The dams were constructed  during a 20-year period from 1946 to 1966. Our reviews for tribes at three reservations—Fort Berthold, Standing  Rock, and Cheyenne River—were conducted before Congress authorized  their additional compensation. Damages Caused to the Tribes at Seven Reservations as a Result of Dams on the Missouri River

The reservoirs created by the dams on the Missouri River permanently  flooded over 350,000 acres of land on seven reservations, ranging from  over 150,000 acres flooded on the Fort Berthold Reservation to less than  600 acres flooded on the Santee Reservation (see table 1). In addition to  the valuable river bottom land that was lost, the tribes lost any natural  resources and structural improvements on the land. The natural resources  lost included timber, wildlife, and native plants and berries. The structural  improvements lost included such things as homes and ranches. In some  cases, entire towns were lost. In addition to the direct damages, Congress has recognized that the tribes  also suffered indirect or intangible damages for the loss of assets of  unknown value. These losses included spiritual ties to the lands (for  example, cemeteries and tribal monuments); tribal claims to a homeland;  and benefits derived from living along the Missouri River. Compensation Provided to the Tribes on the Missouri River for the Damages Caused by the Dams

The tribes at the seven reservations that lost land due to the flood control  projects on the Missouri River originally received compensation for their  damages between 1947 and 1962, and they subsequently requested and  received additional compensation between 1992 and 2002 (see table 2). For the tribes at the five reservations that we have reported on in the past,  the original compensation was based on detailed assessments by the U.S.  government and the tribes of the damages caused by the dams and, in  some cases, protracted settlement negotiations over how much the tribes  should be compensated for their losses. The results of the settlement  negotiations were that the U.S. government and the tribes were unable to  reach an agreement. We used the inflation rate and an  interest rate to adjust the difference to reflect a range of current values,  using the inflation rate for the lower end of the range and the interest rate  for the higher end. The three largest additional compensation payments—Cheyenne  River, $290.7 million in 2000; Fort Berthold, $149.2 million in 1992; and  Standing Rock, $90.6 million in 1992—were all within the ranges we  calculated. The four smaller additional compensation payments were calculated using  a different approach. Rather, the Crow Creek Sioux and Lower Brule Sioux tribes’  consultant asserted that since the tribes suffered the same type of  damages as the Standing Rock Sioux tribe, they should be provided with  additional compensation commensurate, on a per-acre basis, with the  additional compensation provided to the Standing Rock Sioux tribe in  1992. In our 2006 report, where we reviewed the additional compensation  claims by the Crow Creek Sioux and Lower Brule Sioux tribes, we found  that the additional compensation provided to the Crow Creek Sioux tribe  in 1996 was slightly above the range we calculated and the additional  compensation provided to the Lower Brule Sioux tribe in 1997 was within  the range we calculated. The additional compensation authorized in 2002 for the Yankton Sioux and  Santee Sioux tribes was also partially based on a per-acre calculation.
Why GAO Did This Study

From 1946 to 1966, the government constructed five dams as flood control projects on the Missouri River in North Dakota and South Dakota. The reservoirs created behind the dams flooded portions of seven Indian reservations--Fort Berthold, Cheyenne River, Standing Rock, Lower Brule, Crow Creek, Yankton, and Santee. The tribes at these seven reservations received compensation when the dams were built as well as additional compensation over the years that followed. Since 1991, GAO has issued three reports on additional compensation claims for tribes at five reservations: (1) 1991--Fort Berthold and Standing Rock (GAO/RCED-91-77); (2) 1998--Cheyenne River (GAO/RCED-98-39); and (3) 2006--Crow Creek and Lower Brule (GAO-06-517). In these reports, GAO proposed that one recommended approach to providing additional compensation would be to calculate the difference between the tribe's final asking price and the amount that was appropriated by Congress and then adjust the difference using the inflation rate and an interest rate to reflect a range of current values. This testimony is based on GAO's three prior reports, and summarizes the damages estimated by the Department of the Interior and the compensation authorized by Congress, for dams constructed on the Missouri River.

What GAO Found

The reservoirs created by the dams on the Missouri River permanently flooded over 350,000 acres of land on seven Indian reservations, ranging from over 150,000 acres flooded on the Fort Berthold reservation to less than 600 acres flooded on the Santee reservation. In addition to the valuable river bottom land that was lost, the tribes also lost any natural resources and structural improvements on the land. The natural resources lost included timber, wildlife, and native plants. The structural improvements lost included such things as homes and ranches. In some cases, entire towns were lost. In addition to the direct damages, Congress has recognized that the tribes also suffered indirect or intangible damages for the loss of assets of unknown value. These losses included spiritual ties to the lands (for example, cemeteries and tribal monuments); tribal claims to a homeland; and benefits derived from living along the Missouri River. The tribes at the seven reservations that lost land due to the flood control projects on the Missouri River originally received compensation for their damages between 1947 and 1962, and they subsequently requested and received additional compensation between 1992 and 2002. For the tribes at the five reservations that we have reported on in the past, the original compensation was based on detailed assessments by the U.S. government and the tribes of the damages caused by the dams and, in some cases, protracted settlement negotiations. The U.S. government and the tribes were ultimately unable to reach settlement agreements, and Congress decided the compensation amounts. In each case, the original compensation authorized was less than what the tribes had requested, leading the tribes to request additional compensation. The three largest additional compensation amounts--Cheyenne River, $290.7 million in 2000; Fort Berthold, $149.2 million in 1992; and Standing Rock, $90.6 million in 1992--were all within the ranges calculated in GAO's 1991 and 1998 reports. Congress did not ask GAO to review the methodologies used to calculate the four smaller additional compensation amounts, all less than $40 million, before enacting the bills in 1996 (Crow Creek), 1997 (Lower Brule), and 2002 (Yankton and Santee). The Crow Creek Sioux and Lower Brule Sioux tribes were authorized additional compensation commensurate, on a per-acre basis, with the additional compensation provided to the Standing Rock Sioux tribe in 1992. Similarly, the additional compensation authorized in 2002 for the Yankton Sioux and Santee Sioux tribes was also partially based on a per-acre calculation.