OCR Text |
Show illlllllHIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIllllimilllllllllllllllllM Western Resources WRAP-UP iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiwMi iiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiuiimiiiiiiiM" Mining problems Mineral leases... By Helene C. Monberg Vernal Express Washington Correspondent Washington Profound changes are taking place in the domestic mining industry in-dustry that will have lasting impact on this critically important segment of our economy, according to Robert C. Horton, director of the U.S. Bureau of Mines. Horton outlined the problems which are endemic in the mining industry during a long interview with Western Resources Wrap-up (WRW) on Aug. 30. As one who has been associated with mining all of his life, Horton is pragmatic about mining. "Solutions to the industry's problems must come from the industry itself, not from government," Horton maintains. Government policies can help or hurt the industry, but they can't "save" or rev up the the troubled domestic mining min-ing industry, he told WRW. A major concern of Horton and other key officials of the Bureau of Mines is that "80 percent of the 1983 graduates in mining engineering at a top university have not been able to find jobs in the mining industry." That contrasts con-trasts with the situation in recent years when college graduates with mining degrees "were offered two or three jobs" per graduate, Horton said. "I have been getting a lot of calls from people for jobs in the Bureau of Mines," Horton said. "We aren't hiring hir-ing people; we are riffing people." American colleges now graduate more than 700 new mining engineers annually, annual-ly, according to the latest figures. Contraction Con-traction of the industry reduces the number of new hires. Coupled with the inability of the mining min-ing industry to take on trained mining talent is the disappearance of the small miner who has become a relic of the past, according to Horton. "There are no small miners any more in this country. The small miner largely large-ly disappeared in the 1950's," with the winding down of a tungsten exploration explora-tion program under the Defense Production Pro-duction Act, he told WRW. "We have not provided a place for the small miner in this country, unlike Canada. Canada calls its small miners its junior mining industry. Our small miner has disappeared because he has no place to sell his product. There are no custom mills left for him to ship his product ore to," Horton said. Horton does not regard the weekend prospector in the Southwest as a serious miner. Prospecting is just a weekend diversion for him, not his livelihood, according to Horton. DE FACTO WILDERNESS, LAND-USE HASSLES The mining industry is also being hurt by the tie-up of federal land in de facto wilderness, Horton told WRW. "Exploration is down because mining companies are concerned about the high probability of multiple law suits being filed against them if they explore ex-plore in de facto wilderness areas." he is not talking about public land within the National Wilderness System or the National Park Service. His reference is to public land in wilderness study areas and to area peripheral to designated parks and wilderness. It has been estimated that "between 40-68 percent of all public land is in de facto wilderness," Horton states, with the bulk of it in Alaska. It's hard to get an exact "fix" on the problem because often land in remote areas is not surveyed, and the land title is not fixed. fix-ed. Mining companies have lost law suits in recent years where their mining min-ing activities are on non-wilderness public land but can be seen from designated wilderness or park areas. This puts a damper on mine exploration, ex-ploration, he noted. "I'm so bloody concerned about this because once an area is designated as wilderness it is in limbo for an eternity" eterni-ty" relative to both exploration and mining. Some new techniques are being be-ing perfected to find and develop mineral deposits at minimum disturbance distur-bance to the land, he pointed out. Some could be used that are compatible with wilderness, in certain instr ces, but a de facto wilderness tuJ public relations rela-tions bar their use, H-., ton observed. The Administration has tried to ease this problem by wiping out old withdrawals. "Obsolete land withdrawals that kept a total of 10.2 million acres from being administered under the mining and mineral leasing laws have been revoked," and this work is continuing, Horton said. It has also been conservative in backing more wilderness proposals. Land-use planning is still another problem for the mining industry at both the federal and local levels, Horton Hor-ton told WRW. This problem was summed up in a recent Bureau report: "Because of the inability to accurately accurate-ly assess specific valuable mineral deposits, land use Planning, by its very nature, seldom can account for the prospective mineral use of land, and consequently planning decisions often pre-empt the search for deposits and their subsequent development." Horton gave Anchorage, Alaska, as an example of the failure of land-use planners to allow for the quarrying of sand and gravel in the area. "Although Anchorage has some of the best sand and gravel deposits in Alaska, it has to bring in these materials. That makes construction more expensive," Horton said. DECLINING CLOUT Bureau studies indicate that minerals have declined as a factor in our gross national product, as the nation's na-tion's economy is transforming from a goods producing economy to a services-oriented economy. Along with this trend has been a decline in the influence in-fluence of the Bureau of Mines in the Interior Department and in Congress. For example, the old Sub-committee on Mines and Mining of the House Interior In-terior Committee became the Subcommittee Subcom-mittee on Mining, Forest Management and the Bonneville Power Administration Administra-tion under the chairmanship of Rep. James Weaver, D-Ore., early this year. Asked if this trend concerned him by WRW, Horton said it did. He said he thought the missions of the Bureau of Mines have stabilized recently, and he does not see any further erosion of the Bureau's work, now limited mainly to non-fuel minerals research and technical information. It lost its enforcement en-forcement of health and safety regulations regula-tions in mines to the Mine Safety and Health Administration (MSHA) in the U.S. Department of Labor in 1973. It lost its energy research mission to the Department of Energy and predecessor agencies in the mid-1970's, and it lost its work on mined-land reclamation to the Office of Surface Mining, also in the Interior Department, last year. Horton told WRW it was not his place to comment on the way that Congress Con-gress operates. But he added, "There are fewer and fewer people on the Hill (i.e., in Congress) familiar with the mining industry, altho I have been impressed im-pressed with the grasp that some have. Rep. Sidney Yates is no slouch when it comes to mining." Yates, D-111., D-111., is chairman of the Interior Subcommittee Sub-committee of the House Appropriations Appropria-tions Committee with jurisdiction over funding for all Interior agencies, including in-cluding the Bureau of Mines. BIG PICTURE The basic problem in the mining industry in-dustry is that domestic sources, for one reason or another, are unable to supply America's needs for critical minerals. A report issued this year by the Bureau of critical minerals stated, "In the early 1900's, imports consisted primarily of the relatively few minerals that could not be produced in the United States, and also for the most part, that had limited specialized specializ-ed applications." Imports began to increase in the 1920's, took a big spurt in the 1970's, so that by 1981 the United States had become dependent on imports for about 25 percent of its minerals consumption. con-sumption. By 1981 this nation had become import-dependent on more than half of 25 critical minerals heeded heed-ed for economic stability and growth and for military security, the Bureau of Mines report stated. Among these critical minerals which the United States must import are bauxite for the manufacture of aluminum, tin, platinum-group metals, chromium, manganese, vanadium, cobalt and chromium, "all vital to the economy and the defense" of this nation and its allies, as well. America's allies are far more dependent depen-dent on mineral imports that it is. Meanwhile, Horton told WRW, a number of the nations exporting minerals to this country "have gone into in-to the vertical development of their mining industry, so that we have to import im-port aluminum (not bauxite) from Australia, and ferro-manganese and ferro-chromium from South Africa instead in-stead of manganese and chromium." This has two effects on the domestic , mining industry and economy. It provides pro-vides increasing competition to the processing portion of the domestic in- dustry while increasing the cost of mineral imports. Among the problems that the domestic industry has had to contend with in recent years are weak demand, low profits, layoffs and plant closings, the increasing costs of raw materials and energy, a financial squeeze that has made it hard to modernize old' plants, and higher environmental standards stan-dards which have increased costs of doing business, Horton said. Horton uses the copper industry as an example of the problems of one segment seg-ment of American mining, and the Bureau of Mines on Aug. 31 updated where this industry now stands, at the request of WRW. In copper, according to the Bureau, foreign copper products have a clear cost advantage over the domestic industry in-dustry because U.S. copper mines work some of the world's lowest-grade ores, while U.S. copper smelters must cope with some of the world's highest environmental costs-and these costs . are on the rise. It's expected to cost 23 cents by 1988 to produce a pound of U.S. copper under the emissions standards stan-dards of the Clean Air Act. Most foreign producers do not face such costs. Continued from page 1 Some community officials contend that Uintah County is not rightfully getting their "share" of mineral lease money, because of recent use of the money to balance the state budget. Mineral lease money is split between bet-ween the federal and state governments. govern-ments. Each receives half. The half received by the state is split in several ways. Higher education gets 33 percent. per-cent. The Community Impact Board gets 322 percent. The state geological Survey, the state board of education, and the Utah State University Water Research Lab each gets 2V4 percent. The remaining 27V4 percent is left to the state legislature to use as they see fit. However, there is one stipulation mandated by state law, that priorities should be given to areas impacted by development of mineral leases. Similar language is found in several places regarding mineral lease money. The Community Impact Board is also expected to give priority to energy impacted areas. The problem with the wording is defining "priority." "priori-ty." The concept of using the federal lease money was to help those areas impacted by energy development, at least to a certain extent. There are different theories about how mineral lease money should be used. us-ed. Opponents of mineral lease money say there should be no lease payments, since all they do is increase the cost of energy producing minerals, and make it more difficult for American com- Airport... Continued from page 1 Tentative plans for the federal money, if received, will be for land acquisition, ac-quisition, extending the north-south runway, resurfacing the taxiway and then if there is money left to improve navigational aids. The federal money, although it is available, has to be applied for and requires re-quires local participation. So all projects on the airport are pending said Neal Domgaard. "But we see that money as ours," Anderson said, "and we are pushing to get it." The just under $4 million dollars is taken from local gas and airport taxes. Bids were let, when money was available for a new terminal building, but the bids were all rejected because they came in too high. Also, the availability of the fund has since vanished.. ........ "If we could have been 90 days earlier, the funds would have been there," Anderson said. Anderson said the airport board intends in-tends to submit a plan to get the money that would show city, county and state participation. But meanwhile, the parking lot north of the present terminal building will be without a terminal building as it has for about a year. School... panies to compete in the world market. Proponents of the lease money say it is imperative that companies com-panies help communities who are impacted im-pacted by energy development, and this is the most viable way to accomplish ac-complish that. Other people say the companies are getting rich from selling sell-ing a commodity which essentially belongs to all citizens, and they must pay for that privilege. Some of these advocates say there should be no priority placed on the money, but should be used as general funds. Utah State law has attempted to cover all bases in their allocations. Especially in energy rich Uintah County, Coun-ty, many people think that more federal lease money should be coming back to the area. There is also a controversy concerning concer-ning how the money should be allocated, whether in grants, loans or both. Some say there should be no grants. Loans, even at a low interest rate, would perpetuate the fund for a long time before it would lose out to inflation. in-flation. Naples City is currently in the process of attempting to bond for $1 million to secure a loan from the Community Com-munity Impact Board for road improvements. im-provements. The combined interest rate on that $1 million is only 3 percent. Nonetheless, the Community Impact Board would eventually get the money back to be reused for other projects. There are also advocates of the Community Impact Board giving all the money in direct grants, specifically specifical-ly to areas directly impacted by energy development. There have been many claims that the Community Impact Im-pact Board has given both grants and loans to communities that have not been impacted by energy development. Another area of current concern has been the bonus money paid by companies com-panies for federal energy leases. The major concern has centered around $50 million paid by the White River Shale Corporation for oil shale tracts Ua and Ub in eastern Uintah County. At least $15 million of that money was taken as general appropriation by the Utah State Legislature. Part two of this article will deal with mineral lease money and bonus money more specifically. It will also look at where the money has gone and how local officials feel about how the money has been allocated. Wednesdoy, September 7, 1983 VeMal Expf6SS 3 PUBLIC FORUM LETTERS TO THE EDITOR What is your opinion' The Express welcomes letters from its readers concerning any subject pertinent to the Uintah Basin While there are no restrictions os to contents or reasonable length, letters must be submitted exclusively to the Express anil bear the writer's full name, signoture. phone number and oddress Names must be printed on political letters but may be withheld for good reasons if requested on others. All letters are subject to condensation. Continued from page 1 By law the school district must release students from public school if they attend a state approved home school. Board member Morrill moved that the requested be denied. "They (home schools) have been tested in achievement achieve-ment programs, and I won't be a party par-ty to it," Morrill said. Board President Gary Taylor explained ex-plained that the releasing of students to attend a home school as required by state law, isn't approving of students to be taught at home. Verlin Vincent, board member, agreed to the Morrill motion and seconded it, but the three other board members opposed the action. Garth Atwood moved the release of the students. Gary Taylor and Thomas Howells favored the motion, and it passed. As a result, the Bureau told WRW on Aug. 31, strong foreign competition has brought on widespread mine closings clos-ings and cutbacks in the U.S. copper industry. In June, U.S. copper mines were operating at about 62 percent of capacity. Many of the largest U.S. mines were closed, and others had cut production. Two of the 16 primary smelters were shut down; production of the others was running at 53 percent of capacity. One of the nation's 12 copper cop-per electrolytic copper refineries are shut down. Foreign imports to date for 1983 are more than double the total volume of copper imports in 1982, the Bureau said. Horton told a mineral outlook conference con-ference in Ottawa, Canada, on May 18 that a number of foreign governments propped up their copper industries by subsidies during the recent recession to maintain employment and production produc-tion schedules. "Consequently," he stated, "the burden of balancing the copper market in times of weak demand de-mand falls on the free market economy countries, most notably in the United States, Canada and the Philippines." Even so, Horton predicted, "U.S. copper will regain essentially all of its lost capacity," (To be continued next week.) Cheap fuel Dear Editor: Boy! How I hate to be ripped off and we get it in so many different ways nowdays. I'm sure others feel the same as I do. Well, I'm going to tell one and all who might be interested how they can save close to two-thirds of the cost of the fuel' for their gas lanterns arid gasoline stoves. I bought and used the "lead free" supreme gasoline and it works every bit as well as the fuel put out by Coleman's. Col-eman's. I do hope that you will print this letter. A.E. MASSEY Sell it fast ADVERTISE in the Vernal Express 789-3511 If you have a News Item call the Vernal Express 789-3511 STOP LOOK. LISTEN... AGAIN. SCHOOL'S OPEN I hen youVe got a bright business idea, let First Security shed some light on your financing needs. New ideas are the basis of progress and growth. In the same light, First Security has established a bright record of financial support. For over 50 years this involvement in each community we serve has played a major role in continuing the development of hundreds of business opportunities. We understand the importance of timely financial commitment. CASE HISTORY 33 A local photo enthusiast came to First Security Bank for help in restructuring the financing needs of his newly organized fast-. service photo processing lab. Aware of the success of similar businesses in other areas of the country, First Security Bank loaned the funds required. With a lab set up of state-of-the-art equipment and a convenient downtown location, Quick Stop Photo has grown in less than two years into a very successful half-million half-million dollar a year business. Come in and let us hear your good ideas. You'll find First Security has the credit authority to respond promptly, decisively and locally whatever your loan requirements. After all, if somebody some-body hadn't backed Edison's electric light, we'd still be in the dark. We're backing your good ideas in business. First Security Bank OF UTAH, N.A. Member FDIC |