 144.9 and 144.11. Adjustments and allowances on shipments of forest products after delivery to the buyer are authorized in accordance with generally accepted trade practices, when such adjustments are essential by reason of off-grade shipments or errors in volume.

§ 144.11 Payments, discounts, and credit sales.

Shipments of forest products on open account shall be made only to persons or companies who have an acceptable credit rating. Credit on shipment of forest products sold on open account shall not be extended beyond 60 days from date of receipt by the buyer. A cash discount in accordance with general

AUTHORITY: The provisions of this Part 151 issued under R.S. 161, sec. 6, 48 Stat. 986; 5 U.S.C. 22, 25 U.S.C. 466, unless otherwise noted.

SOUCE: The provisions of this Part 151 appear at 22 F.R. 10576, Dec. 24, 1957, unless otherwise noted.

CROSS REFERENCES: For Navajo grazing, reservations, see Part 152 of this chapter. For leasing and permitting, of restricted Indian lands for farming, farm pasture, and business, see Part 131 of this chapter. § 151.1 General authority.

It is within the authority of the Secretary of the Interior to protect Indian tribal lands against waste. Overgrazing, which threatens destruction of the soil, is properly considered waste. Subject to regulations authorized by law, the right exists for Indian tribes and individual Indians to lease or grant permits upon their own tribal land or individual allotments.

§ 151.2 Act of June 18, 1934.

With respect to reservations upon which the act of June 18, 1934, is applicable, the action of the Secretary must

It is the purpose of the regulations in this part to aid the Indians in the achievement of the following objectives:

(a) The preservation through proper grazing practice of the forest, forage, land, and water resources on the Indian reservations, and the building up of these resources where they have deteriorated.

(b) The utilization of these resources for the purpose of giving the Indians an opportunity to earn a living through the grazing of their own livestock.

(c) The granting of grazing privileges in a manner which will yield the highest return consistent with undiminished future use.

§ 151.4 Regulations; scope; exceptions.

The grazing regulations of this part are hereby made effective as of the date of approval hereof for Indian lands under the jurisdiction of the Bureau of Indian Affairs, except as superseded by special written instructions from the Commissioner of Indian Affairs in particular instances or by provisions of any tribal constitution, bylaws, or charter, heretofore or hereafter duly ratified, or by any tribal action authorized thereunder. All forms necessary to carry out the purpose of the regulations of this part shall be approved by the Commissioner of Indian Affairs.

§ 151.5

Grazing capacity of reservation.

The Commissioner of Indian Affairs shall prescribe for each reservation the maximum number of livestock which may be grazed on Indian range lands. The number of livestock authorized will be based upon the most reliable estimate of the total grazing capacity of the reservation.

§151.6 Establishment of range units.

The conservation and effective utilization of grazing resources require a suitable division of the range area into range units. Such division shall be effected under the direction of the superintendent and the area director, after consultation with the Indians, in accordance with the requirements of range management, land status, and Indian needs. § 151.9 Free grazing privileges.

On reservations where sufficient tribal land is available, free grazing privileges

may be granted to Indians pursuant to § 151.13. The number of livestock which may be grazed free of charge by any individual shall not exceed the number obtained by dividing the estimated grazing capacity of the tribal range by the total enrollment on the reservation: Provided, That the Commissioner of Indian Affairs may, in his discretion, and with the consent of the tribal authorities, authorize the granting of free grazing privileges to Indian families for not to exceed 50 horses, 100 cattle, or 500 sheep, or a combined equivalent thereof in these proportions. A family or livestock association may be granted a permit for the combined free privileges accruing to each member thereof. The total free grazing privileges granted for a range unit shall not exceed the grazing capacity of the tribal lands therein.

§ 151.10 Authority to sell grazing privileges on tribal and allotted land. Grazing privileges may be sold on Indian land in range units in the following manner:

(a) Authority to sell grazing privileges on tribal lands shall be granted pursuant to § 151.13.

(b) Authority to sell grazing privileges on allotted land may be granted by the owners thereof, except those classes described in paragraphs (c) and (d) of this section on an approved form authorizing the superintendent to issue grazing permits at not less than the minimum fees stipulated in such instrument.

(c) Authority to grant grazing privileges on the allotments of minors, other than orphans, shall be given by the head of the family.

(d) The superintendent may grant grazing privileges and stipulate the minimum fees to be charged on the restricted lands owned by Indian orphan minors, Indian non compos mentis and on restricted inherited or devised allotments when the heirs or devisees of such deceased allottees have not been determined. The superintendent may also grant grazing privileges when the heirs or devisees of such deceased allottees have been determined and the lands are not in use by any of the heirs or devisees and the heirs of devisees have not been able for a 3-month period to agree upon the granting of grazing privileges by reason of the number of heirs or devisees, their absence from the reservation, or for other cause: Provided, That the superintendent or his author

ized representatives shall notify absentee heirs and devisees by mailing to their last known address notice that the heirs have a 3-month period from the date of the notice to reach an agreement with respect to the granting of grazing privileges on their inherited or devised restricted allotments.

§ 151.11

Indian grazing privileges; allocations and competitive bidding.

(a) Indian families, as defined in § 151.26, who own livestock in numbers not exceeding 250 head of cattle or 1,250 head of sheep, or a combined equivalent thereof in these proportions, may obtain grazing permits without competitive bidding, pursuant to §§ 151.12 and 151.13. Such permits shall be issued to the head of the family.

(b) Indian families who own livestock in numbers exceeding those stipulated in paragraph (a) of this section will be required to enter the open competitive market for their entire holdings, except for those for which they may receive free grazing privileges pursuant to § 151.9: Provided, That on reservations where only Indian livestock are grazed, competitive bidding will not be required, but first consideration in the allocation of grazing privileges shall be given to those Indian families owning less than the numbers stipulated in paragraph (a) of this section: Provided further, That no family shall be denied a pro rata share of the grazing capacity of the reservation.

§ 151.12 Appraisal of grazing privileges.

The total appraised rates for an entire unit, whether charged to Indian families receiving allocations pursuant to § 151.11, or incorporated as a minimum in advertisements for competitive bidding pursuant to § 151.14, shall not be less than the minimum rates authorized pursuant to § 151.10.

(b) The kind or kinds of livestock which will be allowed to graze on each range unit;

(c) The rate per head to be charged for allocations authorized under paragraph (a) of this section and to be incorporated as the minimum in the advertisement, subject to the requirements of §§ 151.10 and 151.12;

(d) The number of years for which grazing privileges are to be authorized under both allocation and advertisement, subject to the maximum number of years prescribed by law and subject further to the limitation that all permits shall expire within the permit period established for the reservation;

(e) The number of livestock which may be grazed free of charge on range units comprised of Tribal lands or on the tribal lands in range units comprised of tribal and other lands operated by Indian families, subject to the limitations of § 151.9;

(f) Whether the existing permittee of a unit, whose occupancy has been satisfactory, shall be given the privilege of meeting the high bid thereon.

The matters thus determined will be entered in the official minutes of the meeting, and the action taken shall be final for the period concerned unless authority to modify such action is granted in writing by the Commissioner of Indian Affairs.

§ 151.14 Advertisement of grazing privileges.

The sale of grazing privileges shall be advertised for competitive bidding for a period of 30 days on an approved form and proposals shall be received under sealed bids, unless otherwise authorized by the Commissioner of Indian Affairs. The minimum appraised rates to be incorporated in the advertisement shall not be less than determined pursuant to § 151.12. Proposals must be accompanied by a cashier's check, certified check, or draft, drawn upon a solvent bank, or money order, payable to the order of the Bureau of Indian Affairs, for not less than 10 percent of the amount of the grazing fees due for the first year at the rate bid. The advertisement shall be approved by the Area Director prior to issuance thereof by the Superintendent or other authorized person or persons.

The Area Director or other authorized person or persons shall award grazing privileges to the highest satisfactory bidder, and notification thereof shall be given promptly to the superintendent. When pursuant to § 151.13, the privilege has been extended to the existing permittee to meet the high bid, such existing permittee shall be given ten days' written notice by the superintendent in which to meet the high bid. Thereafter, if the existing permittee does not so notify the superintendent that he will meet the high bid, the superintendent shall then notify the highest satisfactory bidder that his bid has been accepted.

§ 151.16 Grazing permits; by whom issued.

Grazing privileges on range units shall be on an approved revokable permit form, issued by the superintendent, or other person or persons authorized to sell grazing privileges pursuant to § 151.10. The superintendent shall approve permits issued by any other authorized person. All permits shall accord to the schedule of grazing privileges approved by the Area Director which includes allocations to Indian families pursuant to § 151.11 and awards made under competitive bids. All permits shall be subject to revocation by the Commissioner of Indian Affairs, in his discretion, after 30 days' written notice to the permittee.

§ 151.17 Bond requirements.

Permits must provide for the payment of grazing fees annually in advance.

(a) Full performance of all permits for periods exceeding one year shall be guaranteed by corporate surety bond of a company holding a certificate of authority from the Secretary of the Treasury or a satisfactory personal surety bond of not less than four solvent sureties in a penal sum of not less than the annual grazing fees. Each personal surety must own unencumbered real estate of a value equal to twice the amount of the bond and must furnish satisfactory evidence of ownership of such unencumbered real estate. If married, the spouse of the surety must also sign the bond and each signature must be witnessed by at least two individuals and their post office addresses must ap

pear in the instrument. Attorneys-infact for corporate surety bonds must furnish satisfactory evidence of authority to execute bonds for and on behalf of the surety company.

(b) In lieu of furnishing a surety bond, a permittee may deposit at the time of the first payment of the grazing fees a sum equal to one-half of the annual grazing fees. This sum shall be held by the Area Director as a cash penal bond and may be applied to the grazing fees due for the last six months of the permit: Provided, That no breach of the permit has taken place. In all cases where a cash deposit is made in lieu of a surety bond, the permittee shall execute a proper power of attorney authorizing the Area Director to apply the cash deposit as liquidated damages in the event of any breach of the permit.

(c) Negotiable United States Treasury bonds or other negotiable Treasury obligations may be pledged in lieu of a cash penal or surety bond under the same conditions and stipulations for cash penal bonds. Such Government securities shall be forwarded to the Area Director for safekeeping deposit and must be accompanied with a proper power of attorney authorizing disposal thereof by the Area Director as liquidated damages in the event of any breach of the permit.

§ 151.18

Grazing permits; assignments and modifications.

Grazing permits shall not be assigned, sublet or transferred without the consent of the contracting parties, the surety and the issuing officer: Provided, That any part of the unit covered by a permit may be withdrawn by the Commissioner of Indian Affairs in his discretion after 30 days' written notice to the interested parties.

§ 151.19 Farm-pasture leases.

Farm-pasture lands not suitable for inclusion in range units may be leased in accordance with the provisions of Part 131 of this chapter.

§ 151.20 On-and-off grazing permits.

On-and-off grazing permits will be granted to persons owning livestock which will graze on a range unit where only a part of such unit is Indian land. This permit will be granted for the total number of livestock to be grazed on the entire unit but the permittee will be required to pay grazing fees only for the