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EarthWINS Daily #73
Mining-Exchange News & Information Service
2/3/96
Table of Contents: Spotlight on the Proposed WI Exxon/Crandon Mine
ACTION ALERT! Local Agreement Being Made Behind Closed Doors
1. Forest County, WI Board Members Draft Local Agreement in Closed
Session with Crandon Mining Company (Exxon & Rio Algom Ltd.).
2. Letter from Tom Ward, President of WRPC, Crandon Chapter
3. CMC and Forest County Negotiating Local Agreement in Secret
4. Re: Exxon mine
5. Manually retyped copy of draft copy of Local Agreement by Forest
County and Crandon Mining Company.
[Mining-exchange list-owner note: Hi everyone. I hope you'll forgive the
indulgence--this is my neighborhood we're talking about today. Good
example of what a local agreement can look like. Mining activists watch
out for these--they can short circuit years of work. Sorry this issue is
late. Record setting lows boggle electronics sometimes! Alice].
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ACTION ALERT! Local Agreement Being Made Behind Closed Doors
1. Forest County, WI Board Members Draft Local Agreement in Closed Session
with Crandon Mining Company (Exxon & Rio Algom Ltd.).
According to agendas received via Fax on February 2, 1996 from the Clerk
for Forest County, Wisconsin, the Mining and Finance Committees of the
Forest County Board have met in closed sessions:
On December 18, 1995 to discuss items concerning Local Agreement,
On December 28, 1995 to discuss items concerning Local Agreement, and
February 1, 1996 to deliberate regarding strategy to be adopted in
negotiating a Local Agreement with Crandon Mining Company and negotiations
with Crandon Mining Company.
Crandon Mining Company (CMC) is a Wisconsin general partnership comprising
subsidiaries of Exxon Coal and Minerals Company and Rio Algom Limited. CMC
is seeking permits to construct and operate a metallic sulfide mine
immediately adjacent to the Mole Lake Indian Reservation in northeast
Wisconsin.
Over its lifetime, the mine would generate an estimated 44 million tons
of acidic wastes. When metallic sulphide wastes have contact with water
or air, the result is sulphuric acids, and high levels of poisonous heavy
metals like mercury, lead, zinc, arsenic, copper and cadmium.
Half of the projected waste--rocky "coarse tailings"--would be dumped to
fill up the mine shafts. The other half of the waste is powdery "fine
tailings," which would be dumped into a waste pond about 90 feet deep and
covering 355 acres--
about 340 football fields in size.
Even Wisconsin's own Department of Natural Resources admits there have been
no successfully reclaimed metallic sulfide mines. Why should the the
citizens of Crandon and Forest County, Native American Tribes, and the
people of Wisconsin be an experiment for Exxon?
A statewide broad-based coalition of people, including environmentalists,
Native American tribes, sportsfishers, hunters, and business owners are
working together to protect Wisconsin from Exxon and Rio Algom. The Crandon
Chapter of Wisconsin Resources Protection Council has recently joined the
struggle.
Now, the Forest County Board is trying to negotiate a local agreement which
would enable CMC to avoid complying with county zoning codes and
ordinances.
Although the Mining and Finance Committees have allowed citizens to present
statements at their meetings, citizens have been barred from participating
in those committees' discussions about the local agreement and negotiation
with CMC on the local agreement. Despite opposition by Crandon citizens,
members of the Mole Lake tribe, and Forest County citizens, the Forest
County Board have drafted the local agreement in closed sessions.
The entire draft of the local agreement is included as the last entry of
this issue of EarthWINS Daily. Here are a few excerpts:
Page 7
"FOREST COUNTY PERMITS AND APPROVALS
The Project Area may be used for all Mining Operations and Forest
County hereby grants all the permits, approvals, variances and licenses
that state law or its ordinances do or may require for Mining, including
the permit described inWis. Stat. 86.16. During the terms of this
Agreement, the Forest County Zoning Ordinance, the Forest County Shoreline
Zoning Ordinance and all other Forest County ordinances and resolutions
which would otherwise apply to the Project Area, whether enacted in the
past or in the future, are expressly superseded by this Agreement and shall
not be applicable to the Project Area, the Mining Operation or the
Pipeline.
Page 8
FOREST COUNTY PARTICIPATION IN DNR HEARINGS
Forest County will support CMC's application for the Mining Permit
and other approvals needed for Mining, and will take no action that may
cause a delay in the permitting of the Mine."
Page 22
"PAYMENTS TO FOREST COUNTY
A. Commencing with the onset of construction, and during anticipated years
of mine operation, as well as during all phases of mine closure it is
anticipated that Forest County will incur substantial costs as well as
adverse impacts resulting in an increased need for government services; the
construction of needed public improvements, and rehabilitation of existing
County buildings and/or facilities or equipment. In consideration of the
foregoing the following payments shall be made to Forest County:
1. PAYMENTS IN LIEU OF OR IN ADDITION TO NET PROCEEDS TAX:
That commencing on December 1 of the calendar year in which all permits
have been granted to CMC and concluding with December 1 of the calendar
year in which the mine is closed CMC will pay to Forest County the sum of
$516,700 each such year,. . . "
"2. CONTRIBUTION TO COST OF CONSTRUCTION OF NEW COUNTY JAIL
FACILITY AND NEW COUNTY HIGHWAY SHOP:
A. That CMC shall finance the construction of a new Forest County jail
facility and 911 communication complex by granting to Forest County a loan
in the principal amount of $3,000,000."
"B. That CMC shall finance the construction fo a new Forest County Highway
shop by granting to Forest County a loan in the amount of $2,000,000."
Page 24
"RENEGOTIATION
A. Forest County may cause specific terms of this agreement to be reopened
for negotiation in the event CMC proposes a substantial modification of the
Mining Plan or the Reclamation Plan before approval by the DNR or under
Wis. Stats. 144.87, and if CMC puts the modification into effect after all
necessary state or federal approvals have been obtained.
B. For purposes of this Article, "substantial modification" means any of
the following:
1. Increasing production to an average of more than 6,500 tons of
ore per day;
2. Increasing employment during the Operating Period to more than
600 full-time equivalent employees whose ordinary place of work is at the
mine site or elsewhere in Forest, Oneida, or Langlade counties;
3. Increasing the discharge of treated water from the water
treatment plant to more than 3,000 gallons per minute;
4. Proposing to mine commercial quantities of uranium or thorium;
5. Reducing the low permeability soil bottom liners of tailing
management areas to a thickness of less than eight inches.
6. Decreasing production to less than 3,250 tons of ore per day.
Decreasing employment during the Operating Period to less than 300
full-time equivalent employees whose ordinary place of work is at the mine
site or elsewhere in Forest, Oneida, or Langlade counties."
Time is Short
The time to act on this is now. On February 7, a public announcement will
be posted for a public hearing regarding the local agreement. According to
one person who attended the February 1, meeting the Forest County Board
intends to hold the public hearing on February 27--the same day the as the
first tentative signing of the local agreement.
What you can do:
1. Please! Phone, fax, and write the Forest County Board. Voice your
concerns about the Board and its Mining and Finance Committees drafting a
Local Agreement with CMC in closed session. Tell the Board how you feel
about a local agreement that could result in 22 million tons of acid mine
drainage being dumped in tailings ponds at the headwaters of the Wolf
River, an Outstanding Resource Water.
Forest County Board
Crandon County Courthouse
200 East Madison St.
Crandon, WI 54520
PH: (715) 478-2422
FX: (715) 478-5175
Chairman: Erhard Huettl
Mining Committee Members
Paul T. Millan
Edward Piontek,Jr.
Gerald L. Voras
Michael S. Kane
Ray A.McGeshick
Chester Gryczkowski
Alton B. Ison
Finance Committee Members
Louis Yourchak
Edward Penasa
Michael S. Kane
2. Write, phone, fax, and email your concerns to Wisconsin
Senator Roger Breske and Wisconsin Representative Lorraine Serrati
Call the Wisconsin Legislative Hotline 1-800-362-9472, toll-free
To be connected to Senator Roger Breske or Representative Lorraine Serrati,
the Wisconsin legislators who represent the area where the proposed mine
would be located.
Tell the legislators how the proposed mine would impact your decisions to
vacation in northeast Wisconsin, move to Wisconsin, and/or locate your
business in Wisconsin.
Let Senator Breske and Representative Serrati know what you think about a
Wisconsin County Board that refuses to allow its citizens to participate in
negotiations with a mining company when the mine could have such a
tremendous impact on those citizen's lives.
Senator Roger Breske
P.O. Box 8953
Madison, WI 53708
(608) 266-2509
Representative Lorraine Seratti
P.O. Box 7882
Madison, WI 53707-7882
(608) 266-3780
Write letters to the Editor:
Mike Monte
Editor, Pioneer Express
Crandon, WI 54520
The Capital Times
1901 Fish Hatchery Road
Madison, WI 53713
4. Call Wisconsin Tourist Bureau, 1-800-432-8747, toll-free
Tell them how you'd feel about vacationing in northeast Wisconsin
if the mine were permitted.
5. Call or Write James Doyle, Wisconsin's Attorney General.
Ask if the Forest County Board was in total compliance with Wisconsin's
Open Meeting law when it met in closed sessions with Crandon Mining
Company.
Attorney General James Doyle
114 E State Capital Building
Madison, WI
608-266-1221
6. Voice your concerns to:
Governor Tommy Thompson
Madison, WI 53702
608-266-1212
Wisconsin Department of Natural Resources
Box 7921
Madison, WI 53707
608-267-7534; 608-266-2121
President Bill Clinton
Comment Line during working hours (9-5 EST)
202/456-1111, Fax: 202/456-2883,
E-mail: president@whitehouse.gov
The White House, Washington, D.C. 20500
Vice President Al Gore, Council on Environmental Quality,
202/456-6224, Fax: 202/456-2710,
E-mail: vicepresident@whitehouse.gov
The White House, Washington, D.C. 20500
7. EMAIL WISCONSIN CONGRESSMEN:
Feingold, Russell D. senator@feingold.senate.gov
Kohl, Herb senator_kohl@kohl.senate.gov
Roth, Toby roth08@hr.house.gov
And thank you for your efforts.
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2. Letter from Tom Ward, President of WRPC, Crandon Chapter
Tom R. Ward
FX: 715-478-2384
February 2, 1996
Dear Editor,
Last night (2/1/96) our Forest County board Mining & Finance committees,
by unanimous vote, agreed to meet behind closed doors to hammer out the
details of a local mining agreement with Exxon/Rio Algom Ltd. of Canada.
This decision to conduct public business in private was made despite
impassioned protest from local citizens. This was a sad night for freedom
of expression, and brings up the question: Whatever happened to our basic
concept of government of the people, by the people, and for the people?
Tom R. Ward
Wisconsin Resources and Protection Council (WRPC)
Crandon Chapter
Box 795, Rt.1
Crandon, WI
715-478-2384
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3. CMC and Forest County Negotiating Local Agreement in Secret
Date: Wed, 31 Jan 1996 08:15:27 -0600
To: wisc-eco@netcom.com
From: tjtynan@students.wisc.edu (Timothy J. Tynan)
Crandon Mining Company (CMC) and Forest County have been negotiating in
secret, confidential meetings regarding a local agreement. No one has a
draft of the local agreement,yet, on February 7th, a public announcement
will be posted for a public hearing regarding the local agreement. The
first tentative signing is Feb. 27.
This is terrible news, because it is one of the major green lights Exxon
needs before mining in the Northwoods. A local agreement with a township,
county, city or tribal government is an alternative to meeting all the
local zoning codes and ordinances. It is in effect for the life of the
mine and is a contract that will stand up in court.
This is not a rumor--this is hard fact. Forest County looks ready to go
ahead even before the draft EIS has been written by the Corps of Engineers
or the DNR. If you want to do something but are not a property owner in
Forest County, Senator Breske has an office down town and represents that
area. ( I don't know who the reps are). Also, if you know a way to
challenge either the closed meetings or the local agreement, please let me
know.
Tim Tynan
Mining Impact Coalition
WRPC Crandon Chapter
4. Re: Exxon mine
Date: Fri, 2 Feb 1996 04:05:56 -0600
To: wisc-eco@netcom.com
From: jlcatlin@students.wisc.edu (Jessica Catlin)
If you read Tim Tynan's update on the Crandon mine situation, please call
the state representatives from this area and express your concern about the
legitimacy of CMC's proceedings. The legislators are:
Senator Roger Breske, (608) 266-2509
Representative Lorraine Seratti, (608) 266-3780
If you haven't read his update yet, do so! Please ask these legislators
if there's any way we can stop CMC from passing its mine proposal behind
closed doors...Thanks for your help!
Jessica Catlin, intern
State Sen. Chuck Chvala's office
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5. Manually retyped copy of draft copy of Local Agreement by Forest County
and Crandon Mining Company.
Part 1 of 2 Parts
This Local Agreement ("Agreement") is entered into the _____ day of
October, 1995, by and between Forest County ("Forest County") and Crandon
Mining Company ("CMC").
Page 1
RECITALS
WHEREAS, CMC is a Wisconsin general partnership comprising
subsidiaries of Exxon Coal and Minerals Company and Rio Algom Limited; and
WHEREAS, CMC desires to construct and operate a metallic minerals
mine located in Forest County (the "Mine"); and
WHEREAS, CMC has submitted an applicating for a Mining Permit from
the Wisconsin Department of Natural Resources ("DNR"); and
WHEREAS, CMC has begun the process of obtaining all other necessary
approvals and permits for the Mine;
NOW, THEREFORE, in consideration for the promises herein exchanged,
Forest County and CMC make this Local Agreement under the authority granted
by Wis. Stat. 144.839.
Page 2
DEFINITIONS
In this Agreement:
"Citizens Advisory Committee" or "Committee" means the Committee
established by Article _____ of this Agreement.
"Construction Period" means the period which begins with the close
of the Permitting Period and ends when CMC first ships a commercial
quantity of metal concentrates extracted from the mine.
"Current Revenues" means funds received by Forest County in a
single calendar year.
"DNR" means the Wisconsin Department of Natural Resources.
"Extended Care Period" means the period which begins with the close
of the Reclamation Period and extends through the period specified by the
DNR in the Mining Permit.
"Local Agreement" means an agreement between CMC and one or more
local governments under the authority of Wis. Stat. 144.839.
"Mining" or "Mining Operation" means all or any part of the process
involved in the mining or removal of metallic minerals from the ground,
including but not limited to the extraction and beneficiation of metal
concentrates, the handling and treatment of water pumped from the mine or
otherwise affected by mining, the handling and disposal of mill tailings
and other waste generated by mining, the
Page 3
construction of roads, railroad lines and pipelines associated with mining,
the production of refuse, the mitigation of the effects of mining, and
every other activity associated with mining which may be subject to
regulation by Forest County.
"Mining Permit" means the permit issued by the DNR which is
required of all operators as a condition precedent to commencing mining at
a mining site, and includes any modifications to the Mining Permit
authorized by the DNR pursuant to Wis. Stat. 144.87.
"Mining Plan" means the proposal for the mining of the mining site
submitted by CMC to the DNR pursuant to Wis Stat. 144.85 (3) (a).
"Mining Site" means the surface area within Forest County which is
disturbed by the mining operation, including the areas occupied by
ancillary facilities such as those for water treatment, water movement or
discharge, implementation of DNR-approved contingency and mitigation plans,
administration offices, warehousing, maintenance shops, access roads,
railroad spurs, and tailings management, and all other surface areas on
which structures, equipment, materials and any other things used in mining
are located.
"Net Proceeds Tax" means the tax describe in Wis Stat. 70.375 et
seq. If Secs. 70.375 et seq. are repealed or replaced in any way by another
tax (such as a severance tax) after the effective date of this Local
Agreement, the term
Page 4
"Net Proceeds Tax" shall be interpreted to mean that replacement tax.
"Operating Period" means the period which begins with the close of
the Permitting Period and ends upon the earlier of (1) the cessation of
mining pursuant to a mining plan or modified mining plan approved by the
DNR under Wis. Stat. 144.85 or 144.87 or (ii) the abandonement of mining
under Wis. Stat. 144.815.
"Permitting Period" means the period which begins when this
Agreement is signed by both parties and ends when CMC begins construction
of the mine after receiving its Mining Permit and the written authorization
to mine required by Wis. Stat. 144.86 (3).
"Pipeline" means as much of the facility for transportating water
from the Mine to the Wisconsin River as lies within Forest County. The term
Pipeline includes, without limitation, pumping stations, outfall devices,
measuring devices and every other associated facility.
"Pipeline Route" means all lands in Forest County which are
necessary or convenient for the construction or maintenance of the
Pipeline.
"Project Area" means all of the surface area within Forest County
in which CMC has an ownership, leasehold or easement interest and which is
used or intended to be used in connection with Mining. The Project Area
includes but is not limited to the Pipeline Route and Mining Site, as the
Page 5
latter term is defined by Wis. Stat. 144.81 (8); surface areas which are
disturbed by the construction of, or which overlie, any pipeline used for
the handling or discharge of liquids; wetlands restored or to be restored
pursuant to the requirement of any state or federal rule or agency; areas
necessary or useful for the implementation of present or future contigency
or mitigation orders of any local, state, or federal agency; and areas
necessary or useful in the reclamation or long term care of the Project
Area pursuant to the requirements of any local, state, or federal rule or
agency.
"Reclamation Period" means the period which begins with the close
of the Operating Period and ends when the DNR issues a certificate of
completion of the Reclamation Plan for the entire mining site.
"Reclamation plan" means the proposal for the reclamation of the
mining site submitted by CMC to the DNR pursuant to Wis. Stat. 144.85 (3)
(b).
Page 6
SCOPE
This Agreement governs the Project Area. Legal descriptions of the
lands subject to this Agreement are set out in Exhibit A. where the names
of the legal and equitable owners of these lands are also to be found.
However, any inconsistency between Exhibit A and the definitions of the
Project Area, the Mining Site, or the Pipeline Route shall be resolved by
including the land in question within the scope of the agreement.
Page 7
FOREST COUNTY PERMITS AND APPROVALS
The Project Area may be used for all Mining Operations and Forest
County hereby grants all the permits, approvals, variances and licenses
that state law or its ordinances do or may require for Mining, including
the permit described inWis. Stat. 86.16. During the terms of this
Agreement, the Forest County Zoning Ordinance, the Forest County Shoreline
Zoning Ordinance and all other Forest County ordinances and resolutions
which would otherwise apply to the Project Area, whether enacted in the
past or in the future, are expressly superseded by this Agreement and shall
not be applicable to the Project Area, the Mining Operation or the
Pipeline.
Page 8
FOREST COUNTY PARTICIPATION IN DNR HEARINGS
Forest County will support CMC's application for the Mining Permit
and other approvals needed for Mining, and will take no action that may
cause a delay in the permitting of the Mine.
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When EarthWINS, Everybody Wins!
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Manually retyped copy of draft copy of Local Agreement by Forest County
and Crandon Mining Company.
Part 2
Page 9
ENVIRONMENTAL IMPACTS
CMC may not begin construction of the Mine or engage in Mining
until it receives a Mining Permit and the written authorization to mine
under Wis. Stat. 144.86 (3), and CMC shall thereafter comply with the terms
of this Agreement, the Mining Permit, and other applicable provisions of
state and federal law and regulation.
Page 10
FENCING
For the purpose of protecting the environment, safeguarding its
employees or the public, or securing its property interests, CMC shall have
the right to fence all or any portion of the Project Area during the
Permitting, Construction, Operating, Reclamation and Extended Care Periods.
Page 11
EMPLOYMENT
A. CMC will cooperate with Forest County and with appropriate area and
state agencies to develop and operate training programs for the skills that
CMC will need in constructing and operating the Mine and in reclaiming the
Project Area.
B. Applicants who have the skills needed by CMC and who attended a high
school located in, or who lived continuously for (1) year in Forest County,
or who have been residents or Forest County and while doing so have
attended Goodman High School in Marinette County will be preferred in CMC's
hiring decisions.
C. Thereafter, CMC will give preference to applicants who have the
necessary skillsand who have attended a high school located in Langlade,
Oconto, Marinette, or Oneida County.
Page 12
PERMANENT DISPOSITION OF THE PROJECT AREA
A. CMC will retain ownership of the Project Area at the close of the
Reclamation Period, and will dedicate to wildlife conservation as much as
the Project Area as is consistent with safety and its long-term care plan.
B. After the close of the Reclamation Period, CMC will retain the right to
withdraw any or all of the Project Area from its use for wildlife
conservation and to use any or all of the Project Area for prospecting or
mining, subject to the federal, state, and local laws and regulations then
in force.
Page 13
CITIZENS ADVISORY COMMITTEE
A. Forest County and CMC shall cooperate in creating and supporting a
Forest County Citzens Advisory Committee ("Committee"). Each community
which has entered into a Local Agreement with CMC may appoint two
representatives to the Committee, and they shall be known as Public
Members. The President of CMC or the designee thereof, and one other
representative of CMC to be appointed by its President, shall also be
representative of CMC to be appointed by its President, shall also be
representatives to the Committee. Each jurisdiction appointing one or more
Public Members and CMC shall have only one vote.
B. Each Public Member shall be paid a per diem of $20 for each Committee
meeting attended, not to exceed $500 per year, which payments shall be
funded by CMC.
C. All other expenses of the Committee, not to exceed $5,000 annually,
shall be funded by CMC. Expenses incurred in any calendar year in excess of
$5,000 shall be funded by equal assessments on Forest County and the other
governmental jurisdictions which have entered into the Local Agreement and
have appointed one or more Public Member. The CMC representatives shall
have no vote on assessment or expenditure questions.
D. At the first meeting of each calendar year, the Committee shall elect a
Chairperson, Vice-chairperson, Secretary, and such other officers as the
Committee shall determine by majority vote, and the terms of each officer
shall be one year.
E. The Committee shall meet monthly during the Permitting Period and four
times each year thereafter.
F. The Commitee shall adopt by-laws and provide by rule for its proceedings.
Page 14
G. CMC will furnish the Committee with copies of all reports that it is
required to make to the DNR or to any municipality with which CMC has
entered into a Local Agreement.
H. Upon request, CMC will permit a qualified technician designated by the
Committee or by any one of its member jurisdictions to observe CMC's
routine sampling of water entering the CMC water treatment plant, leaving
the CMC water treatment plant, or outalling to the environment from any CMC
water outfall pipeline.
I. Upon request, CMC will supply to the Committee or to any of its member
jurisdicitions shares of its routinely-taken samples of water entering the
CMC water treatment plant, leaving the CMC water treatment plant, or
outfalling to the environment from any CMC water outfall pipeline.
J. At least quarterly during the last year of the Construction Period and
the first year of the operating period, CMC will provide the Committee with
statistical data relating to its compliance with the EMPLOYMENT article of
this Agreement.
K. The Committee may review and consider any matters which it deems germane
to the Mining Operation or to its impact on the region, and may make
findings or recommendations which whichit shall promptly report to CMC, to
Forest County, and to all other entities which have appointed members.
Other activities of the Committee may include (but are not limited to) the
following:
1. Inspecting the Project Area and Mining Operations at reasonable
times and after reasonable notice to CMC;
Page 15
2. Receiving and reviewing complaints from any person about Mining
Operations;
3. Reviewing CMC's compliance with its Local Agreements;
4. Mediating and disagreements that may arise between CMC and any
jurisdiction which has entered into a Local Agreement;
5. Making recommendations about means for mitigating any dangers,
hazards or nuisances related to Mining Operations;
6. Making recommendations about the uses of the project Area after
the close of the Reclamation Period;
7. Making other recommendations which it deems pertinent to the
construction, operation, closure, long-term care and post-reclamation uses
of the Project Area; and
8. Monitoring CMC's compliance with the employment section of this
agreement regarding preference and training programs.
Page 16
ENVIRONMENTAL SAMPLING
During the Operating Period, the Committee may designate a
qualified technician to enter the Project Area to take samples of water
entering the CMC water treatment plant, or outfalling to the environment
from any CMC water treatment plant, leaving the CMC water treatment plant,
or outfalling to the environment from any CMC water outfall pipeline. The
expenses incurred by said qualified technician shall be subject to the
provisions of subparagraph C of the section of this agreement entitled
"CITIZENS ADVISORY COMMITTEE". This sampling shall be subject to the
following conditions:
1. Sampling shall be for the sole purpose of monitoring CMC's
compliance with a Local Agreement.
2. CMC shall have the right to observe while the designated
technician takes each sample, and the techniciam shall immediately divide
each sample into two portions which shall be equal in quality and quantity,
and CMC shall be entitle to retain its choice of the two portions.
3. The Committee shall give written notice of its intent to sample,
which notice shall be received by CMC at least 48 hours in advance of the
time designated for the taking of the sample. However, only reasonable
notice (which may be given in person or by telephone) shall be required for
sampling between the hours of 9 a.m. and 4 p.m. on ordinary business days.
4. After any sample is taken pursuant to this Article the Committee
shall forward a sufficient quantity of the sample for analysis at its own
expense to one or more qualified laboratories within seven days, and shall
supply CMC copies of all reports and analyses of the sample
Page 17
within seven days after it receives them. If CMC submits its share of the
sample to one or more outside laboratories, it shall supply the Committee
with copies of all reports and analyses of the sample within seven days
after it receives them.
5. The Committee may take samples pursuant to this Article not more
than once per calendar quarter unless it has reasonable grounds to believe
that CMC is conducting mining operations in violation of this Agreement or
of the Mining Permit, and unless it has given written notice of those
grounds to CMC by hand delivery or by certified mail.
Page 18
FEES FOR CONSULTANTS AND ATTORNEYS
A. CMC will reimburse Forest County for the reasonable and necessary fees
that Forest County pays for services rendered by attorneys and consultants
on mining-related matters for the following purposes ("Qualifying Fees"):
1. To monitor CMC's permitting activities and to prepare for and to
appear at the hearing describe in Wis. Stats. 144.836; and
2. To defend against any suit challenging the validity of this
agreement if such suit is brought by a third party during the Permitting
Period, provided that Forest County shall first have tendered to CMC the
opportunity to defend such suit on behalf of Forest County and CMC shall
have declined to undertake Forest County's defense.
B. To receive reimbursement under this section, Forest County shall forward
its attorneys and consultants itemized statements for Qualifying Fees,
together with proof of payment. Such statements shall show at least the
names and usual hourly rates of the persons performing the services,
detailed service descriptions, and the amount of time spend on each service
item. Payment by CMC shall be due within 60 days.
c. CMC's obligations under this section during the entire life of this
agreement shall be limited to reimbursing Forest County for the first
$150,000 in Qualifying Fees,a dn 50 percent of the next $150,000 in
Qualifying Fees.
Page 19
D. CMC shall have no obligation to reimburse Forest County for any fees
which may be reimbursable by any other person (including but not limited to
payments described in sec. 70.395 (2) (fm), Stats.) unless Forest County's
timely and proper application for reimbursement from such other person
shall have been denied.
E. Nothing in this Agreement shall be construed as giving Forest County any
right of indemnification or contribution against CMC.
Page 20
COSTS INCURRED BY FOREST COUNTY BOARD
A. CMC will reimburse Forest County for the reasonable and necessary
expenses that Forest County pays for per diem and out-of-pocket expenses
incurred by the Forest County Mining Committee and the Forest County Board
with respect to meetings, hearings, and other mining related matters for
the following purposes (Qualifying Fees):
1. To monitor CMC's permitting activities and to prepare for and
appear at any hearing describe in Wis. Stats. 144. 836; and
2. Any Committee or County Board meetings in which the principal
item on the agenda is to vote on a Resolution, Ordinance, or agreement
related to mining.
B. To receive reimbursement under this Section Forest County shall direct
the County Clerk to send itemized statements of costs incurred by Forest
County for per diems; mileage, lodging, and meal expenses; together with
proof of payment.
C. CMC's obligation under this Section during the entire life of this
agreement shall be limited to reimbursing Forest County for 100 percent of
the first $5,000 incurred and 50 percent of the next $5,000 so incurred in
qualifying fees.
Page 21
PROTECTION OF PRIVATE WATER SUPPLY
A. That notwithstanding the remedies provided by Wis. Stats. 144.855(4) CMC
agrees to notify Forest County of any complaints made by or on behalf of
persons as defined by 144.855 (4) whose property is within the corporate
boundaries of Forest County, which claim alleges that a private water
supply has been contaminated or otherwise adversely affected as a result of
mining operations. The notice required hereunder shall identify fully the
nature and extent of the alleged contamination or adverse effect; the
identity of the property owner and the exact location of the well or other
water supply source that has been allegedly contaminated or affected.
Forest County shall reserve the right to undertake, at its
discretion, an investigation independent of and in addition to any
investigation conducted by the Department of Natural Resources or any other
governmental unit or agencies has been inflicted upon surrounding
properties or to otherwise effect the welfare of the citizens of Forest
County. Forest County reserves the right as part of this agreement to
pursue any remedies which may be allowed by law or at equity. At the
conclusion of the investigation all costs so incurred by Forest County
shall be reimbursed to said County by CMC.
Page 22
PAYMENTS TO FOREST COUNTY
A. Commencing with the onset of construction, and during anticipated years
of mine operation, as well as during all phases of mine closure it is
anticipated that Forest County will incur substantial costs as well as
adverse impacts resulting in an increased need for government services; the
construction of needed public improvements, and rehabilitation of existing
County buildings and/or facilities or equipment. In consideration of the
foregoing the following payments shall be made to Forest County:
1. PAYMENTS IN LIEU OF OR IN ADDITION TO NET PROCEEDS TAX:
That commencing on December 1 of the calendar year in which all permits
have been granted to CMC and concluding with December 1 of the calendar
year in which the mine is closed CMC will pay to Forest County the sum of
$516,700 each such year, which payment may be adjusted in the following
fashion:
a. That the payment provided for above shall be decreased in any
such calendar year by the amount received by Forest County from net
proceeds tax
revenues.
b. That commencing with the fifth year subsequent to the
acquisition of CMC of all necessary permits to commence mining and
continuing each year thereafter until the mine is closed the amount paid as
set forth above shall be increased by the percentage equal to the consumer
price index as determined by the United States Department of Labor.
2. CONTRIBUTION TO COST OF CONSTRUCTION OF NEW COUNTY JAIL FACILITY
AND NEW COUNTY HIGHWAY SHOP:
A. That CMC shall finance the construction of a new Forest County jail
facility and 911 communication complex by granting to Forest County a loan
in the principal amount of $3,000,000. There shall be no finance charges
incurred, nor shall the loan incur interest during its term which shall be
amortized over a period of
Page 23
15 years. The payments shall be made by Forest County to CMC on or before
December 1 of each year of each year commencing on December 1, 1996 as more
fully appears on schedule A-1which is attached hereto, provide all
necessary permits to commence mining have been acquired by CMC. At the
conclusion of the payment due December, 2010 the principal balance then
remaining which is $1,000,000 shall be forgiven and the loan shall be paid
in full.
In the event permits are not obtained by CMC then and in such event
the payments made by Forest County shall be as more fully set forth on
schedule A-2 with the principal balance due subsequent to the payment due
December 1, 2010 to be forgiven by CMC.
B. That CMC shall finance the construction fo a new Forest County
Highway shop by granting to Forest County a loan in the amount of
$2,000,000. There shall be no finance charges no shall the loan incur any
interest during its term. CMC shall be obligated to provide the loan at
such time as the Forest County Board of Supervisors adopts the necessary
Resolution and completes other preliminary matters allowing for the
construction of a new Forest Highway shop. The principal shall be repaid by
Forest County to CMC amortized over a period of 15 years. The date said
payment shall be due and the amount so paid by Forest County to CMC shall
be dependent upon the actual time table of construction, however, for
illustrative purposes solely, schedule B-1 sets forth anticipated payment
dates. Accordingly, the date said payment shall be due and the amount so
paid by Forest County to CMC shall be as more fully set forth on schedule
of B-1 attached hereto, excepting, however, the date of commencement of
payments may be altered as set forth herein. That subsequent to the payment
due on December, 2010 any principal balance then remaining shall be
forgiven and the loan shall be deemed paid in full.
That in the event permits are not granted, then payments shall be
made as set forth on schedule B-2, once again allowing for alteration due
to anticipated date of construction, which payments allow for the repayment
of the entire principal.
Page 24
RENEGOTIATION
A. Forest County may cause specific terms of this agreement to be reopened
for negotiation in the event CMC proposes a substantial modification of the
Mining Plan or the Reclamation Plan before approval by the DNR or under
Wis. Stats. 144.87, and if CMC puts the modification into effect after all
necessary state or federal approvals have been obtained.
B. For purposes of this Article, "substantial modification" means any of
the following:
1. Increasing production to an average of more than 6,500 tons of
ore per day;
2. Increasing employment during the Operating Period to more than
600 full-time equivalent employees whose ordinary place of work is at the
mine site or elsewhere in Forest, Oneida, or Langlade counties;
3. Increasing the discharge of treated water from the water
treatment plant to more than 3,000 gallons per minute;
4. Proposing to mine commercial quantities of uranium or thorium;
5. Reducing the low permeability soil bottom liners of tailing
management areas to a thickness of less than eight inches.
6. Decreasing production to less than 3,250 tons of ore per day.
Decreasing employment during the Operating Period to less than 300
full-time equivalent employees whose ordinary place of work is at the mine
site or elsewhere in Forest, Oneida, or Langlade counties.
C. Forest County's right to reopen shall be subject to the following
conditions:
Page 25
1. Renegotiation shall not be required or shall be terminated if
the proposal for substantial modification is withdrawn by CMC or denied by
the DNR or by any other state or federal agency whose approval is required.
2. Renegotiation shall be limited to such portions of this
agreement as are reasonably related to the substantial modifications
proposed by CMC and to the mitigation thereof.
3. Forest County must give notice to CMC in writing of its intent
to renegotiate within 60 days after CMC proposes the substantial
modification, and time is of the essence of this provision.
4. The notice shall (i) identify the substantial impact on Forest
County which is reasonably expected to result from the substantial
modification (ii) identify each Article of this Agreement which Forest
County seeks to renegotiate, (iii) describe how Forest County believes the
Article or Articles should be revised, and (iv) explain how the revision is
expected to mitigate the expected substantial impact.
5. CMC shall reply to the foregoing notice in writing within 30
days of receipt, and shall enter into good faith negotiations within 30
days thereafter.
6. Either party may invite other persons (including technical
consultant or facilitators) to assist in reaching an agreement.
Page 26
D. If the parties have not agreed as to modifications of the Agreement
within 90 days after the DNR approves the substantial modification, either
party may ask the Committee to assist them in reaching an agreement.
Thereafter, both parties shall cooperate with the Committee's mediation
efforts. No recommendation or decision of the Committee shall be binding on
either party. If the parties have not agreed as to modifications of the
Agreement within 90 days after seeking mediation by the Committee (or such
other period as the parties may agree to), either party may seek its
remedies in law or equity.
E. In the event any local, state, or federal authority issues an order
requiring CMC to mitigate or remedy an enviromental impact (including but
not limited to the draw down of a lake or stream), CMC may unilaterally
modify this agreement to permit such mitigating or remedial activities by
filing with the Forest County (i) a copy of such order and (ii) a legal
description of the lands on which these activities will take place.
Thereafter, Forest County shall have the right to renegotiate other
provision of this Agreement as necessary to mitigate the actual it incurs
as a result of these activities. If the parties have not agreed upon
modifications that will mitigate Forest County's costs within 90 days after
Forest County has proposed modifications in writing, either party may ask
the Committee to assist them in reaching an agreement. Thereafter, the
parties may process as in Paragraph D above.
Page 27
F. In any action under this Article, a court of competent jurisdiction
shall have authority only to modify those terms of this Agreement which are
reasonably related to the substantial modifications implemented by CMC and
then only to the extent necessary to mitigate the effects of those
modification, provided, however, that no court-ordered amendment shall
directly or indirectly prohibit CMC from operating the Mine or any related
facility pursuant to the terms of the Mining Permit.
Page 28
DEFAULTS AND DISAGREEMENTS
A. If a party fails to make a payment when due under this Agreement, the
other party may give written notice of the non-payment. The notice shall
fix a period of not less than 15 days during which the non-paying party may
pay the sum due (the "Cure Period"). If the non-paying party does not make
the payment during the Cure Period, interest shall thereafter run at the
rate of 12 percent per year and the other party may seek the assistance fo
the Citizens Advisory Committee or pursue its remedies in law or equity.
B. If a party believes the other has breached a term of this Agreement
(other than a term requiring a payment), it may give the other party a
written notice which sets out the nature and circumstances of the breach
and describes the manner in which the other party can cure the breach. The
party who recieves such a notice shall have 30 days in which to cure the
breach or to respond in writing, stating its own views of the alleged
breach. Thereafter, the parties shall meet and shall use their best efforts
to resolve any remaining dispute. Either party at its own expense may
invite other persons (including technical consultants or facilitators) to
assist in resolving the dispute. If the parties have not resolved any
dispute relating to the alleged breach within thirty days after their first
meeting, either party may ask the Committee to assist them in reaching an
agreement. Thereafter, both parties shall cooperate with the Committee's
mediation efforts. No recommendation or decision of
Page 29
the Committee shall be binding on either party. If the parties have not
resolved their disputes within 90 days after seeking mediation by the
Committee (or such other period as the parties may agree to), either party
may seek its remedies in law or equity.
C. During the term of this Agreement, Forest County may sue CMC (or its
assignee, if CMC shall have assigned its interests pursuant to this
Agreement) only for breach of this Agreement or for violation of Wisconsin
or United States law, but not for violation of any Forest County ordinance
or resolution. In any such action, no court may directly or indirectly
prohibity CMC from operating the Mine or any related facility solely for
breach of this Agreement if such operations are in substantial compliance
with applicable state and federal regulations and permits.
ASSIGNMENT
Upon sale, assignment, lease, or other conveyance of its rights under this
Agreement, Crandon Mining Company shall be released automatically from its
obligations under this Agreement if
1. the successor to CMC's interests assumes all of CMC's
obligations under this Agreement; and
2. CMC is released by the DNR from its duties, pursuant to Wis.
Stat. 144.87(2).
Page 31
TERM
This Agreement shall be in effect from the date it is signed by both
parties until the first to occur of the following events:
1. CMC withdraws its application for the Mining Permit and gives
written notice to Forest County that it is terminating this Agreement;
2. A local, state or federal approval or permit necessary to the
mine is denied and such denial becomes final and unreviewable; or
3. After permits are issued but before CMC begins construction of
the mine, CMC decides not to begin construction and gives written notice to
Forest County that it is terminating this agreement; or
4. The end of the Reclamation Period.
Page 32
NOTICES
Notices required by this Agreement shall be given by Certified Mail, Return
Receipt Requested, addressed, in the case of Forest County, to:
Clerk
Forest County
Forest County Courthouse
200 East Madison Street
Crandon, Wisconsin 54520-1414
and in the case of Crandon Mining Company, to:
President
Crandon Mining Company
104 West Madison Street
Crandon, Wisconsin 54520-0336
or to such other address as either party may hereafter set out in
writing to the other.
Page 33
BINDING EFFECT
This Agreement represents the entire agreement between the parties and
supercedes all prior written and oral negotiations, representations or
agreements. This Agreement may be amended only by a writing designated as
an amendment to this Agreement and executed by the parties.
Page 34
CONSTRUCTION
This Agreement was drafted with the assistance of counsel for each party
and shall not be construed in favor of, or against, either party. The
titles of sections of this Agreement are included for convenience only and
are not part of this Agreement.
Page 35
SEVERABILITY
Whenever possible, each paragraph of this Agreement shall be interpreted
so as to be effective and valid under applicable law. However, if any
provision is held to be prohibited or invalid, that provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the other remaining
provisions of this agreement.
Page 36
ATTACHMENT "A"
SCHEDULE A-1
Permits Granted
$2,000,000.00 over 15 year period
December 1, 1996 $133,333.34
December 1, 1997 $133,333.34
December 1, 1998 $133,333.34
December 1, 1999 $133,333.34
December 1, 2000 $133,333.34
December 1, 2001 $133,333.33
December 1, 2002 $133,333.33
December 1, 2003 $133,333.33
December 1, 2004 $133,333.33
December 1, 2005 $133,333.33
December 1, 2006 $133,333.33
December 1, 2007 $133,333.33
December 1, 2008 $133,333.33
December 1, 2009 $133,333.33
December 1, 2010 $133,333.33
SCHEDULE A-2
Permits Not Granted
$2,500,000.00 over 15 year period
December 1, 1996 $133,333.34
December 1, 1997 $133,333.34
December 1, 1998 $133,333.34
December 1, 1999 $133,333.34
December 1, 2000 $133,333.34
December 1, 2001 $183,333.33
December 1, 2002 $183,333.33
December 1, 2003 $183,333.33
December 1, 2004 $183,333.33
December 1, 2005 $183,333.33
December 1, 2006 $183,333.33
December 1, 2007 $183,333.33
December 1, 2008 $183,333.33
December 1, 2009 $183,333.33
December 1, 2010 $183,333.33
ATTACHMENT "B"
Schedule B-1
Permits Granted
$1,500,000.00 over 15 year period
December 1, 1996 $100,000.00
December 1, 1997 $100,000.00
December 1, 1998 $100,000.00
December 1, 1999 $100,000.00
December 1, 2000 $100,000.00
December 1, 2001 $100,000.00
December 1, 2002 $100,000.00
December 1, 2003 $100,000.00
December 1, 2004 $100,000.00
December 1, 2005 $100,000.00
December 1, 2006 $100,000.00
December 1, 2007 $100,000.00
December 1, 2008 $100,000.00
December 1, 2009 $100,000.00
December 1, 2010 $100,000.00
SCHEDULE B-2
Permits Not Granted
$2,000,000.00 over 15 year period
December 1, 1996 $100,000.00
December 1, 1997 $100,000.00
December 1, 1998 $100,000.00
December 1, 1999 $100,000.00
December 1, 2000 $100,000.00
December 1, 2001 $150,000.00
December 1, 2002 $150,000.00
December 1, 2003 $150,000.00
December 1, 2004 $150,000.00
December 1, 2005 $150,000.00
December 1, 2006 $150,000.00
December 1, 2007 $150,000.00
December 1, 2008 $150,000.00
December 1, 2009 $150,000.00
December 1, 2010 $150,000.00
Topographic Map of Crandon Mining Company
Figure 2-2
PROJECT AREA
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