HERE AT NAVAJO COUNCIL WORK SESSION ON LEGISLATION 0367-13 WHICH IS TO MOVE FORWARD THE TRIBAL TAKE OVER OF BHP COAL MINING OPERATIONS
DELEGATE KATHERINE BENALLY
For the record, the Council’s Resources & Development Committee has not gone to Las Vegas.
DELEGATE LORENZO CURLEY
Concern is why bond required and waive sovereign immunity. And Zurick will issue performance bond and if Four Corners Power plant sue NTEC, they would sue Navajo Nation cuz NTEC has no assets since new company. And so the reason for insurance and bond is because FCPP wants assurance. So what kind of dispute wud trigger Zurick to execute insurance bond.
ZURICK INSURANCE ATTORNEY
If you guys are not preforming with contrat and they cannot get comfortable with how NTEC operating coal mine. Zurick can cancel insurance and that goes for either party. But Zurick will ask questions and if that bond not replaced then FCPP can call on $300 million bond. They agree when issue bond that they will do that. They will not choose lightly and when impasse with NTEC and choose to terminate relationship with NTEC on that bond.
IN THE event of an emergency, Zurick has to immediately respond and not go to court. but other disputes, they agree to go to Navajo. There are only two disputes subject to state courts.
I understand, if not emergency, and if not comfortable with arbitration, they can exit tribal court and go to NM state court and that would only be in an emergency.
NTEC PRESIDENT STEVE GUNDERSON
this insurance also protects NTEC if Four Corner Power Plant decides not to buy the amount of coal that they agreed to buy.
NTEC ATTORNEY PAUL FRYE
both parties protected from natural/uncontrolled disasters. there has to be million tons of coal stockpiled, and if negligent but no problem since have same miners, NTEC wud still have 30 days before bonds called upon. And the only likely reason for bonds to be called upon by Zurick wud be if there was sabatoge.
DELEGATE NELSON BEGAYE
I was asking question until Attorney General Tsosie said that we’d have to go into executive session but I thot this was to get educated so we cud make an informed decision. So why have work session if not all our questions are being answered. All parties shud be here too. Are we asking for executive session?