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THURSDAY, DECEMBER 19, 2002

Ed. Note: Indianz.Com received the same letter from Peabody Energy.

"Peabody's Arizona lease agreements with the Navajo and the Hopi were signed in the mid-1960s. These agreements were granted as prospecting permits with the lease royalty terms specified by the tribes and approved by the Department of the Interior. Peabody paid a coal royalty of up to 37.5 cents per ton, which was more favorable to the tribes than any other coal holders in the United States at that time.

The Navajo also allege that the Secretary of the Interior has a duty as its trustee to give special preference to the tribe at the highest possible royalty rate. However, under the lease agreement between Peabody and the Navajo, the secretary is charged with establishing a royalty rate at a "reasonable" level, or a rate fair to both parties. In oral argument Dec. 2, 2002, before the U.S. Supreme Court, counsel for the Navajo Nation agreed that the secretary had an obligation to be fair to both Peabody and the Navajo Nation."

Get the Story:
Letter: Article Misstated Facts About Tribal Coal Royalties (Fredrick Palmer. The Yankton Press & Dakotan 12/19)

Relevant Links:
Navajo Nation - http://www.navajo.org
Peabody Energy - http://www.peabodyenergy.com

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