Frequently Asked Questions

The mission of this web site is to provide a forum for information, proposals, and ideas on the use and development of a mineral mine in Lake Township of Menominee County Michigan so you can make more informed decisions about a course of action. The motivation for it came out of the confusion and discord caused by lack of understanding and potential misuse of our valuable natural resources.

"Give me 10 average men who can work together and we will accomplish more than 50 extraordinary men who cannot agree"

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Questions and Answers

Menominee County Mineral Exploration

Department of Environmental Quality and
Department of Natural Resources

The Questions

         Question:Who can I contact if I have questions or need additional information? *

Question:What type of drilling and mining operations are occurring in Lake Township of Menominee County or surrounding areas? *

Question:What state agency manages mineral development on state land? *

Question:What agency controls erosion, pollution, and land reclamation associated with test well drilling and mining? *

Question:How does the state regulate test wells drilled to explore for minerals? *

Question:What safeguards do the regulations require to prevent damage to the environment from drilling of test wells? *

Question:How close can a test well be located to a river or lake? *

Question:What are the state requirements for capping or plugging of test wells? *

Question:How many metallic mineral mines are there in Michigan? Are there any that tap deposits similar to the one identified in Menominee County? *

Question:What are the state requirements for mine reclamation? *

Question:How does the state protect the air, water, soil, and adjacent property from damage or contamination by mining operations, particularly from acid mine drainage or the use of cyanide or other hazardous chemicals? *

Question:Does the state require a mine operator to report spills or releases of potential contaminants? *

Question:Are bonds required for test wells or mining operations? *

Question:What staff does the DEQ have to carry out permitting, inspection, and enforcement activities for mining operations? Do they have experience and expertise in mining, particularly with sulfide mines? *

Question:How much state land is leased or permitted for mineral exploration and production in Menominee County? To whom is the land leased? *

Question:What does the state receive for leasing mineral rights of state-owned land to private companies? What royalties would the state receive from metallic mineral mines? *

Question:What are the public noticing requirements for leasing of state land for mineral exploration? *

Question:Who oversees drilling or mining operations to assess damage to trees and other surface values on state land, and how is the state compensated? *

Question:Who is responsible for preventing and repairing damage to county roads from mineral exploration operations? *

Question:Does the state oversee mineral ownership claims where the mineral rights are privately owned? Why weren’t surface owners notified when the Notice of Interest is filed? *

Question:What is the status of the Crandon Mine in Wisconsin? *

Question:Is the Department of Environmental Quality and our state laws prepared to accurately protect our natural resources; water, land, air, and endangered species today and for all future generations to follow? *

Question:Will there be an Environmental Impact Statement issued before permitting? *

Question:Will the citizens of this county have an opportunity to be heard and will the agency listen to the citizen's comments before permitting? *

Question:Does the mining company have to disclose every mineral they will mine during permitting and the beneficiation processes to be used, or do they just have to disclose the major mineral being mined? *

Question:If gold is mined will a full disclosure of processing (cyanide leaching) have to be disclosed before permitting? Do our state laws allow the DEQ to require disclosure of mining processing? *

Question:Will the possibility of weather extremes in Upper Ml be used as a factor of permit location of a mine or are these risks, of known flooding, not considered? *

Question:What bonding requirements are in place in the state of Michigan for metallic mineral mines? *

Question:Is the infrastructure of the county, where the mine will be located, taken into consideration for permitting of a metallic mineral mine? *

Question:What 'back-up’ plan would the DEQ require from the mining company if some unforeseen pollution were to happen to our water or damages to real estate values? Will home owners be compensated? What would the compensation be? Who pays this compensation; the state or the mining company? *

Question:Once a company is permitted for metallic mineral mining, can they 'sell, lease or turnover' the permit to another mining company without additional review by the state DEQ? *

Question:What environmental 'track record’ requirements does the DEQ have for a metallic mineral mining company to receive a permit? Does this 'track record' include reclamation history? *

Question:If Menominee and Marquette (Kennecott mining) counties are both permitted by the DEQ for metallic mineral mines, will the state DEQ be staffed to follow both permits to assure there are no environmental catastrophes or long term pollution? *

Question:Is the state of Michigan's environmental agencies prepared to put at risk polluting the Great Lakes; 20 percent of the World's fresh water and the source of drinking water for 28,000,000 people, by permitting metallic mineral mines? *

Question:What royalties will the state receive from a metallic mineral mine in the state of Michigan? Which 'fund’ receives the royalties or do they go into the state's fund? *
 
 

The Questions with Answers

Question: Who can I contact if I have questions or need additional information?

Answer:
For general information, current status, and inspections of drilling activity: Mr. Joseph Maki, Geologist
Department of Environmental Quality
Geological and Land Management Division
Upper Peninsula District Office
420 5th St.
Gwinn, Ml 48941-3004
906-346-8563 / makijr@michigan.gov
For general information about mining permit issues: Mr. Steven E. Wilson, Supervisor
Minerals and Mapping Unit
Department of Environmental Quality
Geological and Land Management Division
P.O. Box 30256, 525 W. Allegan Street
Lansing, MI 48909-7756
517-241-1542 / wilsonse@michigan.gov
For information about test well drilling issues: Mr. Raymond Vugrinovich, Geologist
Mineral Wells Program
Department of Environmental Quality
Geological and Land Management Division
P.O. Box 30256, 525 W. Allegan Street
Lansing, MI 48909-7756
517-241-1532 / vugrinov@michigan.gov
For information about state-owned mineral rights and leasing: Ms. Lynne M. Boyd, Manager
Minerals Lease Management Section
Michigan Department of Natural Resources
Forest, Mineral, and Fire Management Division
P.O. Box 30452
Lansing MI 48909-7952
boydlm@michigan.gov
 
Question: What type of drilling and mining operations are occurring in Lake Township of Menominee County or surrounding areas? Answer: A metallic sulfide mineral deposit was discovered in Lake Township in 1999. Drilling of test wells began in early 2002. The purpose of the test wells is to extract samples of rock, which are analyzed to determine if the deposit is of a sufficient size and quality to be profitably mined.

Mining is not presently occurring in the area.

Question: What state agency manages mineral development on state land? Answer: The Department of Natural Resources (DNR) manages the leasing of state lands for mineral exploration and extraction, and assures the property interests of the state are protected if test well drilling and mining operations occur on state land. Regulatory requirements are handled by the Department of Environmental Quality (DEQ). Question: What agency controls erosion, pollution, and land reclamation associated with test well drilling and mining? Answer: The DEQ regulates mineral test wells and mining operations on all lands (public and private) to protect the air, water, and land resources. Question: How does the state regulate test wells drilled to explore for minerals? Answer: The drilling, operating, plugging, and site restoration of test wells are regulated under Part 625, Mineral Wells, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA). In addition, test wells must meet the requirements of other Parts of the NREPA to prevent damage to water, air, soil, wetlands, and other environmental values.

In most of the state, Part 625 requires a permit for a test well that penetrates 50 feet or more into bedrock or below the deepest fresh water aquifer. However, a permit is not required for test wells where the bedrock is Precambrian in age, although these wells must meet all other requirements of Part 625. The Precambrian bedrock area covers roughly the west half of the Upper Peninsula, and includes the western edge of Menominee County where the current test well drilling is occurring. Drilling records of test wells must be submitted to the DEQ, but they are held confidential until the company releases them.

All test wells on state land require a Use Permit from the DNR.

Question: What safeguards do the regulations require to prevent damage to the environment from drilling of test wells? Answer: Test wells, whether they require a permit or not, must be drilled, utilized, and plugged in a manner that does not damage surface water, groundwater, soils, life, or property. Steel pipe, or casing, must be run in the well through the glacial deposits (sand, gravel, and clay overlying the bedrock) and cemented in place, to prevent collapse of the hole and protect against contamination of water sources. Drilling fluid-water, sometimes with clay additives, that is used to carry drill cuttings back to the surface and to lubricate the drill bit-must not cause contamination of groundwater. Surface water, such as Menominee River water, is allowed as drilling fluid provided there is adequate protection for aquifers. The water is chlorinated to kill any microorganisms. Question: How close can a test well be located to a river or lake? Answer: Part 625 does not specify any set-back distance from surface water bodies. However, Part 625 requires that a test well must not damage surface water or aquatic life.

Leases issued by the DNR may include set-back distances from water bodies that range from 300 to 1,320 feet. These set backs are only applicable to state-owned lands covered by the lease contract. The DNR may grant site-specific exceptions to the lease set backs on state-owned lands.

Question: What are the state requirements for capping or plugging of test wells? Answer: A test well must be plugged promptly after abandonment, following procedures specified by the DEQ. A well is considered abandoned if it is inactive for one year, unless an extension is granted by the DEQ based on showing a good reason to keep the well open. Wells must be plugged in a manner that seals off and confines any fluids in the formations penetrated by the well, and prevents any surface water or other materials from entering the well. Unplugged wells have locking caps installed. Question: How many metallic mineral mines are there in Michigan? Are there any that tap deposits similar to the one identified in Menominee County? Answer: Approximately 800 metallic mines have been located in the western Upper Peninsula. Most of these are iron or copper mines. The iron mines produced mainly iron oxides (hematite and magnetite), and two of these mines are currently operating-the Empire and Tilden iron mines operated by Cleveland-Cliffs, Inc. The copper mines produced mainly native copper. However, the White Pine mine in Ontonagon County produced predominantly copper sulfide-a mineral of the same classification as the deposit in Menominee County. Large-scale underground mining operations began at the White Pine Mine in 1953 and ended in 1999. Question: What are the state requirements for mine reclamation? Answer: Part 631, Reclamation of Mining Lands, of the NREPA sets requirements for reclamation of surface or open-pit metallic mines, although several other provisions of the NREPA also regulate specific aspects of mining operations (see answer to Question No. 10). Part 631 requires a permit for new mining operations, and sets requirements for sloping, terracing, revegetation, and stabilization of surface mines, stockpiles, tailings basins, and waste rock piles; safety of any water bodies left after mining; groundwater assessments; grading and stabilization of abandoned roads; fencing; ore processing methods; and cleanup of the site upon closure. Part 631 allows the DEQ to immediately suspend any or all activities at a metallic mineral mining operation if the DEQ finds there exists an emergency endangering the public health and safety or an imminent threat to the natural resources of the state.

For mining operations on state land, the DNR establishes site-specific reclamation requirements in the leases.

Question: How does the state protect the air, water, soil, and adjacent property from damage or contamination by mining operations, particularly from acid mine drainage or the use of cyanide or other hazardous chemicals? Answer: The Part 631 regulations require that all acid-forming or toxic material must be treated, contained, or covered to prevent pollution of the air, surface water, and groundwater. A mine operator must provide information on all chemicals and treatment methods, including any cyanide process that are utilized in the processing of ore.

A number of other provisions of the NREPA also apply to mines and associated mineral processing facilities. Air emissions are subject to a permit and regulation under Part 55, Air Pollution Control. Part 31, Water Resources Protection, requires a permit and sets strict standards for any discharge to surface water or groundwater. Waste rock stockpiles and tailings basins are subject to permitting and regulation under Part 115, Solid Waste Management, unless they are tested and certified to be inert. If a mining operation involves dredging or depositing fill in a lake or stream, a permit is required under Part 301, Inland Lakes and Streams. A permit is required under Part 303, Wetlands Protection, for any disturbance of a wetland. Any significant earth-moving activity is subject to regulation under Part 91, Soil Erosion and Sedimentation Control. Part 201, Environmental Remediation, requires a responsible party to cleanup any contamination and prevent it from worsening or migrating to adjacent properties. A number of other regulatory requirements may apply to mining operations, depending on the exact nature of the operation.

Michigan’s regulatory requirements under these statutory provisions are similar to those of other states. Michigan administers many of the above regulatory programs under delegation from the U.S. Environmental Protection Agency, and our programs must meet strict federal criteria.

Question: Does the state require a mine operator to report spills or releases of potential contaminants? Answer: The NREPA requires a mine operator to report all significant spills or losses of materials that may cause pollution. Question: Are bonds required for test wells or mining operations? Answer: Test wells that require a permit from the DEQ also require a bond to ensure conformance with drilling, operating, and plugging regulations. The amount of the bond is based on the predicted cost of plugging the well in the event the state must do the plugging. No bond is required for a well that does not require a permit.

Mining operations may be required by the DEQ to be covered by a bond if it appears the operator does not have the financial ability to comply with the rules under Part 631.

The DNR requires lease performance bonds for state of Michigan leases, which can be used for such things as site restoration, well plugging, and royalty payments. The bonding amount is based on the total number of acres and ranges from $10,000 to $50,000.

Question: What staff does the DEQ have to carry out permitting, inspection, and enforcement activities for mining operations? Do they have experience and expertise in mining, particularly with sulfide mines? Answer: The DEQ regulatory programs are staffed by employees with extensive knowledge and experience. Staff areas of expertise include geology, mining, land reclamation, environmental cleanups, toxicology, water quality, air quality, enforcement, and other environmental specialties.

In the mine reclamation program (Part 631), the DEQ has a staff geologist stationed at the Gwinn Office who has over ten years of experience in regulation of mining for the state of Minnesota, including experience with environmental assessments and acid mine drainage issues. In addition, DEQ managers in the Lansing Office have many years of experience in the mine reclamation program. DEQ staff in the air, water, waste management, remediation, and associated environmental programs has extensive experience in their respective program areas. While most of that experience relates to operations other than mining, the same fundamental principles apply.

DEQ staff has prior experience with the White Pine Mine, the only major sulfide mine in Michigan. In addition, staff is currently reviewing and evaluating the requirements and experiences of other states, including Wisconsin and Minnesota, in regulating sulfide mines. If a mining company decides to develop a mine in Menominee County, DEQ staff will conduct a more intensive review based on the specific facts of the proposed operation.

Question: How much state land is leased or permitted for mineral exploration and production in Menominee County? To whom is the land leased? Answer: The DNR has leased approximately 2,073 acres to Mineral Processing Corporation in Menominee County. The lease numbers are M-00770 through M-00777. Use Permit 503-02, to allow for test well drilling, was issued in September 2002, and expired on December 31, 2002. A new Use Permit, 503-03, was issued in January 2003. Question: What does the state receive for leasing mineral rights of state-owned land to private companies? What royalties would the state receive from metallic mineral mines? Answer: Terms of the existing Metallic Minerals Leases for the area of interest in Menominee County include a 10-year lease term, with options for extensions or continuation with production. Rental rates commence at $3.00 per acre per year for the first five years, and $6.00 per acre per year for years six through ten. In the absence of mining operations, a minimum royalty is due for years 11 through 20. The rate begins at $10.00 per acre in the 11th year and escalates $5.00 per acre per year until the 20th year when the rate is $55.00 per acre. If production occurs, a production royalty shall be not less than two percent and not more than seven percent and shall vary with the adjusted sales value per ton. The maximum acres per lease is 640 acres. Question: What are the public noticing requirements for leasing of state land for mineral exploration? Answer: The Administrative Rules require the DNR to publish a notice describing the general location of the lands recommended for leasing and the recommended classification in a newspaper available in the county where the lands are situated. The notice must be placed at least 30 days before the Director makes the final decision on the classification and authorizes the DNR to lease properties.

In addition to the legal requirements, the DNR also sends a notice directly to all surface owners who have state-owned minerals underlying their surface. The notice provides general information on the leasing process and a contact for receiving property-specific information. A notice is also published in the DNR’s monthly calendar of events, which is available on our web site.

Question: Who oversees drilling or mining operations to assess damage to trees and other surface values on state land, and how is the state compensated? Answer: In accordance with the terms of the Use Permit(s) issued for test well drilling, the company must "follow existing openings with minimal removal of trees." The access roads are limited to a maximum of ten feet in width. The DNR has been compensated for removal of vegetation for access roads and drill sites, including any trees, under the permit. No Use Permit has been issued for mining operations on state land. Question: Who is responsible for preventing and repairing damage to county roads from mineral exploration operations? Answer: The County Road Commission or other public road agencies are responsible for addressing damage to county roads. Question: Does the state oversee mineral ownership claims where the mineral rights are privately owned? Why weren’t surface owners notified when the Notice of Interest is filed? Answer: There has apparently been some misunderstanding regarding this issue. The status and leasing of private mineral rights are matters that must be resolved between the private parties-the land owners and the lessee or potential mineral developer. The state of Michigan has no role in this process and no knowledge when a Notice of Interest is filed. The Statute that addresses these notices, Act 154, Public Acts of 1997, does not require any notification of such filing. Question: What is the status of the Crandon Mine in Wisconsin? Answer: The discovery of a zinc-copper ore body near Crandon in northeastern Wisconsin was announced in 1976. The Wisconsin DNR is currently reviewing and verifying permit applications and environmental studies submitted by Nicolet Minerals Company. No permit has been issued and no mining has taken place at the Crandon location. DEQ staff will continue to work with the Wisconsin DNR to evaluate any new information or technologies that might be applicable in Michigan. Question: Is the Department of Environmental Quality and our state laws prepared to accurately protect our natural resources; water, land, air, and endangered species today and for all future generations to follow? Answer: The Department of Environmental Quality (DEQ) is responsible for enforcing state laws promulgated with the intent of protecting natural resources of the state. Many activities involved in opening and operating of a mine require permits from the DEQ. In addition, many of the permits are subject to public notice and public hearing requirements: The following permit requirements are applicable to mining operations:

The DEQ's regulatory foundation is found in numerous statutes. You can find these statutes and and the corresponding rules at www.michiganlegislature.org.  Michigan’s environmental regulations are complied under ACT 451 of the Public Acts 1994.  You can search for this Act and any of the separate "PARTS" (individual statutes). A list of statutes (parts of Act 451) that might apply in any given mineral development venture includes:

Part 31 - Water Resources Protection Act

Part 55 - Air Pollution Control Act

Permit to Install, issued by Air Quality Division, is required for installation of a facility which will result in air emissions. This permit is subject to a 30-day public notice period and public hearing.

Renewable Operating Permit (ROP), issued by Air Quality Division is required to operate a facility constructed under a Permit to Install. This permit is subject to a 30-day public comment period. The department may hold a public hearing on a ROP. The permit application is also subject to a 45 day USEPA review. ROP’s must be renewed on a five-year schedule, with renewals subject to public notice requirements.

Part 301 - Inland Lakes & Streams Act

Part 303 - Wetlands Act

Wetland Permit, issued by Geological and Land Management Division. Required if any construction, operation or maintenance of any development in a wetland is contemplated. Not subject to public notice, but may be subject to administrative hearing after issuance if an appeal is filed. Part 323 - Shorelands Protection and Management Act

Part 353 - Sand Dune Protection and Management Act

Part 363 - Endangered Species Act

Part 625 - Mineral Wells Act

A permit for exploration by drilling mineral wells is not required. Information from drill is required to be filed with the Geological and Land Management Division. This information is considered confidential until it is released by the operator. Part 631 - Reclamation of Mining Lands Act Metallic Mineral Mining Permit, issued by Geological and Land Management Division. Required prior to construction and operation of an open pit metallic mine. The DEQ has proposed legislative changes that would apply the requirements of a Metallic Mineral Mining Permit to underground mining operations as well. The permit addresses hydrogeological survey of the surrounding area, mitigation measures for endangered or threatened species, and beneficiation or treatment methods or techniques, and performance bonding. Although a public hearing is not required by Rule, the GLMD has stated previously that the public would be involved in the event the company applied for a metallic mining permit. Part 633 - Mineral Mining Act

Part 635 - Surface & Underground Coal Mine Reclamation Act

Part 637 - Sand Dune Mining Act

Additional DEQ PERMITS may be needed for the following:

Solid Waste Disposal Facility Construction permit, issued by Waste and Hazardous Materials Division. An application is subject to public notice requirements. A hearing may be held upon request of the applicant or the municipality in which the facility is to be located or after petition by 10% of registered voters in the municipality who voted in the last gubernatorial election. Expires 1 year after issuance unless development is initiated.

Solid Waste Facility Operating License, issued by Waste and Hazardous Materials Division. Not subject to public hearing; the clerk of the municipality is notified of the decision of DEQ to issue the license. The license expires in two years and is renewable upon payment of a renewal application fee.

National Pollutant Discharge Elimination System (NPDES) permit, issued by Water Division. Required if discharges of wastewater into navigable waters are anticipated. The permit is subject to a 30-day public notice; a hearing may be held.

In addition to the considerations listed above the operation has to exist within the framework defined by local statutes, regulations and ordnances.

PERMIT INFORMATION: The Department of Environmental Quality (DEQ) has prepared a list of key questions to help identify what departmental permits, licenses, or approvals of a permit-like nature may be need for a project. The checklist is available on line at the DEQ web site at http://www.deq.state.mi.us/documents/deq-ead-permits-eqp3580.pdf

Question: Will there be an Environmental Impact Statement issued before permitting? Answer: From Part 631:

Part 1. General Provisions

R 425.2 Definitions.

Rule 2. … (3) "Environment plan" means an operator's written proposal for reclamation of the mining area or portion thereof. …

R 425.8 Environment plan.

Rule 8. (1) Upon request of the supervisor, an operator shall submit his long-range environment plan for the mining area.

(2) An operator, on his own initiative, may submit an environment plan covering the mining area or any portion thereof to the supervisor at any time prior to abandonment.

(3) An environment plan shall include the following:

(a) A detailed description of the mining area.

(b) The reclamation problems involved.

(c) The operator's plan of action to prevent erosion and pollution, to attain revegetation, and to achieve the ultimate reclamation of the mining area in accordance with the purposes and requirements of the act and the rules adopted there under.

(d) An estimate time schedule for completion of the plan, and the proposed purpose for which the land is to be used upon completion.

(e) Estimated cost of reclamation.

(f) Other pertinent information that the supervisor may deem necessary.

(4) If circumstances warrant, or if development of an environment plan is dependent upon unknown factors which cannot or will not be determined except during the progress of the operation, a partial plan may be submitted and supplemented as new plans are developed.

(5) If the surface landowner and the operator are 2 separate persons, the surface landowner shall be given an opportunity to comment on the operator's environment plan before the operator submits the plan to the supervisor.

R 425.9 Evaluation of environment plan.

Rule 9. (1) Upon receipt of an environment plan, the supervisor shall evaluate it in terms of the reclamation required by the act. The supervisor may consult with and obtain assistance of other divisions of the department in the evaluation process. The supervisor may reject a plan or any part thereof, and shall give reasons in writing, together with recommendations for modification of a plan to meet his objections, if the reclamation specified by a plan does not conform to the requirements of the act and these rules, or if, in the opinion of the supervisor, it is not feasible or is otherwise undesirable because of the following:

(a) Erosion is likely to occur in the sloping, terracing, or other treatment of stockpiles and tailings basins, which may result in injury or damage to fish and wildlife or the pollution of public waters or which may cause injury to the property or person of others.

(b) Vegetation or other practical treatment of tailings basins and stockpiles, upon becoming permanently inactive, is not satisfactory.

(c) The surface overburden banks of open pits in rock, and the entire bank of open pits in unconsolidated materials, upon their abandonment will not be stabilized.

(d) The cleanup of plantsite and mining areas, and the removal of debris there from on termination of the mining operation, will not be satisfactory.

(2) If the supervisor rejects an environment plan, an operator may resubmit the plan as revised so as to meet the supervisor's objections.

(3) If an environment plan is satisfactory, the supervisor shall approve it and promptly notify the operator by written statement that compliance with the plan by the operator fulfills the requirements of the act with respect to the mining area or any portion thereof involved. The approval of an environment plan for a long-lived mining operation may be conditioned on periodic review in light of new research and changed reclamation technology. An approved environment plan shall be referred to as the reclamation plan.

(4) A reclamation plan may be modified at any time by mutual consent of the supervisor and operator to adjust to changed conditions or technology, or to correct an oversight.

(5) The supervisor may modify the reclamation plan when:

(a) Modification of the plan is necessary so that it will conform with existing laws.

(b) The supervisor determines that the previously approved plan is clearly impossible or clearly impractical to implement and maintain.

(c) The supervisor determines that the previously approved plan is obviously not accomplishing the intent of the act.

(6) When an operator disposes of his interest in a mining area prior to approval of reclamation by sale, lease, assignment, termination of lease, or otherwise, the supervisor may release the operator from the duties imposed upon him by the act and rules as to the operation, but only if the successor operator or owner assumes the obligations of the former operator with reference to the reclamation of the mining area.

Question: Will the citizens of this county have an opportunity to be heard and will the agency listen to the citizen's comments before permitting? Answer: As per to GLMD procedures for the Permitting process pursuant to Part 631

Permittee

1 Develops relevant materials to create or complete an Application packet.

2 Application is submitted in writing to GLMD Metallic Mine Mining Staff.

GLMD Metallic Mine Mining Staff 3 Reviews Application for completeness and accuracy.

a If the Application is missing information or the information is not acceptable Application is returned to Permittee for revision.

b If information is acceptable, GLMD Metallic Mine Mining Staff distributes Application for Agency Review

Various Divisions 4 Agency Review - Based on the unique character of each site and the information provided, additional expertise and review is needed. Various divisions are contacted in writing requesting a written review, evaluation and comment on the Application based on their relevant expertise and background. Written comments are forwarded to GLMD Metallic Mine Mining Staff. GLMD Metallic Mine Mining Staff 5 Reviews comments provided by Agency Review.

a If the Agency Review reveals substantive and/or procedural deficiencies, questions or concerns, the Application is returned to Permittee for revision.

b If Application is accepted by the DEQ, it is considered Administratively Complete and is designated a "Draft Metallic Mine Mining Proposal".

c If the proposed mining is not significant, a Public Informational Meeting is not needed nor scheduled.

d If the DEQ determines the proposed action is significant or controversial or within a barrier dune formation, a Public Informational Meeting is scheduled.

e If the DEQ receives a request for a meeting based on issues or allegations of outstanding or unanswered violations of a rule or rules which can be addressed by the statue, a Public Informational Meeting is scheduled.

6 Put on DEG Calendar advertised in appropriate local newspapers and local governmental agencies are contacted

7 Public Informational Meeting is held

8 GLMD Metallic Mine Mining Staff compiles a Summary of comment and issues raised at the Public Informational Meeting, solicited written comments, available file and reference materials.

9 GLMD Metallic Mine Mining Staff reviews initial recommendation of intent to issue permit in light of public comments and submits final recommendation to the GLMD Division Chief.

a If the information in the summary review indicates that the Draft Metallic Mine Mining Proposal be rejected the Permittee is notified (what happens then).

b If the information in the summary review indicates that the Draft Metallic Mine Mining Proposal should proceed the DEQ issues a public notice of the intent to issue the permit.

c If the DEQ receives a request for a hearing on a legitimate concern, then a public hearing is scheduled.

d If the DEO determines the proposed mining is significant or controversial, a public hearing is scheduled

e If the proposed mining is not significant and no request for a hearing is received, no public hearing is scheduled.

10 Put on DEQ calendar.

11 Public hearing is held.

a If hearing brings forth unresolved issues or concerns based on rules which can be addressed by the statue the permit can be denied.

GLMD Division Chief 12 GLMD Division Chief, as Supervisor of Mine Reclamation, evaluates recommendations from GLMD Metallic Mine Mining Staff and decides to Approve or deny the permit
Question: Does the mining company have to disclose every mineral they will mine during permitting and the beneficiation processes to be used, or do they just have to disclose the major mineral being mined? Answer: It is not possible to list every mineral in that what will be discovered in that the mining process is will excavate unknown materials. There are over 300 known and described mineral species from Michigan. There are over 400 sulfide group minerals found world wide. That being said there will likely be a suite of mineral defined that will describe the majority of the mineralogy of the deposit, as it is known from exploration to date.

Metallic Mineral Mining Permit requires the disclosure of specific plans depicting any beneficiation and treatment methods and techniques, and manufacturers material safety data sheets on all chemicals or other additives that are not natural to the site. In addition, the operator must obtain all applicable state and federal permits before beginning the beneficiation process.

Question: If gold is mined will a full disclosure of processing (cyanide leaching) have to be disclosed before permitting? Do our state laws allow the DEQ to require disclosure of mining processing? Answer: In that this question (and others) has been raised or will be raised as part of the review and public input process it will be addressed in the permit application.

Metallic Mineral Mining Permit requires the disclosure of specific plans depicting any beneficiation and treatment methods and techniques, and manufacturers material safety data sheets on all chemicals or other additives that are not natural to the site. In addition, the operator must obtain all applicable state and federal permits before beginning the beneficiation process.

Question: Will the possibility of weather extremes in Upper Ml be used as a factor of permit location of a mine or are these risks, of known flooding, not considered? Answer: These factors can be considered and will benefit from the information gathered and lessons learned at mining activities in similar environments and circumstances. Question: What bonding requirements are in place in the state of Michigan for metallic mineral mines? Answer: From Part 631:

324.63107 Performance bond, security, or assurance of operator.

Sec. 63107. The supervisor of reclamation, if he or she has reasonable doubts as to an operator's financial ability to comply with the rules promulgated under this part as to actions to be taken after completion of mining operations or any phase of mining operations, may require an operator to furnish a performance bond or other security or assurance satisfactory to the supervisor of reclamation. The supervisor of reclamation may postpone furnishing of the bond, security, or assurance depending upon the life of the mining operation.

R 425.15 Surety or security bond.

Rule 15. (1) The supervisor, if he has reasonable doubts as to an operator's financial ability to comply with the rules as to actions to be taken after completion of mining operations, or any phase thereof, may require an operator to file a surety bond in an amount equal to the expected cost of reclamation for each acre, or fraction thereof, of the area subjected to mining.

(2) In determining the amount of the surety bond or security bond the supervisor shall take into consideration the character and nature of the lands to be reclaimed, the future suitable use of the land involved, and the cost of the reclamation to be required.

(3) A security bond in the amount equal to the required surety bond may be deposited in lieu of a surety bond. A security bond shall consist of cash or negotiable securities and shall be deposited with the department of treasury. The securities shall be registered in the name of the state treasurer, who shall charge a fee sufficient to reimburse him for not less than actual and necessary expenses incurred in connection with the deposits.

(4) The supervisor shall have reasonable doubts as to an operator's financial ability to comply with the rules as to actions to be taken after completion of mining operation or any phase thereof when, upon the request of the supervisor, the operator cannot demonstrate that he has the financial ability to perform the reclamation as required by the act and rules.

R 425.16 Liability on surety or security bond.

Rule 16. (1) Liability on a surety bond or security bond is conditioned upon compliance with the act and these rules, and continues until the mining area reclamation is completed and approved by the supervisor.

(2) The supervisor shall advise the surety and the principal when liability is terminated on a bond filed for the portion or the whole of the mining area reclaimed. A security bond deposited with the state treasurer shall be released only upon written direction of the supervisor.

(3) The supervisor shall look to the surety or the security bond for correction of unsatisfactory conditions not otherwise corrected, and all expenses shall be paid through the surety or security bond in case of default by the principal.

In addition any solid waste disposal facility associated with the mine is subject to bonding and also the establishment of a perpetual care fund to be maintained for 30 years after final closure of the facility.

Question: Is the infrastructure of the county, where the mine will be located, taken into consideration for permitting of a metallic mineral mine? Answer: Local infrastructure questions have to be addressed by the appropriate local units of government. These are not under the purview of the DEQ. Question: What 'back-up’ plan would the DEQ require from the mining company if some unforeseen pollution were to happen to our water or damages to real estate values? Will home owners be compensated? What would the compensation be? Who pays this compensation; the state or the mining company? Answer: The only plans that are required are outlined in Part 637. If damage should occur there are remedies through the court system. Question: Once a company is permitted for metallic mineral mining, can they 'sell, lease or turnover' the permit to another mining company without additional review by the state DEQ? Answer: If a mine is sold, the permits in force at the time are considered to be transferred to the new owner. The terms of the permit are in force and could only be abrogated by the supervisor of reclamation within the limits of Part 637. Question: What environmental 'track record’ requirements does the DEQ have for a metallic mineral mining company to receive a permit? Does this 'track record' include reclamation history? Answer: Past practices are not a direct concern in the permit review process. Question: If Menominee and Marquette (Kennecott mining) counties are both permitted by the DEQ for metallic mineral mines, will the state DEQ be staffed to follow both permits to assure there are no environmental catastrophes or long term pollution? Answer: DEQ staffing levels depend on both workloads and department budgets. Available staff resources are projected to be able to handle the anticipated workload. Question: Is the state of Michigan's environmental agencies prepared to put at risk polluting the Great Lakes; 20 percent of the World's fresh water and the source of drinking water for 28,000,000 people, by permitting metallic mineral mines? Answer: The regulations in place and the enforcement of these regulations are meant as means to protect the environment as well as develop resources. The State of Michigan regularly permits activities which "put at risk polluting the Great Lakes, etc. etc." To date, the Great Lakes have not been rendered unfit for use by any of these decisions or permits. Question: What royalties will the state receive from a metallic mineral mine in the state of Michigan? Which 'fund’ receives the royalties or do they go into the state's fund? Answer: Questions about royalties needs to be directed to the DNR.