HOUSE MEMORIAL 71

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Dona G. Irwin

A MEMORIAL

REQUESTING THE SECRETARY OF ECONOMIC DEVELOPMENT TO PROVIDE TECHNICAL ASSISTANCE TO THE NAVAJO NATION, DINE POWER AUTHORITY AND THE DESERT ROCK ENERGY PROJECT IN NORTHERN NEW MEXICO.

     WHEREAS, the top three employers on the Navajo Nation are involved in energy production and mining; and

     WHEREAS, the desert rock energy project, located near the BHP-Billiton Navajo mine, will help absorb workers from the proposed closing of the Pittsburg and Midway mine northwest of Gallup; and

     WHEREAS, the Navajo Nation may face budget shortfalls and job losses when a coal-fired electric plant in Laughlin, Nevada, shuts down for a period of years for plant upgrades; and

     WHEREAS, the technology planned for the desert rock energy project is state-of-the-art and will provide significant increases in air pollution control above the level of the current technology used in the four corners and the San Juan coal-fired electrical generating plants currently in the four corners area; and

     WHEREAS, the desert rock energy project will use dry-cooling technology, will conserve water and will use approximately eighty-five percent less water than older power plants with traditional cooling technology; and

     WHEREAS, the desert rock energy project will use coal from the BHP-Billiton Navajo mine; and

     WHEREAS, the desert rock energy project will permit significant equity ownership by the Navajo Nation; and

     WHEREAS, the desert rock energy project is expected to generate over one billion dollars ($1,000,000,000) in total revenue for the Navajo Nation through 2033, or approximately fifty-two million dollars ($52,000,000) per year from a variety of sources, including coal royalties, coal sales taxes, possessory interest tax, business activity tax, water sales and land leases; and

     WHEREAS, the desert rock energy project is expected to create over two thousand construction jobs, contributing to the local economy during the construction phase, and up to four hundred jobs when construction is complete;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the secretary of economic development be encouraged to assist with long-term planning for infrastructure development to accompany the desert rock energy project, including training, housing and business development planning; and

     BE IT FURTHER RESOLVED that the interim Indian affairs committee, the economic and rural development and telecommunications committee and the water and natural resources committee include scheduling a status report of the desert rock energy project in their work plans; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the secretary of economic development and the secretary of environment.

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