Community Recreation and Conservation Endowment Act of 1997 - Amends the Land and Water Conservation Fund Act of 1965 to require all escrowed oil and gas revenues and interest received by the United States pursuant to the June 19, 1997, Supreme Court decision in United States v. Alaska to be deposited in a special Treasury account known as the Community Recreation and Conservation Endowment Account.

Authorizes financial assistance to States from interest earned on the Account. Requires States to make at least one-half of the average annual apportionment of assistance available to local governments and other qualified recipients. Provides for annual apportionment of such interest among the States and revises the existing apportionment formula.

Treats Indian tribes and Alaska Native village corporations collectively as one State for assistance purposes and apportions interest in accordance with a competitive grant program, such that no tribe or corporation receives more than ten percent of the total amount made available to all tribes and corporations. Permits such funds to be expended only for outdoor recreation planning or development. Provides that receipt of such funds shall not prevent a tribe or corporation from receiving grants for other purposes under the regular apportionment of the State in which it is located.

Removes a requirement that at least 40 percent of appropriations from the Land and Water Conservation Fund be available for Federal purposes.