Also refer to the following
below…..Nevada
mining projects could lose power of eminent domain
Loss of
eminent domain power could spread to other states
Franco Nevada's U.S. ops chief, Steven Alfers,
told members of the Northwest Mining Association that Nevada's loss of eminent domain could spread
to other western mining states.
Author: Dorothy
Kosich Posted: Monday , 05 Dec 2011 RENO, NV -
The decision
by the Nevada Legislature to eliminate the Nevada mining industry's power of
eminent domain could spread to other western mining states, U.S. Mining Law
expert Steven Alfers recently warned.
During a
presentation to the Northwest Mining Association convention Friday, Alfers said a new Nevada law repealed the act that allowed
Nevada mining to take private homes and ranches for mining, smelting and
related activities. However, he noted that eminent domain was usually used to
ensure access to deposits.
The loss of
mining's eminent domain powers stemmed from a 2010 effort by junior explorer Fronteer Gold to try to use eminent domain to condemn about
1,785 acres of the Big Springs Ranch in Elko County for the Long Canyon gold
mining project, which would be eventually acquired by Newmont.
Eventually the two companies settled their differences and Fronteer
bought the property.
The decision
by legislators to eliminate Nevada
mining's power of eminent domain means judges will determine the public use of
land, Alfers advised. However, he suggested there are
ways to cut through the legal processes to keep a mining project underway.
Alfers suggested mining and exploration companies began
early to get a good view of other stakeholders' concerns regarding their
projects.
He urged
mining and exploration companies to use legal transactions "sooner than
you normally would", such as negotiating surface use agreements instead of
obtaining road access based on a handshake with a landowner.
"Do land
exchanges as early as you can," Alfers advised.
Mining and
exploration companies should prepare for conflict and controversy regarding
their projects early in the process, he suggested, and contact mining
associations to help manage the issues.
When no legal
powers of eminent domain are available for a mining project, Alfers said mining or exploration companies should utilize
common law or legal remedies in lieu of eminent domain. http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=140940&sn=Detail&pid=102055
Nevada
mining projects could lose power of eminent domain
Fronteer Gold's 2010 threat to use eminent
domain for its Long Canyon Project is the impetus behind proposed state
legislation to eliminate the law's use for future Nevada mining projects.
Author: Dorothy
Kosich
Posted: Tuesday , 15 Feb 2011 RENO, NV -
As the Nevada mining industry faces a tough legislative session,
the Nevada
Senate Judiciary Committee heard testimony Monday on a bill specifically aimed
at eliminating mining-related uses of eminent domain.
Although
eminent domain is seldom used by modern major mining companies with Nevada
operations, junior explorer Fronteer Gold last year
tried to use eminent domain to condemn about 1,785 acres of private
ranching property for its Long Canyon gold mining project.
Fronteer sued investors in the Big Spring Ranch after these investors turned
down the junior company's offer of US$12 million and an
4.25% royalty for 8,000 acres and about 10,685 feet of water. The
landowners had originally bought the property in 2003 for $2.8 million. The
2010 Fronteer lawsuit sought access to mineral rights
and roads for Long
Canyon under the powers
of eminent domain.
At the time
an eminent domain attorney representing the Big Springs Ranch said he had never
seen a Canadian company try to condemn a piece of private property in the
United States for the foreign company's private use. However, Fronteer's representatives argued the four investors were
trying to stand in the way of a project that would provide new jobs for Elko County.
The
litigation was settled later on that year when the Big Springs investor agreed
to accept $12 million from Fronteer, who announced
earlier this month that Newmont was buying the junior
gold explorer-specifically the Long Canyon project and surrounding properties--
for Cdn$2.3 billion.
In testimony
Monday on Senate Bill 86, which was introduced by Washoe County Senator Shelia
Leslie, Nevada Mining Association President Tim Crowley said "As far as
the NMA is aware there is no evidence that the eminent domain authority that
had been accorded mining companies in this state for over 125 years has been
used other than sparingly, and only when absolutely necessary to allow
significant projects to go forward. Nor is there any evidence that this power
has been abused when invoked."
In his
testimony, Crowley
suggested "the impetus for Senate Bill 86 appears to be a single assertion
of eminent domain by a mining company near Elko last summer. If anything, that
incident, which was resolved through an amicable settlement, shows that those
whose land is condemned are treated more than fairly."
Crowley asserted
that SB86 would invalidate a law in place since 1875 which has long recognized
that mining is a public use of lands and is of paramount interest in Nevada. He noted that Utah, Montana, Wyoming, Colorado, and Idaho all have laws
recognizing the use of eminent domain to allow mining operations to expand.
"Mining
companies are reluctant to use eminent domain and potentially trigger
litigation to secure crucial parcels," Crowley said. "Instead, in the ordinary course,
a mining company will buy land it needs on the open market like any other
entity without any use of eminent domain."
Mineweb contacted two prominent mining attorneys Monday
who both confirmed that eminent domain is rarely used. One observed that a deal
for sale or rent can be made with the landowner rather than going through
litigation. Usually mining operations located on public land can use mining
claims or millsites for those purposes.
Another
mining attorney suggested eliminating mining's use of eminent domain in Nevada
could hurt the ability of clean energy companies, such as geothermal, to gain
access for roads, pipelines, electrical lines and other infrastructure that
would supply "green power" to public utility companies. Because clean
energy companies are mostly private companies, they do not enjoy the same right
of access as public utilities.
Gov. Haley
Barbour of Mississippi recently noted that the likelihood of private property
being taken for federal, county or municipal use "is many, many times more
likely" than the use of eminent domain for private industry. If a state
enacts a prohibition against the use of eminent domain for job creation, he
observed, "every company looking to site a new
facility or significantly add to an existing facility...will know about this
prohibition."
Barbour
reminded the Mississippi Legislature that eminent domain was used to allow
Nissan, Toyota and other major companies to
exist in Mississippi.
"If our state can't assure the company good title for the site for the
project, we will be eliminated from the competition," he warned.
"Site selectors are risk-averse, since the companies they represent often
are investing hundreds of millions or billions of dollars in the project."
In his
testimony Monday before the Nevada Senate
Judiciary Committee, Crowley cautioned that
"eliminating mining as a public use in Nevada law will send the wrong message to
companies considering new and expanded mining projects in the state and may
discourage such projects and the jobs and other contributions that come with
those projects."
"Especially
during these hard economic times, maintaining the ability for mining operations
to expand is crucial," Crowley
emphasized.
However,
several residents of Silver City in Nevada's
Comstock Mining District told the Judiciary Committee that they fear eminent
domain could be used against them for mining exploration.
In 1979 Houston Oil and Minerals used the power of eminent domain
in the Comstock Mining District to condemn private property belonging to a Gold
Hill couple for the Con. Imperial Mine in Gold
Hill, Nevada. The
open pit operation was subsequently abandoned.
Assemblyman
William Horne, D-Las Vegas, testified in favor of Leslie's bill Monday, saying
he also will introduce a bill in the Assembly to repeal eminent domain for
mining.
Meanwhile, Nevada miners are also expected to face legislative
challenges aimed at eliminating the constitutional caps on net proceeds of
mines taxes, placing the independent Nevada
Commission on Minerals under the State Department of Conservation and Natural
Resources, and curtailing mining activities.
Nevada is the top gold producing state in the nation. http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=120580&sn=Detail&pid=72068