Free Response to Motion - District Court of Federal Claims - federal

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 1 of 54

Exhibit 26

Case 1:06-cv-00945-FMA
Oc 1-17-2005 04: 07pm F rom-

Document 19-9

Filed 06/21/2007

Page 2 of 54

T-ZI3 P 005/008 F-39r

National Archives and Records Adminzstratzon
8601 Adclphi Road College Park, Marylond 20740-6001

TeL. 3()1.B7-J499

Faic01.S~ i.02 93
Email: j;;c.t_ bQJon(ånaa.gov

_. - - - - _.. -... -- --- - -- --.. - -- _.. _. - - _. -- .- -- -- - - - -- _. - - -- - -. - - - .

September 28.2005
Bv Facsimile 202-318-2372

Dennis Gingold. Esq.
607 14th St. N.W.

Box6
Washington, D.C. 20005

Re: Cobell v. Norion
i

Dear Dennis:

i am writing to provide ycu with an update about the matters that we discussed in

our te;ephone conversati::¡n on Wednesday, Se?tember 21,2005, concerning the
recent series af what ôppear to be several unsuccessful attempts at improper

disposal of records at th~ National Archives. S ~e my retter dated September 13.
2005, to !ntenor Assistant Deputy Secretary H~spei. I b3se the following update on specific information that NARA's Offce of Ir.spector General (IG) has provided

me and on my own research into the incidents, inciudin£i viewing the recove:red records.
A£ I told you over the te:ephone on September 21, NARA's IG is presently conducting an investigation into a series of irocidents that have occurred over the past three weeks, involving what appear to be tl",e atlempted disposal of various type:3 of perrr,anent reccrds of diferent federai agEncies, 'inc)uding the Departments of Interior and VEteran~. Affairs, th¿;t were stor,?d in the stacks at the Main Archives Building in downtown Washington, D.C. It appears that. in each of the incidents uiider inves1igõtion, an attempt was made to improperly dispose of record and nonrecc;rd materials in vari.)us trash bQskets (or in boxes designated as trash) located

within restricted arEas of the building. In the nrst incide:nt on SeptEmber 1. after a
NARA staffer noticed tIie records in a trash b3sket, NARA staff found and recovered additional records in a dumpster and tr2sh compactor (also locõted in a restricted

are8 of the Main Archives Building). Since Sap1ember 1, there appEars to have
been as mõny as six additional attempted dì:.pcsal inciderrts. all of which are
currently under investi9ation by our IGo

SEF-29-2~ØS 0S::4

~14 p" Or \4~h ! iil! i! hl.:p:I/www.a.-cJiveJ.go\J

.1¡;, ~'?¡;ÇQ";

::0'..

Oc 1- i 7-2005 04: 07pm F rom-

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 3 of 54

T-213 P 006/008 F-397

Letter 10 Dennis Gingold. Esq. September 28, 2005
Page 2

A point that I made during our September 21 t~iephone conversation bears reemphasis: these attemptec; disposal incidents inv:)lve federal agency records that have pó~sEd into both the physical and legal custody of the National Archives. as
the permanent records of the United States. Neither Secretary Norton nor any other

_. -- .,- -agEìGY trad-controls ite-pres¡-ation""f Stch-rerords.,-Accordil"IYïH is.AA - - -- - - ..

responsibility to ensure, among other things, tha1 a proper and thorough çriminal inve.stig.;tion into the incidents proceeds apóce õnd that all reasonable steps are takEn to maintain the continued integrity of NAR/~'s permanent record holdings.

It is importnt to note that the person or persons responsible tor these attempted
disposal ìncidents has not or have not focused solely on the records of the Bureau of Indian Affuirs (BIA) or of the Interior Department. Rather, it appears that the perpet!'ator(s) of the acticns randomly removed records that either were being

worked or. as part of NAf''s "prEservation proce:~sing." Dr that were otheiwise
easily 2vai1able (i.e.. within ea~y rec;ch) on the st~cks ::f t""e Main Archives Building. It is also important to note that some of what has been re,::overed consists of "non-

record" meteria/s, such a.s old, empty file jacket:; (fronts ~nd backs); old. empty
folders; out cõrds, and empty envelopes.
Basecl on currently âvail,¡ble information, the NARA's IG has recovered the following rE:cord and non-record materials in co;:nection with the attempted disposal incidents. The materials are listed below in descending order of volume. The listing is not intended to be comprehensive.

Ospartment of V'1erans Affairs
. Ovi:r 3,000 VA Form "40-13305" (app!ications for a headstone or marker)

Department of the Inferior

.
.

One entire fi1e (cover C:nd 105 pagE":$) marked "Slackfeet." dated 1946,
consisting of an Annu2J Credit Rep':Ht of the Northern Plains Indian Craft

Association
Various partial files fram the Consc;lidaled Chippew2. 1ribe (EllA Record Group 75), circa 18405 and 1 950s, includ\ng timber sales contracts and correspondEmce, heirship files, recaipts fer feeltrust patents, tränsmittals of patents (approx. 200 pages of record material in different boxes) Numerous file covers and other a~sorted nonrecord file j2.ckets and empty

.
,.

folders assc,ciated for the Consolidated Chippewa tribe
One bound volume of Bureau of L.3nd Management ''Letters re Surveyors
General: dated March 13-April16 1883

SEP-29.2025 ~S: 54

" '"-." .; '.. ...,¡ i. ,iøl! ,'t ;'/1" .,,'..'W\\I C,'ctl'Vtr go"

'fC;ii i:'"":Ä?O~ .~... n. . . ""

r-n..

Dc 1-17-2005 04: 08pm F rom-

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 4 of 54

T-213 P 007/008 F-397

Letter to Dennis Gingold. Esq.

Septembei- 28. 2005
Page 3
. One file consi~ing of Flathead Agency loaGs for the purchase of land circa

1950 . Two files c;on~istjng of Billings area cffce correspondence circa 1957

-'- - --.s-'rmy - ._- - - - _. - --. - -. - - .. Bound vOlumE- of the u.s. Army Con:inental Command, 1821-1 S20, Whipple
8arracks Are2.

WÇJr Department

. One page of War Department corre~:pondence dë.ied July 13, 1918 (possible
duplicë.te or nonrecord material)
N~vy Depë;rtment
· A published engineering report on the electncal equipment on the "Maure-

taniô," from Attache Registers (reports), Record Group 38, REcords of the

Offce of Nav8J Intelligence.
NARA s1aff õre presently in the process of detrminíng vvhe1her there are any "gaps" in NARA's exi$Ling holdings at the Main Archives Bui!dings, which may indicate that other records, ~n addition to th.Jse recovered above, might have been subject to improper disposaL.

ihe Archivist of the United States, Allen Wejn~teirri has ordered that NARA staff increase securíty meë?s:.rES at the Main Archives Buildirrg immediately to safeguard NARA's permc;nnt record holdings in the building. These rre2~ures include increasing security in not only the 82Ck ë:reas but also on the Joao'inn,3 dock, and in monitoring trash disposaL. As noted above, the stc:ck ;:reas, the loading docl~. and the trash disposal areas are among those 10 which access i~; restricted to NARA s1at.ers only.
If you dEem it necessary, it may be possible to make special arrangements for you to view Îhe documents recover~d by the IG, consisterit with other demands on our IG's time ar,.d resO'Jrces.

I will provide you with additional updates, as circumst,;nce£ warrant P1Ease feel free to

SEF-29-222S ~q: ~d

....... P" ". ".iel, ,;,~ i'~ J1rui:lh-v\4 ::r'J..iv~. P70v

~~~ a~~~~=~ . ~

Dc t- i 7-2005 04: 08pm F rom-

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 5 of 54

T -2 i 3 P 008/008 F-397

Letter t: Dennis Gingcld. Esq. September 28, 2005
P2ge 4

contact me if you have any questiot"¡s or concerrlS,

._.~ -'--.'--- -.-

Sincerely,

. ~ ¡f/Y

"--- - '-- - -- - - - -- --

fÍ~o~~.18IR~N
\.;redor of litigation
cc:

Offce ~f General Coun~el
Abraham E. Haspel, Ph.CJ.
Assistant Deputy Secretary U.S. Department of the Interior

.. . . .

TOTAL P,::S

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 6 of 54

Exhibit 26 A

SEP-14-2005 09: 56

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007
202

ASST DEP SEe

Page 7 of 54 208 5567 P.03

National Archives and Records Administration
College Park, Marylall.d 20740-6001
TeL.: 301-8.37-1499
Fax: 301-8.3 7-0293

8601 AdelpJil Road

Email: jason.baron~~.gov

September 13, 2005

By Facsimile

Abraham E, .Haspel. Ph.D.
Assistant Deputy Secretary

Ofce of the Secretary
U.S. Department of the J nterior 1849 C Street, N.W.

MS 7229
Washington, D.C. 20240

Re: Cobell v. Norton

Dear ,~be:

i am wring to memorialize my conversations "I"ith members of the Department of
Justice Cobell trjal team over the past two weel,s regarding one or more incidents at the National Archives involving what may be in1entionaf acts aimed at unlawfully removing or disposing of permanent records frc., the Interior Department. and to províde both you and the Justice Department with an update suitable for filing with the Court as to what Nationa: Archives and Records Adminìstration (NARA) staff are currently doing to investiç¡ate these incidents.

On Thursday morníng, September 1,2005, NAftt staff at Main Archives (our headqruarters building on Pennsylvania Avenue) noticed that what appeared to be federal records had been discarded in one of the dumpsters on the premises of Main Archives. NARA offcials on the scene immediately alerted Paul Brachferd, NARA's
G), wno dispatched a team )f investigators to retrieve the records and begin a formal inqUiry. Both the Ari;hìvìst and Deputy Archivist of the United States were also notified of this event on that Thursday morning, as was r. i am informed that on the following Tuesday (September 6,2005), NARA's Inspector General notified the United States Attorney's Ofi1ce for the District of Columbia, and
Inspector General (I

an Assistant U.S. Attorney was assigned to the Gase.
A preliminary examination of the records in queetion by Inspector General staff revealed that at least a portion of the records constituted records of the Bureau of

Indian Affirs datjng from the 1950s that were among NARA's permanent holdings.
After being apprised of this further information. en Thursday afternoon, September 1, i called John Siemenkowtski, a member of the Cobef/ tnal team. to alert him to this

NARA ': weh site is hrt://"'''.ll~cJJves.gOY

SEP-13-200S 18:49

3Ø 18378293

qq?/

'" M..

SEP-14-2005 09: 57

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007
202

ASST DEP SEe

Page 8 of 54 208 5567 P.04

Letter to Abraham E. Hclspel, Ph.D. September 13, 2005
Pag~ 2

development, and to request that he in turn notif appropriate DOJ staff. I provided John with contact information for Ross Weiland. an attorney in NARA's Offce of
Inspector General, as our IG has the lead on investigating this matter.
SUbsequentJy. , have on several occasions apprised DOJ attorneys that NARA's

Inspector General was continuing to conduct a thorough invesigation of this
incident. I am informed that during the course Df the GIG's investigation, more of what appear to be Indian records were discovered in a wastebasket in the stack areas at Main Archives. It is not known, .3t this time, whether these two incidents are related.
The NARA GIG's investigation into these matters is ongoing and they continue to Work directly with the U.S. Attorney's Office, On behalf of Archivist of the United States Allen Weinstein, Deputy Archivist Lewis Bellardo. and NARA's General Counsel Gary M. Stem. I wil continue to keep the Interior and Justice Departments informed of all developments in my capacity as Mot counsel" in this
litigation and as an offcer of

the Court.

Sincerely.

CEN R. BARON

~ l¡3 Ò1ll

Director of Litigation

Offce of General Counsel
D.C. 8ar Member 366663

cc: J. Christopher Kahn, Esq. Branch Director Commercial Litigation Branch
U.S, Department of JU5tic\~ p.O, Box 875 Ben Franklin Station Washington, D.C. 20044-0875

NARA's web situ is hrrp:/~'\4-archi"¡e.r_~o'\

SEP-13-2ØØ5 18:49

3018370293

98%

¡: ~,

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 9 of 54

Exhibit 27

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 10 of 54

National Archzves and Records Administration
8601 AdelpJJi Road

CQllege Park, Maryland 20740-6001

T~I. 301-837-1499 F::~.30 1.837-0293

E.-nil: j a SOt1 b~ronr:argov

December 9, 2005
By Facsimile 202..18.23?2
Dennis Gingold. Esq. 607 14t1 St. N.W.

Box6
Washington, D,C. 20005
Re: CI-;beJ/ v. Norton

Dear Dennis:

In my September 28, 2005 letter to you, I stated that I would provide you with a furter
update concerning the inc:idents of attmpted re1cords disposal at Main Archives which occurred in September 2005. This letter serves as that update.

On rrjday, December 9,2005, Archivist Allen Weinstein issued the attched notice to all National Archives and Records Administration (I~ARA) staff. As the notice states, and as you are aware from my prior correspondence., a series of seven incidents occurred on and after September 1, 2005, involving the attempted ,:jfsposa1 of various types of permanent records amongst our agency's holdirrgs at the Main Archives building in Washington, D.C. The documents involved inçluded those from the Department of Veterans Affairs, the U.S, Army, Navy Department, and War Departent, as wef) as from the Departent of Iriterior.
As the notice goes on to state, NARA took swift action to investigï;te and cure the situation that led to those September incidents. NARA's Inspector General gathered

evidence. and based on t~iat evidence, on SeptE'Jmber 28, 2005, NARA management
barred one NARA employee (an archives technician) from having further access to the secured, nonpubHc stack .3reas in the Main Archíves building. NARA alsa placed that individual on administrati\ie leave. The emploYE.e subsequently resigned from NARA, effective November 18, 2005. Most importantly, no addrtional incIdents of attempt(

disposal oJ records have IJeen reported since ths September 2005 incidents referred to above.
In my Sep'ember 28 letter to you i noted that NI\RA staff were taking steps to dIscover whether there were any '~.Japs" In NARA's existing hordings corresponding to the records

NAlU '! web ~itl! ì! JJrr:///'M.archjv~J".f!OV

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 11 of 54

that the former employee was processing for preservation. in addition to the records

recovered in the Septemtier 2005 Incidents. The Archivist's notice reaffrms that Nf,RA
staff are continuing to revûew records holdings in this regard. Based on the review conducted to date, L am in is position to supply you with the following add¡tional fads,
Other than with respect to VA records. the employee in question who has resigned was most r'2cently involved in processing Consolidaled Chippewa record holdings (including record file cover and jackets with new covers). To being ilasked to replace old, non date. NARA staff have dEltermined that approximately 250 of the actual files that correspond to the approximately 275 Consolidated Chippewa nonrec:ord file covers and jackets recovered from v3rious trash areas in S,.=ptember are, in fact intact, in NARA's permanerit holdings. As stated above, NARA's review process is ongoing, and NARA

staf members are continuing to search for the rema!ninQ 25 or so files. Iii the 8vert
these additional records are iocat~di NARA wi)1 provide you with a further upda1e.

Please ca,1I me if you have further questions or concerns.
Sincerely,

J so~ R. 4' ~ JAR6:: R/k__
¡rector of Litigation

Offce of General Counsi31

Enclosure
c:c:

Abraham E. Haspel, Ph.D, Assistant Deputy Secretsry

U,S, Department of the Interior

HAM's web site iJ' hrr:II'H.a:cl1iv~,gov

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 12 of 54

Exhibit 28

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 13 of 54

Status Report to the Court Number Twenty-Five
For the Period January 1, 2006 through March 31, 2006

May 1, 2006

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 14 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE Ma~, 1, 2006 TABLE OF CONTENTS
Io

INTRODUCTION ............................................................................................................. A. INFORMATION TECHNOLOGY ................................................................................. B. C. CADASTRAL SURVEY ................................................................................................ MINERALS MANAGEMENT SERVICE ...................................................................

1 2 11 13 14 17 19 21 21 24 24 26 28 30

D. OFFICE OF HISTORICAL TRUST ACCOUNTING ............................................... II. OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS ...................

A. TRUST REVIEW AND AUDIT .................................................................................... B. 1. C. 1. 2. 3. 4. 5. OST-OFFICE OF THE CHIEF INFORMATION OFFICER ................................... RECORDS MANAGEMENT .................................................................................... TRUST ACCOUNTABILITY ....................................................................................... TRUST BUSINESS PROCESS MODELING .......................................................... TRUST DATA QUALITY AND INTEGRITY ........................................................ INDIAN FIDUCIARY TRUST TRAINING PROGRAM ...................................... RISK MANAGEMENT ..............................................................................................

REGULATIONS, POLICIES AND PROCEDURES ........... ~ .................................. 32 34 34 37 37 41 41 43 45 47

D. FIELD OPERATIONS ................................................................................................... 1. APPRAISAL ................................................................................................................

E. TRUST SERVICES ........................................................................................................ 1. HI. CURRENT ACCOUNTING ACTIVITIES ............................................................. BUREAU OF INDIAN AFFAIRS .................................................................................

A. TRUST REGULATIONS, POLICIES AND PROCEDURES ................................... B. C. FRACTIONATION ........................................................................................................ PROBATE .......................................................................................................................

ACRONYMS AND ABBREVIATIONS ...................................................................................

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 15 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 A. Introduction This section describes the status of Interior IT systems, particularly the systems that house or provide access to IITD or provide various computing capabilities, including functions critical to the proper administration of the individual Indian trust responsibilities within Interior. In addition, this section describes various efforts being made to improve IITD security within Interior, pursuant to OMB Circular A-130 Appendix III, and the status of Internet connectivity. Accomplishments and Completions Computer Security: The primary focus for this reporting period has been remediation of weaknesses, reduction of open POA&M items, and IT security policy. Interior continued to make progress in enhancing IT security, through continuous monitoring of Internet-accessible systems and implementing corrective actions for weaknesses identified by the Interior penetration tests and audits of financial systems. The most noteworthy accomplishments, completions and challenges during the reporting period are described below. ESN: · Two Internet gateway routers were replaced with newer and more capable equipment. This upgrade is expected to enhance security and increase availability of Internet services. · BLM reconfigured Denver and Portland interfaces to the ESN to create a more consistent, layered approach to the perimeter security, including intrusion prevention systems, firewalls, routers, and application firewalls. INFORMATION TECHNOLOGY Information Technology

Prevention and Monitoring: · Interior continued its external perimeter extended vulnerability scan testing of Internet-accessible systems, using capabilities established at ESN. As of the end of this reporting period, all identified critical or major vulnerabilities in trust systems were either remediated or were identified as false positives. · Interior continued deployment of the Interior-wide internal scanning tool for BOR, NPS, FWS and OST. Interior also continued refining the internal scanning process in order to reduce the number of false positives. Reducing false positives should allow Interior to focus on remediating actual vulnerabilities. BLM procured, configured and implemented a security event log consolidation and evaluation program that provides increased security response, including custom coding an automated quarantine tool to deny access to BLM resources to all potentially hostile contacts.

·

2

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 16 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

·

There were no successful security incidents detected during this reporting period that resulted in the compromise of trust systems or data.

Policies and Guidance · The Interior CIO issued "Information Resources Management (IRM) Internal Control Review (ICR) Guidance for FY 2006" to the heads of bureaus and offices on January 31, 2006. This directive transmitted Interior's "Guidelines for FY 2006 Internal Control and Audit Follow-up Programs," dated November 4, 2005, that requires performing annual ICR assessments by evaluating the security controls in place for all IT systems contained in Interior's IT system C&A master list. · The Interior Chief Information Security Officer and OIG agreed to "Rules of Engagement for IT Security Penetration Testing" on February 9, 2006. This document provides a framework of procedures and guidelines to be followed by OIG, its contractor and Interior in performing the independent evaluation of Interior's public-facing network infrastructure and ESN. It establishes the test objective, scope, timeframe, rules, and points of contact. The Interior CIO issued "Software Piracy" to the heads of bureaus and offices on February 14, 2006. This directive sets Interior's policy for the prevention of software piracy. The Interior CIO issued "Fiscal Year 2006 (FY06) Annual End-user Federal Information Systems Security Awareness Training" on February 17, 2006, and "Fiscal Year 2006 (FY 2006) Annual End-user Federal Information Systems Security Awareness Training" on March 10, 2006, to the assistant secretaries and heads of bureaus and offices. These memoranda require that all personnel, including contractors and other external authorized users, with access to DOI information systems complete training that satisfies the annual FISMA requirement. It also mandates the use of a centralized source to standardize the training across Interior. The Interior Deputy Secretary issued "Approval of the Interior's Enterprise Architecture" to the heads of bureaus and offices on February 27, 2006. This memorandum endorses the Interior's IT Investment Review Board approval of the IEA as outlined in Version 2.0 of the ETP. The ETP provides a sequencing plan that describes the business transformation efforts required to move Interior from its current state to the target architecture. The ETP is in alignment with guidance from OMB. The Interior CIO issued "Plan of Action and Milestones (POA&M) Process Standard" to the heads of bureaus and offices on February 27, 2006. This revised guidance provides a set of standards and procedures for developing and maintaining

·

·

·

·

3

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 17 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

bureau and office POA&Ms for identifying weaknesses, managing remediation, and providing quarterly reporting to OMB. · The Interior CIO issued "Interim Guidance for the Certification and Accreditation of Information Technology Systems" to the heads of bureaus and offices, SOL, OIG, and bureau and office CIOs on March 14, 2006. This directive provides guidance on the C&A process to be used throughout Interior regarding implementation of the NIST Special Publications 800-37, 800-18, 800-30, 800-34, 800-47, 800-53, 800-60, and FIPS Publications 199 and 200. The Interior CIO issued "Information Technology (IT) System Inventory Requirements" to the heads of bureaus and offices on March 20, 2006. This directive provides supplemental guidance to OCIO Directive 2004-010 "Population and Maintenance of the Department of the Interior Enterprise Architecture Repository" on system inventory requirements. The Interior CIO issued "Instant Messaging, Internet Relay Chat, Web Conferencing, and Peer-to-Peer Usage Policy" to the assistant secretaries, and heads of bureaus and offices on March 20, 2006. This directive establishes usage policy and procedures for various collaborative programs. It also mandates standardization and technical controls to ensure the computing environment and data remain secure. MMS issued security requirements for all network users to read and acknowledge the FY2006 MMS IT rules of behavior, which apply to all MMS IT systems.

·

·

·

Training and Awareness · Training was held for users of DEAR's new reporting and C&A self-guided capabilities in DC and Denver, a step-by-step process that allows for standardized and consistent input of data. The new enhancements to DEAR provide for one authoritative data source that links each information system to an overall C&A boundary, thus improving oversight and reporting with respect to FISMA requirements. Training focused on: · Assuring roles, processes, and tasks for collecting and maintaining information were clearly defined and reviewed; · Performing quality assurance checks on the information contained in DEAR using the new reporting features; · Using NIST Special Publication 800-60 guidance to assess the appropriate confidentiality, integrity and availability ratings of an accreditation boundary. Plans of Action and Milestones: · Interior reduced POA&M weaknesses by 9.6 percent during this reporting period. Interior remediated and closed out 327 weaknesses. Interior continues to address the remaining 1,211 open weaknesses.

4

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 18 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

A-130 Certification and Accreditation: · BIA reviewed and updated all trust system security plans to be compliant with NIST Special Publications 800-60 and 800-53 standards. This included following the FIPS Publication 199 guidelines to determine the appropriate security categorization (high, medium, or low) for each system. NIST Special Publication 800-53 requires the selection and employment of appropriate security controls for an information system based upon the security categorization of the system. · BIA performed tests on a new document scanning module for TAAMS. The test results will be evaluated to assess the impacts, if any, that the introduction of the module will have on the system as a whole. BIA completed the ST&E and C&A documentation of the Trust Network Root Enterprise Active Directory system and is reviewing for submission to the DAA.

·

E-Authentication and HSPD-12: · BLM has transferred existing Smartcard technology to NBC for implementation of HSPD-12 Personal Identification Verification (PIV-II) requirements. Staffing: · Interior filled several key positions this reporting period, including a Deputy CIO, IT Security Project Manager, IT Enterprise Security Architect, IT Security Trust Officer and an Information Systems Security Officer, OST Deputy CIO, and BIA IT Security and Privacy Deputy Office Director and Security Engineer. Current Status A-130 Certification and Accreditation: · All trust systems have full ATO status except for one. The one exception is a BIA legacy system called the Land Ownership Tracking System. The system was operating under an IATO valid for 90 days from December 19, 2005. The IATO for this system is expected to be renewed and remain valid until the system is retired, which is expected by the end of CY2006. The risk of continued operation under an IATO has been determined to be necessary since the system is required for BIA to conduct its business. ZANTAZ: · The contract to restore the ZStage tapes was awarded. All bureaus and offices affected by the ZStage issue from the last reporting period sent their tapes to ZANTAZ. · OST sent 112 backup tapes and all were restored without incident. · SOL sent 97 backup tapes and restoration is expected to be complete by the end of June 2006. · NBC Denver sent 57 backup tapes and restoration is expected to be complete by the end of June 2006.

5

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 19 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 · · Information Technology

NBC DC sent 409 backup tapes and restoration is expected to be complete by the end of June 2006. Three tapes have not been sent because of national security issues. BIA sent 280 backup tapes. Of the 280 tapes sent, 268 of these tapes are blank and 12 tapes have only partial data. BIA sent a technician to ZANTAZ in an attempt to confirm whether the tapes were blank. On March 31, 2006, BIA sent ZANTAZ one tape that it believes may contain some of the data that would have been captured on the 280 tapes.

· ·

The NBC Denver servers were upgraded on January 27, 2006, to correct the ZStage issues reported in the last reporting period. BLM shipped a new router to the ZANTAZ Las Vegas data center for the connection to the archive servers. The new router is part of a technology refresh effort and will include implementing a buffer server between the BLM forwarder and the ZANTAZ data center. This will provide up to two weeks of buffer space in the event that connectivity to the datacenter is interrupted for an extended period. BIA deployed a ZStage Alert script in late November 2005. During this period, the ZStage Alert script noted problems in three areas have been referred to ZANTAZ for further investigation. · A misconfiguration by one user caused that user's messages not to reach ZANTAZ. BIA expects to coordinate with ZANTAZ to deliver whatever messages can be recovered to the digital safe. · Notification messages informing the user of e-mail delivery failures were not being captured by ZANTAZ. Messages which the user attempted to send, but which were not actually sent, were captured by ZANTAZ. Therefore, ZANTAZ will show a discrepancy between the senders' and receivers' e-mail collections. · A process irregularity occurred whereby an incorrect ZStage value indicated that the e-mail was not captured when it actually has been. This created a false negative in the ZStage value.

·

REPORTS: These reports were among those issued during this reporting period. FISMA · OMB issued "FY 2005 Report to Congress on Implementation of The Federal Information Security Management Act of 2002," on March 1, 2006. This report informs Congress and the public of the Federal government's security performance, and provides OMB's assessment of government-wide information technology security strengths and weaknesses and a plan of action to improve performance. It provides key security performance measures from FY2002 through FY2005 for each agency, based on the report issued by each agency's OIG. While Interior does not believe the FISMA report reflects the current status of Interior's information technology security, Interior

6

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 20 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

acknowledges that the report identified some important areas that need improvement. These areas include, but may not be limited to network security, POA&M, and C&A. · The House Government Reform Committee issued the "Federal Computer Security Grades - 2001-2005" on March 16, 2006. This document is compiled by the Committee from FISMA reports submitted to Congress by agency CIOs and OIGs. The Committee report, based on the FY2005 report issued by Interior's OIG, indicates Interior's grade moved from "C+" in FY2004 to an "F" in FY2005. Interior is concerned that the FY2005 congressional FISMA report card did not reflect the current status of its information technology security. The Interior CIO, in a letter to Congressman Davis, Chairman of the House Government Reform Committee, stated that the FISMA report "did not reflect the current status of [Interior's] information technology security ... despite further improvements to [Interior's] IT security." The letter notes the following "accomplishments that strengthened [Interior's] IT security": · Provided $1.1 million to OIG for penetration testing in all bureaus; · Certified and accredited 98 percent of IT systems, with 100 percent quality assurance reviews; · Trained 98.7 percent of the workforce in user security awareness; · Ensured that 67 percent of IT security specialists completed role-based training; · Increased the number of certified security professionals from 63 to 86; · Survived 650 million probes and attacks, with only a couple of web defacements, through sophisticated vulnerability scanning and enhanced intrusion detection and prevention devices; · Consolidated 13 networks into one with added security services; · Reduced Internet Service Providers from 35 to 5, which created simpler and more effective perimeter security; · Developed eight enterprise software and hardware agreements for standardization, cost efficiencies, and increased security; · Received OMB's top ranking for Interior's enterprise architecture with an integrated security architecture; · Submitted 60 IT investment proposals to OMB: each received passing IT security scores and OMB approval, and security was given special review in each case; · Established qualified project managers on major IT projects; · Maintained a privacy program recognized as a best practice by the Industry Advisory Council; and, · Completed the first departmental IT security assessment through an independent contractor. The nine major program areas received ratings of four good, four satisfactory and one unsatisfactory.

·

·

GAO issued "INFORMATION TECHNOLOGY: Agencies Need to Improve the Accuracy and Reliability of Investment Information (Report No. GAO-06-250)," to Congressional Requesters on January 12, 2006. The report responds to a Congressional 7

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 21 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

request to determine the extent to which selected agencies have underlying support for their FY2006 investment information. It emphasizes the use of the GAO-developed IT Investment Management framework in implementing capital planning processes and notes Interior to be among those agencies using the IT Investment Management Framework. Interior was cited as having made significant improvements. · The Interior IG issued "Security Vulnerabilities at the Information Technology Center Place Sensitive Data at Risk (Report No. NSM-EV-OSS-0004-2006)," on January 17, 2006. The report details IT security vulnerabilities that would allow unauthorized users access to sensitive data located on the NBC network. The concern was that the Information Technology Center could be physically entered by anyone with access to the Main Interior Building. NBC has developed and implemented corrective actions for a majority of the vulnerabilities. Corrective actions have been developed and prioritized as POA&Ms for the remaining vulnerabilities identified in the report. OMB issued "Report to Congress on the Benefits of the President's E-Government Initiatives," on January 20, 2006. This report provides a status update to Congress on EGovernment initiatives which were approved by the President's Management Council. Initiatives included E-Authentication and the security line of business. BIA and ESN issued "NBC Network Security Recommendations Report." The report, developed in collaboration with NBC, provides recommendations for improving the security of BIA connections to NBC applications and is intended to prevent the possibility of access to sensitive BIA data and systems from users on the NBC network. This has a low risk of occurrence and a configuration change has been developed and programmed for implementation to correct the weakness.

·

·

MRM Legacy Media As previously reported, MRM expected to dispose of 30,000 legacy backup tapes that contain data redundant to data in the new MRMSS. Due to objections by tribal litigants, MRM has postponed the disposal of these tapes pending resolution of objections. Delays and Obstacles Like other federal agencies, Interior must address many challenges regarding the integration, performance, funding, security, and data integrity of IT systems. Interior initiated or completed steps to address some of the challenges reported in this and previous reporting periods. However, delays and obstacles listed below impede progress in achieving Interior's IT management goals. Litigation · Delays caused by last summer's extensive collection and production of documents and by Court appearances continue to put Interior several months behind in completing many required IT and IT security activities. These include completing corrective actions from

8

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 22 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Information Technology

audits and on POA&Ms, updating of required security policies and procedures, and implementing initiatives critical to continued improvements in IT security. · Employee fears about becoming personally implicated in the Cobell litigation continue to undermine communication and decision-making, and are contributing factors to low employee morale.

Staffing · Interior is experiencing high staff and management turnover in critical IT positions, particularly IT security. Recruitment challenges to attract qualified candidates continue, particularly in light of litigation impacts. The CISO position remains vacant and the Department's IT security staff is at 70 percent. Funding and Resources · OCIO, along with Interior bureaus and offices, is responding to an extraordinary level of scrutiny, including OIG evaluations and audits, GAO evaluations and audits, and OMB required reviews. With the significant increase in review, Interior is expending considerable efforts in data collection, document production and related workloads, which diminishes the resources available for IT security-related activities. For example, staff has less time to implement and test security controls. · Funding availability will continue to dictate the timing of IT-related initiatives. Interior's FY2006 budget will require managing a variety of IT-related requirements and tradeoffs. Interior continues to prioritize its IT security needs in its budget requests within fiscal constraints.

Denied Internet Access · Several Interior bureaus and offices (BIA, OHA, OST and SOL) have not been permitted by the Court to have Internet access since December 5, 2001. Lack of Internet access impedes work processes and the ability to communicate effectively, both internally and externally. For example: · Coordination and dissemination of new policies and training is delayed due to the need to deliver material physically. Even after receipt, considerable re-work is required to tailor web-based training programs to run locally. Policy discussion is hampered due to additional time required in coordinating group discussions via teleconferencing when e-mail collaboration would be more appropriate and timely. Ensuring Continuity of Operations and Continuity of Government through the implementation of contingency plans requires rapid notification of an event. The lack of Internet access degrades Interior's capabilities to notify all of its bureaus and offices in a timely and efficient manner.

·

·

9

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 23 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 · · Information Technology

Maintaining security on internal systems is more difficult without access to the Internet for research, reporting, and patch management.

The concerns over potential future Court-ordered Internet shutdowns or other Courtordered disruptions create uncertainty over how to proceed with enterprise initiatives and security improvements. Contingency planning for either external or internal disconnections (and all potential permutations) takes resources from planned and daily activities.

Assurance Statement I concur with the content of the information contained in the Information Technology section of the Status Report to the Court Number Twenty-Five. The information provided in this section is accurate to the best of my knowledge. Date: April 20, 2006 Name: Signature on File W. Hord Tipton Interior Chief Information Officer

10

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 24 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 B. Records Management OST-OFFICE OF THE CHIEF INFORMATION OFFICER 1. RECORDS MANAGEMENT Introduction The Office of Trust Records was established in 1999 to develop and implement a program for the economical and efficient management of trust records, consistent with the 1994 Act, the Federal Records Act, and other statutes and implementing regulations. The OTR records management program has been developed and implemented, and continues to evolve, to ensure that necessary Indian records are maintained, records retention schedules are consistent with retention needs, and records are safeguarded throughout their life-cycles. Accomplishments and Completions American Indian Records Repository Approximately 136,471 indexed boxes are located in the AIRR as of the end of this reporting period. As previously reported, OTR has historically reported the number of boxes transferred to AIRR for storage. However, NARA uses cubic feet as the measure for records stored. Thus far, NARA reports that they are currently storing 142,433 cubic feet of indexed inactive records at AIRR. Some boxes are larger than one cubic foot (e.g., map boxes). Records Indexing Project Indexing of approximately 138,425 boxes has been completed as of the end of this reporting period. The number of completed boxes (indexed and quality reviewed) differs from the number of boxes stored at AIRR because not all completed boxes were sent to AIRR from the Annex before the end of the reporting period. Approximately 3,890 boxes of inactive records were moved from BIA/OST field locations to the Lenexa Annex for indexing during this reporting period. Once indexed, these boxes will be stored in the AIRR. Training OTR provided records management training for 121 BIA and OST identified records contacts and 51 tribal employees during this reporting period. Equipment Purchases 242 pieces of fireproof filing equipment were delivered to BIA, OST and tribal offices during this reporting period.

21

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 25 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE Ma~ 1, 2006 Current Status Safeguarding Records As reported, 283 boxes of inactive records that were or may have been damaged or contaminated by mold, mildew, mouse droppings or other adverse elements were shipped to NARA for remediation in June 2005. As reported in the OTR Activity Report for November 2005, the number of boxes increased to 289 as a result ofholdings maintenance being performed. Some boxes cannot hold the entire contents of the original box and are placed in an "overflow box" which is kept with the original box. OTR reported in December 2005 that 145 boxes were released by NARA and sent for indexing and storage in the AIRR. NARA subsequently informed OTR that the number released in December 2005 was actually 146 boxes. Of the 143 boxes (289 - 146) ~ remaining to be treated by NARA, 48 of 60 boxes requiring holding maintenance were completed; 12 of 21 boxes requiring humidification flattening were completed; and 37 of 54 boxes requiring conservation treatment were completed. The completed boxes have been sent to the Annex for indexing. NARA anticipates that the remaining 46 original boxes will be completed by the end of April 2006, except for those materials which are beyond NARA's capabilities to repair. Records Retention Schedules During this reporting period, OTR received approval from the Archivist of the United States for the following five BIA electronic systems records schedules: MADS, Keyfile System, GLADS, Alaska Title Plant Data Base, and Land Title Mapper. The Archivist also approved the Box Index Search System records schedule. Records Evaluation As previously reported, 31 boxes set aside for evaluation remain at OTR in Albuquerque pursuant to a litigation hold. There has been no change during this reporting period. Records Management Policies and Procedures As reported in the OTR Activity Report for February 2006, OTR was notified of allegations of destruction of trust and non-trust records at the BIA Fort Defiance Agency. OTR and OTRA conducted a joint examination of the allegations and concluded that approximately one cubic foot of documents, comprised of original incomplete sand and gravel permits (which were considered to be records) and non-record duplicate copies of archaeological clearances and reports were shredded by Agency staff. As a follow-up to the destruction of records at the BIA Fort Defiance Agency, OTR provided records management briefings specifically targeted to the
2

Records Management

The OTR Monthly Activity Reports for January and February 2006 inadvertently referenced the original number of 283 boxes.

22

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 26 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE Mar 1, 2006 Records ,Management

managers of BIA programs in the BIA Navajo Region. The purpose of the training was to reinforce the record keeping responsibilities of managers. Also as reported in the OTR Activity Report for March 2006, OTR received a request from the OST Northwest Regional Fiduciary Trust Administrator to conduct an investigation into possible unauthorized destruction of federal records or non-records material stored at the OST field office in Portland, on or about February 16, 2006. OTR and OTRA conducted a joint examination March 28 - 30, 2006. It is anticipated that a report will be prepared in the next reporting period. Delays and Obstacles Lack of Internet access continues to hinder OTR's ability to provide remote access to the record index database for authorized users of the records. If Internet access were available, authorized researchers could conduct their searches from their respective work sites and only visit A1RR when necessary to inspect specific boxes or request documents from specific boxes. Assurance Statement I concur with the content of the information contained in the Records Management section of the Status Report to the Court Number Twenty-Five. The information provided in this section is accurate to the best of my knowledge. Date: April 20, 2006 Name: Signature on File Ethel J. Abeita Director, Office of Trust Records Office of the Special Trustee for American Indians

23

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 27 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1, 2006 Indian Fiduciary Trust Trainin~ Program 3. INDIAN FIDUCIARY TRUST TRAINING PROGRAM Introduction Interior has a continuing responsibility to provide adequate staffing, supervision and training for trust fund management and accounting activities. Fiduciary trust training is essential to the success of Interior's trust reform efforts and forms an integral part of all training for Interior employees who are involved in the management of Indian trust assets. Accomplishments and Completions OST offered two sessions of the course, Fiduciary Overview Program, presented by Cannon Financial Institute, with 57 OST, BIA and tribal personnel attending during this reporting period. A total of 793 people have attended this course since March 2003. This course compares and contrasts the federal Indian trust administered through Interior with private sector trusts administered through banks and other financial institutions. During this reporting period, Cannon Financial Institute personnel presented all six of the specialty courses to 100 OST, BIA and tribal personnel. The specialty courses, Risk Management, Probate, Trust Accounting, Asset Management, Fiduciary Behavior and Guardianships are part of the Certified Indian Fiduciary Trust Specialist certification program as described in previous reports. During this reporting period, OST training staffconducted 10 training sessions in TFAS, CSS, StrataVision and the historical query database for 60 OST, BIA and contractor staff. OST and BIA staff presented the three-day course, Trust Fundamentals, to 21 OST, BIA and tribal staff. This course includes such topics as the history and policy of Indian trust, current trust reform activities, job roles and responsibilities, and organization and working relationships. Current Status During this reporting period, 11 OST personnel attended the Certified Indian Fiduciary Trust Specialist review and exam session, and are expected to receive their certifications during the next reporting period. Dedication ceremonies for the NIPTC are scheduled for Thursday, April 27, 2006. Delays and Obstacles The lack of Internet access inhibits electronic communication with other governmental agencies and contractors, hinders the research of training tools and potential contractors, and restricts OST's ability to access online training programs.

28

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 28 of 54

STATUS REPORT TO THE COURT NUMBER TWENTY-FIVE May 1,,,2006 Assurance Statement I concur with the content of the information contained in the Indian Fiduciary Trust Training Program section of the Status Report to the Court Number Twenty-Five. The information provided in this section is accurate to the best of my knowledge. Date: April 19, 2006 Name: Signature on File Dianne M. Moran Director, Trust Training Office of the Special Trustee for American Indians Indian Fiduciary Trust Trainin~ Program

29

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 29 of 54

Exhibit 29

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 30 of 54

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ELOUISE PEPION COBELL, et al., ) ) Plaintiffs, ) ) v. ) ) DIRK KEMPTHORNE, Secretary of the Interior, ) et al., ) ) Defendants. ) __________________________________________)

Case No. 1:96CV01285 (Judge Robertson)

NOTICE OF FILING OF THE THIRTIETH QUARTERLY REPORT FOR THE DEPARTMENT OF THE TREASURY The Department of the Treasury has prepared its Thirtieth Quarterly Report on Actions Taken By the Department of the Treasury to Retain IIM-Related Documents Necessary For an Accounting and submits it to the Court in accordance with this Court's Order of December 21, 1999. A copy of the report is attached hereto. Dated: June 1, 2007 Respectfully submitted, PETER D. KEISLER Assistant Attorney General MICHAEL F. HERTZ Deputy Assistant Attorney General J. CHRISTOPHER KOHN Director /s/ John J. Siemietkowski ROBERT E. KIRSCHMAN, Jr. (D.C. Bar No. 406635) Deputy Director JOHN J. SIEMIETKOWSKI Trial Attorney Commercial Litigation Branch Civil Division P.O. Box 875 Ben Franklin Station Washington, D.C. 20044-0875 Phone (202) 514-3368 Fax (202) 514-9163

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 31 of 54

CERTIFICATE OF SERVICE I hereby certify that, on June 1, 2007 the foregoing Notice of Filing of the Thirtieth Quarterly Report for the Department of the Treasury was served by Electronic Case Filing, and on the following who is not registered for Electronic Case Filing, by facsimile:

Earl Old Person (Pro se) Blackfeet Tribe P.O. Box 850 Browning, MT 59417 Fax (406) 338-7530

/s/ Kevin P. Kingston Kevin P. Kingston

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 32 of 54

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 33 of 54

THIRTIETH QUARTERLY REPORT ON ACTIONS TAKEN BY THE DEPARTMENT OF THE TREASURY TO RETAIN IIM-RELATED DOCUMENTS NECESSARY FOR AN ACCOUNTING Cobell v. Kempthorne June 1, 2007 This is the Thirtieth Quarterly Report filed by the Department of the Treasury ("Treasury") pursuant to the Court's December 21, 1999 Order ("Order") in the abovecaptioned case. It covers activities occurring over a three-month period from March 1, 2007 through May 31, 2007. The Order requires Treasury to report on the steps it has taken since the last quarterly report to preserve IIM-related documents. As reported in Treasury's Twenty-Seventh Quarterly Report filed September 1, 2006, several boxes of FMS and BPD records were affected by a water sprinkler incident at the Washington National Records Center (WNRC) in July 2006, and NARA sent the boxes to a contractor to be freeze-dried. As of the date of this report, all of the boxes have been dried and returned to the WNRC. As also reported in Treasury's Twenty-Seventh Quarterly Report, a portion of FMS' working copy set of microfilm copies of negotiated Treasury checks was exposed to water when the basement of FMS' Hyattsville, Maryland office flooded on June 25, 2006. The water exposure is believed to have affected the quality of the check images on at least portions of some of the water-exposed microfilm cartridges. FMS procured the services of a contractor to wash approximately 2,000 (roughly one-sixth) of the waterexposed cartridges, because those cartridges contain check copies for which original checks may not be available. Washing the microfilm should remediate any adhesions (film layers sticking together), thereby preventing further damage to the images on the microfilm and restoring the functioning of the microfilm (i.e., by enabling it to be fed through a microfilm reader). The microfilm washing services are expected to be completed by the end of June 2007. On March 1, 2007, Kenneth E. Carfine was appointed Treasury Fiscal Assistant Secretary, replacing Donald V. Hammond who resigned that position in January 2007. The Fiscal Assistant Secretary oversees the Financial Management Service and the Bureau of the Public Debt.

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 34 of 54

Exhibit 30

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 35 of 54

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

ELOUISE PEPION COBELL, et aI., )

Plaintiffs, )

v. )
DIRK KEMPTHORNE, Secretary of The Department of Actions Taken By the Department of

) ) )

Defendants. )

et aI., )
the Interior, )

Case No. 1:96CY01285 (Judge Lamberth)

) )

NOTICE OF FILING OF THE TWENTY-SEVENTH OUARTERLY REPORT FOR THE DEPARTMENT OF THE TREASURY
the Treasury has prepared its Twenty-Seventh Quarterly Report on

the Treasury to Retain IIM-Related Documents Necessary

For an Accounting and submits it to the Court in accordance with this Court's Order of
December 21, 1999.
A copy of

the report is attached hereto.
Respectfully submitted,

Dated: September 1,2006

PETER D. KEISLER Assistant Attorney General STUART E. SCHIFFER Deputy Assistant Attorney General J. CHRISTOPHER KOHN Director

/s/ John J. Siemietkowski ROBERT E. KIRSCHMAN, Jr (D.C. Bar No. 406635) Assistant Director JOHN J. SIEMIETKOWSKI Trial Attorney Commercial Litigation Branch Civil Division P.O. Box 875 Ben Franklin Station

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 36 of 54

Washington, D.C. 20044-0875
Phone (202) 514-3368
Fax (202) 514-9163

2

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 37 of 54

CERTIFICATE OF SERVICE
I hereby certify that, on September 1,2006 the foregoing Notice of Filing of Twenty-Seventh Quarterly Reportfor the Department of

the

the Treasury was served by Electronic Case Filing, and on the following who is not registered for Electronic Case Filing, by facsimile:

Earl Old Person (Pro se)
Blackfeet Tribe

P.O. Box 850 Browning, MT 59417 Fax (406) 338-7530

Isl Kevin P. Kingston Kevin P. Kingston

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 38 of 54

tR
~ ,,~'% .~Jr~..X';:/

~-;Aå~
DEPARTMENT OF THE TREASURY
BUREAU OF THE PUBLIC DEBT WASHINGTON. DC 20239.0001

~J~ t/

September 1,2006
MEMORANDUM FOR:
PETER D. KEISLER ASSIST ANT ATTORNEY GENERAL CIVIL DIVISION U.s. DEPARTMENT OF JUSTICE

FROM:

PAULG~ WOLFTEIC~..
CHIEF COUNSEL BUREAU OF THE PUBLIC DEBT DEP ARTMENT OF THE TREASURY

SUBJECT:

TWENTY -SEVENTH QUARTERLY REPORT CaBELL v. KEMPTHORNE

Included with this cover memorandum is th.e "Twenty-Seventh Quarterly Report on
Actions Taken by the Department of the Treasury to Retain 11M -Related Documcnts

Necessary for an Accounting" (the Report). The Report has been preparcd by the
Departent of the Treasury pursuant to the Comt Order and Opinion in Cobell v. Babbitt

(D.D.C. CV No. 96-1285), fied December 21,1999.
The Report inc1udes infonnatioI1 concerning the Financial Management Service ("FMS"), the Bureau of the Public Debt ("BPD"), and certain Departmental Offices ("DO"). The
Report was prepared bascd Oil infonnation provided by a number of

program offices from

the above-described organizations. The preparation of the Report included circulation of drafts of the Report to program offices that are responsible for the actions described in
the Report. Comments were received from those offices and incorporated in the Report.

Senior officials ofFMS, BPD and DO reviewed the Report before it was submitted to the

Departent of Justice.
The Department of the Treasury stands ready to respond to any questions or concerns the Court may have after reviewing the Report.

www.treasurydirect.gov

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 39 of 54

TWENTY-SEVENTH QUARTERLY REPORT ON ACTIONS TAKEN BY THE DEPARTMENT OF THE TREASURY TO RETAIN 11M-RELATED DOCUMENTS NECESSARY FOR AN ACCOUNTING
Cobell, et al. v. Kempthorne, et aL.

September 1,2006
the Treasury's ("Treasury") Twenty-Seventh Quarterly This is the Department of Report, pursuant to the Court's December 21, 1999 Order ("Order") in the abovecaptioned case. It covers activities occurring over a three-month period from June 1,

2006 through August 31,2006. The Order requires Treasury to report on the steps it has taken since the last quarterly report to rectify a single breach of its trust responsibilities, namely the destruction of 11M trust materials after their age exceeded six years and seven months. Cobell, et aI. v. Babbitt, et aI., 91 F.Supp. 2d 1,50,59 (D.D.C. 1999).
Treasury continues to preserve 11M-related documentation pursuant to the Court's August 12, 1999 Order, which defines the trust records that Treasury must retain. During the past quarter, Treasury again issued reminders to ensure the retention of required records. The reminders issued this quarter include letters reminding banks (see Attachments A and ,,), Secret Service (see Attachment C), the National Archives and Records Administration (NARA) (see Attachments D and ~), and a contractor (see the Attachment F), to continue retaining pertinent records. In addition, employees of the Public Debt (BPD) were Financial Management Service (FMS) and the Bureau of again reminded to continue preserving records related to this litigation (see Attachments G and H), and retention instructions to pertinent Departmental Office (DO) employees
continue to be posted on DO's intranet site (see Attachment I).
On June 14,2006, Federal Reserve Bank (FRB) attorneys representing each FRB
. district participated in a conference call, during which representatives of

the FMS Chief Counsel's Offce provided an update on the Indian trust litigation and a reminder that no FRB fiscal agency records may be destroyed unless approved in writing by Treasury.
During this reporting period, FMS experienced two incidents in which certain of
its records were exposed to water. One occurred as a result of unprecedented rainfall at

the end of June 2006; the other occurred as a result of a sprinkler system water main break.

The basement ofFMS' Hyattsvile, Maryland office flooded on June 25, 2006, exposing to water the bottom drawers of a large group of file cabinets containing FMS' working-copy set of microfim copies of negotiated Treasury checks. This working copy set was created to be used by FMS' Check Claims Branch personnel to obtain copies of checks needed for carrying out business functions without having to access original
negotiated checks from the Federal Records Centers. The water exposure is believed to

have affected the quality of the check images on at least portions of some of the waterexposed microfim cartridges. FMS is continuing to investigate the extent of any the information on those microfilms is available damage, but it is believed that much of from other FMS records.

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 40 of 54

On July 14,2006 and July 17,2006, NARA informed FMS and BPD,

their paper records stored at the Washington National Records Center in Suitland, Maryland (WNRC) became wet as the result of a sprinkler that burst due to a water main break on July 2, 2006. Approximately which contain types 124 boxes ofFMS records were affected by the water leak, some of of records that could include llM -related records (e.g., Treasury checks and check claims which contain documents). Approximately 18 boxes ofBPD records were affected, all of Savings Bond records. NARA has advised FMS and BPD that it sent all affected boxes to a remediation contractor, to be dried using freeze-drying techniques, and that it expects all of the boxes to be returned in good condition to the WNRC, possibly by the end of November 2006.
respectively, that boxes from several accessions of

2

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

Page 41 of 54

INDEX TO ATTACHMENTS
The Department of the Treasury's Twenty-Seventh Quarterly Report September 1, 2006

Attachment A

August 1, 2006 letters mailed by FMS to Mellon Bank and Bank of America, reminding them to continue preserving all records pertinent to two lockbox accounts used to process IlM deposits (the account at Mellon Bank is open; the account at Bank of America is closed).
Examples of August 2, 2006 Business Alert Message sent.

Attachment B

by FMS

to all banks that act as Treasury's financial agents and August 11, 2006 letter sent by FMS to all banks that formerly acted as Treasury's financial agents, reminding them to continue to retain, indefinitely, records associated with Interior's deposits to the
Treasury General Account.

Atta.chment C

August 11,2006 letter issued by FMS, reminding the U.S. Secret Service to continue preserving, until further notice, all Treasury checks that FMS forwards for investigation and related information
and records.

Attachment D

August 14, 2006

letter from BPD to NARA, reminding NARA to continue the "freeze" on BPD records at Federal Records Centers.

Attachment E

August 14, 2006 letter from FMS to NARA, reminding NARA to continue the "freeze" on FMS records at Federal Records Centers.
August 30, 2006 letter from FMS to Didlake, Inc., reminding Didlake, Inc. to continue retaining closed check claims case records indefinitely.

Attachment F

Attachment G

Global e-mail issued August 10,2006 to all FMS employees, and posted on FMS' intranet site, reminding employees to continue retaining records related to this litigation indefinitely and to continue utilizing the "Cobell Archive" mailbox to retain all IlMrelated e-maiL.

Attachment H

Global e-mail issued August 21, 2006 to all BPD employees, and posted on BPD's. intranet site, reminding employees to continue preserving IlM-related records indefinitely and sending all IlMrelated e-mail to BPD's dedicated mailbox.

Attachment I

Retention instructions issued to DO employees and posted on DO's intranet site, including steps for sending e-mail documents to DO's dedicated "Cobell" mailbox.

(I

Case 1:06-cv-00945-FMA

Document 19-9

Filed 06/21/2007

DEPARTMENT OF THE TREASURY FINANCIAL MANAGEMENT SERVICE
WASHINGTON, D.C. ZOZZ7

Page 42 of 54 A Attachment
(1 of 2)

Augus t i, 2006

Ms. Elaine Friedman, Vice President Mellon Bank Mellon Client Service Center Suite 1260 Pittsburgh, PA 15259-0001
Re: Minerals Management Service Lockbox Account

Agency Location Code 14170001, Lockbox Number 911-4258
Dear Ms. Friedman:

As you mow, FMS remains under a continuing court order in Cobell, et at v. Norton, et ai. to preserve, indefinitely, all records relating to Individual Indian Money (UM) trust
funds and trust assets. Accordingly, please continue to retain all documentation

pertaining to the above-referenced lockbox account until further notice. You have confirmed that the records for this account include:
St