Officials: Sithe Global would inject new life into Nation's economy

By Brian Hassler
Staff Writer

NENAHNEZAD — With closures at the Black Mesa Mine and the Mohave Generating Station, Sithe Global officials are looking for the proposed Desert Rock Power Plant to pick up the slack.

The Mohave station, in Laughlin, Nev., recently closed its doors, while ongoing talks between Southern California Edison, the operators of the plant, and the Hopi Tribe and the Navajo Nation have necessitated a possible four-year negotiation period.

Additionally, the Black Mesa Mine is being closed pursuant to a court order, signed in 1999, that required the plant to reduce emissions and to find an alternative source of water.

The Black Mesa Mine also provided 21 percent of the Navajo Nation's budget.

With the loss of jobs, 300 from the Mohave station and at least 129 from the Black Mesa Mine, the importance of the Desert Rock plant is of greater importance, said Frank Maisano of Sithe Global.

"We know that the Black Mesa is important and it will be a great loss for Native Americans in that area," said Maisano. "But our thing is to say that Desert Rock is important and how important that is. It just makes it that much more important to move on with Desert Rock and offset some of that economic loss with a significant economic gain."

Currently, Sithe Global and the Navajo Nation have negotiated commercial contracts, which include the purchase of water, the land lease and the tax agreement. Those contracts will go before the Navajo Nation Council early in 2006.

Should the Council approve the plan, Sithe will work on the draft permit and a draft of the environmental impact before beginning construction in 2007.

"We hope to have all permitting at the end of next year and start construction in early 2007, and then it's about a four year construction process," said Tom Johns, vice president of development for Sithe Global. "We think the first unit will come online in 2010 and the second in 2011."

During that four year construction period, there will be an average of 1,000 construction workers on the job, with at least 2,000 workers on the job during the peak of the construction phase, said Johns.

"It's a huge economic project," said Johns. "And it's going to be a $ 2.2 billion investment and is probably the biggest investment in New Mexico. This will provide tax benefits for the Navajo Nation and the state. The benefits to Navajos will be in taxes, coal royalties and water and will be $50 million a year in addition to the creation of new jobs and opportunities."

For Maisano and Johns, the closure of the mine in Black Mesa and the station in Mohave are additional reasons for the Desert Rock plant to move forward.

"It points to how important DR is going to be and how we need to look at moving it forward," said Maisano. "From my perspective, we know what will happen with Desert Rock. Thousands of jobs in construction, 400 permanent jobs at (the) plant, and there will be a preference towards Native Americans, and we expect fully that there will be a significant employment boost from these jobs."

"It stresses the importance of moving this job forward because it will be such an economic benefit for the Nation," he added.

Despite the complex nature of the negotiations and contracts, Johns is confident that plans for a 2010 opening will remain on track.

"I think the Navajo Nation is supportive of (the) project and can see the benefits," he said. "These are complex agreements that need to be negotiated and take some time, but we're very satisfied with the Navajo Nation and the way they've negotiated the agreements."

— Brian Hassler is The Independent's Four Corners reporter based in Shiprock. Contact him at (505) 360-7862 or via email at brianhassler@hotmail.com