a lease covering the same area the previous February. Both leases were signed on this day. They were subsequently approved by Stewart Udall. At this time Boyden was representing both Peabody and the Hopi Tribal Council. Southern California Edison was paying Peabody $7 per ton for the coal in 1977. The royalty rate to the Hopi Tribe was 6.67% or $.47 per ton. Standard Federal coal leases are to provide a 12.5% royalty rate. Report to Kikmongwi,p 149 1966/07/07 BIA GIVES FINAL APPROVAL TO PEABODY LEASES IN THE 1882 RESERVATION This was for lands within the 1882 Executive Order Reservation for 40,000 acres. Leases with both the Hopis and Navajos were approved simultaneously. Royalty payments to the Navajo Tribe were $1.815 million in 1977 when 4.428 million tons of coal produced. Average rate was $.41 per ton, or 6.67%. Mine Control, Supp,p 133 1966/07/07 PEABODY & KENNECOTT DISCLOSE PROPOSED MERGER were Talks had been conducted "during recent weeks". This means the talks began immediately after the Hopi Tribal Council signed its lease. The tentative price was $465 million. WSJ 07/08/1966, p 2;3 1966/07/08 COMMISSIONER BENNETT ISSUES FREEZE ORDER This order outlawed any Navajo housing construction on any land contested by the Hopi Tribal Council. It included all land in the Joint Use Area as well as a large area around Tuba City. The order was formalized by U.S. courts in 1972, and has resulted in great hardship for Navajos both inside and outside of the 1882 Executive Order Reservation. Final approval to the Peabody leases on Black Mesa had been given by the BIA on the previous day. Geopolitics, p 26 1966/07/28 NAVAJO TRIBAL COUN. DIRECTS UDALL TO SIGN AWAY WATER RIGHTS In a resolution apparently written by Littell, the Navajo Tribal Council voted to petition "the Secretary of Interior to take all steps necessary, advisable, or incidental, to affirm the right of the Navajo Tribe to 50,000 acre-feet of water from the upper Colorado River basin pursuant to the Upper Colorado Basin Compact and authorize the use of 40,000 acre-feet thereof for the purposes of "(1) Cooling the generators of Peabody's proposed 2000 megawatt (MW) power plant on the Navajo Reservation and (2) Serving as a backup system to Peabody & Company's coal slurry pipeline to the Mojave Generating Station in Nevada." This resolution also authorized Littell to negotiate an industrial site lease and associated right-of-way arrangements with Peabody to build its power plant at Antelope Creek near Page. These agreements were later scrapped when Peabody dropped out. Navajo TC Res CJY-95-66 1966/11 HOPI TRIBAL COUNCIL DISCUSSES RAILROAD LINK TO BLACK MESA The council discussed a possible railroad link between the Santa Fe Railroad and Peabody's Black Mesa mines. No action was taken. Other proposals for a rail link have subsequently been made. Report to Kikmongwi,p 150 1966/11/01 PEABODY AND KENNECOTT SIGN LETTER OF INTENT WSJ 11/02/1966, p 31;4 1967/01/09 PEABODY SIGNS CONTRACT WITH SOUTHERN CALIFORNIA EDISON The contract was for $500 million over 35 years to supply S.C.E.'s Mojave Plant with 117 million tons of coal. WSJ 01/09/1967, p 2;2 1967/01/09 UDALL FIRES LITTELL AS NAVAJO TRIBAL ATTORNEY A Supreme Court decision had upheld Udall's right to terminate Littell's attorney contract with the tribe. Littell resigned a short time later. Redhouse,p 20 1967/02/01 UDALL ANNOUNCES REVISED CENTRAL ARIZONA PROJECT PLAN This revision recognized that the proposed dams in the Grand Canyon were not going to be built. In their place, it was proposed that the Bureau of Reclamation would become a part owner of a coalfired generating station to be built at Page and its share of the power would be used to pump Central Arizona Project water to Phoenix and Tucson. Salt River Project would operate the plant. Since 1964 SRP had been seeking Arizona's 50,000 acre feet share of the Upper Colorado water to use in cooling a coal-fired plant at Page. Geopolitics, p 20 1967/03 HOPI TRIBAL COUN. GRANTS PERMIT FOR COAL SLURRY PIPELINE Report to Kikmongwi,p 150 1967/09/27 HOPI TRIBAL COUNCIL APPROVES ASSIGNMENT OF The Council received a token $10 fee for agreeing to the assignment. The Navajos received $100,000 for the same action on their part. Boyden advised against "attempting to extract money from the coal companies under these circumstances." At this time the merger agreement between Kennecott and Peabody was being concluded, with Boyden working for both Kennecott and Peabody. The tribal council vote was 3 in favor, none opposed, with 1 abstention (RTK, E 118A(4)). The BIA Area Director W.W. Head had recommended "It is recommended by this office that approval be granted for the Hopi assignment on the same basis as any settlement made for assignment of Navajo interests (RTK, E 118A(6)). In the Martindale-Hubbell Attorney Directory for 1966 and 1967, the leading reference work on attorneys and their clients, Boyden's firm listed Peabody among its representative clients, indicating that Boyden was working for Peabody at the time of the Hopi signing of the Black Mesa coal lease and at the time of the Kennecott-Peabody merger. Marvin O. Young, Vice President and General Counsel for Peabody, stated that "the Boyden firm was undoubtedly paid for its services by Kennecott, as were the other lawyers involved in this transaction." (RTK, E 118e (4)). The merger was financed by Morgan Guaranty Trust. Thus, at the time of the signing of the Peabody coal leases and the Kennecott-Peabody merger, Boyden was representing the Hopi Tribal Council, Peabody and Kennecott. It is no wonder that Peabody's price rose 350% ($1 billion) in the next nine years. Boyden was paid at least $10,689.58 by Kennecott for his work in connection with the merger. The companies were willing to pay $100,000 for assignment of the Hopi interest. The Hopis got $10. $10,689 is very near to the standard 10% award to an attorney for winning a $100,000 judgement. Good work, John. Report to Kikmongwi,p 150 1968/01/29 PEABODY'S STOCKHOLDERS APPROVE MERGER The The merger with Kennecott was approved for $475 million. meeting to vote on the issue had been postponed five times. The Federal Trade Commission said on January 23 that it would not approve the merger. WSJ 01/29/1968, p 5;2 1968/04/01 MERGER OF PEABODY INTO KENNECOTT COMPLETED The merger was financed by Morgan Guaranty Trust which loaned Green River Coal Company (a Delaware Corporation) $300 million. Green River was holder of the Peabody production payment. The loan was mortgaged by St. Louis Union Trust Co. WSJ 04/01/1968, p 12;4 1968/08/08 F.T.C. FILES SUIT TO DISSOLVE PEABODY MERGER WSJ 08/13/1968, p 4;2 1968/09/30 PRESIDENT JOHNSON SIGNS CENTRAL ARIZONA PROJECT BILL The bill stated that Arizona's 50,000 acre feet share of the Upper Colorado belonged to the state and not to the Navajo Tribe. The Navajo Tribal Council passed a resolution shortly thereafter waiving its rights to the Upper Colorado water. The BIA Area Director approved the resolution after being told he would have to resign if he didn't. of course Stewart Udall put his final blessings on the deal. Geopolitics, p 21 1969/01/17 UDALL SIGNS CONTRACT CLEARING WAY FOR PAGE PLANT The contract was between the Salt River Project, operator of the plant, and the Bureau of Reclamation, to provide industrial water service from Lake Powell to the plant. Udall was the signatory for both parties. 1969/02 HOPI TRIBAL COUNCIL APPROVES PIPELINE RIGHTS TRANSFER The Tribal Council discussed Peabody's mining efforts in the Joint Use Area and approved the transfer of certain leased land rights between Black Mesa Pipeline Company (a subsidiary of Southern Pacific) and Peabody Coal. Report to Kikmongwi,p 150 1969/11 HOPI TRIBAL COUNC. APPROVES NEW MINING LEASE WITH PEABODY The lease was for the mining of 10,240 acres of land. It was approved by the Sect. of the Interior on Apr. 9, 1970. 1970/06/05 PEABODY SIGNS SUPPLY CONTRACT WITH NAVAJO PLANT The contract was for 35 years to supply coal for about $750 million. WSJ 06/05/1970, p 18;4 1970/06/29 INDIAN CLAIMS COMMISSION ISSUES DOCKET 196 DECISION The commission ruled that the creation of the 1882 Executive Order Reservation had extinguished Hopi title to all lands outside that reservation. According to the commission, this was 2,191,304 acres. It also stated that the government had also extinguished title to all lands within the Executive Order Reservation except for District 6 in 1937 totalling 1,868,364 acres. No further decisions were made at this time. Report to Kikmongwi,p 156 1970/07/15 HOPI TRADITIONAL LEADERS PROTEST CLAIMS COMMISSION PROCEEDINGS Letters were sent to the Indian Claims Commission from four Hopi kikmongwis. They wrote, "We the Hopi Indian Nation did not at any time file the claim for compensation for our homeland. Much we regret that our honorable name has been shamelessly used." Another wrote, "The Hopi Tribal Council which submitted this so-called Hopi Tribal Land Claim to your commission does not and never has, represented us, the Hopi Traditional Chiefs and our people and our villages. ... We, the Hopi Traditional Chiefs, will not accept any land settlement wherein the United States government will pay us for our land. This is against our traditions and religious beliefs." Report to Kikmongwi,p 158 1971/05/13 FEDERAL TRADE COMMISSION FORMALLY ORDERS KENNECOTT TO DIVEST PEABODY Kennecott immediately began the appeals process. 1971/05/14 HOPI TRADITIONALS FILE LAWSUIT TO BLOCK PEABODY LEASES This was the second lawsuit filed by Hopi leaders opposing mineral development and was titled Starlie Lomayaktewa et al. vs. Rogers Morton and Peabody Coal Company. Four of the plaintiffs were kikmongwis. This case was also dismissed, again because of the supposed sovereignty of the Hopi Tribal Council. The dismissal was subsequently approved by the U.S. Court of Appeals in 1975 and |