NAVAJO COUNCIL RESOURCES & DEVELOPMENT COMMITTEE STILL DEBATING PROPOSED LEGISLATION 0367-13: A PROPOSED NAVAJO NATION COUNCIL RESOLUTION; AN ACTION RELATING TO RESOURCES AND DEVELOPMENT, BUDGET AND FINANCE, AND NAABIK’IYATI’; APPROVING AN ALTERNATIVE FORUM FOR ENFORCEMENT OF BINDING ARBITRATION AND ANCILLARY PROCEEDINGS BROUGHT PURSUANT TO THE NAVAIO NATION SOVEREIGN IMMUNITY ACT IN THE GENERAL INDEMNITY AGREEMENTS BETWEEN THE NAVAIO NATION AND l)
ZURICH AMERICAN INSURANCE COMPANY AND 2) ARCH INSURANCE COMPANY RELATED TO THE ISSUANCE OF PERFORMANCE AND RECLAMATION BONDS RELATED TO THE NAVAIO MINE
SPONSOR DELEGATE LORENZO BATES
REMEMber that this is first time and each enterprise worked thru challenges so this is initiative to use nation’s rsources like other enterprises. We want to control and to be able to say yes or no and we approved that. We wanted some say and we created NTEC to speak on our behalf. At least I can say that I recognized the challenges that they wud be facing in industry that not viewed today as can survive. Cuz anybody and everybody out there against coal industry. But if lok at industry as whole, the generation of electricity thru coal is most reliable. Technology improves everyting and I truly believe that once coal industry makes it way thru, coal will become very viable industry to be in but this is challenge facing NTEC today. Will there be other requests, don’t know. How big? I don’t know but challenges.
NTEC CEO STEVE GUNDERSON
Having been brot on in May, it has been very fast process. One thing that would have been added is complexity. There are so many partners, so many laws and so many financial instruments so requires masters degree in coal mining.
Under typical cases for events that are insured, the insurance companies don’t cover cost of reclamation bond if falls short. Or if heavy rains and mine can’t perform then insurance company steps in and why there. Another anology, if NTEC in default and remote circumstance, it’s like fire, insurance company rebuild home. But if negligent for storing gas in home then insurance company wont be liable. So if other fail safes don’t come thru then NTEC steps forward. Reclamation bond and most of performance bond, NTEC be financial back stop if necessary then remote that Navajo Nation called on. Only reason have reclamation bond is cuz legal owner and not about APS not trusting us. what is happening, the Four Corners participants pay into account to pay for reclamation so likelihood money not there for reclamation very small and if not then NTEC step in. regarding performance bond, corporations don’t trust each other but that is business and why everyone has financial backups. but insurance bond cud be called on between now and 2031. so in remote case if NTEC negligent then responsible to cover bond. So clarify. Keep in mind, giving something up but receiving NTEC profitability which can share in executive session during Council. Assurities Right for Settlement, not saying nation no say but they are saying, APS/SRP/All those guys can reach agreement…for example cost ot rebuild home might be $100,000 and all care is house rebuilt and insurance pays but if negotiqate better numbers so what, house built. So if SRP or APS makes mistake, it is their liability and why #3 there. #10 discharge issue: reasonable. Again complex, 6 parties on one side and there has been some things that have prevented to meet deadlines such as possible deregulation by Az and now one party bowing out so further pushes us past deadline. it’s in poor taste and unprofessional and need to file documents with SEC and EPA. like to have more time but I don’t think we have that time.
NTEC ATTORNEY GREG KELLY
#3, when claim brot against insurance: Four Corners Power Plant wud control that claim but like Gunderson said they wud have opportunity to discharge bond and tribe find another bond
DELEGATE LEONARD TSOSIE
look at #3, they have unconditional right not to pay or even perform or even deny so whatever reason, we don’t know these guys or their record. We don’t kow if bad performers. NDOJ and NTEC shud give us bio sheet on who they are. No comparison to house fire. And I agree with Bates that this is learning experience but we have lived up to our promises. And sometimes political backlash, such as Shiprock Chapter President Chili Yazzie sending letter to Interior department, which by the way he didn’t have authority to do. Realize time crunch but big decision and we have to say that we ned to lok at first and if cuz of time deal fails then so be it. for myself, I’ve had my forefathers warn me against making tribe liable to outside governments.