New Mexico and coal

Introduction
Coal production is significant to the economy of New Mexico, as the third largest source of revenues from mineral and energy production. Coal resources underly 12 percent (14.6 million acres) of the state, mostly in the northern areas of the San Juan and Raton basins. 46 percent of the state’s total energy needs are met through coal power.

The average coal cost in New Mexico is high, for example in 1997 the average price per ton was $22.64 compared to $6 per ton for Wyoming. New Mexico lacks an integrated rail network and the ratio of seam thickness to mining, transportation, and health and safety costs, as well as the deregulation of the power industry, leads to this cost difference.

History
Beginning in the 1850s, coal production and mining became important to the economic development of New Mexico. The first growth of the coal industry was driven by westward expansion and the development of the railroads, with yearly production first exceeding 1 million short tons in 1889. In 1918, this first cycle of coal production peaked at over 4 million short tons of coal. After World War I, production dropped continually through the depression of the 1920s and early 30s. By 1958, coal production had dropped to 86,000 short tons, in part due to cheap natural gas and the conversion of diesel engines by the railroad.

In the 1960s, coal production began to increase due to the growing population of the Southwest and California. By 1997, annual coal production had reached 26.77 million short tons. The large surface mines of the San Juan Basin (McKinley, Navajo, and San Juan) began operating in the 1960s and 70s and are still used today.

Impact of Current Power Plants and Strip Mines
Peabody Coal has operated two of the largest strip mines in the U.S. (the Kayenta and Black Mesa mines) on Black Mesa since 1965. Beginning in the 1970s, Peabody Coal Company pumped more than 4,500 acre-feet of Navajo and Hopi drinking water from the Navajo aquifer, in order to run their coal-slurry operations. The slurry was sent through a 273 mile pipeline from Black Mesa to northern Arizona and southern Nevada, where it was used to provide electricity to residents of California, Nevada, and Arizona. Between 1965 and 2004, Peabody used more than 60 percent of the Navajo Aquifer for industrial use. One of the impacts of draining billions of gallons of groundwater from the aquifer is the lowering of the water table. Reports from the U.S. Geological Survey and the National Resources Defense Council have shown that the Navajo Aquifer water table has dropped significantly and that it continues to deteriorate. Additional environmental damage has been done by the coal slurry pipeline breaking a number of times, resulting in the flooding and contaminating of lands and streambeds by hundreds of tons of slurry.

In addition to the environmental impact, Navajo and Hopi people living on Black Mesa still do not have electricity or running water, which has led to charges of environmental racism and injustice.

Desert Rock Controversy
Opposition to coal in New Mexico has focused on the Desert Rock coal plant project. Desert Rock Energy Company, a Sithe Global Power subsidiary, has proposed to build a 1500 MW supercritical coal plant on Navajo lands in the four corners area of New Mexico near Farmington. The plant will burn low-sulfur, sub-bituminous coal. Diné Power Authority, a Navajo Nation enterprise established to develop natural resources on Navajo lands, has entered into a project agreement with Desert Rock Energy.

The plant has significant opposition, including environmental organizations, local citizens, and legislators.

On December 12, 2006, members of the Diné tribe blockaded a road leading to the proposed plant site in protest of Sithe Global Energy's failure to fully consult with members of the community. Ten activists with the group Dooda Desert Rock set up a campsite on the road. On December 22, under threat of arrest, the campsite was moved to a nearby location, and company vehicles were once again able to access the site. Protestors were forcibly removed from the road by police on Dec. 22, but established a nearby protest campsite and vigil that was still occupied as of Nov. 7, 2007.

The air permit was approved in December 2006, and a draft environmental impact statement (EIS) has been issued. At public hearings on the Draft EIS in late July 2007 in several cities in Navajo territory, hundreds of local residents expressed strong and vocal opposition to the plant. In July 2007, Diné CARE sued the federal Office of Surface Mining for approving an expansion of the BHP Navajo coal mine, which will fuel the plant; oral arguments in this case have been set for April 2008. On July 27, 2007, Gov. Richardson stated his opposition to the plant ; on Aug. 22, the Mountain Ute Tribal Council unanimously passed a resolution opposing construction of the plant. In Sept. 2007, the U.S. EPA expressed concerns about the thoroughness of the Bureau of Indian Affairs draft environmental impact statement.

On Sept. 7, 2007 the construction contract was granted to the Fluor Corp. The tribal leadership – working together with federal legislators – is working to accelerate the permitting process, and hopes for construction to begin by the summer of 2008.

In early May 2008, representatives of Diné Citizens Against Ruining Our Environment met with the upper management of Sithe Global to discuss the cumulative effects of the plant on the Navajo people, global warming, and the increase in construction costs of building the plant. Diné CARE presented Sithe with an alternative energy plan contrasting the development of the coal-fired plant with the ethical laws of the Navajo people directing them to live in harmony with the environment. While the opposition to the plant is significant, proponents of the plant refer to the importance of addressing the serious poverty and substandard living conditions for many of the Navajo Nation. Sithe has committed $5 million to capital improvements of impacted Navajo chapters.

Active

 * Desert Rock
 * Cottonwood Energy Center (On hold indefinitely)

Cancelled

 * Mustang Energy Project

Citizen groups

 * Dine Citizens Against Ruining Our Environment
 * Black Mesa Water Coalition
 * Western Environmental Law Center
 * Dooda Desert Rock
 * Indigenous Environmental Network
 * San Juan Citizens Alliance
 * New Mexico Sierra Club
 * New Mexico Coalition for Clean Affordable Energy
 * Western Resource Advocates
 * Western Shoshone Defense Project
 * Grand Canyon Trust
 * Environmental Defense
 * Black Mesa Indigenous Support

Coal power companies

 * PNM Resources
 * Headquarters in Albuquerque, NM
 * Controls 4 coal-fired generating stations with 1848 MW total capacity
 * Active proposals: Twin Oaks Power Unit 3
 * Sithe Global Power
 * Peabody Energy
 * BHP Billiton
 * Tri-State Generation and Transmission

Mining companies

 * Peabody Western Coal Company
 * BHP Billiton
 * San Juan Coal Company
 * The Pittsburg & Midway Coal Mining Co

Existing coal plants
New Mexico has 11 coal-fired generating units totaling 4,382 megawatts (MW). 10 of these units are larger than 50MW.


 * Four Corners - 2269MW - 1963, 1964, 1969, 1970
 * San Juan – 1848MW – 1973, 1976, 1979, 1982
 * Escalante – 257MW – 1984

Major coal mines

 * Lee Ranch mine
 * San Juan mine
 * Navajo mine
 * El Segundo mine

Related SourceWatch articles

 * Existing U.S. Coal Plants
 * US proposed coal plants (both active and cancelled)
 * Coal plants cancelled in 2007
 * Coal plants cancelled in 2008
 * Profiles of other states (or click on the map)