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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?


To: Richard Mazzarella who wrote (5367)8/19/1998 1:50:00 AM
From: Larry Brubaker  Read Replies (1) | Respond to of 11603
 
Richard: Unfortunately, I think Rand may have a point about what the BLM is up to. I looked up the Federal Regulation cited in Maxam's PR, 43CFR3715.3-2, and it concerns information which must be provided to BLM in order to occupy a mining claim. The text of the regulation is as follows.

"Sec. 3715.3-2 What information must I provide to BLM about my proposed occupancy?
You must give BLM a detailed map that identifies the site and the
placement of the items specified in paragraphs (c), (d), and (e) of this
section, and a written description of the proposed occupancy that
describes in detail:
(a) How the proposed occupancy is reasonably incident;
(b) How the proposed occupancy meets the conditions specified in
Sec. 3715.2 and Sec. 3715.2-1;
(c) Where you will place temporary or permanent structures for occupancy;
(d) The location of and reason you need enclosures, fences, gates,
and signs intended to exclude the general public;
(e) The location of reasonable public passage or access routes
through or around the area to adjacent public lands; and
(f) The estimated period of use of the structures, enclosures,
fences, gates, and signs, as well as the schedule for removal and
reclamation when operations end."

If you look at the requirements, parts c-f seem to be purely a paperwork excercise. However, part a requires a description of how the occupancy is "reasonably incident, and part b requires a description of how the occupancy complies with Sec. 3715.2 and Sec. 3715.2-1. The text of Sec. 3715.2 and Sec. 3715.2-1 follow.

"Sec. 3715.2 What activities do I have to be engaged in to allow me to occupy the public lands?
In order to occupy the public lands under the mining laws for more
than 14 calendar days in any 90-day period within a 25-mile radius of
the initially occupied site, you must be engaged in certain activities.
Those activities that are the reason for your occupancy must:
(a) Be reasonably incident;
(b) Constitute substantially regular work;
(c) Be reasonably calculated to lead to the extraction and
beneficiation of minerals;
(d) Involve observable on-the-ground activity that BLM may verify
under Sec. 3715.7; and
(e) Use appropriate equipment that is presently operable, subject to the need for reasonable assembly, maintenance, repair or fabrication of replacement parts.
Sec. 3715.2-1 What additional characteristic(s) must my occupancy have?
In addition to the requirements specified in Sec. 3715.2, your
occupancy must involve one or more of the following:[[Page 761]]
(a) Protecting exposed, concentrated or otherwise accessible
valuable minerals from theft or loss;
(b) Protecting from theft or loss appropriate, operable equipment
which is regularly used, is not readily portable, and cannot be
protected by means other than occupancy;
(c) Protecting the public from appropriate, operable equipment which is regularly used, is not readily portable, and if left unattended, creates a hazard to public safety;
(d) Protecting the public from surface uses, workings, or
improvements which, if left unattended, create a hazard to public safety; or
(e) Being located in an area so isolated or lacking in physical
access as to require the mining claimant, operator, or workers to remain on site in order to work a full shift of a usual and customary length. A full shift is ordinarily 8 hours and does not include travel time to the site from a community or area in which housing may be obtained."

Once again, most of the requirements appear to be merely paperwork excercises. From reading these requirements, it would seem quite possible that what the BLM is looking for is whether Maxam's operation is "reasonably incident" or whether it would "Be reasonably calculated to lead to the extraction and beneficiation of minerals."

The definition of "reasonably incident" is: "Reasonably incident means the statutory standard ''prospecting, mining, or processing operations and uses reasonably incident thereto''(30 U.S.C. 612). It is a shortened version of the statutory standard. It includes those actions or expenditures of labor and resources by a person of ordinary prudence to prospect, explore, define, develop, mine, or beneficiate a valuable mineral deposit, using methods, structures,
and equipment appropriate to the geological terrain, mineral deposit,
and stage of development and reasonably related activities."

In short, it seems unlikely that Maxam would find it difficult to meet such requirements that they describe where they will place temporary or permanent structures, the location and reason they need fences, etc.

It would appear to me the problem is that Maxam is having difficulty convincing the BLM that their operation would "Be reasonably calculated to lead to the extraction and beneficiation of minerals."

None of the other requirements of the regulation cited by Maxam would appear to be that difficult to comply with.