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El Paso Natural Gas Company and the Navajo Nation
El Paso Natural Gas Company’s 50-year history with the Navajo Nation is one of cooperation, camaraderie, and mutual respect that El Paso looks forward to continuing for years. Since 1947, when then-El Paso President Paul Kayser developed plans to construct a 450-mile, 24-inch diameter natural gas pipeline that would transport San Juan Basin natural gas into southern California, El Paso has nurtured its relationship with the Nation. Construction plans called for about half the proposed pipeline to be built through the Nation to Topock, Arizona. El Paso worked with the Nation and individual tribe members to forge a longstanding, close relationship as the company’s representatives secured rights of way across Navajo lands. That relationship has been vital to providing much-needed natural gas supplies to the West Coast from the San Juan, Permian, and Anadarko basins as well as the Rocky Mountains.

C. L. Perkins, who would later become an executive at El Paso, worked with other El Paso employees to initiate the crucial right of way discussions. Paul Jones, who later became Tribal Chairman, served as translator between El Paso and the Navajo Nation Council, which at the time was led by Chairman Sam Ahkeah. Jones’ accurate representation of the company’s intentions was vital to the success of the negotiations. Similarly, Perkins truly wanted to improve economic conditions for members of the Navajo Nation and knew that building the pipeline across Navajo lands would enable the company to employ many tribal members. These informative and forthright discussions led to El Paso’s acquiring rights of way for all its facilities. In addition, El Paso hired several Navajo Nation tribal members as contractors, placing those who were bilingual in leadership positions, which resulted in the smooth construction of the pipeline. El Paso not only hired these Navajo contractors at a fair wage, but it paid $1.00 per rod (about 16.5 feet of pipeline) right of way fees, slightly more than the compensation paid to private landowners at the time.

From the beginning, the Nation has welcomed and supported El Paso. One of the most colorful and rewarding events in the company’s history took place as El Paso’s project neared completion. In July 1951, the Nation celebrated the grand opening of the Navajo compressor station with a barbecue and rodeo honoring El Paso employees and officials. Dignitaries representing the Navajo Nation rode in a parade before the rodeo as an example of appreciation and friendship. The Nation also graciously presented the company with three hand-woven rugs bearing the El Paso logo. Once the facilities went into operation, El Paso hired as permanent employees many Navajo people who had helped build the pipeline and compressor station.

Over the ensuing years, El Paso constructed additional pipeline and looping on the Navajo Nation. With each expansion, the company employed as many Navajo contractors as the project allowed. In addition, the company paid competitive wages and benefits to all. El Paso now operates about 900 miles of mainline and related facilities on the Nation. Today, El Paso employs Navajo Nation members to operate and maintain power lines, water lines, access roads, landing strips, communication towers, cathodic protection stations, meter sites, and valve sites. In total, El Paso employs 23 Navajo tribal members to manage and operate these facilities. On average, El Paso’s Navajo employee’s compensation is in excess of $50,000 per year. Additionally, the company pays benefits, which average 25 percent to 30 percent above base salaries, to its employees, making El Paso an attractive employer in the area. El Paso’s Navajo employees are eligible for company benefits, including medical, dental, and life insurance as well as company-matched retirement contributions and a company-supported pension plan. These employees also benefit from company-paid training opportunities, teaching them marketable skills such as welding and general construction trades. Many Navajo employees have more than 24 years of tenure with the company, and in several instances these employees are second-and third-generation El Paso workers. El Paso currently pays retiree benefits to 54 retired Navajo employees. Between employment, taxes, and business dollars, El Paso’s presence in the Navajo Nation impacts the local community by about $2.8 million annually.

In addition to the successful business relationships forged with the Navajo Nation over the past 50 years, El Paso proudly invests in the Nation through corporate contributions. The company prides itself on its good neighbor policy and accordingly, consistently contributes to programs supporting local Navajo communities. The company makes contributions primarily through the El Paso Corporate Foundation, its philanthropic arm. For example, El Paso has contributed substantial monetary support to The Navajo Museum Library and Visitor Center in an effort to preserve the history of the Navajo people. While El Paso has supported the Navajo Nation Fair for many years, the company has contributed more than $15,000 to this endeavor alone in each of the past few years, and the company has committed to a $15,000 contribution for the 2005 Navajo Nation Fair. Furthermore, El Paso contributed $100,000 to support the Tribal Scholarship Fund, providing financial aid that allows the youth of the Nation to pursue higher education. In addition, the company has contributed numerous in-kind donations to the Nation, including buildings, vehicles, equipment to dig water wells, and other materials that improve the quality of life for Navajo people. In all, El Paso’s charitable contributions to the Navajo Nation exceed $450,000 just in the past 10 years.

Although an interim right-of-way extension arrangement has been agreed to by El Paso and the Nation, a long-term right-of-way agreement still needs to be negotiated. The parties remain far apart over what constitutes “fair value” for right-of-way on tribal lands. El Paso will continue to work toward a solution that is fair to consumers and fair to the Navajo Nation.