Our Position

- Navajo Nation
- Our History
- Q&A
- Our Position
- Resources

Over the past 20 years El Paso’s right of way compensation to the Nation has outpaced the rates per rod paid to private and federal landowners.

Current rates in the San Juan Basin are approximately $100 to $500 per acre for a perpetual right of way agreement on privately owned land, yet the Nation’s negotiators are demanding the equivalent of $50,000 per acre for a 20-year term. Payments of the magnitude currently sought by those representing the Nation would increase the costs of natural gas transportation to our customers in the Southwest and California. It is not practical to build a new pipeline around the Nation given the costs and environmental issues. The Navajo position is simply not fair to consumers, and high right of way costs create a financial barrier to constructing new pipelines needed to provide fuel for the growing needs in the western United States. El Paso hopes that it can reach an agreement with the Nation on a reasonable renewal payment. However, we have filed an application with the Department of the Interior requesting that the agency renew our right of way without tribal consent. (See"'resources" for a copy of our filing.)

El Paso will continue its longstanding tradition of contributing to the greater good of the Navajo Nation and related local communities. The company plans to continue supporting community initiatives by helping fund educational, medical, and emergency response programs designed to enrich the lives of the Navajo people. With this longstanding commitment, El Paso and the Nation can look forward to another 50 years that stimulates the Navajo economy; continues to provide an increasing number of high-quality job opportunities to the Navajo people; and generates stable governmental revenues for the Navajo Nation and its communities. The benefits of this relationship are clear for consumers, the company, and the Navajo Nation.