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Dear Mr. Ryan: As the advisor to the Office of the Chiefs on matters of tribal gaming, I have been asked by Chief Red Eagle to respond to your recent emails that you sent to various Executive Branch offices regarding assumptions about the Skiatook Travel Plaza. I have read some of the statements made on your Facebook page and other websites. I want to provide you with the facts concerning some of the statements made in your emails. First, there have been no casino losses at the Skiatook casino. The accounting firm of REDW of Albuquerque issued a report to the Gaming Enterprise Board at a recent board meeting. A member of the Osage Congress was present. The independent report covered the time periods of 2009, 2010, and for the seven month period which ended April 30, 2011. During this time period, the report shows “a total of 146 individual expense transactions exceeding $5,000…” were examined. In addition 73 transactions under $5,000 were randomly examined. The report continues to state that “We found that all of these expense transactions reviewed were costs pertaining to the Osage Travel Plaza and the costs were substantiated by supporting documentation.” Accusations aired during a public meeting of the Commerce and Economic Development Committee of the Osage Congress stated that Osage Casino executives may have tried to hide alleged casino losses under the guise of travel plaza losses in an attempt to make the casino appear more profitable. The independent report, plus other financial reports to tribal officials, reveals that the allegations are completely without merit. The accounting firm’s representative stated that the Skiatook Travel Plaza losses shown in the monthly financial reports during the time period reviewed are basically from maintaining staffing levels in the food and beverage operation. Salaries and benefits were higher for those employees than are normally paid in the convenience store industry. Those staff members have now been relocated at other Osage Gaming locations. The Travel Plaza losses have ceased and in fact for May operating income was close to a breakeven and June and July have shown a modest profit. I might add here that the monthly financial reports continue to be provided to the Chief’s office and to the Congress on a regular basis, a practice fully implemented by our present gaming executive management. Your emails specifically allege that the Skiatook Travel Plaza is to be “shut down and bull dozed”. Without venturing into proprietary information, I can say that our present gaming executive management has developed a strategic master plan for the future of our Osage Casino Enterprise. At no time previous in the Osage Nation has there been a written plan for our gaming enterprise, let alone one that encompasses a strategy, coupled with comprehensive marketing and financial initiatives. The plan has been presented to the Congress for its consideration and the Administration is hopeful that it will be approved in the upcoming session. No casinos will be “shut down” during the implementation of the master plan. It is unfortunate when reckless statements are made and placed in public forums where they could cause worry for our gaming employees. It is this group of employees who have been very loyal to you and the entire Osage Nation, the casino owner, while the administration focused on placing our three casino lands into trust. Without them, the one major source of funding for your government and the services it provides to the people would not have been possible. While we may debate those services that are provided, there is no room for debate on the loyalty of our gaming management and gaming employees: indeed, all tribal employees, because they are on the front lines of providing services for the tribal members. I hope that this will eliminate any confusion or misperceptions that someone has caused with their dissemination of rumors and misinformation concerning this subject matter. Thank you for your interest, your questions, and your time. Please do not hesitate to contact my office for any further assistance. Chris White Executive Director of Governmental Affairs Office of the Principal Chief Osage Nation Cell 918.277.7997 Office 918.287.5435 Fax 918.287.5562 ccwhite@osagetribe.org

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Email: jim_ryan@grandecom.net