Four Corners Navajo Energy Project Description · As operator of the Four Corners Power Plant, ......

1 | P a g eMarch 21, 2012

Four Corners Navajo Energy Project Description

BHP Navajo Coal Company (“BNCC”) owns and operates the Navajo Mine

located near Waterflow, New Mexico in the Navajo Nation. The surface mining

operation supplies all the coal used at the nearby Four Corners Power Plant,

which is operated by Arizona Public Service Company (“APS”). The Navajo Na-

tion, APS, and BNCC are all working together to renew the power plant’s lease

and expand mining operations so that electricity production can continue after

2016. This effort will require several complicated federal, tribal, and state regula-

tory approvals as well as detailed environmental and historic and cultural preser-

vation studies. These approvals and studies are summarized below.

Four Corners Power Plant

As operator of the Four Corners Power Plant, APS recently executed a lease

amendment (“Lease Amendment No. 3”) with the Navajo Nation to extend the

term of the lease for the FCPP an additional 25 years to 2041. APS proposes the

approval of the lease amendment and grants of right-of-way by the Bureau of In-

dian Affairs for the Plant site and ancillary facilities, the independent switch yard,

and the transmission lines.

The desired future operation of the FCPP site involves removing Units 1, 2,

and 3 from service on or before 2014, installing pollution control upgrades on

Units 4 and 5, and continued operation of the independent switch yard and trans-

mission lines. This scenario will substantially reduce coal consumption and emis-

sions, and lower the power output of the plant to approximately 1,500 megawatts.

The ash disposal area will expand in future years within the current lease bounda-

ry. There is no proposed change to the exterior boundary of the FCPP site, the

switch yard, or any of the transmission lines and ancillary facilities as part of the

proposed actions.

Navajo Mine

BNCC will apply for a permit from the federal Office of Surface Mining Rec-

lamation and Enforcement (“OSM”) under the Surface Mining Control and Rec-

lamation Act to produce about 6 million tons per year of low-sulfur coal from

3,000 acres of land currently leased to the company by the Navajo Nation. Be-

cause of the shutdown of three power plant units, this future production is about

3 million tons per year less than in the past. A portion of the Burnham Road—a

public road administered by the BIA—will also need to be moved east and up-

graded so that it will not obstruct future mining operations.

So that this tribally-owned coal resource is used wisely, the company will

prepare a Resource Recovery and Protection Plan under the supervision of the

2 | P a g eMarch 21, 2012

federal Bureau of Land Management. The U.S. Environmental Protection Agency

will amend the company’s Clean Water Act Section 402 discharge permit for the

mine. And because the desert arroyos on the lease will be disturbed, the U.S. Ar-

my Corps of Engineers will need to issue an individual permit under Section 404

of the Clean Water Act for these proposed mining activities.

The Navajo Nation will also need to verify that these proposed mine activities

will not adversely impact tribally-listed endangered or threatened species, coordi-

nate historic preservation reviews as part of its role under Section 106 of the Na-

tional Historic Preservation Act, and provide a water quality certification under

the Clean Water Act. Of course, federal agencies will also consult with the Nava-

jo Nation on a range of regulatory compliance matters.

Joint Approvals and Studies

The Nation, APS, and BNCC will cooperate with all these federal agencies—

led by OSM—to prepare an environmental impact statement (“EIS”) under the

National Environmental Policy Act. The EIS will assess the impacts of these fed-

eral approvals on the quality of the human environment, and will include an as-

sessment of alternatives to the proposed federal actions. The EIS will cover the

direct, indirect, and cumulative impacts of federal approvals at both the Four Cor-

ners Power Plant and the Navajo Mine.

OSM will also conduct formal consultation with the U.S. Fish and Wildlife

Service under Section 7 of the Endangered Species Act to ensure that the federal

approvals for both facilities address any and all impacts on threatened and endan-

gered species and their critical habitat. Similarly, the federal agencies will con-

duct a consultation under Section 106 of the National Historic Preservation Act

with the Navajo Nation and, as appropriate, the Advisory Council on Historic

Preservation.

Timing of Permits, Reviews, and Consultations

To assure the continuous, uninterrupted operation of the Navajo Mine and the

Four Corners Power Plant, all federal permits and environmental, wildlife, and

cultural reviews and consultations will need to be completed by January 2015.

1 | P a g e

March 21, 2012

Four Corners Navajo Energy Project Fact Sheet

The Navajo Nation is working together with Arizona Public Service

Company and BHP Navajo Coal Company to secure by January 2015 fed-

eral approvals to continue reducing dramatically air emissions from the

Four Corners Power Plant, and ensure that the plant continues to be sup-

plied safely and responsibly with Navajo-owned coal from the adjacent

Navajo Mine.

This project is in alignment with four important federal policies:

The federal trust obligations to support tribal self-sufficiency andself-determination;

That natural resources be produced and used safely, responsibly, andin accordance with environmental values and laws;

The creation and maintenance of high-skilled jobs and supportingthe competitiveness of the U.S. economy; and

Domestic energy independence and energy security.

The President’s Council on Jobs and Competitiveness captured the essence

of many of these policies in its January 2012 Road Map to Renewal report.

With respect to energy projects, the Council wrote:

An all-in approach is imperative if we hope to reduce our

reliance on foreign oil and create a more diverse electrici-

ty generation portfolio. America needs to optimize use of

all of its natural resources while protecting public health

and the environment. Now more than ever, the jobs and

economic and energy security benefits of these energy

projects require us to tackle the issues head-on and to ex-

peditiously, though cautiously, move forward on projects

that can support hundreds of thousands of jobs. Over the

long term, we expect that innovation and technological

advancements will greatly reduce America’s reliance on

fossil fuels. Until then, however, we need to be all in.

This project is in alignment with these tribal, environmental, economic, and

energy policies.

2 | P a g e

March 21, 2012

1. This project promotes Navajo self-sufficiency and

self-determination

Navajo jobs. In an area with per capita income of only $6,800, wag-es and benefits from jobs at the Four Corners Power Plant and theNavajo Mine—some 80% of which are held by members of theNavajo Nation—approach $100,000 per job, with an overall annualpayroll of over $100 million.

Navajo resources. This project continues the use of Navajo-ownednatural resources, and contributes some 32% of the Navajo govern-ment’s general fund revenue through the payment of some$70 million annually in royalties, fees, and taxes. Past project clo-sures at Black Mesa, McKinley Coal Mine, and in the ChuskaMountains have deeply and adversely impacted the Navajo’s abilityto control their resources for their own benefit.

Navajo culture. In an area of 55% unemployment and with an evenlarger percentage of underemployment, the jobs created by the pro-ject will help to preserve Navajo culture by curbing the migration ofworking age Navajo from the Reservation as they seek employmentopportunities. In addition, the income from jobs created by the pro-ject—and in particular the income from the many jobs held by Nava-jo women—will help to support extended families and sustain com-munity service initiatives on the reservation.

2. This project provides dramatic environmental im-

provement in air quality and reduces CO2 emissions

Advanced environmental controls. Once fully implemented, theenvironmental improvement projects to be taken by Arizona PublicService Company will cause the Four Corners Power Plant to beamong the best controlled coal-fired power plants in the UnitedStates by extending historic emissions reductions at the plant evenfurther and by reducing CO2 emissions by 30%.

March 1, 2 12

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March 21, 2012

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3 | P a g e

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Competitive energy prices. Responsibly produced, reliable electric-ity from lower-priced coal in an all-in, diversified fuel mix will keepregional electricity rates lower, which will maintain the competitive-ness of regional businesses.

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gressive national energy policy

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Reliable. The project will responsibly and reliably generate electrici-ty for more than 500,000 homes to meet continuous “baseload” en-ergy demand.

4/23/2014 DEPARTMENT OF THE INTERIOR Mail - Fwd: PDEIS for FCPP and Navajo Mine Energy Project - Cooperating Agency Review

https://mail.google.com/mail/u/0/?ui=2&ik=e40d19038f&view=pt&as_has=%22Four%20Corners%22%20OR%20Pinabete&as_sizeoperator=s_sl&as_sizeunit=s… 1/5

Sire, David <[email protected]>

Fwd: PDEIS for FCPP and Navajo Mine Energy Project - Cooperating AgencyReview1 message

Sire, David <[email protected]> Thu, Jan 16, 2014 at 12:19 PMTo: Loretta Sutton <[email protected]>

The draft is on the O: drive under non-delegated EISsDave SireNatural Resources Management Team Leader

Office of Environmental Policy and Compliance, DOI

(202) 208-6661

---------- Forwarded message ----------From: Sire, David <[email protected]>Date: Tue, Jan 7, 2014 at 11:42 AMSubject: Re: PDEIS for FCPP and Navajo Mine Energy Project - Cooperating Agency ReviewTo: "Calle, Marcelo" <[email protected]>

That worked. Thanks!

Dave SireNatural Resources Management Team Leader


(202) 208-6661

On Tue, Jan 7, 2014 at 10:25 AM, Calle, Marcelo <[email protected]> wrote:I re-posted as a zipped file. hopefully that will work. Please let me know if it does not. Thank you for yourassistance.

On Tue, Jan 7, 2014 at 5:33 AM, Sire, David <[email protected]> wrote:

Marcelo,I got the appendices and the comment form OK, but the EIS link gives me a "File orDirectory not found."



(202) 208-6661

On Mon, Jan 6, 2014 at 4:21 PM, Calle, Marcelo <[email protected]> wrote:Thanks. You should receive an email with links to download. Let me know if you have any trouble.Regards



On Mon, Jan 6, 2014 at 11:36 AM, Sire, David <[email protected]> wrote:

If you have an FTP site, Google Drive, or other electronic means, we can use thatinstead of you having to send a CD. Whatever you prefer.



(202) 208-6661

On Mon, Jan 6, 2014 at 1:31 PM, Calle, Marcelo <[email protected]> wrote:Will do Mr. Sire.

On Fri, Jan 3, 2014 at 12:25 PM, Sire, David <[email protected]> wrote:

Marcelo,Might as well send us what you have now. That way you'll have more time toaddress any suggestions we might have. We'll only be looking to ensure thedocument complies with NEPA requirements.



(202) 208-6661

On Fri, Dec 27, 2013 at 6:03 PM, Calle, Marcelo <[email protected]> wrote:Good Afternoon Mr. Sire,

As Mr. Spencer has requested I will plan to mail you a copy of the Four Corners Power Plantand Navajo Mine Energy Project Preliminary Draft EIS (PDEIS). Recognizing the PDEIS maychange in response to comments received from the cooperating agencies please let me know ifyou prefer reviewing the PDEIS after revisions are made.

Alternatively, I can send you the PDEIS now and then send you the PDEIS again after revisionsare made. We appreciate you assistance and want your review to be as effective and efficient aspossible.

The cooperating agencies will have until February 7, 2014 to submit their comments to OSM.We will then work through February 2014 to resolve all comments. Currently we are planning topublish the NOA for the DEIS in early April 2014.

Thank you in advance for your assistance and best regards,

On Fri, Dec 27, 2013 at 7:33 AM, Spencer, Stephen <[email protected]> wrote:Marcello: In order to facilitate OEPC's review process leading to the Clearance to Print,please provide David Sire, our Natural Resources Management Team Leader at HQ, a copy ofthe CD with the Preliminary Draft. I am copying him so he knows it is coming. His address is:



David SireUnited States Department of the InteriorOffice of the SecretaryOffice of Environmental Policy and Compliance1849 C Street, NW - MS 2462 MIBWashington, DC 20240

Thanks

Steve

On Thu, Dec 26, 2013 at 11:46 AM, Calle, Marcelo <[email protected]> wrote:Good afternoon,

Hope all had a merry and restful holiday. Last week on December 19, 2013 OSM mailedyou all a copy of the the Preliminary Draft EIS (PDESI) for the FCPP and Navajo MineEnergy Project.

Please notify me when you have received. OSM would like to make sure all cooperatingagencies have opportunity to comment before publishing the the DEIS in April 2014. Pleaseplan to forward all comments to me by February 7, 2014 using the Comment Form providedwith the PDEIS.

OSM is planning to convene a meeting in Denver mid to late February 2014 to discusscomments received during cooperating agency review.

Please complete the Doodle scheduling pole at the link below so we can determine the bestdate for this meeting.

http://doodle.com/yn27yy642uwhm6ts

If you are unable to attend in person OSM will provide a conference line.

Please contact me if you have any questions.

-- Marcelo Calle

EIS Coordinator, The Four Corners & Navajo Mine Energy ProjectOffice of Surface Mining Reclamation and EnforcementProgram Support Division, Indian Programs Branch1999 Broadway, Suite 3320Denver, CO 80202-3050

[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

-- Stephen R. Spencer, PhDRegional Environmental OfficerOffice of Environmental Policy and Compliance



U.S. Department of the Interior1001 Indian School Road NW, Suite 348Albuquerque, NM 87104Phone: (505) 563-3572 Fax: (505) 563-3066 Cell: (505) [email protected] Site: www.doi.gov/oepc/albuquerque.html

-- Marcelo Calle


[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

-- Marcelo Calle


[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

-- Marcelo Calle




[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

-- Marcelo Calle


[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

4/23/2014 DEPARTMENT OF THE INTERIOR Mail - Re: Approval to publish



Re: Approval to publish1 message

Sire, David <[email protected]> Mon, Feb 24, 2014 at 6:16 PMTo: "Calle, Marcelo" <[email protected]>

David said he'd CC me on the email. That'll be enough for me. When they all realized how much Michael Georgehad been involved and that NPS was a cooperating agency, they didn't think a comment letter was appropriate.

On Monday, February 24, 2014, Calle, Marcelo <[email protected]> wrote:Melissa Trenchik indicated that they would forward comments from Michael George. Not the plananymore? Will no comments be adequate for OEPC?

On Mon, Feb 24, 2014 at 3:32 PM, Sire, David <[email protected]> wrote:I just spoke with David Hurd at NPS. He's planning to send you an email today or first thing tomorrow sayingthey have no comments.

On Monday, February 24, 2014, Sire, David <[email protected]> wrote:I'm happy with NPS's word, but it would be good to see the letter just to be safe. You can go aheadand send me the aproval form if you like. Scan the signed form and email it to me.

On Monday, February 24, 2014, Calle, Marcelo <[email protected]> wrote:David,

What is you availability to assist with the NOA -DEIS approval to publish this week? Given the NPSglitch we are now trying to forward the NOA package to HQ by the end of the week, preferablyThursday.

I hope to receive a revised letter from NPS soon. Will the revised NPS letter

Thanks for your assistance.

-- Marcelo Calle


[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

--

(b) (5)

(b) (5)

4/23/2014 DEPARTMENT OF THE INTERIOR Mail - Re: Approval to publish


Sent from my iPhone

-- Sent from my iPhone

-- Marcelo Calle


[email protected]

(303) 293-5035 Office

(303) 293-5032 Fax

-- Sent from my iPhone

4/23/2014 DEPARTMENT OF THE INTERIOR Mail - Four Corners



Four Corners1 message

Sire, David <[email protected]> Fri, Mar 28, 2014 at 7:17 AMTo: Willie Taylor <[email protected]>

FYI: OSM's Four Corners Power Plant/Navajo Mine DEIS was published today. A longtime in the making. Steve Spencer has been our POC, but we also reviewed the draft inhere (which you approved for printing.)http://www.gpo.gov/fdsys/pkg/FR-2014-03-28/pdf/2014-06641.pdf Dave SireNatural Resources Management Team Leader


(202) 208-6661

1.5.2 Summary of Issues

(b) (5)

Four Corners Navajo Energy Project Description · As operator of the Four Corners Power Plant, ......

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