All Posts Tagged With: "Oregon Resources"
UPDATED">Kevin Stufflebean does his best impression of Tina Fey doing Sarah Palin UPDATED
This is too good not post if only to expose the mindless jabber that emanates from Stufflebean’s mouth. The fact that he supports LNG and Oregon Resources without benefit of an economic impact analysis and doesn’t have a clue what he’s talking about with respect to the actual ‘benefits’ to the County is just gravy.
This would actually be worthy of a transcription because I think when seen in writing Kevin’s speech patterns are the most illuminating. The camera pans the crowd and not many of them (except for Steve Pickering in sections not pictured here) seem impressed.
Here is a list of links to sites that give some relevant statistical data about Coos County. Did you know that we have one of the highest teen pregnancy rates in the nation? Did you know the illiteracy rate is 10% (no, not just our elected officials)?
Did you know one in every 642 homes in Coos County is in foreclosure and there are over 200 foreclosures going on right now?
UPDATE Okay, this is definitely not the best use of my time but I transcribed the video and ran it through word cloud software and this is what Kevin’s speech looks like to a computer. The larger the word the more often he uses it. Notice the size of GOING (hopefully he will be going soon)

Here is the quick transcription. Later I will annotate as several people have sent me very funny comments that deserve mention in the appropriate sections.
Transcription
Um. We’ve got candidates who are running who are very actively engaged with the process of not supporting jobs in Coos County. We have the LNG facility we have the Oregon Resource corporation a company that wants a place here those are jobs that are going to come to this county and employ individuals and you know, your business is going to be impacted severely by LNG if it wasn’t to come here.
When we were asked a question down at the mill casino the other day about what was going to be the benefits to Coos County if LNG was to locate here. This is not a campaign where you have people who are going to ride the fence and say ‘oh I really have to look at it and see if I really support it or don’t support it. You need people who are running for office who’s going to tell you the facts and is going to give you the real issues.
MG — Not to put to fine a point on it, how does one actively not support jobs?
When you look at LNG, if they do locate here, the benefits to Coos County is they are going to fund twenty plus full time sheriffs in our department. That means you as taxpayers do not have to pay for those the business is going to support those. How is that not a benefit to you as taxpayers in Coos County? And when we were asked the question the candidate Andy Jackson couldn’t really tell us what the benefits to that was. But yet, he is very willing to tell you he is willing to raise your property taxes for you to support something that he is not being accountable to you already on.
MG — Kevin fails to mention the enterprise zone tax exemptions both the Canadian LNG firm and the Australian strip miners will plan to take advantage of.
When you look at the aspects of Oregon Resources Corporation we have a lot of truckers right now in the business in Coos County and when you have individuals who run for office to represent you as taxpayers and we are going to stand in your way to allow you to do business in your county that is the wrong reason to be electing people to office in Coos County.
MG — First, Kevin, your job is to properly manage and protect publicly held resources, not to privatize the community treasure to benefit a few at the expense of the many. There is a public process for a reason… even if you don’t agree with it.
We are there to uphold the constitution and the laws of this country and our county and our state and we are here to promote free enterprise not stand in the way of businesses to do what they do. And businesses are the ones that are creating the jobs it is not government we need to step back and insure that were factoring in all the issues that were responsible for, protecting and safety aspects of every business that comes here but it is not our job to be standing in the way for people who come and do business here.
MG — He is speaking to American’s for Prosperity here so he had to throw in the constitution…(even though he probably hasn’t read it)
It is not our job to say ‘oh we are going to put that up to vote to see whether or not people want that business in this county or not. The minute we let people decide that we can vote on whether a job comes into this county or this city then we have done an injustice to these companies because they have the right to locate here as American citizens and do business as they desire. That’s one of the best things about Americans they have the ability to be able to do that. And you do not want people standing in your elected positions that are going to continue to stand in the way to be obstructionists with that.
MG– Nice sentiment but both of the companies in question are foreign.
Because those individuals are going to be paying more property taxes, ensuring that we support our county government, our city government ad our state government so its just been appalling to me and that’s why I like the fact that we have, ah, seven candidates running for the position because it really demonstrates the lack of understanding of how county government operates,. It demonstrates their inability to understand how we interface with city government, and even with the state government.
MG — Again, no mention of the enterprise zone property tax exemption. Then we have the ‘six degrees to Kevin Bacon’ argument… he is glad there are seven candidates running because it proves their lack of understanding of government and inability to understand????? How is that, exactly?
I have felt very fortunate being actively involved, as most of you have noticed I have been very involved with House Bill 2001 with the gas tax increase and was very actively involved with trying to oppose that because what it was doing was adding more burden on you folks in an economic time like we are in now when people are losing their jobs over and over and over but yet they were increasing your taxes and that’s one of the things we said ‘you just cannot continue to do that with things like that when were in the situation we are in with our economy’.
MG — Playing to the ‘keep the government out of my medicare’ crowd so he throws in some anti-tax talk.
People in Coos County deserve again the services we are responsible to provide to the citizens. We cannot provide, we cannot help all the issues for individuals in Coos County, so that’s why your county government is responsible for doing the specific services that we offer to do.
MG — Typical Stufflebean speak — nonsensical gibberish but looks good in a word cloud.
Something fishy with the Intl Port of Coos Bay and the Army Corp of Engineers
Previously, I wrote about the International Port of Coos Bay staff apparently advocating on behalf of Oregon Resources without benefit of commission approval or a public meeting. From the commissioner’s packet of November 19, 2009 I quoted the following and encouraged everyone to file a FOIA request with the Army Corp of Engineers when Dan Smith thanked Port Director, Jeff Bishop for helping them get their permits.
Upon a motion by Commissioner Scott (second by Commissioner Smith) the Board of Commissioners authorized staff to explore the record surrounding the Oregon Resources Project and come back to the Commission at a later date concerning advocacy.
During a January 28, 2010, SCDC meeting Dan Smith, COO of Oregon Resources is warning his investors may bail out if they can’t start driving pile at their processing plant by March 15. The Army Corp is telling them they will not have a permit in time to start work by this deadline. Miraculously, in February, Smith advises the commission they have a permit and that ORC’s attorney says without the help of Jeff Bishop it could not have been done. Commissioner Kronsteiner’s company, West Coast Contractors gets the contract to drive pile at the processing plant.
In April, I asked the commission when the decision had been made for the port to advocate on behalf of ORC as there is no evidence in the public records that staff requested permission during any public meeting. Bishop advised me staff never took it to the commission because all they did was make inquiries, they did not advocate.
As I requested of the readers of this blog, I filed a FOIA request with Army Corp.Today I received a response from Army Corp claiming there had been no communications with the port regarding Oregon Resources.

A follow up email to the FOIA officer, Janice Sorenson confirms …“Yes, a telephone log would be included in the phrase all communications.”
So either the Army Corp did a poor job of researching or the inquiries occurred in private and were not ethical or someone isn’t telling the truth. See for yourself in the video montage below beginning with Dan Smith on January 28, 2010 at the SCDC meeting, moving to the the February 18, 2010 port meeting where Smith thanks staff for talking to DEQ and gives credit to Bishop for the permit, to April 15, 2010 when Bishop confirms he spoke with Army Corp. You decide. For my part I have serious doubts about what went on here and emailed the FOIA office and Bishop to see if we can clear this up.
Maybe Arne Roblan should investigate this matter since he seems so concerned with public process at the moment.
It ain’t over til the fat lady sings
Or, in the lyrics of Lenny Kravitz, ‘it ain’t over til its over’. The World in its latest crappily written editorial is trying to reduce the chromite strip mining issue to a game metaphor
The score is Miners 42, Objectors 0. The Miners have the ball. It’s first down and goal to go.
Not only are they revealing their lack of knowledge about what ‘game’ is in play but obviously the author hasn’t read Thomas Paine, The Constitution or The Federalist Papers because if they think for a second the game doesn’t involve public process they are sadly mistaken and may well wind up with egg on their face and believe me I will post every eggy graphic on the matter I can find. The World may as well be playing Quidditch à la Harry Potter for all they grasp about the situation.
All the ‘Objectors” have to do is snag the golden snitch or in this case a storm water permit, or prove process has been subverted and the game is over for ORC and The World is caught in its own bias and ignorance.
It aint’ over til the fat lady sings and there are more than one Joe Montana hail Mary passes in the grasp of some Dwight Clark wide receivers spriraling down the field as we speak. Let’s win this one for ‘the Gipper’!
Coos County leadership big on promise low on delivery
This isn’t the first time Coos County citizens have been sold on the promise of jobs and economic revitalization by local business leaders. When I moved here in 2003 the State legislature had put the finishing touches on a bill to allow a natural gas pipeline deemed so critical to economic development in the area it was rushed through under “emergency clause in the legislation that allows for it to go into effect immediately upon the governor’s signature”.
Senate Bill 0321, which gives the Public Utility Commission the authority to approve a contract negotiated between Coos County and NW Natural, received a 59–0 approval by House members.
Wearing a bright yellow hard hat on the House floor, Rep. Joanne Verger, D-Coos Bay, urged the House to pass the bill and remove the legislative hurdles to the construction of the pipeline.
“SB 321 takes care of the last piece of housekeeping business for the Coos County pipeline,” Verger said.
In July, 2004, The World newspaper reported on the boost to the economy anticipated by the natural gas pipeline.
A $51 million pipeline could bring millions of dollars of business to Coos County and revitalize the largest metropolitan area in the West still without natural gas, county officials say…
…For years, economic development officials in Coos County have insisted that the pipeline is necessary to attract companies already drawn to its deep-draft port and inexpensive real estate. The lack of natural gas kept companies like U.S. Gypsum moving the area.
“They’ll ask you, ‘Where’s natural gas?“‘ said Martin Callery, the port’s marketing director. “They’ll say, ‘Call us when it’s here.“‘
Now, he said, the pipeline will give Coos Bay the chance to reinvent itself — much like Bandon, which landed a world-class golf resort, and Florence, which has become a magnet for retirees.
Then director of SCDC, the late Ron Optiz told The World “more than one company has expressed interest about moving into the area once the pipeline is in.”
By January 2004, The World was reporting on all the money being poured back into the local economy via local equipment rentals and how the imported work crews, Henkels & McCoy, were regularly eating lunch at Bay Area Senior Activity Center increasing their business ‘quite a lot’.
Coos County was also promised earnings from the delivery of natural gas.
Coos County is expected to benefit rate-wise from the pipeline.
According to an agreement between NW Natural and Coos County, NW Natural will ship and distribute natural gas to customers and pay a 1-cent-per-therm transportation fee.
But the transportation fee isn’t where the county hopes to make money, according to Coos County Commissioner Nikki Whitty.
“We never did this as a project for the county to make money on the transportation agreement,” Whitty said. “We did it as an economic incentive to get (vacant) properties on the tax roll. [Emphasis mine] Someday there will be money from the transportation fee, but not for a while.”
Such were the promises made by the leaders and duly reported verbatim by the local paper that Coos County citizens agreed to $27M in bonds to help pay for the pipeline. By 2007, things had gone terribly wrong, so wrong that Coos County taxpayers were performing their own mini version of the TARP Wall Street bailout
Coos County has yet to realize consistent profits from its natural gas pipeline, but thanks to an Oregon Supreme Court ruling in 2006, it collected about $50,000 in property taxes on the line last year, despite being its owner.
The taxes were paid by NW Natural, the company that maintains and operates the pipeline. Fearing the county might find itself paying the tax in the future, however, county commissioners joined with the power company to lobby for legislation to remove the pipeline from the tax rolls. [Emphasis mine]
House Bill 3046, supported by all of the elected representatives of the South Coast, did just that…
…
NW Natural will still pay property taxes on the distribution system it owns in Coos County, but not on the pipeline, which had an assessed value in Coos County of about $33 million.Coos County Commissioner Nikki Whitty said it was only fair to support the legislation.
Fair to whom, certainly not the taxpayer sold this boondoggle in the first place, the article goes on to explain why the taxpayer is bailing out NW Natural for making bad business decisions. Free market advocates should take note in a truly free market, the taxpayer doesn’t bail you out.
Gary Bauer, director of government affairs for NW Natural, said the company has a 20-year plan to make their entry into the area profitable, but as of last week, they only had 801 customers.
“It’s definitely not profitable today,” he said.
He also noted that the company does not make any profit from maintaining the pipeline, receiving about $24,000 a year from the county. Whitty said the county essentially exchanges checks, as it charges the company a similar fee to transport gas along the pipeline.
Despite these factors, the Department of Revenue declared NW Natural was responsible for paying property taxes on the pipeline.
After several discussions with state economists, NW Natural was able to convince the Department of Revenue to reduce its tax obligation to a nominal amount. But the department could not remove the pipeline completely from the tax rolls.
To do this, Bauer went before the House Revenue Committee and requested legislation to accomplish this.
Now, the same people who brought us the pipeline and sold it to us via reconstituted press releases presented as news at The World are trying to pull the same marketing gimmick with strip mining and jobs and all the glowing benefits to local companies like West Coast Contractors (did they bid for the ORC work?).
The media in West Virginia paid homage to big coal and covered for all the raping, plundering and pillaging and human sacrificing that was rampant in the industry to keep the workers uninformed. There is too much to write about in one post so I will get more up soon but it is starting to feel like this is what is happening here as well.
Several readers have contributed research to allow me to put this up tonight and I have an inbox full of lots more for several eye opening posts over the next few days.
Thanks to everyone who has been helping, keep that info coming
ORC getting desperate???">ORC getting desperate???
While I haven’t seen it yet there is a half page ad in both The World and Bandon Western World from Oregon Resources Corp thanking ‘everyone’ for supporting strip mining or words to that effect. Two half page ads… maybe that explains the artful interpretation of qutoes from people like Jody McCaffree and forester, Bob Laport (so far I have heard of no clarification at The World).
As I wrote yesterday there is a trend in some areas on the part of media and established big businesses to omit news not favorable to the biggest ad purchasers. Free and open press is critical to a functioning democracy and necessary for a people to have adequate information to participate in their own governance.
Am hammered today and also want to spend some time with my mountain bike but there is a lot of information coming this way and I will try to disseminate within the next couple of days.
ORC rallies forces and calls in the generals UPDATED">ORC rallies forces and calls in the generals UPDATED
Fur was flying yesterday during the public comment period at the Coos County Board of Commissioners meeting. Moved to the Owen Building to accommodate the crowd the room naturally divided in half with pro-Oregon Resources Corp (ORC) and anti-ORC taking opposite sides of the room. Reportedly, out of town ORC management, Blacklock, Wilson and Garrett were in attendance despite ORC not being on the agenda.
Sadly, I was out of town so can’t report directly but as I understand it the anti-ORC forces spoke very well to the issue of strip mining in a designated coastal zone and appraising the minerals before cutting any deals. Numerous alternative means of generating revenue and jobs for the county were offered including carbon tax credits. The matter of an economic impact statement was hammered home at the meeting and through subsequent emails to the BOC and Stufflebean ended the comment period speaking on behalf of the company (can’t wait to see the video).
To help protect the coastal zone The Oregon Coast Alliance (ORCA) was formed in 2009. There are justified concern strip-mining is not a compatible industry with the Ocean and Coastal Resource Management Plan. The strip-mining process proposed is claimed by ORC not to be as invasive or difficult to mitigate as mountain top removal typical with coal mining but a recent EPA study confirms the damage done to the Appalachias through strip mining has been devastating. ORCA and ORC will be waging a battle with permitting agencies over this and other environmental issues surrounding strip mining near Seven Devils.
“A decrease in forest cover followed by conversion to grasslands or other land cover has the potential to shift the fauna of the region from that found in intact, high-elevation forests to one dominated by grassland and edge dwelling species,” the EPA report said.
Citing previous studies by U.S. Forest Service experts, the EPA report found that fragmentation is causing interior forest to be lost at a rate up to five times faster than the overall forest lost in the region to mountaintop removal.
The mining industry is a fairly hazardous employment choice and you can view statistics on mining related fatalities and injuries at the Mine Safety and Health Administration. Additionally, safety violations appear to be common place amongst mine operators and the recent mining deaths, once again bring to the forefront the flagrant disregard on the part of mine operators for the safety of their employees.
Is this really the type of industry we want in Coos County? Is this what we want Coos County to be known for? Strip mining and dirty oil filter recycling and foreign oil imports? This is a designated coastal zone not a sanctuary for dirty industry.
KCBY posted this report.
The World finally has there account up and manage to make strip mining sound like a woodlands restoration project.
There is timber growing where strip mining was done roughly 70 years ago. And county Forester Bob Laport has even contended the process may increase growth.
After the sands are mined it will take three to four days before the remaining sands will be redeposited into the ground. About 70 percent will go back, but Smith said there is only a 5 percent noticeable change.
‘We’re essentially fluffing it up and putting it back,” Smith said.
After mining is finished, Oregon Resources will pay to replant the timber.
Plant a pine here, an oak there, some trillium here…
UPDATE Just received some clarification from county forester Bob Laport regarding comments The World attributed to him in the graf above. Laport told The World that only in very specific circumstances where mining operation is occurring in hard pan similar to where cranberry bogs are housed, the ‘fluffing’ process might potentially benefit tree growth. The forester did not intend his comment to be construed as a sweeping recommendation of strip mining for purposes of encouraging timber growth.
More and more questions for Coos County leaders
Thank goodness citizens are taking notice of the sorry public money investment practices that seem to pervade Coos County. Someone is making money but it isn’t the taxpayer.
I have two questions, but first some background on why I have these questions.
The history of America is such that when people wanted to start a business they gathered the money and/or supporters, got the necessary permits and started their business.
Not so here in Coos County.
When Northwest Natural wanted to start their business here and lay their 12″ pipeline, the state legislature provided $4 million of our tax dollars ( 2 years before we knew of the project ). Then 2 years later our Commissioners convinced a majority of voters to place a $50+ Million bond against property owners for 20 years for the N.W. Natural project. Furthur the state legislators , under HB 3046, in 2007 forgave them their property taxes. The land owners whose property they took got no such consideration. To date I do not believe the tax payers have received any compensation and only minimal jobs.
When The Jordon Cove people wanted to start their LNG project our tax dollars, throuogh the Port of Coos Bay Commission, were used to obtain a contract with Weyerhaeuser. When they needed to exchange the wetlands on the site for another wetlands the Port of Coos Bay Commission, and the county Commissioners again came into play with legislation, and tax dollars.. They re-zoned Kentuck golf course.. Additionally, being in an enterprise zone they will be forgiven property taxes for 3 years.
Now Oregon Resources Corp., another foreign company, wants to do business with Weyerhaeuser in strip mining for chromite. Again our tax dollars are being used to make it possible. Our Commissioners plan on spending $1 Million+ of our tax dollars over 2+ years to re-do W. Beaver Hill Road so ORC can run their trucks 24/7 for 20+ years on a route presently called ‘scenic’. In 2009 the State and the county Commissioners forgave them their Corporate taxes for 10 years. They are also in an enterprise zone.
This seems to be only the tip of the iceberg.
My questions are: 1. How much money has the Northwest Natural 12″ pipeline netted to the citizens of Coos County & Oregon to date? 2. Are the county Commissioners going to again raise the citizens’ property taxes to the full extent under law or are they going to be considerate of our hard times and hold the line where it is??
Jaye Bell
Time to start hammering the questions but more importantly, demanding the answers. Some of our county commissioners, Kevin Stufflebean in particular, are not good at answering questions.
FONSI, SCDC and possibly an ORC in Coos County, a cautionary tale">Brief history of FONSI, SCDC and possibly an ORC in Coos County, a cautionary tale
For a good laugh download the first issue dated, September 9, 2009, of The FONSI Report, that’s FONSI as in ‘Friends of Sustainable Industry’, not FONSI as in the more commonly used acronym for ‘finding of no significant impact’, nor is it to be confused with The Fonz or Fonzi from Happy Days. Within the bowels of this premier publication, just past the image of a bloated LNG tanker at sea you find this tidbit
First, a bit about FONSI.
FONSI has been around for more than a dozen years and you may remember its work in advocating for the Coos County Pipeline or the formation of the Coos County Airport District. When there is a project of significance that affects our local economy, FONSI is generally pretty close by, often working behind the scenes to make things happen. FONSI’s work
is generally done by its board of directors, which is currently about a dozen in number. All are local business or professional people with a keen desire to see our community
prosper and enjoy the quality of life benefits that come with a stable and sustainable economy.
Can you imagine taking credit, actually crowing about being instrumental in bringing about the Coos County Pipeline? THE PIPELINE, you know, the one that went horribly bad and cost the County millions of dollars for their share of permit violations and still leaves us with 15%+ unemployment. The one where Nikki Whitty spoke at a public meeting in 2001 assuring the citizens that“We don’t set the tax rate, but believe the Oregon Department of Revenue would put NW Natural on the tax roll,” and yet any taxes paid have been passed on to the handful of natural gas users. That disaster still isn’t settled and there is a nice slide show on the FONSI handy work here. How many sustained jobs did FONSI bring to Coos County with that $50M fiasco?
Then there is the airport district. Surely, they don’t want us to thank them for the $30M+ executive jet parking lot built solely to benefit The Bandon Dunes? Within the same issue you will find this…
Air traffic and commercial passengers have declined year over year by 40% due to the recession and the discontinuation of Horizon’s service to Portland [in itself a story of complete ineptitude]…The coalition successfully negotiated a guaranteed revenue contract with Sky-West Airlines to continue service to Portland utilizing a United Airlines code share. Throughout the fall, winter and spring, the Coos County Airport District paid out nearly $500,000.00 in subsidies to guarantee continuation of the Portland service.
The report goes on to mention that your tax dollar ‘investment’ has paid off, and that bookings are up and are no longer subsidized, yet this KCBY report says
Airport Commissioner Joe Benetti, says they’ve been working with SkyWest for a while to add these two flights, after the airline scaled back northbound service last fall to just one flight a day.
“Now they’ll be be leaving at 5:40 a.m. and getting up there approximately an hour later. Then they’ll also have a 7:35 a.m. flight, which they have now. And then they’ll have one coming back from Portland at 7:30 p.m., getting here at 8:30 p.m. Another one leaving at 9:30 p.m, getting here at 10:30 p.m. And then San Francisco, they’re adding a third flight for the summer also.”
The airport is also working on improved connectivity on those northbound flights.
“We’re in the process of trying to get a Connect Oregon III grant with Klamath Falls and Salem. By doing that, we’ll get a grant that will help and assist SkyWest to have a reservation system. By doing that, then they’ll be able to connect, besides just United up in Portland, with hopefully Alaska Airlines and also with Delta, which will make the flights northbound even more favorable,” says Benetti.
None of the flights will be subsidized.
A ConnectOregon grant is without argument a form of subsidy and within every ticket is a tax. These people who take credit for this incredible economic disaster and try to sell it as if it is a success are the ones now pushing for LNG and chromite strip mining and some other dirty industrial jobs no one wants anywhere else. Why is Coos County still listening to them and letting them hold positions on public boards? Still electing them to councils and commissions?
The Bandon Dunes, despite being an ongoing and successful business got a taxpayer funded boost when the Coquille Valley Enterprise Zone was expanded. According to Nikki Whitty “In 2004 another boundary amendment was completed that added the Bandon Dunes property.” The Bandon Dunes currently pays the lowest property tax rates in the county. How has FONSI, the Coos County Pipeline and the Dunes supporting airport district helped Coos County?
You can read issue number two here, also a howler and number three here.
Issue 3 has many remarkable claims, not only about FONSI but also SCDC and The International Port of Coos Bay and the ORC.
SCDC also worked cooperatively with the Port in smoothing the way for Oregon Resources Corporation to secure permits from the Oregon Department of Environmental Quality and the US Army Corps of Engineers. The results were swift and ORC has commenced work on their processing plant in Eastside.
This is interesting on several counts. Number one during a public meeting of the Port Commissioners and recorded in the November 19, 2009 minutes, it was determined the Port would take a neutral position regarding ORC.
Upon a motion by Commissioner Scott (second by Commissioner Smith) the Board of Commissioners authorized staff to explore the record surrounding the Oregon Resources Project and come back to the Commission at a later date concerning advocacy.
Nevertheless, at a January 28, 2010 SCDC meeting available online ORC COO, Dan Smith is bemoaning the struggles they have encountered getting permits to extract minerals from within Coos County. Port Director Jeff Bishop is also present. Only three weeks later during a public meeting of the Port Commission, that can be watched here, Dan Smith of ORC stands to thank Bishop and port staff for their help in securing a permit from the US Army Corp of Engineers. A review of the minutes of subsequent port meetings yields no mention of the Port taking a pro-active or advocacy stance on behalf of ORC. Was this decision made without benefit of a public meeting and who made the decision for a publicly owned entity like the Port to advocate on behalf of a privately held corporation? Why is an organization that receives public funds such as SCDC lobbying on behalf of a private corporation? Why are FONSI and SCDC, both with such miserable track records still trying to manipulate Coos County economics? Is it merely a coincidence that Port Commissioner Kronsteiner, owner of West Coast Contractors gets the contract to drive pile at the ORC processing plant?
An email to both DEQ and the US Army Corp of Engineers asking just exactly how one goes about ‘smoothing the way’ has DEQ denying any prior knowledge of SCDC and the Army Corp recommending I file a FOIA request at a link here. So is FONSI just blowing more smoke, trying to justify their existence when they are really a ‘finding of no significant impact’? Is SCDC, locally famous for only creating two jobs, those within SCDC, misrepresenting its capabilities to justify its existence? Is Dan Smith grateful for ‘smoothing’ that port director Jeff Bishop never did, and if so why gush in public? Something isn’t right here and hopefully many will follow the FOIA link and ask for all communications, every sticky note, every phone call, every letter or conversation to find out.
Back to Bandon Dunes for a moment. SCDC has referred to the golf resort in their SDAT application as a ‘remarkable community partner’, however, when the Dunes learned ORC was going to be strip mining near the resort the Dunes had a very NIMBY moment.
Despite a belief Oregon Resources Corp. wouldn’t mine for chromite next to Bandon Dunes Golf Resort, company officials haven’t erased that plan.
Oregon Resources Chief Operating Officer Dan Smith said Tuesday the company never abandoned its interest in what’s known as the Shepard site, a sixth mining pit in the original plan.
Bandon Dunes attorney Al Johnson said it’s news to his client. He first heard about Smith’s comments Wednesday afternoon and immediately called and left a message with Oregon Resources’ attorney Steven Abel, of Stoel Rives in Portland. As of this morning he hadn’t heard back.
“Obviously it’s of concern,” Johnson said. “We had no advanced knowledge and we’re still in the dark.”
The resort is constructing a new 18-hole championship golf course at the northeast corner of its holdings — the area closest to the Shepard site…
…In August 2007, the company had announced it no longer was interested in the site, just one day prior to the Coos County Planning Commission’s approval of the company’s conditional-use mining permit. At that time Bandon Dunes General Manager Hank Hickox said there had been dialog between Oregon Resources representatives and Bandon Dunes attorneys for weeks about the site that is located about a mile and a half from the resort. He said then he was relieved the company had lost interest.
“We were concerned about the 24-hour activity,” Hickox told The World in August.
Remarkable community partner that they are, now that they are no longer threatened by the industrial strip mining the Dunes has left Bandon Woodlands Community Association to fend for themselves.
By the way, if anyone really feels sorry for miners like Dan Smith or Oregon Resources or their Australian owners read up on the Mining Act of 1872 and see just how much common public treasure has been scooped up and how many superfund sites they have left in their wake for working class taxpayers to clean up. Read ‘Silent Theft: The Private Plunder of our Common Wealth’ by David Bollier, who calls the Mining Act of 1872 the ‘granddaddy of all corporate giveaways’ and notes mining companies extract $2B to $3B each year from federal lands without paying a cent to the federal government.
The Dan Smith’s and their ‘woe is me’ act as exhibited at the SCDC meeting isn’t only unmanly it is downright pathetic and while they aren’t partaking of the federal act on state and county lands they arise from that 140 year old tradition of privileged plunder and think nothing of offering only a handful of jobs and few shekels to a county barely able to keep its schools open or provide adequate public safety.
Bob Main is right, there is no net increase in jobs trading logging for mining, certainly not enough to justify the risks and the potential damage to the fishing industry and waterways is irreparable as studies have shown and I have linked to here
We have roughly 30 days to get public comments in on the 1200-A storm water permit. The failure of just one permit could save the public from this plunder…
More info coming soon
ORC and the County">Coastal Zone Management Act and what it means to ORC and the County
The National Oceanic and Atmospheric Administration (NOAA) through its Office of Ocean and Coastal Resource Management (OCRM) funding supports ocean and coastal management for 34 state and territory state coastal zones through several programs, including
…zero match Coastal Zone Enhancement Program funds to state coastal zone management programs to enhance their programs in one or more areas of national significance.
There are compliance restrictions to maintaining coastal zone status and funding agencies overseeing the coasts and estuaries are monitored.
The Office of Ocean and Coastal Resource Management (OCRM) performs regular evaluations of state Coastal Zone Management Programs and National Estuarine Research Reserves, as required by the Coastal Zone Management Act of 1972. The public is encouraged to participate and provide comments. The evaluations ensure that states are effectively implementing their programs.
OCRM has further developed a number of Performance Measures and Contextual Indicators, to determine the overall success of the Coastal Zone Management Act. By partnering with the coastal management programs and reserves, OCRM has outlined a Coastal Zone Management Act Performance Measurement System that allows for flexibility in accommodating different management structures and coastal priorities nationwide.
When a big industry looks to locate within a coastal zone, like The Mill Casino for example or Oregon Resources, a heavy permitting process is required and must meet federal consistency. To assist in maintaining federal consistency (and therefore federal funding) the Oregon Department of Land Conservation and Development has produced a list of goals Goal 1 is ‘Citizen Involvement’. Evidently, DOGAMI or DEQ or ODLC or some combination failed to properly notify concerned parties about the storm water permit comment period and possibly others thereby failing Goal 1.
There may be some other conditions during the multi-agency permitting period that have not been applied here. For example, there should be a traffic impact statement, (particularly near Bunker Hill School), a fiscal impact statement and a needs assessment. There should also be a greenhouse gas emissions report done as a consequence of all the truck hauling. Public comment periods should accompany every statement.
Somewhere, someone along the line has failed to demand some or all of these requirements and if some of what I have read regarding 16 U.S.C. § 1452. Congressional declaration of policy (Section 303) is not adhered to we could jeopardize our coastal zone status because the permitting agencies have failed enforce the applicant’s requirements. Here are a few
The Congress finds and declares that it is the national policy–
(1) to preserve, protect, develop, and where possible, to restore or enhance, the resources of the Nation’s coastal zone for this and succeeding generations;
(2) to encourage and assist the states to exercise effectively their responsibilities in the coastal zone through the development and implementation of management programs to achieve wise use of the land and water resources of the coastal zone, giving full consideration to ecological, cultural, historic, and esthetic values as well as the needs for compatible economic development, which programs should at least provide for–(A) the protection of natural resources, including wetlands, floodplains, estuaries, beaches, dunes, barrier islands, coral reefs, and fish and wildlife and their habitat, within the coastal zone,
(B) the management of coastal development to minimize the loss of life and property caused by improper development in flood-prone, storm surge, geological hazard, and erosion-prone areas and in areas likely to be affected by or vulnerable to sea level rise, land subsidence, and saltwater intrusion, and by the destruction of natural protective features such as beaches, dunes, wetlands, and barrier islands,
© the management of coastal development to improve, safeguard, and restore the quality of coastal waters, and to protect natural resources and existing uses of those waters,
(D) priority consideration being given to coastal-dependent uses and orderly processes for siting major facilities related to national defense, energy, fisheries development, recreation, ports and transportation, and the location, to the maximum extent practicable, of new commercial and industrial developments in or adjacent to areas where such development already exists,
(E) public access to the coasts for recreation purposes,
(F) assistance in the redevelopment of deteriorating urban waterfronts and ports, and sensitive preservation and restoration of historic, cultural, and esthetic coastal features,
(G) the coördination and simplification of procedures in order to ensure expedited governmental decisionmaking for the management of coastal resources,
(H) continued consultation and coördination with, and the giving of adequate consideration to the views of, affected Federal agencies,
(I) the giving of timely and effective notification of, and opportunities for public and local government participation in, coastal management decision making,
It was a failure to notify the public about the storm water permit that has Vaughn Balzer, Stormwater/Reclamation Specialist DOGAMI-MLRR and Bill Mason, Oregon DEQ Project Manager/Senior Groundwater Hydrologist working to correct this matter.
ORC must show that it can meet these and other requirements and the people may have to demand the permitting agencies do their job correctly. There is a bigger story here and it will be interesting to trace back and find out how and why the ball has been dropped and who is responsible. Obviously, more to come over the next few days on this topic.
Coastal zone boundaries are listed here and Oregon is as follows
Oregon’s coastal zone extends inland to the crest of the coastal range, except for the following: along the Umpqua River, where it extends upstream to Scottsburg;
along the Rogue River, where it extends upstream to Agness; and except in the Columbia River Basin, where it extends upstream to the downstream end of Puget Island.
DOGAMI withholds ORC 1200A Permit from ORC pending public comment UPDATED">DOGAMI withholds ORC 1200A Permit from ORC pending public comment UPDATED
Thanks to the dutiful efforts of several citizens concerned that no public comment period had been offered in advance of granting a storm water permit to ORC for mining operations any permit will be withheld. Spoke with Vaughn Balzer at DOGAMI who confirmed the public would be properly notified, given time to review materials and then comment before a storm water permit is granted to ORC along the haul roads of their proposed mining operations.
Balzer has indicated he will make materials available at the local DEQ office in Coos County. Comment period is not open ended, obviously but this is a great opportunity to put some brakes on what appears to be a runaway train.
Julie Jones a member of Bandon Woodlands Community Association a group dedicated to maintaining the quality of life in the woodland environment now being threatened by proposed chromite strip mining was instrumental in this action. Jones and BWCA have been tracking the ORC permitting process from the beginning and knew they should have been notified of a public comment period for the storm water permits but were not. Jones persisted and DOGAMI will now establish a public comment period before any permit is granted.
DOGAMI works under a Memorandum of Agreement with the Oregon Department of Environmental Quality and will be monitoring the treatment of water runoffs in the mining process that have the potential to damage fragile wetlands and woodland streams. Thanks to Julie Jones for her persistence
Coos County historically sells public resources on the cheap and is famous to boot
The recent submission to the AIA Sustainable Design Assessment Team (SDAT) spearheaded by South Coast Development Council (SCDC) rightly list the many features of the Coos Bay Area that set it apart from other coastal Oregon cities. The Int’l Port of Coos Bay is the closest deep water port to Asia and the only deep water port between Seattle and San Francisco. The Southwest Oregon Regional Airport is the only commercial airport on the Oregon Coast.
The Bay Area Hospital is a major medical facility and serves much of the coast. The award winning Bandon Dunes Golf Courses draw people into the area increasing the number of executive jet flights from 2 to over 5000 per year (I threw that last part in). Both employ hundreds of people.
The strategic benefits and the natural beauty and world famous golf course and the hunting and fishing and the farms and ranches are not what makes Coos County and the Coos Bay Area famous, unfortunately. Coos County is famous for being a plunderers playground and a text book example of what can go wrong when short term gains as promoted by groups like SCDC overshadow long term benefits. Al Sandine, in his book ‘Plundertown USA: Coos Bay Enters the Global Economy’ likens SCDC to the mill owners and job bosses holding sway over the dependent work force of the early 1900s. Sandine points out that to be a voting member of SCDC costs $10,000 eliminating the common worker as a participant in local development schemes.
David Cay Johnston devotes two full chapters to Coos County in his book ‘Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You With the Bill)’. SCDC receives taxpayer money from the local municipalities and the County but maintains a quasi-governmental/private status apparently enabling it to conduct closed meetings, if it wants to, further excluding the commoners from being ‘in the know’. SCDC, Friends of New and Sustainable Industry (FONSI) and most of the elected leaders in Coos County have presided over and continue to support the plunder of pubic resources and there is probably no more glaring present example than the $30M+ airport and as Johnston notes, a federal subsidy for corporate jet use…
Keiser (owner of Bandon Dunes) is not unique in benefiting from this subsidy…What makes Bandon Dunes distinctive is there is no other beneficiary for the use of the airport at Coos Bay. Commercial passenger traffic has been steady for years at about 100 passengers a day. And those corporate jets, except for maybe three per year, are drawn by the golf links Keiser owns…
Each time an executive takes the company jet to play at Bandon Dunes you pay part of the cost. And the airport improvements, done solely to benefit Bandon Dunes, are also paid for when you buy a commercial airplane ticket or an Oregon lottery ticket.
The total subsidies received just by Bandon Dunes exceed the value of the jobs produced. Given the tens of millions of dollars that have flowed in and through Coos County since I moved here in 2003, why is there nothing to show for it? Why are we hovering at 15% unemployment?
The SDAT intends to send
…multidisciplinary teams of professionals from across the country to provide a road map for communities seeking to improve their sustainability—as defined by a community’s ability to meet the needs of today without reducing the ability of future generations to meet their needs.[emphasis mine]
Coos County has a long and dirty history of enriching the few at the expense of future generations. The old growth timber was cut at rate greater than it could recover from leaving future generations no jobs and little to look forward to beyond pulp mills.
The same mindset that allowed Coos Bay to become dependent on one or two big corporate players for a resource extraction economy is still at work today. SCDC, FONSI, at least two of the three county commissioners and probably most of the professional board members at the local chambers of commerce, urban renewal groups and the Rotary clubs, etc… are maneuvering and lobbying to sell the farm, or in the case of ORC, mineral rights, and sell it on the cheap and the electorate have no one to blame but themselves. These same people presided over the gas pipeline fiasco and the late Ron Opitz, former director of SCDC came from NW Natural, now leasing the pipeline.
So why, with a thirty year record of dismal economic indicators and a 15% unemployment rate, do local leaders continue to make the same decisions? Why do they try and repeat the same failed business model, over and over again? Why do our local leaders allow Coos County to act as a funnel threw which taxpayer money flows straight into foreign corporate bank accounts?
If you read the leaked RNC power point mocking their own donors, prestige, power and fear are primary motivators for donating to the GOP (not that all members of the groups above are Republican). Maybe shucking and jiving with ORC and Jordan Cove and hobnobbing with Bandon Dunes offer some perceived prestige and power in the minds of these people. Enough they would throw caution to the wind and sacrifice the public trust?
Perhaps as Joe Bageant points out in his amazing book ‘Deer Hunting With Jesus’ we have elected people that are little more than functional illiterates and are just plain incapable of the type of critical thinking necessary to be wise stewards of public assets. The SDAT application clearly wasn’t written by a wide swath of the citizenry and reflects a very worm’s eye view of the reasons for Coos County’s ills.
Whatever the reason, Coos County has some elections coming up and needs to make some hard decisions or the continued depression of these last 30 years will likely only get worse.
UPDATED">Strip mining coming to Coos County? UPDATED
The gang at SCDC (South Coast Development Council) are hot to aid and abet Oregon Resources Corp to begin strip mining for chromite and other minerals (supposedly no gold or platinum, they will put that back???).
The U.S. Army Corps of Engineers has issued the definitive operating permit, giving the Portland-based firm approval to mine chromite, zircon, high-iron and garnet off Seven Devils Road between Charleston and Bandon.
‘Everything fell into place,” said Dan Smith, Oregon Resources’ chief operating officer.
Watching the video of a January 28, 2010 SCDC meeting shows Sandy Messerle (I think) absolutely gushing about 70 new jobs in the county as Smith downplays the potential environmental issues, explains how badly they have been treated by the various permitting agencies and mocks Oregon for having an international reputation for being tough to strip mine in. He also emphasized that funding for ORC was being held up pending permits and the future of the foreign owned corporation was in dependent upon expediting the go ahead. One thing is certain, not a single person present at the meeting even questions the possible long term effects if even the slightest thing goes wrong with ORC’s operation.
Remember the 12″ gas pipeline and that débâcle. The same movers and shakers presiding over that mess are supporting this venture despite a large local fishing community and the potential to damage already diminished salmon runs and wetlands. [Photo courtesy of Larry Van Elsberg]
Jobs are critical but of the 70+ positions how many will be filled with local workers, how many are really family wage and what happens in 18 years when ORC is done pulling public resources out of the ground? No one at the meeting considered the 22 road workers laid off to afford the $450K cost of upgrading a perfectly serviceable county road to ‘industrial grade’.
Also, during the January 28 SCDC meeting, Port Director, Jeffrey Bishop discusses the odd land lease arrangement with Weyerhauser. Did I hear right? Was the lease arrangement based on a future property value IF the LNG terminal was built? If someone has time to watch, please let me know what that is about.
**Received a note from a reader that correctly noted the Port had a purchase agreement (actually paid $25M?) and now they are in a pure option agreement (Weyerhauser gave back the money.. with interest???) So, did the port make a purchase of land based upon an appraised future value? Would a legitimate appraiser do such a thing and would it be legal for the port to make such an arrangement without an appraisal? **
The funny thing about SCDC is I am sure if they believed there was a billion barrels of oil under the ground they would fall all over themselves trying to drill for it. There is the equivalent of a billion barrels of oil under the ground in wind resource in this county and money to be made and saved in renewable energy but these guys only want to entertain another Weyerhauser business model. They want to be dependent on some outside plunderer who will take the public resources and then pack up and leave taking their jobs with them. It is not like it hasn’t happened here before.
US mining firm for failing to meet environmental clean up requirements">Peru ousts US mining firm for failing to meet environmental clean up requirements
Doe Run was evicted from Peru
Peru’s mining, oil and energy association (SNMPE) said Saturday it has expelled US mining company Doe Run from its roster for not cleaning up its pollution problems, which environmentalists say are among the worst in the world.
“It has not shown… any willingness to comply with its environmental commitments and its obligations to the country, its workers, the La Oroya population and its creditors,” SNMPE said in a statement.
So we have high hopes that ORC will not behave like Doe Run? Are both companies possibly tied through the myriad offshore corporations controlling the purse strings of both companies? Would be interesting to find out.
Citizens call out Coos County Commissioners on chromite mining
Fairview residents, Ronne Hearn and Jaye Bell have been dogging the commissioners on the ORC mining venture and wrote this well crafted and thoughtful letter.
Dear Commissioners,
We all out here seem to be lacking that magic one page sheet (written after the fact) that says that Nollan and Dolan have any thing whatsoever to do with road proportionality, let alone when we, the county, currently have no stake in the deal and thereby, presumably, are not the ones destroying the road. Counsel may be busy but she’s the one who brought up this “one page” piece of elusive information. She works for you. Ask for it. You work for us. We want the page.
The DVD. Copying DVDs is generally not difficult, particularly in light of a $340,000 computer upgrade which might include the ability to copy DVDs. That meeting was the 1st of May. We are now celebrating Memorial Day weekend. If the county can’t do it, give it to Bob Arnold along with a few bucks for his effort and some blank DVDs and he’ll take care of it. If, as was suggested, the DVD is flawed, then contact Mr Ralls and suggest a new copy. I’m sure he’d be on it in a heart beat.
As to the ORC Letter to the Editor in Saturday’s World: It sounded so much like Mr PubEd that we looked up the guy in the phone book to see if he was for real.
Did you notice any of the flaws in the rationale in that letter? Russell Ralls, not ORC, did say there was gold and platinum in the sands and that because their specific gravities were substantially heavier than the other minerals, they would spin off first. Perhaps it is a thought that the county, rather than ORC, determine for the sake of the county whether the gold and platinum are “worth” saving. I’m sure you’d be a lot more solicitous of your gold and platinum than would be ORC.
1.5 million dollars. Based on what? All the commodities — except for gold and platinum.… — are way down. Just get in there and sign some stupid deal or the voters will get you in 2010. Hello.….. We ARE the voters. You work for us. We don’t want you going off on some NWN/Methane type of deal. Neither has served the county well as all of you may have noticed. You were told in advance that these were boondoggles. You didn’t listen
And we’re telling you now: Go Slow. Hire your own expert attorney, Drag your feet all you want. Unless there’s something going on under the table, you have no obligation to ORC. And the mineral sands are yours, which is to say the mineral sands are ours. We want them taken care of for the valuable commodities that they are. They are precious. Treat them that way.
Also, we need to determine what our timber losses and related timber job losses are going to be if we destroy our younger stands. County says an acre of saleable timber produces from $16,000 to $33,000, while ORC says that a mined acre will likely yield $32,000. Based on what? What weight? What sales price? What royalty? Over what time?
Which brings us to the cost of road repairs. The URS Pavement Analysis Report from June 3rd, 2008 suggests all sorts of ways we can spend county money to benefit ORC, one of which was an outlay of some 1.2 million dollars to upgrade the road to industrial grade to accomodate the huge and weighty mining trucks. An outlay of up to one million dollars in the face of a potential income of 1 to 1.5 million dollars doesn’t make any economic sense, especially when the 1 to 1.5 million dollar income figures are drawn from thin air.
Do some of your own drilling and assaying. Know what you have from someone independent. Might not be a bad idea to have more than one assay done of the same core drills. Could be very enlightening.
There is no rush. If ORC won’t mine without the county’s 6,000 acres, so be it. If they have enough to mine the private lands, so be it. ORC is not your concern. We are your concern. Our land and its wealth are your concerns. We want all of this open, above board, and as transparent as a framed space with no glass, no glass to reflect or refract the images seen through the opening.
Ronnie and Jaye
Especially appreciate the reference to counsel and the constant claims of attorney client privilege. Surely privilege cannot be applied when rationalizing a decision to commit public funds to something like road improvements.


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