5/22/2012 Grist: Peabody Coal buys coal from U.S. taxpayers for cheap, sells it abroad for huge profit
Peabody Coal buys coal from U.S. taxpayers for cheap, sells it abroad for huge profit By David Roberts Yesterday, I wrote about the issue of public land in the Powder River Basin being leased to coal companies for cheap, so they can strip-mine it and sell the coal abroad at an enormous profit. Also yesterday, the feds held a “competitive lease sale” for the South Porcupine Tract, which contains almost 402 million tons of mineable coal.
Guess how many companies bid in this “competitive auction”? One: Peabody Coal, the company that filed the original application [PDF] for the lease.
Again: $1.11 per ton.
The price of a ton of Powder River Basin coal on U.S. spot markets? $9.15 per ton, as of May 11.
And exports are only likely to go up:
So, to summarize: You, the U.S. taxpayer, just leased another huge chunk of your land to Peabody Coal at $1.11 per ton of coal. Peabody will strip-mine that land and take the coal to China, where it will sell it for over $100 per ton. Peabody pockets enormous profits*, the U.S. taxpayer gets devastated land, and China accelerates global warming.
And it’s all being pushed through by the Obama administration.
* Now, obviously, $1.11 per ton is not the sum total of Peabody’s costs. They also pay BLM some production royalties and rental fees. And of course it costs them money to mine the coal and ship it to China! Nevertheless, the notion that $1.11 per ton is “fair market value” for coal that Peabody is going to tell for over $100 a ton is a sad joke.
5/8/2012 Carlos W. Begay, Sr. & Marsha Monestersky letter to Mr. James Anaya: US government theft of Black Mesa, HPL
4/3/2012 Blog posting by Wenona Benally Baldenegro: Senators Seek to Extinguish Navajo & Hopi Water Rights
Senators Seek to Extinguish Navajo & Hopi Water Rights by Wenona Benally Baldenegro, April 3, 2012 at 9:53pm. S.2109 and the “Settlement Agreement” require Navajo and Hopi to give Peabody Coal Mining Company and the Salt River Project and other owners of the Navajo Generating Station (NGS) tens of thousands of acre-feet of Navajo and Hopi water annually – without any compensation – and to force the extension of Peabody and NGS leases without Navajo and Hopi community input, or regard for past and continuing harmful impacts to public health, water supplies and water quality – as necessary pre-conditions to Navajo and Hopi receiving Congressional appropriations for minimal domestic water development. This is coercive and wrong
Forgotten People MEDIA RELEASE: Peabody Kayenta mine permit renewal – Dooda (No): Black Mesa, AZ-On November 3, 2011, Forgotten People through their attorney Mick Harrison, Esq. with assistance from GreenFire Consulting Group, LLC joined Black Mesa Water Coalition, Diné C.A.R.E., To Nizhoni Ani, Center for Biological Diversity, and Sierra Club in submitting comments to oppose the U.S. Department of the Interior’s Office of Surface Mining (OSM) decision to approve a controversial mine permit renewal for Peabody Coal Company’s Kayenta mine.
OSM’s Environmental Assessment (EA) improperly discounts and ignores the substantial adverse impacts on the traditional Dine’ that result from Peabody’s mining activities including destruction of sacred sites and contamination of air and water and adverse health effects to humans and animals. Norris Nez (Hathalie) stated: “In Black Mesa area there were many key sites where offerings were given and Peabody has destroyed these sites. That is why the prayers or ceremonies that were conducted are lost. It is because the land is destroyed.” Glenna Begay stated: “To protect and preserve endangered historic, cultural and sacred sites in and adjacent to Peabody’s lease area, Forgotten People submitted ‘Homeland’, a GIS interactive mapping project that shows continuous occupancy since before the creation of the Navajo and Hopi Tribes and before the Long Walk to Fort Sumner in 1864.”
The EA does not address the severe impacts on the families to be (apparently forcibly and involuntarily) relocated. Glenna Begay stated: “How can the EA say the residents of the four occupied houses have not indicated that they have concerns about relocation and impacts on traditional cultural resources. Contrary to the EA some of the families who are to be relocated refuse. The families that objected to relocation should have been properly identified and quoted on their opposition in the EA.“ Norris Nez stated, “If more mining takes place, more people will be forced to relocate. Relocation is death to our people and our future.”
Experts have testified about relocation effects, like Dr. Thayer Scudder from Cal Tech University who says, relocation= death, i.e., that relocated people die. Yet there is no meaningful assessment in the EA of the real, huge and acknowledged effects of mining and subsequent relocation on the lives of the Forgotten People.
Peabody’s mining activities have contaminated the locally-owned water sources, and local water sources are capped, there is no water left to drink, and the Forgotten People are now dependent on the Peabody water supply. “The drinking water crisis is further exacerbated by the recent (September 2011) discovery of uranium and arsenic contaminated wells on the Hopi Partition Land (HPL),” stated Karyn Moskowitz, MBA of GreenFire Consulting Group, LLC.
John Benally, Big Mountain stated: “People living in the vicinity of Peabody do not have adequate water to drink, are hauling their water over great distances, and in some areas are drinking uranium and arsenic contaminated water. Peabody must return use of the wells that rely on the Navajo Aquifer to the Forgotten People so people within the western Navajo Nation do not have to drink contaminated water. Use of the Navajo Aquifer to support mining activities must stop.”
In the over 300 page EA, there is no mention of arsenic and no study of the impacts this contaminated water has had on residents and will have on the future of the Forgotten People. The discovery of these highly poisonous compounds in people’s drinking water should have immediately shut down any plans for continued mining in order to assess where the contamination is coming from and what the connection is between Peabody Coal’s mining and the discovery of this uranium and arsenic contamination. Yet the EA does not study the impact that this situation has on the Forgotten People. Clean water is a basic human right.
The EA mistakenly dismisses the removal of millions of tons of coal via surface mining as not significant in terms of minerals and geologic impacts including impacts on fossils. The EA also incorrectly dismisses the potential for material damage to the N aquifer from Peabody activities.
“The EA does not take the health and environmental threats from coal dust releases seriously and fails to assess or identify mitigation options for the significant adverse health effects reported by residents as a result of Peabody mining activities,” stated Christine Glaser, Ph.D. of GreenFire Consulting Group, LLC. The EA is defective because it does not include or recommend a real study of the cumulative, long-term health effects of this coal dust on the Forgotten People, including chronic illness and death from Black Lung disease.
Caroline Tohannie, Black Mesa stated: “The EA failed to address the real dangers of using an unpermitted railroad to transport coal from Kayenta mine to the Navajo Generating Station (NGS). Insufficient barrier arms and warning lights have already resulted in the death of people and livestock.”
Attorney Harrison stated: “The EA makes scientific conclusions contrary to prevailing science and contrary to the federal environmental agencies’ own stated positions and conclusions regarding climate change. The EA blatantly violates the National Environmental Policy Act (NEPA) by considering only the climate change impacts of the Peabody mining alone without assessing the cumulative impacts of coal mining and of the burning of the Peabody coal in the NGS together with burning of other coal in other coal fired power plants. Coal mining and coal combustion collectively have significant adverse impacts on climate change. Given the severity of the harm currently threatened from climate change, a full Environmental Impact Statement (EIS), not just an EA, is required.”
On January 5, 2010, Administrative Law Judge Robert Holt issued an order vacating Office of Surface Mining’s (OSM’s) approval of Peabody Coal Company’s proposed permit modification for a life-of-mine permit for the Black Mesa complex based on violations of NEPA. The Judge also found OSM failed to develop and consider reasonable alternatives to the proposed action.
The current OSM Environmental Assessment, Finding Of No Significant Impact, and Kayenta Mine permit renewal decision involve the same type of NEPA violation involving failure to identify, develop, and assess reasonable alternatives. Only two alternatives were developed: the mine alternative and the no mine alternative. Other alternatives could have and should have been assessed including no mining combined with development of alternative energy facilities such as solar and wind.
The Forgotten People hope OSM will consider all the comments received and make the right decision, which would be to deny renewal of the Kayenta Mine permit. Peabody Dooda (No). For further information, please contact Attorney Mick Harrison at (812) 361-6220 or Forgotten People at (928) 401-1777.
10/13/2011 President Shelly pushes for water settlements By Kathy Helms, Dine Bureau, Gallup Independent: WINDOW ROCK – Navajo President Ben Shelly was in Washington Wednesday to advocate for the Navajo Generating Station, Arizona and Utah water rights settlements, and the Navajo-Gallup Water Supply Project. Congress has funded $24 million for pre-construction and construction activities for the Navajo-Gallup pipeline. An additional $60 million will be made available for the next three years from the U.S. Bureau of Reclamation, according to the Navajo Nation Washington Office.
In a meeting with Assistant Secretary of the Interior Larry Echo Hawk, Shelly said, “We are working to keep the Navajo Generating Station open. The loss of the power plant will impact both Navajo and Hopi, other Arizona tribes, and the state.”
In contrast, when Deputy Assistant Secretary David Hayes visited Navajo in September, Resources and Development Committee member Leonard Tsosie told him that NGS and Peabody were “bad deals made by the federal government on behalf of the Navajo people.”
Resources Chair Katherine Benally said continued support of NGS, given its history with Navajo, did not look very favorable. “They took our water, they took our land and did not bother to come back and see if we were properly compensated,” she said.
During his meeting with Echo Hawk, Shelly said Navajo is in the final stages of a water rights settlement with Utah and needs for the administration “to lay the foundation for a complete settlement of our water claims on the Colorado River and to ensure water for Window Rock.”
The Navajo Nation also has been a co-participant in Tribal Unity Impact Week with nine other tribes and the National Congress of American Indians.
During a leadership meeting Tuesday, Shelly told tribal leaders, “Be united as one. I’m talking about uniting right now. We’re not on the same page. We need to get serious. We are going to build a United Nation of Indians.”
He referred to proposed twin office towers planned for Window Rock with a price tag of around $45 million. “If you want to work with us, that’s where we’re going to be,” he said.
He addressed sovereignty and self-sufficiency as part of his vision of economic prosperity, including needed changes to federal laws and policies which will reduce bureaucratic red tape to allow tribes to develop their resources, take control of land, and expand business opportunities.
“We can’t sit here every day and say ‘trust responsibility,’” he said.
Meeting with the Nation’s congressional leaders on proposed funding reductions for tribal programs, Shelly said, “Reducing funding for tribes would cruelly punish a vulnerable segment of the U.S. population.”
The president spoke with congressmen on funding concerns for Navajo Housing Authority, transportation, Navajo Abandoned Mines Lands, the proposed Arizona water rights settlement, Head Start, the Utah Navajo Trust Fund, and uranium cleanup on Navajo land.
Later, Shelly and a delegation from Navajo Nation Environmental Protection Agency met with U.S. EPA.