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During a presentation to the Northwest Mining Association convention Friday, Alfers said a new Nevada law repealed the act that allowed Nevada mining to take private homes and ranches for mining, smelting and related activities.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