What Was The Revenue Generated By Headrights For Osage Families?

In 1923, the Osage Nation received $30 million, or $400 million in today’s money, from oil leases. Osage headrights are property rights protected under federal law that entitle their owners to receive quarterly payments from the Osage Mineral Estate and vote for members of the Osage Mineral Council. These headrights were linked to citizenship and were the motive behind a series of murders in the 1920s when White people were unable to vote in tribal elections without them.

An average Osage family of a husband, wife, and three children would receive more than $65, 000 a year in 1926, and by 1939, Osage families would have received more than $70, 500 a year. Once the oil was flowing, the Osage Nation became the wealthiest community in the world per capita, with people receiving payments worth hundreds of thousands of dollars a year. However, as the wealth of the Osage Nation grew, so did the greed and corruption within the tribe. Some members began to exploit the headright system, using illegal means to gain more.

Out of the 2, 229 thousand Osage headrights, about a quarter are no longer in Osage hands, according to The Bureau of Indian Affairs. The Oklahoma Historical Society is one non-Osage owner. While the Osage people are no longer among the richest people, the effects of the oil industry are still felt today. Many Osages still receive their quarterly royalty payments, known today as headrights.

In 2011, Congress passed a law prohibiting non-Osage people from inheriting headrights owned by the Osage Nation. Each Osage person on the tribal rolls in 1907 was given an equal share of the income coming in, what would come to be called a headright. Over the last 100 years, one headright paid out the equivalent of almost $4 million in current dollars.

Do Osage Indians Still Receive Oil Royalties?

The Osage people, once the wealthiest tribe due to oil reserves discovered in northeastern Oklahoma, still experience the lingering impacts of the oil industry today. They continue to receive quarterly royalty payments, termed headrights, despite the fact that approximately 25 percent of these rights are now owned by non-Osage individuals. The U. S. government manages these royalties through Individual Indian Money (IIM) accounts, leading to significant accumulation.

Historically, Osage leaders negotiated with the U. S. government to have federal management of their mineral rights, allowing them to benefit from oil extraction. Although they are not the richest anymore, the Osage Nation's wealth distribution program still disburses revenue from oil and gas royalties among its members. Mismanagement and decreased oil production over the years have caused challenges, including a high number of abandoned oil wells.

Additionally, non-Osage entities, including trusts and churches, hold some headrights. The Bureau of Indian Affairs has started to disclose these holdings, raising questions about wealth distribution. Despite these changes, the Osage oil industry has created job opportunities and contributed to economic development in Oklahoma. The rights to mineral resources remain collectively owned by the tribe, regardless of land ownership.

How Many Osage Headrights Are There?

There are 2, 229 Osage headrights, corresponding to each member of the Osage Nation enrolled in 1906, entitling the owner to a quarterly share of the Osage Mineral Estate. The significance of these headrights is underscored by their connection to the Osage Indian murders, as they motivated some perpetrators. Each headright is a type of property right in the U. S., representing the right to receive funds from the Osage Mineral Estate. As of today, about 26% of these headrights are no longer in Osage hands, with a variety of non-Osage individuals and entities, including universities and trusts, possessing them.

Historically, from 1906 to 1978, non-Osages could inherit headright interests, a practice that was curtailed by Congress in 1978, limiting inheritance to those of Osage Indian blood, barring the inheritance of a "life estate" by non-Osages. The process through which these non-Osage owners acquired their headrights often involved troubling tactics, including marriage and exploitation within the tribe.

Documentation reveals that more than 500 headrights are now owned by non-Osages, illustrating a significant deviation from the original intent of benefiting the Osage Nation. The Osage Minerals Council, the governing body for the mineral affairs, emphasizes the ongoing relevance and controversy surrounding headrights and their management.

How Much Money Do Osages Get Paid?

McAuliffe discusses the historical exploitation of Osage money, particularly through a system of headrights. In 1925, quarterly payments averaged $3, 350, but Osages deemed "incompetent" received only $1, 000, with guardians taking the rest. Today, there are 2, 229 Osage headrights, with each valued at $155, 136. In 2011, the federal government paid $380 million to resolve Osage claims that it had failed in its fiduciary duty regarding oil prices from their mineral estate.

Headrights are rights to quarterly distributions from the Osage Mineral Estate, and they can also be owned by individuals outside the Osage tribe. Oil royalties began providing significant income to the Osage Nation in the early 20th century, leading to widespread interest and criminal schemes aimed at acquiring these headrights, including murders as illustrated in David Grann's book, "Killers of the Flower Moon." The Osage manage their mineral rights through federally managed trusts, with collective royalties distributed among members based on defined roles.

By the late 1930s, average payments had risen substantially, highlighting the initial wealth generated by these resources. Today, while Osage individuals continue to receive payments, the amounts have significantly declined due to decreased production and the fragmentation of headrights over generations.

Why Did Osages Have Headrights?

Headrights are crucial to Osage identity and rights, beyond mere monetary gain from oil. For many years, Osages were disenfranchised, unable to participate in tribal elections without these rights. In the 1920s, headrights became the motive for a series of murders, as some white individuals conspired to kill Osages to seize their rights. When the U. S. government allocated land to the Osage, tribe members retained the rights to profits from the oil beneath, known as headrights, which could only be inherited, not sold.

These headrights, legal property rights protected federally, provide quarterly payments and voting privileges in the Osage Mineral Council. Despite the primary ownership by Osages, non-Native individuals could inherit these rights through marriage, leading to significant exploitation. In response to historic injustices, Osage leaders sought legislation to restrict headrights from being transferred to non-Osages. The Bureau of Indian Affairs estimates around 25% of headrights are currently held by non-Osage entities.

Although legislation has changed, and some rights can now be inherited by non-Osage individuals, historical laws have deeply impacted their distribution. The modern context sees descendants of initial Osage owners holding most rights, while the legacy of the Osage murders still influences perceptions and policies regarding headrights today.

What Is The Value Of An Osage Headright?

An Osage headright represents a share of profits derived from natural resources, such as oil, gas, and coal, extracted from the Osage Nation's land. These annual payments can amount to thousands of dollars, with recent figures showing payments falling significantly from over $40, 000 in 2012 to $15, 790 last year due to fluctuating oil prices and reduced drilling activity. A headright provides the right to receive quarterly distributions from the Osage Mineral Estate, but only individuals of Osage Indian blood can inherit headrights.

Non-Osage individuals may inherit a "life estate" in a headright, which does not confer full ownership rights. The Osage Nation retains all mineral rights in Osage County, Oklahoma, generating income from extracted minerals. The Osage Minerals Council seeks federal legislation to allow non-Osage headright owners to transfer or sell their interests back to the Osage Nation. The headright has historical significance, remembered for its role in the Osage Indian murders and ongoing discussions regarding non-Osage ownership. Historical data indicates that payments have fluctuated significantly since 1880, reflecting both economic conditions and changes in resource management.

Are The Osage Indians Still Wealthy?

The Osage people once enjoyed immense wealth from oil reserves on their land in the early 20th century, making them among the richest per capita globally. However, this wealth attracted violence and exploitation, resulting in the loss of approximately one-quarter of the Osage Mineral Estate through sales, violence, and inheritance complexities. The U. S. government implemented a guardianship system that restricted Osages from managing their finances freely, leaving them vulnerable to manipulation by white settlers and outsiders who sought to benefit from their wealth.

The period known as the Osage Reign of Terror saw the murder or disappearance of at least 60 Osage individuals, often for the financial gain of their white spouses or guardians. Despite these challenges, many Osages continue to receive quarterly royalty payments, referred to as headrights, although an estimated 25% are now owned by non-Osage entities. The legacy of the oil industry continues to affect the Osage Nation, which is currently working to reclaim land and wealth lost over the decades.

Today, the community focuses on improving financial well-being while navigating the historical injustices they faced, reflecting on the complexities of their past and the enduring impact of resource extraction on their society.

How Much Is The Osage Headright Payment For 2024?

In March 2024, a payment of $4, 835 is set for each full headright, though the Osage Minerals Council later announced a revised amount of $3, 570. Confirmations of postings to Individual Indian Money (IIM) accounts occurred on February 28. The December 2024 payout is expected to be $4, 470 per headright. A headright is defined as the right to quarterly distributions from the Osage Mineral Estate, which can also be owned by non-Osages. Payment amounts fluctuate based on various market conditions and resources extracted.

Discussions at council meetings have included salary increases for council members, with proposals for legislation enabling non-Osage headright holders to transfer rights back to the Osage Nation or its councils. A historical overview reveals varying payment amounts over the years, from $10. 50 in 1880 to $4, 835 in 2024, reflecting significant economic changes. The Osage Minerals Council oversees these payments and operations, and shareholders can contact the Osage Nation through multiple methods for account inquiries. The overarching structure ensures that mineral profits are allocated to headright owners, safeguarding property rights under federal law since 1906.

Do The Osage Still Have Headrights?

The Osage Nation has 2, 229 federally-protected headrights, representing shares of the Osage Mineral Estate, originally assigned to enrolled members in 1906. A significant issue has arisen, as approximately 25% of these headrights are owned by non-Osage individuals and organizations, including the Oklahoma Historical Society. Historically, the Osage people faced exploitation where non-Osage individuals, sometimes through coercion, acquired headrights and committed violent acts for financial gain. Following this "Reign of Terror," legislation was enacted to prevent further transfers of headrights to non-Osages, yet many had already acquired them.

The Osage Minerals Council advocates for a federal legislative solution allowing non-Osage owners to return headrights to the Osage Nation and its members. As of November 2021, the Council has been actively seeking such legislation. The Osage Nation maintains all mineral rights within Osage County, benefiting from the proceeds of oil and gas extraction despite the troubling history associated with the headrights.

Today, the Osage Nation continues to receive quarterly royalty payments derived from these rights, with efforts ongoing to reclaim rightful ownership and address historical injustices surrounding the headright system.

Are The Osage People Still Financially Prosperous?

The Osage Nation, once among the wealthiest per capita due to oil reserves, continues to experience significant financial impacts from the oil industry, albeit the wealth distribution among its members is unequal. Though many Osages receive quarterly royalty payments referred to as headrights, indicating ongoing revenue from oil production in Osage County, not all members share equally in this prosperity. The tribe has implemented a wealth distribution system to ensure fair benefits for all tribal members, including per capita payments.

Historical contexts, such as the removal of the Osage from Missouri and events depicted in "Killers of the Flower Moon," highlight the tribe's turbulent history and the critical role of tribal leaders in advocating for financial well-being. Despite their historical wealth, many Osages still struggle financially today. The discovery of oil in the early 20th century dramatically altered the tribe's fortune, but U. S. government policies created financial dependencies that led to exploitation.

Once famous for their wealth, some Osage members faced devastating consequences amidst rising fortunes. The BIA's acknowledgment of non-Osage entities holding headrights illustrates ongoing complexities. Consequently, the Osage people's legacy continues to reflect both resilience and profound challenges.

What Are 3 Facts About Osage?

The Paris Catacombs house the remains of over six million people, showcasing the dark history of human life. Interestingly, the average cloud weighs more than one million pounds, illustrating the earth's atmospheric wonders. In a quirky health fact, neckties can reduce brain blood flow by 7. 5 percent. Notably, Finland has consistently ranked as the happiest country in the world for seven years. Shifting focus, the Osage Tribe, renowned for their rich history, once inhabited significant parts of Missouri and is distinguished by their tepee usage during hunting seasons.

Central to their culture were religious ceremonies, with clans divided into sky and earth groups. The Osage, meaning "People of the Middle Waters," originated from the Ohio and Mississippi regions and thrived in the Great Plains. They excelled in hunting and had a powerful presence in central United States territories, including present-day Oklahoma. Osage women primarily engaged in farming and childcare, while men were hunters and warriors.

Living in semi-permanent villages, they maintained a vibrant cultural life, expressed through rituals and communal dances, exemplifying their enduring heritage. Today, they continue to thrive, particularly in the Osage reservation in northern Oklahoma.

What Native American Tribe Is The Richest?

In 2024, the richest Native American tribes are highlighted, showcasing their economic achievements and cultural facts. The Shakopee Mdewakanton Sioux Community in Minnesota stands out with a net worth of $2. 7 billion, largely attributed to their Mystic Lake Casino. They rank as the wealthiest tribe in America, renowned for individual wealth. Other notable tribes include the Cherokee Nation, known for its diverse economy, and the Seminole Tribe of Florida, which benefits from two major casinos and smart leadership under non-native CEO Jim Allen since 2006.

The article mentions tribes like the Squamish Nation, with a net worth of $780 million, and others contributing to this list. Their wealth comes from various sources, including gaming, energy production, land management, and strategic financial stewardship. The Navajo Nation remains the largest tribe in terms of population, exceeding 300, 000, with wealth derived from energy production and other sectors. Overall, the exploration delves into the contributors to their prosperity and resilience in American history.

What Is The Revenue Of Osage?

During the fiscal years 2023 and 2022, the Osage Nation received $66. 9 million and $59. 7 million respectively from the Osage Casinos, which significantly contribute to its discretionary revenue and financial stability. Osage LLC financed $340, 000 for ONES to manage payroll and acquire vehicles and equipment. Current ONES projects include contracts at Fort Benning, GA, and Fort Campbell. The Osage Nation is also set to receive an additional $750, 000 in gaming revenue for government operations.

In previous years, revenue was $59. 7 million in 2022 and $51. 2 million in 2021 from the Casinos. The estimated annual revenue for the Osage Nation is around $35 million, with a revenue per employee of $69, 721. The Osage Nation Ranch generates revenues between $100 million and $500 million, classified under the amusement industry. The 2024 fiscal year distribution from the Osage Nation Gaming Enterprise is projected to be $71 million, an $8 million increase from the current year.

Additionally, the Osage have revenue from mineral leases for lead, zinc, limestone, and coal. The Osage Mineral Estate references the subsurface mineral rights of the 1. 47 million-acre Osage Reservation and has historically contributed to the wealth of the tribe.