Desert Rock Energy Company, LLC proposes to construct a hybrid dry cooled coal-fired electric power-generating plant south of Farmington in northwestern New Mexico, per the project development agreement entered into with Diné Power Authority (DPA), an enterprise of the Navajo Nation. Desert Rock Energy is a subsidiary of Sithe, a privately held, independent power company. DPA was established as an enterprise by the Navajo Nation Council to promote the Navajo Nation’s development of energy resources. This project would represent a substantial economic development for the Navajo Nation.

The proposed location of project facilities is on land held in trust by the Federal government for the Navajo Nation; therefore, the project proponents will enter into a long-term land lease with the Navajo Nation that will require the Bureau of Indian Affairs’ (BIA) approval. The BIA approval process is considered a Federal action requiring review under and in compliance with the National Environmental Policy Act of 1969 (NEPA). The BIA Navajo Regional Office, serving as the lead Federal agency for compliance with NEPA, has determined than an Environmental Impact Statement (EIS) will be prepared. Under NEPA, actions such as the Desert Rock Energy Project must consider the potential effects on the environment including human, natural, and cultural resources. Questions that typically are considered by agencies during this type of planning process include:

• Is there a valid purpose and need for the project?
• Have a reasonable range of alternatives been considered?
• Is the proposed project consistent with applicable existing regulations and plans?
• Will the proposed project cause adverse effects on the human and natural environment?
• Is mitigation effective in minimizing impact?
• Has the public been informed about the proposed project and had an opportunity to express issues or concerns?

URS Corporation (URS) has been retained to assist BIA in preparing the EIS required under NEPA. A number of Federal and tribal agencies are participating in the preparation of the EIS as cooperating agencies, including the Navajo Nation, U.S. Environmental Protection Agency, Office of Surface Mining Reclamation and Enforcement, the Bureau of Land Management, and the U.S. Army Corps of Engineers.

The Draft EIS for the Desert Rock Energy Project was released for public review and comment in May 2007. The Draft EIS provides a description of the proposed project, analyzes the potential environmental impacts of the proposed project and alternatives, and recommends measures to mitigate impacts. The Draft EIS has been placed on this web site for downloading. A public comment period on the Draft EIS closed on October 9, 2007.

What's New

The BIA has reviewed all of the comments received on the Draft EIS; formulated responses; and revised, supplemented, or clarified the EIS as appropriate. Once the Final EIS has been completed, it will be released to the public.

The BIA has posted a copy of the Draft EIS to this project website to facilitate access to the document by interested parties. When released, the Final EIS will be placed on this website.

• Draft Environmental Impact Statement is available for downloading