Post by blackcrowheart on Jan 19, 2006 15:39:55 GMT -5
Navajo extend right to operate pipeline
By JIM EFSTATHIOU JR.
Bloomberg News
El Paso Corp., owner of the largest U.S. network of natural gas
pipelines, on Tuesday reached an interim agreement extending through
this year the company's right to operate a line across Navajo Nation
land.
"Substantial controversy" remains between the company and the Navajo
Nation as to compensation for a long-term extension of the pipeline
right of way, Houston-based El Paso said in a statement. The interim
agreement will provide more time to negotiate on the 900-mile
pipeline, which extends across Arizona and New Mexico, the company
said.
The Navajo are seeking $22 million a year for rights to operate the
line, El Paso spokesman Bruce Connery said. Under a 20-year agreement
that expired in October, El Paso paid $27 million, he said. The
yearly cost was less than $1.4 million.
American Indians have historically been underpaid for rights to run
pipelines, power lines, railroads and highways across their land,
said Margaret Schaff, a lawyer and energy policy analyst for a group
of U.S. Northwest tribes. Congress has ordered the Bureau of Indian
Affairs to develop standards for determining fair compensation for
rights of way.
Connery said the Navajo Nation didn't threaten to shut down the
pipeline when the past agreement expired.
"The Navajo have not given any indication that they want to either
take over the pipeline or discontinue service," he said. "It's matter
of how much consumers end up paying at the end of the day."
By JIM EFSTATHIOU JR.
Bloomberg News
El Paso Corp., owner of the largest U.S. network of natural gas
pipelines, on Tuesday reached an interim agreement extending through
this year the company's right to operate a line across Navajo Nation
land.
"Substantial controversy" remains between the company and the Navajo
Nation as to compensation for a long-term extension of the pipeline
right of way, Houston-based El Paso said in a statement. The interim
agreement will provide more time to negotiate on the 900-mile
pipeline, which extends across Arizona and New Mexico, the company
said.
The Navajo are seeking $22 million a year for rights to operate the
line, El Paso spokesman Bruce Connery said. Under a 20-year agreement
that expired in October, El Paso paid $27 million, he said. The
yearly cost was less than $1.4 million.
American Indians have historically been underpaid for rights to run
pipelines, power lines, railroads and highways across their land,
said Margaret Schaff, a lawyer and energy policy analyst for a group
of U.S. Northwest tribes. Congress has ordered the Bureau of Indian
Affairs to develop standards for determining fair compensation for
rights of way.
Connery said the Navajo Nation didn't threaten to shut down the
pipeline when the past agreement expired.
"The Navajo have not given any indication that they want to either
take over the pipeline or discontinue service," he said. "It's matter
of how much consumers end up paying at the end of the day."