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PHOENIX -- An ongoing dispute between the Hopi Tribe and St. Louis-based Peabody Energy Corp. threatens that company's plans to expand its mining operations on the Hopi Reservation in Arizona. "The chairman is not going to agree to any additional mining or agree to any additional leases until we resolve the water issue," said Hopi spokeswoman Claire Heywood.
Peabody purchases water from both the Hopi and Navajo Reservations to transport
coal to its Mohave Generation Station in Laughlin, Nev. The coal is slurried
273 miles through an underground pipeline that moves the equivalent of the capacity
of 50,000 railcars annually. The Hopis want the company to seek another water
source, as the tribe says Peabody's actions threaten its water supply, the 7,500-square-mile
Navajo Aquifer.
On behalf of the tribe and the Black Mesa Trust, Santa Fe, N. M.-based environmental
group Wild Angels recently filed a shareholder resolution with Lehman Brothers
Inc., Peabody's largest shareholder, to force the
company to reduce or eliminate its use of Navajo Aquifer water. Citing the most
recent study by the U.S. Geological Survey, the group claims Peabody takes 4,400
acre-feet of water per year for its slurrying
operations, while Hopi and Navajo use hovers around 3,000 acre-feet annually.
The aquifer is replenished at an annual rate of approximately 2,500 to 3,500
acre-feet, said Michael Stewartt of the environmental
group.
On Feb. 4, Peabody announced receipt of a notice of completeness from the Department
of the Interior's Office of Surface Mining regarding its updated permanent program
permit application for the Black Mesa Mine. The permit application marks the
start of Peabody's development process for a new reserve within its Arizona
lease area. The company, which has operated the mine since 1970, hopes to extend
its current lease beyond 2005; approval of the application would extend the
lease for up to 15 years.
"Continued operation
of the Black Mesa Mine is in the public interest and will provide long-term
economic benefits to the Hopi Tribe and the Navajo Nation," said John Wasik,
group executive for Peabody's
southwestern operations. "It also provides an essential and secure energy
supply for more than 1 million Southwest families who rely on the electricity."
In a Jan. 30 news release, Peabody said the mine will "inject about $1.5
billion in direct economic benefits into reservation communities in royalties,
taxes, wages and vendor contracts over the proposed
extension." The Black Mesa Mine has almost 250 employees; Native Americans
comprise 96 percent of the mine's work force and 82 percent of its supervisory
staff, Peabody said.
An impact analysis cited by Peabody says plans to increase pumping from the
Navajo Aquifer will not effect the Hopis' water supply. "Using this additional
water for the life of the mine would continue to equate to
withdrawing less than one-tenth of one percent of the 400 million acre feet
of water stored in the aquifer," the company said in its news release.
"Eleven major public and private water studies performed over
the past 30 years support this conclusion.
According to the news release, Peabody's updated application calls for a 12
year-plan to develop the J-23 coal reserve in the northeastern section of the
Hopi Reservation. In the application, the company calls
for increased coal production of up to 1.5 million tons annually. It presents
hydrologic impact assessments on the use of up to 5,700 acre-feet of water from
the aquifer for slurrying purposes. The increases in both coal production and
water use would begin in 2006, and would supply the Mohave station with fuel
enough to operate its planned environmental control systems.
"We respect cultural concerns about using the aquifer and remain fully
committed to seeking out an alternative," said Fred Palmer, Peabody's executive
vice president for legal and external affairs. "While these
discussions are under way, extensive study and monitoring of the aquifer will
continue. The nature of the regulatory review process requires Peabody to file
a routine environmental and engineering analysis years
in advance of the actual mining."
©2001 Indian Country Today COMMENTS?