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EOMA NEWSLETTER, AUGUST 2012

- Eastern Oregon Mining Association
- 20120803

EASTERN OREGON MINING ASSOCIATION MEETING TIME AND PLACE
The meetings are held on the first Friday of the month. The next meeting is Friday, August 3rd at the Baker City Hall. The building is located at 1st and Auburn Streets in Baker City. The Board meeting starts at 6:00PM, and the general meeting starts at 6:30pm.

9TH CIRCUIT COURTJUDGES ARE TIRED OF THE MAJORITY CREATING ENVIRONMENTAL LAW FROM WHOLE CLOTH

The following quote is taken from the dissenting opinion written by 9th Circuit Court Judge Smith with the Chief judge and 3 other judges concurring. This was regarding the recent case of Karuk Tribe of California v. U. S. Forest Service in the U.S. 9th Circuit Court of Appeals. Obviously, miners are not the only ones frustrated by judges not following the law. Take the time to read the entire dissent, it is revealing.

“No legislature or regulatory agency would enact sweeping rules that create such economic chaos, shutter entire industries, and cause thousands of people to lose their jobs. That is because the legislative and executive branches are directly accountable to the people through elections, and its members know they would be removed swiftly from office were they to enact such rules. In contrast, in order to preserve the vitally important principle of judicial independence, we are not politically accountable. However, because of our lack of public accountability, our job is constitutionally confined to interpreting laws, not creating them out of whole cloth. Unfortu­nately, I believe the record is clear that our court has strayed with lamentable frequency from its constitutionally limited role (as illustrated supra) when it comes to construing environmental law. When we do so, I fear that we undermine public support for the independence of the judiciary, and cause many to despair of the promise of the rule of law.”

The entire case can be read at this link…. http://www.goldgold.com/wp-content/uploads/2012/05/Opinion-6-1-12.pdf

MAINTENANCE FEE WAIVER CERTIFICATION AND PROOF OF LABOR
The Maintenance Fee Waiver form is due on or before September 4 (September 1 is a Saturday). There is no fee for the waiver. Complete the form by filling in the years on line 1 as 2012 and 2013. Line 2 is 2012. BLM requires original signatures and the addresses of all claim owners. Send this to BLM via certified mail.
Remember, if you file a waiver, you must file an affidavit of Assessment work (Proof of Labor) with the County Clerk by September 28, 2012 and file with the BLM Portland Office on or before December 31 (December 30 is a Sunday). There is a service fee of $10. The assessment year you are filing on this year includes work you did from September 1, 2011-September 1, 2012. Again, it is essential that you send your proof of labor via certified mail.

BLM’s NEW REGULATIONS CONCERNING ASSOCIATION PLACERS
This is a tough one for a lot of miners. If you owned more than 10 claims for any period of time during the 2011-2012 assessment year, even though you will only own 10 or fewer claims on September 1, 2012, you will not qualify for the fee waiver. Instead, you must pay $140 per every 20 acres owned. Thus, a 160 acre claim will cost you $1,120 instead of $140 (or nothing if you had 10 claims or fewer last year and filed the waiver).
If you can work it out, let some claims go or do some quit claiming this assessment year to get down to 10 claims or less. You have no alternative this year and will have to pay the $140 per every 20 acres you have under claim, but be sure to file the waiver for next year. Never sign on as a “dummy locator” on an association claim where the intent is to quit claim back to one owner.

CHINA TOP GOLD PRODUCER IN THE WORLD
China produces more gold, as well as aluminum and steel, than any other country in the world. China mined a total of 355 tons of gold, which was by far the largest amount of gold mined for any country.  And yet, they are still buying gold on the open market. An important recent Chinese policy change has been to legalize precious metals ownership by its citizens. Even silver ownership has been overtly encouraged by Chinese authorities. In effect, by encouraging domestic hard asset ownership, this creates a third tier or leg of support for the accumulation of precious metals. This means that China is becoming a global force in the import, production — and now the domestic ownership — of precious metals. The country used to be a net exporter of silver, but it has now become a net importer of silver.
Some analysts, such as Dr. Jeff Lewis, thinks Chinas underlying financial policy is to sideline the U.S. dollar and build its domestic metals inventories, notably of gold and silver, and using these to replace its huge dollar surpluses while prices are cheap.

FOIA FOR WEED LOCATIONS IN THE NORTH FORK BURNT RIVER
It has been about a month since EOMA filed a Freedom of Information Request for the locations of all documented noxious weeds located in the North Fork Burnt River Watershed. The Forest Service wants to add the cost of two full days of weed spraying to every bond ($478.00) even if there are no noxious weeds on site. This is “worst case scenario” bonding and is prohibited by the regulations. When we get a response on our FOIA, we will make the information available to the public.
MINERS JUBILEE
Thanks to the hard work and support of the dedicated members of the EOMA, we have pulled off another successful year of informing and enlightening the public about the benefits of mining. A special thanks to Ken Anderson who tirelessly explains to the public the economic values that are derived from the various minerals of the earth.
Banner Bank and Elk Creek Enterprises (Vern & Alice Knapp) both made $100 contributions to help support the prize money given away in the Panning and Handsteeling contests.

There were a total of 85 items donated for the silent auction. Rare Earth Exploration, LLC (Christopher Arp) and Steve Stebbins not only donated great mineral specimens for the silent auction but also made cash donations to EOMA. Elk Creek Treasures (Ed & Jackie Bechtel) made generous donations for both the silent auction and the raffle. High Bar Mining donated gold for the kid’s panning. There are many others who have contributed lots of time and effort. It takes support from all of us working together to make mining in this country more than just a memory. Thanks for all you do.

RAFFLE RESULTS
Bob Heitmanek won the gold nuggets.
Bill Holloboff won the sack of Gold.
Robert Woodcock won the Bronze commemorative medallion.
Alice Duron won the Silver commemorative medallion.

RESULTS OF OREGON CHAMPIONSHIP PANNING CONTEST
Kids
1st Place Troy Bennett--- Prize Money Won $50--- Time 1:28
2nd Place Zeb Zimmerman---Prize Money Won $35---Time 2:16
3rd Place Kaylen Mosser---Prize Money Won $20---Time 2:29
Amateur
1st Place Shane Boettcher---Prize Money Won $75---Time 1:05
2nd Place Jordan Roberts---Prize Money Won $55---Time 1:14
3rd Place Carsyn Roberts ---Prize Money Won $30---Time 1:51
Professional
1st Place Austin Harmon---Prize Money Won $125---Time 47:5
2nd Place Kenneth Martin---Prize Money Won $100---Time1:10
3rd Place George Martin---Prize Money Won $75---Time 1:26

RESULTS OF HAND STEELING CONTEST

Hand Steeling
1st Place Tyrel Talbott--- Drilled 2 1/4 inches---Won $100
2nd Place Erik Strommer--- Drilled 1 7/8 inches---Won $50
3rd Place Ted Schadewitz ---Drilled 1 1/8 inches---Won $30

NORTH FORK BURNT RIVER SUPPLEMENTAL EIS – Ken Alexander
Obviously, summer isn’t over yet. Over 40 miners are still waiting (six years and counting) for a decision to be made on their operating plans “sometime this summer”. The rest of the hundreds of operations that could be contributing to the local economy are still waiting to even begin the process. The USFS did publish a correction in the Federal Register last month. The Responsible Official to sign the NFBR decision has been changed from the Forest Supervisor to the Whitman District Ranger. So it looks like Jeff Tomac will be signing the decision instead of the Forest Supervisor as was originally planned. Now the first level of appeals will go to Monica Schwalbach instead of the Regional Office. That is assuming, of course, that a decision will be made before the current ranger and supervisor move on or retire.

REP. GREG WALDEN STICKS UP FOR MINERS ON FOREST SERVICE FAILURE
Greg Walden, representative for 2nd District made a short presentation on the floor of the House in support of H.B. 4402. Rep. Walden recognizes that the Forest Service has let the miners of Baker County and the surrounding areas down by not getting their work done in a timely manner. His presentation can be seen on you tube.
http://www.youtube.com/watch?v=_L-TfNNf3zE&feature=youtu.be

NATURE CONSERVANCY STRIKES AGAIN By Chuck Chase
Nature Conservancy is at it again, the Lower Imnaha River corridor is being sold off this month. The Nature Conservancy and the U.S. Forest Service have completed a deal for 1,481 acres for $1.4 million dollars. This land will be added to the Hells Canyon National Recreation Area.
Forest Service says this will complete a three year deal with the Nature Conservancy. The first one in 2010 was 2,022 acres for $1.7 million. The second, last summer, was for 3,032 acres for 3 million.

The money for these purchases was appropriated from the Land and Water Conservation Fund. This money comes from off shore drilling and other sources. It could be going to help balance the budget. Nature Conservancy lost about $2,000,000 in the deal with depressed property prices. Their plan is to buy one more 160 acre parcel to protect nature against man.

This means there will be more private property taken off the tax rolls forever. It also means less money for schools, roads and infrastructure. Plus the water rights to irrigate this land are also lost forever with the sale of this land to the HCNRA.

REVISING THE BONDING MOUS-by Jan Alexander
The EOMA bonding committee, consisting of Scott Guthrie, Jan Alexander, Ken Alexander, Chuck Chase, John Chakarun and Maureen Anderson have corresponded via e-mail concerning the draft bonding MOU received from the USFS, and some of us met before Jubilee to discuss the changes proposed by the Forest Service. Several miners I have talked to are in favor of raising the bond amount, since the MOU runs for five years, and equipment rates may increase before the time to redo the MOU. Call or talk to one of these committee members if you have ideas. Input from all miners is needed.
IMF SELLS TONS OF GOLD
The Government Accounting Office (GAO) just issued a report detailing how the International Monetary Fund (IMF) plans to use the approximately 8 billion dollars in profits it made from the sale of 403.3 metric tons of gold during the years 2009-2010. Interestingly enough, IMF had planned on obtaining an average price of $850 an ounce for the gold. They made a windfall profit because the average price they received came out to $935. If you follow the gold market, you know that gold is now selling above $1600 an ounce. The report has details on where the gold came from, and how much they have left…..very interesting report.

The complete .pdf report may be found at the following link....

IMF: Planning for Use of Gold Sales Profits Under Way, but No Decision Made
for Using a Portion of the Profits. GAO-12-766R, July 26.
http://www.gao.gov/products/GAO-12-766R

FOREST SERVICE RECLAMATION BONDS ARE TOO HIGH- -Jan Alexander
The draft reclamation bonds I have looked at for miners in the North Fork Burnt River watershed are still too high. Equipment removal is one line item that all of us need to look at closely. Lots of miners leave their washing plants on site, since it is time consuming to set these up each year. But miners need to consider removing their mechanized equipment, storage trailers and vehicles each fall. By doing this, you can take thousands of dollars off your bond.

The Forest Service is still adding the cost of weed treatment (even if you do not have noxious weeds) and tree planting (even if you don’t cut trees or your site will naturally regenerate trees). The Forest Service is not doing its job by requiring all miners to add these costs to the bond they post. The Forest Service’s job is to look at each operation in a site specific manner.

Also, be sure the bond takes into account your EOMA bond of $1500 or $3,000. Don’t just accept what the Forest Service sends you and think it is correct. If you want some help deciphering your “draft” bond call Jan at 541-446-3413.

REWARD POSTERS ARE AVAILABLE
The Eastern Oregon Mining Association $1000 reward posters are printed on laminated poster board. Putting these up on your mining site may give the thieves second thoughts about stealing your equipment. The posters sell for $2.50 each and will be available at the next meeting. You can also order one by calling Chuck at 541 523 3285

IN MEMORY OF JACK SIMMONS
Many people knew Jack when he worked as a road grader operator for Ellingson Timber from 1964 to 1983. He was known as “Silent Jack”. He enjoyed prospecting and gold mining. Eastern Oregon Mining Association has received donations in memory of Jack Simmons from the following people:
Julee Hicks, J. Darlene Task, and Guyer & Associates.
Thank you very much for your support.
FOREST SERVICE PROPOSES CATEGORICAL EXCLUSION TO CLOSE ROADS-Jan Alexander
On June 12, 2012, the Forest Service posted notice in the Federal Register requesting comments on allowing them to use a Categorical Exclusion (CE) to remove man-made structures such as water diversions, bridges, roads, trails, etc. They say the Categorical Exclusion is meant to “improve the efficiency of Forest conservation efforts”. The exclusion from full NEPA documentation under an EA or EIS will make the Forest Service’s work much easier in blocking public access to our federally managed public lands. No time-consuming scientific studies will be needed because the Forest Service says the projects they will undertake will have no significant effects and they have lots of experience doing these kinds of projects. They say they just know that the results will be positive for the Forest resources.

There is no mention of using a CE to expand trails for multiple use recreation, conduct timber sales, approve grazing allotment plans, approve mining plans of operation or expand resource development to create jobs. These activities will continue to take decades to approve, while road obliteration and culvert removal can take place almost immediately. You won’t be able to appeal roads being closed, just the method used.

The reason behind this effort is simple; to remove people from the land. The Forest Service is being run by environmental groups like Hells Canyon Preservation Council, Defenders of Wildlife, the National Wildlife Federation, World Wildlife Fund, Nature Conservancy and others too numerous to mention.

If you are opposed to giving the Forest Service a blank check to close any road they want to whenever they want to, comment on this proposal. Comments must be received by August 12, 2012. Reference your comments with “Categorical Exclusions” clearly written on the first page. E-mail comments to: http:/www.regulations.gov, send written comments to: Restoration CE Comments , P.O. Box 4208, Logan Utah, 84323, or fax comments to: 801-397-1605.
Here is a direct link to the page you want: http://www.regulations.gov/#!documentDetail;D=FS_FRDOC_0001-1311

AMERICAN LAND RIGHTS ASSOCIATION, BIG WIN From ALRA Newsletter
The Land and Water Conservation Fund got beaten down in Congress;… er excuse me, I mean the House of Representatives. According to Chuck Cushman it is just a temporary win for us, it will be back soon as part of a giant Omnibus Federal Lands Bill.

Chuck says, “Our support is needed now and that Congress is going to vote on the EPA Corps Wetland Jurisdiction Bill anytime. The LWCF Land Acquisition Funding must be blocked. Essentially stop any Omnibus Federal Lands Bill that goes into Congress. It was mostly Republicans in the House that drew the line in the sand and stuck up for us. Harry Reid will try to pass every land grab bill they did not pass so far this year and more. We stopped the Harry Reid Omnibus Federal lands Bill in 2010 with over 200 bills in it; we need to do it again.”

After the election, there will most likely be a lame duck Congress. That is where all the members of Congress in the House and Senate who have been defeated or retired still get to vote on your future, they are no longer responsible to you. Don’t be surprised if Congress tries to add the LWCF to an Omnibus Federal lands Bill after the election during the Lame Duck Congress. We will try to keep you updated on what happens in the waning months before and after the election.


COURT DECISION ON USFS NOTICE OF INTENT -NWMA
In a split en banc decision, the Ninth Circuit Court of Appeals recently reversed a lower court decision and held that the U.S. Forest Services response to a notice of intent (NOI) submitted pursuant to 30 CFR 228.4 is an \affirmative act or authorization\ triggering the consultation requirements of the Endangered Species Act (ESA).
This 7-4 decision reverses longstanding agency practice and appears to, as Judge Smith said in his dissent, \. . . for the first time holds that an agencys decision not to act forces it into a bureaucratic morass.\
While there are significant differences between a notice of intent under the USFS 228 regulations and a notice of intent under BLMs 43 CFR 3809 regulations, we fully expect environmental groups will look for an opportunity to use this decision to challenge BLMs NOI and seek a court ruling that an 3809 NOI is federal agency action that subjects an NOI to NEPA and ESAs consultation requirements.
There has been no formal announcement by the U.S. Forest Service or the interveners regarding petitioning the U.S. Supreme Court for review of the decision.

EOMA SILVER MEDALLIONS
We sold 9 medallions at Miner’s Jubilee even though they cost more than spot price for bullion silver. There are many people collecting these proof-minted medallions. Of course, real gold in the pan on the medallion is an added value. These medallions are currently selling for $50 apiece plus $5 shipping, handling, and insurance. Due to the volatility of the silver market, these prices are subject to change. You can order one from the EOMA website on the internet, send in $50 plus $5.00, to EOMA, Medallions, PO Box 932, Baker City, OR 97814, or call Ken Alexander, 541-446-3413.

UPDATE ON EOMA’S SUCTION DREDGE CASE AGAINST DEQ- Guy Michael
The Judge recently sent a letter to our lawyer that he had let NEDC withdraw from the consolidated case. EOMA had a separate case filed against NEDC and a separate case against DEQ. We had filed objections to a settlement agreement that DEQ had offered to NEDC.

During the making of this agreement between DEQ and NEDC, the environmental organization said that the agreement would not affect our case against DEQ. This is true; however, it did affect our case against NEDC, because it interrupted the process of proving NEDC did not have standing.

Since NEDC has now been removed from the case, we can no longer pursue them for costs or judgment for lack of standing. The standing issue may come up again though, because NEDC did hint to possibly filing a “friend of the court” brief.

For now, our lawyer has filed an amended complaint against DEQ, because we believe that they purposefully agreed to settle with NEDC to disrupt EOMA’s case against NEDC. We also believe their settlement agreement violates the legislative requirement of public involvement for renewed permitting on the suction dredge permit.

DEQ has claimed that they paid NEDC$7500 and settled, because they thought they were going to lose. We have Senator Thomsen and our Representative Cliff Bentz investigating the reason why DEQ felt they were going to lose.
DEQ defended and answered all complaints from the beginning comment period, which also includes EOMA’s complaint, and NEDC’s complaint; and only now, late in the case when it was about a month or maybe two from trial, DEQ decided to settle with NEDC. The settlement by DEQ disrupted EOMA’s case against NEDC. EOMA should have been a prevailing party concerning the standing issue, and should have been paid costs for their lawsuit against NEDC on the standing issue.
The investigation is not over yet.

EOMA CALENDARS FOR 2012-2013
We are now offering a new 18 month EOMA Calendar with historical mining pictures. It also has date reminders to help you keep your claim valid. It also has addresses and phone numbers of the agencies you have to deal with. So support the EOMA by ordering your calendar now for the price of $10 each, or three for $29 bucks, plus a dollar for each calendar for shipping. There is an order form in the back of the newsletter. You can also call Chuck Chase at 541 523 3285.

EOMA ADVERTISING AND SALE LISTING
The advertising listings are only $1 per month to get your ad listed below. Send your ad to: EOMA, Box 932, Baker City, OR 97814 along with your remittance for each month you want us to run your ad and we will take care of the rest. The number next to your ad is how many months your ad will run. .

WANTED, N.E. OREGON CARETAKER (6)
Located near John Day, primitive, insulated house, wood heat, good water, road & hunting. Off grid – generator. Contact: PO box 8353 spring Creek, NV 89815 for more information. Or you may email: jetteseal@gmail.com

LIQUIDATING EQUIPMENT FROM 40+ YEARS OF PLACER MINING (2)
Equipment includes a 20yd hopper feeder, 80kw Onan generator, 40 and 30 conveyors, 5\ and 3\ slurry pumps, Reichert Spiral concentrator, 5th wheel dollies, lots of sluices, 5yd dump box, electric motors switch boxes and panel boards. Much more! Contact Jack at 208-284-5882.