Navajos sign power-plant lease

ST. MICHAELS, Ariz. — Navajo Nation officials and a Houston-based energy company have signed lease agreements that would allow a 1,500-megawatt power plant to be built on tribal land in northwestern New Mexico.

Navajo President Joe Shirley Jr., Sithe Global Power Executive Vice President Dirk Straussfeld and Steven Begay, general manager for the tribe's Dine Power Authority, signed the documents during a ceremony Thursday.

The coal-fired Desert Rock Power Plant, when complete, would produce enough electricity to power up to 1.5 million homes. It's expected to provide more than 1,000 jobs during construction and as many as 400 permanent jobs.

Desert Rock also would generate $50 million in taxes and royalties for the Navajos each year.

"This initiative is an integral part of our economic stimulus package to bring new revenue streams, training through Navajo Nation educational institutions, employment and much needed infrastructure to the people of the Navajo Nation," said Navajo Vice President Frank Dayish Jr., who attended the signing ceremony.

He and Begay noted that the tribe has an opportunity for ownership in the project, which has been described by Navajo officials as the largest economic development project ever undertaken by the tribe.

The Navajo Council approved the 50-year lease during a special session May 12. It covers a 590-acre site south of Shiprock, N.M., where the plant would be located, and spells out rent and tax payments due to the Navajo Nation.

Despite the prospect of more jobs and revenues, some Navajos are concerned that Desert Rock would add pollution to a region where two existing coal-fired plants already put tons of emissions into the air.

Critics also question the impact the plant would have on the area's water supply and whether Sithe would live up to its promises.

Sithe officials have said Desert Rock would use about 80 percent less water than a traditional coal-fired plant and environmental controls would reduce emissions.

Sithe hopes to begin construction in 2007, but a draft air permit and an environmental impact statement must be completed before that happens. Sithe spokesman Frank Maisano said the draft air permit could be released before summer.

Navajo Council Speaker Pro Tem Nelson Gorman, who spoke at Thursday's ceremony, said Desert Rock has been a long time coming. He said it was more than 20 years ago that Navajo leaders established a task force to begin working on a generating station.

"Our thanks go to those who shared our vision and goal to establish a new power plant," he said. "Today we came together to witness the signing of the agreement to move forward with this historic endeavor."