SECTION 1. LEASES OF NAVAJO INDIAN ALLOTTED LANDS.

    (a) Definitions.--In this section:
            (1) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (2) Individually owned navajo indian allotted land.--The 
        term ``individually owned Navajo Indian allotted land'' means 
        Navajo Indian allotted land that is owned in whole or in part 
        by 1 or more individuals.
            (3) Navajo indian.--The term ``Navajo Indian'' means a 
        member of the Navajo Nation.
            (4) Navajo indian allotted land.--The term ``Navajo Indian 
        allotted land'' means a single parcel of land that--
                    (A) is located within the jurisdiction of the 
                Navajo Nation; and
                    (B)(i) is held in trust or restricted status by the 
                United States for the benefit of Navajo Indians or 
                members of another Indian tribe; and
                    (ii) was--
                            (I) allotted to a Navajo Indian; or
                            (II) taken into trust or restricted status 
                        by the United States for a Navajo Indian.
            (5) Owner.--The term ``owner'' means, in the case of any 
        interest in land described in paragraph (4)(B)(i), the 
        beneficial owner of the interest.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Approval by the Secretary.--
            (1) In general.--The Secretary may approve an oil or gas 
        lease or agreement that affects individually owned Navajo 
        Indian allotted land, if--
                    (A) the owners of not less than the applicable 
                percentage (determined under paragraph (2)) of the 
                undivided interest in the Navajo Indian allotted land 
                that is covered by the oil or gas lease or agreement 
                consent in writing to the lease or agreement; and
                    (B) the Secretary determines that approving the 
                lease or agreement is in the best interest of the 
                owners of the undivided interest in the Navajo Indian 
                allotted land.
            (2) Percentage interest.--The applicable percentage 
        referred to in paragraph (1)(A) shall be determined as follows:
                    (A) If there are 10 or fewer owners of the 
                undivided interest in the Navajo Indian allotted land, 
                the applicable percentage shall be 100 percent.
                    (B) If there are more than 10 such owners, but 
                fewer than 51 such owners, the applicable percentage 
                shall be 80 percent.
                    (C) If there are 51 or more such owners, the 
                applicable percentage shall be 60 percent.
            (3) Authority of secretary to sign lease or agreement on 
        behalf of certain owners.--The Secretary may give written 
        consent to an oil or gas lease or agreement under paragraph (1) 
        on behalf of an individual Indian owner if--
                    (A) the owner is deceased and the heirs to, or 
                devisees of, the interest of the deceased owner have 
                not been determined; or
                    (B) the heirs or devisees referred to in 
                subparagraph (A) have been determined, but 1 or more of 
                the heirs or devisees cannot be located.
            (4) Effect of approval.--
                    (A) Application to all parties.--
                            (i) In general.--Subject to subparagraph 
                        (B), an oil or gas lease or agreement approved 
                        by the Secretary under paragraph (1) shall be 
                        binding on the parties described in clause 
                        (ii), to the same extent as if all of the 
                        owners of the undivided interest in Navajo 
                        Indian allotted land covered under the lease or 
                        agreement consented to the lease or agreement.
                            (ii) Description of parties.--The parties 
                        referred to in clause (i) are--
                                    (I) the owners of the undivided 
                                interest in the Navajo Indian allotted 
                                land covered under the lease or 
                                agreement referred to in clause (i); 
                                and
                                    (II) all other parties to the lease 
                                or agreement.
                    (B) Effect on indian tribe.--If--
                            (i) an Indian tribe is the owner of a 
                        portion of an undivided interest in Navajo 
                        Indian allotted land; and
                            (ii) an oil or gas lease or agreement under 
                        paragraph (1) is otherwise applicable to such 
                        portion by reason of this subsection even 
                        though the Indian tribe did not consent to the 
                        lease or agreement,
                then the lease or agreement shall apply to such portion 
                of the undivided interest (including entitlement of the 
                Indian tribe to payment under the lease or agreement), 
                but the Indian tribe shall not be treated as a party to 
                the lease or agreement and nothing in this subsection 
                (or in the lease or agreement) shall be construed to 
                affect the sovereignty of the Indian tribe.
            (5) Distribution of proceeds.--
                    (A) In general.--The proceeds derived from an oil 
                or gas lease or agreement that is approved by the 
                Secretary under paragraph (1) shall be distributed to 
                all owners of the undivided interest in the Navajo 
                Indian allotted land covered under the lease or 
                agreement.
                    (B) Determination of amounts distributed.--The 
                amount of the proceeds under subparagraph (A) 
                distributed to each owner under that subparagraph shall 
                be determined in accordance with the portion of the 
                undivided interest in the Navajo Indian allotted land 
                covered under the lease or agreement that is owned by 
                that owner.
Authorizes the Secretary of the Interior to approve any oil or gas lease or agreement that affects individually owned Navajo Indian allotted land if: (1) the owners of no less than the specified applicable percentage of the undivided interest in the Navajo Indian allotted land that is covered by the oil or gas lease or agreement consent in writing; and (2) the Secretary determines that approving the lease or agreement is in the best interest of the owners. Specifies the applicable percentage as: (1) 100 percent if there are ten or fewer owners; (2) 80 percent if there are ten to 50 owners; and (3) 60 percent if there are more than 50 owners. 
Authorizes the Secretary to give written consent to such an oil or gas lease or agreement on behalf of an individual Indian owner if: (1) the owner is deceased and the heirs to the interest have not been determined; or (2) the heirs have been determined but one or more cannot be located. 
Provides that: (1) an oil or gas lease or agreement approved under this Act shall be binding on all owners of interest in the Navajo Indian allotted land and all parties to the lease or agreement to the same extent as if all of the owners had consented to the lease or agreement; and (2) an approved lease or agreement shall apply to any portion of the undivided interest in allotted lands held by an Indian tribe even though the tribe did not consent. 
Provides for the distribution of proceeds derived from the lease or agreement to all owners of the undivided interest in the covered land in accordance with the portion of the undivided interest owned.
A bill to permit the leasing of oil and gas rights on certain lands held in trust for the Navajo Nation or allotted to a member of the Navajo Nation, in any case in which there is consent from a specified percentage interest in the parcel of land under consideration for lease.