Indians Vs. Miners

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Complicating efforts to settle the water dispute is its sordid history. The initial deals between Peabody and the Hopi during the 1960s, on much worse terms than similar deals elsewhere, were negotiated by a lawyer, John Boyden, who died in 1980. He claimed to represent the controversial tribal council of the day, which paid him a $1 million fee--even as he secretly represented Peabody's interests. Says University of Colorado law professor Charles Wilkinson: "It's as outrageous a scenario as we've seen in Western resource development."

Peabody's current management says it wants a deal that is fair to all parties. To achieve that, however, Palmer says, "we need help from Congress and the White House." In both places, Peabody should be able to command a respectful hearing. It contributed $250,000 to the Republican National Committee during the 1999-2000 campaign, and Engelhardt gave $100,000 to the Bush-Cheney Inaugural fund.