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 Permits and Laws
Lesson 11

Objectives

a) Students wiil summarize what production royalties are.

b)Students will learn about the requirements for a claim notice forms by completing a sample.

c) Students will calculate the bond amount for reclamation.


Handmining

Handmining permits and regulations- There are rules and regulations for handming ( gold panning) in Alaska. "Gold panning is generally allowed almost anywhere in Alaska, and only in the rarest cases would a permit be required. The main areas to avoid are mining claims if you do not have permission from the claim holder, and private property if you do not have the property owners permission. Native land should be considered private property, and not even gold panning should be done without permission from the proper authorities.
Hand fed sluice boxes are allowed in most areas, with the same restrictions as noted for gold pans above. However, many areas that are open to panning are closed to sluicing, and in some of those areas even gold panning must be done carefully to avoid any trouble. The mains areas of concern here are National Parks and Alaska State Parks. These parks can be very stringent in their rules governing gold pans and sluice boxes, so always check with the proper authorities before heading into an unknown area.
Metal detectors are an interesting area with few restrictions in regulation or statute, but many opinions will be heard. Again, avoid claims and private property without permission. Beware of historic sites. As long as you confine yourself to searching for gold or other minerals you should have no problems, but even possessing a metal detector in a historic site may find you trying to explain to a ranger what you are up to. Digging items more than one hundred years old is a violation of the Federal Antiquities Act, and can have serious legal consequences. The trend is to apply this law even to items less than 100 years old, if the item might have unique historic value.
An interesting note on the way some of these rules are written in the use of the language "uses no more equipment than" when describing what you may use to search for gold or other minerals. This language is exclusive, and in an area where the rules stated "no more equipment than a gold pan" prospectors have been challenged for using trowels or even spoons to fill the gold pan! The use of the pan itself as a scoop has been challenged also, because it was being employed as "a digging implement, not a gold pan". Metal detectors can be called into question under this language, but it must be noted that a metal detector in and of itself does no excavating. It simply points out a likely spot to find an item. How that information is acted on should be held as the criteria (i.e. dig by hand, or dig with shovel), and not the use of the detector itself."

Example:

Sixmile Creek and Resurrection Creeks, Southcentral Alaska

These two creeks are among the most popular recreational sites in Alaska. Gold panning is allowed year-round without a permit, but a permit is required for using a hand fed sluice box as well as for suction dredging. Sluice boxes are allowed from May 15th until July 15th only. The permit is issued each season by the State of Alaska Department of Fish and Game. There is no charge for the permit but it must be in your possession while mining. A copy of the 2000 permit application is available below in Adobe Acrobat (.pdf) format. If you do not have a viewer for Acrobat documents, you may download a free viewer at the Adobe website.
Fish & Game Permit for Sixmile and Resurrection Creeks (Adobe Acrobat (.pdf) format)
 

Chugach State Park

PERMANENT REGULATIONS
TITLE 11
CHAPTER 020
ARTICLE 01
11 AAC 20.045

RECREATIONAL GOLD PANNING.

Recreational gold panning is allowed in Chugach State Park with the following stipulations:
(1) no motorized equipment is used;
(2) a person uses no more equipment than a gold pan and a shovel;
(3) no chemicals are used;
(4) anadromous fish streams are only open to recreational gold panning between May 16 and July 14 annually;
(5) no person may stake or file a mining claim or leasehold location in a state park; and
(6) no person may extract or disturb natural material for the purposes of recreational gold panning above the ordinary high water line or where live vegetative matter exists.

The above information was quoted form the article "Handmining regulations" Alaska Mining and Diving Supply.http://www.akmining.com/mine/perhand.htm

Placer Mining

Alaska Dept of Natural Resources- Division of Mining, Land and Water
In order to conduct exploration or mining activities in the State of Alaska, permits and licenses are required by as many as 12 State and Federal agencies. To assist the industry with applications in the complex permitting process, the State designed the Annual Placer Mining Application (APMA).

In order to conduct exploration or mining activities in the State of Alaska, permits and licenses are required by as many as 12 State and Federal agencies. To assist the industry with applications in the complex permitting process, the State designed the Annual Placer Mining Application (APMA).

Each year a claim owner intends to conduct mining activity, including exploration, mining, or transportation of equipment, an APMA should be completed and submitted to a State Division of Mining Office nearest to where the activity will take place. A $100 processing fee must accompany the application. Submission well in advance of the intended "start-up" date is recommended ­ November or December is not too early! The Division of Mining reviews the form for completeness and, when accepted, distributes to all State and Federal agencies involved in the permitting process ­ thus, expediting the paperwork for the benefit of the applicant. Permits may or may not be required by the agencies receiving copies of each application. After reviewing the application an agency may: 1) issue a required permit, sometimes with stipulations; 2) request more information before issuing a permit; 3) deny the permit under their statutory and regulatory authority, or by order of court injunction.

Agencies involved in the permitting process, along with the respective permits/licenses managed, follows:

http://www.dnr.state.ak.us/mine_wat/propmgt/apmaperm.htm

AGENCY RESPONSIBILITY
Department of Fish & Game Fish Habitat Permit
Special Area Permit
Department of Environmental Conservation Wastewater Discharge Compliance Inspections
Technical Assistance
Division of Governmental Coordination Coastal Zone Consistency Determination
DNR, Division of Mining, Land & Water Miscellaneous Land Use Permit (On claim activity only, including surface use)
DNR, Division of Mining, Land & Water Miscellaneous Land Use Permit (Access across state land)
DNR, Division of Parks Special Park Use Permit
DNR, Division of Forestry Timber Purchase may be required
Bureau of Land Management Approved plan of operation or notice of Operation
U.S. Forest Service Approved Plan of Operation
U.S. Park Service Approved Plan of Operation

NOTE: Although the U.S Environmental Protection Agency and the U.S. Army Corps of Engineers both receive copies of the APMA, they do not issue permits from the application. Separate, individual, applications must be filed with these agencies to receive their respective permits (EPA ­ National Pollutant discharge elimination system Permits (NPDES)) and COE (Dredge & Fill Permit).

COMMONLY ASKED QUESTIONS

1. Will the Annual Placer Mining Application get me every permit I may need?
No. If you will have a settling pond discharge, you must apply for an Environmental Protection Agency (national Pollutant Discharge Elimination System (NPDES)) Permit by separate application with that agency. In addition, a U.S. Army Corps of Engineers permit could be required for dredge and fill activity on wetlands. Contact them directly for this determination. A toll free number is available for their Anchorage office 1-800-478-2712 or normal telephone contact is 907-753-2712.

2. Isn't a mining license the only permit I need?

No. A mining license is the Alaska's Department of Revenue's way of tracking your income tax obligation to the State (can be deferred for the first 3 1/2 years of production IF an Affidavit of Initial Production is filed). It is not a mining permit and does not have anything to do with authorizing surface disturbance wastewater discharge, surface use, habitat permits, etc.

3. Does the $100 processing fee for the Annual Placer Mining Application cover the cost of all permits that could be issued?

No. The fee applies only to land use/water use permits issued by the Department of Natural Resources and the cost of duplication and distribution of the application to other State and Federal agencies.

4. Do I need to complete and submit a new Annual Placer Mining Application each year?

Yes. If you are intending to perform any type of mining related activity requiring the submission of such. Many agency permits are issued for only one year.

5. If I am not mining, only prospecting or performing exploration work, do I still need permits?

Yes. Permits or Notices of Operation are required for any activity involving heavy, mechanized equipment on all State and Federal lands.

6. I'm only a recreational miner using a suction dredge, not a commercial venture with big equipment. Do I still need permits?

Possibly. Any suction dredge activity must be coordinated through a local Alaska Department of Fish & Game, Habitat Division Office. Generally: On State mining claims, suction dredges with a nozzle intake six inches or less, powered by a 16HP motor or less without additional mechanized equipment, is considered "recreational activity". Recreational dredging requires authorization from the Department of Fish & Game.

On Federal mining claims, suction dredges with nozzle intakes larger than four inches are considered commercial and require a Notice/Plan of Operation to be submitted or an Annual Placer Mining Application, in addition to authorization from the Alaska Department of Fish & Game.

References**This article was adapted from George W.Luxbacher and Richard T. Kline.  SME Mining Engineering Handbook, 2nd Edition, Volume 2.  (Littleton, Colorado:  Society for Mining, Metallurgy, and Exploration, Inc., 1992),  pp. 1543-1549.


Enviromental Impact

Part 2

Making natural resource extraction decisions within a community is often a difficult one. The first decision is made by the company interested in opening the mine. They must decide if they can afford the lease, tax, transportation, equipment, reclamation, employees, and facilities. They must predict if the area holds quality resources in a commercially valuable quantity to warrant opening a mine. They must also predict the length of productivity for the mine and the market value for the resource.

Once a company has made the decision to pursue a mine, they must begin the permit process. Once these permits have been requested an Environmental Impact Statement (EIS) must be prepared by the proposing company. An analysis of the environmental effects that could occur from a proposed action or project, which is required by the National Environmental Protection Act (NEPA). Their purpose is to provide the public and public officials with the environmental information before permits are granted or final decisions are made.

Environmental Impact
The first step in an EIS is to determine all of the environmental issues related to the project. Usually federal agencies make a draft EIS document available for approximately 45 days for public comment through hearings, meetings, and letters. The company interested in mining pays for the preparation for the document and the federal agency monitors the study. The EIS identifies and includes information on all the alternatives considered in the project, pinpointing those alternatives which are considered most environmentally favorable. The EIS is then used to make final permit decisions on the federal level. They might also be used to make decisions on the state and local level.

The EIS generally studies the following areas and states the possible environmental affects of the mine and ways to mitigate them:

  • Cultural Resources: Researches if the mine site would disrupt archeological sites.
    Geology, geologic Facts: researches whether the area has the geologic formations and conditions which would suggest a good site for a specific mineral extraction.
  • Surface and Ground Water Studies: Water Balances, Water Quality: Studies both water sources to give a baseline of their makeup.
    Freshwater Fisheries and Marine Biology and Oceanographic Data: Studies which determine the diversity, population size and health of both the fresh water in the water in the area and any ocean or salt water which may be impacted.
  • Vegetation: Studies and inventories the vegetation in the area.
    Wetlands: Studies and inventories the surrounding area's wetlands including the wildlife and vegetation.
    Air Quality: Studies the air quality.
  • Avalanche Hazards: An evaluation of possible hazards from avalanches on the site and surrounding areas.
  • Visual resources: Studies of the impacts of the mine on the visual characteristics of the area both from the community, surrounding areas and from the air.
  • Socioeconomic: Studies the current socio-economics of the community including diversity, jobs, services, housing, property, taxes, schools, population, and the health care.
  • Transportation: Studies the effects of transportation to and from the mine.
  • Geotechnical Investigation and Evaluation: States what processes will be sued to extract the mineral and how the mine will handle its tailings.

Economic Impacts

From the EIS and other information, the public can make comments on the mining operation plans in the area. The disputing points generally include socioeconomic concerns, safety concerns and environmental concerns.

The socioeconomic concerns mainly deal with jobs and population. According to Alaska Division of Geological and Geophysical Surveys minerals and mining employed 3,492 Alaskans in 1992. (Alaska Almanac, 1993, pag.103)

While the mine may provide jobs and bring money to the community through economic diversification, it may not employ people exclusively from the community. In other words, the population of the area increases, as do the problems that accompany it. This means more people competing for housing, education, additional jobs, medical services, fore protection, and police protection. On the other hand, more people may increase property value, and taxes may increase which in turn may allow better education. More people may mean more competition or more services and retailers in the community growth and stability to a community, which relies on only one industry.

These mining points can become exaggerated in Alaska's rural communities where economic diversity is minimal and jobs are scarce. Rural economics often cannot support services found in larger communities. The money from a mining operation often means construction of facilities including local high schools and health clinics. The operation and money can also mean improved public services, housing, water and sewer programs, electric facilities, airports, public safety, and fire protection. In addition, it can mean job training (See samples www.dmtcalaska.org) and general economic growth. Opening a mine in or near a rural community can bring additional to better jobs to the people in the area. It can also mean an increase in population, a change some communities may not want.

In Alaska, while mining might help the economics of the area, there might be concerns that it could impact subsistence harvests and lifestyles, an economic and cultural concern. Some may see the success in cash employment as a way to succeed in subsistence, allowing one to buy new and better equipment for hunting and fishing.

Safety
Safety concerns regarding an opening of mine involve transportation, and water, air, and noise quality. Pristine wilderness areas and healthy habitats are the major concerns. Alaska has the only U.S. artic wilderness. While some of the arctic is preserved, its pristine wilderness can still be an issue in the proposed mine area.

Healthy habitat means maintaining water quality for healthy fish habitats and spawning grounds, maintaining water and noise quality for healthy marine habitats and calving/birthing grounds, maintaining healthy land and wetland habitats for all the animals and especially for large migrating herds and threatened species, and protecting the fragility of the arctic vegetation.

The vegetation in arctic regions takes longer to grow than plants in other regions. The short growing period, the soil condition, and the severe weather make it difficult for plants in the northern regions to grow quickly, even with their arctic adaptations. Mines, mine roads, and mine reclamation projects can impact the tundra vegetation.

Reclamation

Reclamation plans revolve around restoring contours and vegetation to the area to stabilize the soil. An Alaskan reclamation engineering challenge involves permafrost. Permafrost is defined as permanently frozen sub-soil which has been frozen for over 2 years. It can range in depths from 1-2 feet to over 2,000 feet. Permafrost can be continuous or discontinuous. In the Arctic regions for the state it is continuous, while in the interior and south central it is discontinuous, being found in patches of 20-400 ft deep. Some areas of Alaska contain no permafrost.

Permafrost can be environmental engineering challenge in both mining and reclamation if the frozen subsoil begins to melt changing its consistency. When this sub-soil melts, it not only looses it solidity, but its mass as well. Slopes can flow and ooze if the thaw3ing permafrost contains more ice than soil. This thawing can accelerate during mining and reclamation because the subsoil is exposed to the sunlight and the temperature changes for the Earth's surface. In addition, dark mining dust can absorb sunlight and heat up the area. There is currently no way to refreeze the soil permanently to stop water from melting away.

Arctic vegetation can also be a challenge in addition to the permafrost difficulties because grading frozen soil and subsoil can be difficult, and the growing season short, the decay slow and the nutrients minimal. In some places, the topsoil is very thin and in other places non-existent with the top layer being mainly being muskeg. Planting mosses in some areas have proven to be successful. To overcome some of the seeding challenges, some companies seed in the fall and allow the seeds to germinate during the winter to allow better success in the short growing season.

There are many complicated decisions to be made regarding economics, safety and environment before a mine is put into operation. Meeting and public hearings are held and letters are written to voice viewpoints. Many people are involved in the decision making process. When the decision process is over, a process which in some cases takes many years, a mine may or may not open in a given area. (Ecology/Economy, Module D, Alaska Mineral Resources Kit1996, pg 104-107

Glossary-
Economic diversity
(diversification): A variety of different and unrelated income sources for a community
Economy: Regarding production, distribution and sue of income, wealth and goods
Environmental Impact Statement: An analysis of the environmental effects that could occur from a proposed action or project which is required by the National Environmental Protection Act.
Natural Resource Extraction: Removal of a naturally occurring resource usually by mining, drilling, cutting, or harvesting.


References:

**This article was adapted from Scott G Britton, Mine Plant Layout.  SME Mining Engineering Handbook, 2nd Edition, Volume 2.  (Littleton, Colorado:  Society for Mining, Metallurgy, and Exploration, Inc., 1992),  pp. 1572-1579.

Resources:
Coggins, Jennifer; Ecology/Economy, Module D, Alaska Mineral Resources Kit, developed 1985 revised 1996, pg 104-107.

 

ANNUAL PLACER MINING APPLICATION
http://www.dnr.state.ak.us/mine_wat/pdf/forms/2k-apma/apma_gen.htm

http://www.dnr.state.ak.us/mine_wat/propmgt/apmaperm.htm

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