Navajo Nation settlement includes payments, scholarship funds
Posted: Monday, August 22, 2011
The Navajo Nation
settlement with Peabody Energy
that includes an immediate $50 million payment to the tribe.
Peabody also promised $15 million toward infrastructure on the reservation for the next 10 years, The Blog of Legal Times reported.
The company will make $3.5 million annual bonus payments to the tribe and invest $1.55 million in a Navajo scholarship fund.
“It brings an end to what was a complex piece of litigation that required a lot of resources and attention,” attorney Sam Buffone told BLT of the deal.
During the Reagan administration, the tribe sought to renew its lease with
Peabody for a large coal mine on the Arizona portion of the reservation. The new
deal called for the tribe to receive a 20 percent royalty rate.
The Bureau of Indian
initially backed the higher rate. But after a lobbyist for Peabody
secretly met with then-Interior secretary Donald Hodel, the tribe was forced
back to the table and was told that an administrative appeal in Washington,
D.C., wasn't coming any time soon.
As a result, the tribe accepted a 12.5 percent royalty rate for its coal. The rate remains intact through the settlement.
Get the Story:
A Dozen Years Later, Navajo Nation and Utilities Settle Suit
(The Blog of Legal Times 8/22)
Related Stories:Navajo Nation announces settlement for Peabody
Join the Conversation