CNE, Siloam Springs at Odds Over Utilities

Cherokee Nation Enterprises has notified the City of Siloam Springs, Ark. that they have elected to continue to contract with their current provider of electricity for their new 200,000-SF casino in West Siloam Springs, Okla.
In June 2007, CNE indicated through a letter of intent that they had selected Siloam Springs to provide their water, sewer and electrical services to the new casino facility. Siloam Springs City officials were recently notified CNE was pulling out of the agreement and had elected to receive electricity from their current provider, North Eastern Oklahoma Electric Cooperative.
CNE gave no reason for opting to use their current provider. However, CNE’s current provider of electricity did challenge Siloam Springs in a lawsuit along with the Oklahoma Conservation Commission, questioning the legality of the city’s plan to provide service within Oklahoma.
CNE indicated they wanted to continue with the water and sewer utility service part of the agreement with the City of Siloam Springs, but the city declined the offer, expressing interest in only providing the casino with “the whole package.”
CNE will now be responsible for lining up another water and sewer provider.
The City of Siloam Springs’ current contract provides water and sewer service to West Siloam Springs, which in turn, provides for the current CNE facility in West Siloam Springs.
However, provisions limit the amount of water that West Siloam Springs may sell to any one provider.
West Siloam Springs is unable to install any additional water lines greater than two inches in diameter without the approval of the City of Siloam Springs Board of Directors.
The new casino will require eight-inch water lines.

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