Siberian Tiger/Forests Report
*********************************************************************
Forwarding this press release from the Investigative Network.
Please email responses to Heena Patel at Investigative Network,
hpatel@igc.apc.org">
Thanks
LEADERS OF U.S.-RUSSIAN SUMMIT AND UN ENVIRONMENTAL BODY
CHALLENGED BY ENVIRONMENTALISTS TO SAVE WORLD'S LARGEST FOREST AND
SIBERIAN TIGER
NEW REPORT DESCRIBES WILDLIFE WAR BETWEEN MAFIA AND
ENVIRONMENTALISTS IN RUSSIAN FAR EAST
A new investigative report on organized wildlife crime in Russia
is being presented to the U.S.-Russian "Gore-Chernomyrdin"
Commission this week in Washington, D.C., as well as the United
Nations Convention on International Trade in Endangered Species
(CITES) in Geneva. The report describes how the critically
endangered Siberian tiger -- predicted for extinction by
international experts only two years ago -- is making an
unexpected come-back. This temporary reprieve is due to new
environmental enforcement and rural community programs in the
Russian Far East, according to the report, and could be
consolidated to secure the future of the tiger and the world's
largest intact forest system if a newly proposed "Siberian Tiger
Sanctuary" is created. The Sanctuary, which would also safeguard
the livelihood of rural, indigenous communities, was endorsed last
year by Russia's Prime Minister, Victor Chernomyrdin and the
Russian Ministry of Environment.
"The United States and Russia, together with CITES, have an
historic opportunity to help save the Siberian tiger, one of the
most endangered species in the world; ensure the survival of the
Udege people, a highly threatened indigenous community; and the
Siberian taiga forest, the largest source of oxygen left on the
planet," stated the author of the report, Steven Galster of the
Investigative Network. "We urge CITES and the UN to support the
Sanctuary proposal to preserve the progress that wildlife
officials have made in protecting the magnificent Siberian tiger,"
said Dr. John Grandy of The Humane Society of the United
States/Humane Society International, a sponsor of the report.
The main port of the Russian Far East, Vladivostok, is also home
to some of Russia's most powerful mafia organizations, which
tightly control aspects of the illegal wildlife and timber trade.
Between 1990-1994, Russia experienced one of the worst outbreaks
of commercial poaching and logging in history, resulting in a
serious decline in wildlife populations and forest cover. A
growing population of 400 Siberian tigers in 1989 was reduced to
150-180 by 1994-95. The report attributes this decline to illegal
hunting and smuggling operations of criminal syndicates operating
between Russia and at least 7 other countries, including China,
South Korea, Japan, Turkey, and the United States.
New roads, created by logging operations, have facilitated the
poaching. Tiger bones, bear gallbladders, musk deer glands and
other lucrative wildlife parts pass through these channels,
constituting an estimated $10 million dollars worth of contraband
every year, the report says. The full skeleton and skin of a
Siberian tiger can be sold for up to $50,000 in some cities across
the world.
The report, which was also sponsored by the UK-based David
Shepherd Conservation Foundation, describes how:
* poaching of the Siberian tiger has declined 75% over the past
17 months, due to activities of new anti-poaching patrols in
Primorsky Territory;
* anti-poaching patrols are being threatened by the Russian
mafia for exposing underground trade channels for wildlife and
drugs;
* Tiger and other wildlife parts are being smuggled to China,
Korea, Europe, and the United States.
* The Russian Government has appealed to tiger consuming nations,
including the United States and Taiwan, to help finance the
development of the tiger sanctuary.
Twenty-one percent of all remaining standing forests on the planet
are in the Siberian taiga forest. This has attracted timber
companies from the West and Asia whose massive logging operations
have threatened the wildlife and livelihood of rural communities
of Primorsky and Khabarovsky Territories in the Russian Far East.
The proposed sanctuary would halt logging operations in areas
where tigers and other threatened species are found, and in the
traditional hunting grounds of the indigenous Udege people.
According to the new report, while illegal tiger hunting and
smuggling in the Russian Far East are on the decline, the poaching
of bears and other wildlife, such as the critically endangered
Amur leopard, is still a serious problem. Furthermore, poachers
would re-target the tiger if enforcement operations and forest
protection programs are discontinued.
For more information, please contact:
Heena Patel Investigative Network P.O. Box 73214, T Street Station
Washington, D.C. 20009
Tel: 202-332-3639
Fax: 202-387-2590
2/4/96
OVERVIEW & SOURCE
Down to Earth reports on the most recent incursion into indigenous
lands on Yamdena Island in eastern Maluku, Indonesia. 164,000
hectares, or 2/3 of the island, are to be logged. This despite
the fact that the island contains tremendous amounts of
biodiversity, and the Indonesian government has been outspoken
recently concerning its intent to preserve biodiversity. Appeals
for letters are made. This item was posted in econet's
rainfor.general conference.
International Campaign for Ecological Justice in Indonesia
============================================================
LOGGERS MOVE IN ON YAMDENA ISLAND FORESTS AGAIN
The livelihoods of thousands of indigenous people of Yamdena in
eastern Maluku are once again under serious threat as large scale
commercial logging resumes on the island. State forestry company
PT Inhutani I has teamed up with the private company PT Mohtra
Agung, owned by Indonesia's most powerful timber magnate Bob
Hasan, to log 164,000 hectares or about two thirds of the
island's tropical rainforests. Logging in the southern part of
the concession started in July.
The destruction of Yamdena became a national issue in 1992 when
protests against logging led to bloodshed on at least two
occasions. Security forces brought in to quell demonstrations
beat up and shot angry protesters. In 1993, local people with
national and international support brought about a temporary halt
to the logging by the original concessionaire, PT Alam Nusa
Segar. Pointing to research conducted by the Soil and Climate
Research Centre in Bogor, the protesters then argued that the
logging would destroy the island's tropical forest ecosystem,
cause serious erosion, disrupting water supplies and threaten the
coral reefs ringing the island which sustain local fisheries. The
same arguments apply today. Yamdena's indigenous population of
83,000, have nothing to gain from the logging, but face the
destruction of their traditional livelihoods and the erosion of
their culture.
Local people supported by the Jakarta-based organisation ICTI -
the Association of Tanimbar Intellectuals of Indonesia - and an
NGO called Bina Linkungan Hidup are trying hard to stop the
logging through the courts. Their attempt to secure an injunction
against the companies and force an early halt to the logging has
failed. A further suit filed against the Forestry Minister and PT
Inhutani I which calls for a total ban on commercial logging will
be heard in December.
Land rights
===========
Yamdena's indigenous people hold traditional collective land
rights which cover the whole island, leaving no unclaimed or
"empty" areas. But the logging companies and government alike
have consistently chosen to ignore these rights. The only
attention paid to the issue was by PT Mohtra Agung which staged
a ceremony to give the appearance that indigenous clans had
agreed to surrender their lands to the company.
Throughout Indonesia, logging companies are obliged to set aside
funds to improve the welfare of local communities, but no there is
no evidence of this happening on Yamdena. Neither are jobs on
logging concession given to islanders. Meanwhile, if anyone
protests against the companies, they are labelled "GPK"
or subversive trouble-makers, by the authorities.
Biodiversity
=============
Yamdena lies on the so-called "Wallace line" which divides the
two major fauna and flora types of South East Asia and
Australasia. Endangered tree species unique to the island include
Manilcara.sp, locally known as "torim". Yamdena is also home to
a number of unique fauna species including cockatoos and a type
of wild buffalo.
Commercial logging is placing these species under risk of total
extinction. It is highly ironic therefore, that the Indonesian
government has decided to sanction the destruction while
presenting itself internationally as a champion of biodiversity.
The recent meeting of parties to the Biodiversity Convention were
left in no doubt as to Indonesia's commitment to fulfilling its
obligations under the Convention. Actions speak louder than words,
however, and the case of Yamdena illustrates how Indonesia's
commitment to maintaining biodiversity falters when it comes up
against the interests of the loggers and their friends in the
government.
ACTION
=======
Please join the international efforts to stop the destruction of
Yamdena! Write letters protesting against the resumption of
logging and calling for the land rights of local people to be
recognised. Point out the discrepancy between Indonesia's
laudable international commitment to maintaining biodiversity and
the situation on the ground in Yamdena.
Government: Djamaludin Suryohadikusumo, Minister for Forestry
Forestry Building
Manggala Wanabhakti
Jl Gatot Subroto, Senayan
Jakarta Pusat
Sarwono
State Minister for Population and Environment
Jl Medan Merdeka Barat 15
Jakarta Pusat
Loggers: Indonesia Forestry Society (MPI)
Manggala Wanabhakti
Jl Gatot Subroto, Senayan
Jakarta Pusat
Indonesia
World Bank-led donors group:
Consultative Group on Indonesia
Lippo Life Building
Jl H.R. Rasuna Said, Kav B-10
Kuningan, Jakarta 12940
Indonesia
__________________________________________________________________
London,
February 1996
CAMPAIGN FOR THE PROTECTION OF THE URU-EU-WAU-WAU INDIAN
TERRITORY - BRAZILIAN AMAZON
We, representatives of Indigenous and Environmental NGOs and
Indigenous Peoples Groups of the State of Rondonia, Brazil,
identified below, would like to denounce problems affecting
the Uru-eu-wau-wau People and request what follows:
The Uru-eu-wau-wau indian territory is situated in the
Brazilian Amazon, in the State of Rondonia, and was created
by the Presidencial Decree No. 275, of October 29, 1994.
However, this territory has been intensively invaded by
loggers, farmers and occupants that illegally intrude the
protected area. The situation has worsened with the approval of
the Presidencial Decree No. 1775 of 1996, that benefits
invaders of indigenous territories.
1. Hydrographic Characteristics
The headwaters of the main affluents (Jaci-Parana, Cautario,
Candeias, Jamari, Uruupa, Jaru, Muqui, Sao Miguel, Pacaas Novos
e Outro Preto) of the 3 major water basins (Madeira, Mamore,
Guapore) of the state of Rondonia are situated in the Uru-eu-
wau-wau territory.
2. Landscape
The region is filled with scenic beauties, like the Pacaas
Novos Sierra, with its highest mountain at 1,100 meters. Its
scarps form kilometres of continuing walls. The water
resources of the region come from these highlands.
There are archaeological sites , water falls and caves with
ancient inscriptions in the area.
3. Biodiversity
The region has different ecosystems, such as rainforest,
savannah, natural fields and transition vegetation. The
reserve is an escape site for several animals, including
threatened species.
4. Human Presence
The region has been inhabited by groups that have only had
contact with the western civilization in the past 15 years.
These groups are the Jupau and Amondawa, of the Tupi Guarani
family and Kawghibi linguistic group, which still preserve
their traditions. There are 3 uncontacted groups in the area.
All this legacy is being threatened by the invaders.
In fact, in the region called "Burareiro", the National
Institute for Colonization and Land Reform (INCRA) has
illegally settled more than 60 small farmers, which are causing
severe deforestation, killing of animals, and traffic of heavy
trucks and agriculture machinery. They are promoting logging
activities in the area, which are causing severe conflicts
between invaders and indigenous peoples, with many casualties.
These illegal activities are being supported by local and
powerful politicians of the state of Rondonia.
Another serious problem is occurring in the Alto Jaru area,
where 1,000 people have invaded the reserve. Also, in the
Cautario area there is an invasion of miners, and loggers are
invading the Terra Roxa, Serra da Onca and Linha 623 areas, all
within the reserve.
Equally, in the Pacaas Novos National Park, also considered as
part of the Uru-eu-wau-wau territory, one farmer, Jeovau Nilo
Ribeiro, is exploring the wood and cutting down trees,
planting coffee, banana and mango, making use of pesticides.
He is an extremely difficult person and refuses to leave the
area. Another farmer, Beneu, is another invader and refuses to
leave the National Park area.
URGENT REQUEST
We would like to request the help of all of you who are
concerned about the protection of the environment and the human
rights of indigenous peoples. We urge you to pay attention to
what is happening in Rondonia and act on behalf of these
people urgently.
We suggest that you write to the Brazilian authorities listed
below, urging them to take the necessary measures to protect
the Uru-eu-wau-wau territory. Only a few minutes of your time
will be invaluable for the protection of the territory and of
the Uru-eu-wau-wau, as well as Jupau, Amondawa and uncontacted
people living in that territory.
Please, request the following from the Brazilian authorities:
- immediate removal of invaders (loggers, farmers, occupants
and miners) from the Uru-eu-wau-wau Indian Territory;
- enforcement of Brazilian Environmental and Human Rights Laws
(Federal Constitution, Forest Code, Indian Statute, Economic-
Social-Environmental Zoning Law);
- need for continuous control of the borders and territory of
the Uru-eu-wau-wau Indian Reserve and contiguous Pacaas Novos
National Park;
- civil and criminal accountability for the violation of
Brazilian laws.
Please write to the following authorities:
1. His Excellency, Mr. Fernando Henrique Cardoso
President of Brazil
Palacio do Planalto
Brasilia , DF, Brasil, 70150-900
2. Governor of the State of Rondonia
Mr. Valdir Raupp de Mattos
Palacio Presidente Getulio Vargas, s/n
Praca Getulio Vargas
Porto Velho, Rondonia, Brasil
78900-000
3. President of FUNAI (Federal Indian Bureau)
Mr. Marcio Santilli
Edificio Lex - SRTUS
Bloco A - Zona Central
Brasilia, DF, Brasil
70340-904
4. President of IBAMA (Environmental Protection Agency)
Mr. Raul Jungmann
Quadra 05, Bloco H, Lote 5, Asa Sul, 1o. andar
Brasilia, DF, Brasil
70.070-000
5. Minister for the Environment
Mr. Gustavo Krause
Esplanada dos Ministerios
Bloco B , 5o. andar
Brasilia, DF, Brasil
70.068-900
6. Minister for Judicial Affairs
Mr. Nelson Jobim
Esplanada dos Ministerios
Brasilia , DF, Brasil
70.068-900
Thank you for your support!
* CUNPIR - Coordenacao da Uniao das Nacoes dos Povos Indigenas
de Rondonia, Norte do Mato Grosso e Sul do Amazonas
* Associacao Pamare do Povo Indigena Cinta Larga
* Organizacao Metareila do Povo Indigena Surui
* Kaninde - Associacao de Defesa Etno-Ambiental
* COMIN - Conselho de Missao entre os Indios
* CIMI - Conselho Indigenista Missionario
* Forum de ONGs e Movimentos Sociais que atuam em Rondonia
* APIPAM - Associacao do Povo Indigena Parintintin do Amazonas
* OPICS - Associacao do Povo Indigena Karitiana
Please send copies of your petitions to:
Comissao Indigena do Forum de ONGs e Movimentos Sociais que
atuam em Rondonia (Indigenous Peoples Commission of the
Rondonia NGO Forum)
Rua Carlos Gomes, 1001, Porto Velho, Rondonia, Brasil
Phone/Fax: 55.69.2231116
Emai: forumrouax.apc.org
ACTION ALERT! Wis. County & Exxon/Rio Algom draft Local Agreement
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 an attached file.
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.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
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
Content-Type: text/plain; name="ExLocal"; charset="us-ascii"
Content-Disposition: attachment; filename="ExLocal"
Alice McCombs
P.O. Box 573
Shawano, WI 54166
PH: 715-524-5998
FX: 715-524-9958
Email: amccombs@mail.wiscnet.net
Contents:
1. Manually retyped copy (2/3/1996) of letter from Fred W. Kawalski to Mr.
Gerald Voras and Mr. Ray McGeshek, Sr. dated January 3, 1996.
2. Manually retyped copy (2/3/1996) of letter from Fred W. Kawalski to Mr.
Erhard Huettl dated December 29, 1995.
3. Manually retyped copy (2/3/1996) of draft copy of Local Agreement by
Forest County and Crandon Mining Company.
1. Manually retyped copy (2/3/1996) of letter from Fred W. Kawalski to Mr.
Gerald Voras and Mr. Ray McGeshek, Sr. dated January 3, 1996.
Fred W. Kawalski
Attorney at Law
612 Clermont Street
Suite 4
Antigo, WI 54409-1942
Fred W. Kawalski
715-623-5339
715-623-3989
Crandon Office:
300 W. Pioneer Street
Crandon WI, 54520
715-478-3341
Mailing Address
612 Clermont Street
Suite 4
Antigo, WI 54409-1942
January 3, 1996
Mr. Gerald Voras
Star Route
Box 59
Pickerel, WI 54465
Mr. Ray McGeshick, Sr.
Rt. 1
Box 643
Crandon, WI 54520
Re: Local Agreement
Dear Mr. Voras and Mr. McGeshick:
The purpose of this letter is to follow up on the draft of the Mining
Agreement that I had sent to you as part of the review of the Local
Agreement with the Forest County Mining Committee and Finance Committees.
This letter is sent to you specifically since neither of you attended the
last two meetings. At that time it was decided by the Committee that the
terms of this Agreement be kept confidential, at leaste until such time as
it is presented to the full County Board. The matters that are contained in
the Local Agreement, most of which at least were discussed at a closed
session of the Forest County Mining Committee after motion duly made and
seconded to move into closed session pursuant to the open meetings law. I
neglected to mention this in my rush to get out the first draft of the
Agreement to you.
Sincerely yours
Fred W. Kawalski
FWK: dm
c/c Erhard Huettl
2. Manually retyped copy (2/3/1996) of letter from Fred W. Kawalski to Mr.
Erhard Huettl dated December 29, 1995.
Fred W. Kawalski
Attorney at Law
612 Clermont Street
Suite 4
Antigo, WI 54409-1942
Fred W. Kawalski
715-623-5339
715-623-3989
Crandon Office:
300 W. Pioneer Street
Crandon WI, 54520
715-478-3341
Mailing Address
612 Clermont Street
Suite 4
Antigo, WI 54409-1942
December 29, 1995
Mr. Erhard Huettl
Rt. 1
Box 8C05
Wabeno, WI 54566
Dear Mr. Huettl:
This letter is addressed to you as Chairman of the County Board, however,
photocopies of this correspondence as well as the completed Local Agreement
is being transmitted to each member of the Forest County Finance Committee
as well as the Mining Committee.
I am enclosing the entire Agreement, specifically adding pages that have
been addressed by the Committee as well as setting for the inclusions of
the Local Agreement as well as setting forth the inclusions of the Local
Agreement as was decided at our meeting of December 28, 1995.
One area that I had on my notes but neglected to bring up was the questions
of the percentage of reimbursement of fees for attorneys and consultants.
My notes indicated that we were going to negotiate this particular item
with the Mining Company, however, we never did arrive at an exact amount,
that amount being left to later discretion. You will note that I have
inserted in that provision the amount of $150,000.00 which would be
reimbursed to Forest County by the Crandon Mining Company with 50% of the
next $300,000. Admittedly, I just drew this figure on my own, however, this
is on my computer and I can change it upon request.
Having gone to great lengths to get this out as quickly as possible to you,
I would ask that if you or any member of the Committees desire any matter
to be changed, reworded, deleted, or added that they contact me as soon as
possible so that we can have the meeting with Crandon Mining Company by
January 10, 1996. I would propose that this Agreement unless amended by
virtue of telephone contact with the Chairman be transmitted via fax to
Attorney James Houston as well as to Dick Diotte no later than the
conclusion of business on Thursday, January 4, 1996. At that time I will
advise Mr. Diotte that the committee has scheduled a meeting for Wednesday,
January 10 and invite both he and Mr. Houston to attend. I believe it only
fair that we give them at least six days, including weekends, to review
this document. In view of the holiday many of you may not receive these
materials until January 2, however, at least you will have that day as well
as the next two following days in which to contact me. I am advising my
office staff that any telephone calls from any Committee members, or
particularly the Chairman, shall be given priority and I shall be
interrupted so as to take your call.
Accordingly, because of the tight time frame in which we are dealing, I
would respectfully request that each member of the Committee review these
materials as soon as possible. If there is any difficulty perhaps we may
have to put the meeting off by a week. I believe that would be a more
prudent course to follow rather than to rush into this unprepared.
Sincerely yours,
Fred W. Kawalski
FWK: dm
Enc.
3. Manually retyped copy (2/3/1996) of draft copy of Local Agreement by
Forest County and Crandon Mining Company.
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 fo 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, i
mplementation 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.
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 groundst
o 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-pocke 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 anticip
ated 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
ATTACHMEENT "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
BACK TO
*********************************************************************