On October 22, 2001, the Nation entered into an Exclusivity Agreement in which K & D agreed to help the Nation find financing for a casino in or near Tulsa and to give the Nation written proof of a financing commitment within six months. In exchange the Nation agreed to negotiate exclusively with K & D for management and development of the planned casino. The model for the arrangement was to be the Nation and the Mille Lacs Band of Ojibwe, except that K & D agreed to reduce its fee to 2.5% of net revenues for a period of five years.

An essential element of the agreement was the ability of K & D to obtain financing for the casino project. In 2001, Indian Gaming in Oklahoma was still in its infancy. Ultimately, K & D negotiated and executed a Letter of Intent with Multimedia Games. The Letter of Intent provided that Multimedia would lend K & D $5.26 million to construct a casino for the Nation. In return, Multimedia would receive preferential placement for gaming machines leased to the Nation.

Soon thereafter, the Nation determined that it wished to enter into a development contract with K & D, rather than a management contract, due to the length of time that it would ordinarily take to obtain NIGC approval of a management contract. A draft Memorandum of Understanding (MOU) was drafted which was designed to approximate 25% of net revenues, but negotiations stalled when Tribal Council Elections were held in June 2002.

When the new Tribal Council took office, Tribal Council members indicated that the Nation was interested in considering other developers to develop the North Tulsa facility. K & D objected and, after several meetings over the course of five months, the Nation ultimately concluded that it was legally obligated to work with K & D under the 2001 Exclusivity Agreement. Both parties ultimately agreed to an amendment to the 2001 agreement which reaffirmed K & D's right to develop casinos in other potential locations in Oklahoma and Kansas.

On June 6th, 2003, K & D and the Nation entered into a Development Agreement and a Consulting Agreement. The following month, on July 16th 2003, the Nation's attorney, Terry Mason Moore, rendered an opinion that the agreements were valid and binding were enforceable against the Nation, did not need to be approved by the NIGC, and were not management contracts. Under these agreements, K & D was to develop two casinos for the Nation, "Sand Springs" and "North Tulsa." The Sand Springs casino was to be developed first.

K&D and Mega Bingo, Inc. (a wholly-owned subsidiary of Multimedia Games) formed a limited liability company, Oklahoma Gaming Development Company (OGD) to serve as the lender for the Nation. In a Construction Loan Agreement and two separate Promissory Notes, OGD agreed to loan a total of $11.0 Million (%5.5 Million for each casino) to the Nation at an interest rate of prime plus 1%, in addition to a "participation fee" of 8% of the gross revenues of the casinos for five years.

When the financing was in place, the Nation sent the 2003 agreements to NIGC on December 15, 2003, asking the Commission to confirm that the agreements did not constitute management contracts under IGRA. On March 19, 2004, the Nation's new attorney, Wilson Pipestem, issued an opinion that the North Tulsa agreements were valid and binding enforceable against the Nation, did not need to be approved by the NIGC and were not management contracts. in May 2004, the parties met with NIGC Acting General Counsel, Penny Coleman, to discuss the NIGC's review of the 2003 agreements. On May 13, 2004 Ms. Coleman wrote to the parties to say that the NIGC review was not yet complete, but that she had concerns about the Agreements, possibly giving Mega Bingo and K & D too much control over gaming operations. She also noted that the same terms of the agreement suggested control " raise our concerns about whether the Nation possesses the sole proprietary interest in the gaming operation"

In response to Ms. Coleman's letter, the Nation, Mega Bingo, and K & D renegotiated their agreements and amended them substantially, executing the agreements on July 21, 2004. The Sand Springs Casino opened on the same date the agreements were executed. Mega Bingo and K & D dissolved OGD. In addition, K & D entered into Amended and Restated Consulting and Development Agreements with the Nation (the "2004 Agreements"). The amendments to the Development Agreement clarified that the Agreement would cover only pre-opening services provided by K & D to the Nation for both casinos and would not include any post-operating services to be provided by K & D. The amendments also changed the compensation to K & D so that the development fee was based on a percentage of gross revenues (7% for five years) rather than 10% of projected costs, up to a minimum fee of $20.144 Million. Although the development fee was raised, K & D's overall compensation went down significantly because it gave up the participation fees that it would have earned as a lender (8% of gross revenues for five years with no cap).

The amendments to the Consulting Agreement shortened the term to two years for each facility, at which point either side could voluntarily terminate the agreement, with a maximum term of five years fir each facility if neither side terminated earlier. In addition, consulting services were to be provided only as and when requested by the Nation, and the consulting fee was to be based on a daily rate rather than a monthly rate.

Before executing the Amended and Restated Agreements, the Osage Tribal Council enacted Tribal Council Resolution 31-385 (the "approving resolution"). In that resolution the Tribal Council approved the 2004 Agreements and certified that no other tribal entity or individual was required to approve or consent to the Agreements. Shortly after the 2004 Agreements were executed, Mr. Wilson Pipestem, who represented the Nation during the renegotiations, delivered an opinion to those Agreements in a document dated July 23, 2004, providing that:

• the 2003 Agreements constituted valid and binding agreements of the Nation, enforceable against the Nation and in accordance with their terms;
• all authorizations, approvals, consents of any state, federal or tribal governmental authority that were required in connection with the "execution, delivery, performance or enforcement of the [Agreements] that ha[d] obtained"; and,
• none of the Agreements, "Individually, or in any combination, constitutes a 'management contract' or an agreement that is a 'collateral agreement' to a management contract relating to a gaming activity regulated by IRGA."

A few days later, Mr. Pipestem submitted the agreements to NIGC requesting that the NIGC issue an advisory opinion that the 2004 Agreements did not, individually or collectively constitute management contracts.

On November 2, 2004, Penny Coleman sent a letter to the parties, stating that she could not say that the contracts did not constitute management contracts and that she was "concerned about" the sole-proprietary interest requirement. The letter did not reach any conclusions regarding either if these issues nor did it threaten enforcement actions against the Nation of K & D.

After receiving Ms. Coleman's letter, the Nation asked K & D to respond to NIGC. K & D asked the Nation to join in the submission to the NIGC, but the evidence does not reveal that the Nation joined in the submission.

On December 10, 2004, K & D submitted its response letter to NIGC which provided additional factual information about the services provided to the Nation, the history of the parties' relationship, and the context for the development fee. NIGC did not respond to K & D's submission. However the NIGC did communicate with the Nation between January and June 2005.

The North Tulsa Casino opened to the public on August 3, 2005. Shortly thereafter, on August 11, 2005, both K & D and the Nation received letters from the NIGC, advising them that the Commission had commenced an investigation into the management of the Nation's Hominy, Pawhuska, Sand Springs, and North Tulsa Casinos. The NIGC also requested numerous documents from both parties. It appears that the investigation sought to determine who was actually managing the Nation's casinos. The investigation appeared to be entirely separate from the NIGC's review of the Agreements between K & D and the Nation. Indeed, K & D had not provided any consulting services to the Sand Springs Casino since February 2005.

At the time the NIGC's management investigation was commenced, the North Tulsa Casino had been open to the public for only eight days. The evidence revealed that K & D provided consulting services during that period of time at the request of David Hunter, the CEO of the Nation's gaming facilities. No evidence was presented that K & D managed the facility during those eight days.

The evidence submitted established that some time in the summer of 2005, the CFO for the Nation's gaming enterprise from January 2005 through July 2005 became a confidential informant to the NIGC, claiming, among other things, that K & D was managing the Sands Spring Casino. Shortly after learning that the NIGC had commenced an investigation into the management of the Nation's casinos, the Nation sent a letter dated August 18, 2005, to K & D stating that the Nation would no longer be requesting any consulting services under the Consulting Agreement. The letter also directed K & D not to enter the Nation's gaming facilities and not to discuss the NIGC Investigation with any Nation official or employee outside the presence of the Nation's legal counsel. As a result, no evidence was presented that K & D has entered any of the Nation's casinos since receiving the August 18, 2005, letter.

On August 24, 2005, the Nation's Tribal Council convened an Executive Session upon the close of its regular public meeting. During the Executive Session the Tribal Council asked the Tribal Gaming Commission to examine the agreements between K & D and the Nation. The Nation also gave the Tribal Gaming Commission copies of all documents the Nation had submitted to the NIGC in response to the management investigation.

The evidence revealed that K & D was unaware that the Tribal Gaming Commission was investigating its agreements with the Nation. Nor did the Nation inform K & D that it had referred its Agreements with K & D to the Tribal Gaming Commission, despite the fact that the 2004 Developmental Agreement required the Nation to notify K & D (in writing) of and legal proceeding or investigation "relating in any manner to this Development Agreement."

The Tribal Gaming Commission consisted of one person, Mr. Lawrence Supernaw. On May 1, 2006, Mr. Supernaw issued "Determinations and Orders of the Commission" regarding the 2004 Agreement and K & D's gaming license. Mr. Supernaw did not notify K & D of the Tribal Gaming Commission's decision; rather, Chief Gray and the Chairman of the Gaming Enterprise Board sent a letter to K & D dated May 8, 2006, enclosing the decision. For reasons unknown, K & D did not receive the letter until nearly ten days later.

The Tribal Gaming Commission's decision concluded that the 2004 Agreements were management contracts and violated the sole-proprietary-interest requirement. The decision also:

• offered that the Gaming Enterprise Board, the entity to which the Nation delegated responsibility for running the casinos provide a copy of its determination to the NIGC;
• suspended K & D's travel gaming licenses; and,
• ordered that the agreements giving K & D a "proprietary interest" in the Nation's gaming facilities "be held in abeyance pending concurrence in this determination by the NIGC."

Several days after the decision of the Tribal Gaming Commission, Mr. Supernaw reversed his decision to suspend K & D's gaming licenses. This was apparently due to the fact that because K & D was no longer providing services to the Nation, K & D had not renewed its gaming licenses and they had, therefore expired. Mr. Supernaw nonetheless ordered K & D not to apply for gaming licenses "unless and until such time as the Chairman of the NIGC approves, disapproves or otherwise allows the parties to amend the Agreement so as to remove all legal deficits including those provisions offending the statutory requirement that the Osage Tribe shall have sole proprietary interest in the Osage Tribal Gaming."

In an attempt to preserve its rights, K & D appealed the decisions of the Tribal Gaming Commission to the Osage Tribal Court. The Commission moved to dismiss K & D's Petition arguing that his decision was final and non-reviewable. As of the date of the arbitration, no hearing date had been set and no action had been taken.

When K & D did not receive development fee payments for the month of April 2006, it terminated the 2004 Development Agreement on July 17, 2006, arguing that the entire development fee was now due and payable. On July 18, 2006, K & D commenced these arbitration proceedings.

On October 5, 2006, Jo-Ann Shyloski, a Senior Staff Attorney at the NIGC, issues another advisory letter regarding the 2004 Agreements. Ms. Shyloski stated that she was "not prepared to conclude that the contracts do not constitute a management contract and that matter remains under review." She opined, however, that the 2004 Development Agreement gave K & D a proprietary interest in the Nation's casinos because the development fee was disproportionate to the services provided. She stated that "K & D's proprietary interest in the Tribe's gaming activity derives from the excessive amount of revenue it will be paid from the Tribe's gaming facility relative to the services provided by K & D." She asserted that, typically, development fees are between 2%-5% of project costs. She provided no regulatory citation or case law to support her opinion.

After taking into account all factors deemed relevant by the panel, including the provisions of NIGRA, the actions of NIGC, the actions of the Osage Nation Tribal Gaming Commission, the agreement of the parties as finally negotiated in 2004, the services performed and risks undertaken by K & D, the panel concludes that a reasonable development fee reflecting fair compensation for services performed is $15,000,000.00, and that a fee in that amount is not in violation of the provisions of NIGRA prohibiting a tribe from granting a proprietary interest in a gaming operation. From such fee there must be deducted the following sums: $7,209,314.24 already paid by the Osage Nation; by an agreement of the parties the sum of $676,935.87 previously charged and paid for an independent contractor pre-opening services, resulting in a net amount of $7,113,749.89.

IV. CONCLUSIONS OF LAW:

1. The 2004 Development Agreement between the parties must be construed and applied so as to be in conformity with the provisions of NIGRA, as is required by law and as is provided in the terms of the Agreement.

2. The contract between the parties and the claims asserted herein are subject to arbitration under applicable provisions of the Agreement between the parties.

3. This contract dispute, including the issues of whether the 2004 Development Agreement constitutes a "management contract" or grants a "proprietary interest" in the Nation's Casinos to K & D in violation of the Indian Gaming Regulatory Act, 25 U.S.C §2701, et seq. ("IGRA"), is arbitral under §11.2 of the Agreement.

4. Like a federal or state court hearing a contract dispute, the Panel has jurisdiction to interpret the laws governing the 2004 Development Agreement, including IGRA. See e.g. Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 26 (1991)(It is by now clear that [federal] statutory claims may be the subject of an arbitration agreement, enforceable pursuant to the [Federal Arbitration Act].")

5. The 2004 Development Agreement is not a "management contract" or a "collateral agreement" to a management contract that requires the approval of the Chairman of the National Indian Gaming Commission (NIGC) under 25 U.S.C §§2710(d)(9) or 2711 or 35 C.F.R. Part 533 because it does not give K & D the right to manage any part of the Nation's gaming operations once they are open to the public for gaming.

6. By its terms, the 2004 Development Agreement did not give K & D the right to possess, use, or convey the Nation's gaming activities or operations at Sand Springs or North Tulsa.

7. K & D fully performed its duties and responsibilities under the 2004 Development Agreement with respect to project development.

8. An award to K & D of $7,113,749.89 as the balance due, after deductions, on a development fee of $15,000,000.00 for the services of K & D a proprietary in the gaming operations, and by making payment of this Interim Award the Osage Nation is in compliance with the terms of NIGRA and within the guidance of NIGC, as construed and applied by the Panel.

V. AWARDS & ORDERS:

1. The Nation must pay K & D the sum of $7,113,749.89 in damages plus a statutory interest in accordance with Okla. Stat. Tit. 12 § 727.1, which will begin to accrue on the date of this Award.

2. The Nation must pay K & D its reasonable attorney's fees and costs incurred herein.

3. By Friday, June 22, 2007, counsel for K & D must submit a statement of fees and costs for this arbitration that includes the number of hours worked, a description of the work done, and the hourly fees of the persons performing the work. The statement must also include all costs charged to K & D arising out of these arbitration proceedings. Counsel must serve a copy of the statement on counsel for the Nation.

4. By Friday, July 13, 2007 the Nation must submit any objections it has to the statement of fees and costs filed by K & D.

5. By Friday, July 27, 2007 K & D must file any reply it has to the Nation's objections to K & D's statement of fees and costs.

6. The Panel will issue a Final Award regarding the amount of attorneys' fees and costs to be awarded to K & D by Monday, August 27, 2007.

this Award is in full settlement of all claims and counterclaims submitted to this Arbitration. All claims not expressly granted herein are hereby denied.

This award may be executed in any number of counterparts, each of which shall be deemed an original, and all of which shall constitute together one and the same instrument.

Here we go again! This sounds like a few people ramrodding this plan through like they did the constitution. We have money so let's spend a million or so to do a twenty five year plan. The past few years the Osage government couldn't figure out what to do next week. Now they are wanting to put together a twenty five year strategic plan?? They want Osage members input?? We don't think so. They probably already have the plan well on its way to completion.

What is even more ridiculous is the time frame. If you are a student of how our government works, you are aware that each new council(now congress) wants to change what the last group did. Just look at the 30th and 31st councils. That is just the way it is in Indian Country. No way will a plan covering 25 years ever work, unless these people think they are going to be in office the next twenty five years.

A more sensible plan, and less costly plan, would be a five year plan. Please let these people know what you think about their ideas. It won't help but at least you will be able to say "I told you so" when it fails. Don't sit back and not attend the meetings thinking other members will be there. Don't be sold down the river by some smooth talking individuals.

Below is a link to the U.S. Courts decision in the trust lawsuits that were filed by the 30th Tribal Council back in 1999. From what we can tell this includes the $100,000,000 Highest Posted Price lawsuit and the $2.0 billion Mismanagement of Trust Assets suit. Now all we have to do is wait to see if the tribe and the BIA can agree on a number, or formula, to determine the amount that will be paid. I'm sure it will be far less than the numbers asked for in the two lawsuits. Of course the BIA will appeal this decision and keep this suit tied up for years to come.

I think we need to give a big thank you to the 30th Council for bringing these suits in the first place.

http://www.uscfc.uscourts.gov/2006.htm

July 26, 2006

It seems that the new Congress of the Osage Nation hasn't learned a lesson from the past. They were elected on the promise that things were going to change and the new government would be transparent. Well, they have certainly changed things by voting themselves a $56,000 dollar salary plus a $750 dollar a month stipend for incidentals. There is no amount of reasoning that can justifiy that kind of money. When you give them the ability to write their own checks, that is what you will get. One explanation of the $750 monthly stipend says that it goes for health insurance, cellphones and gas mileage. I would bet that a lot of people wished they had that sweet deal. Tribal employees have a deduction from their salaries for health insurance. Tribal employees don't have tribally paid gas mileage and cellphones either. The new Congress may work longer hours than the specified sessions in the constitution but by how much? If they work eight hour days 12 months out of the year, they are still being paid more than any council before them. I haven't heard one member of the new congress complain. Kind of makes you wish that you had run for congress doesn't it?

What is going on?

June 30, 2006

The tribal website is not being updated. The last update was June 6, 2006. This is not a good sign as to the "smooth transition" of the current government and the new government that takes office on July 1, 2006. If they can't keep information flowing during this period, what do we as Osages have to look forward to in the future? We believe you are about to see an "Osage fire drill" that will boggle the mind. Too much secrecy in the last council that will not be available to the new congress. This should be fun to watch as it unfolds over the next few months.

There are some good people on the new congress and minerals council that should be given a chance. We would hope that the congress tackles the gaming debacle head on. Since gaming pays for most of the things going on in the Osage it would be only right that they figure out "where the money is." Their salaries will depend on it. That brings up an interesting point. What will THEY set their salaries at when they take office. Must be nice to determine your own pay.

We will be following this closely over the next few months.

Election day in Pawhuska was a busy and festive place. Camps set up all over the park area. Voting was very orderly and efficient, unlike all of the preceeding actions like wrong ballots, snafus in mailing and leaving out a paragraph in the constitution and then adding it back in after the referendum. Whether you like them or not, below is your government for the next four(and in some cases six) years.

Osage Candidates Elected to Office on June 5, 2006 by Category and Ballot Selection:

Principal Chief:

4) Jim Roan Gray
http://www.jimgray06.com
grayforprincipalchief@yahoo.com
P.O. Box 362
Pawhuska, OK 74056

Assistant Principal Chief:

2) John D. Red Eagle
http://www.johnredeagle.com/index.htm
johndredeagle@aol.com
joredeagle@aol.com
P.O. Box 834
Pawhuska, OK 74056

6 Year Congressional Seat:

6) Eddy Red Eagle, Jr.
http://www.redeagleconcepts.com
eddyredeagle@gmail.com

10) Mark J. Simms
(918) 336-6814
1111 S. Osage
Bartlesville, OK 74003

11) Anthony Shackleford
http://www.electanthonyshackelford.com
ashack62@yahoo.com
(918) 724-3732
Fax: (918) 287-1815
P.O. Box 1344
Pawhuska, OK 74056

12) Shannon L. Edwards
sedwards@monnethayes.com
akiah2@sbcglobal.net
(405) 850-6377
120 N. Robinson
Ste. 1719
Oklahoma City, OK 73102

14) Archie Mason
http://www.electarchiemason.com
archie@electarchiemason.com
(918) 810-4291
P.O. Box 1327
Pawhuska, OK 74056-1327

17) Jerri Jean Branstetter
jbranstetter@osagetribe.org
P.O. Box 97
Wynona, OK 74084

4 Year Congressional Seat:

4) William "Kugee" Supernaw
supernaw@flash.net
1 (888) 720-1967
P.O. Box 216
Skiatook, OK 74070

8) Debbie Walker Littleton
http://www.votefordeb.com
jimdeblittleton@msn.com
1 (800) 332-1546
106 Wah-Zha-Zhe
Pawhuska, OK 74056

12) Douglas Clair Revard
*(580) 762-1600
805 Edgewood Dr.
Ponca City, OK 74604

15) Faren Revard Anderson
http://www.votefaren.com
revard99@hotmail.com
(918) 691-0889
P.O. Box 1568
Pawhuska, OK 74056

18) Raymond W. Red Corn
http://www.redcorn.com/raymondhome.htm
ray@redcorn.com
420 E. 6th Street
Pawhuska, OK 74056
Cell: (918) 287-7400
Office: (800) 280-9745

19) Mark Freeman, Jr.
mfreeman@osagetribe.org
(918) 287-1550
P.O. Box 1300
Pawhuska, OK 74056

Minerals Council:

1) Talee Redcorn
tkredcorn@yahoo.com
*(918) 287-9174

3) Jewell Purcell
jpurcell@osagetribe.com
jewellforcouncil@msn.com

4) Robert E. Martin
law@eliasandhjelm.com
(918) 599-9090
717 S. Houston
Suite 300
Tulsa, OK 74127

5) Cynthia J. Boone
tom@cowboy.net
(918) 287-2920
Route 1
Box 67
Pawhuska, OK 74056

11) Kenneth Bighorse
kbighorse@osagetribe.org

13) John Henry Mashunkashey
Information Unavailable.

15) David Earl Dubler
ddubler@valornet.com
918-355-1065
3614 North Ironwood Place
Broken Arrow, OK 74012

16) Kathryn Red Corn Lynn
krcl2006@hotmail.com
Work: (918) 287-5441
P.O. Box 822
Pawhuska, OK 74056

*Please be advised that the phone numbers listed were found via a telephone search on the internet. We make no representations that the numbers are accurate for the candidates listed.

Osage Election Notification Timeline in 2006:

March 16-
Three new Tribal Council Resolutions arrive via individual e-mail to us as to the OGRC handling the election, approval of the new ratified Constitution, and the Chief Gray signed Membership Card Eligibility Requirement to vote in the Osage election all signed on the 15th day of March. Last resolution states that Gray card is required to vote in the election but does not specify which one, that is, Congressional/Executive (C/E) or the Mineral Council. No official Osage Tribal notification is published as to these resolutions or their implications in regard to the June election.

March 20-
Tribal OGRC website publishes the candidacy form and candidate information. Filing dates are listed as March 10-April 10 or March 15-April 10, 2006. Requires "membership card" to file for candidacy.

March 21-
Osage Candidacy forms are published to the Osage Shareholders Association (OSA) website.

March 22-
First notification on OSA Message Board that a Gray Membership Card is required to vote in the Congressional/Executive election.
Red Alert e-mail sent out about the Gray Membership Card required for the C/E election and to file for candidacy.

March 23-
Red Alert e-mail sent out about the Mineral Council Election with info. on Weyl/Tolson and absentee ballot info. available via phone call as of the 27th of March or afterward. (We were informed by phone that we would not have to send in an absentee ballot request for the Mineral Council Election if we had previously sent one in for the prior two elections [Referendum #1 and the Constitutional Referendum]. In regard to the C/E election, no absentee ballot request was required if one had already been sent in for the previous elections).

March 24-
C/E election voting criteria, absentee ballot information, Osage List of Qualified Voters, and Election notice of Osage officials finally appear as links on the OGRC web site. Nothing about the Mineral Board Election is published on the main tribal web site or on that of the OGRC.

March 27-
Sent in online form to OGRC telling them that the link to the request for Absentee Ballot PDF was broken and the form could not be accessed from their web site.

March 29-
Request for Absentee Ballot PDF has been uploaded to the OGRC web site but is the incorrect form as it states, "This form must be received no later than February 19, 2006."

March 30-
Called Jennifer at the OGRC to let her know about the wrong Request for Absentee Ballot PDF form uploaded to the web site.

March 31-
***Last date to file for Gray Membership Card (requirement unpublished to the Osages anywhere on the Tribal web sites [Main or OGRC] or sent out via regular mail).

April 1-
Red Alert Update e-mail and update clarification e-mail sent out on the correct PDF form with the accurate last date to file on the request for Absentee Ballot for the C/E Election that it is currently up on the OGRC web site.

April 3-
Red Alert e-mail sent out on the mailed letter regarding the Minerals Council Election notice and attached request for absentee ballot information. Called the Election Board office and ALL shareholders that will not be present to vote in the booth in Pawhuska must send in a request for absentee ballot despite the initial information given on the 23rd of March.

April 7-
***First official notification on the Main Osage Tribal website that the last date to obtain the Gray signed Osage Membership Card is March 31, 2006!

April 8-
Red Alert e-mail sent out with information that the last date to obtain the Gray signed membership card has expired by one week yet the Osage Tribal website has just now published this vital information after the fact on April 7, 2006.

April 10-
Tribal Office is called at (918) 287-5390 and the March 31st cut-off date is a typographical error that was posted to the Osage Tribal website. The date should read: May 31, 2006!
The inefficiency of this government and their lap dogs, the ORGC, is laughable. This election should be postponed until the "powers that be" can get it right

NEW JUNE 2006 ELECTION VOTING ELIGIBILITY REQUIREMENTS:

Per the new Constitution, Article III, Section 2 and the new Resolution 31-1533 signed by the Tribal Council: all those Osage People who have attained the age of 18 years and who possess tribal membership cards issued subsequent to October 9, 2002, bearing the signature of Principal Chief Jim R. Gray, shall be considered enrolled members entitled to vote in the Osage Nation Election of June 5, 2006.

Drivers licenses or CDIB Cards will no longer qualify you to vote in the June 2006 Osage Election!

TO APPLY FOR THE MEMBERSHIP CARD CALL:

Osage CDIB Office
(918) 287-5389
1-800-818-6517

To immediately download your Osage Membership Application for your Osage Membership Card See:
http://www.osagetribe.com/cdib.html

OR CALL FOR MORE INFORMATION:

Osage Government Reform Office
(918) 287-5543
www.osagetribe.com/reformindex.html

You Must also have a Membership Card to Run for Office!

HURRY! The Filing Dates for Candidacy To Run for Office are: March 10-April 10, 2006
DOWNLOAD CANDIDACY FORM AT: http://osagetribe.com/candidacy.pdf

THIS IMPORTANT VOTER ELIGIBILITY INFORMATION IS NOT CURRENTLY POSTED TO DATE ON EITHER THE OSAGE TRIBAL WEBSITE OR THE OSAGE REFORM COMMISSION WEBSITE! PROTECT YOUR VOTING RIGHTS IN THE UPCOMING OSAGE ELECTION!!!

Osage Nation Constitutional Referendum Election Results

March 11, 2006, the Osage Nation won the approval of the proposed Osage Nation Constitution by a 33% margin. The following are the final results announced by Chief Jim Gray at the election site watch party. There will be further comments and a schedule of the upcoming transition plans posted later this week.

Principal Chief Jim Gray
Members of the Osage Tribal Council
PO Box 779
Pawhuska, OK 74056

Dear Chief Gray and Members of Council:

I write to you as and Osage citizen and a voting member of the Mineral Estate. I have recently acquired a copy of the proposed Constitution for our new government. I am very concerned about lack of skill and word craft exhibited by this document. A Constitution should be a very carefully worded blueprint for how we want our government to be organized and administered. A document that should only on very rare occasions require change or amendment. A living document that will serve our people for generations, giving guidance to our future governing bodies, but not tying their hands so that they cannot respond to changing times and needs, Such a document would allow the different branches of government to do their own respective jobs, but give clear guidance as to the will of the people they serve.

This rambling, twenty page Proposed Constitution cannot possibly serve this mission. It goes into minute detail about many subjects that would be far better dealt with by statute. One example is the nearly full page devoted to how an Executive branch veto should be handled. It describes in great detail how the three types of vetoes, shall be administered, even down what is to be done with a pocket veto at the end of a legislative session. It even makes a line item budget veto a part of our Constitution. A very controversial practice many feel gives the Executive branch the power to change the intent of legislation after the fact. I'm not saying we do or don't want the veto power to work the way it is stated in the Proposed Constitution. What I am saying is if these types of issues are dealt with by the congress they can be studied and vented more thoroughly as to how we want the nuts and bolts of our government to work. And when the inevitable changes become necessary they can be fixed by statute rather than a costly and more diff icult Constitutional change. A simple statement to the effect that the Executive branch has the power to veto legislation and that the congress may override said veto with a two thirds majority would be a more effective and long lasting way for the Constitution to deal with this subject.

This is one of many examples I could give as to how this document will hogtie our Government rather than serve it. Pick nearly any Article or Section and there will likely be a simpler more accurate way stating the underlying important principal that is trying to be conveyed. A Constitution should never get into a lot of unnecessary detail as to the nuts and bolts of how a concept should be implemented. This should be a job for the Congress. Because when it is realized that a mistake has been made or a new need arises it is so much easier for the needed change to be made by statute than by a Constitutional change. And of course the real danger isn't in the problems we can see. Its' the ones we can't foresee that maybe the killers. The changing times and needs of future Osages will require their Government to be flexible enough to meet their needs.

As a member of the Mineral Estate I am very concerned with how the Mineral Council is intertwined with and subjugated by the new Tribal government in the Proposed Constitution. There are many ambiguous statements in the document. In one place it seems to limit the Mineral Estate to the current members and their descendents, and then in another it states something to the effect of "it shall be administered for the benefit of all Qsage people". Such wording is bound to lead to lengthy and expensive lawsuits that may well tear our tribe apart.

This Document is so long and poorly worded that I have been studying it for nearly a week and am still very unsure as to what it says, and even less sure, what it means. I don't know how anyone could be expected to read it in a voting booth and make an intelligent judgment as to its worth. I fear its only salvation would be to start after the flowery preamble and examine every Article with an eye toward discovering the basic concept trying to be expressed. Then having a competent person rewrite it in a simple, legally correct way that will stand the test of time and the Court system.

I am asking the Tribal Council as the only elected and working government we now have to take a leading role in either fixing this disastrous Constitution or defeating it until a workable Constitution can be crafted.

Galen Crum roll number 1242

The top attorney for the National Indian Gaming Commission ruled on July 28, 2005 that the Osage Nation can conduct gaming on fee land within the boundaries of its reservation. Penny Coleman cited the fact that the Osage Reservation had never been disestablished. She mentioned several references to the reservation's continued existence.

The decision clears up any debate whether the tribe can operate their new casino in north Tulsa on non-trust land. The tribe paid $800,000 for 103 acres of land back in August, 2001. Just this August, the Million Dollar Elm Casino opened to the public. The $16.5 million dollar casino is the "flagship" of the four tribal casinos operating in Osage county.

A spin off of this ruling should strengthen the tribe's lawsuit against the State of Oklahoma over the reservation status of the Osage Nation.

The evening was festive as the tribe presented their newest casino to tribal members, employees and invited guests at a private party. The north Tulsa location is by far the most aggressive addition to the Osage gaming enterprise yet. The facility is beautiful! 47,000 sq. ft. of gaming awaits the people of Tulsa and surrounding areas.

The interior has a New Orleans flair with its jazz/blues motif. This motif is reminiscent of the early blues history of Tulsa. Patrons will find 1000 slot machines and 12 blackjack tables. Hopefully, they will add poker tables in the near future to take advantage of the current popularity of the "Texas Hold'em" craze across the nation. The Osage Million Dollar Elm Casino is definitely a player in the Tulsa market.

At the ribbon cutting ceremony, Chief Jim Gray gave credit to the current council for their efforts in moving this project forward. We would also like to give them credit for a job well done! One thing that attracted our attention was that no mention was made that the former council and gaming commission actually acquired the land, brought the management group and contractor that built the casino to the tribe. That council also began the environmental studies that were needed to be able to build on the location. The Chief also gave the current council credit for the Hominy casino. We would like to remind him that the former council opened Hominy one year before the current council took office. I know time flies and one can forget such facts.

Again, let us congratulate the current government for a job well done. Maybe, just maybe they can set aside politics long enough to give credit to many others that had an important part in this beautiful casino. The bottom line is that this enterprise will help the many tribal programs that are in need.

On March 21, 2005 the Federal Register posted that the Osage's Class III compact with the State of Oklahoma had been approved. It was about time since approximately 14 other tribes in Oklahoma had already been approved. We don't understand why the Osage Tribe is always behind the power curve on economic development. It is our understanding, from one of our sources, that the tribal gaming entity hasn't even started training dealers for the new approved table games. But then, why would that be a surprise? We might as well let the Cherokees have all that lucrative business in the Tulsa area. If you have been out to the Cherokee Casino you will notice the sometimes up to two hour wait to get on one of the poker tables. They are bringing in money hand over fist. The Cherokees are already talking about expanding their brand new casino and hotel. That might tell you something right there! I would be willing to bet that the Creek Nation will be playing poker and blackjack at their casinos before the Osages get up and running. The Creeks just applied for their compact a couple of weeks ago, so it still has to go through the approval process in Washington, D C .

Since the current council is trying to let gaming fund every program that they can think of to spend money on, you would think they would be looking to the future on ways to increase the income from existing gaming facilities.

While attending committee meetings on Monday, we noticed that the council has committed the final insult to the previous council. The current council has ordered that the mural in the lobby of the council building depicting the 30th Council and the oil producers that have helped the tribe for decades be covered up. Something about the new artwork reminds us of an Elvis painting on black velvet. It uses a "spatter paint" technique and is of an Osage warrior holding a war axe. On each side is black cloth from floor to ceiling. It looks like the area is draped for mourning, and probably should be. The mural that was covered over was originally commissioned to honor the oil producers that have helped the Osage over the years. Evidently the current council could care less. Their main goal is to wipe everything the previous council did while in office off the books. Ironically, most of what this council is pursuing was started by the last council. For example, gaming was started by the former council and the land for the new north Tulsa casino that is being built was bought by the previous council. The company that has given the tribe the expertise to do gaming was hired by the previous council. The major players in the oil patch such as Amvest Osage and Sullivan Oil were brought to the reservation by the previous council. The 8a certification that the tribe is using to acquire government contracts for services was started by the former council.

It is our understanding that the new painting was "installed" prior to the February 4th celebration of the signing of HR 2912. I guess the current council didn't want any of the VIPs asking who the people in the mural depicted. What the current council doesn't realize it that not only is it a slap in the face of the former council but it is a total insult to the oil producers.

On a wall leading into the council chamber are tacky new plaques with photo images of all the current council and Assistant Chief and Principal Chief thanking them for HR 2912. They look like something given out to little league ball coaches for a "job well done." What this council needs to remember is that these plaques can be taken down by a future council easier than covering up the mural was for them.

This council needs to grow up and realize that the mural depicted part of the history of the Osage Nation just like the murals on the walls in the council chambers. Heaven forbid that some council down the road decides that they don't like those murals. We wonder if the artist, Robin Polhamus, that did these murals is happy with her artwork being covered up. OOPS! Did we hear another slap in the face?

If you occasionally go to the Official Website of the Osage Tribe, you might have missed the notice that they were forming a commission to reform the government of the Osage Nation. This notice asked for interested parties to apply for a position on the commission. From what we can tell the notice stayed on the site a week or less. Our guess is that they had to post this in order to at least look like they were reaching out for an unbiased commission. When you read the names that make up the new Government Reformation Commission you might ask why did they bother with posting the notice in the first place.

As a former council member, and a member of the membership committee on the last council, I applied for the commission thinking I might have some valuable knowledge, incite and skills that they could use. Funny me! I should have known that the new council wouldn't have anything to do with a former council member. That has been pretty evident in everything they have done the past three years. I would like to see the tribe publish the qualifications of the members selected. Of course, some are obvious, but others are not quite so easy to explain. I don't imagine we will see their resumes anytime soon.

So, who are the members? Here is the information as we know it:
A special meeting of the Osage Tribal Council was held last Friday to enact the ordinance establishing the commission and appointing commissioners. The commissioners are: Tony Daniels, William S. Fletcher, Edward Lookout, Jerri J. Branstetter, Priscilla H. Iba, Jim Norris and Mary J. Webb. Alternates are: Martha Bills, Charles H. Red Corn and Joseph L. Conner. The good news is that most are headright owners.

We hope that they will publish their meeting times on the tribal website and that they will be public. These meetings, and what they mean to the Osage people, are too important to hold behind closed doors.

The regular council meeting on December 15, 2004 was called to order by Principal Chief Jim Gray at 10:07a.m. Chief Gray told the audience to be on the lookout for an Associated Press article that would be coming out in the next few days about the membership bill passage. This article appeared in the Tulsa World on December 26. In the same paper was a very good article on the museum collecting photos of all the original allottees. If you missed it, you should try to get a back copy.

Minerals matters consisting of several leases were combined and passed as one measure similar to previous meetings. In other words, there was no discussion on the items. It was announced that the leases netted $37,500. For the year, the leases netted $228,700. This equates to 112 wells being drilled over the next twelve months.

Raymond Lasley talked about plans for a day of celebration commemorating the passage of the membership bill H.R. 2912. This celebration will be held on February 4, 2005. In future years the celebration will be held on the actual day that the bill was signed by President George W. Bush. For more information as to the schedule of events you can go to: www.osagetribe.com.

Enterprise Manager, Tony Whitehorn discussed surveillance cameras for the Palace Grocery. Also, a resolution was passed in the amount of $80,000 to keep the Palace Grocery going and retire debts related to the grocery business. It was determined that an additional $30,000 would be needed in January to keep the store running. Sounds like the tribal council is pouring good money down a hole in order to not have to admit that purchasing this store was a bad business decision. How long can the tribe sustain this kind of debt?

A proclamation was passed honoring Wilson Pipestem for his help on passing H.R. 2912.

The meeting was adjourned at 11:40 p.m.

Starting this year this website will be visiting council working sessions throughout the month rather than just covering the regular council meeting. It seems that most of the nuts and bolts of what is going on is covered at the work sessions. The regular meeting has become a rubber stamp approving resolutions that have already been discussed and approved at earlier meetings.

We hope everyone had a Merry Christmas and a happy start to the New Year!

The Osage Nation announced in today's Tulsa World that they would begin construction on the new north Tulsa Million Dollar Elm Casino. A ground breaking ceremony is planned for Wednesday, October 13, 2004. Officials from the City of Tulsa and the Osage Tribe are expected to attend the 1:00p.m. ceremonies.

The 45,000 square-foot casino is estimated to cost $15 million, and should be completed by the end of 2005. The design and construction will be handled by T.D.C. Oklahoma Corporation.

Principal Chief Jim Gray said the casino will employ approximately 300 workers. In the Tulsa World article, Chief Gray was also quoted as saying that "estimates for the casino in terms of dollars is expected to be $4.65 million." We aren't quite sure what he meant by this. The original estimates back when the former council purchased this land and planned on a casino were around $8 million net profit to the tribe per year. Maybe he was talking about the expected impact of the payroll. The article was not too clear on this point.

Since this location was originally brought to the attention of the former council by me and the fact that I was involved in the original planning phases for a casino on the property, I am glad to see that the tribe is moving forward with this project. The only question might be why has it taken so long?

We had reported last week at the regular council meeting that budget shortfalls had been addressed. Based on the amount of the shortfalls, and some of the areas that had shortfalls, we feel it important to talk a little about these deficits.

The total amount reported at the meeting is a staggering amount of $766,859.37. Our first question is how in the world could this council have a shortfall in their budget amounting to 3/4 of a million dollars? Our first impression would be that they tried to come up with a very low budget to make everyone feel like they were really looking out for the tribal money. We know they transferred things like council salary and travel out of the minerals budget to appease the shareholders. It was the old "look what we are doing for you." The bad news is that the gaming revenue is now paying for these items. This brings up our next question, why are they supplementing the C-395(minerals budget) out of gaming revenue? Technically, this budget is used to manage the mineral estate for the headright owners. This budget should come out of mineral royalties, not general gaming revenue that is to be used for all tribal members. In questioning two council members they agreed that taking money from the general tribal funds to supplement the minerals budget probably wasn't right. Of course that was after the fact and they did not state that they would bring it up or revise the amended budget.

Another area that is questionable is the $94,000 shortfall in the council travel budget. We know that the original budget should have been adequate for travel and can not possibly see the need for an additional $94,000. Where are all of the tribal members that used to complain about the former council traveling too much? This council makes the old council look like a bunch of "homebodies". Why we think this is just plain bad business judgement on the part of the council is highlighted in the $186,000 they had to add to the Palace Grocery budget. A food store was a bad decision in the first place and it looks like it is a losing proposition.

Some of the shortfalls can be overlooked and we support them due to the fact that they are adding to much needed programs that directly impact tribal members, ie. the Food Distribution Program and Osage Home Health.
In the great scheme of things we still stand by our earlier comments that this council lacks real business experience. Most of the council have been employed by government entities their entire adult life. The mind set is to spend and when we need more just go back to the government for more. In this case it is gaming revenue. This council is about to kill the goose that laid the golden egg. They are endangering the very program that is helping them move forward.

The September 15, 2004 Regular Council Meeting was called to order at 10:00 a.m. by Assistant Chief Kenny Bighorse. Council members Red Eagle and Moore were absent along with Principal Chief Gray. They were in travel status this week.

In the mineral matters portion of the meeting 13 oil and gas leases and one rock mining lease were approved. It was announced that the Third Annual Oil and Gas Summit would be held at the Crowne Plaza Hotel in Tulsa, OK on October 11-13th. The council invited all headright owners to attend.

Rex Heckler, Heckler Strategic Communications, gave an update on the lobbying efforts that the tribe will do concerning State Question 712. Mr. Heckler submitted a budget and asked for immediate approval of the internet portion so they could get a web site up and running within the next 8-10 days. He reported that time was of the essence in this matter.

A resolution was passed to address shortfalls in the tribal budgets totaling $766,859.37. The council voted to approved taking this money from the Million Dollar Elm Casino. We think this topic should be discussed in a separate article at a later date. Check back for more on this in the coming days.

The meeting was adjourned around 11:30.

By the number of hits on our web site today it is evident that our readers were looking forward to a review of the council meeting and the opening of the new Million Dollar Elm Casino in Sand Springs, OK. We had more than double our normal visitors.

First, let me say that we attended the Regular Council Meeting that is held every third Wednesday of each month. The bad news is that it was over by the time we got there. Normally this meeting starts at 10:00 a.m. This month it was pushed up to 9:00 a.m. The meeting was adjourning by the time we got there due to the fact that the council had to be at a special ribbon cutting at the new casino opening in Sand Springs. Strange that this fact was not publicly announced. Only the press and media were invited. No problem; later that day the tribal employees, family and friends were invited to an "invitation only" opening from 6:00 p.m. to 10:00 p.m. opening. We guess former tribal council persons are not considered family or friends.

Sources tell us the opening to the public was more than anticipated. Crowds were seen lining up to register at the Players Club and to play the machines. This is excellent news for the tribe! After the initial bugs are worked out, things will hopefully go smoother. We think if the tribal council has any sense at all they will recognize that they need, more than ever, the assistance of the consulting group that has helped them from the start on this project. Without them this opening probably would still be on the drawing board. With projects pending in north Tulsa and Bartlesville let's hope the council will recognize the fact that they need professional help. If needed, we will go into more detail on this subject at a later time. We hope the tribal council and attorneys are listening.

In a June 21, 2004 AP Wire article it was mentioned that Richard Pombo(R-California) convened several hearings and votes on tribal legislation this spring. On March 15 he held a hearing in Tulsa, OK., on a bill reaffirming sovereignty rights of the Osage Tribe. The Osage Tribe gave Pombo's political action committee $2500 on March 10 and another $2500 on March 18. Timing is everything. It is just a coincidence that Pombo spoke in support of the legislation. Hmmm!

This almost sounds like an episode of the Sopranos. "Hey Vito, we will give you $2500 up front and another $2500 when the job is done." Just a guess, but we would imagine that the $5000 came from gaming revenue. If that is the case we would question if that is a legal use of gaming revenue. It might be loosely construed as tribal operations but it certainly doesn't fit under Health, Education and Economic Development.

I'm sure some of you were surprised, as I was, when you received the "Osage News" last week. It only took the Tribal Council two years to publish it. Some of the articles give information that is over a year old. By definition, a "newsletter" or "newspaper", as this should accurately be called, should be reporting NEWS, not history. If you get past that idiosyncrasy, the overall newspaper is very informative. A good job was done giving each area of the government space to talk about individual programs. Again, some of the reports weren't so much news as they were history. Still, it was information that the Osage people have been asking for since the new council took office.

Some of the significant events reported in the minerals section were started by the previous council, but you would think that it was all the result of the current council. Same holds true with gaming revenue and the current financial condition of the tribe. It was the vision and good business sense of the last council that created the Hominy Casino and the original Pawhuska Casino. Even the north Tulsa casino was started with the purchase of land by the 30th Council. It would be nice, and different, if the council could give credit where credit is due once in a while. That doesn't usually happen in tribal politics, however. Overall, the council is doing a good job moving programs forward and that is what is important.

Another question we had is "did the 'Osage News' go out to all Osages that the tribe has addresses for or did it only go to the headright owners?" Now if we can just get them to publish the newspaper at least quarterly they will do a great service to the people they serve by getting the information out on a timely basis.

A recent appeals decision in the Federal Circuit has very favorable implications for the Osage. However, the current council did nothing. Other tribes with a lot less to gain filed amicus briefs, but not the Osage. The results of the case are very favorable to the Osage due to the exact type of claims we have made in the Claims Court. The case is the Shoshone Indian Tribe and the Arapaho Tribe of the Wind River Reservation v. United States, Federal Court of Claims Judge Emily C. Hewitt, presiding. This is the same judge that is hearing our case. You can view the above case at: http://laws.lp.findlaw.com/fed/035036.html.

We would suggest that you contact your council members and ask why they let this opportunity slip through their fingers. Chances are, they won't even know what you are talking about. What a pity and a lost opportunity.

Even though they didn't file a brief the result is still very favorable to the Osage. It is a sure bet that the Justice Department may further appeal the Wind River decision to the U.S. Supreme Court due to their recent success in that Court against the Navajos. That would be another important opportunity for an amicus brief to be filed on behalf of the Osage Headright owners.

There has been a lot of publicity about the new Million Dollar Elm Casino due to open in Sand Springs later this month or early July. Just today there was a big article in the Tulsa World showing exterior and interior shots of the $6.5 million dollar casino. Looking at the pictures I would say they are going to have to get busy if they plan on opening in June or even July.

Having been involved with Osage gaming from the very start, I must say that I am more than a little disappointed in the exterior design. Who's idea was it to spend $6.5 million on a tin barn. It is supposed to represent an oil field equipment barn. Well, that is certainly where people in the Tulsa area want to go to gamble away their dollars. They are sure to pass up the new Cherokee Hotel/Casino/Golf Course and the Creek Nation expanded casino in order to go to a tin barn out in the country. The previous council had a very nice plan for north Tulsa that could have been used for this location, but that would have been too easy. The current council needed to spend more money on a new plan. Not only did this delay cause them an additional $1.5 million but it cost them at least three months in gaming revenue due to the added time to come up with a new plan.

When the design for the north Tulsa casino is complete let's hope that the council gets creative and tries to develop a casino that can compete with the other Tulsa casinos. If not, why even try? I understand that we don't have the dollars that the Cherokees and Creeks have, but for six to seven million they can certainly come up with a better plan than what they have in Sand Springs. Certainly the people that they are consulting with have better ideas. I know, because this is the same group that the last council worked with on the original plan. This council must let go with a little of their need to control everything and let some outside ideas come to the front. I don't remember any of the council with architectural or casino experience and it shows. Why not let the experts show you the way rather than force your trite ideas on them.

Oh well, if you build another tin barn in north Tulsa you will be able to convert it to an idustrial building when the casino falls flat. You have to compete with the other Tulsa casinos or be an "also ran". It is your choice. If you are going to run with the "big dogs" you have to get off the porch!

This website thought the time was right to discuss a few tidbits of information. On May 5, 2004 the House Resources Committee passed the membership bill without opposition. This is good news and with certain misgivings, this site backs this bill. We still think that thought should be given to voting rights and to whom will be eligible to run for office. If this bill passes the full Congress, as it is now, it will not only open up membership to Osages that deserve it but will open up voting rights and the ability to run for office to all Osages. This sounds good but will it serve the headright owners to have non-headright owners making decisions about the mineral interests of the tribe? The current council seems more concerned with getting re-elected than with the rights of the people that elected them in the first place.

Lately there have been postings on the "Official Website" of job opportunities for "current employees" for the Million Dollar Elm Casino. Originally, the 30th Council touted the creation of a casino in the Tulsa area as an employment opportunity for the area as a whole. The town of Sand Springs,and eventually Tulsa, should question the intentions of the 31st Council if they are limiting the job opportunities to "current tribal employees." We agree that qualified tribal members should be given preference, but to limit job positions to current tribal employees is going a bit far. First off, we don't have that many "qualified" employees for gaming. It would serve the tribe to get the best qualified employees available no matter whether they are tribal employees or not. Looks like this council is having another "hire a relative" job fair.

Principal Chief Jim Gray has brought considerable attention to the Osage Tribe as a co-chair of the BIA Budget Advisory Council. This is very important to us as a tribe and will help the Osages in future endeavors down the road. We want to thank Chief Gray for the good work to date.

At the February Regular Council Meeting it was announced that the new web site designer and Julia Lookout would be putting out the newsletter. Where is it? It is now May and no newsletter as promised. This council has been in office almost two years and no newsletter has been published. As late as last summer (2004) a council member told this web site that a newsletter had been turned over to Chief Gray for his approval. What has happened to that newsletter? Was it for real or was this just rhetoric to appease our questioning about the lack of information available to tribal members? We'll bet it shows up prior to elections in 2006.

Pawhuskas Heritage Day will be celebrated at the Osage Museum on May 15, 2004 starting at 10:00 a.m. Also the "Art of the Osage book is now available at the museum. You can reserve your copy by emailing the museum at: museum@osagetribe.org. We have heard that this is one of the best exhibit catalogs ever created. You will want to show your Osage pride by owning this special work.

The Art of the Osage will be on exhibit at the St. Louis Art Museum in St. Louis, Mo from now until August 8. This exhibit is in conjunction with the Lewis and Clark Bicentennial Commemoration of the Louisiana Purchase. If you do nothing else please go to the following link: www.slam.org and review the wonderful information on the Osage. We should thank the St. Louis Art Museum along with the donors that made this exhibit possible. Also thanks should go to Garrick Bailey, professor of anthropology at the University of Tulsa, Dan Swan, former Gilcrease Museum senior curator, Sean StandingBear and Jay Nunley, the Morton D. May Curator of the Africa, Oceania and the Americas at the St. Louis museum.

Following is an excerpt from the St. Louis Art Museum website:

Art of the Osage, organized by the Saint Louis Art Museum, is the first major exhibition to explore the art and culture of the American Indian people known as the Osage. The exhibition also brings focus to the vibrant story of the Osage, whose history traces to the great Mississippian culture of North America. From the 17th to the 19th century, the Osage inhabited the Upper Louisiana Territory amid the Mississippi, Missouri, Osage, and Red Rivers, where their formidable presence was significant in the country's westward expansion

The above site has a beautiful overview of the Osage people and their culture, traditions and art.

After reporting on the settlement between the Osage Tribe and Plains Marketing we have had further thoughts on the subject. We reported that the shareholders would receive $175,000 and the tribe would receive $50,000. Our question is since this is a mineral estate related matter why didn't the whole amount of $225,000 not go to the headright owners?

If you will remember back when the Plains Marketing deal was first signed by the 29th Council, a surtax of $.25 was added to each barrel of oil to provide a burial fund for annuitants. This was opposed by the Osage Shareholders Association at the time because they thought that all the money derived from the agreement should be dispersed to the headright holders. Now we find that a "tax" of $50,000 has been given to the tribe to use as they see fit for tribal programs for the youth and elderly.

We haven't heard outcries from the same group mentioned above about this latest revelation. Then maybe we won't since the chairman of the OSA is the Director of TANF, a tribal employee.

An Assistant U.S. Attorney for the Northern District of Oklahoma said he would have to look into the matter further when questioned on Thursday about the fact that any income derived from mineral related matters, by law, had to be dispersed to headright owners.

The question must be asked by the headright owners, "is this tribal council looking out for our best interests?" We are sure that there will be more to come on this subject.

It was announced that the Osage Nation has agreed to a settlement with Plains Resources. The headright owners will receive $175,000 and the tribe will receive an additional $50,000. For the headright owners out there keeping score, that equals an additional $78.00 per full headright share in your next payment. Only two and one half years ago this was a lawsuit that totaled more than $800,000. These were figures that the BIA said were owed. What happened to the money? Was the BIA that far off on their calculations or did the current council leave money on the table? This sounds similar to the ONG settlement that was for less money than ONG had already agreed to pay the 30th Council and they refused to take it. This council seems to think that settling these claims for pennies on the dollar will make them look like heroes. Let's hope this isn't the philosophy that they plan to use on the $100 million highest posted price and the $2.5 billion trust lawsuits. Rumors that we have heard are exactly that! Let's hope the rumors turn out to be false.

We have known for sometime that our website has caused concern for some of the more thin skinned council members and relatives. What we have seen just in the last month or so is a concerted effort to silence our site.

Approximately a month ago the new web site designer for the Official website of the Osage Tribe tried to transfer one of our registered domains(osagenation.com) over to the tribe. This, fortunately, was caught by our administrator. Could this have been ordered by someone on the council or was it an innocent mistake? We are not sure, but it certainly makes us wonder. We had a good chuckle about it, but are now thinking that a more in-depth look may be in order.

Shortly after the article on the membership hearing I received an email from someone(we won't name the person) using a tribal computer berating my article. Of course we know from our tracking service that tribal computers are one of the sites biggest fans. We aren't sure if they just want to see what we have to say or if our site is there best source of information on what is happening in the Osage.

Now comes the following excerpt from The Native American Times newspaper website printed on March 17, 2004
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Speaking of Osages, they were the subject of a field hearing on the proposed bill to create membership for the 14,000 plus tribe of Indians. There was love all around. Of course this love fest to do the right thing was only marred by some who wanted to speak.

Former Osage Chief Charles O. Tillman, a three-term leader wanted to testify. He was told he could submit testimony about his views. Don't know what he was going to say, but he has traditionally been opposed to expanding voting rights and successfully fought through the courts to strike down the former Osage National Council.

In an anti-tribal council website www.osagenation.net, a writer theorized the former chief should have been allowed to speak. That he had a right to speak. Of course this comment comes from a writer who served on the same council, which was turned out by voters in 2002.

Don't want to say they are motivated by sour grapes, but it has a grape like quality to it.

Can we hear you quack?
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First we want to say that we are not "anti-council." We report the good with the bad. It just seems that there is more bad than good sometimes. Second, if you will read the article below on the Tulsa hearing, We never said that Chief Tillman "had the right" to speak. We said that any former official should be shown the proper consideration. We aren't anti-membership and we started out by saying the hearing went well.

We can't remember ever saying anything negative about Principal Chief Jim Gray, so we are a little surprised that the newspaper that he owns has attacked this site as anti-council. At least they should get their quotes right don't you think?

On Thursday, Special Trustee Ross Swimmer announced the appointment of Principal Chief of the Osage Nation, Jim Gray, to the Special Trustee Advisory Board. Other members on the nine person board from Oklahoma included Gov. Bill Anoatubby, Chickasaw Nation, Bobby Brooks, Bank of Oklahoma and Edward Holland, member of the Cherokee Nation.

It makes good sense to have Chief Gray on this board since the Osage Nation has one of the largest claims against the mishandling of Indian trust funds.

Congratulations go out to Chief Gray.

One thing that the council needs to remember is that the site will only be as good as the information they supply to the webmaster. Since the current site has not been updated since December, 2003 it would seem that the current council isn't interested in giving out much information.

The Official site was the brainchild of former council member John Essley and was started back in February, 1999. For four years it was updated regularly with non-political information. Since July, 2002 the site has been neglected. When it was updated it usually was with pictures of the council and articles about what wonderful things they are doing, like the Presco oil and gas fiasco.

For those of you that want current information, remember our motto "Get The Latest News here First."

Pictured is one of the new signs announcing to the driving public that they are now entering the Osage Nation Reservation. The signs have been long in coming and have been needed for several years. Former council members John Essley, Everett Waller and George Waller requested these signs be placed on all main roads entering the Osage Reservation. Everett Waller, former Roads Chairman, ordered the signs with council approval in 2002. Thanks goes to the current council for bringing this program to a successful conclusion.

If you will remember back about 14 months ago the following was announced:

November 7, 2002 Following are excerpts from an article that ran in today's Tulsa World newspaper:
An agreement allowing exploration and development of coalbed methane gas on 212,000 acres of tribal land was announced by the Osage Nation and Presco, Inc. The Osage tribe said the project is expected to generate $150 million in royalties for tribal members over 15 years.

The project calls for more than 900 coalbed methane wells in northeast Osage County over the next four to six years. Coalbed methane, found in coal seams, is noted as an extremely clean burning fuel. In recent years CBM has grown in popularity as a fuel source and provides approximately 8% of the natural gas reserves in the U.S.

Presco, Inc is an independent oil and gas company that operates coalbed methane projects in Kansas. "They have extensive oil and gas operations in Kansas just across the border from us," said Principal Chief Jim Gray.

Presco's interest in the Osage was stimulated by the recent Energy Summit hosted by the Osage Nation in Tulsa, Oklahoma. According to the Osage Nation, the project will generate millions in royalties and many new jobs and provide more than $1 million over four years to the tribe.

The deal also calls for bonus payments based on the number of acres that are developed. Those payments will range from $20 to $55 an acre and could generate several million dollars for the tribe. We would imagine the variance in bonus per acres would depend on whether the lease was for coalbed methane only or a combination lease including CBM, natural gas and oil. This is pretty much the standard contract that we presently have with Amvest Osage, Inc and Patrick Oil and Gas Company.

The agreement with Presco also provides the tribe an option to obtain a 40% stake in the gas gathering pipelines required to monetize the reserves of coalbed methane. "If we do that and they end up producing as much gas as they think they will make, the tribe will benefit by about $11.5 million," said Joe Hughlett, the tribe's petroleum engineer.

Terms of the deal also require Presco to pay the tribe $200 for each well it drills. Those proceeds will be used to fund Osage art and cultural programs.

Chief Gray said other energy-related opportunities for the tribe are on the horizon and that the tribe wants to be more than a royalty owner. The tribe hopes to become "a player at different levels of the industry," he said.

Following are a couple of my analyses that I made:

(November 7, 2002)
The above information is certainly good news at first blush. But, let us turn back the clock to 1994 and the 29th Tribal Council. That Council secured several large acreage oil and gas deals with the likes of Chevron, DLB and West Bay. All looked very promising as to exploration and the amount of money that the tribe would receive. We were paid up front bonus in the millions by these companies. They tied up large amounts of acreage (Chevron had over 400,000 acres), and there were outcries of disapproval by many tribal members, me included, that this was restricting competition from the small independent oil producer that was so important to the Osage. Then the 29th Council signed a marketing contract with Plains Resources to buy our oil and pay a bonus for that oil. Also, they would pay a bonus or "tax" of $.25 per barrel of oil. This was money that the Tribal Council thought they could use for tribal projects such as a burial fund for annuitants. Again, many headright owners argued that that money could not be used in that manner and by law should be distributed to the headright owners in their quarterly checks. One of the most outspoken opponents was former councilman Ralph Adkisson. He was sure the tribe was violating the regulations by not distributing the funds to the shareholders.

Now let's move forward to 1998 and the 30th Tribal Council. By this time most of the "big" oil producers were deciding that they couldn't make the profit that their companies needed to justify exploration in the Osage. Chevron pulled out after spending millions of dollars on 3D seismic and drilling. The 30th Council wanted to reduce the size of these leases and did so by limiting the size of future leases to around 100,000 acres. One exception was Thermal Energy Corporation that wanted to explore for coalbed methane gas. They took about 170,000 acres and were going to drill about 45 wells per year. We entered into a contract with Sullivan Oil Co, to take over some of the Chevron acreage and to date they have been very successful in exploration and development of producing wells. We also, signed a contract with Amvest Osage, Inc. to drill coalbed methane gas wells. Lastly, we signed a similar contract with Patrick Oil and Gas. We kept the size of the leases down from the mega acreage leases to help the smaller producer.

Now, let's jump forward to the present and analyze the above announcement of the Presco deal. They have a deal for 212,000 acres. So much for stimulating competition with the smaller producers and limiting acreage leased to one producer. This deal when added to the other contracts mentioned above tie up more than 1/3 of the Osage Reservation, and obviously all of the more lucrative acreage. Presco is going to drill 900 wells over the next four to six years. That works out to 150 to 225 wells per year! Amvest Osage has had problems drilling 60 to 65 wells per year. Same with Patrick. I would question if 150 to 225 wells is a reasonable number, or will the Council be continually be amending the contract when Presco can't meet their drilling schedule. One problem with coalbed methane gas is that once you start producing a well you can't shut it in temporarily without taking the chance of losing all the production. If you don't have a pipeline ready to take this production you don't put CBM wells online. The council learned that with Amvest when they couldn't sell their gas and get it into a pipeline.

The article stated that the project would produce $150 million in royalties over 15 years. That works out to $4486.32 per headright share per year. Do you really expect to see your quarterly check to increase by $1121.58 anytime soon? The article also stated that this deal would provide more than $1 million over four years to the tribe. Where does that come from? Is that in addition to the $10 million per year in royalties? Does this go to the tribe or to the headright owners? The tribe has the opportunity to obtain a 40% stake in the pipelines required to monetize the reserves of coalbed methane. How much is that 40% stake going to cost us? Does that mean that there is presently no pipeline in the area to get this gas to market? "Monetize" is a fancy way of saying sell. Back to what was said earlier. If there is no pipeline, there are no wells being completed and the 150 to 225 wells per year does not materialize and neither does the royalty payments.

Terms of the deal also require Presco to pay the tribe $200 for each well it drills. This money will be used to fund Osage art and cultural programs. Hmmm.. why Osage art? Hold on, hold on a minute! Doesn't this sound a little bit like the $.25 per barrel that was mentioned earlier? I think it is very specific that money gained from the mineral estate goes to the annuitant. How is the 31st Council getting around that little roadblock? Certainly we will hear outcries from the same people that criticized the 29th Council. Then again, maybe not since they are the ones that put the current council in office.

Finally, the statement was made that this was the biggest thing that this tribe has done in twenty years. It certainly could be and this site certainly hopes so for the headright owners sake. Let us not forget however that the Chevron, DLB, West Bay and TEC deals were pretty big too and they are gone. So far the biggest thing the tribe has done in the past twenty years was done by the 30th Council and that is gaming. The tribe will bring in over $3 million dollars this year. These are dollars that we never had before. They are dollars that are happening now, not some future date in time. They are dollars that can legally be spent on programs for all Osages not just annuitants. These are dollars that are now being spent to fund a portion of the Tribal Council budget that benefits only the annuitant. The rest of the tribal members should object to that. You can thank the 30th Council and the previous Gaming Commission for your gaming revenue. That IS the biggest thing that the tribe has done in twenty years!

(September 14, 2003 article)
The one major deal (Presco-Mission) that they did close last November hasn't even gotten off the ground yet. They talk about drilling 1400 wells over the next five years. The majority of those will come from Amvest, Patrick and Sullivan. Hopefully Presco will get their act together and will contribute to the total. To date they have not completed or started producing a single well. They are already 100+ wells behind what their lease agreement called for in the first year.

Now for the "I told you so!"

Information received recently is that the Presco deal with the tribe has gone "belly up." After tying up 212,000 acres for 14 months and not producing one dime for the Osage Nation, Presco has pulled out. So much for blue sky and wishful thinking. Chief Gray and the Tribal Council were quick to tout the "biggest deal that has happened to the Osage tribe in 20 years." Why haven't you heard anything about Presco since from the council? Just one more example of bad business decisions coming from the council.

If you look at the past 20 months, the only bright spots have derived from projects that the vanquished 30th Council produced. It seems like every time you turn around something else is being financed out of gaming revenue. Gaming was started by the 30th Council. The increase in your royalty checks come from three deals, Amvest, Sullivan, Patrick, that the 30th Council negotiated. You should ask yourself "what has the 31st Council done for me lately?" They have hired their relatives, haven't moved any closer to settlement on the trust fund lawsuits, increased their salaries to $26,000 a year, haven't published a newsletter, haven't moved forward on the reservation status lawsuit and have a bogged down membership bill in committee. The Osage people need to start asking this council some hard questions. Of course, some of you will call this "sour grapes." I prefer to call it wine.