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Black Mesa-Kayenta Mines LEASEHOLD AREA
Land Use & Community Development Plan
DECEMBER 2005

Black Mesa - Kayenta Mines Leashold Area Land Use & Community Development Plan
DECEMBER 2005

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Black Mesa-Kayenta Mines LEASEHOLD AREA
Land Use & Community Development Plan
December 2005

Table of Contents
1. INTRODUCTION .........................................................1 Project Plan Development.......................................1 Brief History .............................................................2 Purpose ......................................................................4 Background ...............................................................4 Process & Initial Findings .......................................5 2. PLANNING PROCESS .................................................6 3. CITIZEN’S INVOLVEMENT PLAN ................................9 Introduction ..............................................................9 Purpose ....................................................................10 Education Process ..................................................10 Public Meetings ......................................................11 Methods of Communication.................................11 4. ASSESSMENTS: WHERE ARE WE NOW?....................12 Introduction ............................................................12 4.1 Survey Results.................................................................13 4.2 Community Setting ........................................................15 Location ...................................................................15 Planning Area .........................................................15 Existing Land Use ..................................................18 4.3 Demographics .................................................................19 Introduction ............................................................19 Demographics and Housing ................................20 Age ...........................................................................21 Housing ...................................................................21 Housing Condition ................................................22

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Race and Ethnicity .................................................22 Mobility ...................................................................23 Employment............................................................23 Income......................................................................26 4.4 Natural and Cultural Resources Assessment .............27 Topography .............................................................27 Geomorphology......................................................27 Soils and Slope........................................................28 Surface Water ..........................................................29 Groundwater...........................................................31 Vegetation................................................................34 Grazing ....................................................................35 Wildlife.....................................................................40 4.5 Infrastructure Assessment .............................................46 Introduction ............................................................46 Roadways ................................................................46 Utilities.....................................................................49 Communications ....................................................49 Water Facilities........................................................49 Buildings..................................................................52 Airport .....................................................................53 Coal Handling Facilities........................................53 5. VISION: WHERE DO WE WANT TO BE? .....................55 Introduction ............................................................55 Vision Statement.....................................................56 Goals and Objectives .............................................56 6. LAND USE & COMMUNITY DEVELOPMENT PLAN: WHAT DO WE KEEP AND HOW SHALL IT BE UTILIZED? .........................................................65 Introduction ............................................................65 Land Use & Community Development..............66 Owl Springs Sector ................................................68 Sandsprings Sector.................................................71 Great Springs Sector ..............................................78 Yellow Water Sector ...............................................83 White Grass Sector.................................................87 White House Sector ...............................................92 7. ACQUISITION PLAN: HOW DO WE GET THERE? ........96 Costs and Potential Funding ................................96 Potential Economic Development Opportunities ......................................................97 REFERENCES

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APPENDICES Appendix A. Initial Flyer Appendix B. Newsletters (3) Appendix C. Survey Questionnaire

LIST OF FIGURES Figure 1. Figure 2. Figure 3. Figure 4. Figure 5. Figure 6. Figure 7. Figure 8. Figure 9. Figure 10. Figure 11. Figure 12. Figure 13. Figure 14. Figure 15. Figure 16. Figure 17. Figure 18. Figure 19. Figure 20. Figure 21. Figure 22. Figure 23. Figure 24. Figure 25. Figure 26. Planning Process ..............................................7 Land Use Planning Timeline ........................11 Location Map ..................................................16 Planning Area .................................................17 Soils ..................................................................30 Grazing Units .................................................37 Major Impoundments that Support Riparian and Aquatic Habitat ......................42 Roadways ........................................................48 Utilities.............................................................50 Water Facilities ...............................................51 Buildings, Airport and Coal Handling Facilities ...........................................................54 Leasehold Sectors...........................................67 Owl Springs Sector Current Land Use .......69 Owl Springs Sector Future Land Use .........70 Sandsprings Sector Current Land Use .......74 Sandsprings Sector Future Land Use – Alternative 1 ................................................75 Sandsprings Sector Future Land Use – Alternative 2 ................................................76 Sandsprings Sector Future Land Use – Alternative 3 ................................................77 Great Springs Sector Current Land Use .....81 Great Springs Sector Future Land Use .......82 Yellow Water Sector Current Land Use......85 Yellow Water Sector Future Land Use ........86 White Grass Sector Current Land Use........90 White Grass Sector Future Land Use..........91 White House Sector Current Land Use ......94 White House Sector Future Land Use ........95

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LIST OF TABLES Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11. Table 12. Table 13. Table 14. Table 15. Table 16. Table 17. Table 18. Table 19. Table 20. Table 21. Table 22. Table 23. Table 24. Table 25. Table 26. Table 27. Table 28. Table 29. Table 30. Table 31. Table 32. Living Arrangements ....................................13 Type of House Construction ........................13 Age of Homes in the Leasehold Area .........13 Type of Utilities Provided to Homes in the Leasehold Area....................................14 Land Reuse Options ......................................15 Population and Household Characteristics ................................................20 Population Projections: 2010-2025 ...............20 Age Characteristics: 2000 ..............................21 Housing Characteristics ................................21 Housing Condition: 2000 ..............................22 Ethnicity Characteristics ...............................23 Mobility Characteristics ................................23 Labor Force, Employment and Unemployment Characteristics ...................24 Percent Employment by Industry Sector ...25 Percent Employment by Industry Sector: Census Designated Places (CDP) ................26 Income Characteristics ..................................26 Soils ..................................................................29 Seasonal Livestock Carring Capacity .........34 Roadways ........................................................46 Water Facilities ...............................................52 Potential Buildings for Retention ................52 Owl Springs Facilities and Desired Use .....68 Facilities within Sandsprings Sector ...........71 Alternative 2 for Sandsprings Sector Facilities and Desired Use ............................73 Facilities within Great Springs Sector.........78 Great Springs Sector Facilities and Desired Use ............................80 Facilities within Yellow Water Sector..........83 Yellow Water Sector Facilities and Desired Use .............................................84 Facilities within White Grass Sector ...........87 White Grass Sector Facilities and Desired Use ............................89 Facilities within White House Sector..........92 White House Sector Facilities and Desired Use ............................93

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1. INTRODUCTION
PROJECT PLAN DEVELOPMENT
During 1964 and 1966, the Navajo and Hopi tribes set aside some 65,000 acres from which the natural resource coal could be mined. Exploration was conducted, leases signed, and two mines--Black Mesa and Kayenta--were subsequently opened by Peabody Western Coal Company (Peabody). Recently, the Black Mesa Mine ceased production in December 2005. In 2003, Speaker Lawrence T. Morgan of the Navajo Nation Council met with families of the leasehold area to discuss the future potential closure of Black Mesa and Kayenta Mines. In response to meetings with these impacted community members, Speaker Morgan determined the need for a Land Use and

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Community Development Plan, one that focuses on and clearly conveys the unified voice of the people. The intent of the planning by the leasehold residents is for the community to use this plan in the post mining era as a guide for future community and economic development. Once the Office of the Speaker clearly articulated this need, the work began among community members, including a consulting firm used to assist the community and in the process draw on additional inputs from the Black Mesa Review Board with assistance from Peabody. While various interested parties participated in the development of the Land Use and Community Development Plan, the clear intent of the process and the plan will be driven by the community members, particularly the residents in the impacted areas.

Brief History
Resource development on the Navajo Nation began with an oil boom in the 1920s and flourished in the 1950’s as the Navajo Tribal Council decided to explore systematic development of the Navajo Nation’s mineral resources. Among the proposed projects was Peabody Black Mesa Mine, a coal mining operation. With growing needs in the face of declining oil revenues in the early 1960s, the Navajo Nation supported the proposed mining plan. Prospecting agreements were initially signed in 1961 with support from the U.S. Department of the Interior and the Navajo Area Bureau of Indian Affairs (BIA), followed by a lease agreement. Peabody negotiated the lease with the Navajo Nation for 25,000 acres on the Navajo Nation’s land in 1964 and in 1966 an agreement with the Navajo and Hopi tribes added 40,000 acres of the Joint Use Area. Two separate mines were subsequently installed: the Black Mesa and Kayenta. The Black Mesa Mine produced coal that was mixed with water and slurried through the Black Mesa Pipeline Company’s pipeline to Mohave Power Plant in Laughlin, Nevada. The Kayenta Mine delivers coal by rail to the Navajo Generating Station in Page, Arizona. The Black Mesa Mining complex has had a significant impact on the lives of local Navajo people. The coal mining operation was one of the few onreservation industries that hired many people. The jobs it provided pay well, particularly by the standards of the area. By the early 1980s, some of the jobs at the

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mine paid in the $20 per hour range. The employment at the mines enabled many local people to achieve a standard of living previously unavailable in the region. Those that were required to move, as specified in the leases, were relocated within or adjacent to the leasehold in order to remain as close as possible, and new homes were provided for those that were relocated. With the exception of the ongoing mining operations, the land use in the region has seen minimal historical change. There are 68 residences located within the leasehold area, with 63 on the Navajo Nation and five on the Hopi Reservation. Peabody’s mining operations are unique because they know it is important to honor people’s desire to stay in their homes and not relocate them until the land is needed to mine the coal in the area that they live. The predominant land uses in the area are livestock grazing, scattered residences and undeveloped areas of open spaces that serve as wildlife habitat, grazing and limited agriculture, gathering of plant materials, outdoor recreation, hunting, and some commercial trapping. Grazing, including sheep, goats, cattle and horses is a yearround activity in the area. Grazing also occurs, to some degree, within the leasehold in areas that have either been reclaimed or are designated “coal reserve areas” for potential future mining activity. The Black Mesa and Kayenta Mines leasehold boundaries include over 59,000 acres of the Navajo Nation. The leasehold area on the Hopi Reservation accounts for just over 6,000 acres. Approximately 13,000 acres of all the Navajo and Hopi land within the leasehold area have been reclaimed, with over 4,000 acres that have been used by livestock under a managed grazing program. All reclaimed areas are managed to return a stable, productive and sustainable resource on reclaimed lands that meet postmine land use goals of grazing, wildlife habitat, and restoration of plants that have cultural, medicinal, and ceremonial significance to the Navajo Nation and Hopi Tribe. In 2003 and 2005, Peabody received the Good Neighbor Award from the U.S. Department of Interior for achievement of exemplary interaction, communication and involvement with the surrounding land owners and local community. Peabody received the Director’s Award in 2002 for outstanding cultural, historic and archaeological resource preservation, and the National Award in 1998 and 2005 for developing and implementing exemplary mining and reclamation methods that maintain sound environmental conditions. Peabody is responsible by regulation (Surface Mining Control and Reclamation Act of 1977, SMCRA 1977) and lease commitments for reclaiming lands disturbed by mining to a condition compatible with and capable of supporting the post-mining land uses. Peabody's reclamation procedures address how the post-mining land uses will be achieved by describing those activities that will be conducted following the extraction of coal, and continuing until the land is returned to the appropriate tribal and land management agency. About 1,145 acres of reclaimed lands in the N1/N2 area were successfully returned in 2004. Any changes that may be made to the existing post mine land uses of grazing, wildlife habitat and cultural plant restoration will need to be submitted by Peabody, approved by the Navajo Nation Resources Committee (at a minimum), and approved by the U. S. Office of Surface Mining through SMCRA.

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PURPOSE
The purpose of this project was to develop a Land Use and Community Development Plan that sets a direction for future community development and economic growth, particularly with consideration to issues and opportunities associated with the closure of Black Mesa Mine in December 2005 and future closure of Kayenta Mine. The Land Use and Community Development Plan consist of various existing roads, water facilities, impoundment ponds, structures and utility lines. The Land Use and Community Development Plan provides, among other things, a framework for community and economic development in the leasehold area, a review of the Citizens Involvement Plan and an overview of the leasehold’s current infrastructure and natural and cultural resources. Most importantly, it sets a direction for future development and economic growth. .

BACKGROUND
For many centuries, the Navajo people have treasured the land and prayed it would sustain and provide them with a good life. Even to this day, the earth is considered of great consequence to the lives of the Navajo people and for the essential life it provides. Many Navajos continue to want their children to hold on to the traditional lifestyles while also working in contemporary fields. These notions are held true to the heart when the community is planning the future so that forthcoming generations will enjoy a good life as well. Thus, planning for the future of the leasehold residents includes respect and tenure of and for the land as well as an emphasis on jobs so residents can continue to live and work in the leasehold area. Finding the balance between these two aspects of community planning is complex and difficult for the impacted families because to realize their dreams, they believe they must first be recognized as an individual community by the Navajo Nation and Peabody, and further that interested parties must pay heed to their concerns. Over the years since the Black Mesa and Kayenta Mines were established, many people have faired well within the local mining economy. However, other local residents have not felt so fortunate, and indeed have expressed hardship because of what they address as a lack of infrastructure to some homes. As well, other community

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members have expressed concerns over potential environmental hazards. In addition, many impacted families expressed frustration about not being able to obtain assistance by their affiliated chapters or the Navajo Nation. It is believed by the impacted families that this lack of attention to their concerns is due to the perceived benefits some members have gained from the mines. Further, many residents report they are without the basic necessities even though they may be living directly under a utility line servicing the mining operations. These residents believe that systematic infrastructure such as access to electricity and water was promised to the leasehold residents in the early 1960’s when leases were initially signed. Peabody records indicate the first drilling and exploration permit with the Navajo Nation was acquired in 1961 and prepared by the Bureau of Indian Affairs (BIA). This permit specified a royalty for a future lease and the terms were presented by the BIA in consultation with the Navajo and Hopi tribes. The original lease was signed in 1964. Today issues associated with coal supply, water, litigation and consent decree, caused a temporary closure of Black Mesa Mine on December 31, 2005. In consideration of Peabody’s lease expiration in the future, Black Mesa and Kayenta Mines’ leasehold residents began to speak for themselves and more formally develop their wants, needs and desires in this Land Use and Community Development Plan. The impacted families of the leasehold area intend this document to be their voice so they can begin to be viewed, economically, politically, and socially as a viable and valid entity capable of becoming a well planned, self sustaining community.

PROCESS & INITIAL FINDINGS
A survey, work sessions with the impacted family members on August 3-4, 2005, and September 16, and 28, 2005 in addition to a public hearing on September 6, 2005, resulted in a clear message from the community. Most of the impacted families in the leasehold want the mines to stay open while reusing some of the unused facilities such as the roads, buildings, electrical structures and ponds for economic and community activities. Residents want to see that usable components of the Black Mesa and Kayenta Mine’s infrastructure are appropriately incorporated into the leasehold community when mining is completed. They do not want to see the land revert to its “natural” state as required under federal laws with respect to the mined areas. Rather, the impacted families believe the existing infrastructure provides many opportunities for continued community and economic development and presented their ideas directly to the Navajo Nation Office of the Speaker and Black Mesa Review Board on October 4, 2005. The survey, public hearing, and work sessions provided the community a place not only for their voices to be heard, but a place where their messages were captured for action. Thus, the Land Use and Community Development Plan described herein presents the vision of opportunities developed by the people, and was directly compiled from the words of the people who voiced their ideas, hardships and hopes, and personal visions as well as their concerns and appreciations.

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2. PLANNING PROCESS
A land use planning process (FIGURE 1) to develop the Land Use and Community Development Plan was developed at the onset of the project. To streamline and simplify the process as well as make it accessible to the public, four integral steps in the plan’s formation were identified: Assessments: Where are we now? This step consists of several assessments to determine where the community is now. Demography, infrastructure, geographic location, housing availability and affordability along with income were evaluated. Natural and cultural resource assessments are also included here because they ultimately affect the community’s ability to develop land and infrastructure.

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Where are we now?
Assessments

Resident Input & Participation

Where do we want to be?
Participation Plan Vision

What do we keep and how shall it be utilized?
Land Use & Community Development Plan

How do we get there?
Acquisition Plan

FIGURE 1

PLANNING PROCESS

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Vision: Where do we want to be? This step examines the community’s vision for the future. During work sessions, participants worked together to generate a list of the community’s wants and needs pertaining to the mining operation. Impacted families were asked, during the work sessions held on August 3-4, 2005 to look into the future and describe what they would like to see and how they envisioned land use after the mine closes. From this work session, the goals and objectives were formulated and reviewed once again on August 17, 2005. After that, the vision, goals and objectives were presented at a public hearing held on September 6, 2005. Relevant comments were incorporated. Land Use and Community Development Plan: What do we keep and how shall it be utilized? This step draws from the goals and objectives to designate future land uses for development. Impacted families were able to designate these land uses at a work session held on September 16 and 28, 2005. The ideas of the impacted families are depicted on the future land use maps. Acquisition Plan: How do we get there? This step identifies an acquisition plan and the impact on the Navajo Nation. A final meeting was held on January 3, 2006 after this step to ensure the land use plan document incorporates all of the above steps and clearly conveys the community’s vision. The key to making these four steps work is laying a solid foundation through community involvement at the outset of the plan’s creation. To do this, the Citizen’s Involvement Plan was implemented. This plan described the methods employed to educate the leasehold area residents about the land use planning process and it strongly encouraged all people involved to work together through the coordination of impacted families throughout each step of the process. This component of the plan was strongly emphasized by working hard to disseminate information about public hearings and work sessions through a multitude of pathways.

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3. CITIZENS INVOLVEMENT PLAN
Introduction
Involvement of the impacted families of the Black Mesa and Kayenta Mines was paramount to the success of the Land Use and Community Development Plan. With this in mind, an outreach program was mounted to inform the impacted families about the various ways they could contribute to the plan’s development. As a result, impacted families voiced their ideas, opinions and/or concerns and were actively involved throughout the entire planning process. The first step in the land use planning process was the development and approval of a community education and participation plan. The Black Mesa Review Board approved the Citizen’s Involvement Plan on July 5, 2005. It was specifically

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written to be used as a guide that would ensure impacted families had the greatest possible opportunity to learn and participate in the development of the Land Use and Community Development Plan.

Purpose
The primary objective of the Citizen’s Involvement Plan was to provide opportunities for the maximum level of involvement of the impacted families in the plan’s development in the following ways: • By providing a means for effectively educating and informing the impacted families. • By engaging impacted families and the general public in an open discussion about the future of the impacted areas. • By developing ideas as to options for the re-use of the land and facilities within the impacted areas. • By identifying potential issues and avoiding surprises along the way. • By ensuring the area’s concerns regarding re-use and any potential issues related to re-use are fully understood and addressed. • By generating confidence and credibility in the planning process and in the final plan. • By conveying the planning process and planning activities so that all parties involved will know what is going on. • By keeping the planning process moving forward and the project completed within the allocated time.

Education Process
The education process primarily relied on home visits, public meetings including work sessions and public hearings to inform the community on the project’s progress at various stages and receive feedback about the project, prioritization and the leasehold resident’s goals and objectives for the future. The three major modes of communication were: • Home visits provided direct access to impacted families residing within the lease area and allow for one-to-one meetings with the distribution of newsletters and the completion of surveys. • Work sessions offered the community a more informal and hands-on approach to participating in the planning process. • Public hearings were more of a formal setting to obtain views and comments of impacted families and the public regarding the project. Local impacted families were especially encouraged and urged to attend and participate. All information pertaining to the land use plan was available to the public.

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Public Meetings
FIGURE 2 presents an overview of the various public meetings along with the dates when the meetings occurred. These meetings were set up and executed for the purpose of providing education for the community members, obtaining community input and encouraging active participation in the development of plans for the community’s future

BMRB MEETING

VISION WORK SESSIONS

VISION & LAND USE DESIGNATION WORK SESSION

PUBLIC HEARING

Methods of Communication
A variety of methods were used to disseminate information and facilitate public participation. These include: emails; telephone calls; newsletters and flyers. Flyers were delivered to the homes, placed in common public areas and at popular businesses and word of mouth was heavily utilized. An initial flyer (APPENDIX A) was distributed in early July that described the timeline, the goals of the projects and the importance of public participation. Three newsletters were also distributed in July, August and September (APPENDIX B) that informed the impacted families of the project’s progress, status of the survey questionnaires, and provided an overview of the existing infrastructures and the vision, goals and objectives based on previous work sessions. The newsletters also continued to encourage people to attend the work sessions. Communication was a very important element to the success of the land use planning project. Every attempt was made to provide advance notification of the upcoming planning activities as well as to provide information about the status of the project.

6, 20 SE 05 PT EM BE R 16 ,2 O 8, CT 20 O 05 BE R 4, 20 JA 05 N U A RY 3, 20 06
MAPPING WORK SESSIONS PRESENTATION FINAL TO THE OFFICE MEETING OF THE SPEAKER & BMRB

34, 20 05

5, 20 05

SE PT EM BE R

A U G U ST

JU LY

A U G U ST

17 ,2 00 5

FIGURE 2
LAND USE PLANNING TIMELINE

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4. ASSESSMENTS: WHERE ARE WE NOW?
Introduction
In planning for the future, the Land Use and Community Development Plan took a comprehensive perspective and examined as many aspects of the leasehold area as it could. Each aspect of the leasehold area such as survey results, community setting, demographics, natural and cultural resources and infrastructure can limit or provide opportunities for the community’s growth. When these factors are examined as a whole, as they are below, it enables the community to evaluate the leasehold area, what the future needs are, how they are interrelated, and how best to make them happen for as many people as possible.

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4.1 SURVEY RESULTS
Consistent with the massive effort to distribute information to all of the impacted families in the leasehold area, the consultants designed a three-page questionnaire to gather and document the community members’ concerns, interests, ideas, thoughts and plans particularly with reference to the reuse of the land and facilities of the mining leasehold area (APPENDIX C). The questionnaire was distributed with the first Land Use Re-Use Planning Project Newsletter in August, 2005. Project personnel also made individual home visits to the impacted families to gather additional information and encourage participation in the survey. . A total of 101 questionnaires were completed. Ninety-six of the questionnaires represent families that live in the leasehold area. Five questionnaires were from families that do not live in the leasehold area but who have grazing permits that extend into it. One questionnaire lacked location information. Based on TABLE 1. LIVING ARRANGEMENTS information derived from the surveys, 64.0 percent of those who answered were Number of Number of affiliated with the Forest Lake Chapter. Families Per Home Homes 1 33 Members of the Kayenta Chapter made 2 24 up 34.0 percent while there was one 3 10 person from Greasewood Springs and 4 7 one person from Rough Rock. 5 8 Although 101 questionnaires were collected, in actuality 307 families were represented because multiple families live in the homes. Only 33 of the homes surveyed had only one family living within. Thus, most of the homes had two or more families, and at least seven of the surveys claimed nine families lived within each homes (TABLE 1). The survey results indicate that 65.0 percent of the families live in construction-built homes, 17.7 percent in hogans, 8.4 percent in mobile homes, and 7.9 percent listed other (TABLE 2). Two of the forms were left blank for this item. Homes in the leasehold area vary in age with the majority (48.4 percent) being twenty years and older (TABLE 3). Although nearly half of the homes are less than twenty years old, many homes lack basic amenities. Only 19.8 percent have running water and only 43.6 have electricity; however, some do have solar
6 7 8 9 6 3 1 7

TABLE 2. TYPE OF HOUSE CONSTRUCTION
Construction Number of Homes (%) No Response 1.0 Mobile Home 8.4 Construction Built 65.0 Hogan 17.7 Other 7.9

TABLE 3. AGE OF HOMES IN THE LEASEHOLD AREA
Age No Response 1-5 Years 6-10 Years 11-15 Years 16-20 Years 20+ Number of Homes (%) 5.0 8.0 16.8 16.8 5.0 48.4

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power. While the survey indicates less than 20 percent of the homes have running water, the remaining 80 percent without running water have access to potable water which is obtained from two public water stands within the leasehold area. Most families rely on propane and wood/coal heating. Significantly less than half of the homes have septic systems (TABLE 4).

TABLE 4. TYPE OF UTILITIES PROVIDED TO HOMES IN THE LEASEHOLD AREA
Yes (%) 19.8 71.3 12.9 43.6 35.6 73.3 3.9 No (%) 77.2 25.7 84.1 53.5 61.4 23.7 94.1 No Response(%) 3.0 3.0 3.0 3.0 3.0 3.0 2.0

Running Water Propane Solar Electricity Septic Wood Other

The statistics indicate a congested existence in homes that lack basic amenities-electricity and running water. Despite these seemingly crowded conditions and what at best may be considered Spartan conditions, the impacted families love the land and are tied to the area through centuries of cultural continuity and grazing traditions. To this end, most community members still recognize “grazing permits” that no longer exist by statute. Grazing permits on the Navajo Partitioned Land (NPL) were cancelled or suspended as part of the former Joint Use Area (JUA) land dispute between the Navajo Nation and Hope Tribe. Responses to the questionnaire give a good indication of the dedication to and confusion over grazing rights. Some 90 percent of the respondents said, whether they have grazing permits or not, that they feel grazing is extremely important. While 11.8 percent of the respondents were not sure if they had grazing permits, 64.4 percent do have permits held by themselves or their family for many generations. In addition to asking the community about grazing rights, the survey also contained questions pertaining to the continuity of the mines and the potential for forming a separate chapter. In the 101 responses, a large number of respondents (45.5 percent) indicated they want the mines to remain open, 30.7 want closure, 17.8 percent were not sure, and 6.0 percent provided no answer. Community members were asked about their views on land reuse planning and how they would like to see the leasehold area used after the mines close, if they close, and were given four closed-end options from which to select. The following options were provided: Option 1. Open and clear grazing land. 2. Leave buildings and reuse for something else. 3. Return to its natural state. 4. Not sure. As shown in TABLE 5, many respondents (24.8 percent) were not sure which of these options they would prefer. From the options, 21.7 percent chose leaving and reusing buildings while 15.7 percent indicated they prefer open and clear grazing land, and

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14.8 percent chose return to natural state. Other respondents indicated they desire a combination of options. Combining options, 6.0 percent chose a combination of Options 1 and 2 (open/clear grazing and leave/reuse buildings) while 5.0 percent chose a combination of Options 2 and 3 (leave/reuse buildings and return to natural state). Ten percent chose a combination of Options 1 and 3 (open/clear grazing and return to natural state).

TABLE 5. LAND REUSE OPTIONS
Number Preferred Option 1 16 Option 2 22 Option 3 15 Combination of 1 & 2 6 Combination of 2 & 3 5 Combination of 1 & 3 10 Not Sure 25 No Response 2 Percent Preferred 15.7 21.7 14.8 6.0 5.0 10.0 24.8 2.0

In summary, while most respondents said they wanted the mines to remain open, the results were closely split. All of the families in the leasehold area feel strongly that grazing is extremely important and do not want this to change; however, they wish to see improvements to the land and to their homes. Many hope that if the mines close, reuse of the mining infrastructure will provide economic opportunities, but they also do not want to loose sight of their traditional way of life—grazing livestock on ancestral land. They want to see their children continue to prosper from the best of both worlds—traditional ways and contemporary opportunities. For those who want to see the mines closed and all of the land reclaimed, the survey has allowed them a voice through which they formalized their concerns and have been heard and documented.

4.2 COMMUNITY SETTING
Location
Peabody’s lease area is on Black Mesa in the central part of the Navajo Nation in northeastern Arizona’s Navajo County. It covers about 64,800 acres of the northern portion of the mesa approximately 20 miles southwest of Kayenta and 30 miles north of Pinon (FIGURE 3).

Planning Area
The area within the lease boundaries is the planning area (FIGURE 4). According to Peabody, the approximate breakdown for the different activity areas for the leasehold area is summarized as follows: • Total Leasehold Area: 64,800 Acres • Previously Mined and Reclaimed Area: 13,000 Acres • Active Mining and Disturbance Area: 8,000 Acres • Future Mining Area under Permit Revision: 7,500 Acres • Coal Reserve Areas: 6,000 Acres

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Existing Land Use
There are not anticipated to be any significant changes in land use in the vicinity of the mine complex, with the exception of the transition to new areas to be mined and subsequent reclamation to grazing, wildlife habitat and cultural plant use in areas that have previously been mined. Revegetation as part of the reclamation contains provisions to restore culturally significant plants including pinyon and juniper in the post-mining landscape. Pinyonjuniper and cultural plant restoration will provide seed sources in the reclamation which will increase the reinvasion potential of these species into the reclaimed landscape. During site clearing activities, the tree materials are placed in piles, when feasible. These piles are available for the residents and tribal members to use as firewood. Grazing and farming are an important land use in the area, from both an economic and cultural standpoint. Surveys completed during the mid 1980s showed 31 small fields on the leasehold, primarily for growing corn. The total acreage of the fields was approximately 138 acres, which represents 0.213 percent of the total lease area. These plots were typically located on the terraces adjacent to major drainages that are not normally disturbed by mining activities. Some of these areas may have been abandoned over the past 20 years. In most situations, the plots are small, averaging about 4.5 acres or less in size and are often located near the home sites of one or more individuals. As areas are opened to surface mining activities, these individuals are relocated outside of the reclaimed areas. It is possible, and has been the case in the past, that residents may continue managing grazing programs in reclaimed areas after they have been relocated, as they are generally still within close access to the grazing areas or farm plots. Peabody continues to support the following infrastructure and land uses on the leasehold and within the immediate area around the leasehold • maintenance of facilities not used in mining operations such as light duty vehicle roads used for public activities (e.g., school bus routes); • maintenance of home site access routes, reconstruction of livestock ponds, which naturally deteriorate with time; • maintenance of drinking and livestock water acquisition sites; • maintenance of the coal distribution facility; • assistance with solid waste disposal; and, • funds paid to families for temporary use of land while mining occurs based on tribal law and lease agreements. The only areas that are fenced are areas that have been reclaimed, long-term topsoil stockpiles, areas that might pose safety hazards to humans or livestock, and facilities and areas requiring security measures such as warehouses. Livestock and wildlife are able to access those portions of the leasehold that have not been disturbed from the active operations. Livestock are permitted on reclaimed areas that are either part of a managed grazing program approved by Peabody or reclaimed lands that have been released back to the Navajo Nation and residents.

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4.3 DEMOGRAPHICS
Introduction
Information for this study comes from a variety of sources. Data from the 2000 U.S. Census identifies demographic characteristics by county, local jurisdictions, Navajo Nation and the state. Data from State agencies, including Department of Economic Security and Department of Commerce, the Navajo Nation, as well as Navajo County was used. In addition to Federal, State and County agency information, individual community data and the area economic information all come from a variety of sources. Peabody also provided relevant data regarding leasehold area data and employment. In the course of the data collection, it was found that information might vary from one source or agency to another. For example, the U.S. Census data can be different from survey data collected by the Navajo Nation; State of Arizona unemployment figures also vary from those figures developed and used by the Navajo Nation, for a number of reasons. In these instances, the data collected by the department or entity closest to the source of the data was used. The rationale for using the data is discussed in detail in the particular section of the study where the data is presented. In addition to reviewing a number of data sources and conducting interviews, previously completed relevant reports were reviewed and considered in terms of their data, methodology and basis for analysis to develop consistency in data analysis for this study, as well as to identify trends and establish a baseline of historical data. The Navajo Nation chapters that are analyzed in detail and characterized as the impacted chapters for this study are: • Chilchinbeto • Forest Lake • Kayenta • Shonto

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Demographics and Housing
There are four chapters associated with the Land Use and Community Development Plan. In 1990, the combined population of the four chapters was 8,853. The chapters’ populations kept pace with the Navajo Nation’s and grew 20.0 percent to total 10,632 in 2000, which represents about 6.8 percent of the total population of the Navajo Nation. The number of residents on the leasehold area is estimated to be approximately 175 persons. TABLE 6 identifies population and household trends and characteristics for the surrounding area, as well as comparisons to other relevant jurisdictions. TABLE 6. POPULATION AND HOUSEHOLD CHARACTERISTICS
Population (1990) 248,709,873 3,665,228 128,356 1,177* 444* 4,902* 2,330* 77,658 Population (2000) 281,421,906 5,130,632 155,214 1,325* 573* 6,315* 2,419* 97,470 Population (est. 2004) 292,801,000 5,832,150** 187,152*** 1,406*** 615*** 6,366*** 2,553*** 107,420** Households (2000)(1) 105,480,101 1,901,327 31,295 333 174 1,618 644 30,043

United States Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Sources: U.S. Census Bureau (2000) * Navajo Nation: Chapter Images (2004) ** AZ Department of Economic Security (2005) *** Navajo Nation Division of Economic Development (2005) (1) A household includes all the people who occupy a housing unit as their usual place of residence.

The projected growth shown for the area in TABLE 7 does not indicate a significant increase in the number of new residences in the chapters within the leasehold. Assuming an average household size of 3.7 persons per household, there may be 35 additional homes per year built in chapters in the leasehold area in the next twenty years. A great majority of the new homes would probably be concentrated in Kayenta, given the availability of more public services and job opportunities.

TABLE 7. POPULATION PROJECTIONS: 2010-2025
Population (2000) 5,130,632 155,214 1,325* 573* 6,315* 2,419* 97,470 Population (2010) 6,145,108* 186,257** 1,572** 688** 7,114** 2,852** 99,979* Population (est. 2020) 7,363,604* 223,508** 1,886** 826** 8,537** 3,422** 111,946* Households (est. 2025) 9,993,039* 245,859** 2,075** 909** 9,390** 3,764** 117,920*

Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Sources: U.S. Census Bureau (2000) *Navajo Nation: Chapter Images (2004) * AZ Department of Economic Security (2005) ** Navajo Nation Division of Economic Development (2005)

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Age
The Navajo Nation has a relatively young population when compared to other jurisdictions, as summarized in TABLE 8. The percent of residents that are of school age is consistently higher for the four chapters when compared to Arizona and Navajo County, and the percent of the population that is 65 years of age and older is typically lower than other jurisdictions. These two characteristics of the population result in a comparatively low median age for the Navajo Nation. The median age of residents within the chapters mirrors the age profile for the Navajo Nation. TABLE 8. AGE CHARACTERISTICS: 2000
Total Population 281,421,906 5,130,632 155,214 1,325 573 6,315 2,419 97,470 School Aged 5-19 (%) 21.8 22.1 34.9 35.2 28.8 37.1 35.3 30.0 Age 65 or older (%) 12.4 13.0 7.0 8.5 11.5 4.3 7.0 10.0 Median Age (years) 35.3 34.2 24.1 22.5 28.4 22.6 24.4 30.2

United States Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Source: U.S. Census Bureau (2000) Navajo Chapter Profiles (2004)

Housing
Housing characteristics for the area are summarized in TABLE 9. The median home value for the chapters in the area, as well as the Navajo Nation, is well below the median home value for the State and for Navajo County. On the other hand, the median home value for all communities in the area is typically higher than the median values for the Navajo Nation. Single-family attached and detached homes represent the majority of the housing types. Mobile homes account for about 17 percent of all housing units, which is less than the figure for Navajo County and the Navajo Nation, but higher than the figure for the State of Arizona. TABLE 9. HOUSING CHARACTERISTICS
Total Housing Units 1990 2000 102,263,678 115,904,641 1,659,430 2,189,189 48,385 59,498 NA* 561 NA* 292 1,294 2,132 266 1,042 38,967 47,413 Type of Housing Unit (2000) (1) Single Mobile Home 76,313,410 8,779,228 (7.6%) 1,375,489 302,575 (13.8%) 45,576 11,118 (18.7%) 482 79 (14.1%) 276 8 (2.7%) 1,124 816 (38.3%) 890 128 (12.3%) 32,596 11,458 (24.1%) Median Home Value (2000) $111,800 $109,400 $23,800 $30,200 $44,400 $27,000 $29,500 $69,200

United States Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Source: U.S. Census Bureau (2000) (1) A housing unit is a house, an apartment, a mobile home or trailer, a group of rooms, or a single room occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. * Records are not available.

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Housing Condition
The condition of housing is generally characterized by the age of the homes and the availability of basic facilities, such as plumbing and heating. Complete plumbing facilities are defined as hot and cold piped water, a bathtub or shower, and a flush toilet. As shown in TABLE 10, the percent of homes lacking complete plumbing facilities is lower for communities within the four chapters than the majority of homes throughout the Navajo Nation, but the figures are still considerably higher than the figures for the State of Arizona and Navajo County. Many of the residents in the area, as is typical throughout the Navajo Nation, depend upon cistern systems for water, often hauling significant distances on a weekly basis. This circumstance accounts for much of the condition that homes do not have “complete plumbing facilities” as defined by the Census Bureau. Most households on the Navajo Nation and those within the impacted chapters’ area rely on either wood or coal for heating fuel. Generally, wood is available as a source of fuel throughout the community, while additional firewood and coal is provided free of charge by Peabody to residents within the lease area. The coal distribution service is an important winter heating source, as both wood and propane are costly for many Navajos to use throughout the winter. TABLE 10. HOUSING CONDITION: 2000
Year Built Prior to 1990 1990-2000 96,203,583 19,701,058 1,547,891 42,353 441 187 1485 778 34,165 641,298 17,145 120 105 647 264 13,248 Type of Heating Fuel Electric Wood or Coal 32,010,401 (27.6%) 1,769,781 wood 142,876 coal 1,033,095 (47%) 1,156,094 3,255 (5.5%) 20,896 wood 888 coal 16 (3%) 243 wood 17 (6%) 71 wood 17 coal 260 (12%) 422 wood 123 coal 17 (2%) 333 wood 46 coal 2,176 (6%) 44,697 Lacking Complete Plumbing Facilities 1,335,167 (1.2%) 39,632 (1.8%) 26,930 (45.3%) 173 (30.8%) 75 (25.7%) 302 (14.2%) 281 (27.0%) 7,360 (15.5%)

United States Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Source: U.S. Census Bureau (2000)

Race and Ethnicity
As would be expected, the great majority of the population in the area is classified as Native American, according to the 2000 Census, as shown in TABLE 11. A great majority of the Black Mesa and Kayenta Mines employees are Native American, estimated to be at least 90 percent of all the employees and contractors.

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TABLE 11. ETHNICITY CHARACTERISTICS
Navajo Nation American Indian/ Alaska Native White Black/ African American Asian, Hawaiian/ Pacific Islander Hispanic/Latino± 149,423 3,861 128 135 1,914 Hopi Reservation 6,442 269 14 5 131 Navajo County 46,532 44,752 857 368 8,011 Arizona 255,879 3,873,611 158,873 98,969 1,295,617 U.S. 2,475,956 211,460,626 34,658,190 10,641,833 35,305,818

±Note: Hispanic/Latino may also be of another race. Source: U.S. Census Bureau (2000)

Mobility
The percent of residents living on the Navajo Nation in 2000 that were also born there is a significantly higher percentage in comparison to the State of Arizona TABLE 12. This is also the case for residents living in the same house since 1995. This is consistent with the tradition that tribal members tend to settle in one location, particularly remaining in an area to maintain close family connections; on the other hand, Arizona has one of the highest in-migration rates in the country. TABLE 12. MOBILITY CHARACTERISTICS
Navajo Nation Navajo County Arizona Number (%) of Residents 123,317 (79%) 67,403 (69.1%) 1,779,492 (34.7%) 31,552 (20.5%) 28,011 (28.7%) 2,639,275 (51.4%) 585 (0.5%) 2,056 (2.1%) 711,865 (13.9%) 105,335 (75%) 35,210 (25%) 54,025 (55.4%) 35,150 (36.1%) 2,103,907 (41%) 2,648,817,(51.6%)

Place of Birth Arizona Other U.S. Outside U.S. New Residents Since 1995 Same House in 1995 Different House in 1995

Source: U.S. Census Bureau (2000)

Employment
The total labor force, employment and unemployment figures for the Navajo Nation are summarized in TABLE 13. The Arizona Department of Economic Security provides monthly data on unemployment and labor force for jurisdictions in Arizona. This data, however, does not consider the unemployed that are no longer eligible for unemployment benefits. The numbers do not accurately reflect the true number of unemployed on the Navajo Nation.

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TABLE 13. LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT CHARACTERISTICS
Arizona Year 2004 2003 2002 2001 2000 1990 Labor Force 2,762,612 2,690,294 2,667,477 2,577,933 2,489,348 1,806,323 Employment 2,630,998 2,539,359 2,502,720 2,456,515 2,390,899 1,707,287 Unemployment 131,614 150,935 164,757 121,418 98,449 99,036 Unemployment Rate 4.8% 5.6% 6.2% 4.7% 4.0% 5.5%

Source: Arizona Department of Economic Security (2005)

2003 2002 2001 2000 1986*

58,101 57,062 56,054 55,041

Navajo Nation 30,464 30,776 32,420 30,818 40,742

26,286 26,286 23,634 24,223

47.57% 46.07% 42.16% 44.01% 40.6%

Sources: Navajo Nation Department of Economic Development (2005) * Robinson: 1988 (Denver Research Institute) Bureau of Indian Affairs, Hopi Agency (2005)

For example, the State figures showed an unemployment rate of 23.5 percent in 2000 for the Navajo Nation; the Navajo Division of Economic Development also collects figures based upon more complete surveys of Navajo Nation residents that showed an unemployment rate of about 47.6 percent for the same period. The Department also provides an Indian Labor Force Report to the U.S. Department of Interior every two years, which excludes all non-Indians from the calculations. The unemployment rate from this report in 1999 was 53.88 percent, and 52.19 percent in 2001. Using 1986 figures from Robinson (1988), which are based upon information from the Navajo Nation at the time, the unemployment rate for the Navajo Nation has increased from 40.6 percent in 1986. According to the Navajo Nation Division of Economic Development, major employers on the Navajo Nation in 2002 were the Navajo Nation (≈8,000), the State of Arizona, including school districts (≈4,200); Navajo Area Indian Health Services (≈3,000), Bureau of Indian Affairs Office of Indian Education Program (≈2,300), State of New Mexico (≈1,300) and Peabody (≈690). According to the “Comprehensive Economic Development Strategy of the Navajo Nation”, prepared by the Division of Economic Development, there are several key characteristics of the Navajo Nation labor force: • The number of employed has changed very little since the department began to collect data in 1991. The figure is generally in the area of 30,000 employed. On the other hand, more people are becoming eligible for the work force, resulting in a need to create up to 3,544 new jobs each year. It is estimated that about 200 jobs per year are created on the Navajo Nation. • Most of the jobs are in the support services sector, which is confirmed by the data in Table 14. On the other hand, the “basic industries” that bring jobs and income from outside the Reservation (such as manufacturing, agriculture, mining, tourism) are few in comparison.

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• There are a number of arts and crafts vendors, as well as food vendors who sell their products at roadside stands and flea markets on and off the Reservation. These individuals are not counted as officially employed, nor is their income counted in the personal income for the Navajo Nation. As indicated in TABLE 14, the “Government” and “Services” sectors represent the greatest percent of employment for the Navajo Nation. The “Government” employment is considerably higher than Navajo County and the State of Arizona, most likely reflecting a lack of private sector jobs. As stated earlier, Peabody was identified as the largest private sector employer on the Navajo Nation with a relatively low number of employees in comparison to the larger government employers. TABLE 14. PERCENT EMPLOYMENT BY INDUSTRY SECTOR
Navajo Nation 1986* 2000**** Arizona 2000** Navajo County 2000***

INDUSTRY SECTOR Farm, Agriculture Services, Forestry and Other Mining Construction Manufacturing Transportation and Public Utilities Retail and Wholesale Trade FIREa Services/Other Government Total Employment

2.8 5.5 2.9 5.0 11.4 9.1 2.3 36.6 24.4 40,742

0.9 4.7 2.8 1.2 7.1 9.9 1.4 47.2 24.8 30,818

1.0 0.5 8.7 10.2 7.8 15.5 7.9 43.0 5.0 2,233,004

2.3 1.4 11.1 5.4 8.3 14.7 3.8 43.7 9.2 29,575

Sources: * Robinson: 1988 (Denver Research Institute) ** U.S. Census Bureau (2000) *** Arizona Department of Economic Security (2005) **** Navajo Nation Department of Economic Development (2005) a: FIRE: Finance, Insurance and Real Estate

Within the Navajo Nation, mining represents a much higher percent of industry employment, which is to be expected given the proximity to the Black Mesa-Kayenta Mines. It is also consistent with the information regarding location of residence for employees at the mines. It should be noted the “Total Employment” figures in Table 14 vary from those identified in Table 13, as the figures in Table 13 are from the State of Arizona and tribal sources, while the figures in Table 14 are from the 2000 U.S. Census. Data for employment characteristics at a chapter level are generally not available from the U.S. Census, but there is information available for areas identified as “Census Designated Places (CDPs)”. The Census Bureau defines CDPs as “communities” that do not have separate municipal government, but in many ways resemble cities or villages. CDPs are delineated to provide data for settled concentrations of population that are identifiable by name but are not legally incorporated. The boundaries are defined in cooperation with local or tribal officials, but are not fixed. CDP boundaries may change from one census to the next to reflect changes in settlement patterns.

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Within the four chapters, there are three CDPs for which detailed employment information is available: Chilchinbeto, Kayenta and Pinon. Data for these areas are shown in TABLE 15, and provides an indication of the types of employment by industry in the study area.

TABLE 15. PERCENT EMPLOYMENT BY INDUSTRY SECTOR: CENSUS DESIGNATED PLACES (CDP)
Industry Sector Farm, Agriculture Services, Forestry and Other Mining Construction Manufacturing Transportation, Communication and Public Utilities Retail and Wholesale Trade FIREa Services/Other Government Chilchinbeto CDP 0 20.0 0 0 Kayenta CDP 1.1 12.3 7.8 0.6 Shonto CDP 0 12.1 12.1 2.4

0 0 0 60.0 20.0

4.4 8.7 0 59.5 5.6

6.3 0 0 62.7 4.9

Source: U.S. Census Bureau (2000) aFIRE – Finance, Insurance, and Real Estate

Income
The per capita income and median family income for residents within the four chapters area is $23,602 (TABLE 16), which is comparable to the Navajo Nation, but still well below the median family income for Navajo County and the State of Arizona. The percent of persons below poverty level, as defined by the U.S. Census Bureau, is very high for communities in the impacted chapters area, as well as for the Navajo Nation. This is consistent with the high unemployment rate found in the area. It is likely that the percent below poverty level is underestimated for the Navajo, as is the case with unemployment. TABLE 16. INCOME CHARACTERISTICS
Per Capita Income $21,587 $20,275 $7,486 $5,745 $3,638 $8,698 $8,573 $11,609 Median Family Income $50,046 $46,723 $23,209 $26,029 $9,479 $27,689 $31,214 $32,409 Persons Below Poverty Level 33,899,812 698,669 65,001 647 264 2,459 828 28,054 % Below Poverty Level 12.4 13.6 41.9 47.3 62.3 38.8 34.4 28.8

United States Arizona Navajo Nation: Chilchinbeto Chapter Forest Lake Chapter Kayenta Chapter Shonto Chapter Navajo County

Source: U.S. Census Bureau (2000) Navajo Nation: Chapter Images (2004)

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4.4 NATURAL AND CULTURAL RESOURCES ASSESSMENT
The source of information for this section originates from the Peabody Permit Application on file with the Office of Surface and Mineral Mining. For more complete descriptions of natural and cultural resources in the leasehold area please, refer to this reference.

Topography
Black Mesa is a massive highland in northeastern Arizona covering approximately 2.1 million aces. Along its northern boundary, the mesa rises abruptly as a jagged, 1,200 to 2,000 foot high escarpment, then descends gently toward the south in a series of rolling hills to the Little Colorado River. Maximum elevation at the northern rim of the mesa is roughly 8,200 feet. Most of the Mesa, however, is rolling countryside. Along the northern part of the leasehold, the Yale Point Sandstone, which caps the northern rim of Black Mesa, tends to form exaggerated topographic highs that are dissected by deeply incised washes. The leasehold area is situated in portions of the following United States Geological Survey (USGS) 7.5’ topographic quadrangles: Long House Valley; Marsh Pass SE; Great Spring; Yucca Hill; and Cliff Rose Hill.

Geomorphology
Geologically, Black Mesa is part of the Colorado Plateau Province. It is characterized by an absence of severe deformation, which usually occurs near plateau boundaries; however, the province has been relatively stable since late Precambrian times. Mineable coal deposits on Black Mesa occur within the Wepo Formation, which is the middle member of the Mesa Verde Group. The Wepo Formation is underlain by the Toreva Formation and overlain by the Yale Point Sandstone. All three formations are present only on Black Mesa. Regionally, Black Mesa lies within a group of northerly trending uplifts: the Defiance on the east; the Monument and Paiute on the north and the Echo Cliffs and Kaibab to the west. Most of the structure in the area consists of folds and faults that are oriented in a northwest-southeast direction. Many of these folds can be traced for over 100 miles. In the immediate vicinity of the lease, the most important fold is the Oljeto Syncline, which extends north to south through the western part of the leasehold. Within and adjacent to the leasehold, most of the faults are oriented in an east-west direction whereas most of the folds are oriented north-south parallel to the Oljeto Syncline. Erosion has removed mineable coal deposits from the crest of most anticlines, but left it in the areas of major synclines. Due to erosion, and because coal has burned at many outcrops, commercial quantities of coal are concentrated in isolated fields or sub areas within the leasehold. Coal has also burned in many places along washes that cut through the Wepo Formation and Yale Point Sandstone, forming resistant masses of baked shale and “clinker” materials that weather to step-sided and flat-topped buttes.

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Numerous faults are of minor importance and exhibit little surface displacement except in those areas where they have truncated massive sandstone layers in the larger Yale Point and Toreva Sandstone formations. Maximum displacement on the faults seldom exceeds 40 feet. Faults are typically normal in character and probably result from tensional forces from gentle folding and uplift of Black Mesa during late Cretaceous time. None of the tectonic activity in the immediate vicinity of the leasehold area was widespread or severe enough to result in production of igneous rocks, either intrusive or extrusive. In summary, the dominant geomorphic features of the leasehold and vicinity include: • cliff-forming Yale Point and Toreva Formations; • very low apparent dip of the strata, which results in gently rolling, relatively flat-topped topography; • deeply incised nature of the washes; and, • resistant nature of the “clinkered” material, which tends to form rounded buttes at the margin of the mineable coal. For additional information about the geology or geomorphology of the leasehold area, refer to the Peabody Permit Application on file with the Office of Surface Mining.

Soils and Slope
The deeper soils in the leasehold area occur at lower elevations in or adjacent to terraces of drainages and on gently to moderately sloping landforms. The soils in the higher elevations, such as in the northeastern portion of the planning area, are generally steeply sloping, high in rock fragments, and/or shallow to bedrock. Nevertheless, these soils occur in climates with slightly more soil moisture to foster the growth of coniferous and mixed woodland plant communities. Four major soil groups have been identified and mapped in proposed disturbance areas. These soils represent the components of less resolved mapping units throughout and surrounding the leasehold. The soil groups are distinguished on the basis of parent materials. These groups include: • residual soils derived from interbedded sandstones and shales of the Mesa Verde Formation; • porcellanite-derived soils; • eolian soils; and, • alluvial soils. Within these four major soil groups there are many individual subtypes of soil (TABLE 17). The soil distribution is shown in FIGURE 5. A detailed description of these soils is available in the Permit Application on file with the Office of Surface Mining.

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TABLE 17. SOILS

Surface Water
All runoff from the leasehold flows to the Colorado River via the Little Colorado River and its main tributaries, Dinnebito, Moenkopi, Coal Mine, and Yellow Water Canyon washes. Surface water drainage development, quantity and quality are controlled by stratigraphy, folding, faulting, structural uplift, entrenchment and the amount and intensity of precipitation as well as the surrounding soil and vegetation. While uninfluenced overall by these elements, the major washes tend to run counter to the dominant fabric of the region. Typical for the area, these washes are extremely steepsided and are contained in relatively narrow canyons with only minor alluvium development. Additionally, most streams on the mesa are intermittent and carry large amounts of water only following spring runoff and summer thunderstorms. The main factors affecting runoff include interception, infiltration, transmission, noncontribution by internal drainages, and the effect of convectional and frontal storm systems. In the case of the major streams, unconsolidated surficial deposits intercept and absorb much of the precipitation and channel flow. Much of the intercepted water is retained near the surface and is evaporated or transpired. The streams are also influent, with their channels underlain by relatively permeable rocks resulting in high transmission losses. Areas of internal drainage, while reducing total surface runoff are highly favorable for ground-water recharge.

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Groundwater
Geographically, the leasehold is situated in the south-central part of the Colorado Plateau Physiographic province. Landforms of the reservations are characterized by alternating resistant and weak rock strata. The larger basins and uplifts control movement of ground water through the region and divide the area into five hydrologic basins. The leasehold area lies within the Black Mesa hydrologic basin. Within this basin, the largest water-yielding units include the Coconino and Navajo aquifers. Smaller but still important systems in ascending stratigraphic order are the Entrada Sandstone, Cow Springs Sandstone, sandstone members of the Morrison Formation, Dakota Sandstone, Toreva Formation, Wepo Formation and quaternary alluvium. The C-aquifer system is stratigraphically the lowest of these systems. In the vicinity of the mining operation it is a poor source of ground water because of low transmissivities. It supplies water to approximately 50 wells and springs in the area. The Naquifer system is the main source of water at Black Mesa and within the Hopi Reservation and the Navajo Nation. Over 500 wells and springs obtain their water from the N-aquifer system, including the well field supplying the coal slurry pipeline at the mine. The D-aquifer system is of marginal to unsuitable quality for drinking and is the source of water to approximately 125 wells and springs in the area. The Wepo is of marginal to unsuitable quality for drinking. Only about 50 wells or springs obtain water from the Wepo Formation. (http://www.wrcc.osmre.gov/BlkMsaQ_A/BMFAQ.htm). The Coconino Sandstone (C-aquifer system) The Coconino Sandstone is composed of very fine to medium-grained well sorted quartz grains. The grains are coarser near the southern extent of the unit along the Mogollon Rim and finer to the north. The De Chelly Sandstone is a thick-bedded fine to medium grained sandstone, and is hydraulically connected with the Coconino and the Shinarump Member of the Chinle Formation. The Chinle and Moenkopi Formations consist primarily of mudstone and siltstone. The Chinle Formation and the De Chelly and Coconino Sandstones are the primary sources of ground water; other members of the Chinle and Moenkopi Formations are very fine grained, and act as aquicludes.

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The C-aquifer system yields water of good chemical quality except southwest of Leupp and in the northern part of the Black Mesa basin where excessive amounts of dissolved solids could render it unfit for use. The C-aquifer includes the Coconino Sandstone, De Chelly Sandstone, Moenkopi Formation and the Shinarump Member of the Chinle Formation. The Navajo Aquifer (N-aquifer) The Lukachukai member of the Wingate Sandstone, Moenave Formation, Kayenta Formation and Navajo Sandstone comprise what is referred to as the N-aquifer system. The Lukachukai Member consists of a fine to very finegrained quartz sandstone that is homogeneous throughout the region. The Moenave Formation consists of two sandstone members, the Dinosaur Canyon and the Springdale Members. These consist of coarse to very finegrained quartz sandstone with a large percentage of silt and firm calcareous cement. The Kayenta Formation consists of a sandy facies and a silty facies, both bonded with calcareous cement. The Navajo Sandstone is composed of medium to fine-grained quartz sand bonded with weak calcareous cement. The sandstone contains many lenticular beds of cherty limestone. Because of high porosity and loose cementation, the Navajo Sandstone and Lukachukai Member of the Wingate Sandstone are the primary water producing units in the N-aquifer system. The quality of the water within this system is very good. The Dakota Aquifer (D-aquifer system) The Dakota is a significant aquifer in the region. The system includes the Entrada Sandstone, Summerville Formation, Cow Springs Sandstone, sandstone members of the Morrison Formation and the Dakota Sandstone. The Entrada Sandstone and Summerville Formation both consist of a sandstone and silty sandstone facies. In both cases, the silty facies is well cemented. The Cow Springs Sandstone is well sorted, fine-grained quartz that is also firmly cemented. These deposits are extensive, encompassing the southern half and western portion of the region. The sandstone tongues are quite extensive and interfinger with members of the Morrison Formation. The Morrison Formation is the uppermost Jurassic unit in the region, and is comprised of four members. These are from oldest to youngest: 1) the Salt Wash Member, which consists of fine to coarse-grained lenticular sandstone beds and mudstone; 2) the Recapture member, which consists of friable fine to medium –grained sandstone interstratified with shaly mudstone; 3) the Westwater Canyon Member, which consists of fine to coarse-grained sandstone and minor shaly mudstone; and 4) the Brushy Basin Member, which consists of shale interbedded with some mudstone and fine to medium-grained sandstone. The Cretaceous Dakota Formation is comprised of three lithologic types deposited under fluvial, lagoonal and shallow marine conditions. The lower fluvial member consists of well-cemented, medium to fine-grained quartz sandstone with a basal conglomerate in some places. The middle member consists of carbonaceous flat bedded mudstone and siltstones, coal and

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interbedded sandstone lenses. The upper shallow marine sandstone member differs somewhat in lithology from the lower because it has a greater amount of very fine sand and silt and in several areas forms alternating sandstone ledges and intercalated shaly beds. Yields of wells tapping the D-aquifer system range from 10-25 gpm. The water quality is marginal to unsuitable for drinking due to sulfate and dissolved solids concentrations exceeding U.S. Public Health Service’s recommended drinking water limits. Mancos Shale The Mancos Shale is a thick and fine-grained shale that is basically impermeable. This unit does not yield useful quantities of water. On Black Mesa, because the Mancos Shale reaches a thickness of 670 feet that overlays most of the D-aquifer, it hydraulically isolates the D-aquifer and impedes downward movement of water. Thus, the Mancos Shale forms a confining unit between the D-aquifer system and the overlying Mesaverde group. Mesa Verde Group The Toreva Formation consists of three members in Black Mesa: 1) a basal unit that primarily consist of fine to medium-grained quartz sandstone, some coal, carbonaceous shale and thin-bedded siltstone; 2) a middle shale unit consisting of firmly-cemented siltstone and a few sandstone ledges; and 3) an upper unit which consists of very coarse to medium-grained poorly sorted sandstone. The groundwater from the Toreva Formation is of marginal to unsuitable drinking water quality. Sulfate and total dissolved solids concentrations usually exceed the recommended drinking water limits. Well yields range from 10 to 15 gpm. The Wepo Formation consists of a thick sequence of interbedded mudstone, siltstone, sandstone and coal. The sandstone is composed of poorly sorted, fine to very coarse quartz grains. The degree of cementation of the quartz grains varies from weakly to firmly-cemented. The thicker sandstone beds tend to have conglomeratic bases of chert and silicified limestone pebbles. The coal beds are usually interbedded with siltstone and contains hard, red, baked shale where these beds have burnt. Ground water is primarily obtained from the Toreva Formation and secondarily from the Wepo Formation and is considered of limited regional aquifer capability. The ground water from the Wepo Formation is of poor quality and most wells do not continuously yield usable amounts of groundwater. Alluvial Aquifers On the leasehold, alluvial water quality is poor, and yield to wells is generally small except where significant gravel exists. The concentrations of dissolved solids make the water mainly suitable for livestock only. Wepo and Toreva have much better water quality and wells drilled in these units have greater yields than do most alluvial wells.

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Vegetation
The vegetation on the Black Mesa leasehold is characteristic of high elevation plant communities on the Colorado Plateau where arid conditions prevail (less than 10 inches of annual precipitation). The dominant community type, pinyon-juniper woodland, covers approximately 65 percent of the leasehold. The dominant species, pinyon pine and Utah juniper, have a significant canopy cover for the most part and control the kinds and amount of understory vegetation. The pinyon-juniper community is least prevalent in the southwestern portion of the leasehold. The rather sparse understory vegetation includes cliffrose, fourwing saltbush, rubber rabbitbrush, big sagebrush, Mormon tea, snakeweed, various penstemons, scarlet globemallow, aster and Astragalus species, Indian ricegrass, squirreltail, and galleta grass. While there is a fairly diverse understory, cover and productivity is sparse. This vegetation type is limited in potential forage production even under ideal conditions and therefore grazing potential is low (TABLE 18). Historic heavy grazing pressure has further reduced this potential and increased the dominance of pinyon and juniper canopy cover while decreasing the availability of desirable forage plants. However, this vegetation type has high value as a source of wood products, particularly firewood, and also serves as an important source of culturally important plants. The pinyon-juniper type occurs on hillslopes and ridge tops dominated by soils with high coarse fragment content, rock outcrops, and residual soils associated with clinker or scoria hills. TABLE 18. SEASONAL LIVESTOCK CARRYING CAPACITY
Vegetation Community Pinyon-Juniper Woodland Sagebrush Shrubland Greasewood Shrubland Saltbush Shrubland Reclaimed Land Season Spring Fall Spring Fall Spring Spring Fall Spring Fall Livestock Carrying Capacity (ac./AUM*) 119 189 11 13 10 6 3 4 4

* a: AUM is the forage required to support one animal unit for a month (900 lbs.)

The sagebrush shrubland type comprises about 35 percent of the leasehold vegetation. The dominant species is big sagebrush, but varying composition of fourwing saltbush or rabbitbrush species can result in it being nearly codominant. Rubber rabbitbrush, sticky-leaved rabbitbrush, Greene rabbitbrush, and snakeweed are commonly found in the sagebrush shrubland type and increase in composition to the exclusion of sagebrush as one proceeds into the southwestern portion of the leasehold. Common forbs and grasses in the sagebrush shrubland type include scarlet globemallow, aster, sego lily, blue grama, galleta grass, squirreltail, and western wheatgrass. The sagebrush shrubland type occurs on deeper soils characteristic of alluvial drainages, associated colluvial slopes, and less commonly in uplands with finer textured and deeper soils. Sagebrush shrubland is better suited to livestock grazing than the pinyon-juniper type (Table 18). However, historical heavy grazing pressure has seriously reduced the carrying capacity and increased the dominance of sagebrush and other woody species while limiting desirable forage species.

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The other vegetation types identified in the leasehold include greasewood shrubland, saltbush shrubland, and tamarisk strand. The greasewood shrubland is limited in extent on the leasehold. It occurs adjacent to larger washes and mostly on the terraces outside of the main channels. Moenkopi Wash is an example of areas having more extensive tracts of this type. Greasewood shrubland is dominated by black greasewood but otherwise has very similar under-story composition as the sagebrush shrubland type. The saltbush shrubland community is located within or adjacent sagebrush shrubland areas where fourwing saltbush becomes the dominant component of the stand. Understory grass and forb species are similar to the sagebrush shrubland type. The third minor type, tamarisk strand, occurs intermittently along major washes in the leasehold. In some washes such as Moenkopi or Coal Mine it can be extensive along certain reaches. This type is normally restricted to the immediate bottoms of the washes including aggraded portions such as sand bars but can also be found invading onto terraces above main channels. This type is comprised mainly of tamarisk with some inclusions of greasewood or saltbush. Herbaceous understory is low and is normally restricted to annual forbs and grasses. The reclaimed areas comprise the final vegetation type on the Black Mesa leasehold. There are approximately 13,000 acres of reclaimed grassland, shrubland, cultural plant sites and associated pinyon-juniper areas. The revegetation plan implemented at the Black Mesa Complex establishes diverse and predominantly native vegetation communities to meet the post mining land uses of livestock grazing, wildlife, and cultural plants. The revegetation communities are dominated by rangeland vegetation comprised of grassland and high density shrubland. Cultural plant sites that include pinyon juniper are interspersed within the broader rangeland communities and may account for approximately 5 percent of the area. The plants in these sites are important traditional plants for both Navajo and Hopi. Grassland communities are dominated by cool season grasses such as Russian wildrye, western and thickspike wheatgrasses, Indian ricegrass, and a varying composition of warm season grasses including blue grama, alkali sacaton, and galleta grass. Fourwing saltbush is a common native shrub in the grassland areas with stems of 400 or more per acre. Forbs commonly found in these rangeland communities are blue flax, prairie coneflower, scarlet globemallow, and sanfoin. The high density shrubland is similar in herbaceous composition but fourwing saltbush shrub density is greater than 800 stems per acre and commonly averages several thousand stems per acre. Cultural plant areas are established on sites developed with red rock or scoria and include pinyon and juniper; a variety of shrubs including cliffrose, wolfberry, yucca, Mormon tea and sagebrush; and numerous forbs such as penstemons, Indian tea, globemallows, and Indian paintbrush. Native cool and warm season bunchgrasses are established in cultural plant sites. The plants for these sites are developed from active seed collections. While these sites also serve as pinyon-juniper establishment areas, native pinyon pine are transplanted to select locations in the reclaimed areas.

Grazing
Grazing has been considered an important part of the land use by community members, from both economic and cultural standpoints. Thus, reclamation efforts that incorporate grazing are perceived positively. Reclaimed areas can provide valuable grazing lands that significantly exceed the forage production potential of adjacent

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native lands. These lands are also entirely comprised of species that enhance forage and habitat quality for livestock and wildlife, and have potential for livestock use and grazing management programs. To demonstrate appropriate reclamation and provide grazing to residents’ livestock, Peabody, along with residents, has established over 4,000 acres of reclaimed lands into a managed grazing program at a steadily increasing level since 1998. FIGURE 6 shows the grazing pastures by units. The grazing program provides education in grazing management techniques and a program for post-Peabody long-term management of reclaimed lands. Deferred and rest rotation grazing systems are employed to sustain the grazing resource and demonstrate grazing management techniques. As of June 2005, nearly three million pounds of forage have been harvested from reclaimed pastures while providing resident opportunities for improving conception rates, calving rates, herd management, and conditioning of livestock for market. These program benefits are achieved while also providing valuable wildlife habitat for a number of wildlife species. To illustrate Peabody’s interest in and tracking of the reclamation and grazing programs, the company specifically referenced grazing activities within specific pasture areas around Black Mesa and Kayenta Mines, and summarizes the grazing in its 2004 Minesoil Reconstruction Report where it stated: The following summarizes grazing activities at the Black Mesa and Kayenta Mines during 2004. All areas grazed at the Black Mesa and Kayenta Mines were approved as ready for grazing by the OSMRE, BIA, and Navajo Nation on June 4, 1998. In the following text AU represents animal unit or a mature 1,000 pound cow. Animal unit equivalents as described in Vallentine (1990) were used to determine animal units for mixed age class herds. Animal unit month is abbreviated in the text as AUM. An AUM is the forage required to support one animal unit for a month (900 lbs.). Due to drought conditions grazing levels were reduced for at least part of the 2004 grazing season and initial overall stocking rates were set lighter because of the ongoing drought. Black Mesa Mine J1N6. Three pastures were grazed by a mixed age class cattle herd in J1N6 during 2004. These pastures were used as components of a rotational grazing system. This was also the first time that these areas had been used under a managed grazing system. J1N6 Unit 1C Pasture. This 273 acre pasture was included in an approved grazing program for the first time in this area and comprised the first rotation in a multi pasture system. During the grazing period, the numbers and kinds of cattle fluctuated from 9.2 AU to 32.2 AU as a result of the operators management needs. Several family members with permits added cattle resulting in the latter higher numbers. The original stocking rate was set at 5.8 acres/AUM but favorable moisture resulted in good vegetation growth allowing the latter portion of the grazing period to be adjusted to 3.5 acres/AUM and thus extending the grazing period. Livestock were turned in on 6/4/04 and turned out on 11/6/04 for a

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total of 156 days of grazing during this period. The initial estimated forage availability was 58 AUM’s but the final availability was higher with the change in stocking rate. Estimated forage use was 67 AUM’s. Evaluation of the pasture at the end of the grazing period indicated that the proper use goal of 50 percent utilization was achieved. The grazing distribution was very even in the pasture due to proper placement of mineral block and three different watering locations. The watering locations showed only light impact further indicating good distribution. J1N6 Unit 1A Pasture. This 177 acre pasture had also not been grazed previously and more favorable moisture conditions allowed use of a 4.7 acre/AUM stocking rate to yield an estimated 38 AUM’s of available forage. The herd size remained at 32.2 AU. The livestock were turned in on 11/6/04 and removed on 12/14/04 for a total of 39 days of grazing. During this period 41.9 AUM’s of forage were consumed resulting in an estimated use of 55 percent. Again, management by the permittees encouraged good livestock distribution and more even forage utilization. J1N6 Unit 1B Pasture. This pasture is adjacent to the above unit and totals 73 acres. This pasture also had not previously been grazed and pasture condition indicated that the 4.7 acres/AUM would be an appropriate stocking rate. At this rate 16 AUM’s of forage would be available. The 32.2 AU herd size continued to be grazed and was turned in on 12/14/04 and turned out on 12/31/04 for a total of 17 days of grazing. Estimated forage use was 19.3 AUM’s or about a 60 percent use rate. The herd was moved to native range following turn-out. N6. Two pastures were grazed in the N6 area during 2004. N6 Unit 2 Pasture. The 2004 grazing in this 220 acre pasture was a continuation of the fall/winter 2003 grazing program. Initial grazing began on 11/28/03 and ran through the end of 2003 and continued into 2004 for 11 more days until 1/11/04. During the 11 days of grazing in 2004, herd size was 13.6 AU. The initial stocking rate was set at a drought rate of 11.7 acres/AUM but this was adjusted to 9.1 acres/AUM in the last two weeks because of better fall growth as a result of improved moisture conditions. The pasture was grazed a total of 45 days with a total of 20.1 AUM’s of forage consumed. Forage use was estimated at less than 50 percent based on calculations and supporting field observation. N6 Unit 1 Pasture. The N6 Unit 1 pasture is located near the Etsitty residence. This family requested use of this area as a weaning pasture and to hold several bulls outside of the breeding season. The 11 calves and 2 bulls totaled 9.2 AU. The 79 acre pasture was in good condition allowing for a 3.5 acre/AUM stocking rate. This resulted in an estimated 23 AUM’s of available forage. The livestock herd was turned in on 11/1/04 and by 12/31/04 it was estimated that 18.7 AUM’s of forage had been consumed over the 61 day period.

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Grazing was to continue another 15 days in 2005 to complete the grazing. Observations indicated that the use was tracking for an approximate 50 percent use rate. This was the first time this pasture had been included in a managed grazing program. Kayenta Mine J21. A single pasture was grazed on the far east side of J21 in 2004. J21 Unit 3. The J21 Unit 3 pasture encompasses 106 acres east and north of the Oakridge Road in the far eastern portion of J21. This pasture had not been grazed in an approved management plan before. Grazing was requested for 8 horses which equated to 10 AU. The stocking rate was set at 4.8 acres/AUM resulting in available forage of 22 AUMS. The horses were turned in on 9/28/04 and removed on 12/19/04 for a total of 83 days of grazing. Estimated forage consumption was 28 AUM’s. N2. A single pasture was grazed in the N2 area during 2004. N2 Pasture. The N2 pasture continued to be grazed by a mixed age class cattle herd that had been turned into the N2 pasture early in November 2003. Grazing continued till 1/10/04 when the 21 AU cattle herd was removed. A drought level stocking rate of 15.7 acres/AUM (50 percent use) was initially applied to the 631 acre pasture providing an estimated 42 AUM’s of grazing. Improved moisture conditions in fall 2003 resulted in better forage availability than originally estimated allowing for an extended grazing season. Estimated total forage consumed during the 2003 and 2004 grazing was 48.3 AUM’s. Observations of the pasture following grazing indicated that the approximate 50 percent desired use rate was likely achieved over the 71 day grazing period. N14. Five pastures in a rotational grazing system were grazed in N14 during 2004. N14 Unit 3A Pasture. Twenty-two mixed-age cattle and one horse totaling 18.2 AU began the grazing rotation in this 96 acre pasture. A light stocking rate of 15.4 acres/AUM was used to account for ongoing drought conditions. This rate provided a forage availability of 12.5 AUM’s. Grazing ran from 1/03/04 to 1/23/04 or 21 days. Forage consumption was 12.7 AUM’s with an estimated use of 51 percent. N14 Unit 3B Pasture. The above herd was rotated into the adjacent 207 acre N14 Unit 3B pasture on 1/23/04. Based on observations of grazing in Unit 3A, it appeared that forage availability in this pasture was greater than initially thought and the stocking rate was adjusted to 7.7 acre/AUM for an estimated forage availability of 26.8 AUM’s. Herd size remained at 18.2 AUM’s. The grazing period ran from 1/23/04 to 3/3/04 (31 days) and forage consumption was estimated to be 18.8 AUM’s. Forage use (35 percent) ended up being lighter than anticipated because of an early move to the next pasture.

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N14 Unit 2 Pasture. The rotation moved the herd into the 89 acre N14 Unit 2 pasture on 3/3/04. Stocking rate continued at 7.7 acres/AUM as did the 18.2 herd size. Forage availability was estimated to be 11.6 AUM’s. Grazing was completed on 3/23/04 (20 days) with total forage consumption of 12.1 AUM’s and an estimated use of 52 percent. N14 Unit 1 Pasture. The 18.2 AU herd was rotated into this 41 acre pasture on 3/23/04 and was rotated out on 4/6/04 for a 15 day period. Improved forage availability as a result of better moisture conditions allowed a higher stocking rate of 4.8 acres/AUM and available forage of 8.4 acres/AUM. Estimated forage use was 9.1 AUM’s. N14 Unit 4 Pasture. The N14 grazing rotation was completed in the 191 acre N14 Unit 4 pasture. Herd size continued at 18.2 AU and the specified stocking rate yielded an available forage level of 24.8 AUM’s. The grazing period ran from 4/6/04 to 5/8/04 (33 days) with forage consumption of 28.7 AUM’s and an estimated use of 58 percent. Grazing Summary During 2004 grazing was conducted in a total of 12 pasture units encompassing 2,183 acres at the Black Mesa Complex. This included five pastures totaling 822 acres at the Black Mesa Mine and seven pastures and 1,361 acres at the Kayenta Mine. More than 104 animal units grazed the 12 pastures; 55 at the Black Mesa Mine and 49.2 at the Kayenta Mine. Forage consumed during 2004 was 252.3 AUM’s; 151.9 at the Black Mesa Mine and 100.4 at the Kayenta Mine. Grazing at the Black Mesa Complex totaled 497 days, with 284 of these days at the Black Mesa Mine and 213 days at the Kayenta Mine. Peabody and the community have focused significant attention on grazing. Such attention and the use of reclamation techniques and land management appear to have been advantageous to all involved.

Wildlife
Wildlife habitat and resources are characteristic of the Colorado Plateau province dominated by pinyon-juniper and sagebrush shrubland habitat. The leasehold located in the north eastern portion of the Black Mesa highland ranges in elevation from 6,500 feet in the southwestern corner to over 7,200 feet in the northern and eastern portions. The climate is arid averaging 8 inches or less annual precipitation received as somewhat limited winter moisture and the more dominant summer convective storm patterns. The dominant vegetation types have been described in the previous section. Wildlife habitat types closely correspond to these vegetation types. Black Mesa, and the leasehold in particular, is important habitat for many bird species including permanent residents and migratory birds. Studies at Black Mesa have documented nearly 250 different species. The pinyon-juniper woodland is the predominant habitat type occurring on the leasehold. It provides a variety of habitat needs for the wildlife species found on the

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leasehold. Pinyon nuts provide an important food source for small mammals, pinyon jays, and many other bird species. Tree and shrub cover provide cover for mule deer and elk and nesting habitat for great horned owls, northern goshawks, and red tailed hawks. The shrubland habitat includes predominantly sagebrush shrubland but also saltbush shrubland, and greasewood shrubland. This type provides nesting and foraging habitat for small mammals and passerine birds, browse and foraging habitat for large mammals, and hunting habitat for raptors including red-tailed hawks and northern harriers which prefer this more open habitat. Predators including coyotes, bobcats, and red or gray fox hunt this type. The ecotone or habitat edge bordering the pinyonjuniper in the sagebrush shrubland type is an important habitat component. The mixed conifer woodland habitat type occurs near the north and east rims of Black Mesa primarily in deep canyons that are sheltered or shaded and along upper elevation north facing canyon slopes. The type is comprised of Douglas fir, ponderosa pine, and a pinyon-juniper woodland component dominated by pinyon pine. This more mesic woodland has an understory of Gambel oak, snowberry, mountain mahogany, cliff fendlerbush, and a greater presence graminoids than other woodland communities. This type occurs only slightly in the northeastern portion of the leasehold in an area that is not anticipated for any mining related disturbance. This habitat type provides nesting and foraging habitat for the Mexican spotted owl and Copper’s hawk. The riparian strand may be better described as tamarisk strand. The potential for riparian strand habitat on the leasehold is extremely limited and in the truest definition may exist only around impoundments with perennial water. The stretches of washes with intermittent reaches are typically dominated by tamarisk or do not have enough dependable flow to support any riparian vegetation other than species representative of the driest phases for a regional riparian type. The tamarisk strand can be dominated nearly completely by tamarisk and may not include many species for desirable habitat. It does provide nesting and cover habitat for various bird species and in certain areas of the state harbors populations of southwestern willow flycatcher. Riparian and aquatic habitat associated with a number of mining related impoundments on the leasehold that contain permanent water is a very important feature for migratory bird species and those that have become permanent residents. This includes coots, mallards, and red wing blackbirds. Migratory species may include a number of species that stop over at these ponds including osprey and bald eagles. Major impoundments that support riparian and aquatic habitat include J7 dam, J2-A, N1-RA, N10-A, N14-D, N14-F, N14-G, N14-H, J16-A, J16-L and J7-JR (FIGURE 7). An overall characteristic of native habitats on the leasehold and the Black Mesa in general is the impact of continuous and heavy livestock grazing. This has been ongoing for a number of years and has had a telling affect on the amount and quality of wildlife habitat. Excessive removal of herbage and browse by livestock reduces available habitat for deer fawning, cover, nesting habitat, adequate forage and food for wildlife species, and has lowered range condition. Low mule deer numbers may be indicative of this. Mining and reclamation activities have established reclamation habitat on approximately 20 percent of the leasehold. The reclamation type includes grassland,

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high density shrubland, and inclusions of developing shrubland and pinyon-juniper habitat. This generally open habitat is unique but functions most closely to sagebrush shrubland habitat. It provides for hunting habitat for a number of raptors including red tail hawks, northern harriers, and kestrels. It is a highly effective habitat commonly used by lagomorphs and other small mammals, passerine birds including western meadowlarks and sage and Brewer’s sparrows. Coyote, and to a lesser degree fox and bobcat, hunt in the reclamation type. Mule deer and elk make use of forage resources in the type. The reclamation type borders both pinyon-juniper and sagebrush shrubland types increasing habitat edge. In addition to the variety of wildlife species found on the Black Mesa/Kayenta leasehold there are a number of special interest species that occur or have the potential to occur. Certain of these species, including the Mexican spotted owl, peregrine falcon, black footed ferret, and Navajo Mountain vole have been included in special long term studies. Annual wildlife monitoring studies have continued to monitor for these as well as general wildlife presence on and adjacent to the leasehold. Special interest species include those listed by U.S. Fish & Wildlife Service (USFWS) and the Arizona Game & Fish Department and those found on the August 2005 Navajo Nation Endangered Species List (NESL). Species which are pertinent to the Black Mesa leasehold and have been included in monitoring studies are the following. Black-Footed Ferret The black-footed ferret is currently listed as an endangered, experimental nonessential population species and NESL group 2 species. This species is found in close association with prairie dog colonies in grassland plains, low shrublands and mountain basins. The prairie dog serves as the black-footed ferret’s primary food source while also providing abandoned burrows as shelter. Peabody has monitored the lease area and adjacent potential habitat areas for prairie dog colonies annually since 1992. Historically active and inactive colonies have been keyed on, but annual wildlife surveys include observation for any new colony activity in the study area. To date, there has been no evidence of black-footed ferret presence on the monitored areas. Monitoring has also indicated low numbers of prairie dogs in the active colonies. Mexican Spotted Owl The Mexican spotted owl (MSO) is listed as a threatened species and a NESL group 3 species. In the southwestern U.S., habitat for this species includes mixed-conifer forests, ponderosa pine-Gamble oak forests, rocky canyons, and deciduous riparian forests. Suitable habitat for this species on Black Mesa occurs near the north and east rim in the mixed-conifer woodland. Peabody has monitored MSOs in a two-plus mile buffer zone outside of the leasehold area boundary in the N10 and N11 area since 1994. During seven special annual monitoring studies conducted through 2001, a number of individual MSOs, breeding pairs and juveniles, have been documented in the suitable habitat areas. There were no mining related impacts to MSOs found and the knowledge of breeding, nesting, and feeding habits for Black Mesa MSO populations was increased.

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Peregrine Falcon The peregrine falcon was removed from the USFWS list of threatened and endangered species in 1999 but continues as a group 4 on the NESL. The USFWS will monitor the species for 13 years though the Endangered Species Act requires a five year monitoring period for delisted species. Peregrine falcons require suitable cliff face nesting habitat. This habitat only occurs at or near the eastern rim of Black Mesa. In the vicinity of the leasehold on Black Mesa, only limited reaches of cliffs in the Moenkopi Wash drainage northeast of the N14 coal resource area were identified as having possible nesting habitat. Nesting surveys have been conducted in this and other areas periodically from 1989 through 2001. Peabody also conducted breeding surveys within the identified historic breeding area from 1991 to 1995. Peabody has also performed general wildlife reconnaissance surveys on the leasehold from the early 1980’s through 2005. The results of the nesting and annual reconnaissance surveys have been presented to OSMRE in annual wildlife monitoring reports. The breeding survey results were submitted to the Navajo Nation and USFWS under confidentiality requirements. The results of all peregrine falcon survey efforts have documented a number of individual birds, nesting pairs, successful nesting and fledging of young, and numerous observations of peregrine falcons hunting on the leasehold, principally the impoundments holding waterfowl. Peabody’s historical monitoring information supports the USFWS conclusion that successful recovery of peregrine falcon populations is ongoing and that no apparent impacts to peregrine falcons have occurred on or near the leasehold on Black Mesa. Southwestern Willow Flycatcher The southwestern willow flycatcher is listed as an endangered species and a NESL group 2 species. This species requires foraging and breeding habitat that is comprised of riparian habitat along rivers, streams, or other wetlands with more or less permanent water. Dense stands of willows (or tamarisks), boxelder, Russian olive, buttonbush, or other medium sized trees with scattered cottonwood overstory are preferred. Willow flycatchers have been observed on Black Mesa, but they were all considered to be migrants and probably not the southwestern willow flycatcher. Suitable habitat of cottonwood/willow (tamarisk) communities along rivers, streams, or other permanent water sources is not present in or near the project area. Bald Eagle The bald eagle is listed as a threatened species proposed for delisting. It is still protected under the act. The bald eagle requires an adequate source of fish, waterfowl, or carrion and suitable trees for roosting as winter habitat. Nesting habitat requirements include open water in the proximity of large nest trees and an adequate food source (primarily fish). No nesting or wintering bald eagles have been observed on the Black Mesa leasehold. Occasional winter transients have been sighted, however and fish populations in certain permanent impoundments such as the J-7 Dam have attracted this species while moving through the area.

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Golden Eagle The Golden eagle is a group 3 NESL species that has been observed as a sparse permanent resident on Black Mesa. It has been most commonly observed soaring over reclaimed areas. Historical numbers for this species are reduced most likely to use for religious and other Native American practices and a reduction in suitable prey base. California Condor The California condor is listed as an endangered, experimental nonessential population species and group 4 NESL species. California condors were reintroduced into Northern Arizona at the Vermilion Cliffs in 1996. These very large birds are scavengers, feeding only on carcasses. They typically forage for very long distances over open terrain. The California condors typically use cliffs, tall conifers, and snags as roost sites in nesting areas. It is possible that California condors could forage on Black Mesa because the area is an inclusion in the experimental population area. No California condors have been observed on or near the leasehold area. Navajo Mountain Vole The Navajo Mountain vole is listed as a group 4 NESL species. It prefers open park-like habitats and mountain meadows. It is included here because it is a possible relic isolate and some of the larger population numbers are found in reclaimed areas on the Black Mesa leasehold. Northern Goshawk The northern goshawk is a group 4 NESL species. It is a fairly common winter resident in woodland sites on Black Mesa. It has been observed on the leasehold and successful nesting has been observed adjacent to the leasehold. Annual wildlife monitoring for this species is conducted on the lease area. Ferruginous Hawk The ferruginous hawk is a group 3 NESL species. This hawk is an uncommon migrant and winter resident that has been observed in several areas of the leasehold during monitoring activities. It is an open country raptor and observations have been over reclaimed areas. The extensive reclaimed areas should prove beneficial to this species. Large native ungulates include mule deer and Rocky Mountain elk. Both of these species were noted as species of concern on Black Mesa in the early 1980’s because of low population numbers. Monitoring for both of these species has been ongoing for more than 20 years. The elk population has shown steady growth over the years with herd sizes of 10 or more animals not uncommon. This is a breeding population as evidenced by the presence of cows, mature bulls, and variable age young. At this time evidence of elk presence has been observed in all areas of the leasehold but particularly in the eastern and northern areas. Mule deer numbers have remained low and observation of individuals or groups is uncommon. It is speculated that competition with livestock, poor fawning habitat, and mountain lion predation may be causes.

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4.5 INFRASTRUCTURE ASSESSMENT
Introduction
Some of the basic infrastructure needs that must be addressed include the availability, reliability and affordability of electricity, water, wastewater disposal and reclamation, communications and transportation. The extent and quality of infrastructure is an important determinant for local community development and economic development and growth. Future development in the leasehold area will be possible if the community is prepared to identify the existing infrastructure needs and plan for providing the infrastructure that will be needed to attract potential development. The infrastructure assessment is based on information provided by Peabody. Types of infrastructure include roadways, utility lines, water wells and tanks, airport, buildings, impoundment ponds, buildings, railroad and coal handling facilities.

Roadways
The roads within the planning area consist of primary and ancillary roads maintained by Peabody, in addition to non-mining and private roads (FIGURE 8). Each type is summarized in TABLE 19. TABLE 19. ROADWAYS
Road Type Primary Description Used for transporting coal or spoil and not considered a ramp inside the mining disturbance and spoil grading area Frequently used for access or other purposes for at least 6 months No longer subject to frequent changes in location, are graded “on-grade” with surrounding topography, and located in areas undergoing topsoil redistribution and permanent revegetation To be retained for an approved post-mining land use Responsible Party Peabody Comments Roads built by Peabody prior to 12/16/77 and on or after 7/6/90 (in the permanent program permit area) area considered temporary and will be reclaimed unless approved by the regulatory authority as part of the post-mining land use plan.

•

•

•

•

Types (not classified on Peabody maps)

• #1-minimum of 50”wide for two-way traffic, or 30’ wide for one-way traffic. Coal haulage, mine vehicle and dragline deadheading roads. • #3-used infrequently for periods longer than 6 months, a minimum of 24’ wide for two-way traffic.

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TABLE 19. ROADWAYS (CONTINUED...)
Responsible Party Peabody

Road Type Ancillary

Description • Any mine road not classified as a primary road

Comments • Peabody use only and no local residents at the at the road terminus. • Roads built by Peabody prior to 12/16/77 and on or after 7/6/90 (in permanent program permit area) are considered temporary and will be reclaimed unless approved by the regulatory authority as part of the post-mining land use plan.

Types (not classified on Peabody maps)

• #1-two land road, 24’ wide • #2-single land road at dozer/grade blade in width Mining Related Public Roads • U.S. Highway 160 • Navajo Route 41: dirt/paved collector road

ADOT BIA/NDOT

• Open range collector, dirt and partially paved road with no recorded right-of-way and limited BIA maintenance. Included in BIA’s 1990 Master Road Plan

Ramps

Private Roads • Local roads not designated as public and have no right-of-way application • Not maintained with public funds • No substantial public use • Tribe or BIA do not have construction standards for these roads • Temporary roads located within Peabody active pit and spoil areas

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Utilities
Utilities on the leasehold area include electric, water and sewer (FIGURE 9). Approximately 220,750 feet of power lines owned and operated by the NTUA exist within the leasehold area. These lines serve the homes within the leasehold area. The main lines extending to the mine are 69 KV, which are operated by NTUA. Other lines shown on the utility map that are located on the leasehold are operated by either NTUA or Peabody. Water lines are limited to those that serve specific Peabody uses on the leasehold area, such as the housing area, slurry pipeline, Navajo well field, some facilities and offices. Sewer lines comprise a total of a few hundred linear feet and are limited to several lines from J28 facilities to the sewage lagoon, offices, and housing area. Natural gas is not available to the area. Propane is widely used throughout the region, with propane distributors available in nearby towns.

Communications
Communications include telephone, radio, television, internet and newspaper. Telephone service through Citizens Communications is available to a limited part of the leasehold area. There are no cell towers located within the planning area; although cellular phone reception is available in certain areas. Internet service is available via modem and satellite connections.

Water Facilities
Water facilities include water wells, tanks, and impoundment ponds. Four water wells, two public water distribution points and impoundment ponds are shown on the water facilities map (FIGURE 10). The impoundment ponds are either permanent or temporary. Information regarding water facilities is summarized in TABLE 20. More water wells may be left in place as the reclamation is completed at the mines. Those to be left in place will be determined by the well size and quality of water in the well by the Navajo Nation Department of Water Resources (NDWR). Any of these facilities will have to be maintained, probably by NDWR.

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TABLE 20. WATER FACILITIES
Responsible Party Peabody

Type Water Wells and Tanks

Description • Navajo Well #9 • Navajo Well #2 • Navajo Well #4 • Navajo Well #8

• Water Tank (Black Mesa) • Bathhouse Water Tank (Black Mesa) • Water Tank/Kayenta (3) • Underground Water Tank (Black Mesa) • Bathhouse (Kayenta) Impoundment Ponds • There are 51 ponds that will Peabody remain when all mining activities have been completed. These provide water for wildlife and livestock.

Comments • Use D- and Naquifers: 1,850 feet • Uses N-aquifer: 1,719 feet • Uses D- and Naquifers: 1,710 feet • Use D & N aquifers • 2,000,000 gallon capacity • 37,700 gallon capacity • 42,000 gallon capacity • 79,000 gallon capacity • 5,000,000 gallon capacity • 14,210 gallon capacity • Ponds are identified on drawings 85234 and 85405.

Buildings
FIGURE 11 shows the areas where the majority of the buildings are located. There are numerous structures of varying uses and sizes located on the leasehold area. Those that are determined to be of greatest potential for future use are identified in the following summary table (TABLE 21). TABLE 21. POTENTIAL BUILDINGS FOR RETENTION
Responsible Party Peabody

Type Human Resources Engineering Office Operations Office & Addition Warehouse & Additions Operations & Warehouse Reclamation Office Airport Building Ambulance Garage Bathouse/BM Shop/BM Office/BM Welding Shop/BM Warehouse Addition/BM Shop, Office & Additions Bathouse/Kayenta Office/Kayenta

Description 6,000 sq. ft. 8,000 sq. ft. 7,400 sq. ft. 22,900 sq. ft. 3,600 sq. ft. 1,820 sq. ft. 1,800 sq. ft. 1,350 sq. ft. 4,920 sq. ft. 19,440 sq. ft. 3,200 sq. ft. 6,400 sq. ft. 2,700 sq. ft. 22,656 sq. ft 8,000 sq. ft. 2,400 sq. ft.

Comments • There are numerous structures of varying uses and sizes located on the lease area. Those that are determined to be of greatest potential for future use are identified.

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TABLE 21. POTENTIAL BUILDINGS FOR RETENTION (CONTINUED...)
Responsible Party Peabody

Type Truck Stop & Additions Housing Area

Description 26,580 sq. ft. 8 double-wide trailers and 1 single-wide trailer

Comments • Six with 5 bedrooms and one bath; one with 2 bedrooms and one bath; one with 3 bedrooms and 2 baths; one with 3 bedrooms

Airport
Also shown on Figure 11 is the airport. The airport facilities include the building identified in the previous table, a 7500’ long and 75’ wide runway, and parking area that can accommodate up to a Boeing 737 or Gulfstream G5 airplane.

Coal Handling Facilities
Also shown on Figure 11 are coal handling facilities. There are numerous structures of varying uses and sizes used for the existing coal operations that are located on the leasehold area. Those that are determined to be of greatest potential for future use include: • Public coal handling facility • Public coal conveyor: 600 ft.

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5. VISION: WHERE DO WE WANT TO BE?
Introduction
The initial step in developing a future land use plan for the Black Mesa-Kayenta mines is to identify the values of the community members, what is important to them. Such visioning and planning are important particularly considering the potential for the closure of the mines in the future. To this end, residents within the leasehold area gave their input through responses to questions on a survey. Subsequent public meetings were held with both residents and others in the leasehold area for the purpose of identifying a vision for the Black Mesa-Kayenta mines area that would reflect the desired end uses for the planning area.

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Vision Statement
The residents of the leasehold area expressed the following vision for the planning area: “Residents of the leasehold see a unified future where their community is recognized as a single entity able to foster its own growth and sustainability. It envisions a time when the community can incorporate certain existing mining facilities into other productive non-mining commercial or cultural uses. It sees other buildings being removed in an environmentally friendly way to establish additional open space where other uses may be established. The residents have a vision of balancing traditional values and economies such as grazing and respect for the sacredness and purity of the land and the health of the people.”

Goals and Objectives
In order to provide more specific direction and to measure progress toward implementation of the Land Use and Community Development Plan, initial goals and objectives have been formulated and captured here based upon residents’ early thinking about uses for the leasehold and surrounding area. These ideas were captured and synthesized from inputs at the public meetings and from surveys. Over time, additional work may be needed to flesh out the economic viability of some of the concepts and ideas. Certain objectives listed may not be entirely attainable at this juncture due to a variety of challenges such as remoteness of the area and potential lack of traffic to support, resources (natural and financial) to support new businesses, and cultural and cross-tribal historic concerns. Those notwithstanding, these objectives are meant to bring people and their thoughts together to help provide a general direction for future decision making; the objectives will function as a practical working plan from which to further analyze and build. It is expected that this will be a “living document” that will be evaluated on a regular basis as progress continues on land use planning and community development. When developing its initial set of goals and objectives, participants also prioritized the major items so that their focus will be on the most important items. Thus, following in order of priority are the goals and objectives by topic areas:

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1. LOCAL GOVERNANCE Goal A: Provide the ability to address needs through a self-governing body for the leasehold community. Objectives: a. Establish a stable and cohesive form of self-governance consistent with applicable laws (chapter, township, etc.). b. Work with appropriate agencies to achieve a self-governing body. c. Pursue public and governmental partnerships and representation in order to provide adequate community services that address the needs and enhances the quality of life of the leasehold community (tribal, county, BMRB, state, federal, etc.). d. Explore and develop a revenue stream that operates and maintains the self- governing body and its services (royalty, fees, taxes, funds, AML, etc.). e. Develop and implement a flexible land use plan in coordination with mining activities (i.e. during mining, after reclamation, post-mining). f. Ensure participation of the self-governing body in any future mining lease negotiations. g. Develop ordinances for the safety and welfare of the community (wood hauling, trash control and disposal, land reuse and development, etc.). h. Establish an appropriate and feasible acquisition process (inspections, value, timeline, costs, etc.). i. Identify and prioritize actions, activities and implementation efforts of community development and planning for the leasehold area. j. Ensure proper management of the areas’ environmentally sensitive features and natural resources. k. Understand and communicate the importance of planning for the future. l. Ensure we don’t “trap” ourselves with the development of a land use plan.

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Goal B: Build an effective public relations program to enhance community image, create awareness and clearly communicate public information. Objectives: a. Ensure the “voice” of residents, from all age groups, is accurately and effectively communicated. b. Develop a more effective working relationship with the BMRB. c. Develop a better working relationship with Peabody. d. Work cooperatively with local, regional government agencies/programs (i.e. chapters, tribal, county, state, federal). e. Establish a scholarship fund. Goal C: Define the jurisdictional area of the local government. Objectives: a. Establish the leasehold area as the jurisdictional area of the local government. b. Fence the leasehold area.

2. WATER Goal A: Respect the use of water resources in the leasehold area. Objectives: a. Ensure water rights for the leasehold area. b. Support the use of the N-aquifer for domestic and livestock use; not for coal slurry transportation. c. Explore options regarding the N-aquifer water issues and usages. d. Extend waterlines to all homes within the leasehold area. e. Expand the water system for farming and livestock usage. f. Establish a maintenance and operation program for water facilities. g. Explore innovative developments for water (bottled water plant, water park, etc.). h. Promote the Many Mules Waterline & Powerline Project.

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Goal B: Provide sufficient windmills and ponds suitable for livestock use. Objectives: a. Retain existing windmills, fix those in need of repair, and build new windmills where needed. b. Retain existing ponds suitable for livestock use and build new ponds where needed. c. Ensure that existing ponds are free of toxins or other contaminants.

3. INFRASTRUCTURE Goal A: Provide a road system that connects and provides safe and convenient access throughout the leasehold community. Objectives: a. Develop and improve roads to meet the needs of various planned land uses and reclaim unnecessary roads (N41-regional traffic, bus routes, k-mine loop road, local traffic, business/commercial uses, residential, etc.). b. Identify existing roads in need of improvements (pavement, gravel, bridges, etc.). c. Prioritize issues concerning improvement and maintenance of roads (impassable during inclement weather, number/name roads, etc.). d. Identify and resolve safety problems with the existing road system (sharp curves, signage, impassable, etc.). e. Develop and manage a road maintenance program. f. Work with Peabody to develop a system to inform the general public when an existing road will be removed or realigned due to mining activity (signage, flyers, etc.). g. Evaluate existing authorities for roads and utilities to determine if they should operate and maintain infrastructure within the leasehold area. Goal B: Provide utilities to accommodate existing developments as well as future growth. Objectives: a. Provide and maintain electric, water and wastewater services to meet the needs of all residents in the leasehold area. b. Extend electrical power to all residences. c. Extend water lines to all residences. d. Ensure all residences have some type of wastewater disposal system (sewer, septic, etc.).

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Goal C: Provide reliable communication services. Objectives: a. Explore the possibility of extending telephone landlines to all residences. b. Explore the need for additional cellular phone towers to allow access for a variety of service providers (Verizon, Cingular Alltel, etc.). Goal D: Provide a solid waste disposal program. Objectives: a. Explore and develop an adequate trash control and disposal program. Goal E: Determine whether the airport should remain or be removed. Objectives: a. Evaluate the pros and cons of keeping or removing the airport. b. Explore potential re-uses for the airport.

4. MINING FACILITY, EQUIPMENT REUSE AND ACQUISITION Goal A: Create opportunities to utilize mining facilities that represent the wants and needs of the leasehold community. Objectives: a. Examine current uses, size and condition of existing buildings/equipment/facilities and determine how they can be utilized to meet the needs of the leasehold residents (human resource center, warehouses, roads, grader, etc.). b. Identify and explore options of mining property for potential reuse, renovation or removal (buildings, keep certain fencing, conveyor belt, etc.). c. Explore opportunities to use materials of certain facilities for other uses (conveyor belt – reuse materials for livestock facility, corrals, housing, fencing, etc.). d. Ensure reuse of structures meet health, safety and building standards and regulations. e. Identify facilities to be removed and ensure that those areas are reclaimed. f. Identify existing earth dams and water tanks that will be kept. g. Remove and reclaim ponds that are constructed only for mining purposes.

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h. Develop a streamlined acquisition process for mining property identified for potential reuse. i. Develop a task force to ensure facilities to be transferred to local people are in good condition and to properly dispose of unnecessary buildings. 5. COMMUNITY SERVICES & FACILITIES Goal A: Provide adequate Community Development and services responsive to the needs of the community. Objectives: a. Identify and plan the public safety needs of the leasehold community (police, fire, emergency, etc.). b. Develop Community Development and programs to meet the needs of the leasehold residents (senior citizens center, elderly group home, fitness center, fire department, police station, etc.). c. Establish a program to manage and maintain the Community Development. d. Explore possible uses for mining facilities (reception hall, meeting rooms, etc.). Goal B: Provide educational facilities and services responsive to the needs of the community. Objectives: a. Identify and plan the educational needs of the leasehold community (pre-school, elementary, high school, etc.). b. Explore the feasibility of establishing college extension and vocational classes (auto repair, CDL licensure, welding, etc.). c. Study the feasibility and work with Kayenta School District on serving the educational needs of the leasehold community (school district, etc.). Goal C: Provide health care facilities and services responsive to the needs of the community. Objectives: a. Identify and plan the health care needs of the leasehold community (clinic, EMT, etc.).

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6. HOUSING Goal A: Provide safe and adequate housing to meet the needs and expectations of all incomes, lifestyles and age groups. Objectives: a. Ensure future construction of homes are structurally sound and of the highest quality. b. Provide a home for everyone. c. Promote rural scattered housing versus subdivisions. d. Identify existing houses in need of repair, renovation or improvement. e. Seek and identify funding sources for housing.

7. AGRICULTURE & LIVESTOCK Goal A: Continue grazing activities as essential to the traditional and economic base for the area. Objectives: a. Recognize the importance and continuance of grazing permits. b. Address grazing boundary issues. c. Continue and expand range management activities. d. Support the growth of the existing livestock association. e. Build a central livestock branding facility. f. Encourage reclamation efforts that improve vegetation for good grazing. g. Identify and plan for fencing (mend, fix, improve, etc.). h. Study fencing to support the grazing and livestock management efforts. i. Ensure water is provided for livestock use. j. Establish educational program for livestock and range management practices so decisions can be made (i.e. open grazing vs. fencing). k. Explore feasibility of and promoting livestock related businesses and operations (feedlot, community corral(s), windmills, cattle ranching, etc.). l. Ensure Navajo Partitioned Land (NPL) grazing regulations address the needs and wants of the leasehold community (NPL should not prohibit planning). m.Explore obtaining additional grazing areas possibly through land acquisition.

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n. Explore utilizing tribal ranches as an additional grazing area (occasional, seasonal use). o. Designate additional land located between mined and reclaimed areas for range management. Goal B: Continue farming activities as essential to the traditional and economic base for the area. Objectives: a. Investigate the feasibility of a commercial farming operation, similar to the Navajo Agricultural Products Industry (NAPI). b. Explore the potential for growing fruit trees. c. Identify and keep existing or potential farm plots. d. Ensure water is provided for farming.

8. ECONOMIC DEVELOPMENT Goal A: Develop an economic development program that supports and enhances the quality of life of the local community and economy. Objectives: a. Develop and maintain programs designed to expand and enhance the community’s economic base. b. Pursue recreation and tourism-related development activities (golf course, rodeo arena, cultural center/museum, water park, etc.). c. Attract and develop suitable commercial development activities (restaurant, Laundromat, gas station, car wash, office park, convenience store, office building etc.). d. Pursue industrial development activities (manufacturing facility, welding shop, auto shop, water bottling plant, gravel pit operation, etc.). e. Encourage local business start up and ownership. f. Ensure local workforce is available and properly trained (vocational classes, etc.). g. Create jobs and establish “local” preference in hiring practices to give preference to local families. h. Plan for and ensure adequate jobs are available after the closure of the mining operation.

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9. CULTURAL HERITAGE Goal A: Continue to preserve the cultural heritage and lifestyle of the Navajo that defines the history of the leasehold area. Objectives: a. Establish a cultural center/museum to preserve, share, educate and protect the history and culture of the leasehold residents and the mining operation (artifacts, photographs, stories, etc.). b. Promote the rich history, cultural & natural features and beauty of the area. c. Explore the development of a public park alongside the cultural center/museum. d. Retain native plants for herbal/medicinal use.

10. ENVIRONMENTALLY SENSITIVE AREAS Goal A: Identify and preserve environmentally sensitive areas. Objectives: a. Preserve and protect wildlife areas. b. Identify areas with unstable soils. c. Ensure future problems such as erosion are properly addressed in reclamation plans; include a timeframe to fix such problems.

11. HOPI PARTITIONED LAND (HPL) AREA Goal A: Ensure the needs of the HPL residents are met. Objectives: a. Include HPL residents in planning efforts. b. Explore options to assist these residents.

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6.

LAND USE & COMMUNITY DEVELOPMENT PLAN: WHAT DO WE KEEP AND HOW SHALL IT BE UTILIZED?

Introduction
The designation of future land uses for development are important to any community, especially for the Black MesaKayenta mines leasehold as it moves towards the closure of the mines. Decisions regarding how to design the landscape affect the way the community lives, works and spends its leisure time. Land-use decisions can also affect the way the community spends its money, potentially providing convenient locations for purchasing certain goods and services without the need for longdistance drives. Further, the way communities are planned has a direct impact on the community members’ health, safety, general welfare, and emotional stability. Solid planning can lead to a stronger economic base, an efficient system of roads and utilities, and the protection of natural, cultural and traditional resources.

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Land Use & Community Development
Land use and community development plans in the leasehold area as presented below are based on the wants, needs and desires of the impacted community members. Historically, many community members have been very pleased with the lifestyle afforded them by their mining jobs; others have reported short comings in their living environments. Some community members report their perceptions of issues such as the inconsistent access to power and water. Although the latter group indicates they have tried to make themselves heard on an individual basis about what they have seen as shortcomings, they now feel that their concerns are being heard, captured, and documented. Now, with the mines’ potential closure, most of the community members have the same concerns regardless of their past situations. The community realizes that it is imperative for all of the community members to join together to not only formulate a plan for the future, but also to present a unified presence in front of the Navajo Nation and to Peabody. The result of the community joining together has been extremely positive and immensely productive for all parties. The results of the collective efforts of community members with reference to land use and community development are discussed in the following sections. The information within these sections came directly from the written and spoken words of the impacted families and community members as voiced during work sessions, on a survey questionnaire and in public meetings. Generally, the results of those sessions indicate that most of the impacted families in the leasehold want the mines to remain open. If the mines should stay open, they want to reuse some of the unused facilities such as the roads, buildings, electrical structures and ponds for economic development and community activities. Should the mines shut down in the future, residents want to see to it that salvageable components of the mines’ infrastructure are appropriately incorporated into their community plans. To facilitate planning, the leasehold has been subdivided into six sectors: Owl Springs, Sandsprings, Great Springs, Yellow Water, White Grass and White House (FIGURE 12). The boundaries for these sectors are not official governmental jurisdictions; rather, they are based on where the leasehold families are clustered. Within these sectors are community members who have expressed their interests and concerns that more specifically related to their particular sector. Establishing these sectors provides a visual and descriptive method to organize the data and thereafter plan for the manageable task zones. While the proposed land use for each cluster is slightly different based on the existing and future needs of the people, all of the impacted families want to keep the cleanwater ponds, have the mining ponds reclaimed, and keep and/or improve all electrical and water facilities. Additionally, the families want to have power and water extended to all home sites. The individual sectors and their proposed land uses are discussed below along with the corresponding maps.

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Owl Springs Sector
Current Land Use Located in the southwestern corner of the leasehold area, the Owl Springs sector is primarily within HPL. The sector consists of one previously mined area (J-7) and three areas (J-8, J-9, and J-10) reserved for future mining. Within J-7 are areas of current and future mining. The existing land use as shown in FIGURE 13 includes roads, residential areas, power lines, wells and impoundments. Navajo Route, N41, crosses the east half of the sector from north to south. A network of Peabody’s roads dissects the sector’s north-central region with short sporadically scattered segments in the eastern and western halves of the sector. The Peabody powerline closely parallels a road to Cactus Valley, an unpaved community road that traverses the sector’s west half. Within this area, housing exists. Peabody’s Well No. 7 is situated in the southwestern portion of the sector near this road. There are also approximately sixteen impoundments that are either permanent or temporary as well as several temporary sediment ponds in the Owl Springs sector. Future Land Use Community members in the Owl Springs sector mainly desire to have some of the roads paved and straightened for ease of use and safety. While this includes the old BIA Road, it does not include most of Peabody’s existing roads. Further, the families would like bridges constructed over several washes. FIGURE 14 shows how these proposed changes may look on the landscape. The families want Sagebrush Well and the J-7 mining area reclaimed; additionally, they would only want to keep impoundments suitable for livestock or wildlife (TABLE 22). TABLE 22. OWL SPRINGS SECTOR FACILITIES AND DESIRED USE
Facility Name Bridges Road Utilities Desired Utilization Build bridge over Sage Brush Wash Build bridge over Sandsprings Wash Improve/Pave road to Cactus Valley including wash crossings Keep existing lines Extend power lines to all housing Extend waterlines to all housing Reclaim Sagebrush well Keep J-7 Well Only keep impoundments suitable for livestock or wildlife

Well Impoundment

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Sandsprings Sector
Current Land Use The Sandsprings sector is generally situated in the southwest area of the leasehold between Owl Springs sector to the south and Great Springs sector to the north. Moenkopi Wash crosses the northwestern part of the sector. The existing land use as shown in FIGURE 15 includes roads, facilities, residences, power lines, wells, sediment ponds, impoundments and grazing areas. Roads include Peabody mining as well as local community roads. Highway N41 also runs north-south through the sector and several powerlines owned by Peabody or NTUA crisscross the sector. There are 12 grazing units within this sector. All residences are located on the western and northwestern portion of the Sandsprings sector with most of these residences being located on areas designated for future mining. The sector has numerous water facilities. There are two water wells--a Navajo Nation Well (Navajo Well No. 4) and a Peabody Well (Well No. 7). Peabody also has a water stand (J-7 Water Stand) and two water tanks (700 and 6M gallons). There are approximately 18 impoundments that are either permanent or temporary as well as several temporary sediment ponds. The largest impoundment within Sandsprings, J-7 Dam, is designated as a major impoundment that supports riparian and aquatic habitat. The sector consists of two previously mined areas (J-7 and J-27) and two areas reserved for future mining. The reclaimed lands of J-7 are part of the managed grazing program within the leasehold. The facilities (buildings, structures, hopper, storage, and pipeline) within the Sandsprings sector are enumerated in TABLE 23. TABLE 23. FACILITIES WITHIN SANDSPRINGS SECTOR
Type Building Facility Bath House Breaker Building Coal Laboratory Control Building CTE Office Unnamed Facilities Quantity 1 1 2 1 1 11 Total

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TABLE 23. FACILITIES WITHIN SANDSPRINGS SECTOR (CONTINUED...)
Type Facility Maintenance Shop/ Warehouse Offices Mine Office New Electrical Building Old Electrical Shop Sample Building Service Line Control House Steam Cleaning Building Tipple Maintenance Shop Water Tank Building Welding Shop Concrete Pad EQ Site J-7 Water Stand Water Well #4 Water Well #7 CTE Sampler Tower Quantity 1 1 1 1 2 1 1 2 1 1 1 30 EQ Water 3 3 1 1 1 3 Towers 1 2 Coal Handling Coal Handling Structures Hopper Live Coal Storage Black Mesa Mine Pipeline 3 1 2 1 7 Total

Future Land Use Numerous options for future land use were generated by community members. While there was no unified single approach identified, the families did work together to develop several alternatives for future discussion, consideration and decision making. The families of the Sandsprings sector propose three alternative plans: • remove everything related to mining and return to pre-mining natural state; • keep only a limited number of buildings, and/or • keep only a limited number of buildings and move a selected few over to White House sector. Alternative 1. Remove everything related to mining and return to pre-mining natural state. This alternative would require the removal of all buildings, coal handling facilities and roads that are not required for access by residents to their homes. All of the land would be returned to its natural condition that existed before the mines began operation (FIGURE 16). The areas would consist of open spaces for grazing and other agricultural uses that are traditional to the Navajo way of life. One exception would be allowed and is also part of Alternatives 2 and 3. This exception would require N41 road to be realigned along

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the current mining haulage road. Alternative 2. Keep only a limited number of buildings. For the purpose of this alternative, families of the Sandsprings sector wish to reuse buildings (those that pass inspection and are safe) for other purposes such as community facilities (TABLE 24). Ideas include a post office, computer lab, library, community center, day care, senior citizen center and preschool. They also desire realignment of N41 for ease of use and safety. FIGURE 17 shows how these changes will appear on the landscape.

TABLE 24. ALTERNATIVE 2 FOR SANDSPRINGS SECTOR FACILITIES AND DESIRED USE
Facility Name Buildings Road Utilities Desired Utilization Reuse buildings for community facilities such as a post office, computer lab, or community center Realign N41 road to the current haulage road east of the Black Mesa Mine Facilities. Keep existing lines: – extend power lines to all housing – extend waterlines to all housing Retain all water facilities for community water supply Only keep impoundments suitable for livestock or wildlife

Well Water Well #4 & #7 Impoundment

Alternative 3. Keep only a limited number of buildings and move a selected few over to White House sector. This alternative is similar to Alternative 2, but the unused buildings would be moved to the White House sector. In addition there is a proposed housing development along N41 in the southern part of the sector. FIGURE 18 shows how these changes will appear on the landscape.

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Great Springs Sector
Current Land Use Generally situated in the northwestern section of the leasehold, the Great Springs sector is southeast of the Yellow Water sector, north of the Sandsprings sector and west of the White Grass sector. Coal Mine Wash runs along the northwestern edge of the sector. The existing land use as shown in FIGURE 19 includes mining features, mining facilities, grazing areas, roads, powerlines, residences, wells and impoundments. Current land usage in the Great Springs sector is varied. Only a small area in the northern portion of the sector is actively being mined because much of this area consists of previous mining lands. Substantial grazing land extends north-south through the center of the sector. Existing facilities include many buildings, an airport and a beltline (TABLE 25).

TABLE 25. FACILITIES WITHIN GREAT SPRINGS SECTOR
Type Buildings Facility Building Employee Trailer Facility Ambulance Garage Hector Construction Company Human Resources Building MCW Building MCW Oil Lab Mesa Central Warehouse Operations/MCW Public Coal Scale Public Coal Scale House Reclamation Barn Reclamation Barn Pumphouse Reclamation Maintenance Shop Reclamation Material Storage Area Reclamation Office Soils Lab Trailer Water Dept Storage Building EQ Site Old EQ Site Airport Electric Substation Substation Quantity 5 5 3 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 2 Electric 1 1 2 Total

31 EQ

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TABLE 25. FACILITIES WITHIN GREAT SPRINGS SECTOR (CONTINUED...)
Type Water Facility MCW Storage Tank Tank N-6 Water Stand Public Water Stand Water Well #2 Pumphouse Meteorological Tower Quantity 1 1 1 1 1 3 1 1 2 Airport J-3 Airport Building AWOS Runway Public Coal Transfer Transfer 23/24 Facility Beltline Concrete Batch Plant Conveyor Building 1 2 1 4 Coal Handling 1 3 1 1 3 9 Total

8 Tower

Both community and Peabody roads heavily dissect this sector of the leasehold. Facilitating interstate traffic, Navajo Highway 41 runs north-south through the western portion of the sector. Numerous dirt roads serve the local community and provide access to the various residences and mining facilities throughout the northwestern and southeastern areas of the sector. Extensive networks of Peabody’s roads are also present; many of which reside in reclaimed mining and grazing areas. Powerlines intersect with substations and minor and major transmission corridors owned by Peabody as well as a network of NTUA lines. Great Springs also has ample water facilities, most of which are owned by Peabody. These water facilities serve local residences and the mining operations. The facilities include a water stand, two water tanks and Navajo Well #2, which are near N41 in the center of the sector, as well as many impoundments throughout the Great Springs sector. Area residences are mainly scattered in the sector’s southern half. Future Land Use Community members desire to keep as many of the facilities as possible so long as they are safe and pass inspection for reuse (TABLE 26). Potential uses for the buildings would be for community facilities and/or commercial development such as a community center/chapter house, nursing home, senior citizen center, barn/hay house, or school. The current operations building which has a fence around it could be used for commercial development. In addition to the facilities that could be retained in the Great Springs sector, the families have several ideas for the airport, including removal and reclamation of the area; remove runway and keep the fencing around the airport and the building; and, convert airstrip to a recreational area. Community members also wish to have the dumpsters relocated and a

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paved road installed that will enter the leasehold from the east and intersect with N41 in the center of Great Springs sector. FIGURE 20 demonstrate how these changes appear on the landscape.

TABLE 26. GREAT SPRINGS SECTOR FACILITIES AND DESIRED USE
Facility Name Buildings Desired Utilization Reuse buildings for community facilities such as community center or chapter house, nursing home, senior citizen center, barn/hay house, school Reroute Kayenta Mine road to the south along the northern edge of the grazing units Keep existing lines – extend power lines to all housing – extend waterlines to all housing Retain all water facilities for community water supply (Water Well #2, Water Stand, Water Tanks) Only keep impoundments suitable for livestock or wildlife

Road Utilities

Wells Impoundment

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Yellow Water Sector
Current Land Use Yellow Water sector lies at the upper most area in the leasehold with its southern end adjacent to the Great Springs sector. Yellow Water Canyon Wash crosses the sector and Coal Mine Canyon Wash runs along the southeastern edge. The existing land use as shown in FIGURE 21 includes mining features, mining facilities, grazing areas, roads, powerlines, residences, wells and impoundments. The majority of the land in this sector is actively being mined or has been previously mined, or is being used for grazing. Both the community and Peabody’s mining roads are prevalent but mainly associated with these mining features and grazing areas. Few residences are present and are primarily north of N-2. Powerlines are confined to the southern portion of the sector leaving residences to the north without electricity. Existing facilities include many buildings, coal handling facilities and a beltline (TABLE 27). Water facilities consist of one well in the southern region of this sector as well as numerous impoundments or sediment ponds scattered throughout.

TABLE 27. FACILITIES WITHIN YELLOW WATER SECTOR
Type Building Facility Control Building Environmental Affairs Building N-11 Facilities N-7 & N-8 Shop N-8 Coal Lab N-8 Control Building N-8 Facility N-8 Storage Shed N-8 Substation N-8 Tire Shop Radial Stacker EQ Site Airport Electric Substation Substation Leach Field Septic Tank N-8 Water Tank Water Well #8 N-8 Pump House Quantity 5 5 3 1 2 1 1 1 1 1 1 1 1 Electric 1 1 2 Sewer 1 1 2 Water 1 1 1 3 Total

22 EQ

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TABLE 27. FACILITIES WITHIN YELLOW WATER SECTOR (CONTINUED...)
Type Coal Handling Facility N-8 Coal Analyzer N-8 Coal Storage and Reclaimer N-8 Hopper N-8 Reclaim Hopper N-8 Coal Sampler Quantity 1 1 1 1 1 Total

5

Future Land Use TABLE 28 lists all of the present mining facilities that Yellow Water sector families wish to retain. In addition to the electric and water related elements, the community also wishes to regain the engineering building and all related fencing. The families would like to remove the conveyor belt system, reclaim the road, and keep only the northern fence along the beltline. In addition, the families desire to have farming along the road going north and south and they desire to have utility lines installed to each residence. FIGURE 22 demonstrated how these changes appear on the landscape.

TABLE 28. YELLOW WATER SECTOR FACILITIES AND DESIRED USE
Facility Name Buildings Desired Utilization Reuse buildings for community facilities such as community center or chapter house, nursing home, senior citizen center, barn/hay house, school Reroute Kayenta Mine road to the south along the northern edge of the grazing units Keep existing lines – extend power lines to all housing – extend waterlines to all housing Retain all water facilities for community water supply (Water Well #8, Water Tanks) Only keep impoundments suitable for livestock or wildlife

Road Utilities

Wells Impoundment

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White Grass Sector
Current Land Use The western section of White Grass sector ends at Great Springs sector. White Grass sector is situated in the northeast section of the leasehold area and its southern edge ends at White House sector. Moenkopi Wash crosses this sector. The existing land use, as shown in FIGURE 23, includes mining features, grazing units, roads, powerlines, mining facilities, residences and impoundments. As with the other sectors, the White Grass sector also has a variety of land statuses. Mined areas are present from north to south though the sectors central corridor. Interspersed among these mined loci are the J-16 and N-14 grazing unit. Active mining is confined to the northwest portion of the sector. Two mining reserves are also present; one is just above the actively mined area in the northwestern corner and one is in the sectors western region. Many community roads as well as Peabody’s mining roads extend across this sector in all areas. A primary road runs northwest-southeast through the northern half of the sector and then turns south in the sector’s southern portion. Powerlines are also prominent and include both major and minor corridors owned and operated by Peabody as well as one NTUA line that parallels a minor Peabody line heading northeast-southwest through the northern half of the sector. Private residences, along with many mining facilities (TABLE 29), are located throughout the sector and are mainly situated near the community and Peabody mining roads. Other mining facilities include the beltline running northwest-southeast next to N41, a water stand and approximately 11 impoundments. TABLE 29. FACILITIES WITHIN WHITE GRASS SECTOR
Type Buildings Facility J-28 Bath House J-28 Bucket Barn J-28 Control Facility J-28 Electrical Shop J-28 Facilities J-28 Laboratory Facilities J-28 Laboratory Sample System J-28 Material Storage Area J-28 Pickup Wash Control J-28 Scale House J-28 Tipple Control Facility J-28 Tire Shop J-28 Truck and Tractor Shop Quantity 1 1 2 1 11 1 1 9 1 1 1 1 1 Total

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TABLE 29. FACILITIES WITHIN WHITE GRASS SECTOR (CONTINUED...)
Type Facility Bldgs. cont’d J-28 Truck Wash J-28 Vibrating Screen J-28 Welding Shop Kayenta Mine Office N-14 Electricians Storage Facility N-14 Laboratory Facilities EQ Electric EQ Site J-16 Substation Substation N-14 Explosive Storage N-14 Explosive Facility N-14, J-16, J-28 Water Tanks Public Water Stand N-14 & J-28 Pumphouses Ireco Tower N-14 Microwave Tower J-28 2000 Ton Hopper J-28 Analyzer J-28 Crushers J-28 Dust Suppr. Control J-28 Dust Suppression Control Facility J-28 Live Storage Dome New J-28 Hopper Transfer 20 Transfer 20-21 Transfer 20-21 Mc Bldg Transfer 21-22 Transfer 21-22 Mc Building Transfer 22-23 Transfer 22-23 Control Facility Quantity 1 1 1 1 1 1 1 1 1 1 2 Explosive 1 1 2 Water 3 1 2 6 Towers 1 1 2 Coal Handling 1 1 1 1 1 1 1 7 Transfer Facility 1 1 1 1 1 1 1 7 Total

38

Future Land Use Community members within the White Grass sector worked cohesively and therefore developed bountiful ideas for potential future use of the land within the community. They believe that many mining elements can be reclaimed or otherwise incorporated into community and economic development projects. Among others needs, the families want to assure adequate water and power facilities which can become the basis on which the community can build and prosper. Further, they wish to pave Kayenta Mine Road and extend it south to become a main road through the leasehold. In support of livestock and wildlife, the community would only keep the impoundments that meet this need. As to the use or reuse of buildings, the families had many ideas regarding the structures including truck and tractor shops, a Kayenta Mine office and even

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a bathhouse. Reuse buildings for commercial purposes could be such uses as gas station, convenience store, Laundromat, museum and golf course. With reference to community uses, buildings could be set aside for a community center or chapter house, nursing home, senior citizen center, barn/hay house, or school. If incorporated into the community when the mines close, the uses of these elements would be for commercial and recreational uses as well as community use for facilities such as a post office or future Chapter House. In addition to these elements as listed in TABLE 30, the families in the White Grass sector also developed other creative ideas including the potential for a golf course, an arena, a small saw mill, restaurant, office park and/or corral and they intend to continue to explore the feasibility of their ideas. The families even envisioned the potential for some of the buildings for large handsome homes or for some buildings to be subdivided into multi-family homes. FIGURE 24 shows how these changes appear on the landscape.

TABLE 30. WHITE GRASS SECTOR FACILITIES AND DESIRED USE
Facility Name Buildings Desired Utilization Reuse buildings for community facilities such as community center or chapter house, nursing home, senior citizen center, barn/hay house, school. Reuse buildings for commercial use such as gas station, convenience store, Laundromat, museum and golf course. Pave Kayenta Mine road and extend south to make it a main road throughout the leasehold. Keep existing lines –extend power lines to all housing –extend waterlines to all housing Retain all water facilities for community water supply (Water Well #8 , Water Tanks)) Only keep impoundments suitable for livestock or wildlife

Road Utilities

Wells Impoundment

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White House Sector
Current Land Use The White House sector lies on the southeast segment of the leasehold area, with White Grass sector just above it to the north, and is situated in the White House Valley. Dinnebito Wash crosses the southeastern portion of the sector. The existing land use, as shown in FIGURE 25, includes mining features, grazing units, roads, powerlines, mining facilities, residences and impoundments. Varied land statutes are also present in this sector. Current mining areas underlay HPL land in the sectors southwestern corner and are also present immediately to the north and east. A large mining preserve is adjacent to the eastern edge of the HPL. A substantial area of reclaimed mining land exists in the northwestern region of the White House sector. A small belt of grazing land flanks the northern edge of the reclaimed area. Extensive Peabody road alignments provide access to the previously and current mining areas. Community roads are primarily confined to the southern half of the sector. Peabody’s powerlines run east-west and north-south in the northern part of the sector. An NTUA transmission corridor cuts through the extreme southwestern corner of the White House sector. Residences are more frequent that mining buildings in the White House sector and are mainly scattered in the south central portion near the currently mined area. Water facilities mainly consist of sediment ponds and a major impoundment used for wildlife and livestock. Additionally, a J-21 explosive facility is located along the northwestern boundary of the sector and a water tank is proposed in J-19 (TABLE 31). TABLE 31. FACILITIES WITHIN WHITE HOUSE SECTOR
Type Explosive Facility EQ Water Facility Explosive Facility EQ Site Proposed J-19 Water Tank Quantity 1 1 2 2 1 1 Total

Future Land Use Although the White House area is the largest of the six sectors, few mining facilities are present within the sector. As a basic need, families desire to have adequate water resources and electricity provided to the homes within the

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sector. The families of this sector also proposed a reroute on a community road located in the northeast corner of the White House sector. They also wish to have two domestic water wells near the old Forest Lake area. Several family members also desire to have selected facilities moved from their current location in the Sandsprings sector to the White House sector. These facilities could be used for community facilities or divided among the families for personal use. Additionally, the families propose that a J-19 Water Tank be built to supply the local residents with important water resources. To facilitate movement in and around the community, families desire better access to the residences through bridges installed over the washes. They desire to extend and pave Kayenta Mine road south through central White House sector. To support wildlife and their livestock, families would like to keep the impoundments that are suitable for that purpose. (TABLE 32) Separately, they would like the two impoundments along Dinnebito Wash in the eastern part of the sector to be removed. FIGURE 26 shows how these changes appear on the landscape. TABLE 32. WHITE HOUSE SECTOR FACILITIES AND DESIRED USE
Facility Name Road Utilities Desired Utilization Extend and pave Kayenta Mine road south through central White House sector Keep existing lines – extend power lines to all housing – extend waterlines to all housing Install a water tank for community purposes.

Wells: Proposed Water Tank Impoundment

Keep impoundments suitable for livestock or wildlife and remove two impoundments located along Dinnebito Wash in the eastern portion of the sector located near the residences

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7. ACQUISITION PLAN:
Costs and Potential Funding

HOW DO WE GET THERE?

There are two primary components related to costs to implement the acquisition plan identified in the previous section: acquisition of the facilities, and ongoing operation and maintenance of the facilities once they become the responsibility of a chapter, the Navajo Nation or other entity. The Facilities Plan identifies infrastructure that would, at least on a preliminary basis, be retained once the mine closes. These were detailed in the Infrastructure Assessment, dated July 12, 2005, and have been refined to include: • • Roads Utilities (water, sewer, telephone)

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• • •

Water Facilities (impoundment/livestock ponds) Buildings Airport

Acquisition of most of the facilities will require negotiations with Peabody, which would most likely result in revision of the mine closure plan. A more detailed analysis of facilities identified on a preliminary basis in this Plan also needs to be completed in order to more specifically identify the feasibility of using particular buildings for the variety of Community Development and commercial/industrial uses that have been identified. The analysis should include a more complete needs assessment and a phasing plan for addressing community needs while the mines are still operational, as well as once the mines are closed. Operation and maintenance costs would become the responsibility of the owner of the facility. Since these costs are usually the most significant portion of the overall life cycle costs for a facility, they should be documented and closely evaluated as part of the negotiations for acquisition of any facility. The owners of facilities will be determined by the use and purpose of a particular facility. For example, any school facilities would most likely be the responsibility of the Kayenta School District, requiring that those facilities be included in that District’s facilities plan for future growth. New roads would become the responsibility of Navajo Nation; utilities would be the responsibility of NTUA. Operation and maintenance costs would, in these cases, require additional public expenditures or other forms of user fees for support. Private businesses’ ongoing maintenance and operation costs would be the responsibility of individual owners.

Potential Economic Development Opportunities
Economic development and attracting business and industry is highly competitive among units of government, and those governments that plan for it are usually the beneficiaries of new businesses and jobs. In addition to the accessibility to markets and suppliers, other important components that are needed to attract business and industry, which will create job opportunities, are: • A trained and available labor force; • Infrastructure in the form of buildings and utilities that will support business and industry and • Community Development and amenities (e.g., schools, parks, recreation opportunities) that are available to employees and their families. During the preparation of this Plan, a number of meetings and surveys were used to identify residents’ desires for future development and an economic base of the area. The opinions varied greatly, from returning to traditional grazing as a lifestyle to increased opportunities locally for jobs and generating opportunities for businesses to locate in the area once the mine closes. These opinions appear to be wide ranging and a potential conflict in terms of goals for the area, but they should be seen as a “starting point” for further discussions and refinement of the vision for the area. For example, an emphasis on grazing and traditional agriculture can also mean that options such as commercial farming operations and businesses that are needed to support agricultural activities may be located in the area, further providing jobs and taxes for supporting

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Community Development and services. A rodeo arena and other related types of activities, such as a cultural center or museum, can also attract tourism and revenue for the community and businesses, while still remaining an agriculturally-based economy and preserving the cultural heritage of the area. On the other hand, businesses that provide essential services to residents, such as car repair shops, convenience stores, laundromats, gas stations and restaurants can provide residents with many of the conveniences currently not readily available in the area. Both of these examples are viable options as long term goals to be considered in ongoing discussions as the mine operations move closer to actual closure. This Plan establishes a framework for providing the components that are needed to pursue the economic development goals that are identified in a previous section, and to support the other goals for the area. A sound economic development strategy also requires cooperation and a coordinated approach from all levels of government and the private sector. An economic development strategy should be developed in conjunction with the more detailed analysis and negotiations with Peabody regarding facilities and revisions to the mine closure plan. Specifically, the strategy should address the needs and desires of the Black Mesa-Kayenta area using the economic development and other goals in this Plan as a reference. Parties that would participate include, at a minimum, Navajo Nation Department of Economic Development, residents of the area, chapter officials, NTUA and Kayenta School District.

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References
Peabody Coal Company. 2004. 2004 Minesoil Reconstruction Report and Revegetation Activities. Flagstaff, Arizona. Report prepared for: The Office of Surface Mining Reclamation and Enforcement, Western Service Center, Denver, Colorado. Wester Water & Land, Inc., 2003. Final Wash-Plant Refuse Disposal Hydrologic Impact Evaluation Report; Black Mesa Mine Complex; Kayenta, Arizona. Grand Junction, Colorado.

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Appendix

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Appendix A
INITIAL FLYER

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Appendix B
NEWSLETTERS (3)

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Appendix C
SURVEY QUESTIONNAIRE