Mining Co. a good partner

By Mark Reaman

While nothing definitive has been settled with the new owner of the molybdenum mine on Mt. Emmons, those involved with the Freeport McMoRan and its subsidiary, Mt. Emmons Mining Company, feel positive about the direction things are going.

A meeting between representatives of MEMC, Gunnison County and the town of Crested Butte in late October was described as “positive” and “fruitful.” Gunnison County attorney David Baumgarten said the mining company really didn’t know what it had when it took over the site from U.S. Energy. ‘

“They are doing their own characterization of the site right now,” Baumgarten said. “They are also working well with the Colorado DRMS [Division of Reclamation, Mining and Safety] doing some work on the private land on the mine site to investigate the best way for remediation of some of the waste rock that sits on Mt. Emmons. The conversation also now includes the best way to find a method where improvement work can continue with local jurisdiction and control.”

“However the process goes forward, the town wants to make sure that activities on public lands are subject to public input and transparency,” added Crested Butte town attorney Barbara Green.

“Things still have good, active, forward momentum,” said Baumgarten. “They are working well with the state and there is a high level of respect between Freeport and the state.”

“We have worked well with them on several issues,” agreed Green. “I feel very positive with the direction that things are going.”

Meanwhile, the Red Lady Coalition has dissolved its 501(c)3 since it is moving from education to advocacy. The RLC board members said they still will remain involved to protect the Coal Creek watershed and ultimately get a Congressional withdrawal of mineral rights on the approximately 6,000 acres of unpatented mining claims on Mt. Emmons. They are willing to go along with the idea of partial privatization of land where the water treatment plant is located as part of total solution. But the former RLC board is adamant that strict contractual agreements are part of any such deal.

The High Country Conservation Advocates (HCCA) continues to be involved as well. “HCCA continues to remain engaged in water quality and other aspects of the Red Lady issue. We’ve been to the water treatment facility and surrounding area multiple times with a representative from Freeport-McMoRan,” said HCCA executive director Brett Henderson. “We’re still working to find a permanent solution that cleans up our watershed and includes a withdrawal of mineral rights on Red Lady. We are open to a creative approach to accomplish this shared objective so long as our community has sufficient legal assurance in place.”

Henderson said overall, HCCA also feels progress at the mine is moving in a positive direction.

“At this point Freeport has been a communicative and willing partner. Last June was the first time we’ve ever entered a water quality hearing in agreement with the mining company in charge of the wastewater treatment plant. Freeport appears to be forthcoming with information and has been willing to discuss options that would be agreeable to all parties,” Henderson said.

He continued, “We’re open to continuing to discuss a range of options that could best facilitate these goals, for Freeport and our community. It is important to HCCA that there would be sufficient oversight of site reclamation so we are assured that our watershed is protected. It’s also crucial that our shared end-goal, a permanent withdrawal, is a core component of any agreed-upon path forward. We look forward to continuing to talk with Freeport and other local partners to design a solution that secures a permanent mine-free solution that protects Red Lady and the health of our watershed.”

“We have to go slow to go fast”

By Mark Reaman

Talks are continuing between the parties trying to figure out the best way to eliminate the threat of mining on Mt. Emmons, but a “significant hurdle” has been encountered.

It was reported at Tuesday’s joint meeting between the Gunnison County commissioners and the Crested Butte Town Council that mine owner Freeport-McMoRan is pushing to take some of the mining land on Mt. Emmons out of U.S. Forest Service control and transfer it to the company so it can more quickly address some of the clean-up issues.

Such a move would essentially privatize hundreds of acres where tailings piles, treatment ponds and the water treatment plant are located. Not everyone involved with the negotiations is on board with that idea.

“We had a meeting in Denver Monday and encountered a significant hurdle,” said Crested Butte town attorney John Belkin. “Freeport wants to clean up the site outside of the Forest Service purview. They don’t want to have to deal with the process and oversight of the Forest Service. Some call that privatization. Freeport said they want it transferred to more easily deal with the clean-up. There are obviously issues to be worked out and the best way to structure all of this is being contemplated. It will require untying some big knots. While the meeting was productive, it showed we have some thorny issues to deal with.

“There is a difference of opinion on the best way to handle the clean-up,” Belkin continued. “Some people have concerns with privatization. Freeport probably wouldn’t use that word and instead looks at it as a ‘transfer’ to facilitate the goal. They have real concerns with the Forest Service process.”

Attorney Barbara Green, whom the town has retained to help with the situation, agreed it is an unusual situation for the Forest Service to oversee that kind of clean-up.

“Having this sort of clean-up on Forest Service land is not normal,” Green said. “It is not so much a clean-up as it is work on the ponds, on the ditch and on the waste rock piles in an effort to minimize the pollutants running into the water treatment plant. Freeport is currently in the process of gathering information on the site to analyze their options.”

“The conversations among the parties have been frank and candid and difficult, but they have been focused on problem-solving,” added county attorney David Baumgarten. “We have a lot of work ahead of us, but we have a willing partner with Freeport-McMoRan.”

Baumgarten reminded the elected officials that the issue encompassed more than just a clean-up. While short-term characterization of the site is a part of the equation since Freeport isn’t yet sure what they own with the mine, he categorized the issues into “four silos.”

The silos include the underlying base idea of a mineral withdrawal to permanently prohibit mining on Mt. Emmons. There is the clean-up and stabilization of the mine site. The elements incorporated into improved and consistent water quality standards for Coal Creek and the long-term future of the water treatment plant or a functional alternative are the last two silos.

“Obviously there are differences on how those at the table would set the priorities,” Baumgarten said. “The conversations will continue and they may be difficult. We may have to go slow to go fast. There are no easy answers here. The ultimate intent is that mining doesn’t occur up there.”

“The roots of the discussions remain how to accomplish a mineral withdrawal while meeting everyone’s needs,” said Green.

“Freeport has never changed its messaging,” said Belkin. “They continue to say they have no interest in mining Mt. Emmons. The current presidential administration adds to the complexity and will make it a challenge to get anything done.”

Green said that everyone who needs to be at the table to get something done is part of the discussions. That includes the mine owner, representatives of the governor and state regulatory agencies, representatives of U.S. Senator Michael Bennet’s office and the High Country Conservation Advocates.

“We have everyone we need as long as we stay in problem-solving mode,” Green told the local officials. “We might be at the point where we just need to take some time and let Freeport gather the information from the site.”

“The issue now is that Freeport would feel better to privatize so as not to have the federal leash on them,” said Baumgarten. “But we say we are more comfortable with that federal leash on them.”

Belkin said the land in question would amount to a couple of hundred acres where the water treatment plants sits and where tailings piles and treatment ponds are located. “It is a small slice of the thousands of acres of unpatented mining claims,” he said.

“But because ‘privatization’ is such a charged word we are still trying to figure it out,” added Green. “The company is saying they want to own the mess that they bought from U.S. Energy and get on with this. The obvious implication of using that word is enormous. The state is there to help and willing to help cut through the knots but is mindful to not do anything contrary to the local desire.”

County commissioner Jonathan Houck pointed out the state had unique leverage with Freeport since the mining company had operations in other parts of Colorado.

“So if everyone is sort of on the same page, what’s the hold-up?” asked Crested Butte mayor Glenn Michel. “What will keep it moving?”

“Trust,” responded Belkin. “Between everyone.”

“Community dialogue is important,” added Green. “It is important for the elected officials to signal the importance of the withdrawal and the stability of the treatment plant to handle pollutants.”

Green suggested a joint letter from the county and town be sent to Freeport signaling the desire to continue negotiations, while acknowledging the mining company’s good work on the site.

“Given the history of this, I don’t have heartburn where we are right now,” said commissioner Phil Chamberland. “Trust is certainly needed. We have moved leaps and bounds in the last year and a half. Let’s all take a breath and slow down and not feel a sense of urgency.”

“This could take a lot of time to totally accomplish,” admitted Michel.

“I have trust in the staff and feel they understand the big picture and are moving accordingly,” said commissioner John Messner.

“It’s important on the local level for us to present a unified front,” said councilman Roland Mason. “We are in the best position we have ever been in. If it takes another two or ten years, it is okay as long as nothing is mined up there.”

“I don’t want to lose the momentum,” said Michel. “We want to keep moving forward. A permanent solution to the mine continues to be the top priority for the Town Council.”

“It is important to let Freeport know we appreciate what they are doing, but we want to keep the foot on the gas,” said Houck. “As David said, we might have to go slow to go fast. We’re in for the long haul.”

HCCA’s Alli Melton agreed that the process could take time. “We are at a sticky point when everyone needs to sit back and access the situation,” she said. “We are all learning together. This is an unprecedented situation. Let’s make sure we take the time to ensure it is done right.”

It was agreed that a joint letter would be drafted and sent to the mining company from the county and town. “I think we all understand that the process will indeed take some time,” Michel concluded.

Looking for best way to move forward with Congress

By Mark Reaman

Last week’s national election results could have produced a hiccup in the effort and timing to obtain a congressional mineral withdrawal on Mt. Emmons, but there is still optimism that perhaps the action can be taken before the end of the year.

A bill has been crafted and U.S. senator Michael Bennet’s office is ready to move it forward in Washington. Crested Butte town attorney John Belkin told the town council on Monday that the election results in the U.S. senate could make it more of a challenge to get something through Congress in its last days of the session.

“Senator Bennet has been diligent in trying to look at ways to move this through but right now he is not sure of how to do it yet,” Belkin told the council at a November 14 meeting.

The Bennet bill has the support of the town, county, state agencies and Mt. Emmons mine owner Freeport McMoRan. It would withdraw all of the previous unpatented mining claims controlled by U.S. Energy on the mountain. Without those thousands of acres of claims, a mine could never realistically be developed on Mt. Emmons, also known as Red Lady, because there would be no place to construct infrastructure or place tailings.

Belkin said conversations have not yet taken place with Colorado’s other senator, Republican Corey Gardner, or the district’s congressman, Republican Scott Tipton. “But if this is to go anywhere, we will probably require their help,” said Belkin.

“I feel like we should continue to explore every opportunity and try to advance it soon,” said Belkin. “Things can change overnight. We will be looking at the next three or four weeks.”

He again emphasized “that getting anything through Congress is always a challenge, as we all know, and the election clearly could impact that. But our partners at Senator Bennet’s office, Freeport, the state of Colorado, and the county are all shooting to get this done. We will see what Congress will do and are hopeful this can happen this year. But we are realistic. It is a big uphill push.”

Belkin reassured the council that the bond issue for $2 million overwhelmingly passed by town voters last week will not change hands to the mining company until a mineral withdrawal is complete on the unpatented claims. He said the bill has to be passed by Congress, and signed into law by the president; Freeport then has to send a letter disposing of the claims. Only then would the town hand over the $2 million. He also reiterated that Freeport will be the entity in charge of running the water treatment plant on Red Lady. The town will not have any responsibility for the plant.

“Senator Bennet’s office has been a great champion of this avenue,” Belkin said. “Freeport has been great. The Forest Service has been great along with the state and the county. We just need a little help now with the congressional situation.

“We want to try to finish this in the lame duck session,” Belkin continued. “The bill could well be reduced to two sentences. Can we get two sentences in the federal budget amendment? That is the question.”

Water quality update

Ashley Bembenek of the Coal Creek Watershed Coalition gave a report to the council at the same meeting on the process to revise water quality standards for Coal Creek, which is a collaborative process with the Mt. Emmons Mining Company, the town, Gunnison County, the High Country Conservation Advocates and several state agencies. She was very positive and encouraged by the process.

Bembenek went over the manmade and natural sources that contribute to metals like cadmium, copper and zinc in Coal Creek. She said the Mt. Emmons Mining Company has been a very cooperative partner in dealing with improving the water quality and revising the water quality standards

“The latest plan for site characterization and eventual cleanup is excellent news for the people in town because in time it will decrease metal concentrations in Coal Creek,” she said. “When Mt. Emmons Mining Company announced its plans to reclaim the tailings impoundments, which are large piles of mine waste left over from historic operations at the site, that was going above and beyond even what was expected. I wanted to do cartwheels when I heard that. I am impressed with the steps they’ve proposed. So far they have done a great job communicating with us. It is all very different from a year ago.”

“This is all very encouraging,” added High Country Conservation Advocates Red Lady Program director Alli Melton. “These latest developments are all really positive.”

Town and mining company collaborating 

by Mark Reaman

A momentous agreement to try and end any possibility of industrial scale mining on Mt. Emmons has been reached between the town of Crested Butte and the Mt. Emmons Mining Company (MEMCO). The unique plan relies on a heavyweight mining company asking the U.S. Congress to permanently withdraw mining claims from mining activity along with town voters passing a bond issue that won’t raise taxes. The end result would be a mine-free Red Lady.

The plan is the result of recent collaboration and negotiations with MEMCO, a wholly owned subsidiary of Freeport McMoRan that owns the rights to the molybdenum beneath Mt. Emmons (also called Red Lady) and the town.

It will take the voters of Crested Butte to approve a $2.1 million bond issue this fall and the town and the mining company will have to work together “to complete a disposition of the mining and mill site claims for $2,000,000,” but the first tangible step in that direction has been taken.

On Tuesday, the Crested Butte Town Council unanimously approved a Memorandum of Intent (MOI) with MEMCO along with ballot language for a potential bond approval in the November election.

Town planner Michael Yerman reported to the council September 6 that a MOI had been forged with the mining company to jointly work on a plan that would lead to the U.S. Congress and the president agreeing to a withdrawal of the lands on and around Mt. Emmons from future mining claims under the 1872 General Mining Law.

In exchange, the town would give MEMCO $2 million. Basically, the 9,000 acres of unpatented mining claims held by MEMCO that impact four local watersheds and stretches from Oh-Be-Joyful to behind Whetstone mountain to the base of Carbon Mountain, would go back into the federal land bank and never be allowed to be used for mining purposes in the future.

If the initiative is successful, a major industrial mine would never have the needed land to make any mine feasible. Yerman described the move as historic.

“Today marks the start of a new chapter in the history of Mt. Emmons,” Yerman told the council. “The MOI and the proposed ballot language is the first step to end the threat of mining on Mt. Emmons and begin a new chapter of remediation and working collaboratively on the environmental protection of our water quality.”

Yerman said this step stays in line with the Memorandum of Understanding (MOU) signed last February, when the mining company made it clear it had no intention to develop a mine on Red Lady.

Because a mining company purchased by Freeport once held the rights to the moly mine and the water treatment plant situated just west of Crested Butte, Freeport had some potential liability for water quality issues under federal regulations. So it negotiated the takeover of then mine holder U.S. Energy last winter and signed an MOU with the town, the county and several state regulatory agencies.

The MOU outlined a path to secure the safe, long-term operation of the water treatment plant, upgrade water quality in Coal Creek and possibly eliminate the idea of a mine in that location.

This week’s action speeds up the process and would make a mine impossible at the site.

Freeport would still be responsible for operating the water treatment plant that treats acid mine drainage from the old Keystone mine before it is discharged into Coal Creek.

If Crested Butte voters approve the bond this November, the money would not change hands until the federal withdrawal is completed. “Once these unpatented claims have been federally withdrawn, this will eliminate the threat of a mine of Mt. Emmons,” Yerman stated clearly. “No money is exchanged until that is done.”

Yerman said Freeport would benefit by eliminating the ongoing maintenance fees associated with the unpatented claims, further reducing the operational expenses of running the plant. “The MOI will enhance our efforts toward a long-term solution that is consistent with our town’s environmental values of water quality,” he said. “Both parties worked hard to find common ground and built upon our working relationship … a certain level of trust has been achieved on both sides of the fence to come up with a creative solution to end the threat of mining.”

The bond would not raise taxes on Crested Butte citizens or property. The money would instead be borrowed against future revenues coming into the town’s real estate transfer tax (RETT) fund. Over 15 years, the initial $2,110,000 borrowed would amount to $2,785,000 in repayments at 3.75 percent interest. If repaid in 10 years, the cumulative amount would be under $2.5 million. Annual payments would not exceed $250,000. This cap allows the RETT fund, which is targeted toward open space acquisition, some flexibility.

The RETT brings in about $525,000 annually so this cap on the maximum bond payment would leave funding available for future open space projects.

Councilman Chris Ladoulis said while the patented mining claims holding the ore are not part of the deal, the elimination of the adjacent property from mine operations makes a mine impossible. Yerman said the company needed some land to continue with water treatment plant operations and mine remediation.

Councilman Roland Mason asked for the worst-case scenario. Yerman said if the voters turned down the bond for some reason, the council would have to decide whether or not to use other town money to complete the deal. “But the bond allows the town to not become stressed. That’s why we are not using reserves,” he said.

Town finance director Lois Rozman confirmed that if reserves were used to pay the money, several projects in the town’s five-year plan would be put on hold and services to citizens might have to be cut back.

“We certainly want the support of the citizens on this so let’s focus on that,” said mayor Glenn Michel. “This ends the possibility of a mine on Mt. Emmons so I would encourage the public to support this ballot initiative.”

In response to a question from councilman Jim Schmidt, Yerman said preliminary discussions have been held with U.S. Senator Michael Bennet’s office about how best to deal with the process of a congressional withdrawal of the unpatented claims. Attorney Barbara Green said the senator’s office had been in the loop during negotiations “and we will use their political savvy for the best way to approach (Republican) U.S. Senator [Cory] Gardner’s office.”

Yerman emphasized that the mining company must be the entity to initiate the withdrawal for the action to be considered by Congress. “It is a big deal for Freeport and MEMCO to do the request. That is the only way it could lead to nonpartisan support. That is huge,” he explained. He said that action could take years or even possibly be completed by the end of 2016.

High Country Conservation Advocates executive director Brett Henderson lauded the deal to the council. “We are pleased to support both the proposed ballot measure and the new MOI,” he said. “The intent of the ballot measure, which is aimed at ‘preventing mining activity on Mt. Emmons,’ has been HCCA’s goal since we formed to stop the initial mine proposal in the 1970s.”

Jim Starr, president of the Coal Creek Watershed Coalition, echoed that sentiment. “We are a scientific, non-advocacy organization but we want the water in Coal Creek to be up to standards. This is a huge step in doing that.”

Red Lady Coalition chair Bill Ronai said the RLC supports the action “whole-heartedly. Our group conducted a major economic impact study of the valley and one thing it found was that just the potential of a mine hanging over the valley impacted the valley’s economy to the tune of about a million dollars a year. We will do what we can to help get this through Congress.”

Mine opponent Sue Navy, who was a founding member of HCCA, commented, “This has been a long time in coming. I know it’s not over until it’s over, but this looks great. I want to say thanks.”

Yerman too thanked a number of people and groups in getting the plan on paper. He especially pointed out the efforts of town attorney John Belkin. “This deal would never have happened without the round-the-clock efforts of our town attorney, John Belkin,” he told the council.

“This community will ignite the flame to keep this momentum going,” noted Green.

“Today truly marks a turning point in the history of Crested Butte. It is a win-win for MEMCO and the citizens of our community,” reiterated Yerman. “But it is not over. Our citizens can send a strong message this November.”

As stated in the agreement with MEMCO, “The parties recognize that this MOI is only a first step in a long-term relationship.” In other words, the intent is historic and the first real step has been taken, but there is still a whole lot of work that needs to be completed to reach the goals of the town and the mining company.

Mining execs planning trip to the site

by Mark Reaman

Executives of the Mount Emmons Mining Company (MEMC) and Freeport McMoRan, owners of the molybdenum mining rights on Mt. Emmons west of Crested Butte, will be in town at the end of July to look over the site. Several representatives of MEMC plan to tour the wastewater treatment plant and analyze the mining claims and the property now owned by MEMC.

Last February, MEMC, a wholly owned subsidiary of global mining giant Freeport McMoRan, stepped in and acquired U.S. Energy, the longtime permit holder and owner of the mining rights on Red Lady. Freeport was connected to the mine through a previous acquisition of a mining company that had owned and operated the site. That connection put some potential federal liability on Freeport for water quality and other issues associated with the site. When U.S. Energy appeared to be in deep financial trouble, Freeport stepped in last winter to quickly acquire the site and its assets.

A Memorandum of Understanding (MOU) was signed in February by the mining company, the town of Crested Butte, Gunnison County, and several state regulatory agencies.

Ultimately, the company said its intention was to not mine the site, look for efficient ways to treat the water coming through the site, improve the water quality in Coal Creek and work toward a permanent solution to end the idea of mining Red Lady.

At the time, all involved expressed great optimism but noted that the “heavy lifting” would take some time. That time began in February and is continuing today.

The town of Crested Butte, Gunnison County and the representatives of the state and feds have been communicating regularly to keep the process moving forward. Detailed maps are being drawn to show the extensive holdings that came with the acquisition. The holdings include patented and unpatented mining claims, fee simple property, lode claims, millsite mining claims, placer mining claims, and even tunnel site mining claims for underground holdings.

It is a complex web of real estate holdings that stretch from just outside Crested Butte, up and over Ohio Pass, and to some ranch property in Carbon Creek and Alkali Basin behind Whetstone. The Trust for Public Lands is being consulted about facilitating preservation of some of the more prominent pieces. As for the minerals, the idea of an administrative or legislative mineral withdrawal is being broached.

According to Crested Butte town attorney John Belkin and Gunnison County attorney David Baumgarten, getting MEMC company representatives on the ground to see exactly what it is they own will be a big step to coming up with a complete plan to end the idea of mining on the Red Lady.

“There are five main priorities right now,” said Baumgarten. “First is making sure the water treatment plant is running and the water is being treated. Second is getting them in here to physically see the site. Third is making sure we are all working toward developing site-specific water quality standards for Coal Creek that may include monthly technical meetings with interested stakeholders. Fourth is dealing with the complex real estate holdings and transition of the claims and property. And finally, fifth is a mineral withdrawal that we may have to take to the United States Congress.”

Belkin said while there is a “trust but verify” attitude between the government entities and the mining company, the fact is the talks have been very positive and a collaborative attitude remains between everyone involved.

“We have been talking regularly and we all seem to still be on the same page,” Belkin said. “I think it will be very beneficial to get them up here to actually see the site and listen to their ideas. They have talked about doing some new things with the treatment plant, for example. Everything at this time appears to heading in the right direction.”

First, executives of the Mount Emmons Mining Company want to get their feet on the ground and see with their eyes what is actually owned by the company. That will happen in the next few weeks.

Shifting focus to water treatment plant

By Mark Reaman

Another significant step in the long walk to end the idea of mining on Mt. Emmons was taken this last week.

The Mt. Emmons Mining Company (MEM) sent a letter to Gunnison District forest ranger John Murphy on May 9 instructing the Forest Service to “terminate its processing of the various pending applications, including any Plan of Operations (PoO) previously filed by US Energy. Accordingly, the USFS should also terminate any analytical work associated with such applications, such as NEPA-related assessments.”

In other words, the subsidiary of Freeport McMoRan that acquired the moly mine site from U.S. Energy is stopping any immediate intention to pursue mining activities on Red Lady.

As part of a Memorandum of Understanding (MOU) between the company, the town of Crested Butte, Gunnison County and various Colorado regulatory departments, the company will move toward upgrading and protecting the water treatment plant that sits on Red Lady and treats contaminated water. The idea is to eventually move toward a complete transition from any chance of mining on Mt. Emmons.

“In the coming weeks, MEM will be filing with your office a PoO to address the water treatment site, including a reclamation bond,” the letter, signed by MEM remediation projects manager David Gosen, states. “As we have indicated, having only acquired the site on February 11 of this year, MEM is currently focused on storm and surface water quality issues and we expect to start that work once the snow melts.”

Gunnison County attorney David Baumgarten said this isn’t the last step on the journey but it is very positive movement in the process. “This is certainly a significant step,” he said. “It is not the final part of the deal but it is a big step in the direction we all embarked on together through the MOU. The Mt Emmons representatives are being as good as their word.”

Crested Butte town attorney John Belkin agreed that the company’s correspondence to the Forest Service is meaningful. “Mt. Emmons Mining Company’s letter to the Forest Service is an important first step towards ending the mining threat on Mt. Emmons,” he said. “In many ways, it is a historic first step and reflects the commitment by MEM and Freeport to retiring the mine. We at the town are working closely with MEM, their attorneys and business team, to affect the matters in the memorandum of understanding, and we thank MEM for taking this important first step in the larger process.”

The High Country Conservation Advocates noted that under federal law, approval of a PoO is required before any mining-related activities can occur on public land. U.S. Energy had previously submitted to the Forest Service, and the agency was considering, two PoOs, one for the large mine proposal (submitted in 2012) and the other for a preliminary drilling program (submitted in 2014) to gather geotechnical and other data to support the main mine proposal. HCCA feels the latest action is major.

“These are significant positive developments toward a long-term, sustainable, and permanent solution for Red Lady and our watershed,” said Alli Melton, High Country Conservation Advocates’ Red Lady program director. “Now, with the termination of the PoO for the mine and with the intention to submit a PoO for the WTP, the skies are clearing over Red Lady. The reclamation bond, in tandem with Freeport/MEMC prepaying WTP operation for the next two years, as provided in the MOU, is much needed assurance that HCCA, other community groups, and the town and county have unwaveringly sought for years.”

Melton made it clear that the parrot isn’t dead yet and there is still much hard work to be done before finding a permanent mine-free solution for Red Lady and protection for the watershed, but major progress is continuing.

The Red Lady Coalition agrees with that assessment. “We think that this is excellent news and reconfirms our support for the MOU,” said Red Lady Coalition president Bill Ronai. “There is much work still to be done, but the letter clearly shows that Freeport is pursuing their stated intentions.”

Belkin told the Town Council on Monday that there is plenty of activity with the mine transition process. “After the snow melts, there will be a series of site visits to the site,” he said. “We have been creating a lot of maps of the property to help with the land transfers. There are lots of things in the works. Everyone is cooperating well. It’s all goodness.”

“We are a good team”

by Mark Reaman

The evolving Mt. Emmons mine site situation is not just a local issue since state ramifications come with the site. Colorado regulatory agencies are a part of the deal, along with Gunnison County and the town of Crested Butte. Overall, the state agencies are also pleased with the positive movement taking place.

Last February, it was announced that the Mt. Emmons Mining Company (MEMC), a subsidiary of international mining giant Freeport-McMoRan Inc., acquired the mining site from U.S. Energy. U.S. Energy had been experiencing financial difficulties in recent months and the company was recently restructured.

The site acquisition came with the water treatment plant (WTP) on Mt. Emmons, also known as Red Lady, along with the mining permits, some land and the buildings. Under EPA regulations, Freeport had ties to the site when it purchased mining company Phelps Dodge in 2007. MEMC was a part of Phelps Dodge that controlled the mining rights and built the water treatment plant. Once tied to a site, a company always carries some potential liability for that site.

The county, town, MEMC and the state all entered into a Memorandum of Understanding (MOU) after the acquisition from U.S. Energy. That MOU outlines a path toward a permanent solution to keep the WTP secure and operating and to potentially take the idea of mining molybdenum off the Red Lady table.

Colorado Division of Reclamation, Mining and Safety (DRMS) director Ginny Brannon said the new developments are a “very positive move” from the state’s perspective.

“The site is in a better financial position with Freeport,” Brannon explained. “There has been concern that the treatment plant might stop operating for lack of funding and this assuages those concerns.”

Brannon said the change has brought good direction but it comes with hard work on the part of the mining company, the state and the local entities. “We are collaborating on a number of issues at the site. We’ve had numerous long meetings that were hard work, but we’ve always kept in mind that we have the same goals,” Brannon said. “We are a good team.”

The Water Quality Control Division of the state Department of Public Health and the Environment is a part of the MOU and it too is pleased with the transition of the mine site.

“All parties are working together. The move from U.S. Energy has changed the situation for the better,” said Water Quality Control Division director Patrick Pfaltzgraff. “The division has worked collaboratively with our sister agencies, local government and Freeport during the transfer of the site to discuss current and future issues.

“There is certainty for ongoing water treatment at the site and a commitment to work together on the issues at the site,” Pfaltzgraff continued.

Regular meetings between all the parties involved in the MOU continue to take place in an effort to come to a permanent solution for the Mt. Emmons site.

Suzie and Denis were there at the beginning, and now the beginning of the end

By Mark Reaman

The Crested Butte Town Council and the Gunnison County commissioners this week agreed to sign the Memorandum of Understanding (MOU) between the government bodies, some state regulatory divisions and the Mt. Emmons Mining Company (MEMC), which is a subsidiary of mining giant Freeport-McMoRan.

MEMC now owns the molybdenum mining rights and associated water treatment plant (WTP) on Mt. Emmons, also known as Red Lady.

The MOU essentially outlines a path for future responsibilities of the parties. The end goal is to ensure the WTP that treats water in Coal Creek above the town of Crested Butte is secure in future operations and molybdenum mining will not take place on the site.

A crowd of almost 50 people attended a rare Friday evening Crested Butte Town Council meeting on February 26 in Jerry’s Gym at the town hall. Town attorney John Belkin presented a summary of the MOU. “This document represents 40 years of effort to the present day,” he said before outlining the recent actions that started last fall and led to the MOU.

“We have had several conversations with representatives of the state and Freeport as recently as one o’clock today and I think we understand each other now,” said Belkin. “We have developed trust and that is something that had been missing in the past.

“Freeport has been clear with what they want and we’ve listened,” he continued. “The town and the county have been straightforward with what we want and Freeport has listened. The MOU contemplates that with time everyone will get what they want. The goals of the MOU are very achievable. It might take two or five or ten years, but I’d venture closer to two.”

The deal has Freeport and the MEMC funding two years’ worth of WTP operating costs immediately.

The parties will all work together to achieve compliance of all environmental laws and issues associated with the site; work to develop site-specific water quality standards for Coal Creek; pursue the disposition of mining and mill site claims and land tied to the claims; and work together with the federal legislative delegation on any mutually acceptable legislation required to implement long-term solutions to a molybdenum mine on Red Lady.

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“The Freeport decision, while a defensive one, was in their best interest and the community’s interest,” said Belkin as he explained that Freeport has ties to the mine site through a 2007 acquisition of Phelps Dodge, which at one time owned the mining rights and built the WTP.

Under federal regulations, once associated to a mine site, a company always has possible liability for that mine site. So if an accident turned it into a federal Superfund area, Freeport could be responsible for the cleanup cost.

“It is all sort of fortuitous how it fell into place,” said Belkin. “It is pretty amazing how we ended up here.”

Last fall the town and county pressed state and federal regulators for some financial “surety” since then-owner U.S. Energy was experiencing financial turmoil. Belkin said after those meetings, “We understand that both the state and Freeport shared conversations with the U.S. Environmental Protection Agency in the context of U.S. Energy’s financial status and the continued operation of the water treatment plant.”

In response to a question from councilman Jim Schmidt, Belkin said Freeport has indicated it would like to cut the annual operating costs of the plant, which is about $2 million per year. That might include a major upgrade to make the plant more modern and efficient. How and when that might happen has yet to be determined. “They are committed to upholding the environmental standards or doing better,” Belkin said.

Councilman Roland Mason wanted to make sure that after the two years’ worth of operating money is spent, the town wouldn’t have to pay for operating the WTP.

Belkin said while the government bodies tried to negotiate more than two years of operating costs, ultimately all the parties were comfortable with the two-year figure and the future.

The bottom line is that Freeport now has responsibility to continue operating the WTP in perpetuity. If for some reason Freeport or MEMC would go into bankruptcy, Belkin said the state and feds are involved and would have to step in and sort out the situation in that unlikely possibility.

“We are comfortable where we are right now and I feel really good about this whole thing,” reiterated Belkin. “I’m happy we’re here.”

So was the public in general. HCCA Red Lady program director Alli Melton said it was “exciting to see this monumental shift in the conversation over the last couple weeks. Now we really need to roll up our sleeves in the next two years and determine a final solution that protects the watershed and the mountain. But this is a historic moment when the mining company has no real interest in mining. We support the council entering into the MOU.”

Red Lady Coalition president Bill Ronai agreed. “This is a good document that sets up a good framework to move forward,” he said. “It protects the water and then sets the stage to address the mining issue. Our board strongly urges the council to sign the MOU.”

Crested Butte resident Sue Navy has been involved in the mining fight since it started almost 40 years ago and was a founding member of HCCA. “Thirty-nine years ago I sat in this very room and heard about the proposal for a mine on Red Lady,” she told the council. “I’ll tell you that this feels a whole lot better being here tonight. Thanks to everyone.”

Jeremy Rubingh has been active in the fight and made a movie about the situation several years ago. He too spoke in favor of having the council sign the MOU, emphasizing that it protects the town’s watershed. He also said he appreciated the inclusive process in getting to an MOU.

In response to a question from Suzanne Pierson, Belkin said once the mining claims and associated lands are “disposed” from the mining company, the land would likely go back under federal control. “There won’t be a waterslide or condos once the land situation is resolved,” said Belkin. “Freeport has said they would like us to educate them on how to make that happen. It would more than likely go back to the federal government with a caveat that it can’t be used for mining.”

Belkin also added that the local and state governments, along with groups such as the Trust for Public Land, might assist Freeport with the land transfers and the improvements to the WTP.

“But to be clear, the community cannot pay to operate the plant,” Belkin said. “That would be unconstitutional.”

Belkin emphasized there are still a lot of unknowns on the table that have to be worked out.

“I was with Suzie at that meeting in this room 40 years ago,” said Denis Hall to the council. “I understand the need for transparency and holding this meeting. But sign the damn thing and let’s get out of here.”

Given his long tenure with town government, mayor Glenn Michel asked Schmidt to read the motion that would have the town enter into the MOU. He did so and the motion was approved 6-0 (councilman Paul Merck was out of town) and the people in the room applauded. The meeting lasted less than an hour.

Signing of the MOU also appeared on the March 1 agenda for the Gunnison Board of County Commissioners. The motion to do so carried unanimously, and garnered much praise from the board.

Commissioner Phil Chamberland, who represents the upper East River Valley, expressed his gratitude to Freeport-McMoRan for its cooperation in mapping out the agreement.

“I’d like to publicly thank Freeport for coming to the table like they did and being willing to sit down and try to find a solution with us,” Chamberland said. “I think this is wonderful, quite frankly.”

Chairperson Paula Swenson commended county attorney David Baumgarten for leading negotiations with Freeport.

“I want everybody in this community to understand that David has been the tip of the spear in moving these negotiations forward and keeping everybody at the table, and getting people to understand how important this is from all aspects,” Swenson said. “Thank you, David, for coming to us last August with this ‘aha’ moment and moving this forward with the communities and the state and the mining company.”

The beginning of a long relationship 

by Mark Reaman

The Crested Butte Town Council will meet Friday and the Gunnison County Commissioners will meet Tuesday to discuss and take public comment on the proposed Mt. Emmons mine and water treatment plant (WTP) deal.

A memorandum of understanding (MOU) has been drawn up between the town, the county, several Colorado regulatory departments and the Mt. Emmons Mining Company (MEMC), a wholly owned subsidiary of Freeport-McMoRan that now controls the mining rights and WTP on Red Lady.

The MOU outlines a path toward a permanent solution to keep the WTP secure and operating and to potentially take off the table the idea of a molybdenum mine on Red Lady.

As explained in a lengthy Crested Butte News story last week, the MEMC entered into an acquisition agreement with U.S. Energy, the longtime permit holder of the mining rights and the responsible party for the WTP. What was not clear in last week’s News story was the motivation of Freeport and MEMC.

Basically, under federal Environmental Protection Agency regulations, a company associated with a mine site in the past is essentially always associated with the site and carries some liability if something goes wrong on that site. Freeport purchased mining company Phelps Dodge in 2007. A subsidiary of Phelps Dodge, the Mt. Emmons Mining Company, at one time controlled the mining rights and built the water treatment plant. Thus, Freeport carries some potential liability with the Red Lady situation.

Freeport spokesman Eric Kinneberg confirmed in an email this week that the company will be putting up two years’ worth of operating costs for the water treatment plant and will work with the other entities to really address concerns with the site.

“Mt. Emmons Mining Company, a wholly owned subsidiary of Freeport-McMoRan, Inc., and various local and state authorities entered into a memorandum of understanding to serve as a basis for future cooperation and agreement regarding the appropriate management of the water treatment plant and ancillary environmental issues on the Mt. Emmons Mine Site,” Kinneberg stated. “Mt. Emmons Mining Company previously owned the Mt. Emmons site and constructed the water treatment plant, but was not involved in prior mining, which took place on the site from 1881 through 1970.”

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“As the previous owner of the site and water treatment plant, Mt. Emmons [Mining Company] wanted to ensure sustained operation of the water treatment plant that discharges to Coal Creek,” he said.

Kinneberg reiterated the points in the MOU, writing, “Mt. Emmons will work cooperatively with the parties to the Memorandum of Understanding to protect the public health, safety, welfare and the environment of the Mt. Emmons Mine Site and Coal Creek…”

Those points include compliance with all applicable environmental laws and regulations; finding and implementing technical solutions to the environmental issues at the site; pursuing disposition of the mining and mill site claims and fee simple lands (which encompasses area property owned by the mine owner, including those lands under which the ore body lies, which are the fee simple patented lands) in a mutually beneficial way; and working with the federal legislative delegation on any mutually acceptable legislation required to implement long-term solutions, along with addressing other issues.

Crested Butte mayor Glenn Michel said the Town Council wants to give the public an opportunity to vet the progress on the mine situation. Town attorney John Belkin will present the MOU Friday evening and the public will have a chance to ask questions.

“The purpose of the meeting is to inform the public of the MOU, allow the public to ask questions and provide comment, and for the council to discuss the MOU in public. The council has been informed on the development of the MOU over the past months by the town attorney, so our discussion should be limited. At the end of the discussion and considering the public input, the council may vote to direct the mayor to sign the MOU on Friday night,” Michel said. “I expect a lot of questions from the public at the meeting on Friday. We all should remember the MOU is an agreement that the signing parties agree to work together to find a solution to the Mt Emmons mine and there are still a lot of answers to be ironed out. This is only the beginning of a long relationship—there is still a long way to go.”

Michel said because of the magnitude of the issue, the meeting would take place at the Crested Butte Town Hall in Jerry’s Gym so a possible crowd can be accommodated. “Although the meeting will be held on a Friday night in the gym it will be run as a normal Town Council meeting,” Michel explained. “There will be a lot of excitement and emotion in the room. Let’s all be respectful of our fellow citizens, as we always are, and have an informative and productive meeting.”

Kinneberg said no timetable has been established to accomplish all the things in the MOU but every indication from the parties involved is that the desire is to get it done as quickly as possible.

The Crested Butte Town Council meeting will be held Friday, February 26 at 6 p.m. at Jerry’s Gym. “I would encourage as many people from the community to show up so that we send a strong message of support for the MOU as the town of Crested Butte continues to work towards a permanent solution to the mine,” said Michel. “This will provide legitimacy and momentum for our future actions.”

The county commissioners will address the MOU as part of their regular Tuesday, March 1 meeting.

New owner, state, county and town all at the table

by Mark Reaman

A giant step was taken this week toward finding a permanent solution to the idea of a molybdenum mining development on Mt. Emmons (also known as Red Lady), resolving environmental problems in that area, protecting the water treatment plant on the site, and possibly taking the idea of a mine off the table.

Further steps will be taken over the next couple of weeks, but state, local and federal officials describe the latest development as “exciting” and “optimistic,” with the potential to finally end the decades-old fight over a moly mine just west of Crested Butte.

U.S. Energy, the long-time owner and permit holder of the potential mine and water treatment plant on Red Lady, entered into an acquisition agreement with the Mt. Emmons Mining Company (MEMC), a wholly owned subsidiary of Freeport-McMoRan Inc. last Friday.

Freeport is one of the world’s largest copper, molybdenum and gold mining companies and is based in Phoenix, Ariz. It owns the Henderson and Climax molybdenum mines in Colorado.

MEMC essentially acquired U.S. Energy’s mine site, located about three miles outside of Crested Butte. The acquisition includes the Keystone Mine, the water treatment plant and other related properties including buildings, land and mining claims. U.S. Energy made the acquisition announcement on February 12.

That deal now triggers several next steps outlined in a memorandum of understanding (MOU) between the new mine owner, the town of Crested Butte, Gunnison County and several state agencies including the Colorado Department of Public Health and the Environment (CDPHE), its Water Quality Control Division (WQCD) and Air Pollution Control Division (APCD), the Colorado Department of Natural Resources (DNR) and its Division of Reclamation Mining and Safety (DRMS).

The Crested Butte Town Council will look at and consider entering into the MOU on Friday, February 26 at a special meeting that starts at 6 p.m. The county commissioners will do the same on Tuesday, March 1.

Opportunity versus opposition

“I am excited and very optimistic about this latest development,” said Crested Butte mayor Glenn Michel. “But there are a lot of details to work out and the devil is always in the details. It is a great opportunity for the town and I feel we have great partners working toward a solution for the mine issue and we are extremely optimistic.”

Gunnison County commissioner Jonathan Houck agreed with that assessment. “This is a great stride forward. It shows we are starting to see opportunities instead of opposition and that is major shift. This is pretty promising action.”

Colorado governor John Hickenlooper lauded the deal. “This is a victory for the community,” said Hickenlooper. “We must continue to make progress on reducing mining-related impacts to our streams and rivers. We appreciate our partnership with Freeport, Crested Butte and Gunnison County; this kind of cooperation represents how we do business in Colorado.”

County attorney David Baumgarten said given the sometimes nasty history of the mine issue, a collaborative effort beginning to blossom is refreshing. “It is a big step, especially in perspective of where we have been the last 39 years or even the last couple of years. The coordination now with the owner of the mine, the state, the county and town is significant,” Baumgarten said.

“The real heavy lifting is still to come,” he continued. “There are a lot of knots still to untie but getting to the MOU has been a thoughtful, in-depth exploration of the issues and there is general agreement of desired outcomes. Now we have to roll up our sleeves and really dig into the details.”

And groups like the Red Lady Coalition (RLC) and High Country Conservation Advocates (HCCA) are ready to help in the detail work. “HCCA is highly encouraged by Freeport/MEMC’s commitment, along with the town, county, and state and federal agencies, to eliminating all rights to mine,” said Alli Melton, HCCA’s Red Lady program director.

MOU outlines path to the future

The proposed MOU outlines a path to eventually secure long-term operation of the water treatment plant as well as to possibly eliminate the idea of molybdenum mining in that location.

“The government parties will assist Mt. Emmons [Mining Company] in identifying and supporting cost-effective solutions at the site to ensure ongoing protection of public health, safety, welfare and the environment, in exchange for the other considerations given in this MOU,” the document states.

The agreement also includes several bullet points to address the future of the property. Among the goals stated in the document are:

• Pursue disposition of the mining and mill site claims and fee simple lands in a mutually beneficial way.

• Find and implement technical solutions to the environmental issues at the site.

• Discuss implementing technical solutions to environmental issues at the site, including long-term funding options therefor.

• Collaboratively work to develop site-specific water quality standards for Coal Creek that may include monthly technical meetings with interested stakeholders.

• Continue the current administrative extension of the CDPS discharge and storm water permits until after a final decision is issued by the WQCC in the June 2017 Gunnison Basin rulemaking proceeding.

• Work with the federal legislative delegation on any mutually acceptable legislation required to implement long-term solutions.

The MOU states that the Mt. Emmons Mining Company has agreed “as a goodwill measure” to voluntarily put two years’ worth of operating costs for the water treatment plant into an escrow fund. That amounts to about $1 million per year. Monthly invoices will be paid from the escrow account or other equivalent.

As for the spirit of the MOU, “The parties recognize that this MOU is only a first step in a long-term relationship. The parties commit to working together to achieve further agreements to address the actions listed above in more specificity… This MOU is intended as a measure of good faith and fair dealings between the parties and as a basis for long-term cooperation in furtherance of future agreements.”

Relationships helped everyone get to this point

“Part of why this is exciting is that it is a new way of doing business,” said attorney Barbara Green, who is working for the town on the issue as a special counsel. “It is a different approach and we see this as an example of people coming together to solve a problem. The idea that this will be done cooperatively is a great aspect of this agreement and we want to begin the first steps immediately.”

Crested Butte town attorney John Belkin agreed. “It is a big step forward,” he said. “We now have a willing partner in the mining company that is there to try to solve the problem that for decades has, quite frankly, been a battle against the mining company. Plus the state has been incredibly cooperative and instrumental in getting this progress going.”

Belkin and Green said the town and county began negotiating the MOU last fall. But the groundwork was set up with the state a couple of years ago when U.S. Energy applied to the state for a VCUP (Voluntary Clean Up Program) to clean up the old Keystone Mine on Mt. Emmons.

“Back then, the town and county contacted the relevant state agencies to express technical concerns when the idea of the first VCUP surfaced,” Green explained. “The Colorado Division of Reclamation, Mining, and Safety and the Department of Health convened a meeting immediately to address the concerns. So when the Freeport news came up last year, there were working relationships already established with the local entities and the state.”

Belkin added, “We engaged the state agencies last year when the precarious financial situation with U.S. Energy became obvious and we wanted to make sure the water treatment plant operation was protected. We then met again with the state over that matter and that helped solidify the relationships, culminating in discussions with the new owners.”

Green said the conversations with the mining company have been good and it seems apparent they want to address the big issues with the mine.

“Part of this means that the community and the organizations that have been involved with the issue will continue to be involved,” Green said. “HCCA, for example, will be there to verify the details as they move forward. It is a trust but verify situation. HCCA will continue to be a watchdog along the way.”

Belkin said the MOU outlines general goals for the parties that, if everybody puts their heads down, could be accomplished in the next several years—although Belkin admits that the final disposition of the unpatented mining and mill site claims will take longer since they require the passage of federal legislation. For that, the parties have been working closely with Senator Michael Bennet’s office.

Green said every indication is that everyone wants to roll up their sleeves and work on the solutions immediately. Both attorneys agreed it is obvious within the MOU that Mt. Emmons Mining Company intends to solve the disposition of the mining rights at the site. But only time will tell in terms of the execution of that goal.

Both Green and Belkin gave kudos to the state “for really making this happen,” Belkin said. “And frankly we have to credit Freeport for coming in and working with this. We look forward to continue to work with them to achieve the goals of the MOU.”

HCCA also sees some light at the end of the tunnel. “This marks the first time since the threat of a molybdenum mine on Red Lady arose in the 1970s that the owner of all the mine properties on Red Lady says it intends to dispose of all of its interests on the mountain with the goal of ending the threat of mining Red Lady,” said Melton.

“HCCA urges town and county elected officials and staff to continue placing this community-supported goal as a top priority. HCCA will, as it has for almost 40 years, continue our tireless advocacy to protect Red Lady and see that this iconic mountain will be permanently protected from mining as soon as possible. We are looking forward to working with all the interested parties to achieve this result,” said Melton.

All parties pointing in the same direction

In a prepared statement, HCCA said it was also pulling back on its current lawsuit against the Forest Service. “These issues are related to HCCA’s current lawsuit challenging the U.S. Forest Service’s failure to have any financial coverage for the operation of the WTP [water treatment plant],” the statement reads. “HCCA has agreed to suspend the beginning of legal briefing for a few months in order to facilitate these negotiations.”

“I think this is really exciting,” said Red Lady Coalition (RLC) president Bill Ronai. “It is a phenomenal development compared to where we have been in the past. I think everybody is on the same page and pointed in the same direction.”

 

“That includes the new owner, the state, the county and the town. Everyone has agreed to work together and that has not always been the case,” Ronai continued.

Ronai said from what he has seen with Freeport-McMoRan, “The company has acted incredibly professionally and done what they said they would do. I believe they will follow through with both the word and the spirit of the MOU.”

Michel agreed. “Freeport has the necessary resources to make this work,” he said. “And the town has so far been able to communicate well and work with them. We all appear to be heading in the right direction.”

Everyone involved is clear that there is a lot of heavy lifting to be done to complete the agreement.

“But there is a group of people involved who want to see all of this get done now,” said Ronai. “There’s a lot of hard work to do in good partnership together. It is a very acceptable road map to a final solution.”

Ronai said the RLC stands ready to assist in that work any way they are asked. “We have complementary resources and they will be available to help see this through to completion,” he promised. “We are happy to help out any way we can. And looking back, over the decades a lot of folks have contributed to where we are now. Many have done so anonymously, so thanks to all.”

HCCA too will be there to help verify details. “These developments,” said HCCA executive director Michele Simpson, “move us closer than ever to two of HCCA’s longstanding goals: (1) ensuring Coal Creek water quality is protected, and (2) a permanently mine-free Red Lady. Much hard work remains before we see the eventual disposition of mining and mill-site claims and fee simple land. HCCA looks forward to playing an integral role in protecting Red Lady and working with all the interested parties to achieve a permanent mine-free solution.”

“I am confident with the work that has been done so far,” said Baumgarten. “And I feel good about the relationships we are building.”

“The town and a lot of organizations have been working on this problem for more than 40 years,” said Michel. “There are so many people who have focused on this over the years. We happen to be sitting in the seats that will hopefully see this through to the end but there are hundreds of people who deserve a lot of credit for getting to this point.

“The fact is there will be a lot of eyes on this agreement and the entire process,” continued Michel. “It is a very broad-based effort and there will no doubt be a lot of smart people keeping an eye on this whole deal.”

U.S. Energy changing focus

According to a press release from U.S. Energy, “With the divestiture of the Mount Emmons Mining operations, U.S. Energy Corp. will have eliminated its mining related operating costs of approximately $3 million per year, a portion of which relates to operation of the water treatment plant. Under the acquisition agreement, MEM will replace the company as the owner and permittee of the water treatment plant, the associated mining assets and will discharge the obligation of the company to operate the water treatment plant upon closing.”

The U.S. Energy statement continued, “David Veltri, chief executive officer, stated, ‘This transaction will end our mining activities and together with the earlier reductions and savings will position U.S. Energy to execute our strategy to transform the company to profitability and to grow our oil and gas assets during 2016 and beyond.’”

“There are a lot of people who deserve a lot of credit to have gotten to this step. One group not mentioned in the MOU is Colorado senator Michael Bennet and his staff,” added Baumgarten. “They were stellar as we went through this process and very responsive. I am confident they will be very involved in the future as well.”

In fact, Senator Bennet said the MOU solidifies some issues for the valley. “This agreement is a tremendous step forward for the community. It will help ensure the long-term stability of the water treatment facility and the future status of Mt. Emmons. The agreement would not have been possible without the diligent work of Crested Butte, Gunnison County, the state of Colorado, and Freeport-McMoRan,” he said. “Freeport-McMoRan’s work ensures that water treatment of the acid mine drainage into Coal Creek will continue without interruption. The agreement also recognizes the community’s concerns about their future water supply and economy. Mt. Emmons is not an appropriate location for new mining activity, and this agreement moves us toward a final resolution of this issue.”

“The MOU represents a ‘maybe’ in the bigger picture,” concluded Michel. “To go from a ‘no’ to a ‘yes’ you need a ‘maybe’ and I feel this is a ‘maybe,’ but it is a very positive one.”

And HCCA promises to not take its eye off the ball until the big picture includes that ‘yes.’ “We are committed, as always, to ensuring that Coal Creek and the Red Lady are protected forever,” HCCA stated in its press release. “We look forward to working with these parties and others to make sure the result will be a long-term, sustainable, and protective solution for our watershed and Red Lady.”