Navajo Council’s Resources & Development heard all the reports and they have gone to proposed legislation for $4.1 million for Navajo Transitional Energy Company.
RDC MEMBER LEONARD TSOSIE
There is an important item on agenda, NTEC. I’m asking RDC to waive floor rules and go to item (g) and for the record, I’m not dong this for Delegate Bates. I haven’t talked with him. And I’m going to leave soon.
DELEGATE LORENZO BATES
Didn’t expect to be called so soon and that Delegate Tsosie would be so kind.
If lok to legislation, page 2, line 19: RDC and Council approved creation of NTEC to move forward in all necessary processes to acquire BHP coal mine.
However, for whatever reason, we didn’t appropriate any dollars into operations.
With united front of Sepaker Naize and Prez Shelly, this will go forward.
Management team in place have been voluntering along with law firm.
All that needs to be done was put on hold because of ACC deregulation inititaive, which they voted down, narroed down timeline to end of month.
Please look at page 3, line 3: Talks about $4.1 million and how use.
Page 4, line 3: it talkes about how those dollars would be given to NTEC as things proceeded.
Investment Committee heard from NTEC about needed dollars but tribal investment polices identify pay back and terms would be negotiated but since tribe has not signed with BHP over coal mine the proposed langauge allows for negotiation of fuel agreement between Four Corners Generating Station and coal mine and when done then Council no longer
Will Navajo pay BHP asking prices of $85 million? BHP to my understanding to carry note at 6 percent interest and sounds like good deal but amortization of $85 millionis squeezed into three years which means NTEC may operate on just cash flow. And the taxes associated with BHP mine as exist now go to feds and state and inernt those tax dollars come to tribe. but based on amortization, those dollars to serving the debt.
Those are all pieces of the puzzlie in moving forward. Deson’t mean that tribe afer signing fuel agreement and takng over mine that tribe still consder investing into purchase and any other needed funds.
But first acquire and manager’s agreement and fuel agreement for coal to Four Corners.
$4 m is cost and expenses to get to that point.
It also will allow APS to further consider buy Southern Cal Edison’s ownership in Four Corner Plant.
As soon as get budget forms, talk to how dollars expended.
Tribal Office of Management and Budget letter is to outside and don’t apply to NTEC.