MARCH, 2002
INDUSTRY BRIEFS

California Mining 2002:
Solid as a Rock

Denise
M.
Jones

CMA Executive Director

The CMA's annual conference brings together the top professionals of California's mining community, this year on May 22-24 at the Resort at Squaw Creek near Lake Tahoe. The opportunities for education, networking, company recognition and promotion, and socializing have never been better... for all the details, see Solid As A Rock in this newsletter

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2002 Fatalities Alarm Industry
There appears to be a significant increase in mine fatalities across the nation: ten fatalities in January alone, seven at metal/nonmetal mines. For the same time period in 2001 there was only one fatality. Now is a good time to review these accidents on the MSHA site and use the lessons learned to reinforce safety practices throughout operations.

TRI Lead Guidance Available
Toxics Release Inventory reporting thresholds for lead and lead compounds have been lowered to 100 pounds. EPA has finalized a guidance document developed to help facilities comply with the new rule. This document is available on-line.

The BLM is Back Online
After a two-month hiatus, the BLM is back online at www.blm.gov. The court ruling over the DOI's services regarding Indian Trust management systems that shut down the BLM's Internet connection in December, 2001 has been resolved to the point that the agency has been reconnected.

CMA NEWS

It Takes a Mine to Build a Car
(And roads. And bridges. And auto factories... And...) CMA members met with state officials at the Association's 2002 Government Reception focusing on transportation and infrastructure. Held at the Towe Ford Auto Museum, the reception was well attended with over 150 people stopping and discussing issues throughout the night. Industry members had the opportunity to discuss issues with important government officials including Keith Olberg and Assemblymember Phil Wyman. In addition, several candidates for next year's general election dropped by to visit with industry.

Thanks for the Pucks, Graniterock
CMA member Graniterock donated 150 asphalt pucks for a special 2002 Government Reception invitation package. The pucks were cut in half, labeled and hand-delivered to legislative and committee staff along with It Takes a Mine to Build a Car.... And Roads invitation cards. A "roadworthy" symbol of mining's role in the state's infrastructure.

Save the Dates:
2002 CMA Annual Conference

May 22 - 24, 2002

Make Travel Plans: Resort at Squaw Creek

Olympic Valley, California
(800) 327-3353 or (530) 583-6300

Resort at Squaw Creek

Meetings and Events

The Members Only section of www.calmining.org offers members up-to-the-minute information on meeting dates and times, meeting minutes, and other member services.

IN THIS ISSUE

Flood of Prop 65 Suits Reduced to a Trickle

Industry Impact: Mass mailings of Prop. 65 60-Day Notices created quite a stir among California businesses last December but none of the notices issued to mining companies had merit and it now appears that few are being seriously pursued. The mass mailing effort to avoid Prop 65 reforms effective Jan.1, 2002 may give weight to critics who want to see further reforms in the law.
CMA Action: CMA actively worked with members, industry groups and met with the Attorney General's office in an effort to educate companies of their options and provide guidance. A Prop 65 TuneUp Kit for CMA Members is being developed and will be available shortly.

Read CMA's letter to Attorney General Bill Lockyer on this subject at www.calmining.org

MSHA Action Plan Announced

Industry Impact: A major move in the right direction, if implemented as conceived.
CMA Action: CMA Safety Committee Chair Will Davis of Homestake Mining congratulates Lauriski's "attempt to refocus MSHA's efforts to assist mines, and especially small mining operations, in promoting the safety and welfare of their workers. Industry looks forward to a less adversarial and more consultative approach to working with the agency for the benefit of our workers."

MSHA Assistant Secretary Dave Lauriski presented his draft action plan for the agency to industry representatives this month. Lauriski recognizes that, since 1994, the U.S mining fatality rate has essentially plateaued under intense focus on enforcement by MSHA. Lauriski's plan is to shift efforts to become more proactive, less reactive, and create a better balance of enforcement, education, and training. Highlights of the plan include:

  • Conduct focused enforcement based on a mine's accident history.
  • Focus on high incident rate mining operations.
  • Mines with 5 or fewer employees have a fatal injury rate 8 times higher thanlarger operations. Develop a small mine initiative/office within MSHA.
  • Develop modern training materials and make them available on the internet
  • Expand MSHA web site to include equipment design.
  • Recognize mines with excellent safety programs and processes.

Gnatcatcher and Fairy Shrimp Critical Habitat Overturned

Industry Impact: A huge victory for the industry in establishing realistic financial analyses of the effect of designating critical habitat and a reprieve for Southern California mining operations.
CMA Action: The Association collected information from members on anticipated economic impact in support of the appeal.

A new analysis of the economic effects of setting aside more than 500,000 acres in California to protect the threatened California gnatcatcher and San Diego fairy shrimp has been ordered by U.S. District Judge Stephen Wilson. Wilson's ruling that the economic impact of the restrictions was not fully considered affects more than 513,000 acres for the gnatcatcher and more than 32,000 acres for the fairy shrimp.

The judge will not rule on whether existing protections would stay in place until a revised economic analysis and new habitat designations are completed in 2004 until he receives additional written arguments from the U.S. Fish and Wildlife Service and an environmental group.

The U.S. Justice Department attorney representing the Fish and Wildlife Service has already indicated that "the gnatcatcher and fairy shrimp will not suffer harm if the habitat were vacated."

A number of CMA member companies operate on lands designated in Los Angeles, Orange, San Diego, San Bernardino and Riverside counties as critical habitat for the gnatcatcher, and in Orange and San Diego counties for the fairy shrimp.

Bush Appointees Boost Western Presence in Washington

Industry Impact: In reviewing the appointments of the Bush administration, it is clear that the President has made a dilligent and necessary effort to include Western representatives within the administrative process.
CMA Action: The CMA is tracking key Bush administration appointees on the Association website. For the complete picture on the status of all high level Bush administration appointments, go to http://www.appointee.org/

The US Senate confirmed Steven A. Williams recently as the new leader of the Interior Department's Fish and Wildlife Service. Williams, who was serving as secretary of the Kansas Department of Wildlife and Parks when he was nominated July 18 by President Bush, takes over the federal agency charged with conserving and protecting fish, wildlife, plants and their habitats.

Williams' confirmation as head of Fish & Wildlife fills the last agency appointment of greatest interest to the mining industry. Encouraging to CMA Executive Director Denise Jones is evidence that "there has been a concerted effort to ensure that the people of the Western states have a voice, not only through elected officials, at the upper levels of those Federal agencies making land decisions that effect the West more than any other part of the nation."

Western Bush appointees include Gale Norton, Secretary of the Interior, from Colorado, Forest Service Chief Dale Bosworth and Craig Manson, Assistant Secretary of the Interior for Fish, Wildlife and Parks, both Californians, and BLM Director Kathleen Clarke of Utah.

Yuba County Takeover Prompts Legislative Action

Industry Impact: AB 1878 (Leslie) proposes to extend the time frame that a local lead agency would have to address SMARA deficiencies from 45 days to 90 days after being notified of deficiencies by SMGB. The bill also gives the SMGB the option (rather than a requirement) to take over lead agencies functions.
CMA Action: CMA is evaluating the ramifications of the SMGB's takeover of Yuba County's lead agency role and continues to advocate industry concern over this action.

The State Mining and Geology Board's recent decision to take over SMARA lead agency functions in Yuba County has prompted introduction of a bill to remedy some procedural concerns, as well as protests from the CMA and industry interests.

AB 1878 would extend the time frame that a local lead agency would have to address deficiencies from 45 days to 90 days. This brief extension of the time allowed to correct deficiencies is needed as some noted deficiencies involve environmental review and other administrative processes which have long public review periods.

The bill also allows the SMGB the discretion to recognize that deficiencies caused 20 years ago are not an automatic trigger which require the Board to step in. This change is highly desirable, as it ensures that historic local agency actions will not become the basis for current state action. Click here to read AB 1878.

The takeover of Yuba County marks only the second time a county has been involuntarily taken over by the SMGB. During a recent CMA permitting seminar, SMGB member John Parrish noted that it was not the desire of the board to take over lead agency authority. The Board felt that if it made any of the specified findings under SMARA, and they were not remedied, the board had to take over authority.

Yuba County may judicially appeal the decision but has not done so yet. In a letter to the SMGB, CMA Executive Director Denise Jones expressed concerns that the findings of the board seem to be based on evidence insufficient to make the findings leading to takeover.

Calaveras Cement Earns 50-year Permit Approval

Industry Impact: CMA member company finds success with proactive approach to reclamation planning, spending nearly four years of site investigation and planning to permit the longest period of mining that reserves analysis and engineering would allow.
CMA Action: CMA Executive Director Denise Jones spoke in support of the project at the Shasta County Planning Commission hearing, complimenting the quality of the reclamation plan and Calaveras Cement's integrity and long-term commitment in the community.

On December 13, 2001, the Shasta County Planning Commission unanimously approved an updated reclamation plan for Calaveras Cement's Gray Rocks Quarry to the year 2050, the longest period of such approval in recent County history.

"We are very pleased," said James Ellison of Calaveras Cement, "that the Commission recognized the high level of engineering and planning effort and expense invested in this exercise by granting a corresponding permit."

Calaveras Cement's Gray Rocks Quarry, located approximately 12 miles north of Redding, has operated since 1960, supplying limestone for its Redding cement plant. This operation has produced the majority of cement used in construction in the region for the past 40 years. A permit update for Gray Rocks Quarry was needed because mining is continuing beyond the limits specified in its original 1978 reclamation plan. The Department of Conservation did not support a 50-year approval but could not provide a legal basis for the opposition.

Congressional Staffers Tour Desert Mines

Industry Impact: Top level Congressional staff learned first-hand about the mineral values, history and current practices of mining in the California desert -- the most highly mineralized region in the world.
CMA Action: The CMA co-sponsored the tour with the National Mining Association and the Gold Institute, and will continue efforts to educate Washington on Western mining issues.

Sixteen legislative analysts and other top level Congressional staff accompanied CMA staff and members on a tour of Molycorp's Mountain Pass Mine and Viceroy Gold's Castle Mountain Venture last month. The day-long tour originated in Las Vegas and included highlights of reclamation efforts at Castle Mountain and environmental efforts at Mountain Pass.

A miner's eye view Congressional Tour "up-close" with desert mining
Members Take Advantage of CMA Opportunities

The first quarter of 2002 offered CMA members valuable educational, training and networking opportunities.

  • Meeting with Government Officials, Jan. 30, San Jose: An afternoon of inside information, direct from new Bush appointees at US Dept. of the Interior, BLM, US EPA Region IX, and the US Dept. of Energy.
  • Environment Committee Meeting, Jan. 31, San Jose: Subcommittees reported on active work affecting a wide range of industry issues including Prop 65, Environmental Justice, SMARA Regulations, wetlands mitigation and endangered species act reforms.. Click here for the complete meeting minutes on the Members Only page at www.calmining.org.
  • Mine Permitting in California II and 2002 Mineral Property Tax Assessment Seminars, Feb. 20, Burbank: The CMA sponsored solid information on permitting and tax assessment at these two concurrent sessions. Copies of the presentations offered at both sessions are available:
  • Attendees of the Burbank seminars enjoyed at tour of CMA member CEMEX' Moore Park operation. This site has been mined since 1948, and a recent approval by Ventura County would allow a maximum annual production of over 3 million tons for 50 years. When the site was approved, aggregate reserves in Ventura County were almost depleted making this site extremely important for County infrastructure development.

Watch this newsletter and calmining.org for more membership value from CMA in Q2, Q3 and Q4!

CMA seminar participants tour CEMEX' Moore Park quarry.
Solid as a Rock
Denise M. Jones, CMA Executive Director

It's time to plan your trip to California Mining 2002: Solid as a Rock, May 22-24 at the Resort at Squaw Creek near Lake Tahoe. This annual event brings together the top professionals of California's mining community. The opportunities for education, networking, company recognition and promotion, and socializing have never been better.

This year's conference includes a slate of quality sessions presented by industry leaders. You will leave this event with beneficial information and guidance that will have an immediate value to you back on the job. Whether you work in mining, provide services to the industry, or are a public servant with responsibilities in this arena, you will benefit from attending California Mining 2002.

The program includes a panel of state and federal experts on Homeland Security, and a CEO panel with presentations on the "Value of Minerals in our Society" as well as "Navigating Growth in a Time of Economic Uncertainty."

The CMA has created a one-of-a-kind hands-on information and training session, "Protecting Your Company's Reputation During the First Golden Hour of a Crisis," designed to help you safeguard profitability and productivity by providing specific training to respond to community and media inquiries in an emergency or controversy.

An entire breakout session will focus on "Building Effective Relationships with Regulators" and another session will teach you about "Paying for the Crisis and Communicating with Your Employees." Other educational opportunities will focus on "Mining's Legacy" including abandoned mines and successful closure and "Mining's Future" with discussions on Sustainability, Reclamation Trends and Moving from Confrontation.

All this at a five star resort nestled in the beauty of the Olympic Valley near Lake Tahoe.

END