12. In light of this imminent jeopardy, the Chairman is issuing this notice of
violation and temporary closure order. The imminent nature of the
jeopardy and violation necessitates the Chairman to move directly to an
enforcement action before issuing a letter of concern the Chukchansi Tribe
under 25 C.F.R. § 573.2(d).

Measures to Correct the Violation —~ Temporary Closure Order

To correct this substantial violation, Respondents shall comply with this
Temporary Closure Order.

Temporary Closure Order

Closure Order

Under the authority of 25 U.S.C. § 2713(b) and 25 C.F.R. §§ 573.4(a) and (b),
the Chairman gives notice that the Respondents are ordered to cease and
desist from all gaming activity in the Chukchansi Gold Resort & Casino.
This order is effective immediately. The Chairman may rescind the Temporary
Closure Order for good cause shown. 25 C.F.R. § 573.4(c)(3).

Expedited Review

Under 25 C.F.R. § 573.4(c), within seven days after service of this Order, any
party served with this Order may request, orally or in writing, informal expedited
review by the Chairman. The Chairman must complete such review within two
days after his receipt of a timely request. Within two days after the expedited
review provided by 25 C.F.R. § 573.4(c), the Chairman must decide whether to
continue the Order and must provide an explanation of the basis for the decision.

Fine: Submission of Information

The substantial violation cited above may additionally result in the assessment of
civil fines against the Respondents in an amount not to exceed $25,000 per
violation per day. Under 25 C.F.R. § 575.5(a), Respondents may submit written
information about the violation to the Chairman within 15 days after service of
this notice of violation (or such longer period as the Chairman may grant for good
cause). The Chairman shall consider any information submitted in determining
the facts surrounding the violation and the amount of the civil fine, if any.


Circumstances of Violation

1.

10.

11.

The Chukchansi Tribe is a federally recognized Indian nation with tribal
headquarters in Coarsegold, California.

The Chukchansi Tribe operates the Chukchansi Gold Resort & Casino in
Coarsegold, California, on land held in trust for its benefit by the United
States.

The Chukchansi Tribe has had an on-going internal governmental dispute
over its leadership.

On October 9, 2014, one faction of the Chukchansi Tribal government
forcibly asserted control over the Chukchansi Gold Resort & Casino,
disarming and handcuffing on-site security personnel.

Each faction’s gaming commission reports the other faction having
personnel who are carrying weapons within the Chukchansi Gold Resort
& Casino.

One faction’s gaming commission reports the other faction using an
electric stun gun on on-site security personnel.

Each faction’s gaming commission, along with local law enforcement,
reports that employees exited the Chukchansi Gold Resort & Casino the
evening of October 9, 2014, after a fire alarm. The majority of the
employees have not returned to work.

Members of separate factions remain in the Chukchansi Gold Resort &
Casino, each asserting authority over the facility.

As of October 9, 2014, according to the law enforcement officials and
each faction’s gaming commission, the situation remains tense and
volatile, creating genuine concerns for public health and safety.

Furthermore, imminent jeopardy exists because of the real and immediate
threat to human health and well-being, which if uncorrected, could result
in serious harm or death.

By operating the Chukchansi Gold Resort & Casino in a manner that
threatens public health and safety, Respondents have committed a
substantial violation of IGRA, 25 U.S.C. § 2710(b)(2)(E), NIGC
regulations, 25 C.F.R. § 573.4(a)(12), and the Chukchansi Tribe’s
approved Gaming Ordinance, No. 2010-22, §§ 5.14.1, 7.7.1, and 9.2.2.


I. Appeal

Whether or not any party seeks the informal expedited review of the Temporary
Closure Order described above, within 30 days after service of this NOV and
Temporary Closure Order, any party may appeal, under 25 C.F.R. part 584, by
submitting a notice of appeal to the National Indian Gaming Commission, c/o
Department of Interior, 1849 C Street N.W., Mailstop #1621, Washington, DC
20240. The appealing party, the appellant, has a right to assistance of counsel in
such an appeal. A notice of appeal must reference this NOV and Temporary
Closure Order.

Within ten days after filing a notice of appeal, the appellant must file with the
Commission a brief that states with particularity the relief desired and the grounds
in support and may include, when available, supporting evidence in the form of
affidavits. If the appellant wishes for a closed hearing, it must include, with the
brief, a request to do so and why. If the appellant wishes to present oral testimony
or witnesses at the hearing, it must include a request to do so with the brief. The
request to present oral testimony or witnesses must specify the names of proposed
witnesses and the general nature of their expected testimony. The appellant 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, under 25 C.F.R.
part 585.

Dated this JO of October, 2014

4 UML

lin O. Chaudhuri, Chairman (Acting)



NATIONAL INDIAN GAMING COMMISSION

NOTICE OF VIOLATION and TEMPORARY CLOSURE ORDER

NOV-14-03
TCO-14-02

Chairman (Agent for Service)

Picayune Rancheria of the Chukchansi Indians
46575-B Road 417

Coarsegold, CA 93614

Picayune Rancheria of the Chukchansi Indians Tribal Gaming Commission
Khammy Chhom, Executive Director

46575-B Road 417

Coarsegold, CA 93614

Giffen Tan, General Manager
Chukchansi Gold Resort & Casino
711 Lucky Lane

Coarsegold, CA 93614

Notification of Violation and Temporary Closure Order

In light of the emergency situation existing at the gaming facility of the Picayune
Rancheria of the Chukchansi Indians (Chukchansi Tribe), the Chukchansi Gold
Resort & Casino, located at located at 711 Lucky Lane, in Coarsegold, California,
off State Route 41, involving a volatile takeover, the Chairman of the National
Indian Gaming Commission (NIGC) gives notice that Respondents failed, and are
failing, to operate the Chukchansi Tribe’s casino in a manner that adequately
protects public health and safety. Thus, Respondents are in substantial violation
of the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. § 2710(b)(2)(E), NIGC
regulations, 25 C.F.R. § 573.4(a)(12), and the Chukchansi Tribe’s approved
Gaming Ordinance, No. 2010-22, §§ 5.14.1, 7.7.1, and 9.2.2.

As a consequence of such failure, under 25 U.S.C. §§ 2705 and 2713(b), the
Chairman gives notice that the Respondents are ordered to cease and desist
from all gaming activity in the Chukchansi Gold Resort & Casino. This
order is effective immediately. The Chairman may rescind the Temporary
Closure Order for good cause shown.


Authority

Under IGRA and NIGC regulations, the NIGC Chairman may issue a notice of
violation to any person for violations of any provision of IGRA, NIGC
regulations, or an approved tribal gaming ordinance or resolution. 25 U.S.C. §
2713(a); 25 C.F.R. § 573.3(a). Further, under IGRA, the NIGC Chairman may
issue an order of temporary closure of an Indian gaming operating for substantial
violation of IGRA, NIGC regulations, or an approved tribal ordinance. 25 U.S.C.
§§ 2705(a)(1) and 2713(b)(1). NIGC regulations also provide that
“[s]imultaneously with or subsequently to the issuance of a notice of violation ...,
the Chairman may issue an order of temporary closure of all or part of an Indian
gaming operation if one or more [] substantial violations are present.” 25 C.F.R. §
573.4(a).

Applicable Federal law, Tribal law, and Case law

1. IGRA requires that to lawfully operate Indian gaming, a tribe must have a
tribal gaming ordinance approved by the NIGC Chairman. 25 U.S.C. §§
25 U.S.C. 2710(b)(1)(B) and (d)(1)(A).

2. IGRA requires that the tribal ordinance provide that the tribe will maintain
and operate its gaming facilities in a manner that adequately protects
public health and safety. 25 U.S.C. § 2710(b)(2)(E).

3. NIGC regulations also mandate that the gaming ordinance provide that the
tribe shall maintain and operate a gaming facility in a manner that
adequately protects public health and safety. 25 C.F.R. §§ 522.4(b)(7) and
522.6(b).

4. The Chukchansi Tribe’s Gaming Ordinance, Resolution 2010-22, Section
5.14.1 states the tribal gaming commission may issue a facility license if it
determines the “[g]aming [facility . . . shall be operated in a manner that
adequately protects the environment and the public health and safety.” The
ordinance was approved by the NIGC Chairman on April 16, 2010.

5. The Chukchansi Tribe’s Gaming Ordinance, Resolution 2010-22, Section
7.7.1 directs that “[t]he Enterprise shall provide adequate security to
protect the public before, during, and after Gaming.”

6. The Chukchansi Tribe’s Gaming Ordinance, Resolution 2010-22, Section
9.2.2 directs that the tribal gaming commission shall promulgate rules and


10.

11.

12.

13.

regulations to “ensure the physical safety of Enterprise patrons and
Employees.”

Class II and III gaming operations are only lawful if conducted pursuant to
an ordinance that meets the requirements of IGRA, Section 2710(b). 25
USS.C. §§ 2710(b)(1)(B) and 2710(d)(1)(A)(ii).

NIGC regulations state that it is a substantial violation for a tribe’s gaming
operation to be maintained or operated in a manner that threatens public
health and safety, in violation of a tribal ordinance. 25 C.F.R. §
573.4(a)(12).

Further, NIGC’s interpretative rule, “Environment, Public Health and
Safety,” indicates that if a tribe fails to enforce public health and/or safety
standards covering gaming operations on Indian lands and the situation
presents imminent jeopardy to public health or safety, the Chairman may
proceed to enforcement. 67 Fed. Reg. 46,109, 46,112 (July 12, 2002).

Imminent jeopardy “exists where conditions are present that pose a real
and immediate threat ... to human health and well-being, which, if
uncorrected, could result in serious illness or death.” Id.

Failure to comply with any provision of IGRA, NIGC regulations, or an
approved tribal gaming ordinance or resolution is grounds for a notice of
violation. 25 U.S.C. § 2713(a); 25 C.F.R. § 573.3(a). Further, substantial
violations of IGRA, NIGC regulations, or an approved tribal ordinance are
grounds for a temporary closure order. 25 U.S.C. §§ 2705(a)(1) and
2713(b)(1).

The Tenth Circuit Court of Appeals has underscored the NIGC
Chairman’s authority to close entire gaming operations: “IGRA
unambiguously authorizes the NIGC Chairman to order the temporary
closure of entire gaming operations. In Section 2705(a)(1), the NIGC
Chairman is authorized to ‘issue orders of temporary closure of gaming
activities a provided in section 2713(b).’” United States v. Seminole
Nation of Oklahoma, 321 F.3d 939, 944-45 (10th Cir. 2002).

“TT]he NIGC Chairman is obligated to approve tribal ordinances which,
inter alia, provide for the protection of public health and safety at gaming
facilities. The NIGC Chairman is authorized to enforce such tribal
ordinances through the issuance of temporary closure orders. ...
Accordingly, when § 2710(b)(2)(E) and § 2713(b)(1) are read together, the
NIGC Chairman's authority to issue temporary closure orders clearly
includes the power to close entire gaming facilities.” Jd. at 945. (internal
citations omitted).