MacDonald: Where are the Navajo millionaires?

By Kathy Helms
Diné Bureau

WINDOW ROCK — Former Navajo Nation Chairman Peter MacDonald is writing a book. This has required him to do hours of research into resource issues and has led him to a burning question.

Where are the Navajo millionaires?

For nearly 90 years, since the 1920s when oil and gas were first discovered on Navajo, up till now, MacDonald said Wednesday, "Using Navajos' resources water, oil, gas, coal, uranium, and also the land for right-of-way the Navajo have made several thousand millionaires."

"Millionaires in Gallup, Farmington, Flagstaff border towns. But not one Navajo is a millionaire. Isn't that something?

"We've made millionaires in Russia, Britain, China, and every place else ... In the United States, some of them are in California, Texas.

"How long are we going to do that?" MacDonald asked. "We're going to continue to increase that process by doing this Desert Rock."

The Navajo Nation is projected to receive $50 million a year from the Desert Rock Energy Project, a proposed 1,500 megawatt mine-to-mouth coal-fired plant in the Nenahnezad/Burnham area of the Navajo Nation.

Diné Power Authority, a Navajo entity, and Sithe Global Power LLC are partners in the project.

MacDonald questioned state and federal legislations which make it lucrative to invest in developing clean-coal plants.

"It's funny the way this project, Desert Rock, has followed exactly the way Congress has written how clean fuels should be developed," he said, "and all those who are involved in developing these clean fuels in A-B-C manner, that they would get all these subsidies and grants."

MacDonald said it reminded him of "the Halliburton situation all these big money people."

"The legislation appears to be made for Desert Rock. We are the guinea pigs for these huge financial exercises by the 'big people,' " he said. "If it fails, everybody made money except Navajo. No permanent jobs, no power.

"But if it succeeds, there's a huge government subsidy in that (federal) energy legislation. That's what they're using," MacDonald said.

Given that Sithe is funded 80 percent by Blackstone and 20 percent by Reservoir Capital, MacDonald asked, "You know who is going to get their money first? Blackstone. And most of that money will come from the feds."

Members of the Dooda Desert Rock Committee said that as of 9:30 a.m.Wednesday, HB 178, which would give Sithe an $85 million tax break over the life of the Desert Rock project, was "permanently tabled" in the House Energy and Resources Committee.

Elouise Brown of Dooda, who was at the Roundhouse in Santa Fe, said the outcome brought a "sigh of relief" from opponents. "Organizations in opposition of the bill rejoiced with hugs and interviews with media in attendance," she said.

Lori Goodman of Diné CARE said the bill now will be taken up by the Senate. "I'm told that if it moves in the Senate, they (Senate committee) could assign it to another House committee," she said.

If the plant is built, and the investors make money, MacDonald said, "Fine, they continue to make money. If they don't, they're not hurting. They made their money (through subsidies).

"The only one that's left holding the bag with maybe a plant that's half constructed is Navajo Nation. It's a game at the very highest level," he said.