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The federal government has announced that a deal has been reached in the long-running lawsuit filed by Elouise Cobell of Browning over oil, gas, grazing, timber and other royalties overseen by the Interior Department since 1887.

Read the full press release by clicking here.

Secretary of the Interior Ken Salazar and Attorney General Eric Holder announced the settlement Tuesday morning.

"This is an historic, positive development for Indian country and a major step on the road to reconciliation following years of acrimonious litigation between trust beneficiaries and the United States," Secretary Salazar said. "Resolving this issue has been a top priority of President Obama, and this administration has worked in good faith to reach a settlement that is both honorable and responsible. This historic step will allow Interior to move forward and address the educational, law enforcement, and economic development challenges we face in Indian Country."

"Over the past thirteen years, the parties have tried to settle this case many, many times, each time unsuccessfully," said Attorney General Eric Holder. "But today we turn the page. This settlement is fair to the plaintiffs, responsible for the United States, and provides a path forward for the future."

The deal calls for all litigation over the Department of the Interior's performance of an historical accounting for trust accounts maintained by the United States on behalf of more than 300,000 individual Indians to end.

A fund totaling $1.4 billion will be distributed to class members to compensate them for their historical accounting claims, and to resolve potential claims that prior U.S. officials mismanaged the administration of trust assets.

The deal will also established a $2 billion fund "in order to address the continued proliferation of thousands of new trust accounts caused by the "fractionation" of land interests through succeeding generations" according to a press release.

The money will go toward the voluntary buy-back and consolidation of fractionated land interests. The land consolidation program will provide individual Indians with an opportunity to obtain cash payments for divided land interests and free up the land for the benefit of tribal communities.

The settlement has been negotiated with the involvement of the U.S. District Court for the District of Columbia and will not become final until it is formally endorsed by the court.

In addition, Congress must enact legislation to authorize implementation of the settlement. Because it is a settlement of a litigation matter, the Judgment Fund maintained by the U.S. Departments of Justice and Treasury will fund the settlement.

"While we have made significant progress in improving and strengthening the management of Indian trust assets, our work is not over," said Salazar, who also announced he is establishing a national commission to evaluate ongoing trust reform efforts and make recommendations for the future management of individual trust account assets in light of a congressional sunset provision for the Office of Special Trustee, which was established by Congress in 1994 to reform financial management of the trust system.

The class action case, which involves several hundred thousand plaintiffs, was filed by Elouise Cobell in 1996 in the U.S. District Court for the District of Columbia and has included hundreds of motions, dozens of rulings and appeals, and several trials over the past 13 years.

The settlement funds will be administered by the trust department of a bank approved by the district court and distributed to individual Indians by a claims administrator in accordance with court orders and the settlement agreement.

Montana Senator Jon Tester, a member of the Senate Indian Affairs Committee, released the following statement in response to the settlement of the Cobell class-action lawsuit:

"This is milestone for all folks in Indian Country, and I'm proud of the Montanans who made history by working together for years to reach this agreement. We still have a long way to go, but as a member of the Indian Affairs Committee, I'll keep working with folks on the ground to empower Montana's sovereign tribes and make sure the federal government meets its trust responsibilities."

Montana senior Senator Max Baucus also released a statement about Tuesday's development.

"I'm happy that there has been an agreement reached on the Cobell lawsuit. Montana Indians have been waiting for years for this. For too long, Native Americans have been denied fair and full compensation for the timber production, leasing of mineral rights, and grazing on tribal trust lands. While Congress must still pass authorizing legislation to enact the settlement, this is a critical first step. I applaud Elouise Cobell for her unwavering fight to correct the unfair accounting practices that negatively affected Indians with Individual Indian Money accounts for decades."

Web extras:

• www.cobellsettlement.com
• www.doi.gov
• www.ost.doi.gov