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American Resources Policy Network
Promoting the development of American mineral resources.
  • EPA’s revised Bristol Bay Watershed Assessment flawed on several levels

    Pulling a classic Friday afternoon document drop, the Environmental Protection Agency (EPA) released its revised draft Bristol Bay Watershed Assessment on Friday afternoon – only two days after tamping down media expectations that the release was imminent.

    As American Resources President Daniel McGroarty pointed out in an email to journalists on Friday, the flawed assessment draws from research conducted by Stratus Consulting and Ann Maest, the firm’s managing scientist, both of which earlier this month admitted to having falsified research in a long-running high profile environmental lawsuit against energy company Chevron.

    The Daily Caller’s Michael Bastasch has covered the story.

    As Bastasch explains,

    “Maest and Stratus claimed earlier this month that they had been misled by a plaintiffs’ lawyer when they provided an environmental report detailing the damage done by Chevron subsidiary Texaco to areas of Ecuador. They disavowed the report as ‘tainted.’

    “The environmental impact report used against Chevron was supposed to be written by an independent expert, but was instead written by Stratus, which was employed by lawyers representing Ecuadorian villagers.”

    These trial lawyers, according to Stratus, demanded that the assessment be ghost-written by Stratus and Maest to appear as if written by Richard Cabrera, the court-appointed expert, and that Stratus’s involvement be kept secret.

    Upon admitting to falsifying the report Stratus released a statement saying:

    “Stratus believes that the damages assessment in the Cabrera Report and the entire Cabrera process were fatally tainted and are not reliable. Stratus disavows the Cabrera Report, has agreed to cooperate fully and to provide testimony about the Ecuador litigation.”

    As Bastasch points out,

    “The company’s involvement in the Chevron case does not appear to have dampened the EPA’s willingness to work with Stratus. The regulator’s review of the Pebble Mine cites Maest’s work in conjunction with Stratus seven times. The review also cites Maest’s work in conjunction with consulting firm Buka Environmental four times.”

    The plot thickens when you consider that even before the Cabrera report admission, Maest had done consultancy work for anti-mining groups. One such group, CSP2, has stated on its website that Maest and a colleague at Stratus Consulting have provided technical assistance on geochemistry and hydrology for CSP2’s work in support of a coalition opposing the Pebble mine in Alaska.

    Consequently, American Resources principal Daniel McGroarty has called for the EPA to “withdraw Maest’s research from the assessment and conduct a thorough review of any and all work Stratus Consulting has done for EPA.”

    Beyond relying on discredited researchers, the assessment is still seriously flawed, as it merely evaluates a hypothetical project as no formal plans have been submitted, leading Pebble LP, a venture by Northern Dynasty Minerals and Anglo American PLC, to repeat its call for “due process,” which Greenwire’s Manuel Quinones translates as shorthand for the ability to go through the permitting process.” (subscription required)

    Quinones cites Pebble CEO John Shively who argues:

    “At a time when the entire executive branch is having to cut important program funding because of sequestration, it is stunning that the EPA continues to pursue this matter instead of waiting for a permit application to review through the well-established regulatory process.”

    However, considering the EPA’s recent history of regulatory overreach – West Virginia’s Spruce Mine being a case in point – there is little hope the agency will change its ways.

  • A Response to the EPA’s Release of its Revised Bristol Bay Watershed Assessment

    The EPA just released its revised Bristol Bay Watershed Assessment, outlining the potential impacts of a hypothetical mine in the Pebble region of southwestern Alaska. Unfortunately, the EPA’s study relies on research conducted by the U.S. firm Stratus Consulting and its Managing Scientist, Ann Maest, both of whom just a few short days ago publicly admitted to falsifying a research report.

    When the energy company Chevron discovered that Stratus and others had falsified environmental research used to win a $19 billion judgment against the company in an Ecuadorean court, Chevron sued Stratus and others in a federal court in New York, accusing the firm of racketeering and fraud. As that case proceeded, Stratus published a 28-page affidavit and 16 pages of individual declarations disavowing the research it had produced in Ecuador.

    Stratus Executive Vice President Douglas Beltman declared in the affidavit, “I disavow any and all findings and conclusions in all of my reports and testimony on the Ecuador project.”

    Ann Maest, Managing Scientist for Stratus, in her own declaration, stated, “I now believe that the damages assessment in the Cabrera Report and Cabrera Response is tainted. Therefore, I disavow any and all findings and conclusions in all of my reports and testimony on the Ecuador Project.”

    As President of American Resources Policy Network, a non-partisan education and public policy research organization, this greatly concerns me. The revised Bristol Bay Watershed Assessment cites two documents authored by Maest in two chapters, resulting in four citation notes. These documents are cited a total of 11 times in the text of the assessment, and seven of those are in conjunction with Stratus Consulting. (Full citations are pasted below.)

    The EPA’s decision to publish a report that relies on Maest’s research mere days after the firm and this individual have been discredited is troubling. Even before publicly admitting to falsifying research, Maest had been hired as a consultant by numerous anti-mining advocacy groups, calling her objectivity into question. One of them is CSP2, which states on its website that, “Since 2007 CSP2 has been providing technical support to a loose coalition of groups opposed to the proposed [Pebble] mine…CSP2 also utilized consultants…Ann Maest, Ph.D., and Cam Wobus, Ph.D., from Stratus Consulting to provide technical support on geochemistry and hydrology.”

    The EPA should withdraw Maest’s research from the assessment and conduct a thorough review of any and all work Stratus Consulting has done for EPA. We’ve compiled all of the references to Stratus in the Revised Bristol Bay Watershed Assessment below.

    Maest document citations and references in the text of the assessment:

    Wobus, C., A. Maest, B. Prucha, and D. Albert. 2012. Potential Hydrologic and Water Quality Alteration from Large-Scale Mining of the Pebble Deposit in Bristol Bay, Alaska: Results from an Integrated Hydrologic Model of a Preliminary Mine Design (review draft). Boulder CO: Stratus Consulting.

    Kuipers, J. R., A. S. Maest, K. A. MacHardy, and G. Lawson. 2006. Comparison of Predicted and Actual Water Quality at Hardrock Mines: The Reliability of Predictions in Environmental Impact Statements.

    Chapter 7 -Mine Footprint

    Pg. 258 – Wobus et al cited “Open-water reaches corresponded with areas of high upwelling potential modeled by Wobus et al.” Pg. 259 – Figure modified from Wobus et al.

    Pg. 275 – “The only exception is an area of interbasin groundwater transfer that has been observed between the South Fork Koktuli River and Upper Talarik Creek (PLP 2011: Chapter 7, Wobus et al. 2012).”

    Pg. 288 – “An assessment of hydrologic and water quality issues at the Pebble deposit was independently performed by Wobus et al. (2012).”

    “Where assumptions were similar between this assessment and Wobus et al. (2012) modeling efforts, streamflow modification projections were similar.”

    “Other significant divergences between streamflow alteration estimates in this assessment and Wobus et al. (2012) also are most likely due to differences in the location of the WWTP outfalls (Table 7-20).”

    Pg. 289 – Charts featuring estimates from Wobus et al.

    Chapter 8 – Water Collection, Treatment, and Discharge

    Pg.341 “Water quality degradation at metal mines in the United States have been reviewed and summarized in recent reports (Kuipers et al. 2006, Earthworks 2012).”

    Pg. 346 “This uncertainty is demonstrated by the record of inaccurate water quality predictions contained in environmental impact statements for major hard rock metal mines in the United States (Kuipers et al. 2006).”

    Pg. 349 “An assessment of hydrologic and water quality issues at the Pebble deposit was independently performed by Wobus et al. (2012). Wobus et al. (2012) used the same set of available data (primarily the EBD [PLP 2011]) as this assessment and based their modeling on the same mining plan (Ghaffari et al. 2011). However, those authors made somewhat different assumptions in model implementation that gave different results.

    Pg.538 “Reviews of U.S. mine records found that 60 to 93% of mines reported a water collection or treatment failure (Kuipers et al. 2006, Earthworks 2012). Improved design and practices should result in lower failure rates, but it is unlikely that failure rates would be lower than 10% over the life of a mine.”

  • Demand for Tantalum stays strong, while SEC conflict minerals rules don’t seem to affect import levels

    Our friends at MetalMiner recently went over import and export trends for Tantalum against the backdrop of the August 22, 2012 SEC conflict minerals rule and they enlisted Chris Grove, director of communications at Commerce Resources, a junior Tantalum mining firm, to comment on the numbers. MetalMiner found that in spite of new rules being (…) more

  • Strategic mineral issues debated in Toronto

    Early this week, strategic mineral experts gathered in Toronto, Canada, for the second annual Technology Metals Summit hosted by our friends at ProEdgeWire. We were honored that our very own Daniel McGroarty and several other American Resources experts were included in the impressive lineup of distinguished speakers. According to ProEdgeWire publisher Tracy Weslosky, the conference (…) more

  • California – Red Tape Central

    California’s nickname, “the Golden State,” can be traced by back to the discovery of the precious metal in the middle of the 19th century. For decades after World War II, it was the proverbial land of milk and honey, a destination for people and businesses in search of opportunity. Fast forward to today, and the (…) more

  • The Epoch Times on why the Pentagon wants “to buy rocks”

    The Epoch Times’s Matthew Robertson takes a closer look at the Pentagon’s request to Congress “for over a billion dollars. To buy rocks” – at a time when budget cuts should be the order of the day in Washington. He notes that while in previous years, the Department of Defense merely noted China’s near-total monopoly (…) more

  • Why Tantalum should be on U.S. stakeholders’ radar

    Gearing up for their upcoming conference on conflict minerals in early May, our friends at MetalMiner are stepping up their coverage of Tantalum, one of the four minerals commonly referred to as conflict minerals, with the other ones being Tungsten, Tin and Gold. A recent MetalMiner guest post by Chelsea Craven of Zepol Corporation looks (…) more

  • New NCPA report traces REE potential and related obstacles in the U.S.

    It’s time the United States overhaul its outdated and rigid permitting process and begin harnessing our vast rare earths potential while promoting economic and job growth – that’s not just something the American Resources Policy Network has been advocating for quite some time, it is also the finding of a new study released by our (…) more

  • Layoffs at mining equipment manufacturing site highlight need for permitting reform

    As reported by Reuters, Caterpillar Inc will lay off of about eleven percent of the workforce at one of its U.S. manufacturing sites for mining equipment. The job cuts, necessitated by the need to bring to “bring production in line with demand,” according to Caterpillar’s announcement, will affect 460 workers at the Decatur, Illinois, plant. (…) more

  • Red tape abundance – challenges associated with the U.S. permitting system

    With the release of this year’s instructive Behre Dolbear “Where Not to Invest” study, a report that ranks – among other things – the time it takes to bring new mines online in various nations, it comes as no surprise to see that the United States has tied with Papua New Guinea for the second (…) more

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