by JIM
MANIACI
The
Laughlin Nevada Times
28 July 2004
WINDOW
ROCK—A meeting in Albuquerque about keeping the Mohave
Generating Station and Black Mesa Mine open past Dec.
31, 2005, lined up with the mine operator’s efforts
for several years.
U.S.
Interior Department Assistant Secretary for Indian Trust
Affairs, J. Steven Griles, assembled the gathering of
about three dozen representatives of the principals who
agreed to work as quickly as possible for the salvation
of the power plant in Laughlin, Nev., which obtains its
coal from the mine on the Navajo and Hopi Reservations.
At
stake are about 600 jobs and sizable portions of the two
tribes’ treasuries.
Southern
California Edison manages the plant for a group of
private and government utilities; Peabody Energy
operates the mine whose entire coal production goes to
the two-unit, 1,500 megawatt plant just a stone’s
throw from Casino Drive on the Colorado River’s west
side.
“Our
objective is to avoid or minimize the shutdown of
Mohave. We’ve been working with the Navajo Nation,
Hopi Tribe, the Mohave owners and the U.S. Department of
Interior for several years to create solutions that all
parties will support,” the Peabody press office said.
Peabody
also said its agreements with the two tribes allow it to
use the high-quality, deep Navajo “N” Aquifer water
as long as it is mining the coal. The company pointed
out it supports using another source of water out of
respect for cultural concerns which have been expressed.
The
company maintains the “resource remains healthy and
robust” and that they will use less than one-tenth of
one percent of the water stored in the deep aquifer. The
wells go down about 3,700 feet and are cased to at least
2,000 feet. Therefore, the company maintains, they do
not materially affect the shallow surface wells which go
down about 300 feet.
The
world-wide coal company headquartered in St. Louis said
some of the previous concerns with Mohave’s owners
have been satisfied, such as the quality and quantity of
coal. The precious fuel source would be washed to reduce
the sulfur content to an acceptable level. With the
increased efficiency from the remodeling of Mohave for
the installation of air pollution control equipment, an
additional 1 million tons a year would be needed,
raising the consumption to 5.5 million tons a year.
Peabody
said the latest figures in the discussions show the
20-year extension of the coal supply agreement with
Edison is worth $2 billion in direct economic benefits
to the tribes — $86 million a year for two decades.
Its payments to the two tribal governments supply 13
percent of the Navajo Nation general fund and 23 percent
of the annual revenue of the Hopi Tribe, the press
office said.
Navajo
officials have used the figure of $25 million a year as
the hit on the treasury of the largest Indian government
in America starting in fiscal year 2006, since Mohave
must shut down on Jan. 1, 2006, if it does not have the
air pollution control equipment installed. With the
Window Rock government’s general fund expected to take
in a gross of $140 million in fiscal year 2005, the $25
million would equal about 18 percent.
Peabody
added the new contract would insure the continuation of
low-cost electricity to 1.5 million families in the Las
Vegas, Los Angeles and Phoenix areas.
The
supply contract between Edison and Peabody expires Dec.
31, 2005, which is the same date the two tribes have set
to halt the pumping of the “N” Aquifer.
The
Interior Department’s Reclamation Bureau is to do the
“C” Aquifer feasibility study and environmental
impact statement. The Navajo Nation presidential press
office has put the cost of the project at $100 million
to $180 million since about 100 miles of new line would
have to be built from the Canyon Diablo well field,
north of Interstate 40 between Winslow and Flagstaff, to
the mesa. The existing 18-inch line would be replaced
with a larger one, although Peabody said the size would
vary depending on several factors.
Peabody
wants to increase its water consumption from 4,400
acre-feet to 6,000 acre-feet because of the use of more
coal. The coal is ground into dust and mixed 50-50 with
water to form a slurry which is pumped 273 miles with a
drop of about 7,000 feet. The feasibility study and
impact statement would include a modeling of the “C”
Aquifer section being targeted, Peabody said.
Edison
has said the cost of the huge interstate project will be
at least $1 billion overall.
Participants
set a July 31 deadline for their plans to fast-track the
project, with Griles to meet with Navajo Nation
president Joe Shirley Jr., Hopi Tribe Chairman Wayne
Taylor and Harold Roy of Edison the first week of
August.
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