Commissioners expect a deal on mining

By Jo Rafferty, Staff Writer
Sunday, February 08, 2009 | 27 comment(s)

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Coos County commissioners say they’re optimistic about a chromite mining proposal, after a meeting this week with mining company representatives.

“I thought the meeting was really good,” Chairwoman Nikki Whitty said. “I thought we could move forward.”

Whitty said she expects most remaining issues to be worked out by Feb. 24, when the commissioners will meet again with Oregon Resources Corp.

Oregon Resources has been seeking approval to mine on 2,000 county-owned acres between Charleston and Bandon. At Tuesday’s meeting, company executives announced their interest in testing on more than 6,000 additional acres.

Wednesday’s edition of The World reported that a top executive had threatened to pull out of the county if the land weren’t made available. Dan Smith, the company’s chief operating officer, told the commissioners, “If we don’t get this, we’re heading south to Curry County.”

But commissioners said later they hadn’t taken the statement as an ultimatum.

“I took that being that once they were finished up here, they would move south,” said Commissioner Bob Main said. “I did not take that to mean that they were trying to leverage their deal with us.”

Greg Aldridge, chairman of the South Coast Development Council, agreed that Smith’s statement was not a threat.

“If they weren’t able to renew mineral leases with the county, they would look to Curry County for additional mineral leases to keep the business running,” Aldridge said.

Smith’s exact intent could not be verified. Attempts to interview Smith and company President Cheryl Wilson were unsuccessful this week. But Main shared Whitty’s optimism about the deal’s prospects.

“It seemed to be a positive meeting,” Main said.

Oregon Resources has said its operation will create 70-75 jobs, each paying about $40,000 annually. The company would pay property taxes on a 28-acre processing plant site in Bunker Hill, along with between $1 million and $2 million in royalties for use of county land.

“We want a mutually beneficial arrangement,” Whitty said. “There are people not in support of that project, and we’ve got to make sure their interests are protected too.”

Main said he thinks the company seems environmentally sound, and the noise it produces shouldn’t be worse than what comes from logging.

“They use no chemicals,” he said. “They use water and sand.”

The request for an additional 6,000 acres creates new procedural questions. Whitty said the county’s legal counsel, Jacqueline Haggerty, will brief commissioners on their options before the Feb. 24 meeting.

In an e-mail Friday morning, Haggerty said she hadn’t had time to research all the details yet. However, she said, “Oregon Resources will have to enter into a new exploration agreement and mining lease with the county before they can apply for the required land use permits.”

The commissioners’ meeting with Oregon Resources is set for 10 a.m. Feb. 24 at the county courthouse in Coquille.

As a new commissioner, Main said he’s still getting up to speed on chromite mining, and he welcomes comments and insight from citizens. He can be reached by calling 396-3121, ext. 770, or by e-mailing bmain@co.coos.or.us.
New details on chromite proposal


Numerous issues are in play in Oregon Resources Corp.’s quest to mine chromite in Coos County. Developments this week included:


• ORC announced its interest in testing for chromite on more than 6,000 acres of additional county land. But the company’s geology director, Joseph Drew, said the actual areas mined would be smaller.


“We ask for a lease of the entire section,” Drew said. “It doesn’t mean we’re going to use the whole area from side to side.”


• Coos County Commissioner Nikki Whitty said the council had heard from Oregon Resources’ lawyer about unresolved road maintenance questions. The county wants Oregon Resources to contribute $333,000 on June 1, followed by annual payments of $333,000 and $125,000.


“We got a letter from their lawyer that offers some suggestions,” Whitty said. “They want to wait to make their first payment until six months after their operation begins.”


• Dan Smith, the company’s chief operating officer, said the company has changed its plans for the size and number of trucks it will use. Smith said trucks will haul 30 tons of raw materials each, reducing the number of daily trips to the company’s Bunker Hill plant to 68. Original estimates were for 85 daily round trips, with trucks carrying 26 or 27 tons each, according to Commissioner Kevin Stufflebean.


• Tests last summer showed more than 10 percent chromite content in soil at the five proposed mining sites, according to ORC.


• The estimated duration of mining operations in the county has increased from 20 years to 37 years.


” Staff Writer Jo Rafferty
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Ask them wrote on Feb 13, 2009 11:42 AM:

how much they paid for their last lease, really, ask them . This isn't their first time at THIS rodeo.

Thomas wrote on Feb 13, 2009 7:45 AM:

"... between $1 million and $2 million in royalties for use of county land."

That really should be worded 'for taking the citizens of Coos county's mineral resourses.'

Even that $2,000,000 figure seems unreasonably small considering the fortune this corporation will make from selling our property?

Commissioners gave away our methane for the minimum possible royalty in a transferable and perpetual contract ......... have they become even dumber?

Frosted Flake wrote on Feb 11, 2009 10:41 PM:

Dan Smith said, “If we don’t get this, we’re heading south to Curry County.”

These guys want to mine from Charleston to Gold Beach. And they are breaking every "agreement" they made with us, before they even get started. And they are lying to our faces. $600 a ton my a$$, it is $150, and you can check.

Do you folk what grew up here realize how beautiful this area is? And how ugly a mine can be? What are you giving up to get what a liar tells you he will provide?

To Just the Facts wrote on Feb 11, 2009 11:34 AM:

I have, indeed, been to numerous meetings between the commissioners and ORC. My questions have not been answered. They will be removing water from my aquifer. How will that impact me? They say they won't remove water, which is impossible in order to mine. How will they manage the gorse? According to their permit, their plan is to hand-pick seedlings. Are you familiar with gorse? This is a gross underestimation of the plant. I will continue to ask questions until they are actually answered with honesty.

Kay wrote on Feb 9, 2009 4:21 PM:

To Kay wrote on Feb 8, 2009 12:26 PM:
Kay, you've reached your weekly quoata for complaining. Your complainers account has been deactivated.

Some children NEVER get over their need to wanna be Hallway Monitor !!!

surfer mike wrote on Feb 9, 2009 7:29 AM:

why the name-calling and sneering lack of respect for each other's opinions is such a distinct feature of the world's comment sections needs to be addressed by the readers and those who comment(sadly, i don't think the World will). questioning the motives and patriotism of those you disagree with is a tired and self-defeating gambit, as is the sort of refrain that goes,"go back to where you came from!".....because we're all coming from the same place, so to speak....

TO-Get a Job wrote on Feb 8, 2009 6:04 PM:

When ORC leaves, what then. 6000 acres of garbage real estate. Are you gonna live next to it.

To-Get a job wrote on Feb 8, 2009 6:02 PM:

I have a great job I love. I was wondering, if the golf course has a hard time finding qualified help in your area(Weak Applicant Pool_No Skilled Labor), what makes you think these 75 new jobs are seriously gonna be filled by your residents. They will be guys brought in with more experience for the same pay. And, if your applicant pool is great, Why doesn't Oregon mine their own natural resources and take 100 percent of the take. 2 million for 600 a ton. No good.

Lillian wrote on Feb 8, 2009 2:32 PM:

Is this growth or extraction? When are the Coos County Commissioners going to figure out the difference? There is a serious question here as to whether this threesome has any ability to project themselves or other Coos County resident into the future!

I'd like to hear from anyone who can offer concret information about the number of "living wage" jobs with medical benefits that have been created by this company for Coos County Natives.

Just The Facts wrote on Feb 8, 2009 1:45 PM:

To all the nay-sayers: If you had come to any of the previous meetings regarding the conditional use permit for ORC mining activities you would know that all of your questions have been asked and answered. Stop your complaining and find out for yourself - get off your duff, get involved, and go to a meeting! All the permits are available to the public...check them out - get informed!

To Kay wrote on Feb 8, 2009 12:26 PM:

Kay, you've reached your weekly quoata for complaining. Your complainers account has been deactivated.

How Many wrote on Feb 8, 2009 12:10 PM:

How many of you job-bashers have actually visited the ORC office and asked questions directly to the management? Oh that's right...NONE OF YOU. You'd rather stay in the safety of your home and blog away on a computer about things you don't understand, yet commonly act as experts. Get outta here for good and kneel before those who work and provide you services through their taxes, you leaches.

To Open Bid Policy wrote on Feb 8, 2009 12:05 PM:

That is the most ignorant comment I have ever heard. Competition is good, but required competition is fascist. If a job goes out to bid and no one else bids, you don't require another company to throw their hat in the ring. If a Wendy's picks out a site and wants to build and create jobs, you don't call up McDonalds and tell them to underbid the job! You try to bring in BOTH if you can. GIve me a break. Your armchair business models are asinine. People like YOU are killing this area. Let the people go back to work!

Get a Job wrote on Feb 8, 2009 11:51 AM:

All of you anti-work, anti-business bashers on this message board need to get a job or get the heck out of this area. If you haven't noticed, this place is one of the worst to live in in America because of the poverty, both visible and hidden. The recession is going to make this worse. How dare you deny good living wage jobs to come in for a business that has operated cleanly before (World War II), even before environmental regulation. You make me SICK!!! If you want a job, I propose you start sounding off and letting these anti-jobs folks have a piece of your mind. Let them know they ARE NOT WELCOME HERE ANYMORE. Go live off someone elses DIME!!

Kay wrote on Feb 8, 2009 11:45 AM:

Simpleton that I am, can someone PLEASE tell me why it's good business to cut deals in private, illegally fire the professionals in your Road Dept., then take on massive debt to the county, AND THEN? AND THEN? You hire - at county expense - experts to TEACH WHAT'S LEFT HOW TO PAVE ROADS?

THIS is good governance?

Wyrd wrote on Feb 8, 2009 11:44 AM:

What about the toxicity of chromite mining itself? Ask the old timers what mining once did to this town. Can't we figure out something that creates jobs that WON'T poison our land for our children?

Impressed wrote on Feb 8, 2009 11:43 AM:

I sure am impressed with the weekend business guru's that post here. Thank GOD you are putting your intelligent business savvy to use here rather than helping the community. Please...why don't you tell us some more facts about chromite that you read on the internet...because, we all know that the internet is where businesses gain their advantages when making deals.... *eyeroll*

Open Bid Policy wrote on Feb 8, 2009 12:09 AM:

If there so much Chromite out there, why isn't the County advertizing to other mining companies that it might be willing to lease it's land. Shouldn't there be an open bid for other mining companies to negotiate with the County so we get the best deal for County residents? Let's not just give it to the first company to make a proposal!!!

Lets Think about this wrote on Feb 7, 2009 7:59 PM:

first of all, there is a shortage of chromite across the world, Where are they gonna go? Curry LOL Secondly, 2 million + property tax on a building seems alittle cheap to me for 2,000 acres of a potentially valuable resource. no wonder they want to explore 4,000 more acres. third, is there an exit plan for the wasted land after 2 yeras? Cmon People,

 wrote on Feb 7, 2009 1:37 PM:

Is this the reason Stufflebean laid off 22 workers now instead of letting them work until June?
Because he needed money for this project?
I think you went about it all wrong
Shufflebean!! The road dept. has enough money to run on at least until another year or more, it was sure nice he could make a budget all by himself and decide 22families fate.
I say throw him out!!

Al the Pal wrote on Feb 7, 2009 10:43 AM:

They use water.

How much water? And what impact will there be on others using water in the area?

Likewise with Curry County. The shortage of State allocated water will become a major issue.

Concerned resident wrote on Feb 7, 2009 10:12 AM:

The comment from Commissioner Main, "the noise it produces shouldn’t be worse than what comes from logging" is not well-thought-out. Logging operations are seasonal and do not take place 24/7. Furthermore, ORC qualifies as a new industrial source as defined by state laws, OAR 340-035-0035 and ORS 467.120, and therefore its hours and days of operation may be limited if the noise generated or indirectly caused by mining/hauling activities increases the ambient statistical noise levels, L10 or L50, by more than 10 dBA in any one hour. There are residences within 1/2 mile to the activities, and so they qualify as "noise sensitive areas" under state law. If ORC does not comply with state noise laws, it will not only be operating illegally, but it will be disregarding Conditional 11 of the Coos County Conditional Use Permit. Why would the Commissioners support this upcoming illegal activity? Why do they and ORC continue to minimize or ignore the legitimate noise concerns? Residents deserve to know about ORC's failure to address the noise issue. Think about it: If ORC chooses to disregard state noise laws, what else will they disregard? It's a slippery slope...

Dave wrote on Feb 7, 2009 9:56 AM:

So, like good little old prostitutes, our Commissioners deny the threatening and bullying nature of their "client" (Oregon Resources) and just change into a new outfit and go right back out and stand on the corner in case that client comes back. Even if it means reducing their "income".

To repeat, those 40 thousand dollar a year jobs are not going to go to locals who live here now. They will largely bring in new additional people for this.

We will still have hundreds of trucks per day 24/7 on our roads.

Sad to see our Commissioners get on a track and refuse to see issues outside the view of their blinders.

This is not about growth. This is about crashing forward with whatever client swaggers in and trying to acommodate without limits.

Growth for Coos county wrote on Feb 7, 2009 9:47 AM:

We need growth for Coos County.Lets hope this deal comes through

Observer wrote on Feb 7, 2009 9:37 AM:

So Coos County is going to spend $450,000 to build a road for company that just lost its funding for the processing plant? Mineral rights too...but the facts don't add up. Chromite running out, price quadrupling during a worldwide recession, sounds fishy to me. Has anyone verified any of the statements from ORC? Have they filed a credit application? Who is buying chromite at $600/ton?

Thomas wrote on Feb 7, 2009 8:33 AM:

How about putting into this contract that the ore trucks won't exceed 50 MPH, so Coos residents and tourists passing through can at least have some fair chance of avoiding flying rock damage to our cars?

Randall Patrick McMurphy wrote on Feb 7, 2009 8:31 AM:

What do you mean, ORC isn't threatening the County? And it's working. Before I spent $450,000 dollars, I'd want to know where Smith's $600/ton figure comes from? In January, John Papp, the US Geological Survey chromite marketing specialist, reported $150-$170/ton. Chromite reserves are in the billions of tons, and the largest commercial US reserves are in Montana.


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