[1][2] The case followed the earlier Supreme Court ruling Merrion v. Jicarilla Apache Tribe (1982), which approved of the Jicarilla Apache charging a severance tax for oil extraction on tribal land.

Accordingly, Cotton Petroleum, a non-Indian corporation, extracted oil and agreed to pay the tribe a 6% severance tax.

The Court applied Bracker balancing by weighing state, tribal, and federal interests.

[4][5] The amount collected in taxes, $2,293,953, far exceeded the value of the state services, but the Court held there was no "proportionality requirement.

"[4] The Court further explained that current case law allows states to impose non-discriminatory taxes on non-tribal entities that do business with tribes and noted that Congress may offer immunity if it chooses.