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Recent Articles

Diplomacy the Watchword,
Ambassadors Converge on New Mexico

by Leland Lehrman

Holocaust or Hoax, The Global Warming Debate Heats Up

by Leland Lehrman

Gary King: "We Are All Constituents"
by Stephen Fox

The Hunting Fallacy
by Cyril Christo

Impeachment Limerick
Richard Arthure

What is a Culture of Peace?
by Louise Diamond

“Powerbrokers” (Legislative Leadership and Lobbyists) in Control of Conference Committee
by Stephen Fox

NM Senate Joint Memorial to Begin Process of Prohibiting Production of New Nuclear Weapons in New Mexico
by Leland Lehrman

Legislature is a “Brain Trust” to Accomplish All We Need in New Mexico
by Stephen Fox

The Two Faces of Richardson
The “Renewable Energy” and “Diplomacy” Governor Also Has a Cozy Relationship With the Nuclear Industry

Part 1 of an ongoing series on nuclear energy and public utilities in New Mexico
by Leland Lehrman

      Bill Richardson has made some excellent statements recently as part of his race for President, and trumpeted his achievements as Governor of the “Clean Energy State.” At a recent gathering of the Center for Strategic and International Studies (CSIS), he promoted global nuclear disarmament and then went further: “We need to stop treating diplomatic engagement with others like a reward for good behavior,” Richardson said. “The Bush administration’s refusal to engage bad regimes has only encouraged and strengthened the most paranoid and hard-line tendencies.” Richardson said other countries will not take the nuclear nonproliferation treaty seriously until the United States leads a global effort to reduce nuclear weapons, “including our own.” Finally, on creating peace in the Middle East: “Prisoner abuse, torture, secret prisons, renditions, and evasion of the Geneva conventions must have no place in our policy,” Richardson said. “If we want Muslims to open to us, we should start by closing Guantanamo.” This is good policy, and thank you Governor.

Richardson’s hosts and former business partners - CSIS luminaries such as Henry Kissinger and former Senator Sam Nunn - recently wrote an editorial for the Wall Street Journal promoting global nuclear disarmament: “Reassertion of the vision of a world free of nuclear weapons and practical measures toward achieving that goal would be, and would be perceived as, a bold initiative consistent with America’s moral heritage.”

But the real agenda may be to control and move nuclear fuel from warheads to nuclear power plants worldwide, and Governor Richardson has been a part of this plan since his time as Secretary of Energy, and perhaps even before. Kissinger and Nunn spell it out in their editorial:

“Steps would include...Getting control of the uranium enrichment process, combined with the guarantee that uranium for nuclear power reactors could be obtained at a reasonable price, first from the Nuclear Suppliers Group and then from the International Atomic Energy Agency (IAEA) or other controlled international reserves.”

Our story begins with the privatisation of the US stockpile of nuclear fuel rods,
formerly the property of the United States Department of Energy. According to Bill Althouse in an article for the Sun Monthly, “US Enrichment Corp (USEC), a company that enriches uranium for nuclear reactor fuel, was owned by the Department of Energy but was sold off in 1997 in the largest privatization deal in US history...Jeff Sterba, Vice President of USEC [and current President of Public Service Company of New Mexico (PNM)] noted, “USEC has a stockpile of about 24,000 tons of [the nuclear material] UF6. In return for that material, USEC made a commitment to ensure that its entry into the market is managed in a prudent manner.” Once the government turned over ownership of this stockpile, USEC immediately began dumping the inventory, raising millions while crashing the nuclear fuel market.
After the market collapsed, USEC was in financial trouble, but Richardson bailed out USEC by returning $630 million of the original proceeds from the government’s sale of the firm. The Bush administration’s General Accounting Office discovered Richardson’s bailout last year and put the deal on hold, saying Richardson was not operating within the law when he allocated the funds to USEC.”

The involvement of Bill Richardson and PNM Resources CEO Jeff Sterba in the privatisation of American nuclear fuel should give Americans reason enough to question Richardson’s “clean energy” boasts. And although the recent jump in New Mexico’s renewable portfolio standard to 15% by 2015, and 20% by 2020, was certainly a step in the right direction, Richardson continues to support nuclear energy. On Meet the Press, on May 27 Richardson said “it should be part of the mix,” and waved the national lab magic wand when asked about waste disposal: “I believe the answer is technology. What I would do is get our national laboratories to come up with a technological solution to dispose of this waste.”

At the 2004 Western Governor’s Association (WGA) North American Energy Summit in Albuquerque, Bill Richardson, then Chairman of the WGA was the keynote speaker and Jeff Sterba was the host committee Chairman. These two characters appear to move in lockstep and so New Mexicans might be alarmed by the fact that Mr. Sterba has just appointed a career nuclear energy executive, Jim Ferland to take over its generation division. Here’s the press release from PNM Resources:

“PNM Resources today announced the appointment of a new executive to head its expanding jurisdictional generation portfolio. Jim Ferland, who most recently served as vice president of Global Nuclear Field Services for Westinghouse Electric Co., will serve as PNM Resources’ senior vice president of Energy Resources…While at Westinghouse, Ferland led 1,300 employees in six separate business lines serving nuclear plants. Prior to Westinghouse, Ferland served as president and chief executive officer of Louisiana Energy Services and led the successful licensing of the first major new nuclear project in the United States in 20 years – the LES Uranium Enrichment Plant that is currently under construction in southern (Eunice) New Mexico.”

Sterba was very specific about his promotion of the nuclear energy industry in his 1999 speech while head of USEC: “Our commitment as a company is to ensure we do the best we can to meet our customers’ needs, not only for enrichment services but also for whatever else we can provide, as we work together to improve the prospects for the future of nuclear power in the United States and the rest of the world.

It seems that the fox is guarding the nuclear henhouse in New Mexico. Current New Mexico Secretary of the Environment Ron Curry was once the Strategic Environmental Director for PNM. Perhaps its therefore no surprise that on his watch the New Mexico Environment Department “missed a critical filing deadline” and was therefore “denied intervention” in the Eunice enrichment plant federal regulatory proceedings. The final settlement requires just the assurance of a “plausible strategy” for waste disposal. With Jim Ferland, the lead organizer of the Eunice licensing now officially in the PNM fold, joining former officer Ron Curry and current CEO Jeff Sterba, the prospects for increased nuclear energy development in New Mexico and the Four Corners region are high.

Leland Lehrman can be reached at (505) 982-3609 or leland.lehrman(at)gmail.com