Tag Archives: Coalition to Save the Menominee River

Why Has Aquila’s Stock Price Plummeted?

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By Mark Doremus

Aquila Resources’ stock price has dropped to a 52-week low, despite the fact that state regulators have green-lighted its Back Forty mine west of Stephenson, Michigan.

 The stock price has declined 57 percent, to 12 cents a share, since June 4, 2018, when Aquila received its fourth and final state permit for the project.
What’s going on?
The first place to look for an answer is the price of gold and zinc, experts say. Those two minerals make up 82 percent of the Back Forty’s anticipated metals production.
The price of gold is down 10 percent from its 52-week high. So, gold mining companies aren’t feeling an urgent need to seek new supplies, said investment analyst Dave Forest of Pierce Points (piercepoints.com).
Meanwhile, zinc is down 29 percent from its 52-week high.
The zinc price decline is driven by concerns about a tariff-driven trade war, and a general cooling off of the Chinese economy, which drives much of the market for global minerals, according to Forest and Prof. Gary Campbell, a mining economist with Michigan Technological University in Houghton, Mich. 
There is also a general lack of interest in the mining industry among investors, Forest said.
“Financing of mining projects is not a hot area right now,” Forest said. “There are not as many deals being done as there were five or six years ago.”
Aquila says it needs at least $263 million to open the Back Forty, on top of the $90 million it has already spent on planning and permitting. It is looking for a partner with deep pockets to capitalize the open-pit mine and mill.
So far, no one has committed big money to get the project into the construction phase.  
The lack of an immediate development deal isn’t fatal for the Back Forty project, Forest said. However, it may have disappointed investors who were hoping the project would move forward as soon as the final permit was issued, and that in turn may have affected the stock price.
Finally, investors may be reacting to the many roadblocks that face the Back Forty project, even though all the permits for the mine have now been issued.
Two administrative challenges to the project have been grinding through the hearings process for almost two years. Both target Aquila’s Back Forty mining permit. Final arguments for those contested cases are being drafted now, and administrative law judge Daniel Pulter could issue a decision before the end of the year.
As those proceedings wind down, however, three additional contested case petitions have been filed on Aquila’s recently-issued wetland permit.  The Menominee Indian Tribe of Wisconsin has also challenged the wetland permit in federal court.
And, despite the company’s claims, its permit applications aren’t completely done yet. The site plan in the mining permit must be amended so it matches the layout in the wetland permit. And the wetland permit came with 28 pages of conditions that must be met before the Back Forty gets a final go-ahead from state regulators.
There’s more. Aquila wants to cut a county road that passes through the mine site, but it hasn’t submitted a proposal yet. And Lake Township, where the Back Forty would be located, has implemented zoning-related ordinances that must be addressed at some point, either by negotiations or in a court battle.
These unresolved issues create uncertainty about the prospects for the Back Forty mine. That may be driving investors away from Aquila Resources toward other, more promising investment opportunities.

Aquila Resources did not respond to repeated requests for comment on this report, and has not issued any public statement about its declining stock price.

Aquila Opinion Letter Misleads in Many Ways

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A response by Mark Doremus

The letter from Aquila Resources’ Chantae Lessard that was published in the Oct. 12 edition of the Eagle Herald leaves out or distorts key facts to argue that Lake Township officials have enacted “illegal” ordinances to “prevent the project from moving forward.” Here’s the text of Lessard’s letter (click to view full size):

Let’s correct the record.
 
Ms. Lessard begins her letter by selectively quoting Part 632, Nonferrous Metallic Mineral Mining, of the Natural Resources and Environmental Protection Act (NREPA), presumably to support her claim that Lake Township’s mining regulations are unlawful. While it is true that the statute puts limits on local regulation of mines like the Back Forty, it also expressly allows regulations that do not “duplicate, contradict, or conflict” with the statute (MI Comp L § 324.63203(4)).
 
Furthermore – and this is key – Lake Township does not rely exclusively on Part 632 for its power to regulate mining activities. It also relies on its zoning authority and on its overarching duty to protect the public under the laws of the State of Michigan. This is all documented in the Lake Township Zoning Ordinance, Chapter 14, Special Land Uses, in the township’s Mineral Extraction Ordinance, and in two reports I’ve published on Facebook (“Lake Township Amending Zoning Regulations/Special Land Use” and “Lake Township Clarifies Authority Over Mining Operations,” www.facebook.com/back40film).
 
Ms. Lessard goes on to complain that Lake Township has enacted a resolution that prevents officials from communicating with Aquila Resources. What the resolution actually says is that business with the township shall be conducted in public, on the record and with a quorum of township officials in attendance, not in private meetings between an outside entity and individual town officials (Lake Township Resolution No. 071217A). In other words, in Lake Township the public’s business is to be conducted in public, not in secret, back-room conversations. 
 
Ms. Lessard also states that Lake Township “has turned us away when we have tried to work collaboratively with them to address their concerns” about the Back Forty project. In truth, under the town’s zoning ordinance, if Aquila submits a letter of request, and puts money in escrow to cover the township’s costs, the zoning staff will meet with Aquila and explain, on the record and in detail, what the township is looking for from the company. So far Aquila has chosen not to engage with Lake Township in these first steps toward an official review of its proposed mining project.
 
Finally, in her letter, Ms. Lessard attacks Lake Township officials for “actively opposing” the mine, “making up their own rules based on personal opinion” and violating their “moral obligation” to work with the company in good faith. In fact, the town board has not taken a position on the mine, pro or con. Instead, it has passed laws to protect the township from the potential negative impacts of a huge industrial project. That’s what elected public officials are “morally obligated” to do – regardless of what their personal opinions may be.

EPA Objects to the Issuance of Aquila Back Forty Wetland Permit

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STEPHENSON, MI — The Front 40 Environmental Group and the Mining Action Group (MAG) of the Upper Peninsula Environmental Coalition (UPEC), along with their regional environmental allies and fishing organizations, applaud the Environmental Protection Agency’s (EPA) significant objections to the issuance of the Aquila Back Forty Wetland Permit.

The EPA’s objections were announced in a March 8th letter to the Michigan Department of Environmental Quality (DEQ). Federal concerns are detailed in a supporting document, representing the combined comments of the EPA, the U.S. Fish and Wildlife Service (USFWS) and the U.S. Army Corps of Engineers. The EPA’s letter identifies seven primary areas of concern regarding the wetland application, and directs the DEQ to resolve those concerns within 90 days. If not resolved in that time, DEQ is directed to deny the permit for the mine.

EPA’s objections include:

  • Aquila’s failure to provide a complete description of the project, including a final site plan showing the final location of key features of the project, a proposed power plant, planned underground mining facilities, and stormwater and mining water management facilities.
  • Lack of relevant information on the stability and integrity of the mine pit to be located on a bluff above the Menominee River, including an analysis of slope stability and erosion of the river bank.
  • The application “states that the project will not adversely affect water quality of the Menominee River but does not explain how the project will be managed to ensure discharges will meet water quality standards, including sufficient monitoring locations, minimization measures, and adaptive management procedures to prevent leaching of toxic compounds from mine storage facilities and from the mine pit into the River.”
  • Aquila’s failure to adequately characterize secondary impacts to wetlands and “lacks information regarding the extent of wetlands that will be impacted by the project and how these wetlands will be affected by the proposed project’s Menominee River drawdown of some 125,000 gallons per day.”

Critically, the EPA found that Aquila failed to provide adequate support for their determination that “offsite upland alternatives for some mine features (e.g., tailings storage) are not practicable”, and that they did not provide “needed information to determine whether some 500 acres of wetlands and uplands that were selected for preservation meet statutory requirements to be used as wetland and stream mitigation.”

Unless Aquila Resources satisfactorily resolves all of the EPA’s objections within 90 days, the DEQ cannot issue a Wetlands Permit for the Back Forty Project.

The Michigan DEQ continues their review of the Aquila Back Forty Wetland application, recently sending a letter to the company asking them to respond to more than 34 pages of detailed public comments, selected and synthesized from approximately 3,420 total written comments received on the Wetland application by the DEQ’s Water Resources Division. Aquila was asked to respond by March 23rd. http://bit.ly/DEQ-to-Aquila-PublicComments

“We are thrilled to see EPA leading the charge to protect Michigan’s world-class waters and habitat from the potentially devastating impacts of the Aquila mine development,” stated Cheryl Kallio, Associate Director for Freshwater Future. “We are proud to support the efforts of groups like Front 40 and UPEC Mining Action Group, who are leading the charge to evaluate this complex permit application, helping ensure decision makers within these federal agencies have the facts they need to do their job protecting Michigan’s wetlands.”

“The Aquila Back Forty property, as viewed from Wisconsin side of the Menominee River. A large open pit sulfide mine is proposed for this site.” March 10, 2018. Photo by Deborah Skubal.

“We’ve opposed the Back Forty project since 2003. Fifteen years later, we still object. We are fighting to protect the Menominee River from this disaster-waiting-to-happen. We are encouraged by EPA’s objections to the Wetland permit, and we expect to see this dangerous permit denied,” said Ron Henriksen, spokesperson for the Front 40 Environmental Fight.

According to a statement released by Great Lakes Council of Fly Fishers International President Dennis O’Brien and Conservation Chair Dave Peterson, “The Great Lakes Council is pleased that the U.S Environmental Protection Agency recognizes the significant deficiencies in the Aquila application. This mine poses a threat to the health of the Menominee River and its fishery. The Council is pleased to support the wetlands analysis submitted as part of the permit review process.”

If fully permitted, the Back Forty would be a large open-pit sulfide mine on the bank of the Menominee River, the largest watershed in the Upper Peninsula of Michigan, 100 feet from the water. Aquila proposes to process ore on-site, using cyanide and other chemicals. Tailings waste will be stored permanently at the site. Geochemical testing shows that most of the rock is “reactive” or capable of producing acid mine drainage (AMD) when exposed to air and water. AMD devastates watersheds. It is difficult and expensive to remediate, and may continue leaching from the tailings into surface and groundwater for hundreds or thousands of years.

Under Michigan regulations, Aquila bears the burden of demonstrating that either (a) the proposed activity is primarily dependent upon being located in the wetland, or (b) there are no feasible and prudent alternatives, and must use all practical means to minimize impacts to wetlands. An independent review of the Wetland permit by Dr. Kendra Zamzow of the Center for Science in Public Participation concludes, “The mining permit and wetland permit are inextricably linked.” The Wetland Permit application, however, relies upon a facilities design for the mine site which is significantly different from the design presented in the Mining Permit Application, and “pose risks to wetlands that have not been analyzed.”

“Aquila seems to present different information depending on its audience. It applied for permits for an open pit mine operation of 7 years, while telling investors that the project will include underground mining and operate for 16 years. Our review found that Aquila collected inadequate data on groundwater flow and used textbook values, off-site data, and estimated values for certain parameters in its groundwater models. Based on flawed and inaccurate models, Aquila makes the ridiculous claim that this mine will have ‘NO IMPACTS’ on wetlands just outside the project boundary, the adjacent Ecological Reference Area, and wetlands that straddle the property line,” said MAG member Steve Garske.

“We are encouraged by the diligent approach to qualifying and quantifying the serious issues involved with the Aquila application. The combined comments of the EPA, USFWS, and the Army Corps of Engineers mirror many of our own concerns about this mining company’s plans. As fisher folks and as individuals, we are working to protect water quality for our safe enjoyment of the Menominee waterway – and Lake Michigan. The affected parties are justifiably anxious about the significant environmental impacts effects of the Back Forty mine. We urge environmental regulators to be extremely wary in dealing with Aquila. We hope the entire wetland application gets turned down – flatly,” said Jerry Pasdo, president of the Wisconsin Smallmouth Alliance.

“The Back 40 proposal poses serious risks to drinking and surface water in the region and therefore requires thorough scrutiny.  We are especially concerned about impacts to the ancient sturgeon population in the Menominee River and Lake Michigan that many partners have invested in restoring over the last few years,” said Allison Werner of the River Alliance of Wisconsin.

“EPA’s objections align with our concerns. The Wetland permit application is shoddy, full of untested assumptions about wetland hydrology. The whole scheme hinges on a facility design for the Back Forty mine that no one has reviewed, much less approved,” said Kathleen Heideman, a member of MAG.

Front 40 and the Mining Action Group of the Upper Peninsula Environmental Coalition expect that  the Aquila Back Forty Wetland Permit application, after thorough examination by federal and state regulators, must ultimately be denied.

“Aquila seeks to destroy almost thirty acres of wetlands in order to build a sulfide mine on the bank of the Menominee River. Their permit application is clearly unlawful. This is an alarming proposal, given the proximity of wetlands to the river. The total wetland impacts are underestimated due to flawed groundwater modeling, and additional years of underground mining which would expand the drawdown, with devastating effects on the surrounding ecosystem,” said Heideman.

A diverse coalition of fishing groups, residents, tribal members and environmental groups are united in their opposition to the Aquila Back Forty project. Downstream communities are worried about potential impacts to drinking water and tourism, and have passed nearly two dozen resolutions against the project. “The Menominee is a valuable resource that shouldn’t be damaged or destroyed, which is why I’m working hard to protect it from the proposed Back Forty mine. I don’t want to lose the river to a polluting – sulfide mine,” said Dick Dragiewicz, an avid fisherman.

“Open water on the Menominee River, near the proposed Aquila Back Forty sulfide mine.” Photo by Lea Jane Dale, Coalition to Save the Menominee River.

Fundamental objections to the Aquila Back Forty project remain unresolved. While the Wetlands permit has been under review, two contested case petitions have been filed: one by an adjacent landowner, and another by the Menominee Indian Tribe of Wisconsin, supported by Earthjustice.

“Wetlands are strictly protected under both state and federal law. Before wetlands can be destroyed, Aquila needs to demonstrate that impacts are unavoidable. They failed that test. This permit cannot pass muster with environmental regulators,” said Heideman.

“I was amazed by the EPA’s strong letter in defense of wetlands. Aquila’s mine threatens the cultural and natural resources of the Menominee people, and a globally unique habitat known as the Shakey Lakes Savanna. The Menominee River is the worst possible place for an open-pit sulfide mine. Aquila’s plan for on-site milling is especially dangerous, and would needlessly destroy wetlands. Issuing the Back Forty Wetland Permit would violate the Clean Water Act,” said Horst Schmidt, president of the Upper Peninsula Environmental Coalition.

SUPPORT

Independent review of the Aquila Back Forty Wetland permit was made possible by the generous support of groups and individuals concerned about the future health of the Menominee River. Working collaboratively, the Mining Action Group of the Upper Peninsula Environmental Coalition and the Front 40 secured grants and donations from Freshwater Future, Superior Watershed Partnership, the Western Mining Action Network, DuPage Rivers Fly Tyers (DRiFT), Northern Illinois Fly Tyers (NIFT), Badger Fly Fishers, M&M Great Lakes Sport Fisherman, Wisconsin Smallmouth Alliance, Fly Fishers International, Great Lakes Council of Fly Fishers International, the Emerick Family Fund, and from many individual fishing enthusiasts throughout the Great Lakes area.

“Sixty Islands section of the Menominee River, riparian wetlands located approximately 200 feet from the proposed Project Boundary. Aquila Back Forty Mine site, January 9, 2018.” Photo by Kathleen Heideman, Mining Action Group.

DOWNLOAD FILES

 

Mission of the Upper Peninsula Environmental Coalition

Founded in 1976, the Upper Peninsula Environmental Coalition’s purpose remains unchanged: to protect and maintain the unique environmental qualities of the Upper Peninsula of Michigan by educating the public and acting as a watchdog to industry and government. UPEC is a nonprofit, registered 501(c)(3) organization. For more information, call 906-201-1949, see UPenvironment.org, or contact: upec@upenvironment.org.

Mission of the Mining Action Group
The UPEC Mining Action Group (MAG), formerly known as Save the Wild U.P., is a grassroots effort to defend the clean water and wild places of Michigan’s Upper Peninsula from the dangers of sulfide mining. Contact the Mining Action Group at info@savethewildup.org or call (906) 662-9987. Learn more about the Mining Action Group at miningactiongroup.org.

Mission of the Front 40 Environmental Fight

The Front 40 is a grassroots organization that was formed in early 2003 in response to the threat of a metallic mineral mine potentially being developed on the shores of the Menominee River in Lake Township, Michigan. It is the principal objective of the Front 40 Environmental Group to ensure that metallic sulfide mining operations are not allowed to adversely impact our rivers, lakes, groundwater and lands. Learn more about the Front 40 group: menomineeriver.com

Coalition To Save The Menominee River

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Guest article by John Engel 

The Coalition to Save the Menominee River was created on April 7, 2017. The coalition was created by a group of Michigan and Wisconsin residents who live near the proposed Aquila Back Forty mine or downstream of the mine site on the Menominee River. The purpose is to collectively focus their needs of representation in order to vocalize their concerns. The elected representatives are not listening to their constituents about the damage the Back Forty Mine will do to the environment, the reduction of their property value, and how it will affect the long term economic benefits of a clean Menominee River. The Coalition applied and has received 501(c)(3) and tax exempt status.

BACKGROUND – AQUILA BACK FORTY PROPOSAL

A private water well was drilled early in 2001 and zinc-rich minerals were discovered. Follow-up drill testing of the geophysical anomaly resulted in the discovery of a massive sulfide deposit containing Gold, Silver, Copper, Zinc, and Lead.

  • To date, over 500 diamond drill holes have been drilled over 125,000 meters in which polymetallic ore minerals has been verified from the surface to depths exceeding 700 meters.
  • Rumors of large mineral deposits and possibly an open pit mine were common until 2006 then the exploratory drilling activity subsided, as well as the rumors.
  • Unbeknownst to the general public, Mineral Processing began purchasing land, acquiring mineral rights beginning in 2003.
  • In 2010, the name changed to Aquila Resources which owns 580 acres of land adjacent to the Menominee River near the Shaky Lakes in the Upper Peninsula of Michigan.
  • In 2007, Environmental Resource Management was contracted to conduct an Environmental Baseline Study and Aquila Resources was quietly proceeding with the environmental site work and engineering to obtain mining permits.
  • On November 12, 2015 Aquila submitted their proposals for the mining permits. The project was quietly moving forward until the August Menominee County Journal article stating the Michigan Dept. of Environmental Quality found the application to mine was administratively complete with a public hearing in October of 2016.

As of this writing, Aquila has been granted three of four final permits by Michigan’s Department of Environmental Quality (DEQ): the Nonferrous Metallic Mineral Mining Permit, the Air Use Permit to install, and the Pollutant Discharge and Elimination System Permit. These permits have been granted, but each permit has many pages of conditions attached which have to be met prior to the permit being effective.

WETLAND PERMIT CONTROVERSY

The Wetlands Permit application was submitted and withdrawn in 2016 by Aquila, and resubmitted in 2017. On January 23, 2018 the Michigan DEQ held a public meeting in the Stephenson Michigan High school. The purpose of the public meeting was to gather public opinion regarding the proposed Back Forty Mine Wetland Permit. The number of attendees exceeded 300 with 4 people speaking in favor of the mine and 84 opposing the mine. The Wetland Permit announcement (of decision) was scheduled for April 9, 2018; however the date has been delayed. Michigan DEQ allowed the public to submit written comments on the mine until February 2, 2018 at which time they received greater than 3400 comments and requests for additional information. In response to the public comments, the Michigan DEQ has submitted a 34 page letter of questions to Aquila Resources to verify inconsistencies in their wetland permit application. Aquila has 20 days to respond to the letter which was dated March 2, 2018. The response from Aquila is required before the Michigan DEQ can make a decision on the wetlands permit. If the wetlands permit is issued, site specific conditions will likely have to be met before the wetlands permit is deemed effective.

GROWING OPPOSITION TO BACK FORTY PROJECT

On March 1st, the author traveled to a Coalition to Save the Menominee River meeting. The meeting was held in the Wagner Town Hall on the Wisconsin side of the Menominee River near the McAllister Bridge. Surveys were handed out to a number of the people attending who lived on the river or near the proposed mine site.

The chairman of the group, Dale Burie, opened the meeting with a prayer for the river and the attendees. Dale proceeded with the agenda, providing updates on the Wetlands permitting process, the Menominee Nation’s Clean Water Act federal lawsuit, a treasurer’s report, various public events opposing the Back Forty Mine, future fund raising events, the lack of objective journalism by the Marinette Eagle Herald newspaper, and the lack of representation by their elected officials. Approximately 40 people attended the meeting. After the meeting, I met with each of the people who completed the survey. The news media, industry, and environmental organizations tend to focus on job creation or environmental harm; I propose we meet a few of the people who will be most affected by the Back Forty Mine.

CONCERNED CITIZENS

Dennis and Andrea Piontek retired 2 ½ years ago and live in their retirement home. They worked and saved to build their dream house on river 10 miles downstream of the proposed mine. Prior to building, they saw some signs about a mine but they were assured the investors backed out and the mine was a non-issue. Dennis and Andrea enjoy nature, clean air, clean water, and the variety of bird life. Andrea told me about the eagle family that lives in the area. Dennis enjoys fishing in the river and the fish are currently safe to eat. They are both very concerned about the river being polluted and the destruction of habitat. Another issue is property values, their home valuation has dropped which they believe is a direct result of the proposed mine activity.

Regina Chaltry and her daughter Gracey spend time at their family cottage south of the Oxbow on the Michigan side of the river. The cottage has been in their family since the 1940’s. They enjoy the quiet solitude and harmony with nature at their cottage. This area is beautiful, completely surrounded by forests, it is nearly untouched. They haven’t brought in electricity, opting for a simplified lifestyle. As a family, they enjoy floating down the river. They see eagles, deer, pheasant, porcupine, and beaver; in the evening owls are often heard. The spring ritual of collectively tapping and making maple syrup is an annual event. Regina and her family are very concerned about toxic mine waste polluting the Menominee River and prohibiting them from enjoying their family’s lifestyle.

August Beres has lived on the Wisconsin side of the river for more than 50 years. Augie dreamed about living on the river since he was a teenager. He worked hard saved his money, and his dream came true. When Augie’s grandchildren visit, they fish, canoe, and play in the river shallows. He is gravely concerned that if Aquila is allowed to mine, there will be a breach in the mine or another unforseen disaster. His grandchildren will not be able to grow up enjoying all the recreational and environmental opportunities river has to offer. Augie has written letters to our Governor, both U.S. Senators, U.S. Congressman, State Senator, and State Assemblyman. Augie received some positive feedback from State Assemblyman Jeff Mursau; however no serious action to alleviate his concerns has occurred. Tom Tiffany said the proposed mine was in Michigan and there was nothing he could do.

Tina Lesperance lives on the family farm which is approximately one mile east of the proposed mine site. Currently, the Aquila employees who work at the field office drive past her farm on their way to work. Tina’s farm has been in the family since 1930 and she absolutely loves the farm. In her words, “she loves the peace and quiet living with nature”. The Shakey Lakes area supports numerous species of migrating birds and waterfowl. Frequently Tina sees wolves on the farm; they know her and haven’t been problematic. Tina told me about the time she followed two of them from a distance into the woods. It was beginning to get dark and she thought that it was time to return home. She is concerned about the blasting, construction traffic, the sulfide dust, and her well water. If the mine is permitted, she is afraid the environment will suffer and it will directly affect her lifestyle.

Doug Stephen has been living on the Green Bay north of Menominee Michigan for 1 ½ years. Doug states the Bay is one of the most beautiful places he has ever seen. The wildlife is amazing bald eagles; deer, coyotes, and many fish for sport fishing. For reference, Doug lived in San Diego, Rhode Island, and the Chicago area on the water. Doug made a significant real estate investment when he purchased his house. At the time of the purchase, he had no idea a sulfide ore mine was proposed on the Menominee River. At the DEQ hearing in Stephenson Mi. Doug stated, “This is a moral outrage and should be a federal crime for anyone involved in moving forward with the Back Forty mine, not one sulfide mine has ever not polluted”.

I have additional stories; however, every person who was at the meeting has a personal reason to oppose the Back Forty Mine and they all have been ignored by their elected representatives. For instance, Michigan State Assembly Representative Beau LaFave and Michigan State Senator Tom Casperson have both been contacted numerous times to help but they refused.

What can we do to help?

 

 

John Engel is a resident of Wisconsin, active with the John Muir Chapter of the Sierra Club.