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The owners of RX Gold and Silver Inc., which operates the underground gold and silver mine near Marysville, announced in mid-June its intention to merge with the second largest silver producer in the United States, U.S. Silver Corp. U.S. Silver operates a number of existing mines across central and northern Idaho. The move, although not unexpected, changes some aspects of the proposed Drumlummon Mine expansion at Marysville. With the merger, U.S. Silver now controls 70 percent of the ownership of the mine, and RX would retain the remaining 30 percent. The Drumlummon, once one of the richest gold mines in Montana, was purchased by RX in late 2008. The company acquired an exploration license from the state Department of Environmental Quality (DEQ), and has operated a producing mine under the state’s Small Miners Exclusion Statement. This winter, the company submitted an application for a full operating permit to the DEQ. The permitting process was held up by a lengthy deficiency response from the state in March, and the company is still in the process of responding to those technical deficiencies before resubmitting their application. Marysville residents organized under Sleeping Giant Citizens Council in 2011 in an effort to hold the mine accountable to the community on issues related to water quality and quantity, dust, noise, and traffic. land and water Marysville mine merges with major silver company With the merger, it is uncertain whether the company will move forward with plans to build a processing mill near the mine. Recent communications with the mine appear to indicate that they will be hauling the ore to existing processing facilities at U.S. Silver’s Idaho mills. The merger also comes as the operators of the mine have been quietly expanding their ownership of mining claims in the Marysville area. The mine recently bought the old Belmont mine at the nearby Great Divide ski area. In a press release, U.S. Silver boasts tremendous growth potential from the expansion at Drumlummon and Belmont. Residents are concerned about sizeable impacts to the surrounding aquifer from further mine expansion. Marysville residents continue to push the DEQ for a thorough and transparent review of the operating permit application. In a recent letter to the DEQ’s hard-rock mining program, the group called for comprehensive monitoring of water quality and quantity by the state to commence immediately rather than relying on the company’s self-reported data until the issuance of an operating permit. – Clayton Elliott Senator Max Baucus 511 Hart Senate Offi ce Building Washington, DC 20510 Offi ce: (202) 224-2651 Fax: (202) 224-0515 Web mail: http://www.baucus.senate.gov/?p=contact Take action: Bill to ‘streamline’ hard-rock mine permits moving through U.S. House Oversight of mines like Drumlummon could be weakened if legislation in Congress advances. The mining industry and its allies in the U.S. House of Representatives have introduced a bill to “streamline” (that is, weaken) the permitting process for new hard-rock mines on federal lands. H.R. 4402, among other things, would seriously weaken protections for land, water, and wildlife, and it would create numerous loopholes for compliance with the National Environmental Policy Act. When you have a track record like Senator Jon Tester 724 Hart Senate Offi ce Building Washington, DC 20510 Offi ce: toll-free (866) 554-4403 Fax: (202) 224-8594 Web mail: http://tester.senate.gov/Contact the mining industry, we cannot afford to loosen the critical oversight that protects our communities and natural resources from the impacts of hardrock mining. The bill recently gained the support of the House. Before consideration in the Senate, call Senators Max Baucus and Jon Tester (D-Mont.) and urge them to oppose H.R. 4402. Montana just can't afford another Zortman- Landusky, in which taxpayers are left to clean up after the mining industry. See contact information below. – Clayton Elliott Montana Delegation Information Representative Denny Rehberg 2448 Rayburn House Offi ce Building Washington, DC 20515 Offi ce: toll-free (888) 232-2626 Fax: (202) 225-5687 Web mail: https://rehbergforms.house.gov/e-mail-denny Gridlocked Congress stalls bill to advance wind energy With the existing federal production tax credit (PTC) for the development of wind generation set to expire at the end of the year, congressional leaders are scrambling to find ways to extend the measure through 2013. According to the American Wind Energy Association (AWEA), the PTC has been a tremendously effective tool to encourage the new development of a proven homegrown and renewable energy source – American wind energy. AWEA goes on to argue that in the process, it has helped to cut the costs of wind energy to consumers by more than 90 percent and fostered economic development in all 50 states. Indeed, the production tax credit has increased the production of wind energy in Montana and surrounding states markedly. Nationwide, the average annual investment in wind energy projects has increased to more than $15 billion over the last five years. In Montana alone, wind energy production has grown from less than 2 megawatts in 2005 to 627 megawatts by the end of 2012, driven by Montana’s renewable energy standard and the federal PTC. Unfortunately, the legislation has failed to gain much traction amidst a deeply divided and partisan Congress, despite bipartisan support for the PTC’s extension. Proposals in both the House and Senate have met stiff opposition from the fossil fuel industry and their allies in Congress. A Democratic proposal introduced recently in the House, H.R. 6031, proposes to offset the costs of extending the PTC by repealing a provision that allows oil companies to deduct foreign tax payments from their domestic tax bills. – Clayton Elliott Take action! Please call Representative Dennis Rehberg (R-Mont.), and ask him to co-sponsor H.R. 6031, which would renew the federal production tax credit on wind energy. It would also help balance the budget by paying for the renewal through eliminating wasteful subsidies for multinational oil companies. Tell Rehberg that it is time to invest in energy production here in Montana, not overseas. See contact information above. Source: Miles Franklin Precious Metals Specialists (2012) The Plains Truth Summer 2012 Page 12
Much work remains on Farm Bill: Big Ag trying to dominate land and water Popular headlines praise the Senate’s bipartisanship in passing the 1,000-page 2012 Farm Bill. Here’s what the Senate and House Agriculture Committees’ versions of the Farm Bill mean for Montana’s farmers, ranchers, and consumers (so far). Direct payments to farmers are ended, though most of those funds have merely been rechanneled through other programs. The House Ag Committee and full Senate versions vary widely, with the Senate’s version directed more toward closing loopholes and limiting commodity payments, and the House Ag Committee version leaving loopholes “that allow mega farms with reasonably good accountants and lawyers to collect unlimited payments,” according to the National Sustainable Agriculture Coalition. The Environmental Quality Incentives Program (EQIP), a program seen as a target for budget cuts, was re-funded and expanded. This program provides incentives to farmers and ranchers making a living on a family scale. However, organic farmers are eligible for only a fraction of the payments that other farmers, and even confined animal feeding operations, can receive. Very large cuts to the Supplemental Nutritional Assistance Program (SNAP, formerly the Food Stamp program) in the House bill will cause two to three million Americans to lose food assistance in these hard times. Meatpacker monopoly Neither version of the Farm Bill does much at all to address the meatpacker monopoly in livestock markets. Monopolistic conditions leave ranchers with no real market for selling and leave consumers with little choice as to what they put into their mouths. Whatever ranchers are paid, What's next? As this edition of The Plains Truth is going to press, the August recess approaches and time ticks toward the Farm Bill’s September 30 expiration date. There are abundant differences between the House and Senate versions of the bills that call for citizens to be heard. The Western Organization of Resource Councils will send an email Action Alert to help you make your voice heard… watch your In-box. it is less than they would be paid in a competitive marketplace. Northern Plains’ Agriculture Task Force members have fought for years to loosen the stranglehold that producers of technology, seed, and institutional knowledge have over the farmers and ranchers making a living by producing food. A handful of companies sell the inputs farmers and ranchers need, and a mere handful buy what farmers and ranchers produce. In an ongoing effort to undermine familyscale producers and to restrict information available to consumers, the House language pressures Ag Secretary Vilsack to agree officially with the World Trade Organization’s declaration that country-of-origin labeling for meat is a fair trade impediment. Additionally, GIPSA (Grain Inspection, Packers and Stockyards Administration) rules that address contract fairness are also under attack. And Big Ag is pushing for a rider in the House bill to abolish the already weak approval process for genetically modified crops. – Kelsey Miller This radiant star could be yours! Look for a color photograph of this quilt in your mailbox in September. This handsome “radiant star” quilt was hand-sewn by Donna Yarger of Circle. It will be raffl ed off to support the work of our Agriculture Task Force. We will draw the winning ticket at the Northern Plains Annual Meeting in November. Tickets will be available for $10 each or three for $25. If you want to see it in person, stop by our Home on the Range, 220 South 27th Street, Billings. We will also display it at some of our upcomng events. Montana’s Public Service Commission (PSC) has denied a NorthWestern Energy petition for a three-year waiver from the “community provision” of the state’s renewable energy standard. The Commission on June 1 instead granted the utility a one-year waiver, and reiterated its obligation to meet the requirements by 2013. The state’s renewable energy standard, enacted by the Legislature in 2005, requires all regulated public utilities in the state to acquire at least 15% of their retail electrical sales from new renewable sources, such as wind and solar, by the year 2015. It also requires a certain portion of that energy come from small projects that are at least partially locally owned, community renewable energy projects (CREPs). This is the community provision. NorthWestern is on track to meet the overall target by 2015, but has fallen short in its attempt to procure the required 44 megawatts from CREPs. In its findings, the PSC stated that NorthWestern had not fully justified that it had taken “all reasonable steps” to acquire those energy projects into – Kelsey Miller Board grants NorthWestern one-year ‘community’ waiver 2013 and 2014. It did, however, acknowledge that the utility faced circumstances beyond its control in 2011 when two projects it had sought to bring on-line fell through. In its ruling, the PSC said that, despite the setbacks in 2011, the utility could have been planning on compliance in 2013 and 2014. As some noted, planning for compliance would have been far more prudent for NorthWestern than spending resources in a fruitless attempt to have this section of the law repealed by the 2011 Legislature. “Planning for power generation is a lengthy process,” said PSC Vice Chair Gail Gutsche. “NorthWestern Energy is responsible for taking all reasonable steps and making adequate preparation to comply with the CREPs standard. The bar is high, and they failed to meet it for 2013 and 2014.” The utility now has until the end of 2013 to fulfill its community provision requirements. If it is not able to comply, it will face a penalty of $10 per megawatt-hour, paid for by NorthWestern’s shareholders (rather than its ratepayers). – Clayton Elliott The Plains Truth Summer 2012 Page 13
Page 1 and 2: For 40 Years Protecting Montana’s
Page 3 and 4: people of the plains Commitment to
Page 5 and 6: What would you do if 40-50 addition
Page 7 and 8: land and water Momentum builds for
Page 9 and 10: ng montana’s future es mining pol
Page 11: 2012 Election Vote No on Referendu
Page 15 and 16: council roundup GNA members study l

Summer - Northern Plains Resource Council

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