El Paso, Navajo Nation move closer to right-of-way agreement

El Paso Corp.'s Continental Connector will link the company's western pipelines with its eastern and southern pipelines to transport Rockies and Mid-Continent natural gas supplies to markets in the Northeast and Southeast. [Courtesy El Paso Gas Corp.]

By Kathy Helms
Diné Bureau

WINDOW ROCK — The Navajo Nation and El Paso Natural Gas are finally making headway in the renegotiation of El Paso's right-of-way lease for its energy corridor and 900 miles of pipeline.

Resources Committee Chairman George Arthur said Monday that during an Executive Session meeting Jan. 4, "The Resources Committee had a legislation that came before them in which it speaks to the issue of the El Paso right-of-way question.

"The Navajo Nation and El Paso Natural Gas have been in negotiations for quite a length of time now and have had some concerns in respect to the makeup of the various issues of the contract," Arthur said.

"However, what was presented to the committee in respect to this item of discussion is a temporary agreement which would reflect the time period of October (2005) to Dec. 31, 2006. This agreement provides for a certain amount of compensation that would be contributed to the Navajo Nation on an interim basis," he said.

The legislation sponsored by Arthur and approved by the committee conditionally approves an interim extension of certain rights-of-way located on Navajo trust lands.

Sources say portions of the agreement which call for total monetary compensation to the tribe have been left blank for now, but that interim figures through Dec. 31 could be worth about $17 million to the Navajo Nation. El Paso previously had offered just over $6 million, or the equivalent of $400 a rod, for an interim extension while negotiations continued.

However, Arthur raised concerns that if the tribe settled for the interim $400-a-rod figure, it might end up locked into that amount in final negotiations.

The newly proposed agreement "is satisfactory in as far as the dollar amount is concerned, but it's only an amount that's limited to the temporary agreement. Anything outside that value will continue to be negotiated," Arthur said.

"I believe this legislation that came before the Resources Committee does a couple of things. The main thing is that it brings the parties back to the table in a manner that is going to be much more meaningful toward a final long-term agreement."

He said it also gives more credibility to the two parties' negotiating efforts. "I believe you could refer to it as a new beginning using past information."

Legislation pertaining to El Paso's right-of-way previously introduced by Resources' Larry Noble and Economic Development's Tom LaPahe is no longer a matter of discussion, according to Arthur. The newly introduced legislation "basically puts in place the official position of the Nation as well as the acknowledgment of El Paso Natural Gas," he said.

"The legislation was developed by the Navajo Nation negotiating team and I sponsored the legislation. I really don't know who (the previous legislation) was developed by," he said, but added that he believes Resources acted appropriately and wisely when it tabled the legislation.

"It gave a better opportunity for both parties to establish their own interest in this discussion."

Arthur said though there was no talk by El Paso of dropping its appeal to the Secretary of Interior to decide the amount of compensation in the right-of-way issue, he believes it gives El Paso's initiative "a different twist."

"I don't think that is of major concern to Navajo Nation's negotiation team at the present time," he said.

Consultation with the feds
Arthur and members of the Resources Committee and working group are expected to travel to Albuquerque later this week for a discussion with the feds on proposed Tribal Energy Resource Agreements.

The U.S. Department of the Interior, Office of Indian Energy and Economic Development, will host a public meeting Friday, Jan. 13 at the Albuquerque Marriott, 2101 Louisiana, to consult with tribes on development of regulations to govern the Tribal Energy Resource Agreements.

The Energy Policy Act of 2005 requires the Secretary of Interior to develop regulations that implement new provisions regarding development of energy resources on tribal lands. Ideally, the TERAs would promote tribal oversight and management of energy and mineral resource development on tribal lands while bringing tribes closer to Indian self-determination, according to DOI.

Arthur said the Resources Committee has given some specific directives to the division regarding TERA, and also has sought outside legal assistance on the matter.

The Navajo Nation working team, which is different from the El Paso negotiation team, will assist the Resources Committee in developing a position statement. The working group is composed of tribal representatives from within the Department of Minerals and Department of Justice.

There are no Resources Committee members on the working team; however, Arthur said the committee has selected Vice Chairperson LaVern Wagner and member Nelson Begaye, along with himself, to work on structuring of the Nation's position statement, which will come back to the Resources Committee and eventually to the Intergovernmental Relations Committee.