In an email today to fellow commissioners Whitty and Stufflebean as well as local media, Bob Main makes the following suggestions –
Some thoughts on the Chromite Mining issue.
1. 75 jobs will be a boost to the local economy.
2. The ancillary economic impact of related sales will help our local economy.
3. The exploration agreement should be separate and distinct from the actual lease of the property for mining purposes.
4. Coos County should be due diligent and perform their own exploration to determine the extent and content of the minerals / metals that the citizens of Coos County own.
5. The lease by Coos County should only be for specific minerals i.e. chromite, garnet. All other minerals / metals should be a separate contract.
6. Coos County should enlist the help of an attorney that specializes in mineral leases.
7. Royalties, etc. should be thoroughly researched, thereby, providing the citizens of Coos County the best return for their minerals / metals.
8. The mechanism for payment of the royalties should be thoroughly researched.
9. 1.34 million tons of unrefined chromite ore per year may contain 1 ppm (parts per million) of platinum would mean approximately 40,000 troy ounces of platinum per year. Platinum is currently at about $1,050 per ounce x 40,000 ounces = $ 42,000,000 per year for the citizens of Coos County. Gold is currently around $900 per ounce.
10.What happens to the lease if ORC goes out of business? Should the lease terminate and not be
absorbed by another company.
11.$450,000 road improvement in the URS report. Who should bear the burden of this cost?
We need to be very cautious and perform due diligence before entering into an contractual arrangement!
Bob Main
February 13, 2009
Bob is absolutely right the County needs to do its own due diligence before signing any deals (or letting go any more County employees) with ORC or any other company seeking to do business with County resources.
Important Chromite mining meeting the public needs to know about. February, 2/18/2009 executive meeting, briefing from County council to tell the Commissioners just what they can publicly, talk about. February, 24 2009, meeting and location not posted at this writing.
Attending the February 3, 2009 work session between Coos County Commissioners, Oregon resources Corp. ORC, and South Coast Development Council SCDC, was a discovery process. Nikki Whitty “learned so many things†Kevin Stufflebean, did not know, ORC, wanted to look at more areas, about 6000 acres more. Read on, there are more discoveries.
The county has send to ORC on November 12, 2008, some type of document, resulting in ORC requesting this meeting for clarification of the requirements in the document. I learned at a recent time that there may have been two separate initiations of documents by the county in November 08. To look at the documents it is required of me to make a “public records request†I did that on 2/13/08. I have $5.00 in that deal so far.
Some of the Counties revenue sources from entering into an agreement with ORC, would include: Leases, land agreements, mineral rights agreements, conditional use agreements, royalties, and taxes.
Under taxes, Nikki described how the ORC processing plant, more than likely would be able to receive the tax breaks for an enterprise zone. First three years. Then an extension of two years, given by the county commissioners. Then the possibility of extended extension requiring a granting by the state, the taxing districts and the county commissioners.
This is the meeting where Stufflebean and Nikki found out their road department reorganization master plan, action, had a couple of broken legs. ORC commissioned a company called URS Corp. in late 2007 to conduct, and prepare a, Pavement Analysis Report. This report was completed June 8, 2008. The report subject, West Beaver Hill Road. In my opinion the County reacted to this report by preparing an unknown and unpublicized reorganization of the road department to make available funds to maintain for one to 10 years the West Beaver Hill Road so ORC could haul their product to their processing plant in Bunker Hill.
The URS report said the County needed to maintain the road, and recommending three Alternatives to do so. However, URS conclusions, page 8-4 “The alternatives ……will allow ORC to use and maintain West Beaver Hill Roadâ€. The report implies, ORC will be the responsible party in maintaining the road for their mining operation, with the County doing the work, because its their road. There are three alternatives relating to applying additional asphalt of from one to four inches over a 10 year period or possibly a complete rebuild, down to the substructure. Alternative 1, “requires the County to invest about $450,000 prior to the start of mining operationsâ€. Was there an agreement in writing between Coos County and ORC concerning the $450,000, don’t know. Is it not clear just who the responsible party is, or the funding, to pay for the road maintenance for ORC’s mining operation. I say yes.
What I do know, ORC is not ready to pay the County their portion of the beaver hill road project. That indicates their was an agreement. Was it in writing, public document. It will be Feb. or 2nd quarter 2010, or more before they start construction of the processing plant. and an 8 to 10 month construction period puts them into 2011-12. “Timing is bad now†for ORC to contribute to the roads, in fact not this year. They are considering that won’t happen until 6 months after production begins, and or 6 months after all the permitting. They cannot control the permitting. Bob Main thought that would be after 2011, Nikki Whitty did not think Kevin Stufflebean was expecting the payment to start this June 09. You can see how all three commissioners are on a different page. Stufflebean did expect ORC road payment this June 09, thus the reorganization of the road department budget.
That plan for reorganization of the road department includes creating reserve fund. Starting the 08-09 year with a $400,000 infusion, and then a 2 million infusion each year for five years, totaling $10,400,000 over a five year period. That department is fat in funds. There is more, but now the citizens of Coos County need more public information about the Counties current and future plans for Chromite mining, how ORC may fit in those plans. Information from the County Commissioners, Will they step up to the plate?
Audio DVD reference from Mary Geddry
Denny Powell
Their eating crab out there. The biggest telling question will be, at the executive session on 3/18/09 9 am, will SCDC, and ORC, be there. If so the Commissioners are doing more than just finding out what they can talk about i.e., mining agreements in process or in place.
These are all questions to ask at the next commissioners meetings regarding ORC. Perhaps they have already been addressed to everyone’s satisfaction.
Going to stop by the crab feed in Charleston today with my daughter and see what is going on,
Ciao
Posting a bond. Gee, don’t contractors have to do things like that. Then when doing government jobs, I am not sure, but there regular bond to be contractors, is not enough. Of course us tax payers pay it because they receive a government prevailing wage when working on a government contract job. another, oh well.
Well, it does seem the public has the right to know the solvency of the companies the County chooses to do business with. It also seems like it may be up to the commissioners to demand protections such as a reserve fund or bond to repair any environmental damage.
In order to find out form the County if ORC has submitted a Business plan or balance sheet, would require a public records request.
http://www.co.coos.or.us/publicrecord/index.html
I would bet because of the sensitivity of the situation, and because I do believe the county is in Negotiation with doing business these items would either be mostly lined out in black, or stalled or not available. Try to get them from ORC, maybe SCDC could help with that.
One consequence of the road crew layoffs is that more people are paying attention to Channel 14 broadcasts and attending the regular and special meetings, a good thing.
Am wondering if ORC is adequately capitalized and has a reserve fund in the event they damage County property. Has anyone seen a business plan or balance sheet?
You are right, lots of people need to attend these meetings.
We need a giant gathering at he Commissioners meeting on 3/18/09, it will probably start at 9:30. Be there as close to 9 am so the Commissioners will see the support for open and exposed County Business.
http://www.co.coos.or.us/meetings.htm
The meetings are posted through 2/18/09
Then at the 2/24/09 meeting work in process about mining in Coos County we need a gigantic gathering of concerned citizens. If the Commissioners have not signed our rights away at the 2/18/09 executive meeting then there is still hope.
Thank you Magix. Finally !! We have an actual educated individual to do the right thing.
Yeah, now we have to make sure the Commish complies, period!!
This is sure to make the ponies whinnnneeeeeee.