National Indian Gaming Commission 

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SETTLEMENT AGREEMENT 

SA-06-05 

INTRODUCTION 

This Settlement Agreement ("Agreement") is entered into by and between Mark 

Chino, President ofthe - -. Mescalero Apache Trii, a federally-recognized Indian tribe 

("Tribe") and Philip N. Hogen, the Chairman of the National Indian Gaming Commission 

("Chairman") relating to the matters contained in Notice of Violation No. NOV-06-05. 

RECITALS 

Whereas, the Tribe has conducted gaming on Indian lands at facilities named Inn 

of the Mountain Gods Resort and Casino and Casino Apache in Mescalero, New Mexico 

since approximately August, 1996; 

Whereas, the Chairman and the Tribe desire to resolve issues related to Notice of 

Violation No. NOV-06-05. 

Therefore, the Chairman and the Tribe have agreed to execute this Agreement and 

perform in accordance with the following covenants and conditions: 

TERMS OF SETTLEMENT 

1. This Agreement is entered into pursuant to 25 C.F.R. 5 575.6 (b) and shall be 

effective upon the signature of all parties. 

2. On January 3 1,2006, the NIGC issued Notice of Violation No. NOV-06-05 to the 

Tribe relating to the: 
a. failure to submit a timely annual audit report; and 

b. Inn of the Mountain Gods Resort and Casino and Casino Apache's 

untimely submissions of the quarterly statements and fee payments to the 

NIGC for the following quarters: 

Quarter: Due: Received: 

1st 2001 3/31/01 411 1/01 

Rather than contest the issues of the timeliness of the submission of the annual 

audit report and quarterly statements and fee payments, the Tnie agrees to the 

terms and conditions set forth in this Settlement Agreement. 

The Tribe agrees that it was required to timely submit an annual audit report of its 

gaming operations for the fiscal year ending April 30,2005 to the NIGC. 

The Tribe agrees that it did not timely submit to the NIGC an annual audit report 

for the fiscal year ending April 30,2005, as required by the Indian Gaming 

Regulatory Act ("IGRA") and NIGC regulations. 

The Tribe admits that the failure to submit an annual audit report in a timely 

fashion is a violation of IGRA and NIGC regulations. 

The Tribe agrees to submit its annual audit report for the fiscal year ending April 

30,2005 no later than April 30,2006. 
8. The Tribe hrther agrees to submit its annual audit report for the fiscal year ending 

April 30,2006 no later then August 29,2006. 

9. The Tribe agrees to pay a fine in the amount of Ten Thousand Dollars 

($10,000.00) for the audit report violation. Five Thousand Dollars ($5,000.00) of 

the fine will be paid on or before March 3 1,2006. The remaining Five Thousand 

Dollars ($5,000.00) will be suspended pending the submission of the annual audit 

report for the fiscal year ending April 30,2005 and timely submission of the 

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amp1 audif kport for the fiscal year ending April 30,2006. Upon submission of 

the annual audit report for the Inn of the Mountain Gods Resort and Casino and 

Casino Apache for the fiscal year: ending April 30,2005 and the timely 

submission of the annual audit report for the fiscal year ending April 30,2006, the 

Chairman will forgive the suspended Five Thousand Dollar ($5,000.00) fine. If 

the Tribe fails to submit the aforementioned audit report by such dates, the 

remaining Five Thousand Dollars ($5,000.00) of the fine will be paid on or before 

September 30,2006. 

lo. The Tribe agrees that it was required to timely submit quarterly statements and 

fee payments for each gaming operation to the NIGC. 

1 1 The Tribe agrees that it did not submit to the NIGC quarterly statements and fee 

payments as required by IGRA and NIGC regulations for Inn of the Mountain 

Gods Resort and Casino and Casino Apache for each of the following quarters: 

Quarter: Due: Received: 
2nd 2004 6/30/04 7/2/04 

12. The Tribe admits that failure to timely submit quarterly statements and fee 

payments is a violation of IGRA and NIGC regulations. 

13. The Tribe agrees to submit its quarterly statements and fee payments for each 

quarter of 2005 by April 30,2006. 

14. The Tribe hrther agrees to submit its 2006 quarterly statements and fee payments 

for Inn of the Mountain Gods Resort and Casino and Casino Apache no later than 

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March 3 1, June 30, September 30 and December 3 1,2006. 

15. The Tribe agrees to pay a fine in the amount of Ten Thousand Dollars 

($1 0,000.00) for the quarterly statement and fee payment violations. Five 

Thousand Dollars ($5,000.00) of the fine will be paid on or before March 3 I, 

2006. The remaining Five Thousand Dollars ($5,000.00) will be suspended 

pending the submission of the quarterly statements and fee payments for each 

quarter of 2005 and the timely submission of the quarterly statement and fee 

payment for the Inn of the Mountain Gods Resort and Casino and Casino Apache 

for the quarters ending March 3 1, June 30, September 30 and December 3 1,2006. 

Upon successful submission of the aforementioned quarterly statements and fee 

payments by such due dates, the Chairman will forgive the suspended Five 

Thousand Dollar ($5,000.00) fine. If the Tribe fails to submit the Inn of the 

Mountain Gods Resort and Casino and Casino Apache quarterly statements and 

fee payments for 2005 by March 3 1,2006 andlor faib to timely submit the 

quarterly statement and fee payment for the Inn of the Mountain Gods Resort and 

Casino and Casino Apache for the quarters ending March- 3 1, June 30, September 
30 and December 3 1,2006, the remaining Five Thousand Dollars ($5,000.00) of 

the fine will be paid on or before January 1,2007. 

16. The Chairman agrees upon execution of this Agreement to waive the right to 

impose any finther civil fine for Notice of Violation No. NOV-06-05 against the 

Tribe, unless the Tribe fails to comply with this Agreement. If the Tribe fails to 

comply with this Agreement, the Chairman reserves the right to initiate an 

enforcement action against the Inn of the Mountain Gods Resort and Casino and 

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Casino Apgdie as outlined under 25 C.F.R. 5 573.6. 

17. The Tribe agrees upon execution of this Agreement to waive its right, if any, to 

further review of Notice of Violation No. NOV-06-05, including all rights to 

appeal to the hll Comtnission as outlined in 25 C.F.R $577 et seq. and judicial 

review pursuant to 25 U.S.C. $ 2714. 

18. Subsequent to the parties' acceptance of this Agreement, the civil fine assessment 

set forth herein will become a Final Assessment Order of the Commission. 

ADDITIONAL COVENANTS 

1. 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 

both parties. 
2. The Tribe stipulates that the Notice of Violation shall be deemed a final order of 

the Commission and a final agency action pursuant to 25 C.F.R. 5 577.9(d). 

3. The Chairman and the Tribe expressly agree and acknowledge that time is of the 

essence in this Agreement. The recitals herein and above set shall be binding 

upon the parties, their agents, heirs, personal representatives, successors and 

assigns. 

4. A signature produced by facsimile shall be deemed to be an original signature and 

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shall be effeaive and binding for purpose of the Agreement. 

5. Acceptance of this Agreement is contingent 

Apache Triial Council. 

President Chairman 

Date Date