NATIONAL INDIAN GAMING COMMISSION 

IN THE MATTER OF: 

NOTICE OF VIOLATION TO TONKAWA TRIBE OF OKLAHOMA, NO. NOV-06-06; 

AND, 

TEMPORARY CLOSURE ORDER TO TONKAWA TRIBE OF OKLAHOMA, NO. CO-06-01 

PRE-OPENING AGREEMENT 

This Agreement is entered into by and between the Tonkawa Tribe of Indians of 

Oklahoma ("Tribe"), through its duly authorized representatives, and the National Indian 

Gaming Commission ("NIGC" or "Commission"), through its Chairman ("Chairman") to 

resolve the following NIGC enforcement actions: 1) Notice of Violation No. NOV-06-06 

( the "Notice of Violation") and 2) Order of Temporary Closure No. CO-06-01 (the 

"Closure Orderyy). The Agreement specifies various compliance measures the Tribe will 

take as a condition to resuming gaming operations. The parties by their signatures below 

represent and agree that they have authority to execute this Agreement and resolve any 

and all matters between the Tribe and NIGC according to the terms and provisions set out 

herein. 

Article I. Recitals 

1. The Tribe is a federally recognized Indian Tribe with its headquarters in 

Tonkawa, Oklahoma. 

2. On February 2, 2006, the Chairman issued the Notice of Violation and 

Closure Order to the Tribe, Edward Street, &a Edward E. Street ("Street"), 

and to Oakland Enterprises, &a Oakland Enterprises, LLC ("Oakland"), for 

managing a gaming facility, specifically the Tonkawa Bingo and Casino 

located in Tonkawa, Oklahoma ("Tonkawa Casino") without a management 

contract approved by the Chairman, in violation of the Indian Gaming 

Regulatory Act ("IGRA.') and NIGC regulations. 

3. On February 8, 2006, the Tribe complied with the Notice of Violation and 

Closure Order and closed the Tonkawa Casino. 

4. The Chairman has authority to levy and collect appropriate civil fines, not to 

exceed $25,000 per violation, against the tribal operator of an Indian game or 

management contractor engaged in gaming, for any violation of any provision 

of the IGRA and NIGC regulations. 25 U.S.C. $ 2713(a)(l); 25 C.F.R. $ 

575.4. "If noncompliance continues for more than one day, the Chairman may 
treat each daily act or omission as a separate violation." 25 C.F.R. 5 

575.4(a)(2). 

5. The Tribe acknowledges that it violated the IGRA and NIGC regulations by 

allowing Street and Oakland to manage the Tonkawa Casino fiom December 

1999 to February 2006, without a management contract approved by the 

Chairman; and has, therefore, entered into this Agreement to ensure that its 

gaming operations are conducted, hereafter, in full and complete compliance 

with the IGRA and NIGC regulations. 

Article 11. Terms and Conditions 

1. Based on the Tribe's request that the Closure Order be rescinded and also 

conditioned on the Tribe's full compliance with the provisions of this 

Agreement, the Chairman and NIGC agree to issue an order rescinding the 

Closure Order. The Chairman and NIGC further agree to separately authorize 

the Tribe to recommence gaming operations at the Tonkawa Casino and to 

commence gaming operations at the Tribe's new Native Lights Casino in 

Newkirk, Oklahoma (collectively, "Facilities", individually, "Facility"), on 

such date that the Tribe has satisfactorily met the terms and conditions set 

forth in this Agreement. The NIGC agrees to consult with the Tribe and its 

newly created independent Tonkawa Tribal Gaming Commission ("Tribal 

Gaming Commission") and to periodically inspect each of the Facilities and 

their related gaming operations and records, in order to determine whether the 

Tribe has separately met the tenns and conditions of this Agreement with 

respect to each Facility. Evidence of the MGC's determination and 

agreement that the Tribe has met the terms and conditions set forth in this 

Agreement as to either of the Facilities will be in the form of a separate letter 

issued by the NIGC Chairman or an authorized designee (the 'WIGC Letter") 

for each individual Facility. The Tribe may not presume such determination 

and agreement as to either Facility by the NIGC, in the absence of the NIGC 

Letter for the individual Facility in question. The parties agree that the NIGC 

Chairman shall have sole discretion to determine whether the Tribe has 

satisfactorily met the requirements of this Agreement as to each individual 

Facility, and to issue the NIGC Letter for each Facility, as well as the order 

rescinding the Closure Order as to the Tonkawa Casino. The NIGC agrees that 

it will issue a separate NIGC Letter for each Facility as soon as possible, but 

no longer than 45 days, after the Tribe provides evidence that reasonably 

demonstrates that the Facility is in satisfactory compliance with the terms and 

conditions of this Agreement. In the event the MGC Chairman determines 

that the evidence provided by the Tribe does not demonstrate satisfactory 

compliance with the terms and conditions of this Agreement, the NIGC 

Chairman will provide immediate written notice to the Tribe of the specific 

areas of deficiency and reasons for his adverse determination, and provide the 

Tribe with reasonable opportunity to correct the specified deficiencies and 

submit additional evidence of compliance for reconsideration by the NIGC 

Chairman. Each Facility may commence gaming as soon as the Tribe receives 

the MGC Letter for that Facility. 
2. Neither the Tribe, nor any tribal entity shall have any association or 

relationship of any kind involving Indian gaming with Street, Oakland, 

Wagner, or any entity owned in whole or in part by Street or Wagner, or any 

entity in any way associated with Street or Wagner, and/or any entity in which 

Street or Wagner or an entity owned by either of them is a shareholder. 

3. Neither the Tribe, nor any Tribal entity or management contractor or vendor 

of the Tribe shall, furthermore, have any association or relationship of any 

kind with Street, Oakland, Peter Wagner Enterprises (Wagner), andlor any 

other entity owned in whole or in part or otherwise associated with Street or 

Wagner, including any entity in which Street, Oakland or Wagner, or an entity 

owned by either of them is a shareholder (collectively, "Prohibited Persons 

and Entities", individually, "Prohibited Person or Entity"), that is involved or 

related in any way with either of the Facilities or the Tribe's gaming 

operations. Such prohibited associations and relationships shall include, 

without limitation, the employment of any Prohibited Person or Entity; the 

receipt or acceptance of any goods or services of any kind fiom any 

Prohibited Person or Entity; the direct or indirect financial or proprietary 

interest in either of the Facilities or any gaming operation or gaming-related 

asset of the Tribe by a Prohibited Person or Entity; or the direct or indirect 

payment of any money or transfer of any gaming machines, devices, 

associated equipment, or other goods or services of any kind by the Tribe or a 

Tribal entity, management contractor or vendor to any Prohibited Person or 

Entity, as consideration for past garning-related goods or services rendered to 

the Tribe or its gaming operations, or for the prohibition or cancellation of 

such garning-related goods or services in the future. t 

4. Neither the Tribe, nor any Tribal entity shall hire or license fonner Street or 

Oakland management employees Carol Fair, Melody Street (aWa Melody 

Ladd), Ailene Gracie Klinger, Carletta Martin, or other individuals who have 

been determined by the Tribal Gaming Commission to be a former key 

management employee of Oakland, to work in any capacity in either of the 

Facilities or any gaming operations of the Tribe. 

5. The Tribe shall provide the NIGC with documentation that confirms that all 

Tribal gaming bank accounts associated with Street or Oakland have been 

closed and that Street, Carol Fair, Melody Street (alkla Melody Ladd), Ailene 

Gracie Klinger, Carletta Martin, or other individuals who have been 

determined by the Tribal Gaming Commission to be a former key 

management employee of Oakland, are not authorized signatories on any 

Tribal bank accounts. 

6. The Tribe shall not honor or assume any contracts with gaming machine 

vendors, service providers, and other vendors that were signed by Street either 

individually or as a representative of the Tribe, the Tonkawa Casino or new 

Facility, or Oakland, and will instead enter into new contracts with the 

vendors, as necessary, which shall be compliant in all respects with the IGRA, 
NIGC regulations, the Tribal gaming ordinance and gaming regulations, and 

other applicable Tribal law. 

After the NIGC Chairman issues the NIGC Letter for a specified individual 

Facility, the Tribe may commence and continue the conduct of gaming at that 

Facility on a probationary basis for a period of sixty (60) months, subject to 

the following terms and conditions of probation: 

A. The Tribe shall establish and maintain an independent, adequately 

staffed Tribal Gaming Commission with a stable and adequately 

funded annual budget, which the Tribal Gaming Commission shall 

have independent authority and sole discretion to utilize and spend 

for its day-to-day operations in discharge of its vested regulatory 

powers and duties regarding the operation and maintenance of the 

authorized Facility and the related conduct of Tribal gaming 

operations, under the IGRA, NIGC regulations, and the Tribe's 

gaming ordinance and regulations. 

B. The Tribe shall conduct and regulate gaming operations at each 

authorized Facility in material compliance with the provisions of this 

Agreement, the IGRA, NIGC regulations, the Tribe's gaming 

ordinance and gaming regulations, the Tribal Internal Control 

Systems and Standards (TICS), and the Tribal-State Compact. In the 

event that management of the authorized Facility, the Tribal Gaming 

Commission, or the Tribe determines that gaming operations at the 

Facility are being conducted or regulated in material violation of any 

provisions of the IGRA, NIGC regulations, the Tribal gaming 

ordinance or gaming regulations, the TICS, the Tribal-State 

Compact, or this Agreement, the Tribe shall promptly notify the 

NIGC's Tulsa, Oklahoma Region V Office of the violation(s) and 

take immediate steps to correct the violation(s) as soon as possible. 

In the event the NIGC thereafter determines that any such selfreported violation(s) have not been timely corrected or determines 

that there are other violations, then the NIGC shall provide the Tribe 

with prompt written notice of the violation(s) and a reasonable time 

period to correct the violation(s); which for purposes of this 

Agreement and 25 C.F.R. 573.3, the parties agree will be a period 

of thirty (30) days following the date of the notice of the violation(s), 

unless otherwise agreed or unless the violation is a "substantial 

violation" as that term is used in 25 C.F.R. 9 573.6, in which case the 

NIGC Chairman or his designee may establish a shorter period. 

Following the period to correct the noticed violation(s), if the MGC 

Chairman determines that the violation(s) has (have) still not been 

corrected, the NIGC Chairman may take enforcement action against 

the Tribe and other liable parties, in accordance with the IGRA and 

NIGC regulations. 
C. The Tribe shall pay a civil fine in the amount and manner provided 

below in Paragraph 2 of Article III., within sixty (60) months after 

the first Facility is permitted by the Chairman to open to the public 

and commence gaming operations under this Agreement. 

8. On or before the opening of the Native Lights Casino, the Tribe will provide 

to the NIGC Tulsa Office and to the Tribal Gaming Commission a detailed 

accounting of the close-out money Erom the Tonkawa Bingo and Casino. 

Article 111. Additional Covenants 

1. The Tribe stipulates that the Notice of Violation and Closure Order shall be 

deemed a final order of the Commission and a final agency action pursuant to 

25 C.F.R. fj 577.9(d). 

2. The Tribe agrees to pay a civil fine to the United States Treasury in the 

amount of One Million Dollars ($1,000,000.00), which shall be payable in 

five (5) annual installments under the following terms and conditions: 

A. The first installment shall be paid eight (8) full months after the first 

Facility opens in the amount of Two Hundred Thousand dollars 

($200,000.00), unless the Tribe has remained in material compliance 

with this Agreement and the terms of probation during that period, in 

which case the fine and amount due shall be reduced to One 

Hundred Thousand Dollars ($100,000.00) and the amount of 

reduction shall be forthwith donated by the Tribe to a state 

accredited University or College within the State of Oklahoma, 

selected by the Tribe's governing Tribal Committee, for the 

establishment of a specialized program curriculum for the instruction 

of generally accepted professional accounting and auditing practices 

and standards andlor other gaming related curricula for Tribal 

gaming in the State of Oklahoma. 

B. The second installment shall be paid twelve (12) full months after 

the first installment in the amount of Two hundred Thousand Dollars 

($200,000.00), unless the Tribe has remained in material compliance 

with this Agreement and the terms of probation during the preceding 

twelve (12) month period, in which case the fine and amount due 

shall be reduced by One Hundred Thousand Dollars ($100,000.00) to 

One Hundred Thousand Dollars ($100,000.00) and the amount of 

reduction shall be forthwith donated by the Tribe to a state 

accredited University or College within the State of Oklahoma, 

selected by the Tribe's governing Tribal Committee, for the 

establishment or continued funding of a specialized program 

curriculum for the instruction of generally accepted professional 

accounting and auditing practices and standards andlor other gaming 

related curricula for Tribal gaming in the State of Oklahoma. 
C. The third installment shall be paid twelve (12) full months after the 

second installment in the amount of Two hundred Thousand Dollars 

(200,000.00), unless the Tribe has remained in material compliance 

with this Agreement and the terms of probation during the preceding 

twelve (12) month period, in which case the fine and amount due 

shall be fwther reduced by Seventy Five Thousand Dollars 

($1 00,000.00) to One Hundred Thousand Dollars ($100,000.00) and 

the amount of reduction shall be forthwith donated by the Tribe to a 

state accredited University or College within the State of Oklahoma, 

selected by the Tribe's governing Tribal Committee, for the 

establishment or continued funding of a specialized curriculum for 

the instruction of generally accepted professional accounting and 

auditing practices and standards andlor other gaming related 

curricula for Tribal gaming in the State of Oklahoma. 

D. The fourth installment shall be paid twelve (12) full months after the 

third installment in the amount of Two Hundred Thousand Dollars 

($200,000.00), unless the Tribe has remained in material compliance 

with this Agreement and the terms of probation during the preceding 

twelve (12) months, in which case the fine and amount due shall be 

further reduced by One Hundred Fifty Thousand Dollars 

($150,000.00) to Fifty Thousand dollars ($50,000.00). 

The fifth and final installment shall be paid twelve (12) full months 

after the fowrth installment in the amount of Two Hundred Thousand 

Dollars ($200,000.00), unless the Tribe has remained in substantial 

and material compliance with this Agreement and the terms of 

probation during the preceding twelve (12) months, in which case 

the fine and amount due shall be Mer reduced by One Hundred 

Seventy Five Thousand Dollars ($175,000.00) to Twenty Five 

Thousand dollars ($25,000.00). 

The Tribe shall prohibit Tribal Gaming Commission members fiom serving in 

any other elected Tribal office, except the ex officio non-voting member(s), or 

any other position or capacity that in fact or appearance could potentially 

cause their independence to be impaired or appear to be impaired. The 

legislative action creating and chartering the gaming regulatory body, 

establishing the scope of its authority, providing for the election or 

appointment of its commissioners and the methodology for its budgetary 

funding shall be provided to the NIGC at least thirty (30) days prior to the 

Tribe's desired reopening date of the first Facility. Prior to opening, the 

Chairman or his designee must approve the enabling legislation. Both parties 

herein acknowledge that this Additional Covenant has been completed prior to 

the execution of this Agreement. 

4. An independent certified public accountant shall be engaged by the Tribe on 

or before the opening date of each Facility and to pefiorm within sixty (60) 
days after actual opening of each Facility that "Agreed Upon Procedures" to 

verify that the Tribal Gaming Commission has established and implemented 

tribal internal control standards for that Facility and its gaming operations that 

satisfy 25 C.F.R. $542.3(c), except that, with regard to compliance by the 

Facilities, 25 C.F.R. §542.3(d)(2) shall control. Furthermore, the scope of the 

engagement shall also include such testing of the gaming operation's internal 

control systems to verify that all standards contained within the TICS and 25 

C.F.R. $542 requiring specific action by the gaming operation are satisfied, 

unless such testing and verification is adequately conducted by the Tribe's 

independent Tribal Gaming Commission to the NIGC's satisfaction. Both 

parties herein acknowledge that this Additional Covenant has been completed 

prior to the execution of this Agreement. 

Upon execution, a copy of the required engagement letters between the Tribe 

and the independent certified accountant shall be submitted to the NIGC 

Chairman. A copy of the respective "Agreed Upon Procedures" reports of 

findings for each Facility and gaming operation shall be submitted to the 

NIGC Chairman no later than ninety (90) days after the Tribe's actual 

reopening date of the Facility. Both parties herein acknowledge that this 

Additional Covenant has been completed prior to the execution of this 

Agreement. 

6. In accordance with 25 C.F.R $ 571.12, the Tribe agrees and commits to 

submit the Tonkawa Casino Facility's audited financial statements for the year 

ending December 31,2005 by April 30,2006. Likewise, in accordance with 

25 C.F.R. 4 572.3(f), the Tribe agrees and commits to submit the required 

"Agreed Upon Procedures" report of findings for the Tonkawa Casino Facility 

by April 30,2006. Prior to commencement of gaming operations at either the 

Tonkawa Casino Facility or the Native Lights Casino Facility pursuant to this 

Agreement, the Tribe will provide to the NIGC Chairman a copy of the 

executed letter of engagement with a certified public accounting firm to 

conduct the audit of the Facility's financial statements for the year ending 

December 31, 2006. Furthermore, in accordance with 25 C.F.R. 8 572.30, 

prior to commencement of gaming operations at either Facility pursuant to 

this Agreement, the Tribe will provide to the NIGC Chairman a copy of the 

executed letter of engagement with a certified public accounting firm to 

conduct an "Agreed Upon Procedures" within sixty (60) days after opening of 

each Facility to veri~ that the Facility is in compliance with 25 C.F.R. 542 

or a Tribally approved variance thereto that has received NIGC concurrence. 

The period subject to examination will be for the year ending December 3 1, 

2006. Both parties herein acknowledge that this Additional Covenant has 

been completed prior to the execution of this Agreement. 

7. In accordance with 25 C. F. R. Part 514, the Tribe shall submit a statement 

showing its assessable gross revenues at the Tonkawa Casino Facility for the 

previous year of 2005 accompanied by the fee payment required by the 

referenced regulation. The first required quarterly submission shall be filed 

with the NIGC no later than March 3 1, 2006, unless otherwise agreed by the 
NIGC. Furthermore, in conjunction therewith or within thirty (30) days of 

receipt of the Tonkawa Casino gaming operation's audited financial 

statements for the year 2005, the Tribe shall submit to the NIGC a copy of the 

reconciliation of the fee assessment calculation to its audited financial 

statements, as required by 25 C.F.R. 5 571.14. Both parties herein 

acknowledge that this Additional Covenant has been completed prior to the 

execution of this Agreement. 

If the Tribe or any of its Tribal entities hereafter fail to comply with this 

Agreement, the Chairman reserves the right to initiate an enforcement action 

as outlined under 25 C.F.R. 8 573.6, which may result in additional fines or 

closure of the Tonkawa Casino Facility and/or Native Lights Casino Facility. 

The Tribe agrees that all Key Employees and Primary Management Officials 

will be licensed as required by the Tonkawa Tribal Gaming Ordinance, the 

regulations of the Tonkawa Tribal Gaming Commission, the IGRA, and NIGC 

regulations. 

The Tribe agrees to adequately train all gaming employees at any Tonkawa 

tribal gaming operation in internal controls and all pertinent Bank Secrecy Act 

requirements. 

The Tribe also agrees to maintain a gaming machine inventory for any 

Tonkawa tribal gaming operation, which at a minimum shall include the 

manufacturer name, serial number, and game description. 

The Tribe agrees to establish a records retention policy for all Key Employee, 

Primary Management Official and vendor background investigations and 

licensing determination files of the Tribal Gaming Commission. 

The Tribe will notify the NIGC at least 90 days in advance of the construction 

of any gaming facility. 

The Tribe agrees that it will not open any future gaming facilities without first 

submitting its own written certification to the NIGC, and receiving written 

confirmation from the NIGC or the United States Department of the Interior, 

that such facility is located on Indian lands as that term is defined in IGRA. 

A signature produced by facsimile shall be deemed to be an original signature 

and shall be effective and binding for purposes of this Agreement. 

This Agreement constitutes the entire agreement between the Chairman and 

the Tribe and supersedes all prior verbal or written agreements and 

understandings between the parties related to the subject matter hereof. No 

warranties, representations, covenants, or agreements shall be binding upon 

any party except as set forth herein. Any modification or waiver of any term 

of this Agreement, including the modification or waiver of term, must be in 

writing and signed by all the parties.