Menu
Categories
Navajo Transitional Energy Company paying profits to BHP for $85 million loan
April 22, 2014 Professional Journal

HERE AT NAVAJO TRANSITIONAL ENERGY COMPANY’S PUBLIC INFORMATION MEETING AT NAVAJO NATION MUSEUM IN WINDOW ROCK, ARIZ.

What is cost of coal mine operating agreement?
SAM WOODS Get back to you. we are in fourth month of operation.

What is amount of BHP note (which is the loan that BHP made to NTEC for NTEC to buy Navajo coal mine from NTEC)?
SAM WOODS $85 million for BHP note and expected to pay off in 2016.

NAVAJO GUY
We had nine people at Upper Fruitland, who were mostly former Council delgates. My concern is why Navajo Nation or that team didn’t do EIS when tribe would continue to involve Navajo people daily and their lives. Board’s experience is mostly in fracking. Why didn’t Navajo Nation go back to people to educate about impact coal when NTEC will continue coal mining.
Why would the Navajo Nation Attorney General Harrison Tsosie keep all documents related to NTEC confidential especially “actual transaction”.
And why weren’t people allowed to vote on this transaction?

SAM WOODS
let me start with Legislation number and I’ll get that to you. the $85 million that you asked about didn’t come out of general fund. it comes from revenues of coal sales to pay back that loan with BHP. Agreement between NTEC and BHP.
If NTEC publicly traded company then information shared but owned by Navajo Nation so to share financial information, you would need to sign non-disclosure agreement.
In terms of Privacy Act, that was done by Council. they passed rules; they created those laws. so all we are doing is adhering to all those laws. we have to follow those laws.

NAVAJO GUY
Can chapters look at agreements and documents that created NTEC especially since NTEC claims NTEC is Navajo owned. But now finding out that its just paper and that tribal government owns.

interim cfo SHAWN mC CABE
when it comes to profit, profits are being realized now, but all profits that come from mine go to principal balance of $85 million. as soon as $85 million paid off in 2016 then NTEC start seeing profits back to Navajo Nation. from coal sales from APS goes into pot to pay federal taxes, expenses of BHP, and pays BHP note. we pay pit, nbat equals $10 m. royalty from coal is about $32 million. when comes to taxes and royalties, everything same except for profits.

NAVAJO GUY
why did navajo nation waive all liabilities for NTEC? obviously Gunderson have conflict of interest.
SAM WOODS
ALL transactions executed and we are operating.
INTERIM CFO SHAWN MC CABE
question of stopping NTEC is up to Council.
NAVAJO GUY
Would u have waived all liability?
SAM WOODS
all this was done before us and we are just starting up company.
NTEC has not made bad decisions since created in December 2013.
Liability question is for Council.

Leave a Reply
*