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Thursday, 01/21/2010 11:52:36 PM

Thursday, January 21, 2010 11:52:36 PM

Post# of 2251
Found this on the Yahoo board....

As a resident of 'The People's Republic of California', I have been somewhat concerned about the regulatory challenges that USAU would face, specifically for their Dama and Occidental properties.

So I picked up the phone and made a couple of calls. I've come to realize that doing so is a wise way to get some return for my tax dollars- public employees are there to serve us, and usually they prove quite helpful in helping me understand the regulations.

As a frame of reference, the lead regulatory agency in Nevada is at the state level- the NDEP (Nevada Department of Environmental Protection).

While California has two departments that deal directly with mining regulation (the State Mining and Geology Board and the Office of Mining Reclamation.... both in the Department of Conservation), they are not usually the lead agency.

In California, usually the county planning/land use department is the lead agency, and they then coordinate with the state.

Additionally, if the claims are on public land (unpatented claims), you need to get approvals from the Federal government. If they are on patented claims/private land, then you don't need permission from the Feds.

I left a message with Imperial County (where the Occidental property is), and will report when I hear back.

I had a nice conversation with a man named George- he's a geologist who works for the County of San Bernardino Planning Department. San Bernardino County is where the Dama property is.

I expressed my concern over regulation in his county, and he assured me that they consider themselves a "mining-friendly" county. He stated that there is alot of open space in San Bernardino County, and there usually isn't much public comment or push-back to proposed mining operations.

He laid out the basic steps to get permit approval.

If the proposed mining operation is a surface mine (open pit), then it will need to comply with SMARA- (the SURFACE MINING AND RECLAMATION ACT OF 1975). This is a state regulation. It deals mostly with reclamation and minimizing the impact of the mining operation. There must be an acceptable reclamation plan in place, along with "financial assurances" that the reclamation will be done.

If the mine is underground (as Dama is), it is exempted from SMARA- you will still need a Conditional Use Permit from the county.

I asked about chemical processing on site- he said that is it definitely possible, and there are no standard guidelines, but it is dealt with on a case by case basis. He said that the concerns there specifically deal with making sure that chemicals are contained, protecting endangered species, ground and surface water, and possibly air quality concerns.

I will be honest- I was quite encouraged by the results of my call. It seems that some counties are more reasonable than others in California. As long as the State signs off on the reclamation plan (which will be minimal for underground work), the county seems very reasonable.
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