Seminole Nation Chief Greg P. Chilcoat issued the following statement Tuesday relating to the Nation’s taxation authority over nonmember oil and gas producers within the Seminole Reservation.

“As a sovereign nation predating the U.S. Constitution, the Seminole Nation has the inherent authority to levy severance taxes on nonmember oil and gas producers operating on the Seminole Nation’s trust and restricted lands.

As articulated by the Supreme Court in Merrion v. Jicarilla Apache Nation, tribal authority to levy taxes over nonmembers on trust and restricted lands stems from the tribe’s ‘right to exclude’ as well as the right ‘to control economic activity within its jurisdiction, and to defray the cost of providing governmental services.’

Therefore, nonmember oil and gas producers who have entered the Seminole Nation’s trust lands or restricted Indian allotments to benefit from oil and gas production are required to remit taxes to the Seminole Nation as prescribed under Title 33 of the Seminole Nation’s Code of Laws.

At this time, the Seminole Nation has not exerted taxation authority over nonmember oil and gas producers operating on fee simple land.”

Attorney General Mike Hunter Wednesday released the following statement after in response to Chilcoat’s announcement:

“In December, the attorney general sent the Seminole Nation a letter, asking the tribe to clarify its intent to tax producers in Seminole County after letters demanding the payment of Seminole Nation taxes were sent to oil and gas producers.

These letters were sent to oil and gas producers that are not members of the Seminole Nation nor were operating on Seminole trust land or restricted Indian allotments.

I appreciate Chief Greg Chilcoat for his statement today clarifying the tribe’s asserted taxation authority over oil and gas producers within Seminole County only extends to those produces operating on Seminole Nation trust land or restricted allotments, and not on any land owned by non-Indians.

This gives state officials and producers looking to do business in Oklahoma more certainty and a clearer path forward when operating. His move should also ease the concerns of those who thought this would be the subject of litigation, while strengthening our relationship with the Seminole Nation.”