Professional Reference Shelf

Topics

1. Buffalo Nation
2. Additional Problems

Continuation of Textbook Problem 15. Making a Choice for Buffalo Nation

(Material provided by University of Colorado faculty and staff Beverly Louie (Women in Engineering Program/Chemical & Biological Engineering Department) and David Aragon (Multicultural Engineering Program) and Thomas Abeyta of Oberlin College who developed these materials for use in student leadership development activities.")

Bedard, A., D. Carlson, L. Carson, J Hertzberg, B. Louie, J. Milford, R. Reitsma, T. Schwartz, J. Sullivan and J. Abarca, Introductory Engineering Design: A Project Based Approach, http://itll.colorado.edu/ITLL, Copyright 1999 University of Colorado

The Basic Proposals
Recently TexaChev and Exxochem each negotiated proposals on the issue with Buffalo Nation and these are found below.

Site Proposal for Evaluation
Two locations are being evaluated to serve as the site for the gas compressor station for the field. The northern site, A, is five miles from the existing Exxochem field. Access to the field and the site would require a new road (at least five miles in length) and some improvements to the existing road that accesses the Exxochem field. The road is owned and maintain by Exxochem. Utilities are near the proposed site. The existing gas pipeline, owned by Exxochem and only 1.5 miles east, could handle up to 60% of the maximum field production. It would need to be expanded to handle the anticipated full production level of over 200 MMCFD. Site B, proposed for the southern end of the field, is about 10 miles from a newer gas pipeline owned by TexaChev. This newer pipeline could handle the anticipated full production level. Major road improvements to the existing field road (about 10 miles long) are needed to support the increased traffic and weight loads from field personnel, vehicles and equipment. Utilities are adjacent to the proposed site.

Other Information
All three communities are in need of improvements to their infrastructure. Schools, health services, waste management, roads, and community buildings all need major work or replacement. However, the only other large revenue generating activity that is being considered as a possibility is the establishment of a casino resort that developers want to locate at Site A to take advantage of the views of the lake.
Site B is close to the small southern town on the reservation. Its population includes many young families, many who are considered progressive and concerned about the welfare of their children. The working adults must travel to Crystal Springs daily, so the prospect of well paying jobs close to home is appealing. Site A overlooks Buffalo Lake, and it is close to the small northern town on the reservation. Its population is overwhelmingly traditional and opposed to the idea of drilling beneath the surface of the lake and a noisy compressor station just outside of their town. The residents of the central town are a mixture of progressive and traditional members, and many consider themselves as moderates who follow tradition and understand the economic needs of their tribe.

Reservation Overview

Geography

• The reservation is 650 thousand acres with a variety of terrain, including mountains, prairie grasslands, rangeland and desert.
• A prime undisturbed portion of the San Isabel River runs through the reservation for approximately 45 miles, feeding into several small lakes.

• The Buffalo Tribe has a substantial subsurface resource basin consisting principally of natural gas reservoirs, with several smaller oil and coal deposits.
• There is a diversity of species inhabiting the reservation, including mule, white-tailed deer, moose, gray wolves, coyotes and lynx (reintroduced in the late 1990's). Other native species include pheasants, wild turkeys, bald eagles and rainbow trout. Other notable fauna include domestic cattle, horses, and the American buffalo. There is limited hunting and fishing on the reservation with special permits given to thin deer herds and control fowl overpopulation. There is prime undisturbed habitat surrounding Buffalo Lake and the Horn Ridge community.
• The San Isabel River is the principal surface water source for the Buffalo tribe. One of the many lakes it feeds into is Buffalo Lake, a sacred site that is completely undeveloped with limited road access.

Population

• The Buffalo Nation has approximately 24,000 enrolled tribal members with roughly 85% residing on the Buffalo reservation.
• There are three main population centers on the Buffalo Reservation:
  • Fort Hanson: a reservation town straddling the Utah border. Population 6,000, most of whom are Buffalo members.
  • Horn Ridge: a small, remote reservation community situated near the sacred Buffalo Lake. Population 1,100.
  • Red Prairie: the main tribal business center where the majority of the Buffalo Tribe members live. Population 12,000.
• There is one major city adjacent the Buffalo Reservation: Crystal Springs: a major Colorado city and trade center 52 miles east of the Buffalo Reservation. Population 200,000. Approximately 1800 Buffalo members live in Crystal Springs

Economic Development

• Fort Hanson has one small grocery store, two older gas stations and one dilapidated café. All are owned by non-Indians.
• Red Prairie has a small shopping center with a grocery store, coin laundry, trading post/pawn shop, video store and small café, owned by a Buffalo family. There is a new convenience store with a gas station, as well as an older restaurant. Near the Tribal Offices, a Buffalo member has converted a small trailer into a souvenir/arts & crafts store.
• Horn Ridge has one post-office and a pay phone.
• Unemployment is at an all time high with 35% of tribal members living on the reservation looking for full-time employment. A significant amount of tribal members make the 100-mile roundtrip commute into Crystal Springs for work.

Health & Education

• The main Indian health care facility is located in Red Prairie.
• Red Prairie has a tribally run Headstart program, an elementary school and a junior/senior high school.
• Horn Ridge has an elementary school that provides schooling up to fifth grade. Beyond fifth grade, Horn Ridge youth are often sent to school elsewhere, usually Red Prairie.
• Fort Hanson has an elementary school, a junior high and senior high school.

Utility Infrastructure

• The Buffalo Nation Reservation has an interstate highway along with a railroad with access to and from Crystal Springs.
• Two roads connect the three population centers: a paved road between Red Prairie and Ft. Hanson, and a dirt road between Horn Ridge and Red Prairie. During the winter and the rainy season, the dirt road is difficult to travel due to large ruts created by the daily traffic.
• Communication lines, sewage & water treatment, and power lines are currently in poor to fair condition throughout the reservation with not much room for load increases by new development.

A 15 member Tribal Council with elected members respective to the three population centers governs the Buffalo Tribe.

• Ft. Hanson has 5 elected council members
• Red Prairie has 7 elected council members
• Horn Ridge has 3 elected council members

One of the council members is also elected among his peers to act as chair to help run meetings. All members of the tribe are eligible to vote for their respective council members when they reach 18 years of age. The council makes decisions that reflect the wishes and best interests of the entire tribe. On certain issues, the council conducts "town meeting" style sessions with the opportunity for concerned tribal members to voice their concerns. Decisions are made with a final tally of tribal council votes.

A Look into the Tribe

In order to make a proper decision, one must understand the history, traditions and current situation of the Buffalo Nation.

Creation Story of Buffalo Lake

Each Indian tribe has its own account of creation. It is believed that the Buffalo tribe's original ancestors guided by the Great Spirit, emerged from an underground alternate world of darkness and chaos in search of peace and light into this present world by passing through a gateway at the bottom of a mountain lake to the north. Buffalo Lake is believed by many to be the lake spoken of in Buffalo tribal folklore and is considered sacred as the point of origin for the Buffalo tribe. It holds a deep spiritual connection to the tribe as a whole, and annual pilgrimages are made to give thanks to the Great Spirit for guiding the Buffalo tribe to this place of harmony.

The birth of the Buffalo Tribe is central to its spiritual beliefs and it is referred to throughout many of the oral traditions with its recurring theme of the saga of upward emergence-from darkness into sunlight, from ignorance to wisdom.

Tradition

The Buffalo Nation, like other Native American reservations, has a very strong sense of pride and tradition. These traditions, which go back over a thousand years, are evident in such events as Buffalo Nation festivals, which are scattered throughout the year. The major festival takes place in July just outside Horn Ridge on the edge of Buffalo Lake where Buffalo Nation residents make their annual pilgrimage to give thanks to the Great Spirit for leading them to Buffalo Lake as a place to settle their tribe. During these celebrations, ancient rituals are performed and Buffalo Nation cuisine is prepared in the same fashion as it was by their ancestors.

Community Relations

Buffalo Tribe members occasionally interact with non-Native Americans because of the proximity of non-Native American communities to the Buffalo Reservation. The nature of this interaction is frequently hostile due to racial and economic tensions. Intermarriage is infrequent and discouraged by both members and non-member of the Buffalo tribe.

Interaction with the United States government and current status

The relationship between the Native Americans and the non-Native American has been a strained relationship throughout history. During the American Revolution, most Native Americans supported the British for they were worried that many of the colonists were attempting to establish religious based colonies that would force the Native Americans to relinquish their traditions. In the Treaty of Paris, the British ceded most of the Native American territory to the United States without notifying the tribes and the Americans attempted to treat those areas containing British supporters as conquered people who lost their land. However, due to the breadth of the American frontier, it was impossible to enforce.

In 1830, President Andrew Jackson helped pass the Indian Removal Act, which permitted the United States government to move Native American tribes from lands east of the Mississippi River to lands west of the Mississippi River. Relocation was supposed to be voluntary, but when all was said and done, numerous skirmishes broke out between the Americans and tribes refusing to leave their land. On January 31, 1876, the United States government passed a law that required all Native Americans to move onto reservations.

As the years have passed, the United States government has taken different policy stances with Native American. In the early 20th century, the government attempted to assimilate (integrate) Native Americans into American culture. To complete this, schools run by Christian missionaries were formed, forcing students to adopt all forms of American culture and prohibiting them from speaking their original language and celebrating their culture. In 1924, Native Americans were given full citizenship. More recently, assimilation has become less popular, replaced by policies to allow the tribes to run themselves in their reservations.

Today, there are 563 tribal governments in the United States. The United States recognizes the right of these tribes to self-government and supports their tribal sovereignty and self-determination. These tribes possess the right to form their own government, to enforce laws (both civil and criminal), to tax, to establish membership, to license and regulate activities, to zone and to exclude persons from tribal territories. However, these governments do not have the power to make war, engage in foreign relations, or coin money.

Unfortunately, many tribes are currently facing dire economic and social conditions. Unemployment runs rampant in these tribes, with the Buffalo Nation having an unemployment rate of 35%. Additionally, alcoholism and drug use is much higher on reservations then the remainder of the country and the youth suicide rates are 2-3 times higher than the national average. Further, the typical Native American family has an income that is only 2/3rd the amount of the average non Native American family.

Making a Choice for Buffalo Nation:
An Exercise in Teamwork and Ethical Decision-Making

Background

Buffalo Nation is a small Native American tribe that is located in southwestern Colorado. It has three tribal communities on its reservation. Buffalo Nation has debated the feasibility of producing natural gas from the Buffalo Nation Gas Reservoir for over 5 years. The tribal council has been split on the issue. Younger tribal elders view it as the best way to revive the tribe with significant annual income that will improve the schools, sanitation systems, roads that have decayed over time, and provide much needed jobs and income. Traditional tribal elders are against any type of development because the reservoir is adjacent to and under the sacred Buffalo Lake. They view development as invasive to their traditional way of life and a threat to the tribe's cohesiveness. In the past two years, the tribal council has added several progressive elders, including one with a degree in chemical engineering, and replaced more traditional elders that have passed away.

Proposals for Evaluation

Exxochem and TexChev are greatly interested in using developing the land of the Buffalo Nation for the production of natural gas and have proposed two separate sites to house their gas compressor site. Exxochem already has a field about 10 miles east of Buffalo Lake. They are proposing to use site A for the gas compressor, which is about 5 miles from the existing Exxochem field. Access to the field and the site would require a new road (at least five miles in length) and some improvements to the existing road that accesses the Exxochem field. The road is owned and maintain by Exxochem. Utilities are near the proposed site. The existing gas pipeline, owned by Exxochem and only 1.5 miles east, could handle up to 60% of the maximum field production. It would need to be expanded to handle the anticipated full production level of over 200 MMCFD (million cubic feet per day).

On the other hand, TexaChev is proposing to develop a field on the southwest edge of Buffalo Lake. Site B, proposed for the southern end of the field, is about 10 miles from a newer gas pipeline owned by TexaChev. This newer pipeline could handle the anticipated full production level. Major road improvements to the existing field road (about 10 miles long) are needed to support the increased traffic and weight loads from field personnel, vehicles and equipment. Utilities are adjacent to the proposed site.

Recently TexaChev and Exxochem each negotiated proposals on the issue with Buffalo Nation.

However, another proposal has recently been submitted to the Buffalo Nation: the development of a casino using Site A. The proposal presented to the Buffalo Nation is discussed later.

Community Information

The three communities of Buffalo Nation are:

Horn Ridge: Horn Ridge is the smallest of the three communities and is a close knit community of predominantly elder folk. There is only one dirt road leaving the town, connecting it with Red Prairie. The unemployment rate is 86%, with much of the population living thrifty lifestyles as close to traditional ways as possible with minimal modern conveniences. Horn Ridge has one post office and payphone situated in the center of town.

Red Prairie: Red Prairie is the main tribal business center where the majority of the tribe members live. The town contains a small smattering of shopping and dining option and many people from both Fort Hanson and Horn Ridge come here to complete their shopping. However, for larger purchases, residents must drive to Crystal Springs. The unemployment rate is around 40% with most people employed in the local schools and the health facility that serves the entire reservation. Several families here have college graduates living and working in Crystal Springs. There is a strong desire for many of these people to return back to their home in Red Prairie but can not due to a lack of job opportunities. The residents are a mixture of progressive and traditional members, many of which consider themselves as moderates who follow tradition but understand the dire economic straits faced by the tribe.

Fort Hanson: Fort Hanson is the medium sized town on the reservation. Most people in Fort Hanson have jobs in the business that surround the small but stable community and have an unemployment rate of about 15%. The town contains one small grocery store, two older gas stations and a small, dilapidated café. However, the town of Fort Hanson has become newsworthy recently due to a resident being signed to a major recording contract and has been touring throughout Colorado, New Mexico, Utah and Wyoming. The locals hope that this is a way to bring well-needed tourist revenue into the city. The members of this town are understanding of the traditions of the Buffalo tribe, but realize that economic development is a must in order for the tribe to survive in the 21st century.

All three communities are in need of improvements to their infrastructure. Schools, health services, waste management, roads, and community buildings all need major work or replacement

Gas Plant Proposal Materials

Proposed New Gas Treatment Plant for Processing C2 - C8 Hydrocarbons
Soaring Eagle Field, Buffalo Nation Reservation, Colorado A Proposal Developed by the Texachem Company

Background

The recent increases in natural gas prices have spurred interest in drilling new wells on many existing fields, including the Soaring Eagle Field on the Buffalo Nation Reservation. This field is located in the northern region of the reservation. It covers approximately 200 square miles, contains a natural gas dome reserve, and up to 600 natural gas wells are planned for production. Geologists from Texachem Company have developed a comprehensive drilling plan that taps into these natural gas reserves. The Soaring Eagle Field was identified about 20 years ago, when an assessment of western USA gas reserves was done, and exploratory wells showed a substantial gas flow rate. Geologists are aware that the 'best' wells have not yet been drilled, since they are located on reservation property.

About 90% of the identified natural gas reserves in the field are still in-situ at this time. Texachem geologists have modeled the field with the proposed 600 total wells, establishing a predicted average daily production rate of 40 MMCFD for 20 years, with a sharp decline thereafter. Currently, the natural gas production occurs from a portion of the field, and the daily gas production rate is 100,000 MCFD from about 50 wells located on Bureau of Land Management property that is adjacent to the reservation. The low capacity of the existing transportation pipe and the age and condition of the existing old gas plant (west of the reservation) minimizes opportunities for expansion, e.g. drilling more wells.

Gas treatment plants process the C2 to C8 hydrocarbons that are produced alongside methane, the C1 hydrocarbon used for heating, power generation, and other industrial applications. The typical natural gas stream from this field contains about 93% methane, 4% ethane, 2% propane, butane and higher hydrocarbons through octane, and about 1% water.

New Gas Processing Treatment Plant

Texachem proposes a partnership with Buffalo Nation to drill the proposed gas wells and to build a new, local gas processing treatment plant on the Soaring Eagle Field.

Drilling Plan

• The bulk of the gas reservoir is located at depths averaging 7400 feet adjacent to or below Buffalo Lake.
• Geologists wish to drill up to 550 additional wells on 1/4 to 1/2 acre spacing. These wells would be spread across the acreage between Buffalo Lake, the San Isabel River and the northwest boundary of the Reservation.
• Modern horizontal drilling techniques can be used on the wells that access the gas below Buffalo Lake, so that the wellhead structures can be located up to a few miles from the western edge of the lake.
• Gas wells are finished at the surface with low profile piping at the wellhead (rather than the typical pumping unit used for oil wells). The gas is produced by pressure differential to the surface and then is piped to a gas gathering system.

Gas Gathering System

• The new gas gathering system includes piping from the gas wells and three new satellite compression facilities.
• These three satellite compressors must be located in the gas field and are powered with the natural gas produced from the wells.
• The compressed gas will be sent through large diameter piping (~ 36 in. diameter) placed on or below the ground surface to the new, Soaring Eagle Gas Plant.

New Gas Treatment Plant

• The Soaring Eagle Gas Plant will be capable of processing up to 50 MMCFD from the Soaring Eagle Field.
• The plant will use a cryogenic turbo-expansion process with several distillation columns to produce a range of liquefied natural gas (LNG) product streams.
• The produced LNG streams will include 2000 BPD of C2 and 200 BPD each for C3, C4, and C5-C8 hydrocarbons.

Location of the Soaring Eagle Plant

• Texachem believes the best location for the new plant is inside the northeast boundary of the Buffalo Reservation, about 5 miles west of the San Isabel River, on a site about 500 feet above Buffalo Lake covering an area of about 30 acres total. A two-lane dirt road exists near the reservation property that leads from an existing compressor station on BLM land southwest to the old plant.
• Texachem has applied for road-building permits to allow access across BLM land from Crystal Springs, a distance of about 42 miles, including 6 miles through the reservation, crossing the San Isabel River at Horn Ridge. The road must support semi-tractor trailers and other large vehicles associated with drilling and operations in the gas field.
• The application to the Buffalo Tribal Council for building this 6-mile stretch of road including a new bridge is planned for submission.

Partnership Agreement

• Texachem proposes to enter into a joint partnership with Buffalo Nation, with Texachem being the major partner. Drilling costs, plant operating costs, and future assets and revenues would be split 60% for Texachem and 40% for Buffalo Nation.
• Due to the limited present value of Buffalo Nation, Texachem agrees to negotiate the capital costs based on future earnings by the Buffalo Nation.
• Texachem will hire tribal members for up to 40% of the field and plant positions (estimated at 50 gas field workers and 60 plant workers total). Gas field personnel will be required to monitor and operate the equipment at the compressor facilities and the wellhead on a daily basis. Job responsibilities will be mechanical work (e.g. engine repair, leak detection, pipe fitting), manual labor (e.g. spill cleanup, trenching, road watering), and electronic and administrative work including radio communications. Plant personnel will operate the plant 24 hpd/7dpw. A typical plant lifetime is 40 years.
• Texachem will hire tribal members for up to 40% of the workers required to build the new gas plant, including metal workers, carpenters, machinists, welders, etc. (estimated at 800 total) and to build roadways and other service or utility facilities (estimated at 100-200 workers). The company anticipates these employment opportunities ranging from six months to 2 years, depending on the scope of each project or building phase.
• The pay scales for these positions are nationally competitive, ranging from $15 - $40/hr.

Educational Benefits

• In other remote locations operated by Texachem, the company has conducted distance learning classes for the benefit of the company staff and their families.
• The company will offer on a space available basis many general courses from Western State University, Ft. Lewis College, Northern Arizona State University, University of Colorado, University of Northern Colorado, and other institutions depending on availability and interest. Some two-year degrees will be obtainable.
• All tuition costs will be paid for by Texachem.

Royalties

The revenue generated by the sales of natural gas (and other mineral reserves such as coal) are determined by the royalty fees of the holder of the mineral rights. Mineral rights can be held by private owners, the federal or state government, or other entities. The current revenues are $5/MCF for natural gas at the wellhead and an average of $30/BBL for liquefied gas streams

• In this case, the gas rights are held by Buffalo Nation, and the liquid rights would be shared by Buffalo Nation and Texachem..
• The gas field operator evaluates the daily production at each wellhead to determine the daily revenue. For example, the BLM guidelines require payment to the federal government of 12.5 percent of the theoretical revenue (the revenue for all production at each wellhead), with no deductions for field operations such as operating compressor engines.
• The produced volumes of liquefied gas streams determine the royalties due from the gas plant. The Federal Government is paid 12.5 percent of the theoretical revenue for production from plants located on BLM land.
• The Tribal Council of the Buffalo Nation has discussed implementing royalty fees of 18-20 percent of the theoretical revenue for all mineral resources, but no set tribal guidelines currently exist. Similar royalty fees exist on other tribal properties in the country, including those in southwestern United States.
• Any royalty fees implemented by Buffalo Nation would apply to the Texachem portion of revenue only. The revenue for the Buffalo Nation portion is not taxed and no other fees are taken from it.
• The generated revenues and collected royalties typically are deposited in a tribal account. Some tribes make direct annual payments to members. Most tribes use the revenues for various social services.
• Texachem requires a schedule of royalty fee percentages for natural gas production LNG production before a partnership agreement is established.

Economic Statement

Buffalo Lake Resort Casino Proposal

Introduction

Gambling is fast becoming the preferred recreation activity for many Americans. People are no longer limited to travel to the well-known hot spots of the Las Vegas strip and Atlantic City, but local gaming resorts now located in 46 states, make it easy to getaway for just an evening or the entire weekend. The affordable and timely access to these establishments is one aspect that draws new and returning patrons. With a growing population in Crystal Springs longing for outdoor activity and engaging entertainment, an Indian luxury gaming resort nestled within the picturesque lakeside mountain community of Horn Ridge would be an ideal and profitable venture.

The legislation passed in 1988 with the Indian Gaming Regulatory Act (IGRA) established regulation of Indian gambling, specifying several mechanisms and procedures including the requirement that the revenues from gambling be used to promote the economic development and welfare of tribes. A casino resort will provide much needed revenue while fostering Indian self-determination by helping establish programs to deal with the on-going problems facing the Buffalo Nation. In addition, such an establishment will create a forum in which to expose and educate the non-Indian population about the rich traditions and Indian history embedded within this secluded mountain community.

Proposed Site

• The city of Horn Ridge, considered the guardian of the sacred Buffalo Lake, provides limited access to the pristine lakeside property at the eastern foothills of the Havalina Mountain Range overlooking the prairie grasslands to the west. The northern rim of Buffalo Lake is the model site due to its elevated position providing views of the entire lake to the south and mountains to the northeast.
• Plans are to develop a 400-acre plot along the lakeside to house a casino, 60-room hotel & restaurant, recreation spa, and 12 private luxury bungalows situated along 1/2 mile lakeside trial. In addition, a future site to the south will be the location of an 18 hole golf course.
• The lakeside property is ideal for such development in order to capitalize on the large population base of Crystal Springs located only 50 miles away. With no legalized gaming in the city, a casino conveniently situated on the nearby Buffalo reservation will fill a niche for patrons wanting to get away from the city to enjoy the scenic beauty of lakeside property that provides all forms of gambling.
• The proposed site is undeveloped with limited access along a single lane dirt road. New construction of the Buffalo Lake Resort Casino will include the main facility (casino and hotel), 12 bungalows, landscaping, and parking lots with plans for further development of an 18-hole golf course. Associated utilities including water treatment & sewage, power supply, communication lines, service roads, and an additional two lane paved road connecting the interstate to Horn Ridge will need to be developed to support the casino.

Hotel & Casino

• The main complex will house a 55,000 square foot casino equipped with slot machines, roulette, black jack, poker, keno, craps and all other forms of gambling associated with Class III classification as regulated by the IGRA of 1988.
• An adjacent hotel/lodge with 60 rooms including two master suites will provide ample lodging for patrons wanting to visit the casino and the surrounding recreational grounds for an extended stay. For those who desire more privacy, 12 luxury bungalows with a comfortable yet rustic decor will be located within walking distance along a 1/2 mile trail winding through the trees along the lakeside. Nightly or weekly rates will be available for all rooms and bungalows along with two conference rooms for business meetings.

Employment Potential

• The Buffalo Lake Resort Casino will require a number of direct employees. The casino and hotel will primarily create service-oriented jobs, security and grounds people, with a number of middle and upper management positions. All full-time employees will receive benefit packages including employer contributions to health and retirement plans. The following table is an estimate of jobs that will be created for direct hire by the casino, hotel and associated facilities for the first year with a projected increase of 4% yearly.

  	# of Jobs
  Total	3000
  Full-time	2760
  Part-time	240
  Contractor	45

• A recent survey of tribal casinos produced average numbers of visitors to tribal lands. The proposed site, with its proximity to a larger city, has a potential of bringing in a daily average of 5000 visitors to the Buffalo Reservation. These numbers will create a substantial base for tourism dollars.
• The 24-hour operation of the Buffalo Lake Resort Casino will create surrounding businesses to support the increase in daily visitor traffic. At this time there are no numbers associated with this factor as it is dependent on what the tribe proposes in relation to the growth of alternate business. It is known that the potential is great for additional hotels, restaurants, gas stations, and related tourist centered business to service the increase in outside visitors.

Management Agreement

• The casino will provide contracted management to oversee daily operations while employing a number of Tribal members in training positions. These training positions will eventually resume offices of leadership and management at all levels throughout the entire facility.
• There will be an established minimum percentage of contracted consultants and casino management in order to maintain an operation that is competitive with current industry standards.

Financial Projections

The following table gives a three-year projection of revenue and expenditures based on survey data of existing tribal casinos. The projections are conservative with great potential to exceed revenue projections. The figures are only associated with the operation of the casino, outside business created by the influx of new visitors to the reservation is not factored in these numbers.

Estimated Total Capital Cost = $100,000,000

Additional Available Information

• Indian Gaming Regulatory Act, 1988
• Analysis of Casino Survey, 1999
• Highlights of U.S. Study on American Tribal Gambling

1. Doing All The Work. You and your assigned partner, Brad, were supposed to complete a final report together for your laboratory course. You have just spent the entire weekend by yourself completing the group report, which is due on Monday. You have been unsuccessful in reaching Brad and have left several messages on his answering machine. Brad finally shows up at the computer center at 8:00 PM on Sunday just as you are finishing the report, and tells you he decided to go home to visit his parents. Since this is a group report, you and Brad will receive the same grade for your efforts. You are disgusted with Brad for his lack of contribution to the report. How do you deal with the situation? Your lab partner? Your instructor? Make a list of suggestions to resolve or prevent the problem. What if your lab partner was your significant other and was out partying the entire weekend? Use the 4 Virtues, 4 Component Model, Evaluation Checklist, Ethics Check List, and the Five P's to help you answer these questions. (Developed by Bradley Foerster, University of Michigan, Class of 1992)



2. Taking Credit for Your Work. You are a project engineer at the Fine Chemical Company. You and Joe have been assigned to study the recently developed cobalt catalyst. You have just completed a six-month study of the cobalt catalyst and have been assembling a report. You have put in long hours this year, partly to make up for Joe's lack of effort and partly to receive the one promotion rumored to be available in your department. Your boss, Dr. Adams, has been anxiously awaiting your report. As you walk down the hall to the coffee machine, you overhear your partner discussing the cobalt catalyst in Dr. Adams' office. As they step into the hall, Dr. Adams slaps Joe on the back for his "dedicated and superior work on the cobalt catalyst" and promises to remember Joe during the end of the year evaluations. Joe has claimed your work as his own. What do you do? Propose possible approaches you could take with Joe and Dr. Adams to receive the credit you deserve. How would you deal with the situation if Joe's lack of effort were due to substance abuse? If the Fine Chemical Company were laying off engineers, would you be more concerned with receiving credit for the report or keeping your job? Use the 4 Virtues, 4 Component Model, Evaluation Checklist, Ethics Check List, and the Five P's to help you answer these questions. (Developed by Bradley Foerster, University of Michigan, 1992)



3. You put together a buoyancy exhibit for a "science day" event. The exhibit consists of filling up an aquarium with water, then testing, which soda pop cans float. The idea is that the diet soda cans float because they don't contain sugar, while the nondiet soda pop cans sink. In preparing your experiment the night before, you discover that one of your diet soda pop cans floats but the other slowly sinks to the bottom. You know that if you "spike" the water with salt, increasing the water density, all the diet soda pop cans will float. Do you
   • Spike the water and tell no one?
   • Spike the water and tell only those parents who appear to be looking at this as a future science fair experiment?
   • Spike the water, but put up a sign next to the exhibit warning people about what you have done?
   • Not spike the water?
   • Do something else? (Please specify)
   Use the Evaluation Checklist, Ethics Check List, and the Five P's to help you answer these questions. (Contributed by Dr. Susan Montgomery, University of Michigan)