Press Release: Settlement Reached in Legal Dispute Over Kayenta Mine
FACT SHEET
Kayenta Mine:
- Mining began in 1973
- Location:
 Permitted mine area lies within Arizona borders, covers over 44,000 acres in
lands of Navajo Nation and Hopi Tribe
 Mine sits on top of Navajo Sandstone Aquifer (N-aquifer)
 Mine supplies Navajo Generating Station, located 83 miles from the mine in
Navajo Nation in Coconino County, Arizona
- Mining conducted by Peabody Western Coal Company
- Mining permit issued by federal Office of Surface Mining and Reclamation Enforcement
The Players in the Litigation:
Plaintiffs
Native environmental groups:
- To’ Nizhoni Ani
- Black Mesa Water Coalition (BMWC)
- Diné Citizens Against Ruining our Environment
National environmental groups:
- Sierra Club
- Center for Biological Diversity
Defendants
- Peabody Western Coal Company (Peabody)
- Office of Surface Mining and Reclamation Enforcement (OSM)
Intervenor-Defendants
- Salt River Project Agricultural Improvement and Power District (SRP); SRP owns
about 20% of the Navajo Generating Station and operates the Central Arizona
Project, an aqueduct that brings water from Northern Arizona to the Southern and
Western regions of the state
The Litigation:
- Plaintiffs challenged OSM’s 2012 issuance of Permit No. AZ-0001-E, which renewed
Peabody’s Kayenta Mine Permit No. AZ-0001-D; plaintiffs’ allegations included:
 OSM violated several federal laws by treating Permit AZ-0001-E as a renewal
when it was actually a revision – it authorized expanded mine operations and the
relocation of four Navajo families, and impermissibly revised requirements for
monitoring and maintaining water levels
 OSM renewed Peabody’s permit without addressing damage done to the Naquifer by Peabody’s operation of the mine
 OSM did not take a hard look at environmental impacts before renewing permit
 OSM did not comply with the National Historic Preservation Act by failing to
assess if properties on Black Mesa were eligible for protection as Traditional
Cultural Properties
1
Press Release: Settlement Reached in Legal Dispute Over Kayenta Mine
-
Case was conducted before U.S. Department of Interior’s Office of Hearings and Appeals
and Administrative Law Judge Andrew Pearlstein; case number DV-2012-3-R
Key dates:
 Permit Renewal AZ-0001-E granted Jan. 17, 2012
 Plaintiffs file Request for Review Feb. 16, 2012
 SRP intervenes in the case March 12, 2012
 Mediation begins Nov. 13, 2012
 Mediation extended May 28, 2013
 Parties arrive at key points of agreement Aug. 2013
 Parties sign settlement agreement, Apr. 18-29, 2014
 To’ Nizhoni Ani and others file unopposed motion to dismiss, May 8, 2014
Key Terms of the Settlement Agreement (available here):

More relevant and transparent environmental impact review: OSM must consider
the environmental impacts of the Navajo Generating Station and the Kayenta Mine
together in a single environmental impact statement – the NGS-Kayenta Mine Complex
EIS. That approach will make it easier for the public to understand the significant
environmental impacts of both facilities and to identify shortcomings and points worthy
of comment.

Cultural and historical considerations: OSM will make To’ Nizhoni Ani and BMWC
“consulting parties” for the National Historic Preservation Act review process. That
process will identify sites deserving of protection from ongoing mining and will develop
recommendations for how best to avert or mitigate damage to those sites. In addition,
Black Mesa will be considered for entry in the National Register of Historic Places,
which would protect it from disruption from nearby mining or other activities.

Water quantity and quality: OSM must improve its monitoring and reporting of the
quantity and quality of water in the Navajo Sandstone Aquifer. The 2012 Permit
Renewal application sought to allow Peabody to estimate water levels using a computer
model, but the settlement requires Peabody to take actual water level measurements at
well heads above the aquifer. Those measurements will identify whether mining
activities cause material damage to the aquifer.

Consideration of renewable energy in reclamation planning: OSM must plan for how
the mine site will be used after mining ceases. The settlement requires OSM to evaluate
whether the site could be used for a solar or wind energy generating facility. It also
requires OSM to evaluate using that renewable energy to power the Central Arizona
Project.
2