As everyone knows, ORC (Oregon Resources Corp) wants to mine or explore several thousand acres of Coos County property and are going through rigid permit applications with DOGAMI and other regulatory agencies to mine not just county timber land but Weyerhauser timber property as well. Pursuant to this matter Coos County Board of Commissioners upheld the Planning Commission’s decision to grant a Conditional Use permit authorizing mineral sands mining October 5, 2007.
Recently, as a consequence of the much debated road department layoffs Condition 13 of the Use Permit has received attention and Dan Smith, COO of ORC asked publicly at a meeting held last Tuesday at the Owen Building if the County agreed Condition 13 had been met ORC. Condition 13 says
The Applicant shall be responsible for the proportionate cost of maintenance, repair and upgrades of County roads on the designated transport route… To determine proportionate impact…County shall commission a traffic impact analysis [TIA] on the affected County roads, at the expense of the applicant, which shall include the proportionate cost of all necessary maintenance and repair over the duration of mining operations…
URS Corporation prepared a ‘Pavement Analysis Report’ for W Beaver Hill Road and I have quoted from it before here. The cost of the report was paid for by ORC but it is unclear whether the County commissioned the report or whether ORC did because URS states the analysis was prepared on behalf of ORC. This may admittedly be splitting hairs and not matter one way or the other but I mention it here because in my experience before reading studies I always look to see the conclusions first and who paid for it. Generally, if there is a bias it leans in favor of the party paying the bill.
Nevertheless, Oregon law forbids charging any entity more than their proportional share for ongoing maintenance. In this case, the URS study seeks to determine existing traffic patterns and its continued effect upon the road to determine the County’s rightful share. The URS study indicates W Beaver Hill Road has only a little over a year left and that adding 1″ of asphalt overlay at a cost of $450K will extend the life of the road ten years for existing traffic only. The study is a little ambiguous because it also states absent the improvement existing traffic “is not anticipated to fail the pavement section”.
Failure to add this overlay, however, will likely cause total failure within a year with mining related traffic amounting to a $2.75M total rebuild for the 4.7 miles of road. Commissioner Stufflebean has spoken publicly the County will opt to lay 2″ of overlay in anticipation of the mining traffic.
Condition 13 appears to impose conditions not only upon ORC but also upon the County, a sort of Catch-22. The Planning Commission may have bound the County to committing these funds so that ORC may mine private property, i.e. Weyerhauser. Meanwhile, Weyerhauser, potentially the recipient of a modest 3% royalty, incurs no costs at all.
ORC has promised 70 to 75 badly needed new jobs for Coos County. An phone call and email I sent to Dan Smith earlier this month hoping to get specifics on these jobs has gone unanswered. When mining operations begin on the Weyerhauser site how many jobs start then and how many are directly attributed to the County land? How soon will these jobs begin? Subtracting the 22 employees laid off to fund the road improvements reduces ORCs job offerings to the community almost 30% and will cost taxpayers upwards of $450K.
There is still the public safety issue to be addressed. Larry Van Elsberg, speaking at a BOC meeting shortly after the New Year’s Eve layoffs, recommended the Board hire Public Works Management, Inc a consulting firm. On January 14, Joe Strahl of PWM met with Road Department staff and to evaluate the current status of the department and reorganization. Strahl has worked previously with the County and former roadmaster Van Elsberg.
Strahl filed a report on January 23, 2009, three days after the final day of employment for most of the department.
It is questionable that a 60% reduction in personnel will allow for the same or improved road conditions on a system-wide basis, but the ability of the department to keep up with the needs of the system at lower staffing levels really depends on the line staff and managers who remain and their ability to organize and accomplish the work safely and efficiently.
Strahl makes several observations and believes it is fortunate the County has hired a new roadmaster, John Rowe, with extensive management experience and notes that Rowe acknowledges he may have to hire seasonal or additional full time help. Strahl further indicates the department may have to redefine ‘maintenance’ in order to meet the public expectations, by eliminating ‘hand brushing activities, road patrol, and frequent shoulder maintenance’.
Land use hearings on County property will begin only after ORC obtains mineral rights, a point still in limbo pending the County seeking outside legal advice. At Tuesday’s meeting Whitty and Stufflebean each seemed amenable to Main’s request to mineral expertise before engaging in a deal with ORC, however, at Wednesday’s regular BOC meeting, Whitty seemed less inclined to spend the money. Competent legal advice can often save money and I know my own corporate lawyer defers to a specialist in securities law when such issues arise. Personally, I think it would be money well spent.
Ain’t she just the most accomodating. Just like she didn’t think it was freakin FAIR to charge NW Natural what they AGREED to pay the tax payers who took on that $29,000,000.00 debt for the 12 inch pipeline dream of theirs.
They just itched till their courier Arnie Roblan hand delivered legislation, very unusual legislation by the way, which relieved NW Natural from their fiscal obligations to the taxpayers of Coos county.
What? You didn’t know about that one? Well surely they were careful to ‘inform’ you. Don’t ya member? It was Doc. #4847823729400ABCKELDLD;??????< <<>>>jyy^*()(htgt%%jk///########%%%%%%%%^^^^^&&&&&&&&. There, I’m sure that is how they “informed” your dumb-ass. PAY ATTENTION NEXT TIME.
So perhaps Witty believes this Method of Madness is working, you know to lure all this business into the county.We just can’t keep up with the job applications can we? Lets see, pipeline? No. Airport? Just fired the last of the parttimes, NO, Railroad Train? NO. Mining? NO.
How many more suckers are out there?
Enterprise Zones, deferring income payments, subsidizing leases is what is bringing these good times for the county? (shhhhh….sometimes it’s just best to let the ‘touched’ continue with their fantasies, I understand the delusional can get quite violent when confronted with the fact they ARE behaving in a delusional manner) She might possibly respond with fiercer, deadlier Domestic Weapons. I tell ya when the cleavers and kettles come out we’ll know we’ve gone too far. I’ll call Martha Stewart.
OR THE COPS.
Course we can’t ask, because Nikky and her Egg Timer Extraordinaire will shut ya up on that one.
Nikki is very accommodating towards struggling international corporations. She is very kind, she wants to give them a leg up and relieve their start up costs since they have not secured the $45M capital required yet and have no mineral leases. How kind and thoughtful… Perhaps if they just budgeted for $45,450,000 we would all be well
“Stufflebean projected ORC would begin making payments June 2009. Dan Smith of ORC stated permitting and other issues would delay the company contributing to road maintenance until at least June 2010. Stufflebean replied,†Oh, something like were going to spend it anyway, on something? The meeting between Oregon Resources Corp. and South Coast Development Concil and the Coos County Commissioners was held on 2/3/2009, 10 am.
It’s all about timing:
It will take 2 years to explore, 8 years to work out the plan, and then somewhere in there is the land use permit process
ORC is not ready to pay the County their portion of the beaver hill road project. It will be Feb. or 2nd quarter 2010, or more before they start construction of the 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 Stuffebean was expecting the payment to start this June 09.
So, as described by ORC, the first pilings for the plant will go in in February 2010, or maybe as late as May or June, 2010. Construction time is 8 to 10 months. Then, after 6 months of production or all the permitting completed, they will consider funding, if and as agreed upon the amount Kevin wants for the roads. Kevin wants to put money in reserve or into the road now, and wants ORC to start paying their share now. They are, I guess, are not required to, and are not going to spend money for our roads they are not using.
What is that time line. Construction starts, May/June 2010. 10 months plant construction completion. March 2011. A variable Production starts, six months, October 2011 the county could see some money for the roads. Another variable, not all permits competed, six months pass, waiting holding pattern. How much money will the county be receiving for the exploration, mining, leases, with options, in that meeting on 2/24/2009?
Nikki does not think they should pay, they don’t have their permits or building up. Kevin thinks the County should make its $450,000 investment now on the road in —-hill. or it will get spent somewhere else. Nikki, “put in dedicated fund.â€
Tax dollars are supposed to go for the public good. Certainly I see where maintaining roads to secure public safety and enable commerce is for the public good. Jobs are definitely needed.
Still this circumstance is confusing because it appears the road will meet existing county needs, including the logging traffic for years to come.
Included with Strahl’s report is a list of priority road projects and W Beaver Hill is not on that list (Beaver Hill Lane is but way at the bottom).
There is no clear indication when ORC will begin paying its share of road maintenance or hiring to replace the 22 jobs lost.
A very complete update. I was just in the process of doing a similar type report, and doing some research along the way, so was not ranting so much, just going slow and finding out new stuff as I went. I don’t want to repeat too much of what you have covered.
There is so much information in your piece, and so many unanswered questions.
Kevin did want to take the credit for condition 13. to get ORC to cover road maintenance. And to require ORC to pay for the road study. The Dolan and Noland, (spell) court cases as to “proportionate”
share cost for maintenance was left to producers of the TIA, traffic impact analysis, to determine the “proportionate” ratio to each party. Now there is a case for a second opinion. It like, we pay for it and will tell you your cost. From this report has come how much each will pay, but does not say when. That has been left to interpretation.