Navajo council considers NTEC indemnity
FARMINGTON — A new bill is making a second attempt at preventing the Navajo Nation from being exposed to legal and financial liabilities for coal mine purchases made by Navajo Transitional Energy Company.
The tribe issued a general indemnity agreement to NTEC when the company bought the Navajo Mine in 2013. The agreement, which addresses performance and reclamation bonds for the mine and authorized a limited wavier of the tribe’s sovereign immunity, has come under scrutiny in recent weeks, in light of three mines that NTEC purchased from Cloud Peak Energy in August.
Tribal officials have stated they were not informed about NTEC’s decision to buy the Cordero Rojo and Antelope mines in Wyoming, and the Spring Creek Mine in Montana and became aware of the purchase after NTEC issued a press release Aug. 19.
Under applicable laws, mine owners and operators must have reclamation bonds in place to operate mines. The new bill says that the Navajo Nation understands that NTEC wants the tribe’s financial backing on surety bonds for the three mines.
Delegate Carl Slater is sponsoring the bill. He said the concern is that the intent of the indemnity agreement approved in 2013 and then amended in 2015 was only for the Navajo Mine purchase.
NTEC said in a statement Monday that it remains “committed to protecting the sovereignty of the Navajo Nation while operating NTEC as a business entity as established by Navajo law. Our recent successes as a business reflect favorably on the Navajo Nation and we look forward to more successes in the future.”
The bill was posted on the council’s website Oct. 31 and was assigned to the five standing committees and to the council, where final authority rests.