NAVAJO NATION DEPARTMENT OF JUSTICE OFFICE OF THE ATTORNEY GENERAL NAVAJO NATION OFFICE OF ATTORNEY GENERAL

NAVAJO NATION DEPARTMENT OF JUSTICE OFFICE OF THE ATTORNEY GENERAL ETHEL B. BRANCH ATTORNEY GENERAL RODGERICK T. BEGAY DEPUTY ATTORNEY GENERAL NAVAJO NATION OFFICE OF ATTORNEY GENERAL Ethel B. Branch, Attorney General Telephone #: (928) 871-6345 Email: ebranch@nndoj.org FY 2017 Third Quarter Report (April, May, June 2017) TABLE OF CONTENTS Page No. I. EXECUTIVE SUMMARY 2 II. CRITICAL ISSUES 3 III. PROJECT STATUS 4

Office of Attorney General - FY 2017 Third Quarter Report Page 2 I. EXECUTIVE SUMMARY The Department of Justice ( DOJ ) consists of the Office of the Attorney General ( OAG ) which oversees the following: 1) Litigation & Employment Unit; 2) Human Services & Government Unit; 3) Natural Resources Unit; 4) Economic/Community Development Unit; 5) Tax & Finance Unit; and 6) Water Rights Unit. The Office of the Attorney General also oversees the Navajo-Hopi Legal Services Program and the Office of the Prosecutor/Juvenile Justice. The unmet need budget for the entire DOJ for FY17 at the beginning of the fiscal year was $1,573,487. Of that amount, DOJ reported that for OAG personnel alone, $994,210 was needed to restore 336 hours for 20 Professional Staff employees. As a result, OAG imposed a hiring freeze for certain vacant positions in order to benefit from personnel savings in order to assist with our shortfall. Other funds were also redirected in order to cover the OAG shortfall. In this quarter DOJ secured three victories before federal courts of appeal. We had two Tenth Circuit victories in Public Service Company of NM v. Approximately 15.49 Acres of Land (affirming that the Nation s partial ownership of allotments is sufficient to allow the Nation to block condemnation of the land) and Board of Education for the Gallup-McKinley Schools v. Henderson (affirming the lower court s dismissal of the case, which challenges application of the NPEA to Gallup-McKinley County school district employees). We also had a Ninth Circuit win in Window Rock Unified School District v. Nez. We expect the school district will petition the Supreme Court for review. More details follow below. DOJ, with the assistance of outside counsel also prevailed before the Court of Appeals of the District of Columbia this quarter in the Nation s challenge to the District Court s denial of the Nation s motion for summary judgment in the Nation s claim that the Bureau of Indian Affairs owes the Nation $15.6 million plus interest in improperly withheld 638 funding for the Nation s Judicial Branch operations in 2014. This matter has been remanded to the District Court for further disposition. DOJ, along with outside counsel, was also able to secure a significant uranium cleanup settlement this quarter. The United States District Court for the District of Arizona approved a Consent Decree settling claims brought by the Navajo Nation and the U.S. (on behalf of U.S. EPA) against Cyprus Amax Minerals Company and Western Nuclear, Inc., two affiliated subsidiaries of Freeport-McMoran, Inc. Approval of the Consent Decree means that cleanup can now begin at 94 of the abandoned uranium mines on the Navajo Nation, which represents almost one-fifth of the total number of such sites. DOJ, with the assistance of outside counsel, was also successful in charging the former To Nanees Dizi Chapter Executive Manager with 86 counts of fraud, theft, and falsification this quarter. In total, the Nation is seeking repayment of $1,059,896 from defendant. This quarter honorable Delegate Otto Tso introduced white collar crime amendments to Title 17 that were recommended by DOJ, the Office of the Prosecutor, Judicial Branch, Navajo

Office of Attorney General - FY 2017 Third Quarter Report Page 3 Department of Public Safety, Navajo Public Defender s Office, and Kayenta Township. This work group also proposed amendments to the Rules of Criminal Procedure this quarter, and continues to develop additional amendments to Title 17 and the Rules to further improve the delivery of justice on the Nation. We are very thankful to Delegate Tso, Chair Yazzie, and the members of the Law and Order Committee for their steadfast leadership and support in strengthening our criminal justice system. On May 24, 2017, several DOJ staff participated in a Day of Service wherein we assisted in providing renovations to an elder s Hogan in the Inscription House community. We also continued our annual tradition of cleaning up a mile along Highway 112 in Fort Defiance for Earth Day. II. CRITICAL ISSUES A. Staffing Shortage for the Office of the Prosecutor The Office of the Prosecutor has managed to fill all but two of its Prosecutor and Juvenile Presenting Officer positions. In her short time with us, the new Chief Prosecutor has filled seven Attorney, Prosecutor, and Juvenile Presenting Officer positions. This is despite the severe shortage of housing on the Nation, especially for professionals. Aggressive recruiting efforts will continue and the Office plans to fill all remaining vacant positions by the end of FY17. As a result, a full budget for FY18 will be needed and appreciated. Last year the Office had an unmet need for personnel of $189,218. B. OAG Staffing Shortage & Budget When DOJ recently submitted its proposed budget for FY18, we provided information showing what DOJ has requested every year since FY14 and how much DOJ was underfunded in each year. As a result, it forced DOJ to submit budgets showing a prorated salary budget for part of the year for Professional Staff employees. For FY17, the DOJ unmet need at the beginning of the fiscal year for OAG totaled $1,033,563.00. Of that amount, $994,210 was needed to cover personnel expenses for the entire year. As a result, for 28 employees, OAG submitted a budget to cover those salaries from October 2016 to July 2017. Prior to informing those employees that we will cover their salaries to the end of the fiscal year, three (3) highly qualified attorneys recently resigned. Our recruitment success over the past two years was short-lived. We now have a staffing shortage again and we intend to fill all vacancies. In doing so, we need the support from Council and OPVP to provide a full budget for FY18.

Office of Attorney General - FY 2017 Third Quarter Report Page 4 III. PROJECT(S) STATUS This quarterly report provides a high level summary of the projects that the attorneys of DOJ have worked on this quarter. If more information is needed, please request a meeting on the subject. A. The Gold King Mine Spill The law firm of Hueston Hennigan continues to serve as contract counsel on this matter and works closely with the AG and the LEU AAG on filings and case strategy. Several defendants, including the USEPA, have filed motions to dismiss. DOJ, through outside counsel, has filed responses to those motions. We have not yet received rulings by the court on these motions. Meanwhile we have filed a motion for leave to amend the Nation s complaint to add the Nation s Federal Tort Claims Act claims that were rejected by USEPA in January. DOJ recommends a private briefing for additional information. B. Navajo Nation Criminal and Juvenile Cases The Prosecutor s Office is tasked with enforcing certain provisions of the Alchini Bi Beehazaani Act, certain provisions of the Traffic Code in Title 14, and all of the criminal complaints filed under Title 17. These cases are filed in the twelve (12) active Navajo Nation District Courts. In the third quarter, of 3015 criminal referrals, 1515 cases were filed. For juvenile matters, of 203 total referrals, there were 129 cases filed. The Chief Prosecutor led efforts to present a proposal for a Navajo Nation Employee Limited License for consideration by the Navajo Nation Bar Association ( NNBA ). The proposal would help recruit attorneys who are state barred but not licensed on the Navajo Nation. Such attorneys could be allowed to prosecute crimes while they await taking and passing the Navajo Bar Exam. The NNBA has not rendered a decision on the proposal. All prosecutorial staff are now connected via Sharepoint and all legal secretaries are working daily on Justware, which is the case management software managed by the Judicial Branch. Sharepoint enables the Office to more easily share resources and information among the Nation s 9 Prosecutor District Offices. The Chief Prosecutor also created the Legal Secretary Handbook this quarter. C. Navajo and Hopi Settlement Act issues Navajo-Hopi Legal Services Legal Services Program ( NHLSP ) provides legal services to Navajos denied benefits by a certifying officer from the Office of Navajo and Hopi Indian Relocation ( ONHIR ). The certifying officer s decision may be appealed to the administrative hearing agency within ONHIR, and then to Federal District Court.

Office of Attorney General - FY 2017 Third Quarter Report Page 5 Since October 2014, ONHIR has certified only four applicants as being eligible for benefits. In that same time period, Hearing Officer Merkow has denied 109 of 112 appeals. This includes the 5 appeals that were denied this quarter. Currently, there remain 67 active administrative appeals pending, which ONHIR plans to conclude by December 2017. D. Public Service Company of NM v. Approximately 15.49 Acres of Land, No. 16-2050. Tenth Circuit Court of Appeals The Public Service Company of New Mexico ( PNM ) sued several owners of interest in several allotments to condemn them for use as a right-of-way for their electrical power lines. The Nation owns interests in two of those allotments. We filed a motion to dismiss arguing that we have sovereign immunity and we are an indispensable party. The Court granted our motion but issued four certified questions to the Tenth Circuit Court of Appeals. On January 17, Assistant Attorney General Paul Spruhan presented oral arguments to the Tenth Circuit Court of Appeals. On May 26, the Tenth Circuit ruled in the Nation s favor holding that allotments could not be condemned under Section 357 because they were no longer allotments once a tribe acquired an ownership interest. More interesting is a footnote in the ruling where the Court agreed with the lower court s ruling on sovereign immunity. While we celebrate a victory, PNM has sought en banc review. An appeal to the U.S. Supreme Court is also a possibility. E. Board of Education for the Gallup-McKinley Schools v. Henderson, No. 16-2011, Tenth Circuit The Gallup School District won an employment challenge in the Navajo Supreme Court. However, despite their victory, they still challenged the Navajo Court s assertion of jurisdiction over their state-funded school. The matter was first considered by the U.S. District Court of New Mexico and the Litigation & Employment Unit filed a motion to dismiss which the court granted. The School appealed to the Tenth Circuit Court of Appeals. On April 27, 2017, Katherine Belzowski of DOJ argued in support of affirmation of the lower court s dismissal of the case. On June 19, 2017, the Tenth Circuit issued a decision affirming the dismissal. F. Navajo Generating Station It is now common knowledge that the NGS owners would like the Navajo Nation to execute an agreement by July 1, 2017 in order to avoid shut down. The agreement is referred to as the Replacement Lease, which seeks to extend operation to the end of 2019 and to clarify the decommissioning process. In this quarter, DOJ participated in at least 14 Task Force meetings which do not include the other internal meetings and Council and Committee meetings. DOJ has devoted a considerable amount of time to this matter and will continue to do so. G. Human Trafficking Legislation

Office of Attorney General - FY 2017 Third Quarter Report Page 6 In the second quarter, one DOJ attorney attended the Human Trafficking in Indian Country Seminar. This helped provide assistance to Delegate Brown and Delegate Crotty with amendments to legislation number 0117-17, which amends the Criminal Code to prohibit human trafficking on the Navajo Nation. This is currently pending before the Naabik íyáti Committee. H. Audit Support DOJ assists many programs with audit responses and appeals. 1. Department of Family Services (DFS) A 2015 audit finding resulted in disallowed cost determinations to be issued against DFS. DOJ filed an appeal to the BIA and several meetings were held during the third quarter; and 2. Department of Workforce Development the Department revised its CAP for the single audit responses. DOJ reviewed and provided advice to the Department, OMB, and OOC to ensure that the Nation s response complies with all necessary policies and statutes. I. Telecommunication Siting Regulation and Leasing Procedures DOJ provided assistance to the Navajo Telecommunications (NNTRC), Division of Natural Resources, and the newly created Navajo General Land Development Department. This group made major strides in updating the Navajo Nation Telecommunication Siting Regulation and Leasing Procedures. On May 12, 2017 the NNTRC published the second draft of the proposed Regulations. The group also filed the following comments with the Federal Communication Commission on behalf on the Navajo Nation regarding two separate Notices of Proposed Rule Making and Notice of Inquiry: (1) WT Docket 16-421 Deployment of Small Cell Infrastructure by Improving Wireless Facilities Siting Policies, and (2) WT Docket 17-79 Accelerating Wireless Broadband Deployment by Removing Barriers to Infrastructure Investment. K. Arizona Gaming Compact OAG and ECDU have been participating in all meetings and events surrounding the recent efforts to amend the existing Arizona Gaming Compact. Due to the sensitive nature of this project, DOJ recommends a private briefing. L. Procurement Code In 2016, several DOJ attorneys revived the effort to analyze how the Procurement Code and Procurement Regulations could be amended. In 2017, the Budget & Finance Committee created a subcommittee to basically do the same. As a result, the DOJ group has been assisting the Subcommittee in providing public hearings and receiving comments from those presentations. In this quarter, DOJ participated in four

Office of Attorney General - FY 2017 Third Quarter Report Page 7 subcommittee meetings and one public hearing. This is an on-going project. M. Division of Public Safety 1. On June 14, 2017, DOJ participated in SORNA meeting in Shiprock. Representatives from US Probation, New Mexico Probation, San Juan County Probation and NN Shiprock Probation participated in the meeting. SORNA officers from all 7 police districts reported on their monthly activity, and specific collaboration efforts were discussed and decided upon. 2. NPD has cross-commission agreements with several law enforcement agencies. Preparation is in progress to conduct training for Arizona Highway Patrol, New Mexico State Police and McKinley County on June 26-27, 2017. Training site is on UNM-Gallup campus. 3. On May 5, 2017, NNDOJ and Shiprock Criminal Investigation hosted the biannual meeting between federal law enforcement agencies and NN. Extradition and federal detainer issues comprised the main topic of discussion. The accomplishment of the meeting was that all agencies were able to discuss problems and concerns that had arisen since the last bi-annual meeting. 4. On April 25, 2017, DOJ participated in meeting on topic of NN leasing jail beds to inmates sentenced by magistrate courts in Apache County. Participants included Apache County Sheriff and his staff, Apache County DA, NDPS and DOC and Holyan. Meeting ended with decision that Apache County would draft the initial agreement and submit to NDPS for our review. 5. On April 6, 2017, DOJ met with attorneys from Arizona Governor s Office and Arizona Department of Public Safety to discuss revisions that Arizona wants in the law enforcement agreement between NN and Arizona DPS. We have reached agreement on revisions, and the signed originals have been delivered and NPD will process them through the 164 review. 6. On June 16, 2017, DOJ participated in a teleconference call with Allison Spratlin, the person who manages the USDOJ Tribal Access Program ( TAP ). We discussed in detail the design and structure of TAP as it would apply to the four agreements that are necessary for NN to implement TAP. N. Alamo Navajo Community School Board The Department of Dine Education (DODE) wanted to assert control of the schools after receiving notice that there was no school board. The Window Rock District Court issued a Temporary Restraining Order which prevented the Office of Hearings & Appeals to conduct a Due Process Hearing. The Court has not scheduled a hearing date for the TRO.

Office of Attorney General - FY 2017 Third Quarter Report Page 8 O. Insurance P. Youth DOJ assists the Navajo Nation Insurance Services Department and contract counsel with all pending and potential insurance liability claims/cases involving the Navajo Nation and its covered entities. This includes work from the Worker s Compensation Program, Group Benefits Office, and the Navajo Nation Insurance Commission. This also includes work from these programs for Chapter governments and enterprises. In this quarter, four new claims were filed under the Federal Tort Claims Act. The Human Services & Government Unit provides assistance in many children matters: 1. ICWA. In addition to being involved with the five open ICWA cases, the Unit also conducted case staffings with the ICWA social workers. Additionally, two DOJ attorneys presented on the status of ICWA at the Navajo Nation Bar Association Conference on June 8, 2017; 2. Child Support Enforcement. There was a significant backlog of these cases. There is only one Tribal Court Advocate assigned to cover the workload but he is making progress. In the third quarter, he estimates filing 150 Motions for Hearings in all five (5) agencies that need to be adjudicated by the Office of Hearings and Appeals. Additionally, he has filed and received over 300 child support orders. Meetings were also held between DOJ and Child Support Services to create a new attorney position; and 3. DOJ represents the Department of Self Reliance in appeals before the Office of Hearings and Appeals. In this quarter, all pending appeals were resolved and OHA is expected to issue orders of dismissals. Q. Johnson Road DOJ attended several meetings with NDOT, Twin Lakes Chapter and McKinley County regarding the Johnson Road Project (paving & realignment of existing road), which NDOT is overseeing on behalf of the chapter. RDC had approved a ROW for McKinley County, which was supposed to cover a realignment of the existing road. However, upon closer review of the cultural resources form (HPD-98-688) submitted with the ROW legislation, it was determined that the clearance was for the existing road only and did not include the realignment. NDOT walked through the area covering the proposed realignment and discovered additional archaeological sites. McKinley County was given an option to either (1) have an archaeological survey done covering the realignment or (2) stay within the existing road. McKinley County opted to go with option 2 as they did not have the funds to cover the archaeological survey. McKinley County is working on amending/correcting the original legislation to cover work on the existing road only.

Office of Attorney General - FY 2017 Third Quarter Report Page 9 R. Bears Ears The AG met with Secretary Zinke, along with leaders from the 5 Coalition tribes, to advocate for protection of the Bears Ears National Monument. She also met with Jim Cason, Acting Deputy Secretary, along with representatives from the 5 Coalition tribes as well as their counsel, to educate the Acting Deputy Secretary on the Monument and to advocate for protection of the Monument. The Secretary issued his report on the Monument in early June and postponed issuance of a clear recommendation until a later date. The comment period on the Monument has been extended. DOJ attorneys have been attending Commission meetings and will continue to monitor and assist. S. Uranium 1. Navajo Uranium Working Group - In November, the Navajo Uranium Working Group was established to address the abandoned uranium mines. The Working Group includes DOJ, Navajo Abandoned Mine Lands Department, Reclamation- UMTRA Department, Navajo EPA Superfund Project, and OPVP. The Group meets on a bi-monthly basis and therefore DOJ attended five meetings in the third quarter. 2. U.S. EPA Navajo Abandoned Uranium Mines Coordination Group Along with the Navajo Superfund Project and the Navajo Abandoned Mine Land Project, DOJ continues to participate in weekly conference calls with the Group. 3. DOJ drafted MOAs to include the Navajo Abandoned Mine Lands Program as an entity to work with the NNEPA on the Nation s AUM activity. 4. With the assistance of outside counsel, DOJ is working on the implementation of the Phase 2 settlement with the U.S. Derrith Watchman-Moore was selected as the Phase 2 RSE Trustee. Soon work will begin on performing Removal Site Evaluations at 30 uranium mine sites. Thereafter, another Trustee will be needed for the Phase 2 Priority Orphan Trust who will be responsible for cleanup of mines being investigated under the Phase 1 settlement and other projects. 5. A significant settlement with Freeport McMoRan Inc., was entered during this quarter. It provides for RSEs and CERCLA cleanup actions at 94 uranium mine sites. This is expected to entail substantial involvement by Navajo DOJ. T. Law Enforcement by the Division of Natural Resources DOJ participated in a series of meetings and working groups to address DNR specific law enforcement commissioning and authority concerns. As a result, DOJ has been assisting with code amendments. U. Navajo Housing Authority

Office of Attorney General - FY 2017 Third Quarter Report Page 10 In 2013, the U.S. Housing & Urban Development (HUD) claimed that NHA failed to implement its FY12 Indian Housing Plan and provided notice of intent to take back $105 million. After informal meetings with HUD, HUD demanded return of $96 million. After settlement negotiations failed, the matter proceeded to Administrative Review. In June 2015, NHA argued its case before the Administrative Law Judge (ALJ). In December 2015, the ALJ decided against NHA and ruled that NHA needed to return the $96 million. NHA appealed the ALJ decision to the Secretary of HUD. In May 2016, the Secretary issued an order basically agreeing entirely with the ALJ decision. In July 2016, NHA then appealed to the Ninth Circuit Court of Appeals. The Ninth Circuit appointed a mediator to determine the feasibility of settlement. Settlement discussions are ongoing. A newspaper article in the Arizona Republic in early 2017 led to a visit of NHA by representatives from HUD and Senator John McCain on April 18, 2017. Since that time, there has been an emergency legislation to replace the existing Board and an internal investigation started. This too is ongoing. V. Lease for the Arizona Department of Economic Security ( ADES ) ADES is a state entity leasing within Navajo trust land. The state attorneys have been insistent upon numerous amendments to Parts I and II of the Nation s standard business site lease. There have been several meetings between DOJ and the Arizona Office of Attorney General to resolve this issue. In this quarter, meetings between the Chinle Chapter, ADES, and OPVP have been held. Additionally, the Attorney General also met with the Arizona Attorney General s office. This matter will likely be resolved soon. W. Local Governance Act Last year, a Task Force was created to amend Title 26. As commonly known, Regionalization was proposed and legislation was drafted to implement revisions through a referendum. However, that effort failed. In this quarter, meetings were held to revive the effort to amend Title 26. X. Navajo Nation Public Safety Summit The first quarterly follow-up meeting from the Public Safety Summit took place. Public Safety partners provided updates on their progress over the last quarter and developed action items for the next quarter. The partners are focused on action items that are achievable with existing resources that will strengthen the operation of the Nation s overall Public Safety System. Y. Protocol for 2017 Eagle Gathering At the Joint Commission s annual meeting held last September, Judge Fields requested

Office of Attorney General - FY 2017 Third Quarter Report Page 11 that Navajo and Hopi attempt to work out a mutually agreeable eagle gathering protocol for the 2017 season. After a series of phone calls and emails, an acceptable was finalized in May 2017. Z. Navajo Water Rights 1. The San Juan River Basin (NM). WRU is engaged in asserting and protecting the Nation s water rights claims in the basin-wide San Juan River Basin Adjudication (New Mexico v. United States, New Mexico Dist. Ct., 11th Judicial District, No. 74-184, filed in 1974) and the four appeals of the Navajo Inter Se proceeding (Subfile AB-07-01), in which the state District Court approved the settlement of the Nation s claims in the basin. The Unit also provides legal advice regarding the implementation of the Navajo settlement and to the NIIP (Navajo Indian Irrigation Project) Task Force, and participates in the San Juan River Recovery Implementation Program, and the Animas-La Plata Project (ALP) Operation and Maintenance Association. 2. Zuni River Basin (NM). WRU attorneys are counsel of record in the Zuni River Basin Adjudication, United States v. State of New Mexico, et al. CIV 6:01-0072- MV-WPL, U.S. District Court, D. New Mexico (filed in 1999). The claims of the Nation (Case 12-cv-1298 MV/WPL) and the Zuni Tribe (Case 07-cv-00681-MV- WPL) are proceeding on separate tracks. Settlement negotiations between the two tribes, the United States and the State are focused primarily on reaching consensus on a hydrologic model for the basin that could be used both to evaluate impacts of development of the tribes claims and as a tool to administer a future decree. 3. Little Colorado River Basin (AZ). WRU attorneys are counsel of record with the McElroy law firm in the LCR Adjudication (filed in 1979), In re the General Adjudication to Use Water from the Little Colorado River System and Source, Civil Case No. 6417, Superior Court for Apache County. WRU attorneys also participate in Arizona Southwest Navajo Technical Advisory Group (TAG) meetings addressing on-going water development efforts. 4. Colorado River Basin (AZ). WRU attorneys are counsel of record with the McElroy law firm in Navajo Nation v. Department of the Interior, Ninth Circuit Court of Appeals, CIV 14-16864, an appeal of the District Court action filed in 2003 challenging the Secretary s decisions concerning the management of the Lower Colorado River for failure to comply with NEPA and her fiduciary duties to the Nation. WRU attorneys monitor developments on the Colorado River, including participating in the Ten Tribes Partnership and the Western Navajo Pipeline TAG, in efforts to identify additional opportunities to advance the Nation s water rights claims. 5. San Juan River Basin (UT). WRU attorneys have been in negotiations with the State of Utah since 2003, and including the United States (since appointment of a

Office of Attorney General - FY 2017 Third Quarter Report Page 12 Federal Negotiation Team in 2013), to settle the Nation s water rights claims in Utah. WRU attorneys also participate in Utah TAG meetings addressing on-going water development efforts. AA. Window Rock Unified School District v. Nez, Ninth Circuit The Ninth Circuit recently ruled in Window Rock Unified School District v. Nez, requiring two Arizona school districts that operate on Navajo trust land to present their case before the Nation s courts so our courts can make the initial determination of whether Navajo jurisdiction applies to those cases. This is a strong affirmation of the tribal exhaustion principle. This also affirms the Nation s consistent and long-held position that our treaty and sovereign authority apply to all entities that lease our land, including school districts organized under state law. Assistant Attorney General Paul Spruhan argued the case at the District Court level and before the Ninth Circuit. The Court relied on the Navajo Nation s Treaty of 1868 as the basis for a possible finding by the Nation s courts that the Nation retains sovereignty over all tribally-owned lands. Judge Michelle T. Friedland wrote for the majority, it is at least plausible that the Tribe has adjudicative jurisdiction here because the conduct occurred on the tribal land, where the Nation has the right to exclude. The Court also noted that the disputes at issue arise on tribal trust lands, and so the Montana rule does not apply. The Ninth Circuit accordingly dismissed the federal case due to the school districts failure to exhaust tribal remedies. We expect the school district to petition the U.S. Supreme Court for review.