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CERTIFICATE OF SERVICE

T do hereby certify that I have this 4 day of August 2000, transmitted via
facsimile, Notice of Proposed Civil Fine Assessment, CFA-00-09, issued to the
Confederated Tribes of Siletz Indians of Oregon, to the following person(s):

Delores Pigsley, Chairman

Confederated Tribes of Siletz Indians of Oregon
PO Box 549

Siletz, Oregon 97380

Service of Process Agent
Brenda Bremner, General Manager
Confederated Tribes of Siletz Indians of Oregon

PO Box 549
Siletz, Oregon 97380

echa M  Dacea(sisnatare
uate M. Menderes (Print)

on behalf of the
National Indian Gaming Commission

NATIONAL INDIAN GAMING COMMISSION
1441 L Street, N.W., Suite 9100

Washington, DC 20005

(202) 632-7006


ational SJudian Gaming Commission

NOTICE OF PROPOSED CIVIL FINE ASSESSMENT

Ref: CFA-00-09

To: Delores Pigsley, Chairman
Confederated Tribes of Siletz Indians of Oregon
P.O. Box 549
Siletz, Oregon 97380

Agent for Service of Process:

Brenda Bremner, General Manager
Confederated Tribes of Siletz Indians of Oregon
P.O. Box 549

Siletz, Oregon 97380

1. Under the authority of 25 U.S.C. § 2713 (a) and 25 C.F.R. § 575, the Chairman of
the National Indian Gaming Commission (NIGC) hereby provides notice of his
intent to assess a civil fine against the Confederated Tribes of Siletz Indians of
Oregon (Respondent) for violations of 25 C.F.R. § 522.4(b)(2); Section 8 of the
Tribal-State Compact; Appendix A, Sections I(A)(2)(b) and II(C)(1)(g) of the
Tribal-State Compact; 25 U.S.C. § 2701(b)(2)(B); and 25 U.S.C § 2710(d)(1)(C)
as set forth in detail in Notice of Violation No. NOV-00-09, issued on June 15,
2000, which concludes that the award of complimentary items for personal use is
not an authorized use of net revenues and the lack of controls implemented to
regulate the award of complimentary items fails to safeguard the gaming assets.

2. Pursuant to 25 U.S.C. § 2713 (a) and 25 C.F.R. § 575.4, the Chairman of the
NIGC may assess a civil fine, not to exceed $25,000 per violation, against a tribe,
management contractor, or individual operating Indian gaming for each violation
cited in a notice of violation issued under 25 C.F.R. § 573.3. If noncompliance
continues for more than one day, the Chairman may treat each daily illegal act or
omission as a separate violation. 25 C.F.R. § 575.4 (a)(2).

3. The NIGC regulations at 25 C.F.R. § 575.5 provide that, within 15 days after
service of a notice of violation, or such longer period as the Chairman may grant
for good cause, Respondent may submit written information about the violation.
The Chairman shall consider any information so submitted in determining the
facts surrounding the violation and the amount of the civil fine. Respondent
submitted information to the NIGC on July 14, 2000.


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4. This violation encompasses two distinct types of conduct and thus two distinct
threats to the integrity of tribal gaming. The first activity is the wrongful
appropriation of tribal gaming revenue or assets for the personal use of individual
tribal members. This violation is most serious. The second activity is an
accounting problem; it is simply the use of tribal gaming revenue for what may
otherwise be legitimate governmental purposes but which should not be counted
as gaming operation expenses. The Chairman has considered the factors
prescribed in 25 C.F.R. § 575.4, for each of these activities, as follows:

i.

ii.

iii.

iv.

Economic benefit of noncompliance. Individuals have benefited by
their personal use of tribal gaming revenues. Individual Tribal
Council members benefited economically in the amount of
approximately $18,000. To the extent complimentary items were
charged to the Tribal Council for bona fide tribal government
expenses, the Tribal Council did not benefit from noncompliance.

Seriousness of the violations. The appropriation of tribal gaming
revenues for personal use is a serious threat to the integrity of tribal
gaming. First, such activity creates a serious risk that a member will
exploit the tribe’s gaming operation in his or her own self-interest.
Second, IGRA provides that tribal governments, not individual tribal
members, are to determine the appropriate use of tribal gaming
revenues. Such activities undermine the right of the tribal government
to make these decisions about tribal assets. As for the second activity
that the violation addresses, that is, the failure of the Tribal Council to
assure that its activities are properly documented and accounted for as
tribal government activities and expenditures, rather than gaming
operation expenses, the violation is less serious. It does, however,
indicate a systemic problem that requires revision.

History of violations. NOV-97-A-091 was settled on December 16,
1997. The NOV concluded that the Respondent failed to submit an
audit report for the Respondent’s bingo facility.

Negligence or willfulness. The Tribal Council has given no indication
that it intends to place any real limit on the issuance of complimentary
items for the Tribal Council members or Board of Directors. This

failure to implement a system to prevent abuse constitutes negligence.

Good faith. After being notified of the problems associated with the
appropriation of complimentary items by individual Tribal Council
members, Respondent adopted a complimentary policy on February
11, 2000. In response to NOV-00-09, Respondent has further
attempted to refine its system for accounting of complimentary items.
The Siletz Tribal Gaming Commission is drafting regulations to cover
the audit of complimentary items. The Board of Directors has directed


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the Gaming Operation to revise its categorization of complimentary
items. However, that direction apparently allows for complimentary
items to the Tribal Council members in contradiction of its February
11, 2000, complimentary policy. See July 14, 2000, Response to
Paragraph 4. Accordingly, though incomplete, the Respondent has
made some good faith efforts to rectify the circumstances that allowed
the violation to arise.

WHEREFORE, the Chairman, having carefully reviewed the above factors, has
determined that a fine in the amount of $10,000 (ten thousand dollars) is assessed on the
Respondent for allowing individuals to use tribal game revenues for personal use, for
accounting for Tribal Council expenditures as gaming operating expenses, and for failing
to establish controls that safeguard the assets while assuring that functions are properly
segregated. This above-described amount represents an appropriate balancing of the
factors cited above.

Pursuant to 25 C.F.R. § 577.3, within 30 (thirty) days after service of this Notice of
Proposed Civil Fine Assessment, Respondent may appeal the proposed fine to the full
Commission by submitting a notice of appeal to the National Indian Gaming
Commission, 1441 L Street, NW, Suite 9100, Washington, DC 20005. Respondent has a
right to assistance of counsel in such an appeal. A notice of appeal must identify this
Notice of Proposed Civil Fine Assessment. Within ten (10) days after filing a notice of
appeal, Respondent must file with the Commission a supplemental statement that sets
forth with particularity the relief desired and the grounds therefore and that includes,
when available, supporting evidence in the form of affidavits. If Respondent wishes to
present oral testimony or witnesses at the hearing, Respondent must include a request to
do so with the supplemental statement. The request to present oral testimony or
witnesses must specify the names of proposed witnesses and the general nature of their
expected testimony, and whether a closed hearing is requested and why. Respondent
may waive its right to an oral hearing and instead elect to have the matter determined by
the Commission solely on the basis of written submissions.

For further information contact Penny Coleman, Deputy General Counsel, or Danna R.
Jackson, Staff Attorney, at (202) 632-7003.

Dated this 9th day of August 2000.

Weorbai le)

Montie R. Deer
Chairman