Mt. Emmons Moly Co. seeks exemption from watershed regs

“They have to follow the same rules as everyone else”

The company hoping to conduct studies determining the feasibility of mining molybdenum in Mt. Emmons does not want to formally abide by the Crested Butte watershed ordinance during the study phase of the mining project. Instead, Mt. Emmons Moly Company (MEMCO) officials have proposed an agreement encouraging open communication between the town and the company.

The town doesn’t think that will be good enough and this week is crafting a response to the company. Town attorney John Belkin is writing a letter informing the MEMCO that it needs to go through the process of applying for a watershed permit if it plans to do any new work in the town’s watershed. He said MEMCO will be subject to the Crested Butte Watershed Protection District ordinance.
MEMCO vice president and general manger Larry Clark sent a letter this past August to town manager Susan Parker stating that the Thompson Creek subsidiary, along with U.S. Energy (USE), the primary owner of the mine, had the intention to “work with you and the Town to make sure that you have the information you need regarding the Project, including information regarding Project development and status, and the currently proposed baseline studies.”
The letter goes on to state, “We believe that devoting considerable resources to decide whether the watershed ordinance applies now at this phase of the Project would not be beneficial for any of the parties involved.” Instead the company suggested putting in place a communication plan. That plan was outlined in a draft Memorandum of Understanding (MOU) and calls for regular meetings between the mining company and town officials.
Belkin said the mining company would be held to the same standards and rules as anyone pursuing work in the area. “They need to go through the process and if the work being done is determined to be a minor impact, then they will be given appropriate commensurate review,” he explained. “If it is more comprehensive such that it would entail a major impact, then a different level of review will be applied. If there is no impact, clearly, no permits will be required.
“The town will follow its law to a T. But like everyone else, they have to go through the process before any work can occur. This is true for any person looking to perform work in the watershed district. The watershed ordinance, like any town law, has broad applicability.”
The proposed MOU makes clear that the project is in the “initial feasibility stage. MEMCO is conducting baseline studies that will allow it and USE to determine the scope of the Project. In furtherance of conducting those baseline studies, USE filed with the Forest Service on March 30, 2010, an initial plan of operations (PoO) which proposes conducting baseline studies on a total of less than 1.5 acres located in the Project area.”
The document states that with good communications between the town and mining company, the two parties could “identify and pursue cost effective measures that allow for the continued development of the Project in a manner that may be harmonized with the economic, environmental and social objectives of the Town.”
The MOU also states that because the impact of the initial baseline studies would be “limited,” the two parties will agree to defer determining whether the watershed ordinance is applicable to the proposed activities. It also would have the two parties agree to defer “any potential legal disputes over the watershed issue.” It made clear the mining company would “implement all necessary federal and state approvals associated with the baseline studies and keep the Town apprised of all developments with respect to the baseline studies.”
“In regards to the PoO and additional permitting, we won’t be applying for any other permits until we know what areas the Forest Service approves for the baseline data gathering, and I am unable to speculate when that will be,” explained Mt. Emmons Moly Company director of community relations Perry Anderson.
“We are waiting to see what’s approved from the Forest Service,” Anderson continued. “Not all the work is planned in the watershed. That’s why we haven’t even applied for permits yet.”
The letter and proposed MOU from Clark concludes that the mining company is committed to working with the town and has a “desire to develop the Project with economic, environmental and social objectives that are intended to be compatible with the Town’s continued desire for a prosperous and healthy community.”
“The proposed MOU document is not something the town would, could or will sign,” said Belkin. “Basically, MEMCO is asking the town to not follow its own laws. The mining company says it wants to be a good neighbor and work with the town. If that’s truly the case, then it should abide by the town’s laws, not try to skirt them.”