Here is an honest question and I’m not trying to cause some kind of combustible debate, I’m just honestly curious. In the event the Osage Nation develops alternative energy resources on our reservation, does that income belong to the shareholders or the Nation? Which leads me to the most logical crossroads is what roll does water rights play in that equation? Is the surface of a body of water considered “the surface” or is that just land that’s under water? If so, what about under water aquifers and springs? Regardless of whether income can be derived from this resource, it seems like for aquifers etc., we can exert jurisdiction over those properties. Technically speaking there are minerals in that water, it’s not pure h20. It seems like this is a fair question because the idea of a well going well beyond the 18 inches of top soil would not have been a foreign concept at the time. To my knowledge, the only other resource aside from oil that falls into this classification is the rock quarry out west of Pawhuska. Anyone care to shed some light on this for me?
Eskwitt: Renewable energy deals must be fair
By Scott Eskwitt
Story Updated: Jun 11, 2010
http://www.indiancountrytoday.com/opinion/96135249.html
Returning from yet another “Renewable Energy in Indian Country” conference, I was struck by what passes for a “fair” or “equitable” renewable energy development deal in Indian country. My question is always “fair and equitable for whom?” Many times I cannot find where the tribe’s interests are considered at all. If they are, the agreements are written in such a way that the developer can easily avoid commitments (tribal ownership, training, employment, education, community development and promised minimum payments, among others.)
If a tribe truly desires to develop renewable energy on their land, there are some suggestions I respectfully submit to Native leaders for consideration. These guidelines will help create a basis for development of renewable energy projects that truly address tribal interests and provide the best opportunity to realize the benefits that Native America and First Nations should derive from renewable energy development.
- The tribe should own the project. By “own” I mean 90 percent or more of the completed project should be tribally-owned. No leases, no royalties and no minority share. The project development and financing may initially give ownership in favor of the investor/financier because it is required to activate the various tax benefits and financing techniques that are available for renewable energy. However, once those credits and accelerated depreciation are exhausted, ownership should be with the tribe.
- No “option” to buy increased shares later. The deal should include the up-front terms for development of the project, payments to the tribe and the back-end terms for tribal ownership.
- The tribe should be a partner with the developer in a new business entity that will protect both parties. Tribal contribution should consist of land and not money. Tribes have taken enough risks. Don’t give up any property to the developer. Any agreement should be in the form of a grant of exclusivity (management contract) or lease for a specific period of time, allowing for a comprehensive feasibility study. It is appropriate to not require payment from the developer during the lease term. After all, the costs of feasibility studies and permitting and approvals are significant and should be consideration enough. Make sure any agreement states that the tribe is entitled to copies of all studies at no cost, and that all permits and approvals are granted in the name of a tribally-owned entity. Developers could hold those reports and approvals hostage.
| The deal should include the up-front terms for development of the project, payments to the tribe and the back-end terms for tribal ownership. |
- Demand training and jobs for tribal members. This one can be tricky. Developers can promise this because they know that many times there will be few tribal members trained to work on renewable energy. Any agreement should require training. If that means sending a number of tribal members off-reservation to the nearest community college renewable energy program or sending them to work at other facilities, then that should be included. If not, then the developer can claim that the clause is impossible to fulfill and before you know it, the promise of bringing renewable energy jobs to the tribe is forgotten.
- Never sign any agreement requiring the tribe to purchase a proprietary product from a single manufacturer. You are then locked in to their product and their company when there may be better-suited technology in the marketplace provided under better terms. The deal should be with a project developer who has no ties to any specific technology. Further, the tribe has every right to demand that the RFP’s for the various pieces of the job – from financing to engineering to construction and operation – are all written with input from representatives of the tribe’s council and planning, energy and education committees (at the very least).
The project developer must practice sustainable economic development. The positive economic, social, and environmental impact of green energy on tribal lands is greatly enhanced by embedding the green energy projects within broader sustainable economic development strategies.
| Too many tribes think it would be exciting to develop renewable energy but are quickly frustrated by internal politics and by the sheer number of companies knocking on their door. |
Design and implementation of sustainable economic development strategies in association with the development of green energy on tribal lands through a tribally-owned utility company leads to more prosperous and diversified tribal economies. It also creates jobs for tribal members and economic development in harmony with traditional cultural values.
There are some very important things that any credible renewable energy developer should expect and require from the tribe. Most important is commitment to renewable energy in general and to a specific project. It is important to appoint a committee and charge them – under set timelines – with actual responsibility and authority to explore and develop renewable energy.
The tribe must be committed to providing the land, cooperating with grant applications, helping to facilitate feasibility study work, clearing roadblocks to allow rapid permitting and approvals, and be willing to create a tribal utility company to eventually own and operate the project.
Too many tribes think it would be exciting to develop renewable energy but are quickly frustrated by internal politics and by the sheer number of companies knocking on their door. By using these recommendations, Native nations can quickly eliminate a significant number of pitfalls.
Scott Eskwitt is the director of NativeOne Energy, LLC, a Native-owned renewable energy company with a mandate to develop renewable energy projects on Native American and First Nations lands that place the interests of Native nations first. For more information e-mail [email protected].
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1) Wind power was not considered in the 1906 allotment act which was terminated by the Indian reorganization act of 1938.So if it is not listed in the 1906 act explicitly it should be fair game for the nation.
2) The Osage nation bing a dependent nation treating directly with congress water rights should be important too us Texas Oklahoma Arkansas and Kansas are deciding up the water for this part of the county right now for the next 50 to 100 years Texas is offering Oklahoma a lot of money to grantee water flow over the next 100 years some of that water flows though Osage county aka Indian country. There is an Oklahoma water board and the Osage nation should work with it if possible.
3)The last time i looked Osage county had 63 megawatts of generating capacity. 1 small area in north west Osage county has class three wind most of the rest is class 2 . The large 1.5 to 2 million dollar windmills have a payback of about 3 years in class 3 wind and 6 to 7 in class 2
we should buy them outright as well as the land they are on pay for maintenance until Osage can be trained to do it. Between wind solar and anything else we can come up with lets put the coal and oil fired power plants to sleep most of the time every megawatt and a half is a barrel of oil we do not have to import.
Check out the interview of Ditlev Engel of Vestas Wind Systems on the Charlie Rose Show with regard to R&D for batteries for the storage of wind generated energy in order to get in on the ground level. At some point in the future, it will become a multibillion dollar industy. See also Wikipedia about lithium ion batteries.
No lithium ion battery currently has a charge recharge cycle life to make even cars economical. Edison cells many of which have been in service for 80 or more years do but they are heavy and expensive to produce no current battery is yet cheap enough to store wind power economically. This is not to say that lithium ion battery’s cant get there they are getting closer with each generation. Wind powers biggest drawback is that it cant be throttled up on demand so cheap storage sure would make it work better.
currently about the only thing that would be cheap enough would be to pump water back up behind hydro-power dams during off peak times to be run though one more time. All battery’s have loose in the 30 to 40 percent range generally newer lithium ion types may be able to get that down to 15 or 20 percent these looses are both ways this is still vary high. pumping water looses would be more like 10 percent up 7 percent down much better numbers. Grants.gov lists many grants that the tribe could bid on in energy development alternate or other wise. If we have a will lots of federal money is available research as well as development of infrastructure demonstration of concept right now if the tribe does not apply we can not win.