MARCH, 2003
INDUSTRY BRIEFS

LEGISLATION TO WATCH

SB 218 (Sher)

CMA bill reviewers are looking over this legislation, which removes the ability of the State Mining and Geology Board to request mineral classification surveys from the Department of Conservation. However, industry retains the right to request and pay for such identification.

SB 649 (Kuehl)

The bill introduced Feb. 21 would double the SMARA fee cap from $2,000 to $4,000 and add a cost of living component to ensure future adjustment.

The legislation also creates and funds an abandoned mine remediation program with a $5 per ounce fee on precious metals produced in the state.

It also makes changes to 3098 list requirements mandating that cities and counties purchase materials only from companies on the list.

CMA welcomes member comments. Click here to register your opinion on these bills.

State Budget Crisis and Mining

Everybody is acquainted with the state budget crisis, but how it will impact the legislature is still cloudy. CMA warns that all industries -- including mining -- can expect bills asking for increases paid to state administrative agencies.

For instance, AB 10X (Oropeza) would remove the cap on Water Board fees, which doubled just last year. The bill has passed both Assembly and Senate and is enrolled to the governor. It also increases specified air permit fees unlikely to impact mining.

CMA will continue to provide updates on measures like these as they move through the legislature and the administrative process.

Member News

New Members:

Mark Savit
Patton Boggs LLP
2550 M St. NW
Washington DC 20037
(209) 457-5269
(209) 457-6317
Faxmsavit@pattonboggs.com

Law firm concentrating on natural resources law and regulation with emphasis on mine safety and health, protected species, public lands and occupational safety laws.

Brad Kordic
Shaw Environmental Inc.
4005 Port Chicago Hwy.
Concord, CA 94536
(925) 288-2184
(925) 288-0888 Faxbradford.kordic@shawgrp.com

Joins New Firm

N. Thomas Sheahan, formerly of Dames & Moore and URS, has joined the firm of Geomatrix Consultants Inc. as vice president and principal hydrogeologist and has opened a new office for Geomatrix in Corona.

N. Thomas Sheahan, RG, CEG, CHG, RGP, CPG
Geomatrix Consultants Inc.
250 E. Rincon St., Ste. 204
Corona, CA 92879
(909) 273-7400
(909) 273-7420 fax Faxtsheahan@geomatrix.com

New Address:

Malcolm Weiss
Jeffer, Mangels, Butler
& Marmaro LLP

1900 Avenue of the Stars
17th floor
Los Angeles, CA 90067
(310) 712-6822
(310) 203-0567 fax
mweiss@jmbm.com

Corporate News

Shaw Environmental & Infrastructure (Shaw E&I) is part of the Shaw Group, Inc, a $3.2 billion firm headquartered in Baton Rouge, LA. Shaw E&I was formed in 2002 as a result of the integration of Stone & Wester Environmental and most of the assets of the IT Group. Shaw E&I has a staff of nearly 6,000 employees in 90 offices located throughout the country and abroad. Annual revenues are approximately $1.2 billion. Shaw E&I provides innovative solutions for environmental and infrastructure projects worldwide. The company supports clients throughout all phases of a project, from planning and permitting through design, construction, operation, demolition, restoration and redevelopment. Clients include the federal government, commercial industry and municipalities.

Annual Conference Seeks Award Entries

Excellence in Reclamation--(click here for entry form)

Did your organization complete reclamation of a mine site in 2002, or do you know someone who did? Did you have a reclamation plan modified or a new plan approved in 2002?

If either answer is “yes,” CMA asks you to consider nominating the project for the 2002 Excellence in Reclamation Award. It’s a chance to showcase your dedication to responsible reclamation by your company or another project you nominate and to share your success and techniques with others in the mining community.

Excellence in Community Service-- (click here for entry form)

This award exemplifies dedication to the local community and provides an opportunity to share yet one more way your mine benefits your community.

Categories for consideration include civic, education, environmental and public improvement projects. Examples include sponsorship of local sports or youth groups, participation in sponsorship of schools or local educational events, adopt-a-highway programs, habitat improvement off the mine site, improving local parks, libraries, etc.

Programs must have been conducted during the calendar year of Jan. 1 to Dec. 31, 2002.

Safety Awards--(click here for entry form)

Member companies in five size categories compete annually for the Safety Award that recognizes achievements and improvements in safety ratings.

Categories of company sizes range from extra small (1-15 employees) to small (16-35), medium (36-90), large (91-150) and extra-large (151 plus) operations.

Deadline for all award entries is April 15, with winners to be announced at the May 21-23 Annual Conference in San Diego. For more information, call Adam Harper, CMA association manager, (916) 447-1977.

Women in Mining
California Chapter

Women in Mining Golf Tournament

Invitations are out for Women in Mining’s Sixth Annual Benefit Golf Tournament at Spring Valley Lake Golf Course. Click here for more information.

This is the only California Chapter fund-raiser, which supports their important educational work.

Meeting
Announcement

Annual Meeting
March 26th, 2003

Dinner Meeting: 5:30PM
Domingo's Restaurant
27075 Twenty Mule Team Road
Borno, CA 93516
(760) 762-6226

Please RSVP to Tina Sentner at tsentner@calportland.com
or (626) 852-6265
no later than March 24th


IN THIS ISSUE

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OPR Revisits ‘Sacred Sites

An Office of Planning and Research “Sacred Sites Concept Paper” could lead to a more balanced policy.

If the Office of Planning and Research (OPR) concept paper generates meaningful discussion of sacred sites and other tribal cultural resources—and develops protective measures when needed-- it’s a big step up from the extremes of SB 1828 legislation.

That bill vetoed by Gov. Davis would have given Native American tribes veto authority over any CEQA project simply by declaring it would impact a “sacred site.” The OPR paper, on the other hand, addresses four types of resources. They are:

  • Sacred sites where tribes conducted religious activities or sites associated with creation myths and fundamental to the religion
  • burial sites with protective laws but where concerns are still raised
  • archaeological sites where no concerns are raised with OPR
  • gathering sites which existing law may not protect.

Of special concern for OPR is assurance of confidentiality of the sites and of increased access to them. Industry can support confidentiality measures but also needs certainty for industry and assured identification of the tribe involved before millions are spent and a late “cultural concern” is raised.

The Association is optimistic that results of the discussion initiated by the governor and OPR will lead to a balanced policy, which will protect Native American culture and privacy and ensure the processes industry needs to contribute to the state’s economic growth.

CMA Action: Response to the OPR paper provides information on mining and identifies industry concerns over the need for a stable regulatory framework.

Save May 21-23 for CMA Conference

Mark your calendar for the May 21-23 annual California Mining Association Conference, Mining: California's Adventure, in San Diego at the Hilton San Diego Resort.

It’s not only a spring break for attendees but also a promise to lift the spirit and reduce the knowledge gap on new challenges for mining in California.

Ever wonder what it’s like for a company from another state opting to do business in California? You will hear about it when Drew Meyer with Vulcan Materials Company in Birmingham, Alabama, and Steve Cortner, Vulcan Materials Western Division, hash over what it takes to be successful as a major business stepping into the Golden State market.

Other hot topics address a successful strategy for permitting a mine in California, the ins and outs of environmental litigation, Ben Licari will be doing a presentation on backfilling and will show examples of benefits of not backfilling, and a search for reform in the Endangered Species arena and recent Endangered Species Act cases.

Sessions are scheduled on safety issues, such as the costs of mining injuries and an innovative approach to annual refresher training. Plus get an update on major issues of concern in the “Where are they now” session where you will be updated on hot topics concerning the mining industry. You will also hear case studies such as the River Park Project and the Fish Creek Riparian Corridor Realignment.

The closing luncheon will feature Nick Nichols, Nichols & Dezenhall Communications Management Group, discussing “Rules for Corporate Warriors: How to Fight and Survive Attack Group Shakedowns.” Enjoy this entertaining talk designed to arm business executives who are under attack from environmentalist, consumer and trial lawyer activist groups with some of the tools they need and tips on how to fight back.

The annual banquet at SeaWorld and golf tournament are scheduled as opportunities for networking and relaxation. A special program of family activities is also planned. The Hilton San Diego Resort room rate is $129. Reservations must be made by April 28 by calling 800/445-8667.

If you are interested in becoming a sponsor click here for the sign-up form. Exhibit space is still available. Contact Stephanie Pridmore at (916) 447-1977 or spridmore@calmining.org for more information on the 2003 Annual Conference.

MAC Coalition Update

CMA joined with Southern California Rock Products Association (SCRPA) and the Construction Materials Association of California (CMAC) in the first-ever joint Environment Committee Meeting planned by the Mineral Association Coalition and sponsored by SCRPA.

Steve Bledsoe, SCRPA’s president, remarked: “I was thrilled at the camaraderie of the group and their focus and attention on the issues that affect the industry instead of their own regional interests.” Activities included field trips to Vulcan’s Upland facility and Cemex’s Lytle Creek Plant, followed by a networking dinner and the committee meeting the next day.

Vulcan's Upland facility was a great example of successful mining in an urban/residential setting. Mining began in 1973 under a flood control permit, and included a series of several ground water infiltration basins. When development began to encroach upon the project, the company worked with the developer, the city, and the neighbors to make sure the housing was designed to reduce future problems. The neighbors (some as close as 50 feet to the quarry) even got to choose the type of screening vegetation that was used near their homes. “This is an excellent example of how working together with a community is the key to success,” said Rick Navarro, CMAC’s Environment Committee Chair.

Christine Jones led the group on a tour of the Cemex Lytle Creek Wash Facility, including a close-up of the new Reclamation Plan and recently completed dike built to protect future mining areas from stream erosion. Cemex has used a variety of innovative re-vegetation techniques which have enhanced the propagation of native species and provided a much more diverse habitat.

“Since this was our first joint meeting, we really didn’t know how smoothly things would go,” Said Ben Licari, CMA’s Environmental Committee Chair. 𠇊s it turned out, we were able to cover a comprehensive agenda that all the companies found useful and informative. I am looking forward to future MAC-sponsored meetings and taking advantage of the opportunity to share resources between the associations.”

SMGB Notice Hits Backfilling

A “notice of proposed rulemaking” by SMGB requiring backfilling of open pit metallic surface mines is a spin-off of Gov. Davis’ request to the Secretary of Resources to seek a remedy for the Glamis Imperial project when he signed SB 483 (Sher). The Sher Bill was nullified by last year’s veto of SB 1828 (Burton) and is moving through this year as SB 22. It requires backfilling on metallic operations within a mile of Native American sacred sites in the California Desert Conservation Area.

The SMGB rule exceeds that by proposing adoption of a statewide standard to backfill regardless of existence of an impact on resources. SMGB staff have indicated that even if SB 22 passes their regulatory action will not be modified to reflect its intent.

Environment Committee Chair Ben Licari has noted the regulation “unfairly burdens California metal mining with a rule that is not required anywhere else in the world, as far as I know.”

It is estimated the regulation could double the most significant cost of a mine by requiring backfilling and recontouring. CMA is disappointed that its comments did not spur adjustments to the regulation.

CMA Action: CMA encourages members to express concerns by noon, April 1, to John G. Parrish, Ph.D., executive officer, SMGB, 801 K St., MS 24-05, Sacramento, CA 95814.

Elementis: A Day for Kids to Remember

With saucer eyes and broad smiles, 6-year-old Thomas Lillard and his sister, Samantha, took their first ride in a huge 35-ton off-road haul truck.

The two were guests for the day at Elementis Specialties Mine in Newberry at the invitation of Mine Manager and CMA President Mike McGath. The truck ride and a chance to see an exciting mine blast from a distance were high points of a three-hour visit.

For Thomas, it was special fun and a chance to forget for a time that he visits Loma Linda University Hospital twice a month for blood tests and, when necessary, chemotherapy. He was diagnosed with leukemia at age 4, according to a report published in The Desert Dispatch.

The trip for the brother and sister was their first to a mine, thanks to McGath. He came up with the idea after the American Cancer Society gave Thomas a small toy dump truck during the society’s Relay for Life event in Barstow last summer.“

It set the light bulb going—‘Hey, why don’t we give them a ride in a real truck,’ ” McGath said. “I like kids, and I felt it would be an adventure for the children.”

Steve Miller, a supervisor at the plant, also had a personal interest in Thomas’ visit, because he was captain of the Elementis Relay for Life team participating in the American Cancer Society fundraiser in Barstow .

The CMA member company mines hectorite, a mineral used in paint, nail polish, makeup and deodorant.

Check New Rules for Explosives

New explosives laws will impact every quarry and mine purchasing or using explosives by requiring permits and a broad range of personal identification measures.

Under the Safe Explosives Act of 2002, a federal permit will be required for each purchase of explosives, and a new or renewed permit will require identification of actual “possessors” or users of explosives, according to an analysis by Mark Savit of Patton Boggs.

Fingerprint and photographic identification is also required for a broad range of “responsible persons,” including senior management officers and directors. Many non-US citizens and certain new categories of individuals are prohibited from obtaining explosives permits or controlling or possessing explosives.

An expanded list of those prohibited from using explosives was effective Jan. 24 and applies to aliens (with exceptions), persons dishonorably discharged from the U.S. armed forces and persons who have renounced their U.S. citizenship.

Effective May 24, 2003, all users of explosives will be required to have a permit or license. The law also requires reports of thefts to U.S. Alcohol, Tobacco, Firearms, and Explosives within 24 hours of discovery.

CMA Action: To access a detailed analysis provided by Patton Boggs, please click here. The law, background materials, forms and regulations for new requirements can be found at http://www.atf.treas.gov/.

Vulcan Joins Winners’ Circle

Vulcan Materials Company’s River Rock Plant in Fresno has received national recognition from the Wildlife Habitat Council for “outstanding contributions to wildlife habitat conservation.”

The River Rock site is at the center of the 22-mile San Joaquin River Parkway. Since 1988, Vulcan employees have played a vital role in wildlife habitat management programs for a 300-acre island protected area in the River Rock property.

Environmental education, bird counts, nature walks, teacher walks and community participation are integral components of the plant program, according to the Council award. Following mining and reclamation, Vulcan anticipates the site will become a permanent part of the 6,000-acre Parkway. Vulcan Western Division Reclamation Manager Doug Sprague highlighted this goal in his presentation at the award ceremony.

The River Rock Plant is the first in Vulcan’s Western Division to be certified by the Wildlife Habitat Council and was one of 130 sites recognized at the Council’s 2002 symposium.

Sign up for the CMA annual conference to hear this case being presented on Friday, May 23rd, in San Diego.

Vulcan produces industrial materials including construction aggregates and is a leading manufacturer of industrial chemicals.

END