Partnership for Opportunity and Workforce
and Economic Development
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Northwest New Mexico Economy Responds to Global Trends
The Northwest New Mexico Council of Governments is using the resources of a federal EDA “POWER” grant and working with partners in our region to create jobs replacing those energy and coal jobs that have been or will be lost.
The long-term demand for coal has fallen with energy industry sources blaming governmental regulation, international climate agreements, alternative energy production, supply and demand pressure as the culprits. The US Energy Information Agency (EIA) estimates that U.S. coal production in the Western region will decline by 20% in 2016.
Farmington NM has recently been named as the “Fastest Shrinking City in the US” and general economic trends in the NW NM region are not heading in the right direction.
Coal has been an important resource and job creator Northwest New Mexico for 160 years, coal brought the railroad through the area which became Gallup in 1881 and has been important to the economy ever since, and even today it figures significantly into our economy. Oil and gas resources produced from the San Juan Basin have been economic drivers in the region since the 1980’s.
Coal mine, rail road, power plants and energy related jobs support families, as well as, every type and kind of business in our communities and region. The products which are produced from them are sold outside of this market and, therefore, bring outside money into our economy and also result in the creation of support and other jobs in the local area. So as a net benefit of these jobs we get relatively high wage jobs that bring new money into our area and result in the creation of numerous support jobs; all of which are directly related to the coal and energy industry.
As of 2010 coal mines and coal-fired power plants on the Navajo Nation, as well as lands shared with the Hopi, accounted for 1,500 jobs and were a third of the tribe's annual operating budget, the largest source of revenue after government grants and taxes.
The COG’s new Economic Development Program Manager David Hinkle, was assigned to lead the POWER project, and has just finished his first full quarter of work, including numerous stakeholder meetings and consultations, hiring a consultant firm, and promoting the project in the region.
Commenting on the challenges to the region’s economy, Hinkle said, “In Northwest New Mexico everyone is effected in some way by the mining and energy industries, either you have family working in it or they are your customers. There are no easy answers to the economic problems NW New Mexico is facing. Working with the economic development organizations, local governments and individual citizens we are trying to get ahead of the trends; and so, first we are going to work to take care of the industries and jobs we have now (including the energy and coal jobs), we are doubling our efforts in helping people to start their own businesses, while working to bring targeted and responsible new industries here and always working at improving promotion of our tourism and recreation assets to outside visitors.”
The Northwest New Mexico Council of Governments is using the resources of a federal EDA “POWER” grant and working with partners in our region to create jobs replacing those energy and coal jobs that have been or will be lost.
The long-term demand for coal has fallen with energy industry sources blaming governmental regulation, international climate agreements, alternative energy production, supply and demand pressure as the culprits. The US Energy Information Agency (EIA) estimates that U.S. coal production in the Western region will decline by 20% in 2016.
Farmington NM has recently been named as the “Fastest Shrinking City in the US” and general economic trends in the NW NM region are not heading in the right direction.
Coal has been an important resource and job creator Northwest New Mexico for 160 years, coal brought the railroad through the area which became Gallup in 1881 and has been important to the economy ever since, and even today it figures significantly into our economy. Oil and gas resources produced from the San Juan Basin have been economic drivers in the region since the 1980’s.
Coal mine, rail road, power plants and energy related jobs support families, as well as, every type and kind of business in our communities and region. The products which are produced from them are sold outside of this market and, therefore, bring outside money into our economy and also result in the creation of support and other jobs in the local area. So as a net benefit of these jobs we get relatively high wage jobs that bring new money into our area and result in the creation of numerous support jobs; all of which are directly related to the coal and energy industry.
As of 2010 coal mines and coal-fired power plants on the Navajo Nation, as well as lands shared with the Hopi, accounted for 1,500 jobs and were a third of the tribe's annual operating budget, the largest source of revenue after government grants and taxes.
The COG’s new Economic Development Program Manager David Hinkle, was assigned to lead the POWER project, and has just finished his first full quarter of work, including numerous stakeholder meetings and consultations, hiring a consultant firm, and promoting the project in the region.
Commenting on the challenges to the region’s economy, Hinkle said, “In Northwest New Mexico everyone is effected in some way by the mining and energy industries, either you have family working in it or they are your customers. There are no easy answers to the economic problems NW New Mexico is facing. Working with the economic development organizations, local governments and individual citizens we are trying to get ahead of the trends; and so, first we are going to work to take care of the industries and jobs we have now (including the energy and coal jobs), we are doubling our efforts in helping people to start their own businesses, while working to bring targeted and responsible new industries here and always working at improving promotion of our tourism and recreation assets to outside visitors.”
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Regional Economic Assessment & Strategy
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Important Documents
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Prewitt Industrial Cluster
A major initiative and outgrowth of COG's work with coal-effected communities and regional report above, is the Prewitt Industrial Cluster. This was a proactive approach to get ahead of the market impacts effecting our coal products value and build on regional assets and economic anchors in the counties of Cibola and McKinley.
Background: House Memorial 41 passed in the 2018 Legislative Session, sponsored by Rep. Harry Garcia. This legislation built on the 2017 House Memorial 72 surrounding the support, retention, and possibilities of expansion and job creation in the bi-county area of Prewitt, NM based on anchor businesses of Prewitt Escalante Generating Station, Lee Ranch and El Segundo coal mines, and Bio-Pappel.
Under the direction of this legislation, Cibola and McKinley counties applied and secured $50,000 each in NM Finance Authority funding to study and deliver a report that included targeted industry studies, workforce assessment, supply chain analysis, best fit industries, and a site master plan.
Report: The two counties commissioned the Northwest NM Council of Governments (COG) to facilitate the process.
The COG reconvened the HM72 leadership team created in 2017 that drove the process, including hiring Foote Consulting Group (FSG).
FSG delivered four stand-alone reports that together meet the intention of the legislation and provide an excellent framework
for moving forward on researched and targeted opportunities. Below are copies of those reports.
Background: House Memorial 41 passed in the 2018 Legislative Session, sponsored by Rep. Harry Garcia. This legislation built on the 2017 House Memorial 72 surrounding the support, retention, and possibilities of expansion and job creation in the bi-county area of Prewitt, NM based on anchor businesses of Prewitt Escalante Generating Station, Lee Ranch and El Segundo coal mines, and Bio-Pappel.
Under the direction of this legislation, Cibola and McKinley counties applied and secured $50,000 each in NM Finance Authority funding to study and deliver a report that included targeted industry studies, workforce assessment, supply chain analysis, best fit industries, and a site master plan.
Report: The two counties commissioned the Northwest NM Council of Governments (COG) to facilitate the process.
The COG reconvened the HM72 leadership team created in 2017 that drove the process, including hiring Foote Consulting Group (FSG).
FSG delivered four stand-alone reports that together meet the intention of the legislation and provide an excellent framework
for moving forward on researched and targeted opportunities. Below are copies of those reports.
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| Prewitt Master Site Plan |
Progress: Over the last several years, McKinley County has entered into a lease with State Land Office to continue planning for the Prewitt Industrial Park. Through $190,000 provided by area Legislators and matching funds from Economic Development Administration's Assistance to Coal Communities, the Project Team has been able to finalize the Prewitt Industrial Park Master Plan & Design including 30% design on infrastructure and park build-out and a 90% design for a 120,000 square foot spec-building.
Find out more on the Prewitt Industrial Project tab under Feature Projects or click here.
Find out more on the Prewitt Industrial Project tab under Feature Projects or click here.
House Bill 8 Authority
In the 2019 Legislative Session, based on the announcement that Tri-State Generation and Transmission Association, Inc. decided to shut down Escalante Generating Station in Prewitt, NM by December 2020, a bill was passed authorizing the creation of a special district and regional authority to focus on redevelopment; asset recycling; and business retention, expansion and attraction to replace tax and quality jobs for the bi-county economy. On December 8, 2020, McKinley County Commission adopted an ordinance to create the McKinley County Energy Generation Facility Economic District and appointed inaugural members namely Rhonda Mitchell, Bill Lee, Tony Tanner, Anthony Dimas, Jr., and Marvin Magee. Click here to find out more.
