HERE AT NAVAJO COUNCIL WORK SESSION FOR LEGISLATION 0367-13 WHICH IS FOR TRIBAL TAKE OVER OF BHP COAL MINING OPERATIONS VIA NAVAJO TRANSITIONAL ENERGY COMPANY.
DELEGATE EDMUND YAZZIE
We are talking about sovereignty but Resources & Development Committee approved uranium.
DELEGATE KATHERINE BENALLY
Point of Order, what Delegate E. Yazzie saying wrong.
DELEGATE EDMUND YAZZIE
We hve to continue funding nation and NTEC has said it would generate revenues for nation. We have contract with them. But with tribal casinos, the host chpaters have not seen revenues.
Ask that Council go into session and put to vote. Vote red or green. Simple as that – democracy.
IT IS NOW 1:26 PM
DELEGATE LORENZO CURLEY
During council session, it was said that no profits until two or three years so Speaker Naize asked for $84 million for mine purchase plus seed money for NTEC, which brought the total for NTEC and BHP to about $124 million.
Did the Council authorize waive of sovereign immunity power to NTEC and council have no say? Does that mean that NTEC can bind us into financial agreements? What is the Council’s potential liability?
When NTEC considered, NTEC became tribal entity and authorized them to waive sovereign immunity based on assets. Same is also for Navajo Tribal Utility Authority. But nothing beyond that.
April 2013, transaction proceed where no money done for purchase price and BHP operate mine and BHP took over quite graciously. there were questions about tribe footing the bill for purchase price and BHP operating agreement. $40 million line of credit to pay for machinery, power useage. $85 million for coal mine. But since short notice to get those funds, BHP covering purchase cost and operating costs. BHP operating costs covered by revenues from coal mine. Until note paid off then revenues/profit which wud be two to three years.
NTEC ATTORNEY FRYE
What can NTEC do to bind nation? NTEC can’t bind nation, unless Council agrees to be bound and why here today. We can’t waive tribal sovereign immunity, only NTEC sovereign immunity and even then we have to give notice to tribe.
my understanding of agreement between NTEC and BHP related to acquisition of mine and working capital, the nation is at risk for zero. that agreement is between NTEC and BHP. Depending on assumptions of taxes, NTEC pay off in three years and if can’t, at end of three years is balloon payment and enough time for NTEC to go to bank or another coal mine or take to council. But agreement between NTEC and BHP for $85 million does not put nation at risk.
I belive majority of questions answered and there are some question that might require executive session. so do we go into council session and vote.
ADJOURN WORK SESSION AT 1:42 PM