HERE AT NAVAJO COUNCIL, DEBATE OVER LEGISLATION 0367-13 CONTINUES.
DELEGATE DANNY SIMPSON
Explain why need insurance.
NTEC STEVE GUNDERSON
there are two bonds and two insurance contracts. one is reclamation bond which is requirement of Office of Surface MIning and that mine owner obtain permit carry reclamation bond so NTEC as perspective owner has obligation to carry with outside company. Reclamation Bond will pay out like any insurance with defined events when insurance triggered with various amounts. Insurance that land reclaimed within federal law and backup of ultimate responsibility of BHP. under 2016 coal supply agreement, APS pay back. When get to 2031 and not enough money in account and partenrs not around then insurance pick up.
other insurance is performance contract and this required by Four Corners Power Plant to insure that if interruption to supple of coal that there is source of funds to remedy. insured events are earth quakes and other damage to mine to interrupt business.
those are basic purposes of insurance.
two bonds, one reclamation and has to be mine owner, which is NTEC. BHP guaranteed performance bond thru their parent company and we are doing the same because council is our parent company.
I lok at this way, have kids and graduate but we still help until they really get on their feet and how I lok at acquisition. It’s in its’ infancy. Like NAPI, Oil and Gas were in same situation. they kept returning to nation for help and now on feet and very successful.
Three years down road, probably receive more money than royalties. It’s been shown, cash flow and it’ll be $140 million.
when talk clean energy, I support, but we need something before get into clean energy and thx Witherspoon for setting amendment for that purpose.
but if mine and power plant closes there is no way Navajo cover $60 million annually. it’s impossible. couple of years ago had shortfall of $15 million and got calls from chapters. we tok a lot of heat. just imagine 1/3 of revenues cut if mine and plant closes.
But we still have to move forward with clean energy. Bates said technology might clean coal but not stop loking at clean energy.