How sovereign are Indian reservations in the US?

Question

If minerals or oil were discovered on an Indian reservation, would the government or drilling companies have to pay royalties? How is the size of payment determined?

Answer 1

They are very sovereign. They have there own government, their own police forces and infrastructure. If they decidee to enter into and oil and gas lease with a company for exploration, the oil company pays them an amount per acre , usuall about $25 and acre, sometimes a bonus payment is involved and a royalty that is negotiated between the two parties. In todays world it's about 20%.

Answer 2

This is a double edge question. Indian reservations are only sovereign when it fits the needs on the US government. If oil or anything the government deemed to be profitable where found on Indian soil they would take the resource without paying anything to the Indians. Just like they tax the h**l out of their casinos because they are still on US soil and making money so the tax laws apply, but they don't give them any government programs and support because they are sovereign nations and independent of the US government.