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                          ATTACHMENT 3
         SAMPLE TRIBAL LAND BIDDING CREDIT CALCULATIONS

Method for calculating the credit.  The credit is calculated by using the total number of square
kilometers of qualifying tribal land to be served in the market and then applying the credit limit
"cap" based on the winning bid.

Gross Credit = $300,000 + (Total square kilometers - 518) * ($1,500/2.59)

Where:
     ·    $300,000 is the amount toward the first 518 square kilometers;
     ·    (Total square kilometers -518) is the number of square kilometers exceeding 518; and
     ·    $1,500/2.59 is the amount toward the credit for each square kilometer exceeding 518.


If high bid is 
Then Net Credit after application of cap is 


<= $1,000,000
Not to exceed High Bid * (0.5)


> $1,000,000 and <= $2,000,000
Not to exceed $500,000


> $2,000,000
Not to exceed High Bid * (0.25)



Example #1.  Suppose the winning bid in a future auction for EA 31 was $750,000.  Upon filing its
long form application the winning bidder elects to seek a credit with respect to the Big Cypress Reservation
(214 square km in EA 31) and the Miccosukee Reservation (332 square kilometers in EA 31).

Total square km in EA 31 towards credit = 214 + 332 = 546

Gross Credit = $300,000 + (546-518) * ($1,500/2.59) = $316,216.22 $316,216.21

Net Credit (after application of 50% cap) = $316,216.21
 
Example #2.  Suppose the winning bid in a future auction for BEA 109 was $1,500,000.  Upon filing
its long form application the winning bidder elects to seek a credit with respect to the Fond du Lac Reservation
(438 square km in BEA 109).

Total square km in BEA 109 towards credit = 438

Gross Credit = $300,000

Net Credit (after application of $500,000 cap) = $300,000
     Example #3.  Suppose the winning bid in a future auction for EA 107 was $3,000,000. 
Upon filing its long form application the winning bidder elects to seek a credit with respect to all
qualifying tribal lands in the EA, i.e., the Leech Lake Reservation (2,185 square km in EA 107),
the Red Lake Reservation (2,686 square km in EA 107), and the White Earth Reservation (370
square km in EA 107).

Total square km in EA 107 towards credit = 2,185 + 2,686 + 370 = 5,241

Gross Credit = $300,000 + (5,241-518) * ($1,500/2.59) = $3,035,328.19 $3,035,328.10.

Net Credit (after application of 25% cap) = $750,000