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Showing posts with label UPX Minerals Inc lease requests. Show all posts
Showing posts with label UPX Minerals Inc lease requests. Show all posts

Saturday, March 23, 2019

Concerned residents speak out against UPX mineral lease requests at DNR public meeting

By Michele Bourdieu

Mark Sweatman, third from left, director of the Michigan Department of Natural Resources Office of Minerals Management, speaks about mineral leases requested by UPX Minerals, Inc., a division of Highland Copper, at a Dec. 4, 2018, DNR public meeting to give information and take comments on the UPX requests. Also seated at the table are, from left, Steve Casey, now retired, former Michigan Department of Environmental Quality (DEQ) Upper Peninsula District coordinator, Water Resources Division; Don Mankee, DNR Forest Resources Division; and Julie Manson, property manager, Lease Management Unit, DNR Office of Minerals Management. (Photo © and courtesy Jeremiah Eagle Eye)

MARQUETTE -- -- Citizens concerned about mineral lease requests from UPX Minerals Inc., a division of Highland Copper, filled the Charcoal Room of Northern Michigan University's University Center for an informational meeting held by officials of Michigan's Department of Natural Resources (DNR) on Dec. 4, 2018. DNR officials provided some information on mineral rights in Michigan and tried to answer questions from the public, but some questions went unanswered.

During the question-answer session of the well attended Dec. 4, 2018, DNR public meeting at Northern Michigan University, residents concerned about parcels nominated for mineral lease requests by UPX Minerals listen to DNR officials' replies to their questions. As monitor of the meeting, DEQ's Steve Casey, now retired, circulates through the audience with a microphone to take questions. (Photo by Keweenaw Now)

Many property owners asked questions related to the fact that, in Michigan, severed minerals occur when the mineral estate, which includes metallic mineral rights, is severed from the surface estate. In this case, one party may own the right to farm the land, build a house, or graze cattle, while another party may own the right to explore for and produce the metallic minerals from beneath the land at the same property, if such minerals exist.

UPX is seeking to lease thousands of acres of State-owned minerals in Marquette County. These mineral properties are underneath private property, homes, camps, rivers and streams, lakes, wetlands -- even nature reserves and the DNR’s own Rocking Chair Lakes. Located 25 miles northwest of Marquette, the Rocking Chair Lakes are a natural area, managed for trout fishing, in a rugged and nearly inaccessible part of Marquette County.*

Granite Cliff Community along (North) Rocking Chair Lake is one sensitive area included in recent mineral lease requests to the State of Michigan by UPX Minerals, a subsidiary of Highland Copper. (File photo courtesy Michigan Department of Natural Resources)

"Our property was nominated, and that's how I got involved, Sue Beckstrom-Noël told Keweenaw Now. "We have a creek that flows into the Dead River basin, and we have wetlands on our property that feed into that creek."

Sue Beckstrom-Noël comments during the Dec. 4, 2018, DNR public meeting at Northern Michigan University. (Photo © and courtesy Jeremiah Eagle Eye)

Some residents, whose properties are outside the parcels nominated for leasing mineral rights, were still concerned because of their own property's proximity to a parcel nominated for leasing by UPX.

Dennis Ferraro, who lives on Eagles' Nest Road, and his neighbor, Amy Frieden, were among the landowners concerned about potential leases near their properties. Ferraro said his property is only about three or four miles from Echo Lake, which is one of the areas included in the lease request.

Dennis Ferraro, who lives near an area nominated for a UPX mineral lease, expresses concern about the public health impacts of sulfide mining. (Photo © and courtesy Jeremiah Eagle Eye)

Speaking for herself and her neighbors, Amy Frieden told Keweenaw Now, "We're all pretty concerned about the health effects that sulfide mining will have."

This detail from one of the UPX lease request maps shows the nominated parcels near Echo Lake (left of center). Green boxes mean State owns mineral and surface rights. Boxes with diagonal lines going one way /// are classified as development with restrictions. Those with diagonal lines going both ways are classified as non-development. Click here for the complete map. (Map courtesy Michigan DNR)

Marcia Gonstead of Big Bay shared her experience living 13 miles from the Eagle Mine, noting concerns about the noise of mining trucks, her health and her water.

Should a UPX mineral lease request be approved by DNR, UPX would receive the exclusive right to explore for the presence of metallic minerals in these areas. A lease alone does not grant a lessee a right to mine. While a decision on the leases of state-owned mineral rights was to be made in February, so far the DNR Web site does not indicate a decision has been made. The local residents who gave comments at the Dec. 4 meeting were unanimously opposed to the lease requests and/or the mining exploration those leases would allow, which could lead to further sulfide mining and threats to the environment.

Videos: DNR officials reply to questions

The first part of the Dec. 4 meeting was devoted to questions presented in written form on cards and to open verbal questions from the audience. Steve Casey, now retired, former Michigan Department of Environmental Quality (MDEQ) Upper Peninsula District Coordinator, Water Resources Division, read the written questions and assisted officials from the DNR's Office of Minerals Management in moderating the meeting.

Julie Manson, property manager with the Lease Management Unit of the DNR’s Office of Minerals Management, replied to a question on mineral rights ownership.

Julie Manson, DNR property manager, explains how mineral rights may be severed from the surface property and how the fact that Michigan is not a recording state makes it difficult at times to determine the mineral rights owner. (Videos by Keweenaw Now)**

Mark Sweatman, director of the Michigan DNR's Office of Minerals Management, explained that when mineral rights are severed from the surface estate, the mineral estate becomes the "dominant estate" and the surface estate becomes the "servient estate." Sweatman also noted that royalties on state-owned minerals are constitutionally protected. Those funds are used for parks and recreation, wildlife, etc.

Mark Sweatman, director of the Michigan DNR's Office of Minerals Management, fields questions from concerned residents at the Dec. 4, 2018, public meeting on mineral lease requests by UPX Minerals Inc. (Photo © and courtesy Jeremiah Eagle Eye)

"People are paying for the resources they're taking from the State," Sweatman said. "We are getting paid for the use of our land or for the taking of those minerals."

On the other hand, Sweatman gave an example of the State of Michigan, as the surface owner, being sued for opposing drilling by an owner of mineral rights under sand dunes. In that case, the court ruled against the State and Michigan had to pay $90 million.

A question from the audience referred to that example in expressing concern that an individual surface-only property owner is in a worse position than the State if drilling occurs on his/her land. Another audience member asked about the possibility of mediation between a property owner and a lessee.

Mark Sweatman, director of the Michigan DNR's Office of Minerals Management, replies to questions on loss to an individual surface property owner when drilling for minerals occurs and on mediation between the surface owner and the lessee. This video clip shows the "standing room only" at the meeting.

Sweatman also replied to a question on monitoring, based on recent exploratory drilling by Highland Copper near the Porcupine Mountains Wilderness State Park. He explained interaction between Highland Copper and the DNR helped avoid surface damage within the park. Sweatman said the DNR required various safeguards to protect the surface features at the park, including drilling only when the ground was frozen. Some damage was done during the exploratory drilling, but it was outside the park boundaries.***

In the case of Rocking Chair Lakes, Sweatman explained the lease classification of "non-development."

Using the example of Rocking Chair Lakes, Mark Sweatman explains that the classification of "non-development" in a potential mineral lease would require a specific plan to protect the surface.

This DNR map of UPX lease requests shows the area of Rocking Chair Lakes (in upper left detail here). Pink boxes mean State owns mineral rights. Green boxes mean State owns mineral and surface rights. Boxes with diagonal lines going one way /// are classified as development with restrictions. Those with diagonal lines going both ways are classified as non-development. Click here for full map of UPX lease requests in this area of Champion Township. (Map courtesy Michigan DNR)

Chris Burnett of the Upper Peninsula Land Conservancy asked DNR officials how they determine value, for example, the value of water rights vs. the value of mineral rights.

Following up on his question, Kathleen Heideman, board member of the Upper Peninsula Environmental Coalition (UPEC) and member of UPEC's Mining Action Group, asked if DNR officials -- before the lease nomination process -- consider their own management plan to determine the actual value of resources that would be impacted should mining occur because of the mineral values below the surface.

Chris Burnett and Kathleen Heideman challenge DNR officials with questions on the value of resources other than the minerals targeted by the mineral lease requests.

Sweatman asked Don Mankee of the DNR Forest Resources Division to reply to their questions on value.

DNR officials attempt to answer questions on resource values, noting that while Rocking Chair Lakes is a sensitive area it can be classified as non-development and still be leasable.

Videos: Concerned residents offer comments to DNR

The last half hour of the Dec. 4 meeting was devoted to individual comments (not questions) from members of the audience.

Marquette County resident Dennis Ferraro commented on mercury pollution from mining, offering facts from recent scientific research, including a study by Charles Kerfoot,  Michigan Tech professor emeritus in Biological Sciences, and his research team.

Dennis Ferraro cites scientific studies on threats to human health from sulfide mining, especially the danger from mercury pollution in local wetlands. Since Ferraro speaks longer than the three minutes allowed for comments, Steve Casey asks him to stop and calls for DNR security.

Horst Schmidt, UPEC president, thanked DNR officials for having the meeting and acknowledged the role played by UPEC's Mining Action Group in calling attention to the mineral lease issue. He also mentioned several ongoing mining projects in sensitive Upper Peninsula areas.

In his comments, UPEC President Horst Schmidt cites the need for this meeting between the DNR and the public and notes how ongoing sulfide mining projects in the Upper Peninsula have been permitted and encouraged by state legislation.

Jeffery Loman of the Keweenaw Bay Indian Community contrasted Alaska, where residents receive royalties from oil, with the U.P., where the potential for a renewable fishing industry has been hindered by clearcutting and stamp sand waste from century-old mining.

Jeffery Loman of the Keweenaw Bay Indian Community speaks about the future economic potential for fishing as opposed to non-renewable industries like mining.

The UPEC / Mining Action Group's Kathleen Heideman commented on why the minerals in Marquette County should be left in the ground and why landowners should be given the right to re-unite mineral rights to their properties. Heideman reminded DNR staff members that the DNR is reviewing the Lake Superior Watershed Partnership's Watershed Plan, which covers most of the area of the UPX mineral lease requests and recommends not allowing sulfide-based mining in these areas. She also explained why the DNR's nomination process should include contacting landowners.

Kathleen Heideman of UPEC and its Mining Action Group challenges the DNR mineral leasing nomination process in her comments at the Dec. 4, 2018, public meeting in Marquette.

During his comments at the meeting, Chris Burnett of the U.P. Land Conservancy, learned that the parcels owned by his group and nominated for mineral lease had been withdrawn. While he was glad to hear that, he expressed concern about the nomination process and whether DNR staff actually made site visits to learn about the areas they were leasing.

As a landowner whose property has been nominated for a mineral lease, Sue Beckstrom-Noël noted that the DNR is operating under certain restraints. She challenged residents to be pro-active and continue to speak out if they wish to change laws in order to protect this beautiful environment.

Chris Burnett of the U.P. Land Conservancy and landowner Sue Beckstrom-Noel offer challenging comments during the Dec. 4, 2018, DNR public meeting. 

Following the meeting, in answer to a question from Keweenaw Now, Mark Sweatman said, "It (the meeting) accomplished all of my goals for informing the public."****

Notes:

* See our May 9, 2018, article, "Landowners alarmed by Highland Copper subsidiary's mineral lease requests; Highland completes Copperwood 2018 winter exploration in Porkies."

 ** See "Digging into severed mineral rights (Showcasing the DNR)," by Michigan DNR.

*** See our May 12, 2017, article, "DEQ cites Highland Copper's wetlands, soil erosion violations from mining exploration in Porkies, along CR 519."

**** For more information on the UPX mineral lease requests, click here and scroll down to UPX Minerals Inc. Direct Mineral Lease Request for additional links.

Friday, November 30, 2018

Environmental and human health threats from poorly regulated mining in Michigan's UP continue to multiply; DNR to hold meeting on Highland Copper's lease request Dec. 4

Click on map for slightly larger version showing mineral lease requests. (Map courtesy Steve Garske and Upper Peninsula Environmental Coalition)

[ANNOUNCEMENT: The Michigan Department of Natural Resources’ Office of Minerals Management will hold an informational public meeting on a metallic minerals lease request by UPX Minerals Inc., a division of Highland Copper, from 6 p.m. - 8 p.m. (ET) Tuesday, Dec. 4, in the Charcoal Room at the University Center on the campus of Northern Michigan University in Marquette. DNR officials will give a brief overview of the metallic mineral lease request submitted by UPX Minerals, Inc., and will provide the audience with the opportunity to ask questions. Questions will be answered as time allows. The following article, by Steve Garske, is a slightly updated version of his article that appeared recently in UP Environment, the Fall 2018 newsletter of the Upper Peninsula Environmental Coalition (UPEC). It is published here with permission.]

By Steve Garske*

On May 30, 2017, Highland Copper Company Inc. acquired approximately 447,842 acres (700 square miles) of mineral properties in the central UP (the "UPX Properties") from the Rio Tinto Group. Then this spring Highland/UPX Minerals requested some 3900 acres (over 6.1 square miles) of mineral leases from the state.

Unlike previous lease requests, which targeted primarily state and commercial forest lands, these potential leases include a state natural area (Rocking Chair Lakes), the Noquemanon Trail Network in the Forestville Trailhead area, and the Upper Peninsula Land Conservancy's Vielmetti-Peters Conservation Reserve near Marquette. They also include lakes, wetlands, streams and rivers, camps, homesteads and residential areas. Affected landowners are understandably upset with the possibility of mineral exploration under their lands and even their homes.

Highland's lease request follows on the heels of the Michigan DNR's handing mineral leases for 15,300 acres (23.9 square miles) of mostly public and private forest land in Baraga, Houghton, Iron and Marquette Counties to Eagle Mine/Lundin LLC in 2017. Soon afterwards, Lundin requested a lease for state mineral rights under Haystack Mountain in Houghton County, which the state gladly handed them earlier this year. Haystack Mountain is a unique geologic feature, an ancient 100-foot high "volcanic plug" that straddles Ottawa National Forest and private land.

Except for Highland's lease request, which is still "under consideration," the Michigan DNR has handed over leases to every square inch of mineral rights that mining companies have requested. Why? It certainly can't be the state royalties. As stated by the state's Metallic Minerals Lease Agreement, "Rental for the first (1st) through fifth (5th) year shall be paid at the rate of $3.00 per acre per lease year, and for the sixth (6th) through tenth (10th) year at the rate of $6.00 per acre per lease year." Lease royalties don't kick in until the 11th year, when rates go to $10.00/acre and up. (See https://www.michigan.gov/documents/dnr/PR4340MetallicMineralLease_197342_7.pdf)

Topping off the state's willingness to please the mining industry was the decision by DEQ director Heidi Grether to overrule her professional staff and hand Aquila Resources Inc. a wetland destruction permit for their "Back 40" mine, even though the company's application failed to meet the requirements of state and federal law.

Sixty Islands section of the Menominee River, riparian wetlands located approximately 200 feet from the proposed Project Boundary of the Aquila Back Forty Mine site. (Jan. 9, 2018, photo by Kathleen Heideman, UPEC's Mining Action Group.)

The willingness of the DNR and DEQ to freely hand out exploration and mining permits can be blamed in large part on a phenomenon known as "regulatory capture." Wikipedia (2018) defines regulatory capture as "... a form of government failure which occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating." A University of Chicago School of Business blogger defines it as "...the tendency of regulators, politicians, and bureaucrats to cater to the interests of special interest groups that are highly informed and not to the interests of the general public" (Rolnik 2017). Regulatory capture can also occur when industry is the only source of technical expertise needed to understand production processes and what might go wrong (Cohen 2018).

Cohen goes on to describe a new form of regulatory capture: the willful rejection of science in setting environmental policy. This form of regulatory capture is based on fantasy and a disregard for expertise. In June Governor Snyder institutionalized regulatory capture in Michigan by passing the "Fox in the Henhouse" bills (Senate Bills 662-654), which let the governor appoint a panel of mostly industry representatives with the power to veto regulations written by the DEQ's environmental and health professionals.

The wild U.P. that many of us know and love is under threat like never before. The government agencies that are supposed to protect it are in large part working for the industries they are supposed to be regulating. It's going to be up to the rest of us to save the wild U.P.

Sources:

Wikipedia. 2018. "Regulatory capture." https://en.wikipedia.org/wiki/Regulatory_capture.

Rolnik, Guy. April 17, 2017. "When We Are Less Interested in the Truth, Capture Thrives." ProMarket: the blog of the Stigler Center at the University of Chicago Booth School of Business. https://promarket.org/less-interested-truth-capture-thrives/.

Cohen, Steve. April 16, 2018. "Scott Pruitt, Andrew Wheeler, and regulatory capture at the EPA." https://blogs.ei.columbia.edu/2018/04/16/pruitt-wheeler-regulatory-capture-epa/.

Editor's Notes:

* Guest author Steve Garske is a botanist and a member of UPEC's Mining Action Group.

** Click here to see detailed maps of the mineral lease requests.

*** See our Feb. 2, 2018, article, "DEQ hearing on Back 40 wetlands permit attracts nearly 500; Menominee Tribe lawsuit seeks federal Clean Water Act jurisdiction."