County needlessly drags out ORC talks


Monday, May 25, 2009 | 3 comment(s)

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“Dithering commissioners blow chance at $1.5 m yearly revenue”

That’s what the headline will read if Coos County commissioners don’t get on the ball and do something to secure the royalties from Oregon Resources’ chromite mining operations.

ORC has been plodding through the bureaucracy for over three years and still hasn’t got an up or down vote on whether they can mine land on which the county owns mineral rights. They haven’t even been able to get county officials to sit down and negotiate contract terms. The county just wants to send things for the lawyers to negotiate. Lawyers are never in a rush to conclude anything.

Meanwhile, ORC has had little difficulty securing rights from the private sector on similar terms to those offered the county. There are likely sufficient resources available for the project to proceed without the county. It is flat out irresponsible for the commissioners, one in particular, to keep throwing “red herrings” into the debate blocking progress on negotiations. 

Last week, a respected geologist hired by the commission told the commissioners in a work session that it was highly unlikely there were precious metals present in any commercially viable quantities, and even if there were harvestable metals, the county was free to mine the material returned to the pit after the chromite is removed. He also told them that the chances of health hazards arising from the mining process were incredibly remote, because all the elements that might make the mineral hazardous have been present in the soil for eons without a problem; and nothing in the mining process will change the chemical composition of the material. These all are things ORC’s experts have been telling them for three years.

So, commissioners, sign them up or send them on their way and take your chances explaining to the taxpayers of this county why you walked away from a viable revenue source — that poses minimal risk if any — come election time in 2010.  Oh, and we don’t want to hear you whine about timber payments being cut and state mandated budget cuts. This is your opportunity to supplant at least some of those losses; carpe diem.



Ray Penny

North Bend

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J. Randall McMurphy wrote on May 25, 2009 11:01 AM:

Ray, why the big hurry to commit County assets? The chromite won't go away and ORC just might--its stock lost 80% of its value in the last year, dropping from $.45 to $.06 last week. ORC doesn't have the permits to mine the 360 acres they already have because they send in incomplete applications. Now hexavalent chromium has been found in their monitoring wells--so it will be months more before we'll know if they will ever mine in this area. The County isn't going to lose the opportunity to market the mineral rights, but it could lose control of them if ORC folds. Better to wait and see if ORC can deliver the goods--and clean up their mess so that trees will grow on the land again.

Shallow Al wrote on May 23, 2009 1:08 PM:

Ray,

The County is not the only level of government this project is under review by. There are several State agencies who have jurisdiction and some of the questions raised in those reviews have not yet been answered.

Stop blaming the Commisssioners and look further.

den wrote on May 23, 2009 12:36 PM:

"carpe diem" seize the day and place no trust in tomorrow", the ode says that the future is unknowable. Money now, for the future is unknown. Trade our trees for minerals, can we again use the space to grow trees? More research.

Another “red herrings”, is needed to do more research and written report available to the public.

A respected geologist, the best kind, seems to have a different perspective than a gold miner.

The other two commissioners need to do red herrings research also, that is their job, yes I know they are busy with all their organizational duties and responsibilities. but were paying them to do county business and report to the public.

Going private in executive sessions to crank out a deal without the firm foundation of knowledge will give us more natural gas and methanol deals.

The 1.5m, from ORC will go to support West Beaver Hill road, for their operation, not be used for County law enforcement, which two of the commissioners have demonstrated they will put money into infrastructure before law enforcement. Wondering where a “yearly” figure of 1.5M came from?


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