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TAHLEQUAH, OKLAHOMA - The Cherokee Nation will take the State of Oklahoma to arbitration to resolve differences arising from the tobacco compact. The Cherokee Nation originally requested arbitration in August but postponed moving forward because of continuing negotiations with the State.

“Both governments are representing their interests well,” said Chad Smith, Principal Chief of the Cherokee Nation. “We’ve just agreed to disagree and we are asking a third party to resolve the differences between us.”

Smith also noted that officially re-starting the arbitration process does not preclude a negotiated settlement that would be beneficial to both the Cherokee Nation and the State.

The Cherokee Nation is asking the arbitrator to rule that the state broke the compact when it repealed the sales tax on cigarettes, which is expressly forbidden in the compact. The compact has been in effect since January 2004. Since the implementation of the increased tobacco taxes of January 2005, neither side, the Cherokee Nation or the State of Oklahoma, has benefited as anticipated from the compact. According to the compact, the arbitration process will ask that each side select one arbitrator and then these two will select a third arbitrator that is approved by the other two.

Related Cherokee Nation contact information:

Mike Miller, Cherokee Nation Director of Communications Phone: 918-456-0671 (ext.2210) Fax: 918-458-5580 E-mail: Communications@cherokee.org Larry Daugherty, Advertising Manager Cherokee Nation - Public Affairs Phone 918-456-0671 (Ex.2324) E-mail: ldaugherty@cherokee.org

Steven Swogger, Agriculture Liaison Natural Resources Department Phone: 918-456-0671 (ext.2546) FAX: 918-458-7673 E-mail: sswogger@cherokee.org Bradley D. Peak, Cherokee Nation Natural Resources Specialist Phone: 918-456-0671 (ex.2843) E-mail: bpeak@cherokee.org