WASHINGTON, D.C. – The Obama Administration moved to settle a contentious case as “an important step towards reconciliation … I heard from many in Indian Country that the Cobell suit remained a stain on the nation-to-nation relationship I value so much” stated President Obama. He also said that he was proud the step had been taken. The Interior Secretary Ken Salazar said “this is an historic, positive development for Indian country.”

The Native American plaintiffs alleged the Interior Department mismanaged billions of dollars in national resources income from their lands. The Cobell class action lawsuit was filed in 1996. The government deal would provide $1.4 billion for 300,000 tribe members as compensation and set up a $2 billion fund to buy land from them.
The issue began with the 1887 Dawes General Allotment Act, which divided reservations into individually allotted parcels per Indian family, creating massive amounts of “surplus” land, usually very rich in natural resources, that was then handed over to white-owned industries. The federal government promised to compensate for the land loss. However, private land ownership is largely a foreign concept within Indigenous societies, peoples that generally view land as a communal asset.

Given that history, issues eventually arose over the adequate compensation that was promised. The class argued that the government, which was to oversee the Indian trust, actually mismanaged billions of dollars in oil, gas, grazing, and timber royalties.

(PHOTO: Ms. Cobell, Courtesy of BBC News)

The named plaintiff, Elouise Cobell (citizen of the Blackfoot Nation) welcomed the settlement, but she said there was “no doubt” the final amount was “significantly” less than what was actually deserved by Native Americans.  Based on their calculations, they estimate that they are owed $47 billion. Nonetheless, Cobell stated: “today is a monumental day for all of the people in Indian Country that have waited so long for justice.” Cobell also remarked, “did we get all the money that was due us? Probably not… but there are too many individual Indian beneficiaries that are dying every single day without their money.”

The Department of Interior plans, as part of the settlement, to buy back individual trust interest from individuals to free up lands for the benefit of tribal communities, but conceded that some class members would likely be distrustful of selling their interests. As an incentive to sell, the deal includes funding set aside up for to five percent of the value of the interests to go to higher education and vocational scholarships for Indigenous students.

In order for the settlement funds to become available Congress must pass legislation appropriating funds and approving the deal. Salazar said he hoped that this would occur before the end of the year.

For more information, please see:

BBC News – US to Pay $3.4bn to Settle Native Americans Land Case – 8 December 2009

Bozeman Daily Chronicle – American Indians at MSU Praise Cobell Settlement – 8 December 2009

Indian Country Today – Obama Administration Moves to Settle Cobell – 8 December 2009