Hearing of the Senate Indian Affairs Committee - Opening Statement of Sen. Barrasso, Hearing on GAO's Report on Indian Energy Development

Hearing

"We will examine today the Government Accountability Office June of 2015 report on Indian energy development. I requested this report on January 4, 2014 for several reasons.

"Energy development holds much promise for Indian communities.

"According to the Department of the Interior, in 2014, revenues from tribal energy development exceeded $1.1 billion. That figure should be much higher.

"Over the years, this committee has received concerns from Indian tribes and energy developers regarding the complexity of federal regulation and decision-making relating to Indian lands.

"These issues either drive up costs and drive away developers or delay the payment of royalties to Indian landowners.

"In fact, the Government Accountability Office report noted that one private energy developer reported that an oil or gas well developing Indian resources generally costs almost 65 percent more for regulatory compliance than a similar well for private resources.

"In another instance highlighted in the report, an eight-year delay by the Bureau of Indian Affairs in reviewing tribal documents cost the tribe an estimated $95 million in lost permitting fee, severance tax, and royalty revenues.

"To improve energy development on Indian lands, we needed to get to the bottom of this complexity and the delays.

"This Report confirms several issues this committee has been working to address.

"On January 21, 2015 the Vice Chairman Senator Tester and I introduced S.209, the Indian Tribal Energy Development and Self-Determination Act Amendments of 2015.

"This bill would reduce much of the bureaucracy and delays associated with the Secretarial review of leases, business agreements, and rights-of-way for Indian energy development.

"The committee unanimously passed this bill and it is being hotlined for Senate consideration.

"Congress needs to pass this bill this year so that tribes may begin energy development without these continued delays.

"Other management and interagency challenges were highlighted in the report.

"I look forward to hearing from the Department of the Interior on the progress made in addressing these issues."

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