In April 2001, the Arizona state legislature passed a concurrent memorial passed which included official statements by the Navajo Nation and the Hopi tribe.

 

 A CONCURRENT MEMORIAL - SCM 1002

URGING THE CONGRESS OF THE UNITED STATES TO OPPOSE ANY EFFORT TO BREACH GLEN CANYON DAM OR TO DRAIN LAKE POWELL.

 

"Whereas, the Navajo Nation is concerned that the breaching of Glen Canyon Dam and the draining of Lake Powell would wreak disaster on the economic and social welfare of the Navajo Nation and would detrimentally and fundamentally alter the water preservation, delivery and supply system crafted by many decades of planning; and

 

Whereas, the Hopi Tribe does not believe that removing Glen Canyon Dam and attempting to restore the rivercourse is a viable or realistic option. Rather, the Hopi people encourage wise management and operation of the dam to protect their cultural and natural resources;"

 



Navajo Unemployment


The Navajo Nation supports the new Antelope Point Development for it's economic growth opportunities. Here are some other statistics that may be of interest to you.  In 1999, there were 250,000 members of the Navajo Nation.    Forty-six percent of the reservation's 165,600 residents was unemployed;  roughly 72,000 were under 18. (Ariz. Daily Star 12/14/99). 

 

Per capita income was only $5,599.  The poverty rate was 56%.  Total Salary and Benefits were $830 million.  Income from arts and crafts was $15 million. There were 824 employers on the Navajo Reservation.  The top 3 employers as of 12/31/97 were Peabody Western Coal Company (706 employees), Four Corners Power Plant (563) and the Navajo Generating Station (552). 

 


A Congressional hearing was called on September 23, 1997 to discuss the Sierra Club and Glen Canyon Institute’s proposals to drain Lake Powell. In preparation for the hearing, Representative John Shadegg of Arizona asked the Salt River Project for data on the potential economic effects of such a plan on the Navajo Power Project in Page, Arizona. The Navajo Power Project Fact Sheet was the result.

Navajo Power Project Fact Sheet

Updated 5/5/2000

Number of potentially displaced head of household jobs:

Indian Non-Indian Total
Navajo Generating Station full-time 303 231 534
Kayenta Mine full-time 380 40 420
Navajo Generating Station seasonal 255 45 300
Total 938 316 1,254

Annual costs of closing the Navajo Project:

Navajo Generating Station payroll- $47,600,000
Kayenta Mine payroll- $33,200,000
Mine royalties and fees paid to Navajo Nation- $25,400,000
Coconino County taxes paid by NGS -
(approximately $8.1 million to schools)
$11,100,000
Navajo Tribal Utility Authority Revenue - $1,400,000
Sale Tax (primarily coal and bulk chemicals) $9,800,000
NGS Materials and supplies purchased in Coconino County -
(An additional $13.9 million is spent in other Arizona counties)
$20,000,000
Increase in fuel and operating costs to utility customers -
(Fuel and operating costs for replacement combined cycle natural gas plants projected to be 24% higher than Navajo Project costs.
$98,200,000
Total Annual costs: $ 246,700,000

One time costs of closing the Navajo Project:

Replacement of NGS’s generating capacity with new combined cycle natural gas plants (2,250 megawatts net @ $550,000 a megawatt) $1,240,000,000
Estimated cost to decommission plant and mine - 137,000,000
Kayenta Mine & Joint Facilities net book value - 85,800,000
Navajo Generating Station net book value - I 736,000,000
Estimated lost value of homes for Page, LeChee, Kaibeto, Shonto, Kayenta, and Black Mesa, Arizona full-time employees:

172,100,000
Total one-time costs:  $2.4 billion dollars $2,370,900,000

 


 

Individuals supplied with electricity by the Navajo Project: 3,000,000


Assumes NGS’s production of 1,377,000,000 kiloWatt hours per month at 85% capacity is distributed to residents of Phoenix, Tucson, Los Angeles, and Las Vegas, where the average two and one half person household uses approximately 1,150kWh per month. Actual power deliveries include both business and residential customers 


Read below the Arizona Daily Sun article on the economic impact of coal royalties

"Peabody operates two mines in the Black Mesa vicinity through an agreement with the Navajos and Hopis. Its second, larger mine is the Kayenta Mine, which supplies coal to the Navajo Generating Station in Page. Combined, the mines have 650 employees --more than 90 percent of whom are Native American.

Both mines give the Hopi tribe 65 percent of its general annual revenue and the Navajo Nation 21 percent of its revenue, according to Peabody reports. "

Navajo President Joe Shirley has identified it as a crisis for the Navajo Nation and is working to keep the coal flowing.


Power plant shutdown rocks tribes

By SETH MULLER
Sun Staff Reporter
03/28/2004

The Mohave coal-fired electric plant in Laughlin, Nev., is expected to shut down for at least
3 and 1/2 years starting in 2006--a closure that would cost the Navajo and Hopi tribes a total of 240 jobs and $86 million a year in coal royalties.

Brian Katz, business manager with Mohave Generating Station's parent company, Southern California Edison, said Friday that a timeline longer than two years is anticipated to complete a water study to ensure continued delivery of the coal slurry.

The study comes with coal company Peabody Energy's plan to switch aquifers at the request of the Hopi tribe due to water supply concerns. Peabody is initiating studies to move off the Navajo aquifer and tap into the Coconino aquifer -- which also serves Flagstaff -- via well fields near Winslow.

On top of that is the timeline of upgrading emission controls at Mohave, a $1 billion-plus project that would take 30 months to complete. Katz said that gives Mohave Generating Station a tentative reopening date sometime in 2009, unless all parties take an aggressive approach to the process and work to shorten the timeline.

"We still have unresolved issues," said Katz, adding that Edison wants to have the water issue squared away before it considers the required emissions upgrades. "No one would make the investment if they didn't have a resolution of water and coal supply. We have to answer the question: Do we have water available for the coal slurry?"

TIME CRUNCH ON PEABODY, TRIBES

Peabody, which mines coal through an agreement with the Navajo and Hopi tribes, has moved into a serious nail-biting phase because its 35-year coal supply agreement to Mohave expires the same date as the start of the expected shutdown.

But the real nail-biters go to the tribal members because of the prospective job and revenue losses for both Hopis and Navajos. The smaller Hopi tribe stands to lose $7.7 million a year, which is one-third of its general annual revenues, according to tribe spokeswoman Vanessa Charles.

"Unfortunately, if the Mohave Generating Station shuts down, the Black Mesa Mine will follow because of exclusive rights (Edison) has for that coal," said Beth Sutton, spokeswoman with Peabody.

Edison signed an out-of-court settlement with the Flagstaff-based Grand Canyon Trust and other groups that sued the Mohave plant six years ago. They agreed to have the plant up to the desired pollution control standard by Jan. 1, 2006.

However, the company has not moved to start improvements on the plant because of the aquifer question. And attempts to extend the deadline on the consent decree have been unsuccessful, according to Katz.

 

"It's extremely likely the Mohave will shut down, at least for some time," said Rick Moore with the Grand Canyon Trust.

Sutton said that Peabody is moving forward with getting off the N-aquifer, which supplies pristine well water that's used to slurry coal to Mohave via a 273-mile pipeline, and using the less pristine waters of the C-aquifer.

Studies have determined that the C-aquifer holds 400 million acre-feet and is more than three times larger than the N-aquifer. It is the aquifer tapped by municipal and private wells throughout the Flagstaff region and during years of normal precipitation has an annual recharge that far exceeds losses from groundwater pumping.

The pipeline would deliver 6,000 acre-feet a year for the coal slurry, and could lead to additional water infrastructure development for the tribes, both of which could tap into the line.

But this new venture will require further study on how the pumping could affect the groundwater and the construction of a $100 million to $200 million pipeline to deliver the water to the mine 140 miles to the north.

CONCERN OF PERMANENT CLOSURE

In addition to water supply, Peabody and the tribes have a greater concern that Mohave will shut down completely.

Edison has turned to the California Public Utilities Commission for guidance. It has asked the commission to decide whether it is in the public interest to shut down the plant or continue operation of the plant, which provides electricity to 1.5 million homes, mainly in California.

The commission held a conference in February to listen to stakeholders as it moves toward its final decision, but a final hearing date has not been set.

Meanwhile, the tribes are taking this as a high priority. Navajo President Joe Shirley has identified it as a crisis for the Navajo Nation and is working to keep the coal flowing.

"President Shirley has been monitoring this and aggressively working toward maintaining the jobs and revenue for the Navajo Nation," said Deana Jackson, spokeswoman for the president's office. "He has had numerous meetings with all of the partners and entities."

Charles explained that the tribe is facing serious financial questions this year. It could end up losing some or all of its coal revenue, and, in May, its citizens will vote on whether to build a casino near Winslow or lease out its slots to another tribe.

"The two are not directly linked," Charles said of the potential loss of coal revenue and the casino vote. "But these things have forced the tribe into a precarious position."

Peabody operates two mines in the Black Mesa vicinity through an agreement with the Navajos and Hopis. Its second, larger mine is the Kayenta Mine, which supplies coal to the Navajo Generating Station in Page. Combined, the mines have 650 employees --more than 90 percent of whom are Native American.

Both mines give the Hopi tribe 65 percent of its general annual revenue and the Navajo Nation 21 percent of its revenue, according to Peabody reports.

As far as Edison, it generates 850 megawatts with Mohave and has a combined 5,000 megawatt output from its southern California plants. Katz said it has been using Mohave as a way to "hedge" costs to generate electricity because coal is affordable when compared to natural gas, which has experienced a volatile market.

Katz said Edison is willing to make the permanent shutdown of Mohave if the entities and companies "are unable to resolve issues."

Brian Dunfee with Peabody said that he believes that, one way or another, everything will be settled and the mine will continue operating and delivering coal.

"We're confident we'll resolve this because there's so much at stake," Dunfee said.

 

 

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