Replies to post #185 on Lexam VG Gold Inc. (fka LEXVF)

[JD400]

San Luis Valley Ecosystem Council
Over a Decade of Dedication to Public Lands Integrity
1998-2013

1998, SLVEC submitted a Citizen's Management Alternative (CMA). Approximately one-half of the 1.86 million acres of Rio Grande National Forest (RGNF) is now prescribed as either Back Country or Designated Wilderness.

1999, SLVEC organized, advocated and testified before Congress for the Great Sand Dunes National Park and Preserve Act of 2000 preserving the 100,000 acre former Baca Ranch, moving this pristine landscape into Public Land. The ranch is now part of the Great Sand Dunes National Park and Preserve, Baca National Wildlife Refuge, and a Baca Mountain Tract addition to National Forest.

2001-2004, SLVEC was appointed to the Great Sand Dunes NPS Management Plan Advisory Council by Interior Secretary Gayle Norton, pushing for recommendation of 50,000 acres of wilderness designation. Acquiring the mineral rights beneath the National Park will move this Wilderness recommendation forward.

2001-2003, SLVEC, in cooperation with Southern Rockies Conservation Alliance (SRCA) inventoried one-half million areas of Roadless Areas within Rio Grande National Forest (RGNF), using ground truthing forms for documentation and GIS/GPS points imbedded in photographs. Thousands of photos were taken linked to GPS.

2004-2005, SLVEC performs a BLM Rapid Assessment Inventory on ½ million acres of BLM roads for the SLV BLM Travel Management Plan and submitted a Citizens Management Alternative. A 51% road closure was recommended by BLM.

2005, SLVEC and Colorado Wild filed a lawsuit challenging the Rio Grande County Commissioners' decision on accepting the "Village at Wolf Creek" plat design, a proposed development of 2,122 units near the continental divide. District Judge Kuenhold agreed with the claim because there was no year round access to the land.

2006, SLVEC testified before Congress and the Rio Grande Natural Area Act was passed, designating 33 miles of Rio Grande Corridor, from the southern boundary of the Alamosa Wildlife Refuge to the New Mexico State line, extending protection for one-quarter mile from either bank of the river, under BLM jurisdiction.

2006, Judge Marcia Krieger agreed with an adjacent landowner and SLVEC lawsuit challenge of the Rio Ox-bow Land Exchange claiming that it was not in the public interest. This decision protected some of the few remaining public access points in the Upper Rio Grande. The case has also brought precedence regarding public/private land trades in Colorado to require an Environmental Impact Statement (EIS).

2006-2012, Colorado Wild and SLVEC challenged the Forest Service EIS decision granting access to "Village at Wolf Creek". In 2008 Supreme Court Justice Kane agreed with these claims, including the Forest Service narrowing the scope of the EIS. Another "Village at Wolf Creek" land exchange is now being proposed and analyzed.

2005-2012, Water Quality Awareness Project, recipient of EPA Environmental Justice Community Problem-Solving and (CPS) and recently received EPA CARE 1 Grant. Fewer than ten grants were awarded throughout the USA. SLVEC was recipient of the EPA Environmental Stewardship Award (2007) for organizing free household well testing in small communities throughout the SLV. Over 800 household wells have received this free well testing. SLVEC has begun Environmental Health Risk assessments within 13 communities of the SLV. The CARE Project will be setting priorities based on community input to determine next steps for impacting environmental health issues, plus sending out 500 free radon test kits.

2006-2010, Challenge of Oil and Gas development within the SLV Baca National Wildlife Refuge, SLVEC spearheaded a legal challenge of Oil and Gas Drilling on the Baca National Wildlife Refuge because the National Environmental Policy Act (NEPA) Process was being avoided. This case has recently settled with US Fish and Wildlife Service. Lexam Explorations, Inc. is now a willing sellerof it¡¦s mineral rights and the opportunity to acquire and retire these rights is underway, which would permanently protect the area.
2007 - San Luis Hills and Flat Top Mesa, -Parcels Withdrawn
2008 - Leasing on Rio Grande National Forest and BLM lands-144,000 acres deferred
2011-13 - San Francisco Creek, near Del Norte, CO -Application to Drill (APD) filed with Colorado Oil and Gas Conservation Commission (COGCC) for 5,000 ft exploratory O & G Well by Hughes Oil. Filed comments to the BLM for their EIA process. BLM recommendations to be issued late summer 2013.
2007-2013, The Sangre de Cristo National Heritage Area (NHA), signed into law by President Obama in March 2009, establishes cultural, historical, and natural resource preservation and protection for the southern three counties within the San Luis Valley. The Great Sand Dunes Park and Preserve lands are included within the NHA. SLVEC has served for 4 years on the Board which is now ushering in a Management Plan.

2008-2012, SLVEC works with the public and continues to comment on the BLM proposed Solar Energy Zones (SEZ's) on 22,000 acres of land within the San Luis Valley.

Recent Public Involvement



With Conejos County Clean Water taking the lead, reached a settlement agreement regarding the Department of Energy (DOE) proposal for a low level Transwaste facility in Antonito. This transwaste transfer point has been withdrawn. The material was to originate from Los Alamos, NM. A site specific (NEPA) public process will have to be conducted if DOE decides to reopen this proposal.

Organized another round of public comments challenging the Air Force Low Altitude Tactical Navigation (LATN) Flyovers, bringing together organizations and sharing information from Colorado and New Mexico constituencies. The proposed project spans 62,000 sq. miles and impacts 38 counties in some of Colorado's most remote Backcountry.

Hosted Three Public Education forums with Transmission Line Coalition (TLC) surrounding the proposed Transmission line over La Veta Pass, including bringing the utilities (Tri-State and Xcel) together for public discussion. SLVEC supported public scrutiny of this proposal has resulted in the "postponement" of this project. In 2012, Xcel pulled its participation in the line making its liklihood of further pursuit doubtful.

Co-sponsored a Solar Workshop with other groups at SLV Rural Electric Coop in Monte Vista, CO to bring small businesses and communities together to discuss a community scale solar siting process.



2012 included the development of a San Luis Valley Renewable Energy Master Plan to infuse support of community based siting of solar installations.

[JD400]

Baca National Wildlife Refuge/Lexam Explorations

Baca National Wildlife Refuge & proposed land exchange:

Situation: In 2006, Lexam, Inc. a Canadian Mining Company, filed an application to drill two 14,000 ft test wells on the newly created Baca National Wildlife Refuge (BNWR). SLVEC filed a lawsuit in May of 2007, which forced the Fish and Wildlife Service (FWS) to undergo a NEPA process and provide a range of alternatives. In the spring of 2008, the FWS released anEnvironmental Assessment (EA) stating No Significant Impact of drilling. This decision was challenged by SLVEC with a Preliminary Injunction.

In 2011, SLVEC reached a settlement agreement with US Fish and Wildlife Service. The stipulated Agreement was filed just days after a request by Colorado Senator’s Udall and Bennet, “to facilitate a discussion about buying out mineral rights in Baca National Wildlife Refuge to protect it from future drilling.” The senators sent a letter asking Dan Ashe, the Director of the U.S. Fish and Wildlife Service, for a meeting with stakeholders to explore potential solutions to conserving the refuge's natural resources.” These actions have been supported by years of public outcry (28,000 responses) for buyout and will further efforts to work towards permanent protection of theBaca National Wildlife Refuge and adjacent public lands.

Although litigation had been focused on the Baca Wildlife Refuge, other federal landmanagement agencies have expressed interest in a broad mineral acquisition that would also protect the unique character of the Sand Dunes National Park and the National Forest Baca Mountain Tract, part of the 2000 Great Sand Dunes National Park and Preserve legislation.

In March 2012, Senator Udall’s and Bennet office, regional and DC, brought together almost 30 representatives from various agencies and interested parties to facilitate a meeting. Present were: 4 representatives from US Fish and Wildlife, including the real estate office, 4 reps from National Park Service, including the new Superintendent, Forest Service real estate office, the Rio Grande Water Conservation District- SLV water users, 2 reps from Trust for Public Land, the Dept. of Interior office, Saguache County Commissioner, BLM’s real estate office, SLVEC and Lexam’s representatives from Toronto.

Lexam made an announcement. Understanding the financial constraints imposed on the federal government at this time, they offered a land exchange. Lexam already has anoperating gold mine in Nevada and would like to build a facility next to the mine, not to expand the mine, but to improve efficiency in operations. This property is currently owned by the BLM so Lexam is proposing a land exchange of that BLM property in exchange for divestiture of all their mineral rights within the San Luis Valley. This land exchange will require an act of congress since the mineral/land properties in question are contained within two different states. BLM was tasked to go back and discuss this proposal within various BLM and congressional offices. It appears to be a proposal worthy of consideration, but research will need to be conducted in coming months. The various interests left the meeting feeling cautiously optimistic.

Plan, Goals, and Objectives: Federal Mineral Rights acquisition within the San Luis Valley.

During negotiations in 2010, Lexam made an offer to sell their minerals rights for $8.3 million. Trust for Public Land (TPL) agreed to act as negotiator, with the original intention to facilitate purchase with private funding support until federalfunds could be appropriated to move all the rights into the public domain, and then retired. SLVEC secured funds and a Mineral Remoteness Report was developed and given to the Congressional Delegation, Public Land Managers, Water Users, Trust for Public Land and the Dept. of Interior in the fall of 2011.

SLVEC received commitment from a private source to fund a full mineral appraisal of Lexam’s mineral rights when that becomes necessary and made that announcement as a point of negotiation at the March 1st meeting. In coming months, the Senatorial offices of Colorado and Nevada will meet to determine the feasibility of this land exchange and in the event of agreement, will prepare legislation to move it through congress. SLVEC will continue to mobilize public support for Mineral rights/BLM Land exchange. We believe that because there is a win/win interest to both the public and private sector, that it will not attract much controversy in congress.
Evaluation: Success will be achieved when serious negotiations are underway and legislation is drafted to exchange Nevada BLM land for the mineral rights under the former Baca Ranch, which includes the Wildlife Refuge, Great Sand Dunes National Park, and the Forest Service Baca Mountain Tract. he Baca National Wildlife Refuge is Colorado’s largest and newest Refuge. Flanked by the Sangre de Cristo Mountains to the east and the Great Sand Dunes National Park & Preserve to the south, the BNWR spans approximately 92,500 acres. But this largely untouched refuge is under threat from oil and gas development.

After a multi-year battle to protect the water in the San Luis Valley aquifers, the BNWR was created by the Great Sand Dunes National Park and Preserve Act of 2000. This legislation was the result of efforts by many local individuals and groups, including the Citizens for San Luis Valley Water, San Luis Valley Ecosystem Council and other conservation organizations, local governments in the SLV, state officials, local federal officials, and our Congressional delegation. The legislation included the expansion of the Great Sand Dunes National Park and Preserve, the creation of the Baca National Wildlife Refuge, and added additional acreage to the Rio Grande National Forest, known as the Baca Mountain Tract.

Over the course of the following four years, The Nature Conservancy acted as a broker in acquiring the additional lands for the Park, the Refuge, and the Forest. This included the purchase of the Baca Ranch for $33 million, then held by Farallon Corporation. At the time, the mineral rights had already been severed and sold to a third party, Lexam, and were not available for purchase. Farallon could only sell the surface and water rights that it held. It was important to purchase the surface and water rights in the Baca Ranch in a timely manner in order to acquire the property needed for federal designation, and in order to avoid losing the ranch to a third party. In September of 2004, land acquisitions had been finalized, and the official designation was signed by then Secretary of the Interior Gale Norton.

Because of the new lands that were acquired, the Great Sand Dunes National Park had begun the process of creating a General Management Plan late in 2003. The BNWR, due to funding constraints from the US Fish &Wildlife Service (FWS), was not scheduled to begin their own comprehensive management plan until 2011. Surveys of the land, including studies of flora and fauna and cultural resources, were delayed as well.

In December of 2006, Lexam Explorations, owner of the mineral rights under the BNWR, notified the FWS that they intended to drill two 14,000-foot deep exploratory oil & gas wells (see map). Since Lexam owned the mineral rights, and had a surface-use agreement in place that had been established with the previous owner, FWS took the position that they did not need to engage the National Environmental Policy Act (NEPA) over the issue, and that there was no need to solicit public comment.

Many citizens and environmental groups disagreed. In May of 2007, the San Luis Valley Ecosystem Council filed a lawsuit asserting that the FWS had a duty to implement NEPA, and involve public process, to protect the public interest in the BNWR. The lawsuit established important safeguards for the refuge, and the FWS agreed to institute an Environmental Assessment (EA) before any exploratory drilling could begin.

Throughout the year of 2008, the EA process went forward. Over 47,000 comments were received from the public, including comments from many local entities that expressed concern over the fact that no Comprehensive Management Plan had been done for the refuge, and no baseline data existed for evaluating the effects of oil & gas drilling. Specific concerns about air quality were raised by both the National Park Service and the EPA. The State Historic Preservation Office and the Hopi Tribe expressed concerns about the cultural resources that could be damaged by drilling, and requested accountability regarding how these concerns would be addressed.

Despite numerous comments and concerns, expressed both in scoping, and as reaction to the draft EA, (see Press Release on EA) the FWS issued a Finding of No Significant Impact (FONSI) in November of 2008.

As the EA process went forward, concerns arose about the role that Lexam Explorations and its consultants were playing in the creation of the EA. The Citizens for San Luis Valley Water Protection Coalition, who had been involved in water protection in the same area in the 1990’s, filed a Freedom of Information Act (FOIA) request, in which they asked for documents and internal communications between FWS, the DOI Solicitor’s office, Lexam, Lexam’s attorneys, and ENSR Corporation, a consultant working with Lexam.

When these documents were released, it became evident that there was inappropriate influence, including specific wording and edits to the EA, and inappropriate exchange of information. This helped insure that the scope of the final EA was very narrow in its assessment of impacts from drilling. The result was that the EA, and the FONSI Record of Decision, were not a true representation of either the science or the concerns expressed during the EA scoping and comment period.

In September of 2009, at the request of SLVEC’s attorneys, U.S. District Court Senior Judge Walker Miller granted a Preliminary Injunction (PI) which recognized the likelihood that environmental groups would prevail in the lawsuit. Judge Miller’s decision, subsequent settlement talks, and the small likelihood of finding developable minerals (0.03%, according to a USGS study), have created a situation where purchase and retirement of the mineral rights may be the best alternative. Although litigation is focused on the BNWR, other federal land management agencies have expressed an interest in a broad mineral acquisition, which could further protect the Great Sand Dunes National Park and the Baca Mountain Tract of the Rio Grande National Forest.

In January of 2010, during the process of settlement talks stemming from Judge Walker’s PI decision, Lexam became a willing seller and offered to have the Mineral rights purchased for $9.7 million. The current goal is the development and implementation of a public/private partnership that can move swiftly to meet the challenge of purchasing these rights on behalf of the American public and having them retired in perpetuity.

SLVEC continues to advocate for protection of these lands. In approving the legislation of 2000, Congress recognized that these lands offered “unique hydrological, biological, educational, and recreational values deserving of preservation into perpetuity.”

We now have the historic opportunity to complete the process that began with the Park and Preserve Act of 2000 and protect this public lands complex for the American people.

http://slvec.org/index.php?option=com_content&view=article&id=8&Itemid=9