PRAIRIE ISLAND INDIAN COMMUNITY, NSP REACH AGREEMENT ON STORAGE OF NUCLEAR WASTE NEXT TO COMMUNITY; Tribe to receive land for relocation and compensation; will support legislation ending search for alternative storage site off Prairie Island.

RED WING, Minn.--(BUSINESS WIRE)--Jan. 25, 1996--The Prairie Island Indian Community has reached an agreement with Northern States Power Company (NSP) over the storage of nuclear waste in metal casks next to the community. The agreement calls for the community to receive land and cash payments. In return, the Prairie Island Tribal Council announced that it will support legislation that ends NSP's search for an alternative storage site for the waste. Under current law, NSP is required to look for an alternative storage site for the casks in Goodhue County away from Prairie Island.

"This agreement does not mean we want nuclear waste stored on Prairie Island," said Tribal Council President Curtis Campbell, Sr. "We want it out of here and we will continue to push for a national repository for the waste. But the reality is that the casks are here, the plant is still running and the community is receiving nothing in return."

Campbell said the time was right to reach an agreement. "We recognized that a window of opportunity was open and we needed to move quickly before it closed.

"It was time to be pragmatic and realistic, and work out an agreement that was in the best interest of the community, NSP and the state," added Campbell. "We could no longer idly sit by while others made decisions about our future and the future of our children. We had to make sure the concerns and needs of our community were addressed. We believe this is the best agreement we could reach to provide options to our members and secure our future."

Under terms of the agreement, NSP will purchase 1,750 acres of land and give it to the tribe so the land can be put into trust for tribal members who wish to relocate. A joint commission made up of tribal members and NSP representatives will select and purchase the land. In addition, NSP will compensate the community for continued operation of the plant and storage of the waste. The compensation includes: a one-time lump-sum payment of $2,000,000; $850,000 per year for the operating life of the plant; $350,000 per year for the siting of the storage pad on Prairie Island and $53,000 per cask per year, for as long as the casks are at the plant. Currently, three casks filled with spent nuclear fuel are stored outside the power plant; state law allows for up to 17 casks to be stored on Prairie Island.

"This is a win win situation for everyone," said Campbell. "The tribal community gets much-needed land so we can provide options for tribal members who want to move away from the power plant and high-voltage power lines. The new land also will allow tribal members who, live off the reservation a chance to move to relocate and become part of a community with other tribal members. In addition, the economic assurances will help us provide security for future generations and give us the means to diversify our economic base and purchase more land."

The agreement is contingent upon passage of legislation that will be introduced next week. The legislation is needed to officially stop the re-siting process required by the 1994 law authorizing dry cask storage. The search for an alternative site has been controversial with residents in Goodhue County, who don't want the storage site moved to their communities. An Environmental Quality Board Citizens Advisory Task Force recently issued a report saying no acceptable sites have been found in the county and the storage should remain on Prairie Island.

The legislation also will allow NSP to explore the option of additional storage of spent fuel rods in the plant's storage pools. This will allow the plant to continue operating until its current license expires.

"This is an important development for NSP's customers and employees, the Prairie Island Tribe, our neighbors in Goodhue County and Red Wing, and indeed, the entire state of Minnesota," said Tom Micheletti, NSP vice president, public and government affairs. "These negotiations were difficult, but in the end we have what I, too, believe is a win-win situation. This agreement is good for NSP customers, for the tribe, for the environment and for our state. With passage of our compromise by the Legislature, all Minnesota can begin to focus its attention on Washington, D.C., where the nuclear waste problem really is."

In addition to offering land and compensation to the tribe, NSP will continue to monitor plant emissions and perform baseline studies and share that information with the tribe.

The agreement between Prairie Island and NSP was reached after several months of negotiations. The talks started at the request of the tribe and will continue beyond this agreement to address issues of mutual interest and concern to both Prairie Island and NSP, including roads, an improved sewer system and ongoing health studies and baseline data collection.

CONTACT: Shandwick USA

Eric Pehle

612/832-5000