National Indian Gaming Commission 

Settlement Agreement 

SA-95-03 

Introduction 

This Settlement Agreement ("Agreement") is cntcred into by and between the Elem 

Indian Colony of Porno Indians of the Sulphur Bank Rancheria ("Tribe")), a fcderalIy-recognized 

Indian tribe, and the Chairman of the National! Indian Gaming Commission C'NIGC"), relating to 

the matter contained in Notice of Violation No. NOV-95-03 and Order of Temporary CIosure 

No. CO-95-03 issued by the NlGC Chairman PChaiman"). 

Recitals 

A. WHEREAS. on October 1 3, 1 995, the Chairman issued NOV-95-03 as a result of the 

Tribe's: (I) conduct of gaming operations at the former Elem Casino and former Porno 

Palace Casino in a manner that precluded adequate protection of the health and sarely of 

the gaming public, in violation of the Indian Gaming Regulatory Act (IGRA). 25 U.S.C. 

$271 0(h)(2)(E); NIGC Regulations. 25 C.F.R. 5 573.6(a)(12); and Section 7fi) ofthe 

Tribe's Gaming Ordinance as it existed at that time; and (2) failurc to complcte 

background investigations and grant gaming licenses to key employees and primary 

management oficials, and to forward results of thc background investigations to the 

NIGC, in violation of IGRA. 25 U.S.C. 4 271 0@)(2)(F), and NTGC Regulations, 25 

C.F.R. $ 573.6(a)(5). 

B. WEREAS, on October 13. 1995. the Chairman issued GO-95-03, ordering temporary 

closure of the EIern Casino and the Porno Palace Casino, as a result of the violations 

described in paragraph A above. 

C. WHEREAS, the Tribe ceased gaming operations at the Elem Casino and Porno Palace 

Casino prior to issuance of NOV-95-03 and GO-95-03, and never resumed gaming 

operations at either facility. 

D. W1-IEREAS, the Chairman finds that good cause exists to rescind the temporary closure 

order. GO-95-03. because the Tribe nevcr rcsumed gaming at thc closed facilities; has 

agrced to maintain their gaming facilities in a manner which adequately protects the 

environment, public health, and safety; and has agreed to ensure that background 

investigations are conducted on primary management ofticials and key employees and 

that the results of such investigations are provided to the NIGC. 

Page 1 of 3 
E. WT-IEWAS, the Tribe and thc Chairman desire to achieve an amicable resoIution of 

Notice of Violation No. NOV-95-03, the ccscission of Order of Temporary Closurc No. 

CO-95-03, and the Tribe's appeal. 

F. TI-IEREFORE. the Tribe and the Chaiman have agreed to execute this Agreement and 

perform in accordance with the following covenants and conditions. 

Terms of Scttlcmcnt 

1. This Agreement is cntcrcd into pursuant to 25 C.F.R. 83 573.6(~)(3) and 577.9Cd) and 

shall be effective upon thc datc that it is signed by the last party to sign this Agreement 

("EI'Fccti ve Date"). 

2. The Tribe agrees that. pursuant to IGRA. 25 U.S.C. 6 271 0(b)(2)(E): NTGC Regulations, 

C.F. R. 8 573.6(a)(12): and Section 7(b) of the Tribe's Gaming Ordinance as it existed on 

October 13. 1995, it was required to construct, maintain and operate thc EIem Casino and 

Porno PaIace Casino in a manner which adequately protected the environment, public 

health and safety. 

3. The Tribe further agrees that, pursuant to TGRA, 25 U.S.C. 271 0(b)(2)(F); NIGC 

Regulations, 25 C.F.R. 8 # 573.6(a)(5) and part 558, it was rcquired to conduct 

background investigations. issue gaming licenses, and submit reports to the NIGC for all 

key employees and primary management officials ofthe gaming operations. 

4. The Tribe acknowIedges that the requirements set forth in paragraphs 2 and 3 above were 

not satisfied with respect to the Elem Casino and Porno PaIace Casino and. thus. that 

gaming operations at thcsc facilities wcre conducted in violation oi'the IGRA, NIGC 

regulations. and the Tribe's Gaming Ordinance as it existed at that timc. 

5. The Tribe agrees that, prior to the operation of further gaming activities hy the Tribe. it 

will ensure that a tribal gaming commission is formed and is adequately funded and 

staffed. 

6, The Tribe further agrees that any fuhrrc gaming operation wiII be constructed, maintained 

and operated in a manner which adequately protects thc cnvironment. public health. and 

safety. 

7. The Tribe further agrees upon execution of this Agcernent to waive the right to further 

review of mattcrs addrcsscd in NOV-95-03. CO-95-03, and this Agreemenl, including all 

rights to appeal to the full Commission as set forth in 25 C.F.R. Part 577. and judicial 

review pursuant to 25 U.S.C. $27 14. As a consequence, the Tribe agrees to dismiss its 

appeal of these matters, and execution of this Agreement will constitute dismissal of 

thosc appeals. 

8. The Chairman agrees to rescind Order of Temporary Closure No. CO-95-03. 

Page 2 of 3 
9. In the event that it fails to comply with this Agreement, the Tri bc agrees and consents 

that a civil fine of fifty thousand dollars ($50,000) will bccome fully due and payable on 

the date ofthe breach. In such circumstance, the NIGC will issue a written notice to 

Respondent pursuant to NIGC dcbt colIection regulations. 25 C.F.R. Part 51 3. 

Respondent agrees that the NIGC andlor the U.S. Treasury may proceed with debt 

collection of the fifty thousand dollar ($50,000) civil finc against the Tribe, and may 

asscss interest, penalties, administrative costs from the date of the breach of this 

Agreement as providcd in 25 C.F.R. Q 5 13.5. In such circumstance, the Tribe agrees ro 

waive any rights to an oral hearing under 25 C.F.R. 5 5 13.6. but the N IGC shall provide 

the Tribe with a reasonablc opportunity to submit written matcrial supporting a request to 

reconsider the determination that the Tribe is in breach of this Agreement or to challenge 

the method by which the NIGC calculated the debt. 

Additional Covenants 

t 0. This Agrcement constitutes the entire agreement between the Tribe and the NlGC 

Chairman related to the enforcement matter set fort13 at the beginning of this Agrccmcnt. 

Any modification or waiver of any item of this Agreement must be in writing signed by 

both parties. 

11. The Tribe agrees that this Agreement shall be deemed to be the subject of a final ordcr of 

the Commission under 25 C.H.R. $575.4(~)(1$ and a final agcncy action pursuant to 25 

C.F.R. 5 577.91d). 

1 2. The NTGC Chairman and the Tribe expressly apce and acknowledge that time is or the 

essence in this Agreement. The recitals herein shall be binding upon the parties. their 

agents, heirs, personal representatives, successors and assigns. 

13. The parties agree that after the Effective Date. this Agreement shall be a public docurncnt 

and may bc published or discIoscd by cither pasty. 

14. This Agreement may he executed on one or more counterpans~iall constitute 

an original. A signature produced by facsirnilc shall be deemkd do tobe signature 

and shaf 1 be eirective and binding for purpose of thc Agreement. 

Elem Indian Colony of Porno Indians 

of the Sulphur Bank Rancheria 

-2t&d&L7d& Geraldine Johnso Chairperson 

Date: Date: 1-/14/~7 

Page 3 of 3