MOU is the foundation of the process to eliminate mining on Red Lady

The momentum is positive but patience still needed

[ By Mark Reaman ]

Three members of the Crested Butte town council met in a joint work session July 21 with two of the three Gunnison County commissioners and a representative of the Mount Emmons Mining Company (MEMC) to review the new Memorandum of Understanding (MOU) between the three entities. The general consensus was that while not a binding contract, the MOU reinforced that all three were on the same page and on a clear path to eliminate the possibility of mining on Red Lady.

While there are still many hurdles to jump, the fact that everyone involved “is speaking the same language” and moving in the same direction was considered a substantial step.

“This new MOU sets forth a path to reach a final conclusion,” said Gunnison County attorney Matt Hoyt. “All the parties are on the same page to walk down the same pathway. This is a very significant step and lays out the process to get there.”

“I agree and feel the mining company is committed to this pathway forward,” said Crested Butte town manager Dara MacDonald. “I am cautiously optimistic. The mine is following through in good faith with what we’re saying. This is a huge step forward but there is a lot of work to be done. We are heading in the right direction.”

“We are accepting of the MOU language and our vice president has signed the document,” added MEMC manager Dave Gosen.

Basically, the MOU outlines several steps that will result in mining being eliminated as a possibility on Mt. Emmons, which is located just west of Crested Butte. The MEMC is asking the Forest Service to exchange some land around the mine’s headquarters for a ranch surrounded by public lands up Carbon Creek. That exchange would consolidate their property near Crested Butte and give them ownership of the land where the water treatment plant is located, allowing them to more easily make improvements to the facility without going through federal review. A conservation easement would be placed on land that would extinguish the ability to mine the molybdenum ore body within Mt. Emmons. With the support of the town, the county and MEMC, US Senator Michael Bennet’s staff is working on language and maps for an amendment to the CORE Act (Colorado Outdoor Recreation Economy) that is currently making its way through the U.S. Congress. The amendment would facilitate a federal legislative mineral withdrawal by an Act of Congress to prohibit any mining on federal mining claims surrounding Red Lady to prevent access to the ore through nearby mining claims that others besides MEMC own. Some recreational activity like backcountry skiing would continue to be allowed and the town of Crested Butte would pay MEMC $2 million to obtain MEMC’s Red Lady mining claims and prevent their use, or alternatively MEMC would allow its Red Lady mining claims to expire when everything is completed. The process is expected to take about three years, but could take longer given all of the moving parts.

“This MOU will provide the basis, the foundation, that we can all refer back to,” said commissioner Roland Mason.

“The CORE Act is making its way through the Congressional pipeline,” said commissioner Jonathan Houck. “How long it takes to get through is anyone’s guess, but the political situation in Congress is currently favorable.”

“The next step is the land exchange which the mine has initiated with the Forest Service,” said Hoyt. “The Forest Service will start processing the exchange and it is currently evaluating it. The focus of the next several months is the land exchange. Then there is the CORE Act amendment that we are all working on with the congressional delegation to include the land for a mineral withdrawal on the mining claims around the Mt. Emmons property.”

MacDonald said John Whitney of Senator Michael Bennet’s office is working with people on the necessary senate committees to explain the requested amendment. “The conversation in D.C. would be very different if the mining company was not on board, but they are,” noted MacDonald.

The town and the county are also continuing to cooperatively participate in the mine’s pending water rights adjudication in state court, which might affect the amount and sources of water available for mining reclamation activities.

“It is pretty amazing really,” said Crested Butte mayor Jim Schmidt. “It has been a long time coming and the town has put a lot of resources over the years into this issue. It’s been a long, hard road but there is light at the end of the tunnel.”

“This will all still require patience,” concluded Houck. “There is still work to do. There is more to the process and we need to manage our expectations. But this momentum is a good sign for the community.”

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