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On Improving Tribal-Corporate Relations in the Mining Sector

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On Improving Tribal-Corporate Relations in the Mining Sector ON IMPROVING TRIBAL-CORPORATE RELATIONS IN THE MINING SECTOR A White Paper on Strategies for Both Sides of the Table by The Harvard Project on American Indian Economic Development April 2014 THE HARVARD PROJECT ON AMERICAN INDIAN ECONOMIC DEVELOPMENT John F. Kennedy School of Government Harvard University 79 John F. Kennedy Street, Cambridge, MA 02138 http://www.hpaied.org ISBN-10: 0615999328 ISBN-13: 978-0-615-99932-6 ©2014 by The Harvard Project on American Indian Economic Development Cover photo courtesy James Woodcock, Billings Gazette. ABOUT THE HARVARD PROJECT ON AMERICAN INDIAN ECONOMIC DEVELOPMENT Founded in 1987, The Harvard Project on American Indian Economic Development (Harvard Project) is a program of the Malcolm Wiener Center for Social Policy at the John F. Kennedy School of Government, Harvard University. Through applied research and service, the Harvard Project aims to understand and foster the conditions under which sustained, self-determined social and economic development is achieved among American Indian nations. The Harvard Project’s core activities include research, advisory services, executive education, and the administration of Honoring Nations, a national recognition program for best practices in tribal government. In all of its activities, the Harvard Project collaborates with the Native Nations Institute for Leadership, Management, and Policy at the University of Arizona. For further information, see http://www.hpaied.org. Table of Contents FOREWORD .................................................................................................................. i 1. INTRODUCTION ....................................................................................................1 The Setting: The Native Resurgence ................................................................................................................. 3 2. THE RESOURCES: TRIBAL MINERALS IN THE LOWER 48 STATES ............................. 7 Resources ...................................................................................................................................................................... 9 Tribal Energy & Mineral Data ...............................................................................................................................9 Further Information ...............................................................................................................................................10 3. THE LEGAL AND REGULATORY SETTING ...........................................................11 Introduction: American Indian Nations, History, and Sovereignty ...................................................11 Tribal Sovereignty and Treaty Rights: Sources and Limitations ........................................................14 Tribal Government and Tribal Laws ................................................................................................................15 Tribal Sovereign Immunity from Suit ..............................................................................................................17 Minerals Extraction and American Indian Tribes ......................................................................................19 Land Status Overview ............................................................................................................................................20 Minerals Development on Tribal Lands ......................................................................................................... 22 Minerals Development on Non-Tribal Lands ............................................................................................... 25 Tribal Civil Jurisdiction over Non-Indians.....................................................................................................27 Conclusion ..................................................................................................................................................................29 Resources ....................................................................................................................................................................30 Selected Relevant Federal Statutes .................................................................................................................. 30 The United Nations Declaration on the Rights of Indigenous Peoples ..............................................31 4. PRIMARY IMPEDIMENTS TO AGREEMENT .......................................................... 32 Misuse and Misunderstanding of Legal Powers .........................................................................................33 Overlapping or Ambiguous Off-Reservation Jurisdiction ....................................................................... 33 The Limits of Litigation and Political Leverage .......................................................................................34 Tribal Sovereign Immunity and Tribal Courts ............................................................................................ 36 Institutional “Thinness” of Tribes .....................................................................................................................37 Institutional “Thinness” of Corporate Partners ..........................................................................................41 Third Party Interactions ........................................................................................................................................43 Environmentalists with Value-Based Goals.................................................................................................. 45 Lack of Scientific Consensus ................................................................................................................................ 46 Media’s Role ...............................................................................................................................................................48 Legal and Regulatory Players as Third Parties ..........................................................................................48 Breakdown in Community Trust and Engagement during Project Development .......................50 Communication Failure Due to Cultural Misunderstanding ................................................................50 Changes in Personnel ............................................................................................................................................. 52 Legacies of Resource Loss and Uncompensated Damage ...................................................................... 52 Different Discount Rates and Time Horizons .............................................................................................. 53 Not Knowing When to Stop .................................................................................................................................53 Lack of Education and Training .........................................................................................................................54 5. ELEMENTS OF SUCCESSFUL AGREEMENTS AND RELATIONSHIPS ......................... 56 Promoting Community Development .............................................................................................................56 Establishing a Sensible Community Fund ......................................................................................................57 Strategies for Sustainable Livelihoods ........................................................................................................57 Realistic Risk Management for Closure ..........................................................................................................59 Creating Institutional Bridges ............................................................................................................................61 Nurturing Relationships .......................................................................................................................................62 The U.S. Tribal Context .......................................................................................................................................... 62 Some Lessons from International Efforts...................................................................................................... 64 Dispute Prevention and Resolution through Effective Monitoring ....................................................65 CASE PROFILES .......................................................................................................... 68 The Navajo (Diné) Nation: Coal and Uranium Mining ................................................ 70 Devolved Governance .............................................................................................................................................72 ......................................................................................................................................72 The Employment Imperative ..............................................................................................................................73 Economic Diversification The Southern Ute Indian Tribe: Oil and Gas Production ............................................. 75 Overcoming Inertia .................................................................................................................................................76 Go Forth and Diversify: The Southern Ute Growth and Permanent
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