Abstract

The American Indian has a lower average income per family than any other group of Americans. One method of increasing that income is by the Indians' capitalizing on their mineral interest in Indian lands. While the differences in quantity and quality of Indian mineral resources are great, even those Indians located on what appears to be unproductive land are beginning to realize that economic progress is possible through imaginative planning and development.

Between 150,000 and 200,000 Indians have benefited from the development of oil, gas and mining enterprises on their lands. Excluding benefits from oil and gas operations on lands owned by some 5,000 members of the Osage Tribe of Oklahoma, from 1924 to 1965 production royalties of 271 million dollars were reported for all minerals extracted from Indian lands. While the problem of economic growth is many faceted, it is submitted that increased emphasis on development of mineral resources will be a major factor in placing reservation Indians on an economic plane with other Americans.

Since the Indians themselves have neither the capital nor the expertise required to make the needed effort, reliance, at least for now, will have to be placed on large non-Indian companies. Consequently; the purpose of this article is to suggest revision of leasing procedures so that Indians, when leasing their mineral rights, will realize the greatest amount of income possible. In order to fully understand the present method of leasing, it is necessary to explore the nature of Indian land rights, the extent of their interest in mineral deposits, and the alienability of that interest.

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