House of Representatives State of Utah




         UTAH STATE CAPITOL COMPLEX . 350 STATE CAPITOL

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Graphic file number 0 named letter~1.jpg with height 78 p and width 81 p Left aligned
         P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029

        March 5, 2013

Madam Speaker:

    The Natural Resources, Agriculture, and Environment Committee reports a favorable recommendation on H.C.R. 11, CONCURRENT RESOLUTION SUPPORTING THE TRANSFER OF ADMINISTRATION OF THE UTAH NAVAJO TRUST FUND TO THE DINéH COMMITTEE, by Representative M. Noel, with the following amendments:

1.    Page 1, Lines 11 through 14 :    

             11          This concurrent resolution of the Legislature and the Governor expresses the
             12      Legislature's and the Governor's

{   intent to   }        support for the       transfer        of       all      {   Utah Navajo Trust Fund   }        oil and gas royalties      

             13      administrative and fiduciary obligations to the Utah Dinéh Corporation under specified
             14      conditions.

2.    Page 1, Lines 17 through 19 :    

             17          .    expresses the Legislature's and the Governor's
{   intent to transfer all Utah Navajo

             18      Trust Fund  
}
  support for the transfer of all oil and gas royalties       administrative and fiduciary obligations to the Utah Dinéh Corporation

             19      subject to federal action;

3.    Page 2, Lines 51 through 52 :    

             51          WHEREAS, pursuant to the Federal Acts, Utah
{   must   }        is directed to      

administer the      {   UNTF   }        oil and gas royalties       for the


             52      health, education, and general welfare of the Navajo Indians residing in San Juan County;

4.    Page 3, Lines 67 through 69 :    

             67          WHEREAS, H.B. 352 resulted in the establishment of what became known as the
             68      Navajo Royalty Holding Fund (NRHF) no later than July 1, 2008, into which all
{   UNTF   }        oil and gas royalties      

             69      monetary assets and future royalty payments would be placed;

5.    Page 3, Lines 77 through 79 :    

             77          WHEREAS, litigation is now pending in United States District Court seeking to force
             78      the state of Utah to resume active administration of the
{   UNTF   }        oil and gas royalties       for the health, education, and

             79      general welfare of the beneficiaries;

6.    Page 3, Lines 80 through 86 :    

             80          WHEREAS, the health, education, and general welfare of the beneficiaries would be
             81      improved by continuing projects previously funded, wholly or partially, with
{   UNTF   }        oil and gas       funds,

             82      including housing, water development, range improvement, delivery of education, healthcare,
             83      and other social services;
             84          
{   WHEREAS, although funded in part with NRHF expenditures, the subsequent cutoff of

             85      funding has left nonmonetary assets, including partially built houses, exposed to the extreme
             86      elements of southeastern Utah;  
}


7.    Page 4, Lines 90 through 93 :    



             90      governmental and private financial institutions, the beneficiaries would benefit from the
             91      expenditure of
{   UNTF   }        oil and gas royalty       money for economic development in San Juan County;

             92          WHEREAS, the
{   UNTF   }        oil and gas royalties       should be actively administered in these areas of need for the

             93      health, education, and general welfare of the beneficiaries;

8.    Page 4, Lines 94 through 95 :    

             94          WHEREAS, the Federal Acts provide no mechanism for the state of Utah to resign as
             95     
{   UNTF   } trustee        of the oil and gas royalties       ;


9.    Page 4, Lines 110 through 113 :    

             110          WHEREAS, the UDC's proposed amended bylaws position the Utah Dinéh to play
             111      important roles in
{   UNTF   }        oil and gas royalties       administration and oversight, require that the overall value of the

             112     
{   UNTF   }        oil and gas royalties' assets       , currently estimated at approximately $55,000,000, be maintained and, if consistent with

             113      applicable law and
{   UNTF   }        oil and gas royalties       purposes, grown;


10.    Page 4, Line 114 :    

             114          WHEREAS, the UDC's proposed amended bylaws require that any
{   UNTF   }        oil and gas       assets made


11.    Page 5, Lines 125 through 126 :    

             125          WHEREAS, the members of each Utah chapter of the Navajo Nation have previously
             126      resolved to support the UDC's effort to become the
{   UNTF   } trustee        of the oil and gas royalties       ;


12.    Page 5, Lines 127 through 130 :    



             127          WHEREAS, this support will again be ensured by means deemed reasonable and
             128      reliable prior to any transfer of
{   UNTF   }        oil and gas royalties       administration to the UDC;

             129          WHEREAS, the San Juan County Board of Commissioners unanimously supports
             130      transfer of administrative and fiduciary obligations for the
{   UNTF   }        oil and gas royalties       to the UDC;


13.    Page 5, Lines 134 through 139 :    

             134          WHEREAS, the UDC intends to administer the
{   UNTF   }        oil and gas royalties       pursuant to all applicable laws

             135      and regulations, including the common law of Indian trusts that imposes strict and exacting
             136      fiduciary obligations upon any trustee administering the property of Native Americans; and
             137          WHEREAS, any transfer of
{   UNTF   }        oil and gas royalties       administrative and fiduciary obligations to the UDC

             138      must ensure that the state of Utah is indemnified and held harmless for any liability, damages,
             139      or litigation costs resulting from
{   UNTF   }        oil and gas royalties       administration:


14.    Page 5, Lines 140 through 143 :    

             140          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
             141      Governor concurring therein, expresses its
{   intent to   }        support for the       transfer all      {   Utah Navajo Trust Fund   }        oil and gas royalties      

             142      administrative and fiduciary obligations to the Utah Dinéh Corporation conditioned on removal
             143      of the state as trustee, by an act of Congress
  or a federal court order that can then be used to encourage congressional action and that indemnifies and holds harmless the state of Utah from any and all legal and equitable claims       .


15.    Page 5, Lines 144 through 148 :    



             144          BE IT FURTHER RESOLVED that the Legislature and the Governor declare that any
             145      transfer of
{   Utah Navajo Trust Fund   }        oil and gas royalties       administrative and fiduciary obligations to the Utah Dinéh

             146      Corporation by Congressional act
  or federal court order       must also indemnify and hold harmless the state of Utah

             147      from any and all legal and equitable claims arising from future
{   Utah Navajo Trust Fund   }        oil and gas royalties      

             148      administration by the Utah Dinéh Corporation and for litigation costs related to any claims.

16.    Page 5, Line 149 through Page 6, Line 153 :    

             149          BE IT FURTHER RESOLVED that the Legislature and the Governor declare that any
             150      transfer of Utah Navajo Trust Fund administrative and fiduciary obligations to the Utah Dinéh
             151      Corporation should require that the value of fixed and monetary Utah Navajo Trust Fund assets
             152      remain at least at current levels so that funds will be available to promote future generations of
             153      Utah Navajo Trust Fund beneficiaries' health, education, and general welfare
  and that the Utah Dineh Corporation should operate under bylaws that have the protections described in this resolution       .


17.    Page 6, Lines 154 through 157 :    

             154          BE IT FURTHER RESOLVED that the Legislature and the Governor declare that, if
             155      the foregoing objectives are ensured, the Legislature and the Governor support action by
             156      Congress
  or a federal court order       to transfer the      {   Utah Navajo Trust Fund's   }        oil and gas royalties       administrative and fiduciary obligations to

             157      the Utah Dinéh Corporation.



    Respectfully,

    Michael E. Noel
    Committee Chair

Voting: 15-0-1
3 HCR011.HC1.wpd 3/5/13 6:51 pm ballred/JBA PO/BRH


Bill Number
Action Class
Action Code

*HCR011*
*H*
*HCRAMD*

HCR011
H
HCRAMD