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MINUTES OF THE HOUSE

NATURAL RESOURCES, AGRICULTURE, & ENVIRONMENT STANDING COMMITTEE

Room C445, State Capitol

                    March 5, 2013

Members Present:    Rep. Mike Noel, Chair
    Rep. Doug Sagers, Vice Chair
    Rep. Roger Barrus
    Rep. Joel Briscoe
    Rep. Mel Brown
    Rep. Kay Christofferson
    Rep. Jack Draxler
    Rep. Susan Duckworth
    Rep. Becky Edwards
    Rep. Steve Handy
    Rep. Ken Ivory
    Rep. John Mathis
    Rep. Mike McKell
    Rep. Merrill Nelson
    Rep. Ryan Wilcox
    Rep. Larry Wiley

Staff Present:    Mr. J Brian Allred, Policy Analyst
            Ms. An Bradshaw, Committee Secretary
    
Note:    A list of visitors and handouts are filed with committee minutes

Chair Noel called the meeting to order at 4:44 p.m.

MOTION:    Rep. Duckworth moved to approve the minutes of March 4, 2013. The motion passed unanimously with Rep. Brown, Rep. Draxler, Rep. Mathis, Rep. Nelson, Rep. Wilcox, and Rep. Sagers absent for the vote.

Rep. Barrus assumed the chair.

H.C.R. 11    Concurrent Resolution Supporting the Transfer of Administration of the Utah Navajo Trust Fund to the Dinéh Committee (Rep. M. Noel)

MOTION:    Rep. Noel moved to amend the resolution as follows:

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.

1.    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;

2.    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;

3.    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;

4.    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;

5.    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;  
}


6.    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;

7.    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       ;


8.    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;


4, Line 114


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


9.    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       ;


10.    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;


11.    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:


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       .


12.    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.

13.    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       .


14.    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.

The motion to amend passed unanimously with Rep. Brown, Rep. Draxler, Rep. Mathis, Rep. Nelson, Rep. Sagers, and Rep. Wilcox absent for the vote.

Rep. Noel introduced the resolution to the committee with the assistance of Mr. John Pace, counsel, Utah Dinéh Corporation, and Mr. Kenneth Maryboy, San Juan County Commissioner and Navajo Nation Councilor.

Spoke in favor of the resolution:    Mr. Mark Maryboy, Utah Dinéh Corporation
                    Mr. Leonard Lee, Aneth Chapter, Navajo Nation
                    Mr. Kenny Victor, Teesnospos Chapter, Navajo Nation
                    Ms. Mary Benally, Mexican Water Chapter, Navajo Nation
                    Mr. Willie Grayeyes, Navajo Mountain Chapter, Navajo                     Nation
                    Ms. Carol Tallis, Oljato Chapter, Navajo Nation
                    Ms. Evangeline Gray, Utah Dinéh Corporation         
MOTION:    Rep. Sagers moved to pass the resolution out favorably as amended. The motion passed unanimously with Rep. Briscoe absent for the vote.

Rep. Noel resumed the chair.






H.B. 365    Swine Amendments (Rep. J. Mathis)

Rep. Mathis introduced the bill to the committee.

Spoke in favor of the bill:    Sen. Hinkins, co-sponsor

Spoke to the bill:        Mr. Sterling Brown, Utah Farm Bureau
                Dr. Val Poll, Utah Veterinary Medical Association

MOTION:    Rep. Wilcox moved to pass the bill out favorably as amended on March 4, 2013 . The motion passed with Rep. Sagers and Rep. Wiley voting in opposition and Rep. Briscoe absent for the vote.

H.B. 166    Water Rights Amendments (Rep. K. Ivory)

Rep. Ivory moved to amend the bill as follows:


1.    Page 6, Lines 178 through 181 :    

             178          Section 3.
{   Division   }        Department       of Natural Resources study of issues related to the state's

             179      jurisdiction over water rights.
             180          The
{   Division   }        Department       of Natural Resources shall:

             181          (1) conduct a study of the state's jurisdiction over water rights, including:

2.    Page 7, Lines 189 through 191 :    

             189          Section 4. Repeal date.
             190          Section 3,
{   Division   }        Department       of Natural Resources study of issues related to the state's

             191      jurisdiction over water rights, is repealed on November 30, 2013.

The motion to amend passed unanimously with Rep. Briscoe, Rep. Mathis, Rep. Nelson, and Rep. Wiley absent for the vote.

Rep. Ivory introduced the bill to the committee with the assistance of Mr. Sterling Brown, Utah Farm Bureau.

Spoke in favor of the bill:    Mr. Kent Jones, Utah State Engineer


MOTION:    Rep. Christofferson moved to pass HB166 out favorably as amended. The motion passed unanimously with Rep. Barrus, Rep. Briscoe, Rep. Nelson, and Rep. Wiley absent for the vote.

H.J.R. 14    Joint Resolution on Water Rights (Rep. K. Ivory)

Rep. Ivory introduced the resolution to the committee.

MOTION:    Rep. Draxler moved to pass the resolution out favorably. The motion passed unanimously with Rep. Barrus, Rep. Briscoe, Rep. Nelson, Rep. Wilcox, and Rep. Wiley absent for the vote.

MOTION:    Rep. Mathis moved to adjourn the meeting. The motion passed unanimously with Rep. Barrus, Rep. Briscoe, Rep. Nelson, Rep. Wilcox, and Rep. Wiley absent for the vote.

Chair Noel adjourned the meeting at 6:51 p.m.    











             _________________________
    Rep. Mike Noel, Chair