NOTICE OF PROPOSED CIVIL FINE ASSESSMENT 

Ref: CFA-05-02 

To: Tex Hall, Chairman 

Three Affiliated Tribes of the 

Fort Berthold Reservation 

404 Frontage Road 

New Town, ND 58763 

FAX: 701 -627-3805 

1. Under the authority of 25 U.S.C. $ 271 3 (a), of the Indian Gaming Regulatory Act 

(IGRA), and the regulations of the National Indian Gaming Commission (NIGC) at 

C.F.R. $ 575,), the Chairman of the NIGC hereby provides notice of his intent to assess a 

' I i~+. f civil fine against the Three Affiliated Tribes of the Fort Berthold Reservation, New 

Town, North Dakota (Respondent), for violations of 25 C.F.R. $5 5 14.1 (c) as set forth in 

detail in Notice of Violation No. NOV 05-02, issued on February 17,2005, a copy of 

which is attached hereto (Exhibit 1). NOV 05-02 was issued for failure to submit 

quarterly statements and fee payments in a timely manner for Four Bears Casino and 

Lodge. 

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, the 

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 did not submit any information under 

25 C.F.R. § 575.5 about the violation. 

Yll *jlt 4. The Chairman has considered the factors set forth in 25 C.F.R. $ 575.4, as follows: 
i. Economic benefit of noncompliance. Respondent has obtained a limited 

economic benefit from its failure to submit quarterly statements and fees in a 

timely fashion, resulting from its ability to collect interest on the unpaid fees. The 

submissions were received on January 26,2005,26 days after the December 3 1, 

2004, due date. 

. . 

11. Seriousness of the violation. NIGC operations are funded entirely fkom the 

annual fees it receives from gaming tribes; therefore, the prompt payment of such 

fees is of critical importance to the NIGC. The annual fees collected by the NIGC 

are based upon the quarterly worksheets submitted by Indian gaming operations. 

NIGC must set a fee rate sufficient to fund its annual budget, yet may not exceed 

the fee cap set by Congress. Thus, it is also imperative that the NIGC receive 

worksheets from the gaming operations in a timely manner so that the MGC is 

able to set accurate preliminary and final fee rates. 

. . 

11. Histow of violations. The Chairman has not issued any Notice of Violations, 

Civil Fine Assessments, or Closure Orders to Respondent within the last five 

years. 

... 

111. Negligence or willfulness. The Tribe was aware of the quarterly statement and 

fee payment due date, yet failed to turn in the submissions for the quarter ending 

December 3 1,2004, in a timely manner. On December 7,2004, the NIGC issued 

a warning notice to the Tribe regarding its failure to meet payment and 

submission deadlines for the quarterly statement and fee payments and advising 

that the NIGC might initiate enforcement action to address the violations (Exhibit 

2). Respondent's late submission of the quarterly statements and fee payments for 

Four Bears Casino and Lodge for the quarter ending December 3 1,2004, was 

therefore willful rather than negligent. 

iv. Good faith. Respondent submitted the quarterly statement and fee payment in an 

untimely manner, but within 26 days of the due date. 

5. WHEREFORE, the Chairman, having carehlly reviewed the above factors, has 

determined that a fine in the amount of $2,000 (two thousand dollars) is assessed on the 

Respondent for failure to submit a timely quarterly statement and fee payment for Four 

Bears Casino and Lodge for the quarter ending December 3 1,2004. 

6. Interest shall be assessed at rates established from time to time by the Secretary of the 

Treasury on amounts remaining unpaid after their due date. 3 1 U.S.C. § 37 17. 

7. The above-described amount represent an appropriate balancing of the other factors cited 

above. 

11 I%,,& 

8. Pursuant to 25 C.F.R. 9 577.3, 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 

Dated this day of April 2005. 

Andrea Lord 

Staff Attorney 

202-632-7003