Agreement in Principle for Resolving Issues in Connection with the Navajo-Hopi Settlement Act
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                  AGREEMENT IN PRINCIPLE FOR RESOLVING
                      ISSUES IN CONNECTION WITH THE
                       NAVAJO-HOPI SETTLEMENT ACT
                      (Pub. L. 93-531, as amended)

     WHEREAS, the Hopi Tribe, the Navajo Nation, and the MANYBEADS 
     Plaintiffs agree that it is in the best interests of the Hopi 
     Tribe, the Navajo Nation, their respective members, and the 
     MANYBEADS Plaintiffs, that a final settlement of certain 
     issues remaining in connection with the Navajo - Hopi Land 
     Settlement Act, Pub. L. 93-531, as amended, be reached by 
     negotiation and voluntary agreement among the affected 
     parties; and, 

     WHEREAS, the United States recognizes that a negotiated 
     settlement is in the best interests of all parties including 
     the United States; and, 

     WHEREAS, the Hopi Tribe, the Navajo Nation, the MANYBEADS 
     Plaintiffs, and the United States benefit from such a 
     voluntary settlement, and will fully support such a voluntary 
     settlement; 

          NOW THEREFORE THE PARTIES AGREE AS FOLLOWS: 

     I. AUTHORITY AND UNDERTAKING OF THE NEGOTIATORS 

          A. The Hopi Relocation Task Team ("Hopi Team") is the 
     team appointed by the Hopi Tribal Council to discuss and make 
     recommendations to the Hopi Tribe concerning a resolution of 
     matters outstanding among the Hopi Tribe, the Navajo Nation, 
     their respective members, the MANYBEADS Plaintiffs, and the 
     United States. No action of the Hopi Team is to be considered 
     final action of the Hopi Tribe until presented to Hopi 
     villages and ratified by the Hopi Tribal Council. The Hopi 
     Team agrees to present and to provide its full support for 
     this agreement in meetings with the Hopi Tribal Council and 
     the Hopi villages. 

          B. The Navajo-Hopi Land Commission ("Task Force") is the 
     duly authorized team appointed by the Navajo Nation to discuss 
     and make recommendations to the Navajo Nation concerning a 
     resolution of matters outstanding among the Hopi Tribe, the 
     Navajo Nation, their respective members, the MANYBEADS 
     Plaintiffs, and the United States. No action of the Task Force 
     is to be considered final action of the Navajo Nation until 
     presented to affected communities and ratified by the Navajo 
     Nation Council. The Task Force agrees to present and to 
     provide its full support for this agreement in meetings with 
     the Navajo Nation Council and the affected communities. 

          C. The United States' negotiators from the Departments of 
     Justice and the Interior ("Government Negotiators") are the 
     proper representatives of the United States in the matter. No 
     action of the Government Negotiators is to be considered final 
     action of the United States until ratified by the Secretary of 
     the Interior and the Attorney General, or his representative 
     appointed for this purpose. The Government Negotiators agree 
     to present and to provide their full support for this 
     agreement in meetings within the Department of the Interior 
     and the Department of Justice, and other necessary entities 
     within the Executive branch of the United States. 

          D. Lee Brooke Phillips is the proper representative of 
     the MANYBEADS Plaintiffs in the matter. No action of Mr. 
     Phillips is to be considered final action of the MANYBEADS 
     Plaintiffs until ratified by the MANYBEADS Plaintiffs. Mr. 
     Phillips agrees to present and to provide his full support for 
     this agreement in meetings with the MANYBEADS Plaintiffs. 

          E. Judge Harry R. McCue, Magistrate for the United States 
     District Court for the Southern District of the California, 
     has presided over the settlement discussions in this matter 
     pursuant to the orders of the Ninth Circuit Court of Appeals 
     in the cases pending before that Court captioned MANYBEADS v. 
     UNITED STATES and MASAYESVA v. ZAH. Judge McCue agrees to 
     assist the parties in explaining this agreement: to the Hopi 
     Tribal Council and to the Hopi villages, if requested by the 
     Hopi Team; to the Navajo Nation Council and the Navajo tribal 
     members, if requested by the Task Force; to the MANYBEADS 
     plaintiffs, if requested by Mr. Phillips; and to the 
     Department of the Interior and the Department of Justice, and 
     other necessary entities within the Executive and Legislative 
     branches of the United States, if requested by any party 
     hereto. 

     II. TERMINATION OF AGREEMENT IN PRINCIPLE 

          The Hopi Team, the Task Force, Mr. Phillips, and the 
     Government Negotiators agree to use their best efforts to 
     conclude and sign a settlement on the issues addressed in this 
     Agreement in Principle on or before October 30, 1992. If no 
     such agreement is reached and signed among the above parties 
     by October 30, 1992, and ratified by the duly authorized 
     principals of the negotiators by November 20, 1992 (except for 
     the United States which shall have until November 25, 1992 to 
     ratify the Agreement), the agreements identified herein lapse 
     without obligation or liability to any of the parties. 

     III. ACCOMMODATION OF NAVAJOS ON HOPI-PARTITIONED LAND 

          A. ELIGIBILITY. To any Navajo on List A provided to the 
     Hopi Tribe, a copy of which is attached hereto as Appendix A, 
     and, in addition, (i) those Navajos domiciled on the HPL who 
     are temporarily away for purposes of education, employment, 
     military service or medical need; (ii) those Navajo legal 
     residents on the HPL who are subsequently certified eligible 
     by the Office of Navajo and Hopi Relocation; and (iii) such 
     other individuals, as agreed to by the Navajo and Hopi tribes, 
     the Hopi Tribe, will offer a lease allowing that person and 
     his or her spouse and children to remain on that portion of 
     the HPL covered by their lease. The number of homesites 
     available for lease is 112. Additional homesites may be made 
     available subject to agreement between the Hopi Tribe and 
     homesite applicant. 

          B. PARTIES TO THE LEASE. The HPL lease will be signed by 
     the individual lessees, who shall include all adult eligible 
     Navajos as defined in paragraph III.A, the Hopi Tribe, the 
     Navajo Nation, and the United States. Spouses of adult 
     signatories to an HPL lease shall also sign the family's HPL 
     lease; children of adult signatories to an HPL lease shall 
     also sign the family's HPL lease upon attaining majority. 

          C. LEASE SIZE. The HPL lease will consist of a three (3) 
     acre homesite and up to ten (10) acres of currently used or 
     nearby farmland, consistent with the Hopi Tribe's 
     Comprehensive Land Use Plan ("plan"). Subsequent changes to 
     the Plan shall not reduce or change to the detriment of the 
     lessee the lease terms unless such change is agreed to between 
     the Hopi Tribe and the affected lessees. The three acre 
     homesite will be expanded on an individual basis to include 
     the residences of all eligible Navajos at that site. 

          D. GRAZING. The Navajo lessees, as a group, shall be 
     provided a minimum of 2,800 SUYL by the Hopi Tribe. The Navajo 
     Nation shall make the allocation of the grazing rights 
     provided by the Hopi. Individual Navajo lessees may apply to 
     the Hopi Tribe for additional grazing privileges prior to the 
     signing of the Implementing Agreement. 

          E. CONSTRUCTION AND REPAIR. All structures related to 
     residential, farming, grazing or Navajo ceremonial use which 
     are currently on the HPL leaseholds shall remain permitted, as 
     part of each lease. The individual lessees shall be allowed to 
     repair, restore, and enlarge existing structures. The 
     individual lessees shall be permitted, after application, to 
     construct new structures on the lease areas so long as the 
     structures are related to residential, farming, grazing, or 
     Navajo ceremonial use. Applications for new permitted 
     structures will be processed and granted within seven days. 

          F. INFRASTRUCTURE. So long as it is in compliance with 
     applicable law and regulation, infrastructure may be 
     constructed by the Hopi Tribe, the Navajo Nation, other 
     appropriate parties including utilities, to serve the HPL 
     including but not limited to roads, electrical lines, water 
     systems, and other infrastructure related to the residential, 
     grazing and farming use of the HPL. Where such infrastructure 
     is constructed, the subject infrastructure shall be made 
     available to all HPL residents in the area on an equitable and 
     non-discriminatory basis. The parties providing such 
     infrastructure shall enter into appropriate agreements 
     including, but not limited to, the sharing of costs. 

          G. JURISDICTION. 

               1. Except as otherwise provided in this Agreement 
     and in subparagraphs 2 and 3 below, the HPL leases and the 
     individual lessees will be subject to criminal and civil 
     jurisdiction of the Hopi Tribe. 

               2. For issues which are entirely Navajo related, 
     e.g., probate, domestic relations, child custody and adoption, 
     tribal benefits and services, etc., Navajo law will apply and 
     Navajo courts shall have sole jurisdiction over such matters. 
     Questions regarding ownership of HPL leases, however, shall be 
     decided consistent with the terms of the HPL leases. 

               3. The parties agree that a review procedure shall 
     be established for resolving disputes which affect leaseholds 
     and grazing privileges. Details of this provision will be 
     negotiated between the Navajo Nation, the MANYBEADS 
     Plaintiffs, and the Hopi Tribe. 

               4. The Hopi Tribe shall provide due process under 
     Hopi law and to treat Navajo lessees fairly and equitably. 

          H. TERM OF ACCOMMODATION. The HPL leases shall be for a 
     term of 75 years. Lessees may apply to the Hopi Tribe for 
     additional extension of the lease period. 

          I. TRANSFER. The HPL leases shall be transferable for 
     eligible persons, as defined in Section III.A of this 
     Agreement, to other eligible persons or to children 
     subsequently born to an eligible person, provided those 
     children reside on the HPL at the time of transfer. Absence 
     from the leasehold to attend school, work, illness, military 
     service, etc., shall not be considered in determining whether 
     an individual has lived on the HPL leasehold. In the event of 
     a transfer, the transfer would not become effective until the 
     transferee(s) agree to continue to reside on the property in 
     accordance with the terms and conditions of the HPL lease and 
     executed the lease as the new lessee(s) thereunder. The 
     transferee(s) would be entitled to the use and benefit of the 
     lease for the remainder of the lease term. The transfer of a 
     lease shall be according to the terms and conditions of the 
     lease. 

          J. TERMINATION FOR CAUSE. The HPL leases will be 
     terminable for cause. Cause shall include: 

               (1) Non-use of the HPL leased premises for 
     residential purposes by the lessee or his or her family and/or 
     descendants for a substantial period of time exceeding 2 
     years. 

               (2) A lessee's knowingly violation of substantive 
     material terms or conditions of the HPL lease. Such lease 
     termination shall not affect the rights of other lessees who 
     did not participate in the violation from remaining on the HPL 
     leasehold. 

               (3) Individual HPL lessees may have their lease 
     rights terminated for the lessee's conviction in a court of 
     competent jurisdiction of violation of certain felonies as 
     defined under Federal law or violation of certain Hopi tribal 
     ordinances or laws. A list of the Federal and Hopi laws which 
     constitute offenses which could subject an individual, if 
     convicted, to lease termination will be negotiated by the Hopi 
     Tribe, the Navajo Nation, and the MANYBEADS Plaintiffs. Such 
     lease termination, however, shall not affect the rights of 
     other HPL lessees residing on the same lease premises. 

               (4) Failure to pay rent. If the Hopi Tribe commences 
     a proceeding to terminate a lease (pursuant to paragraphs 1 
     through 4 above), the Hopi Tribe shall provide all affected 
     lessees and the Navajo Nation with written notice and a 
     reasonable opportunity to be heard and to cure the violation. 

          K. EFFECT ON RELOCATION BENEFITS. The passage of 3 years 
     following the acceptance of homesite lease constitutes a 
     waiver of any and all rights the lessee has to relocation 
     benefits under 25 U.S.C.  640d. 

          L. LEASE APPLICATION. Any Navajo meeting the requirements 
     of Section III.A above is entitled to enter into an HPL lease 
     with the Hopi Tribe within 1 year after Congressional 
     enactment effectuating the Agreement. The lease form to be 
     used will be negotiated by the Hopi Tribe, the Navajo Nation, 
     and the MANYBEADS Plaintiffs. Within 13 months after the 
     effective date of implementing settlement legislation, the 
     United States shall implement the provisions of 25 Code of 
     Federal Regulations  700.137 (1992 ed.) on the New Lands for 
     all Navajos residing on the HPL who are eligible for a 
     replacement home from the ONHIR but have not made timely 
     arrangements for a lease on the HPL. Those provisions shall be 
     fully implemented within 3 years of the commencement of this 
     process. 

          M. FUND FOR SUBSEQUENT NAVAJO RELOCATIONS. Any Navajo 
     whose lease is terminated for cause within 7 years following 
     the acceptance of that lease on the HPL shall be eligible for 
     temporary relocation assistance. Such assistance shall be made 
     available in a timely manner within 30 days by the ONHIR in 
     amounts and according to the presently established ONHIR 
     regulations applicable to temporary relocation assistance and 
     such other funds as are reasonably necessary. 

          N. SUNSET FOR RELOCATION OFFICE ACTIVITIES ON THE HPL. 
     Within 3 years of the effective date settlement legislation, 
     the ONHIR, with the continued assistance and the cooperation 
     of the Navajo Nation in processing applications for homesite 
     leases on the Navajo Reservation, shall have completed all of 
     the activities with regard to voluntary relocation of Navajos 
     electing to relocate from the Hopi partitioned lands. It is 
     expressly understood among the parties that nothing in this 
     Settlement Agreement or settlement legislation shall allow the 
     ONHIR to change its priority system in a manner which would 
     provide HPL relocates priority over other eligible Navajos 
     living in unsafe housing. 

          O. RENT. The Navajo Nation and the Hopi Tribe agree to 
     negotiate an appropriate rent. 

          P. INTERIM IMPLEMENTATION. Between the signing of this 
     Agreement in Principle and the effective date of implementing 
     legislation, the parties agree to implement this Agreement on 
     an interim basis. 

          Q. EQUAL TREATMENT. Navajo lessees on the HPL shall be 
     subject to the same rules and regulations and provided with 
     the same access to infrastructure and resources as members of 
     the Hopi Tribe residing on the HPL. 

          R. SECTION 106 NOTICE. The United States shall continue 
     to provide the MANYBEADS Plaintiffs with notice of proposed 
     government fencing and government construction projects on the 
     HPL and to otherwise comply with Section 106 of the NHPA. 

     IV. DISMISSAL OF CASES 

          A. The Owelty, Damage, Use, New Construction, Post-
     Partition Rent, MANYBEADS, Claims Court cases (by the Hopi 
     Tribe) will be dismissed with prejudice. The parties shall 
     attach to the Implementing Agreement a list of these cases by 
     proper citation and docket number. 

          B. The Navajo Nation and the Hopi Tribe waive and 
     relinquish with prejudice all claims against the United States 
     they might have as of this date under 25 U.S.C.  640d. 

          C. Upon the effective date of implementing legislation, 
     the Navajo Nation and the United States agree to collectively 
     seek remission of any contempt fine which may be imposed 
     against the Navajo Nation in the new construction litigation 
     pending the District Court of Arizona. The Hopi Tribe shall 
     not oppose such application. 

     V. COMPENSATION TO THE HOPI TRIBE 

          A. C.O. Bar Ranch 

               1. The Navajo Tribe shall purchase the C.O. Bar 
     Ranch and transfer all of that ranch west of the ridge line 
     nearest to the Little Colorado River to the Hopi Tribe, except 
     for additional acreage which shall be identified by the Navajo 
     Nation. The total acreage of the land retained east of the 
     ridge line and identified by the Navajo Nation shall not 
     exceed 35,000 acres. Those portions of the C.O. Bar Ranch 
     retained by the Navajo Nation pursuant to the agreement 
     described above shall be taken into trust for the Navajo 
     Nation, except for the trust allotments therein which have 
     already been taken into trust for the allotees. 

               2. The Navajo Tribe shall relinquish to the Hopi 
     Tribe a portion of Federal lands not to exceed 35,000 acres 
     (agreeable to the United States, the Navajo Nation, and Hopi 
     Tribe) and contiguous to the C.O. Bar Ranch from the Espil 
     Ranch in equal acreage to that portion of the C.O. Bar Ranch 
     that has been retained by the Navajo Nation as described 
     above. 

               3. The United States shall take into trust for the 
     Hopi Tribe the property described in (1) and (2) above. The 
     acreage described in paragraph (2) above shall not exceed 
     35,000 acres. 

               4. No lands shall be taken in trust by the United 
     States for either Tribe pursuant to this Agreement until 
     implementing legislation has been enacted. 

          B. The religious leaders of the Navajo Nation and the 
     Hopi Tribe shall meet to discuss the Sipapu. If they do not 
     reach an agreement within three months of Ratification of this 
     Agreement, the Hopi Tribe and the Navajo Nation shall enter 
     into negotiations regarding the status of land at the Sipapu. 

          C. The Navajo Tribe shall grant to the Hopi Tribe a 
     corridor to be taken in trust by the United States for the 
     Hopi Tribe linking the 1882 Hopi Reservation with the C.O. Bar 
     Ranch. The Navajo Nation shall draw the corridor line and 
     determine its dimensions. 

          D. Hart Ranch 
     
          The United States shall purchase the Hart Ranch and 
     transfer all of that ranch to the Hopi Tribe. In the event 
     that purchase cannot be made for $5 million, or less, or the 
     state lands cannot be acquired, the United States shall pay to 
     the Hopi Tribe $5 million if no other alternative can be 
     agreed upon. 

          E. The United States shall pay $15 million to the Hopi 
     Tribe. 

          F. The United States agrees to assist the Hopi Tribe in 
     managing the HPL land and the newly acquired lands. 

          G. Cliff Springs 
     
          The parties agree that members of both the Navajo and 
     Hopi Tribes shall be given free and unimpeded access to all 
     identified religious on all portions of either reservation. 
     The Navajo Nation agrees that the Hopi Tribal members who are 
     visiting the shrine at Cliff Springs would be able to gather 
     fir branches outside the two-mile radius established in 25 
     U.S.C.  640d-19 and that members of both the Hopi and Navajo 
     tribes be given free and unimpeded access to all identified 
     religious shrines on all portions of either reservation, 
     provided the Hopi Tribe meets with the local Navajo residents 
     near Cliff Springs prior to the initial visit and establishes 
     amicable relations with the Navajo residents prior to 
     gathering fir branches. 

     VII. UNITARY SETTLEMENT 

          The parties agree that each of the provisions of the 
     Agreement are interrelated and interdependent on the other 
     provisions of the Agreement. If an implementing agreement is 
     reached, the parties, and each of them, agree that they will 
     not offer or agree to anyone offering on their behalf any 
     additions or amendments to any legislation necessary to 
     effectuate this Agreement and that the amendment of any one 
     provision releases the parties from their agreements reflected 
     in the provisions of this Agreement. 
     
          In addition, the parties to this Agreement recognize that 
     it would not be a violation of this Agreement for the Navajo 
     Nation to seek independent of this Agreement, and outside of 
     any legislation implementing this Agreement, Congressional 
     authorization to have any of the Espil Ranch taken in trust 
     for the Navajo Nation. If the Navajo effort is successful, the 
     transfer into trust shall occur wholly outside the provisions 
     or scope of this Agreement. In any event, however, the Navajo 
     Nation agrees that it will continue to support legislative 
     approval of the terms of this Agreement regardless of whether 
     its efforts respecting the Espil Ranch are successful. 



     -------------------------------    -------------------------------
     Peterson Zah                       Vernon Masayesva 
     President, Navajo Nation           Chairman, Hopi Tribe


     -------------------------------    -------------------------------
     Lee Brooke Phillips                Peter R. Steenland Jr.
     Counsel, MANYBEADS Plaintiffs      United States Department of
                                        Justice


     -------------------------------    -------------------------------
     Harry R. McCue                     Daniel L. Jackson
     United States Magistrate Judge     United States Department of the
                                        Interior

     October 30, 1992


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