| One Year and 37 Boreholes
Later...
By Jennifer Allen
From Fall/Winter 1997 Newsletter
On a crisp, but clear October morning, a small
gathering of Western Shoshone and staff of the WSDP
proceeded up to one of the hot springs in Crescent
Valley. For the past year and half, this spring has
been at the center of unfolding conflict between
Western Shoshone, Oro Nevada Mining Company, and the
Bureau of Land Management. The 25 people formed a
circle around the spring's source; prayers and tobacco
were offered to the spirits who inhabit the area. In
turn, the people asked for strength and clarity in
their efforts to protect the spring and the
surrounding area from increasing mineral developments.
The first sign of concern arose in March 1996 when
Oro Nevada Mining Company, the subsidiary of Canada's
Oro Nevada Resources, began lining Crescent Valley
with mining claim stakes. The Company then proceeded
to purchase the 50,000 acre Dean Ranch, thereby
controlling nearly every-other square mile in the
valley. Yet, their efforts were not accomplished
without scrutiny and protest.
Beginning in September, 1996, a series of
letter-writing campaigns were launched pressuring the
gold mining company and the BLM to respect Western
Shoshone requests that particular areas around
Crescent Valley not be= disturbed. Western Shoshone
also requested to meet with the Nevada State BLM
Director; these request, however, were ignored. In
fact, in letters from then-State Director, Ann Morgan,
the BLM refers to the hot springs as an area
"claimed to be sacred." To squelch this
opposition, Oro Nevada representatives approached the
Dann family, offering to buy their home for a meager
$183 per acre.
Western Shoshone Met with Locked Doors
Frustrated with unanswered letters and attempts at
discussion, a protest was held at Oro Nevada's office
in Reno, Nevada on April 30, 1997. Approximately 30
people, including Western Shoshone, Paiute, Pit River
and non-indigenous supporters held signs on the
sidewalk adjacent to a busy Reno street. The protest
coincided with the Western Shoshone National Council
serving notice to Oro Nevada that an injunction had
been filed against the company and the BLM in the US
District Court of Nevada. Western Shoshone Marshall
Sam Marsh and Council staff person, Jack Orr were met
with locked doors at Oro's office. Later, a visibly
irritated Oro Nevada President Bob Jones, agreed to
meet in his office complex parking lot, where he
accepted and signed the court documents. (see article
on Injunction)
BLM & Selective Hearing
The BLM's regulations that govern hardrock mining
are the 43 CFR 3809's. These regulations specify that
the BLM is to prevent "any undue or unnecessary
degradation." Additionally, these rules state
that any disturbance less than 5 acres is considered a
"Notice -Level" activity and does not
require any kind of permitting. All a mining company
is required to submit to the BLM is a small
"Notice of Intent" report which outlines
their drill and reclamation plans. When more than 5
acres are disturbed from mining activities, the BLM
and the mining company are supposed to compile a
"Plan of Operations," (POO) a more extensive
analysis of the mining activities.
While the protest was happening in Reno, Oro Nevada
was busy carving a road in section 10 (the 1
square-mile containing the hot spring). The first 900'
road was carved during the protest, the second 3,000'
road was cut into the hill north of the spring on May
1st. These roads, in combination with the past,
current and proposed drill sites and associated roads
created more than 5 acres of disturbance in the area
north and east of the hot springs. Thus it would seem
that the BLM would be required to compile a POO. When
questioned, however, the BLM pulled out their
"Interim Revegetation Standards."
Ostensibly, these standards are to determine
successful revegetation. Yet, at the end of the
memorandum, it states that Notice-level activities
will now allow up to 10 acres of total surface
disturbance as long as no more than 5 acres are "unreclaimed"
at any point during exploration. Once again, the BLM
will twist and bend to accommodate the mineral
industry.
But even worse than avoiding the POO, the BLM is
also avoiding talking with the Western Shoshone about
their concerns for cultural sites. To date, five
resolutions from four different Western Shoshone
Tribal Councils have been passed - in Ely, Duckwater,
Yomba and Timbisha. Several Western Shoshone
individuals have also written letters to the BLM
expressing their concerns about the potential for
cultural and spiritual sites being disturbed by Oro
Nevada's drilling. Through a twisting of regulations,
the BLM claims that they are not required to consult
with Native Americans unless a POO is submitted. Yet,
above and beyond the official Native American
Consultations required by NEPA, there are a number of
other laws that apply which are independent of POOs
and NEPA. Some of these include, the National Register
of Historic Places, the American Indian Religious
Freedom Act and President Clinton's Executive Order
13007 on Sacred Sites. Instead of following the laws,
the BLM ties their own hands behind their backs,
ignoring Western Shoshone concerns.
Oro Nevada's door step
In June, 1997, the Defense Project learned that Oro
Nevada Resources' first annual shareholders meeting in
Toronto, Canada was scheduled for June 24th. We
couldn't pass up this opportunity to hold Oro
accountable for its disrespect of Western Shoshone
land rights and to alert the Canadian public of the
Canadian company's actions on Western Shoshone land.
After two weeks of quick preparations, a group of
seven people, including Raymond Yowell, Chief of the
Western Shoshone National Council, Carrie Dann, her
nephew Russell Dann and four WSDP staff arrived in
Toronto, Canada on June 22nd. Before the dozen
corporate officials and management, WSDP staff,
Christopher Sewall and Western Shoshone
representative, Russell Dann asked whether Oro Nevada
was going to respect the wishes of the Western
Shoshone not to disturb cultural and spiritual sites
in Crescent Valley. Michael Farrugia, Oro CEO,
responded with Oro's usual reply: "We are
complying with all local, state and federal
regulation." Oro Nevada was then reminded that
despite compliance with regulations, their treatment
of Western Shoshone people and lands is still
unethical and immoral. This was backed up by the
presentation to Mr. Farrugia of hundreds of petitions
from Western Shoshone supporters in Italy.
Outside the Toronto Board of Trade Building, 50
people gathered in solidarity with the Western
Shoshone Nation. Banners and placards demanding that
Oro stop their destructive search for gold, drew
public attention to Oro Nevada's crimes on Western
Shoshone land. Raymond Yowell and Carrie Dann
addressed the protesters, describing the impacts of
Oro and other gold mining operations and thanking them
for taking this stand with the Western Shoshone.
The Canadian media was on hand to report the
protest. Interviews were broadcast on several radio
programs in Toronto. An article in the national
Canadian paper, "The Globe and Mail"
concluded by noting that Oro's stock fell $0.10 that
day.
Another ceremonial site threatened
At the shareholders' meeting, Oro distributed their
exploration update. Enclosed was a map indicating
their plans not only to drill near the hot spring, but
also in Section 4. One drill target appeared in the
same location as the WSDP's cultural and spiritual
encampment, created by the Western Shoshone National
Council. This encampment holds ceremonial areas that
continue to be used; it is also the site of the annual
Western Shoshone Spring Gathering, which brings
together Western Shoshone and their supporters for
celebration and prayer.
During the week of July 14-18, Western Shoshone
individuals, organizations, and tribal governments, as
well as supporting individuals, flooded the offices of
the local and state BLM, asking them not to approve
Oro's Notice, emphasizing that no Western Shoshone
person has been contacted regarding this sacred site
and any drilling activity would desecrate the area.
Despite these flagrant violations, the local BLM
maintains that they are complying with the law and
that it is not within their authority to deny Oro
their right to conduct exploratory drilling.
Nonetheless, due to public pressure from the letters,
phone calls and faxes, Oro has not yet attempted to
drill in Section 4.
Changing Water Into Gold
Meanwhile, under the table, Oro Nevada has been
attempting to conduct a land swap with the Bureau of
Land Management. This plan, finally obtained by the
WSDP through a Freedom of Information Act Request, was
for 8,000 acres of Oro's private property in the
mountains, in exchange for 22,000 acres of Western
Shoshone land (so-called public lands) in the valley.
The lands desired by Oro Nevada span nearly the entire
valley along the base of the Cortez Mountains. This
includes the majority of the Dann family's traditional
lands as well as many cultural sites such as the
ceremonial areas in Section 4 and the hot spring in
Section 10. If this land was acquired by Oro Nevada,
even the meager procedures of the BLM would be exempt
from the block of private land. The Dann family would
be effectively cut-off by the mining company from the
lands that have sustained their family for
generations.
Violations and Retractions
On August 28, Oro's drill rig hit a geyser which
sprayed hot water 60 feet high into the air. It took
Oro over 24 hours to handle the situation, finally
having to resort to bringing in costly equipment from
Salt Lake City, Utah, over 250 miles away. During this
large water flow, owners of property with a hot spring
miles down the valley noted that their flow was
reduced for that same period.
Allowing water to flow after drilling has stopped
is a violation of Nevada State law (NRS 534.410).
Other violations have include water contaminated with
hydraulic fluids at one of their drilling sites. The
Nevada Department of Environmental Protection (NDEP)
told the WSDP that they were going to issue Oro a
Finding of Violation, only to retract it after the
company pulled some strings and agreed to voluntarily
clean up the spill. When we questioned why the NDEP
did not issue a Violation, they responded,
"That's just not the way we do business."
The NDEP had previously stated violations like Oro's
happen all the time, but no one ever reports them.
Apparently gold mining companies remain above the law,
and these violations and contamination will continue
to occur if laws are not enforced.
Falling Prices, Rising Hopes
The day after the ceremony, October 26, Oro
Nevada's drill rig slowly pulled itself down from the
base of the mountains and out of Crescent Valley.
Drilling had begun in Section 10 on September 15th;
seven drill holes were planned. Yet when the drilling
rig left, only three holes were completed. The
"problem," as the public relations man
explained to the Dann sisters, was that the drill rig
kept hitting water, resulting in costly consequences
for the company.
One year and thirty-seven drill holes later, Oro
Nevada was forced to pull all their equipment out of
the valley. With increasing drilling costs, water
contamination clean-up costs and plummeting stock
prices, coupled with the falling price of gold, Oro
Nevada has gone back to the drawing board. While all
is quiet in Crescent Valley, a potential storm awaits:
Oro Nevada is now looking for a joint venture partner.
(see Oro Nevada Action Alert).
But Gold prices are at the lowest they've been for
over two decades, making investment in the industry
shaky. Countries from around the world are considering
selling their gold holdings, dropping gold prices even
further. On December 4th, gold was listed at $292 an
ounce, compared to the 1996 December price of $390.
Oro's stock has also dropped comparatively, in
December 1996 stock was listed at $3.20 a share - as
of Dec. 4, 1997, Oro shares fell to $0.22.
While this downward trend seems promising, the
deflated prices actually encourage consolidation
within the mining industry. The smaller companies must
enter into a joint venture or be bought out by the
ever-growing transnational companies. This is a
critical time to let Oro's possible partners know that
there is more than appears at the surface with Oro
Nevada. Low prices are not worth the costs.
Background on Western
Shoshone Issues
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