History of Extraction Industries in the Navajo Nation

electricity sources. We also establish a history of significant agricultural activity that makes

agrivoltics an ideal project design in this context going forward.

History of Extraction Industries in the Navajo Nation

The discovery of oil in 1921 outside of Aztec, New Mexico marked the beginning of the extraction industry’s presence on Navajo lands.5 Although the tribal government was resistant to

the idea of leasing land to oil companies, in 1922 the Secretary of the Interior stated that tribal

lands created by Executive Order were available to oil companies through federal ownership of

the land. The Bureau of Indian Affairs would continue to maintain a critical role in leasing

Navajo land, including land allotted for individual families, through the doctrine of federal trust.

Following the arrival of the oil industry, the first leases to coal companies were issued in 1957,

leading to the establishment of the Navajo Mine and, three years later, the Four Corners Power Plant in the northeastern part of the Navajo Nation.6 Since then, coal has played an instrumental

part in the local economy: the Four Corners Power Plant currently operates with an employee

base that is roughly 80% Native, providing a $100 million annual payroll, with an average annual salary of over $100,000.78 An additional $100 million is paid in taxes and fees, much of

which is paid to the tribal government. Our partner, Nonabah, described how employees of the

mine advocated for time to be reserved for spiritual practice during the workday, which was

especially important because of the extraction of natural resources they were participating in.

5 River of Lost Souls. How oil and greed led to the 1923 centralization of Navajo government, 2016. https://riveroflostsouls.com/2016/12/21/how-oil-and-greed-led-to-the-1923-centralization-of-navajo-government/ 6 San Juan CitizensAlliance. Timeline: FCPP/Navajo Mine Complex, 2016. https://www.sanjuancitizens.org/wp-content/uploads/2016/04/FCPP-Historic-Timeline _ 04.20.2016.pdf 7AZ Central. New Mexico panel considers future of coal-fired power plant, 2021. https://www.azcentral.com/story/money/business/energy/2021/08/30/new-mexico-panel-considers-future-of-four-cor ners-power-plant/5660944001/ 8 Navajo Transitional Energy Company. Navajo Mine. https://navenergy.com/navajo/

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Due to a combination of environmental regulations, competition with cheaper electricity sources,

and supply-chain issues, coal companies across the Navajo Nation have been forced to reduce or

shut down operations since the 2000s. The largest power plant in the Navajo Nation, Navajo

Generating Station, closed in 2019 along with its coal source, the Kayenta Mine. With an

average salary of $141,500, employees were not only supported economically, but through

investments in local infrastructure and free coal for Native residents during winter months, similar to the contributions of the Four Corners Power Plant.9 At the time, the Navajo Generating

Station was the largest operating power plant in the Western United States, and had become a

major source of economic prosperity for local Navajo and Hopi communities.

In March 2021, Arizona Public Service published its pledge to transition to carbon-free energy by 2050, which included planned closure of the Four Corners Power Plant by 2031.10 As part of

its “Just Transition Plan,” Navajo and Hopi communities would receive $144 million for

“community assistance” paid over the course of up to ten years; however, no plans have been announced to establish renewable energy projects in these areas.11 Public Service Company New

Mexico, which has a 13% ownership stake in the plant, has been seeking to exit the plant by

2024 by transferring its share to the Navajo-owned Navajo Transitional Energy Company in

hopes of maintaining a future for the plant; in December 2021, the transfer was blocked by New

Mexico regulators, a move that was supported by environmental activists wishing to accelerate

9 Bloomberg. The End of Coal Will Haunt the Navajo, 2017. https://www.bloomberg.com/news/features/2017-10-13/the-end-of-coal-will-haunt-the-navajo 10APS. APS announces plans for seasonal operations at Four Corners Power Plant, 2021. https://www.aps.com/en/About/Our-Company/Newsroom/Articles/aps-announces-plans-for-seasonal-operations-at-f our-corners-power-plant 11Utility Dive. APS’ s plan for closing coal plants could be a gamechanger, analysts say, but who will pay?, 2020. https://www.utilitydive.com/news/apss-plan-for-closing-coal-plants-could-be-a-gamechanger-analysts-say-bu/59146 8/

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the closure of the plant.12 Starting in 2023, the plant will be operating one of its two units

seasonally as a means to transition to full closure.

A driving force of plant and mine closures have been due to the efforts of environmental activists

over concerns about the environmental and health impacts of using coal for energy. Our partner,

Nonabah, shared her experiences with some of these activists; many were non-Native and often

spoke negatively of tribal communities that continued to operate mines and power plants. Even

Native activists are sometimes viewed with suspicion for speaking on behalf of communities to

promote the closure of plants and mines without contributing to a viable alternative for the

energy production and economic benefit that the coal industry had brought.

Meeting with Lucinda Bennalley. As part of our background for the project, Nonabah arranged

our meeting with Lucinda Bennalley, former president and vice president of the local

Nenahnezad chapter, which is located within the Four Corners area. During our meeting, she

recounted the story of the coal industry in the local area, beginning with the establishment of the

first coal lease. Her own family had relinquished their grazing land for the establishment of the

mine and NAPI. Lucinda’s grandfather, Hasteen Yellowman, was the community’s first Navajo

Nation council delegate, and advocated for development because of the potential for jobs.

Lucinda explained that the local chapter worked with coal companies to provide post-secondary

scholarships for Navajo students and local infrastructure. As president, she requested Navajo

Mine to provide street lights for an obscured road, which continues to be maintained by the

company today. Lucinda expressed a feeling of empowerment by working with the coal

companies for the benefit of the community, which she contrasted to stereotypes of Native

people as being lazy or accepting handouts. She shared her frustrations with environmental

12 Albuquerque Journal. PRC denies PNM Four Corners coal plant exit, 2021. https://www.abqjournal.com/2454764/prc-denies-pnm-four-corners-coal-plant-exit.html

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