The Federal government and private corporations involved in energy production are placing great emphasis on the strip-mining of vast coal reserves. The Navajo Nation, whose lands contain 20 billion tons of low-sulphur coal, sells vast quantities of its natural resources for use in the urban centers of Arizona and southern California. However, the benefits will not be of sufficient magnitude to significantly alter the Navajo economy. Approximately $10 million will enter the Navajo economy each year from energy-related industrial activities, whereas $380 million would be needed annually to raise the Reservation standard of living to the national average. Navajos are essentially in the same economic position, in several respects, as the residents of Appalachia. The Navajo Nation, unlike the residents of Appalachia, is seen as a resource owner with contracting, law-making, and policy-making powers. However, decisions made by the Navajo Nation invariably are subject to Federal review, and this special relationship to the Federal government renders the Navajos semi-autonomous at best. This relationship sets the Navajos apart from the people of Appalachia in that the Navajos are a semi-sovereign political, legal, and social entity with expectations of full economic development. Yet, the Navajo Nation's economy continues to be severely underdeveloped in comparison to national economic averages. (Author/NQ)