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July 2007 Edition Tram Electric, Inc.
 EVENTS
"MINING'S NEW HORIZON" The Utah Mining Association's 92nd Annual Convention will be held on August 23-24, 2007, at the Canyons Resort Grand Summit Hotel in Park City, Utah. This year's convention - "Mining's New Horizon" - promises to be a must attend event. This year's featured speakers include: Bret K. Clayton, Chief Executive - Copper, Rio Tinto; J. Brett Harvey, President and Chief Executive, Consol Energy; Dianne Nielsen, Energy Advisor, Utah Governor's Office; and Thurl Bailey, former Jazz basketball player. The technical sessions will pertain to global climate change, new project developments, and emerging issues. The evening's entertainment will be the fabulous Joe Muscolino Band. We encourage you and your colleagues to attend this year's exciting convention. On Friday morning, August 24, UMA will hold its annual golf tournament at Soldier Hollow Golf Course in Midway, Utah. We hope you plan to bring a foursome to attend this year's tournament, where a steak lunch will be served.. We are currently seeking sponsors for this year's convention and golf tournament events. Your sponsorship will help ensure that UMA has the financial resources to continue to aggressively represent Utah's mining and related supplier industry. Attendance at last year's convention was the highest in the past five years. We are confident, based on last year's successful event, this year's convention attendance will be even better. Don't miss this great opportunity to place your products and services in front of Utah's mining executives and operators. Please join with us to ensure UMA's on-going efforts are successful by sponsoring an event during the 92nd Annual Utah Mining Association Convention. For your convenience, there are links at the end of this article regarding sponsorship opportunities, a convention registration form, and a convention program. Thank you for your support, and if you have any questions, please feel free to contact Marilyn Tuttle at (801) 364-1874. 2007 UMA Convention Registration 2007 UMA Convention Sponsorships
RIO TINTO TOPS ALCOA'S BID FOR ALCAN SYDNEY, Australia - Mining giant Rio Tinto, the parent company of Utah's Kennecott Copper, has offered to buy Canadian aluminum company Alcan Inc. for $38.1 billion in cash, in a friendly takeover that tops a hostile bid by U.S.-based Alcoa. The bid exceeds a $28 billion offer of cash and stock from Alcoa Inc. that Alcan's board rejected in May, and would create the world's largest aluminum company. Alcoa Inc. withdrew its offer on after being outbid. Alcoa Chairman and CEO Alain Belda said Rio Tinto's bid ''strongly reinforces our view of the underlying value in the aluminum industry and its bright prospects for the future. At this price level, we have more attractive options for delivering additional value to shareholders.'' In a joint statement, Rio Tinto and Alcan said the Anglo-Australian miner was offering $101 per share for Alcan and that Alcan's board was recommending the deal to shareholders. ''This transaction combines two leading and complementary aluminum businesses, and is a further step in Rio Tinto's strategy of creating shareholder value through investing in high-quality, large-scale, low-cost and long-life assets in attractive sectors,'' Rio Tinto chairman Paul Skinner said. Rio Tinto's offer is a 65.5 percent premium on Alcan's closing share price before Alcoa's May 4 takeover bid, and an almost 33 percent premium on Alcoa's offer, the statement said. The offer is subject to conditions including gaining the support of 66.67 percent of Alcan's shareholders and a breakup fee of $1.05 billion payable by Alcan to Rio Tinto if Alcan pulls out. Alcan's U.S. shares climbed $8.85, or 9.9 percent, to $98.45 in trading in New York, while Alcoa shares rose $2.86, or 6.7 percent, to $45.29. Alcan has doubled since the beginning of the year. Trading of Rio Tinto's shares were halted in Sydney ahead of the announcement, but had earlier soared to a record price of $90.58 as rumors swirled that a deal on Alcan was imminent. On the London Stock Exchange, where Rio Tinto's shares are also traded, the price fell 2.5 percent after the announcement, to $78.99. Under the deal, a new company named Rio Tinto Alcan would be based in Montreal, Canada, directed by Alcan Chief Executive Dick Evans. Alcan Chairman Yves Fortier said the Rio Tinto bid offered shareholders ''the certainty of a clear path to completion'' - a possible reference to antitrust concerns about Alcoa's bid. Rio Tinto CEO Tom Albanese called aluminum an excellent business to be in because of increasing demand from China. ''The outlook for sector is very strong,'' Albanese said. ''World demand is expected to grow at more than 6 percent per year through 2011. We've seen China's demand for steel, for copper and for aluminum ramping up in recent years.'' Industry analysts noted synergies between the two companies and said Rio Tinto would likely consolidate operations after the takeover. ''This is a major deal that's been clearly flagged to the market and a very good way for Rio to use its forecast cash pile,'' said Numis Securities analyst John Meyer.
KENNECOTT'S COPPER DONATION
WILL BOOST MEMORIAL Kennecott Utah Copper has donated about 6,000 pounds of metal to build a memorial on the west side of the Utah Capitol recognizing the state's 118 fallen officers, Utah Law Enforcement Memorial Inc. announced. The $22,000 worth of copper will be crafted into a set of three sculptures to be unveiled with the names of the fallen officers. The metal will also be used to make the officer name plates on the memorial as well as the large medallion on the floor of the memorial. Lena Toritch, of Salt Lake City, has been commissioned to sculpt the $1.3 million memorial statues, the group also announced. So far, Kennecott Utah Copper, the Utah Legislature, Sahara Construction Inc., Utah Peace Officers Association, Spillman Technologies and Utah officers have donated about $600,000 toward the cost of the memorial. The life-size memorial will replace a wall-sized memorial that was removed in 2004 after restoration of the Capitol began. Since 1853, 118 officers have died in the line of duty in Utah. The first was Salt Lake County Deputy Sheriff Rodney Badger, who died while saving a family from a swollen river. The latest was Utah Department of Corrections Officer Stephen R. Anderson, who was shot and killed by an inmate who gained control of the officer's weapon during treatment at University Hospital. For a complete list of the fallen officers or to donate toward the fund drive, visit http://www.UtahsFallen.org/.
AT UTAH MINING ASSOCIATION The month of July is the time most Utahn's think about vacations with the kids out of school, usually great outdoor weather for camping, a time to travel, and slower work obligations in most industries. However, the July this year has presented challenges to all of us for our normal type of summer activities. The weather has been unusually hot (some would say as a result of global warming), the price of gasoline and diesel fuels have been at record high levels (Iraqi war?) putting a damper on the economics of driving or flying, the dollar is at record lows against the euro, and most other international currencies making travel abroad quite expensive, and the large Utah July fires across the state, and the record heat have made outdoor camping a dicey option. In addition, the democratically controlled Congress has begun to reconsider the results of moving forward rapidly with development of the oil shales reserves in Colorado, Utah, and Wyoming because of potential impacts on the environment, considering reopening the 2006 Energy Act promoting clean coal technologies, and has begun to work on legislation to reform (some would say "gut") the Mining Law of 1872. So, what are the bright spots for Utah's mining and supplier industries. First of all, commodity prices continue to be strong, and are expected to continue as the economics of China and India maintain their strong expansions. In addition, and maybe more important than most people are willing to admit, your Association's 92nd Annual Convention is less than 4 weeks away. (See lead article elsewhere in this newsletter). So, if you want to feel good, get away for a couple of days, learn all that is happening in our industry, receive additional business for 2008, and play some outstanding golf with your colleagues, come to Park City on August 23rd and 24th. I look forward to seeing you there! Remember, there is no better place to be. THE SUFCO MINE, Canyon Fuel Co., the Utah arm of St. Louis, Mo.-based Arch Coal Inc., operates three coal mines in the state, including the Sufco mine east of Salina. Opened in 1942, the Sufco mine is, as far as the company knows, the longest continually operated mine in the Western United States, said Gene DiClaudio, president of Canyon Fuel. The Sufco mine produces between seven and eight million tons of a coal per year, most of which goes to Pacificcorp and eventually Rocky Mountain Power, DiClaudio said. Other customers include Intermountain Power Agency, Sierra Pacific and Nevada Power. Approximately 94 percent of the mine's product stays in Utah, generating electricity. Canyon Fuel expects to be mining the upper seam of the Sufco mine's two coal seams through 2020, DiClaudio said. "After that we could access a second seam that would extend the life of the mine for another 15 years past 2020," he said. Annual payroll for the mine's 370 employees totals $30 million, DiClaudio said. The mine also spends $7 million a year on production taxes, including a federally imposed black lung tax and a reclamation fee, $1.5 million in property taxes and $11 million in royalties for mining on federally owned land, based on a percentage of the product's selling price. About 50 percent of that federally collected money is repatriated back to Utah, DiClaudio said. The Sufco mine also recently invested $90 million replacing a decade-old longwall operation. The new longwall was up and running in February, DiClaudio said. "It was time to replace it," he said. "The equipment was pretty much worn out." A longwall is a mining system that frames a block of coal about 1,000 feet wide by 7,000 feet long, containing between five and six million tons of coal. The longwall operates like a wood-plane, DiClaudio said, shaving lengths of coal off the rock face. "It's state-of-the-art technology," he said. "The old one was 1997 technology and this one is 2007 technology." Coal from Sufco is carried out of the mine on a conveyor belt system, loaded onto trucks and taken straight to customers, or to a transloading facility where it is loaded onto trains. "This is all done with local trucking companies in the Salina area," DiClaudio said. The second mine operated by Canyon Fuel is the Skyline mine, located near Scofield. The mine opened in 1991, DiClaudio said, and produces between 2.5 and three million tons of coal annually. The firm's current lease on the property runs through 2015, he said, but could be extended beyond 2020. The Skyline mine product goes mostly to a variety of cement producers who use coal to fire their kilns. Some of the Skyline coal also goes to independent power producers in California, and some major utilities, including Sierra Pacific and the Tennessee Valley Authority. Eighty-five percent of the mine's product currently goes out of state, DiClaudio said. Skyline infuses $46 million annually into the economy, including a $16 million payroll for 190 employees, just shy of $1 million in property taxes, $2 million in production taxes and $5 million in royalties, with the purchase of local supplies and services making up the difference. The youngest mine in the Canyon Fuel portfolio is the Dugout mine, located near Wellington. Open since 1998, the mine employs 240 people and produces four to five million tons of coal every year. Clients include Pacificorp, the Intermountain Power Agency, cement producers and the Tennessee Valley Authority, with 20 percent of the Dugout product leaving the state. The mine's lease spans through 2017, DiClaudio said. The Dugout mine has a $21 million annual payroll and pays $4 million in production taxes, $8 million in royalties and $700,000 in property taxes every year and has a total economic impact of $70, million a year with the inclusion of purchased goods and services, a more substantial contribution that in years past. "The market is more robust today than it was, say, two or three years ago," DiClaudio said. "The demand has expanded and grown for our product." Demand is especially high for Canyon Fuel's particular brand of coal, DiClaudio said, a sulfur compliance coal that meets the requirements of the Clean Air Act. Other coals with higher sulfur content have to be blended with another mines product to be compliant. "We consider environmental concerns to be one of our core values around which we operate our business," DiClaudio said. "It's not a priority, it's more than a priority." All Canyon Fuel mines have an environmental engineer on site, as well as an environmental coordinator who reports directly to DiClaudio and helps ensure compliance with imposed environmental requirements. "To run our mines we operate under permits that are issued by the Utah Division of Oil, Gas and Mining (DOGAM)," DiClaudio said. "We have a focus on complying with those, but we also have a focus to step out and improve the environment and the community where we operate." Two Canyon Fuel Mines, Sufco and Skyline, recently received Earth Day Awards from DOGAM for exemplay efforts in environmental stewardship. Sufco mine employees worked to improve the grazing and wildlife habitats in nearby Manti La-Sal and Fishlake National Forest. To help combat continued drought conditions, mine employees hauled water to cattle troughs located on Forest Service land. Sufco also helped repair several ponds and increased the ponds' water storage capacity. "This was strictly voluntary," DiClaudio said. "It's not something we had to do. It's something we wanted to do to be a good neighbor." The Skyline mine also received an Earth Day Award for removing 2.5 tons of noxious weeds called musk thistle from James Canyon near Scofield. That project, which began in 2004, was a joint effort with local Boy Scouts and has eliminated a half square mile of weeds so natural vegetation can now thrive. The Boy Scouts team with adult leaders and Skyline volunteers, DiClaudio said, and earn service hours for the work. Skyline also donates $5,000 cash annually and camping equipment to the troop, for use on the summer camp-out, as part of the partnership. All Canyon Fuel mines want to work collaboratively with environmental groups, DiClaudio said, and the company has never felt like target. "We're more than happy to sit down and talk to the groups and go over our plan so we can both move forward," DiClaudio said. "If there's any way at all we can modify what we want to do to meet the issues environmental groups might raise, we're more than willing to take a hard look at it." A compromise can't always be reached, he said, but state agencies are diligent and collaborative, and doing business in Utah has been a pleasant experience for Canyon Fuel. "We find Utah a very pro-business state," DiClaudio said. "We're happy to be operating in the state of Utah."
RAILROADS FOCUSING THEIR
ENERGIES ON MOVING COAL GILLETTE, Wyo. — The cloud that hangs over the coal industry for its contribution to global warming has yet to cast a shadow here, aproso the vast network of railroad lines that haul coal from the sun-baked flats of the Powder River Basin. Railroads across the country are spending hundreds of millions, of dollars buying locomotives, adding track and building cars. Much of the activity is focused on upgrades to the nation's coal transportation network, and nowhere is the spending as intense as in the Powder River Basin of northeastern Wyoming and southeastern Montana. "They're clearly putting their chips on coal remaining the largest source of energy in the United States," said railroad industry consultant Anthony Hatch. The resurgence in spending, after a slowdown earlier this decade, is not the first time the industry has gone on a building binge. What's striking, observers say, is the amount of resources going into coal at a time when utilities across the nation are under pressure to switch to less polluting fuels. Coal accounts for 21 percent of industry revenues — $11 billion of $53 billion in 2006. More than 852 million tons were hauled last year by the major railroads, accounting for almost 80 percent of the coal produced in the United States, according to the Association of American Railroads. Almost all of it went to power plants. So as mining and utility companies wage a public relations campaign to parry rising criticism of their contribution to climate change, railroads are joining the fight. In public speeches, on media tours and in corporate reports, railroad executives are touting the advantages of coal as a low-cost energy source with ample domestic supplies. Parroting the message of the utility industry, they point out that coal produces an estimated 52 percent of the nation's electricity. They stress future technologies could potentially reduce power plant emissions of carbon dioxide —a major greenhouse gas. And they remind that rail remains the most efficient way of getting coal from mine to plant. These actions have not gone unnoticed. Frank Wilner, an economist with the United Transportation Union, has accused the railroads of going a step beyond coal advocacy, to lobby against legislative proposals for a new tax or other restrictions on carbon emissions. Wilner described the utility, mining and rail industries as "arm in arm, fighting any carbon taxes or any additional costs that might be imposed to clean the coal." Rail representatives have rejected those claims, arguing they have lobbied for policies favorable to moving coal — not against environmental regulations that could affect their bottom line. Tom White with the railroad association said the group opposes carbon taxes, but is not lobbying against any specific legislation at this time. At the Powder River Basin, more than a dozen surface mines pock the arid landscape. Half the coal moved by the industry comes from the area, where mines work a massive coal seam up to 80 feet thick and spread over hundreds of square miles. Rail access once was considered the limiting factor in getting this coal to market. Supply interruptions have occurred, in 2005 due to track problems and this past winter due to bad weather. Rail representatives said 60 miles of new track scheduled to come on line in the basin this year will help offset those challenges. In recent years, production in the basin has increased by 60 to 70 million tons every few years. "What we're doing is incredible in terms of capital improvements being made," said BNSF Railway Chairman Matt Rose. "The country needs this asset, this resource." Fort Worth, Texas-based BNSF said capital investments in coal transportation totaled more than $1.3 billion over the last four years, after dropping to zero as recently as 2001. Spending on coal-related projects hit $626 million last year. Union Pacific Railroad, based in Omaha, Neb., is spending $100 million on new tracks in the basin through a joint venture with BNSF. A company spokesman declined to detail further coal-specific spending. CSX and Norfolk Southern, which haul coal from easternmines, are making lesser but still sizable investments to maintain or upgrade lines that take a beating from coal trains. Due to their size — up to four locomotives pulling as many as 125 cars — coal trains wear down tracks more quickly than other cargo haulers. Viewed from Wall Street, the railroads' investment in coal transportation has been a good one, easily divorced from the uncertainties facing coal. "The facts are pretty simple. It is the single cheapest way to generate a kilowatt hour," said Donald Broughton, a railroad analyst with A.G. Edwards & Sons. "Are there regulatory challenges as a result of environmental concerns? Absolutely. But this is still a fairly free market." Added Randy Cousins of BMO Capital Markets: "What you need is assurance of supply, and one thing coal offers is assurance of supply." The analysts also said rail companies are slowly freeing themselves of long-term "legacy" coal supply contracts that were favorable to utilities and kept hauling rates low over the past decade. The railroad association said rates paid by utilities have dropped since industry deregulation in 1980
MINING TO RETURN TO IRON COUNTY CEDAR CITY - After an absence of almost 30 years, iron mining is on its way back in this Utah county that was named for the ferrous metal. Officials of Palladon Ventures Ltd., a Salt Lake City-based company that owns mining operations at Iron Mountain west of Cedar City, have said a subsidiary company, Iron Bull Mining & Milling, could reopen extraction operations as early as next year. The mine could produce as much as four million tons of high quality iron ore annually, and initially employ 90 skilled workers. Frank Dolce, Palladon Ventures vice president, told the Cedar City Area Chamber of Commerce that that the company could one day employ as many as 1,200 workers at the 6,000-acre mine. Palladon Ventures also announced that a five-year renewable contract has been executed with Holcim Inc. for the sale of iron ore materials crucial to the cement manufacturing process. Iron ore material will be sold from the Comstock/Mountain Lion Mine at Iron Mountain, and shipped by truck by Holcim to their 800,000-ton capacity Devil's Slide facility in Morgan, Utah. Holcim Inc. is one of the largest suppliers of Portland and blended cements in the U.S., operating 14 manufacturing plants and over 70 distribution facilities, supplying more than 14 million metric tons of cement and related materials annually. "The regional cement industry represents an important ancillary business channel for Palladon," said Don Foot, Palladon Ventures president and CEO, in a statement. "Cement industry sales in coming years will help offset future administrative costs, while negotiations continue between Shagang Steel and Luxor Capital for a strategic interest in the iron concentrates business." In February Palladon announced that its joint venture partner, Luxor Capital Group, had signed a letter of intent with Jiangshu Shagang Group Co. Ltd. to sell Luxor's stake in the processed iron ore portion of the Iron Mountain project. Shagang is China's largest private steel company and one of China's top five steel producers.
LISBON VALLEY COPPER MINE NEAR MOAB The Lisbon Valley Copper Mine, located in San Juan County approximately 45 miles southeast of Moab, produced its first cathode copper in April 2006 and is currently ramping up to its full production capacity of 27,000 tons of copper per year. Mining is currently focused in the Sentinel pit area, where rock is removed through an open pit method using frontend loaders, with 26 cubic yard buckets, and 200-ton trucks, Blast holes are created so the rock material can be easily picked up by the equipment. "We develop a pattern and there could be anywhere from 50 to 200 holes in that pattern," said Bob Washnock, general manager with Lisbon Valley Mining Co., which is under the umbrella of the Constellation Copper Corp. "We know from previous drilling where the waste and the ore are. If it's waste we just haul it and put it on a dump. It's called a waste stockpile. We don't even mess with it." The rock in the Sentinel pit area has about .50 percent copper concentration. Lisbon Valley is also exploring the Flying Diamond deposit, four miles south of the current plant site. Drill holes from a 1970s-era oil test well revealed rock with an average grade of .70 percent copper and that a mine could open on the site, "once we further define the ore body that's in that area," Washnock said. Currently, material mined from the Sentinel pit is taken to the primary crusher, where the rock, called the "run of mine," is crushed to six inches in diameter. A secondary crusher further condenses the rock to a target size of one-and-a-half inches, sometimes smaller. "You're taking big rocks and making little rocks out of them," Washnock said. The crushed rock is then conveyed through an agglomerator, a long, rotating drum similar to a large cement mixer, where a mixture of water and sulfuric acid is added to the rock, which is then conveyed to a leach pad. The rock is stacked in lifts 25 feet high and 320 feet across, and a diluted sulfuric acid solution is sprinkled on the rock through a network of pipes suspended above. "It percolates down through, just like making coffee," Washnock said. Copper ions enter the solution as it dissolves the copper in the rock. The solution containing the dissolved copper - now known as a pregnant leach solution, or PLS - next goes to a holding pond. The PLS goes through a metallurgic process where it is mixed with a special reagent that extracts the copper from the water. The water, now free of copper ions, is sent back to the leach pad and reused. The ions - copper in its oxidized form - are concentrated in an electrolyte solution, which is sent through an electrochemical reaction called electrowinning. The electrolyte goes through a series of 74 cells with positive and negative terminals, just like a car battery, Washnock said. The ions are reduced to their metallic form and plated on stainless steel blanks. Every seven to 10 days, the blanks are pulled and the copper, in three feet by three feet sheets, is stripped. The finished product is known as "full plate copper cathode." According to Washnock, Lisbon Valley is the only electrowinning solvent plant of its size in the state doing leaching and copper recovery by solvent extraction. "We're basically filling a niche of being a mid-tier copper producer," he said. The company has 145 employees with an annual payroll of $9 million, Washnock said. Lisbon Valley also purchases $25 million in goods and services every yea, a, much as possible from local vendors. The company pays $780,000 in property taxes, $1.2 million in severance tax, $2.8 million in Utah sales tax and $8 million in state and federal income taxes, bringing significant amounts of money to the Utah economy. "Plus all the secondary benefits of people we've brought here who have bought houses and go to the grocery store and buy things at local stores," Washnock said. And all of this could grow if the company opens another mining operation at the Flying Diamond deposit. The sheets produced at Lisbon Valley are sent to market and mostly used by manufacturers of wire and copper tubing. Some product is also sent to mills that use a combination of copper and zinc to make brass. "Virtually all of it is going out of state," Washnock said. State and federal regulations protect air and water quality, as well as the surrounding environment. Ensuring compliance is a full- time job, Washnock said, and one Lisbon Valley employee is dedicated to that exclusively. "Monitoring and documenting what we're doing takes a lot of time," he said. The Sentinel pit should last for seven to 10 years, "longer if we find more copper downvalley," Washnock said. Once the mine is closed, the holes will be filled with topsoil and reseeded, and the area will be reclaimed. The support from the local area has been great," Washnock said. "We're happy to be a responsible and contributing neighbor in the community."
GLOBAL WARMING HEATS UP
THE NUCLEAR OPTION IDAHO FALLS, Idaho - Dangerous greenhouse gases continue to build in the atmosphere. World leaders are grasping for solutions to combat global warming. Nuclear advocates believe they have an answer. Scientists in southern Idaho are at the forefront of efforts that could help make atomic energy an important option to curb the emission of greenhouse gases. Nuclear power plants emit no such gases, which advocates say makes them a great replacement - along with renewables and other cleaner technologies - for traditional coal-burning plants. "Nuclear is increasingly very competitive with all other choices," John Grossenbacher, director of the government-funded Idaho National Laboratory, said in terms of cost. "It's very reliable and extremely safe." Part of the lab's mission is to develop safer nuclear technology, a task growing in importance as the Bush administration touts nuclear as an energy solution at home and abroad. And a recent report from the worldwide Intergovernmental Panel on Climate Change (IPCC) did not rule out the use of nuclear power as part of the mix to combat global warming. A Utah governor's advisory panel on climate change last week also included limited support for developing nuclear power. But environmentalists remain skeptical. Simply emitting no greenhouse gases doesn't make nuclear an environmental option, they contend. Atomic power has lingering problems, most notably the lack of a permanent repository - anywhere in the world - for long-lived, highly radioactive waste. "It's really the only selling point they can find to make Americans even consider going that option again," said Vanessa Pierce, head of HEAL Utah, a nonprofit group that monitors nuclear issues, referring to global warming. If nuclear power is a viable answer to fighting global warming, the question boils down to this: Are Americans ready to see more cooling towers of nuclear power plants cast shadows across the nation's suburbs and farm fields? By one estimate from the Massachusetts Institute of Technology, at least 1,000 new nuclear plants would be needed worldwide in the next 50 years to make a dent in global warming. Some question whether such a building spree would be possible. "Nuclear technology is re-emerging as a power generation option in the face of concerns about climate change, energy demand growth and the relative cost of competing technologies," wrote the authors of a recent report by the Keystone Center, a nonprofit science-policy group that brought together nuclear power providers and environmental groups for its assessment. "After more than a decade in which no new nuclear power plants were completed in the U.S., nuclear power is now the focus of considerable attention and debate." Idaho National Laboratory: The nuclear industry can trace its roots to a small experimental reactor in southern Idaho. The facility, now on Idaho National Laboratory property, briefly powered the nearby town of Arco. Even if nuclear power does not see a renaissance in the U.S., that does not diminish the role of the research at the Idaho lab. The U.S. wants to maintain a leadership role in nuclear research, even if it benefits other nations first, Grossenbacher said. For two decades, the lab has been the nation's leading government research facility on nuclear issues, said Dave Hill, deputy director for science and technology at Idaho National Laboratory. The lab has other roles, including finding ways to improve battery life and energy conservation and homeland security - but nuclear ranks among its top priorities. The campus includes an advanced test reactor, lab facilities where materials can be manipulated inside a sealed room to protect scientists and fuel manufacturing facilities. Researchers at the sprawling facility are working on next-generation nuclear power plant designs, new ways to more safely reprocess spent nuclear fuel and future uses for nuclear power. These research efforts help support the proposed Global Nuclear Energy Partnership (GNEP), which looks to expand nuclear's role around the world. Other research includes devising new ways to make use of nuclear technology. "We're looking at how to couple nuclear with other resources to produce liquid fuels domestically," said Hill. Small nuclear reactors could provide the heat needed to extract liquids from oil shale and tar sands, a way to reduce the nation's reliance on foreign fuels. For the immediate future, nuclear's main role will remain electricity production. Nuclear power: Good, bad and spent: More than 400 nuclear power plants provide about 17 percent of the world's current energy needs, according to the MIT nuclear study. France is the most reliant nation, with 78 percent of its energy coming from nuclear power. The United States has 104 operating commercial reactors, which combine to produce 30 percent of the world's nuclear energy. Nuclear provides about 20 percent of the U.S. energy mix. But no new nuclear plants have been built in the United States in the past 30 years. Some say the U.S. industry is still reeling from the near meltdown in 1979 at Pennsylvania's Three Mile Island nuclear power plant. Nuclear experts argue that the accident showed safety precautions work, while critics were upset that the accident occurred at all. Investors also seem to have grown leery because of the high up-front capital costs and lengthy potential delays before a new plant ever comes on line - some plants took more than 20 years to become operational. The Nuclear Regulatory Commission (NRC) expects about 30 applications for new reactors through 2009, though it's unclear how many of those will be built. The Bush administration would like to see even more of the world relying on nuclear power. GNEP's broad goals are to increase the number of nuclear power plants around the world and help nations safely create nuclear power programs while preventing others from using fuel byproducts for bombs. GNEP aims to limit proliferation by creating a system of fuel-producing and fuel-using countries. Nations interested in nuclear power, which may aim to create weapons programs, would be among the fuel-user states. These countries could use nuclear power, but not have fuel-making facilities, which can also be used to create weapons material. A much-debated piece of GNEP involves reprocessing spent nuclear fuel. Grossenbacher contends that recycling spent fuel, which is not done in the U.S., will mean less highly radioactive waste destined for a permanent repository. But reprocessing separates out weapons-usable elements, like plutonium, which opponents contend poses too great a risk of weapons proliferation. Reprocessing also costs too much compared to traditional uranium mining, critics contend. Even if no new nuclear plants are built, there remains the question of where to store deadly waste from reactors. Plans for the nation's first permanent repository of high-level nuclear waste in an underground facility at Yucca Mountain in Nevada remain stalled. A proposal to use Utah's Skull Valley to temporarily store some of that waste faces a similar battle. More nuclear power plants could bring an increase in low-level radioactive waste to EnergySolution's Tooele facility. Spent fuel rods, which account for much of the nation's nuclear waste, remain stored at the commercial nuclear power plants where they were created. As the waste debate continues, traditional coal-fired power plants are generating more than half of the country's daily electricity. These plants emit carbon dioxide, which is a greenhouse gas that builds in the atmosphere and warms the planet. If greenhouse gases are not brought under control, the average global temperature could rise as much as 9 degrees by 2100, according to IPCC estimates. A number of scenarios worldwide include nuclear as one piece in the puzzle to stabilize or reduce energy-related carbon emissions. Debate over the future: Several environmental groups would prefer to see nuclear deleted from the global warming-solution equation. "It's a huge P.R. campaign to reinvent nuclear as a green and clean energy source," said Michele Boyd, energy program legislative director of Public Citizen, a nonprofit watchdog group. "None of the problems have been solved." Even if the Yucca Mountain repository is built, critics say there is already more waste sitting at plants across the nation than would fit into the facility. Even if the repository question were solved, critics doubt there would be enough resources for the world to embark on the unprecedented scale necessary to build enough nuclear plants to make a difference in defeating global warming. Plant safety also remains a top concern, at home and abroad. The non-profit group Union of Concerned Scientists reported safety repairs required nearly 30 U.S. reactors to shut down for at least a year since the 1980s. There have been a number of near-misses the public rarely hears about, said Jon Block, a nuclear expert with the organization. Changes in the NRC licensing process, he said, have made it more difficult for the public and opposition groups to learn critical details about potential nuclear plants. The watchdog group is also worried the nuclear industry has too much influence over the NRC, the agency designed to monitor the power providers. Boyd said environmental groups see a bright future in improving energy efficiency and investing more money into renewable resources, like wind, solar and geothermal. She said research is under way to make solar and wind work more like coal and nuclear in terms of reliability, regardless of the weather. Patrick Moore, who helped found Greenpeace, said he is skeptical renewables will replace coal or nuclear as a primary power source. Moore, who began his career protesting nuclear weapons, is now pushing atomic power as an answer for global warming concerns. "No other technology is offsetting as much carbon emissions today in the U.S. as nuclear energy," said Moore, who is co-chairman of the Clean and Safe Energy Coalition, a nuclear-industry funded organization. Moore, who heads the consulting firm Greenspirit Strategies, said the nation's repository issue is solved, but politics are preventing Yucca Mountain from opening. Officials at Idaho National Laboratory acknowledge a role for renewable resources, but they argue that wind and solar are still only intermittent energy providers. "In the end, it's not enough," Grossenbacher said of renewables. "We still need large, concentrated energy production sources." With the nation's vast coal reserves, that resource must also be part of the mix, Grossenbacher said. To help fight global warming, power companies need to find ways to capture carbon emissions. Explained Hill, the lab's deputy director for science and technology, "It's going to take some of everything. There's no one solution."
URANIUM MINES CREAK TO LIFE LA SAL - Jerry Cowan speeds his golf cart down through the pitch black recesses of Utah's first working uranium mine since the last boom rocked southern Utah in the 1980s. The cart's rapid descent - heading 600 feet below the surface - is reminiscent of the falling uranium prices of the 1980s. That particular fall left the Intermountain West's uranium industry in shambles. Deeper and deeper below the tiny town of La Sal rest tons of unprocessed uranium ore, now too valuable for companies to pass up any longer, said Harold Roberts of Canadian-based Denison Mines Corp., which reopened the Pandora Mine within the last year. Soon, beams from a few headlamps dance in the darkness ahead. A handful of miners drill into solid rock, emitting sounds that may herald a new Utah uranium boom, one that may be sustained if the world embraces nuclear power as a way to fight global warming. This latest trend is tied to skyrocketing uranium prices - about $140 a pound, up from about $10 in 2000. The increase is largely due to supply-and-demand issues for an expensive-to-process mineral available only in limited regions worldwide. For a time, Russia was dismantling nuclear bombs, reprocessing the high-grade uranium for weapons into low-grade uranium for power plants, which may have helped drive down costs, said Ken Krahulec, metals geologist for the Utah Geological Survey. Also affecting recent supplies: One of the biggest mines in Canada, the world's leading supplier of uranium, is closed due to flooding. Another factor adding to this record pricing is that a group of private investors is buying uranium and betting prices rise even higher, he said. Plans for China and India to ramp up their nuclear capacity may also be playing into the recent price hike. "They're going nuclear big time," said Peter Farmer, president of Denison Mines. All of these factors could simply be a prelude to a major resurgence for nuclear power. Global warming has forced a renewed debate about how to provide large supplies of electricity in a different way. Unlike traditional coal-burning plants, nuclear plants emit no greenhouse gases. These gases build in the atmosphere acting to trap heat, which contributes to the planet's warming. Some hope these arguments will boost nuclear's share of the future energy mix. For now, mines across the Intermountain West are slowly creaking back to life. Pandora is one of two operational uranium mines in the state, said Susan White, mining program coordinator for the Utah Department of Natural Resources' Division of Oil, Gas and Mining. A total of 15 mines have approval to begin operations, while another 10 exploration permits have been granted. The U.S. ranked 10th in uranium-ore output at 1,692 tons, while Canada led the world with 9,862 tons, according to 2006 figures from the World Nuclear Organization. If a nuclear renaissance takes hold, places like the Pandora Mine could be active for years to come. The miners do not need to wear any type of radiation protection, because it takes a ton of uranium ore to yield 6 pounds of uranium. In some Canadian mines, where the uranium concentrations are much higher, robots must be used to remove the ore. Cowan, who worked the mines during the last uranium boom, is now training the next generation of miners. Safety is among the priorities he stresses to the new crop. "We haven't had a smashed finger," Cowan said. Much of the early work has been placing steel support beams on the ceiling to cut down on rocks coming loose. Other holes being drilled into the walls are for explosives to blast loose the uranium ore. Once they are ready to blast, the miners duck around a corner and brace for the explosion. Workers maneuver carts into the blast area and use construction equipment to load the broken rocks into a hopper. Every once in a while, a cart barrels out of the mine's entrance. Workers take radiation readings of the ore and dump the haul into one of several piles that dot the Pandora Mine property. A series of chemical processes at a uranium milling plant separates the uranium from the ore, and eventually produces what is known as yellowcake uranium. The final product goes to other facilities designed to prepare the uranium for processing into fuel rods, which power nuclear plants, Roberts said. The mine now runs one shift a day with its 14 employees, Roberts said. As they hire more miners, the company hopes to build up to a second shift. But finding miners is a challenge. Most of the miners that fueled Utah's last uranium boom in the 1970s and '80s have moved on to other industries or are no longer in good enough shape to handle the daily rigors of work in the mines, said Cowan. In addition to recruiting new miners, uranium companies are stealing experts from other industries, like gold and coal mining, Roberts said. Taxpayers were left to foot the bill from the previous uranium booms, which included cleaning up dozens of abandoned mine sites. The milling process also leaves polluted tailings that must be dealt with, said Vanessa Pierce, head of HEAL Utah. The latest cleanup efforts involve almost $100 million from the Department of Energy to remove uranium tailings near Moab. "We're going to see history repeat itself," she said of cleanup costs. Radon gas also posed health risks to miners and past workers have filed for federal compensation because of illness linked to mining, Pierce said. Roberts counters that mine safety is a greater concern today, and ventilation systems are in place to prevent the buildup of dangerous gases, such as radon, which debilitated miners in the 1950s and '60s. Some towns in southern Utah could be bustling once other mines begin operations. Roberts said these efforts will help improve the regional economy as well as the nuclear industry. Denison Mines hopes when the Pandora Mine is running at full speed, it can produce about 4,000 tons of uranium ore a month. While a productive total, the company has bigger plans for the Tony M mine near Ticaboo. "This is going to be a pretty good size for a uranium mine," Roberts said, standing near one of the Tony M mine's two entrances. Each entrance stretches 2 1/2 miles into the side of the cliff face. When it's fully operational, 150 miners could be pumping out up to 15,000 tons of uranium ore a month. The influx of ore from both mines will also help another of the company's uranium facilities start running at full bore again. Denison's White Mesa Mill, near Blanding, is one of four uranium processing mills in the nation. Utah has a second mill, Shootaring Canyon, near Ticaboo, which is owned by sxr Uranium One. "That'll open things up for the little guys," Roberts said, once the White Mesa Mill starts running. The mill will set a buying schedule, which is expected to encourage the smaller "mom and pop" mining operations to start up, he said. If Utah is at the leading edge of the next uranium boom, a worldwide expansion of nuclear power could make the ride last longer than usual.
GOSHUTE NUCLEAR STORAGE ALLIES Politics, not good policy, drove the U.S. Interior Department to derail a planned high-level nuclear waste storage site on the Skull Valley Goshutes reservation, charges a new lawsuit. Tribal Chairman Lawrence Bear said the suit would benefit all American Indians, who look to the federal government to support tribal ventures in accordance with established law and policies. "It's a precedent," he said. The case is the latest chapter in the decade-long battle between the project proponents and Utah politicians, who have fought the project from the start and appeared to win it last fall by pressing their case directly with Interior Department officials in Washington. Although the federal Bureau of Indian Affairs had given preliminary approval to the Goshute-Private Fuel Storage lease years earlier, James Cason, associate deputy secretary, acted on behalf of the secretary of the Interior to disapprove the lease Sept. 7. The same day, Chad Calvert, principal deputy assistant secretary for land and minerals management, denied a right-of-way application for land to house a building where containers of spent fuel could be transferred from rail cars to heavy trucks that would travel 26 miles to the storage site. The proposed storage site, about 45 miles southeast of Salt Lake City, would have been nearly big enough to hold 4,400 tons of used reactor fuel- nearly all of the spent fuel amassed nationwide in the 50 years of commercial nuclear power - stored in steel and concrete containers. Currently, that highly radioactive waste is being stored on-site at many reactor locations nationwide. The suit called the decisions "arbitrary, capricious, an abuse of discretion, not in accordance with law, without observance of procedures required by law, and otherwise fatally flawed." It also claims that pressure by Utah politicians drove the Interior Department's actions. Shane Wolfe, spokesman for the Interior Department, said his agency had not seen the lawsuit. "It's a policy not to comment on pending litigation," he added. John Parkyn, chairman and chief executive officer of Private Fuel Storage (PFS), said it was significant that the U.S. Nuclear Regulatory Commission had approved the storage-site license after eight years of review. "We will overcome all challenges to the license as we prepare to build and operate a safe, temporary storage facility," he said in a press release. Ever since the Sept. 7 rulings, the tribe has been losing money. Its agreement with the consortium brought $200,000 a year to the 153-member tribe until waste started coming to the yet-to-be-constructed storage facility. Once the site started being used, the payment was to increase to at least $1 million a year, according to the lawsuit. In the court filing, the tribe noted that Sen. Orrin Hatch heard about the decisions from the Interior Department and publicized them in a press release that said: "PFS is dead. Skull Valley is stone cold dead." Meanwhile, tribal leaders and their attorneys say they have never received a formal copy of the Interior Department rulings, let alone the thoughtful consideration their project deserves. The last time the Goshutes and PFS sued to keep their project going, they won in a decision that was made final when the U.S. Supreme Court refused in 2006 to overturn the lower-court ruling against several state anti-nuclear waste laws.
RENEWABLE ENERGY THE COMING BOOM? Utah and the West could see the kind of investment that California's Silicon Valley enjoyed during its technology revolution if Congress establishes a national renewable energy standard, bill supporters said. Sponsored by Rep. Thomas Udall, D-N.M., and Rep. Todd Platts, R-Pa., H.R. 969 would require most utilities nationwide to produce 20 percent of their electricity from renewable sources by 2020. Democratic leaders could bring the bill to the House floor next week, perhaps as an amendment to another piece of legislation. That's why "it's crunch time in Congress," Lawson LeGate, the Sierra Club's senior southwest regional representative, said during a meeting with The Salt Lake Tribune editorial board. LeGate cautioned, however, that his organization didn't want to see watered-down legislation that fails to activate a meaningful renewable energy standard, which supporters say would curb global warming, protect the environment, lower consumer energy bills and spur economic development. A 20 percent renewable standard could mean $45 billion in capital investment and 13,000 new, permanent jobs in Utah due to the state's tremendous potential for solar, wind and geothermal development, said John O'Donnell, president of Ausra, Inc., a Palo Alto, Calif.-based solar technology developer. While LeGate said the renewable standard bill is proving a tougher slog than it should be, 2nd District Rep. Jim Matheson said competing bills on renewable standards have made the debate more complex. A renewable standard bill already has failed in the Senate. Other House measures could focus on carbon cap and trade schemes that would provide market-based incentives to develop renewables, Matheson said. Another complication: Some Eastern states, such as Virginia, have few renewable resources to develop. Requiring them to meet a 20 percent renewable standard could be unrealistic, said Matheson, a member of the House Energy and Commerce Committee. Matheson's constituents support efforts to address global warming, according to a poll by the Natural Resources Defense Council released. The survey showed 2nd District voters identify climate change as the nation's most pressing environmental problem and that immediate action is needed to address it. More than 80 percent of the survey respondents said there should be incentives for energy conservation, more energy-efficient appliances, tougher vehicle emission standards and expansion of alternative energy use. Already, 23 states have enacted their own renewable energy standards, also known as renewable energy portfolios. Last month, Gov. Jon Huntsman Jr. announced he would pursue a renewable portfolio standard for Utah. Advocates for a federal standard say it could help streamline plans for new transmission capacity and boost research and development of non-fossil fuel energy. A 2006 study commissioned by the National Renewable Energy Laboratory in Colorado found that investing in commercial-scale solar power plants in California showed greater returns in economic activity and employment than similar investment in natural gas equipment. During the annual Western Governors Association meeting in June, O'Donnell and other industry representatives said capital investment would be hard to come by unless all levels of government pitched in as full partners. Without policy change and financial incentives, renewable technologies can't be developed to commercial scale. The governors, however, indicated they'd rather focus on clean-coal technology than new renewable energy research.
JUDGE DISMISSES COUNTIES' LAWSUIT A federal judge has dismissed a lawsuit over land use in the Grand Staircase-Escalante National Monument, ruling Kane and Garfield counties can neither can claim ownership of roads that crisscross the monument's 1.8 million acres nor expect the U.S. Bureau of Land Management to do so for them. That's because the BLM doesn't have the power to make binding decisions on road ownership, U.S. District Judge Bruce Jenkins ruled. Further, the counties haven't yet proved ownership under required "quiet title" action, the judge said, rendering their lawsuit premature. The lawsuit filed last year affects the monument President Clinton created in 1996 under the federal Antiquities Act. It also has implications for the ongoing battle over mechanized access to wilderness-potential areas in Utah that has pitted environmental organizations seeking to conserve roadless areas against local officials who fear wilderness designation will harm their economies. The counties "tried to overturn all the protections limiting . . . off-highway vehicle travel [in the monument] based on unsupported allegations without proof there were a bunch of highways out there, somewhere," Earthjustice attorney Ted Zukoski said. "The judge said they have to prove each and every road." Zukoski represented the Southern Utah Wilderness Alliance, which intervened as a defendant in the case along with the National Trust for Historic Preservation, the Sierra Club and the Wilderness Society. The counties filed the lawsuit against the U.S. Department of the Interior and the BLM, as well as agency principals. Jenkins' ruling allows the counties to file an amended complaint within 20 days. Kane County Commissioner Mark Habbeshaw said he hadn't spoken to his county's attorney nor read the ruling, but expected a return to court either with an amended claim or an appeal. Revised Statute 2477 is a Civil War-era mining law that allowed counties and cities to construct roads across federal land. The open-ended language was repealed three decades ago, but existing rights of way were grandfathered in. Two years ago the 10th U.S. Circuit Court of Appeals ruled state laws dictate how the road claims are to be decided. In Utah, the law says "existing" roads are those that had 10 years of continuous use and county maintenance before 1976. Continuous-use claims under quiet title actions now must be decided road by road in federal court. But to litigate every road claim "would be overwhelmingly expensive to everybody, to us, to the federal court," Habbeshaw said. The county has 1,000 roads and each would cost at least $100,000 to take to court, he added. Utah already has spent $12 million gathering evidence to help the counties prove their claims. "We don't have one road to show for that," Habbeshaw said. Jenkins also dismissed the counties' claims they would be harmed if the monument plan doesn't loosen its restrictions on water diversions for agriculture or commercial use. The judge said the BLM has yet to act on a Kane County water-district request the agency heard in January, so the claim is premature.
STOMPING MOTHER: UTAH IS LIVING BEYOND Americans are gluttons. We swallow more resources per person than any other nation on Earth, with the exception of the United Arab Emirates. And Utahns are worse than average Americans, according to a new study. The Utah Population and Environment Coalition claims that Utah's people demand more from Mother Earth than the state's biosphere can sustain. We are, they say, living beyond our environmental means. That deficit can only be made up two ways. We can take more than our fair share of resources from other people, or we can deplete our own state's resources to the point that we will leave those who come after us with an ever-worsening environmental dilemma that presumably will become irreversible. Not a pretty picture. If it is true. We can't say for certain that it is. The coalition's methodology is based on something called an ecological footprint. It attempts to calculate how much Utahns consume in food, housing, energy and other commodities and compares that to the land's renewable biological capacity. Researchers made those calculations for the years 1990 and 2003. Obviously that is a complex undertaking. Did they get it right? We can't be sure. Intuitively, however, given what everyone can see all around us - the increasing stress that the Utah and world populations are placing on supplies of clean water, air, forests, fossil fuels, sea life and other creatures - our gut says they are right. The researchers concluded that in 1990, when Utah's population was only 1.7 million, the state actually was running an ecological surplus. But that was not true of 2003's burgeoning population of 2.4 million, which was running a deficit of 11 percent. Today, the "overshoot," as the coalition calls it, presumably would be even bigger. What are some solutions? Round up the usual suspects. Reduce family size. Recycle materials. Buy local food first (it cuts down on fuel consumption). Drive less, take public transit, use more fuel-efficient cars. Diversify energy sources in favor of renewables. Insulate. Live closer together. Don't build McMansions. Use green building materials. Even the most tolerant mother will only allow errant children to run up debts for so long. Eventually, she will be bankrupt. And they will starve and die.
UNDER CONSENT DECREE, KENNECOTT WILL Kennecott Utah Copper's voluntary effort to clean up contaminated groundwater on the west side of Salt Lake County is now the law. Under a consent decree filed in U.S. District Court, Kennecott will dedicate $20 million for work that began 15 years ago and is expected to continue for another four decades. The company must also halt further contamination from mining operations and clean up fouled drinking water in South Jordan, West Jordan, Riverton and Herriman. "Kennecott has been doing what it agreed to do," said Utah Department of Environmental Quality spokeswoman Donna Kemp Spangler. "This puts it in writing." The new money will augment more than $62 million already dedicated to two reverse-osmosis water-treatment plants and any other remedies to provide clean water to the Jordan Valley Water Conservancy District. Kennecott operates its immense open pit Bingham Canyon Mine in the Oquirrh Mountains about 30 miles southwest of Salt Lake City. Acidic waste water that leached from tailings piles and other mining wastewater contaminated a two-square-mile plume with high concentrations of sulfates and heavy metals and affected a total area of 20 square miles. In 1995, the state and Kennecott settled a lawsuit over damage to the groundwater. That consent decree ordered the mining company to pay the state $9 million in cash for damages and to set up a $28 million trust fund for water treatment. By then, Kennecott had begun cleaning up the pollution according to negotiations with the state Department of Environmental Quality, said DEQ attorney Denise Chancellor. The state put its $9 million in the trust fund, which by 2004 had grown to $62.5 million. That year, the state approved a joint proposal from Kennecott and the water district to build the reverse-osmosis plants to treat the water going to the four affected cities. One plant already is operating, the other is under construction. The decree resulted from a separate U.S. Environmental Protection Agency action against Kennecott under a 1980 federal law that identifies Superfund cleanup sites. The decree orders Kennecott to provide $15 million to pay for continued work on barriers and pumps that should both halt any new pollution and clean up the remainder. Kennecott also must pay the EPA $5 million for its costs. "People who live near or around this area deserve to know that everything possible is being done to make sure the water is clean and that the area will not be recontaminated," Attorney General Mark Shurtleff said in a statement. A copy of the consent decree and details and deadlines for public comment are available at www.deq.utah.gov/Issues/nrd/index.htm.
KANE, GARFIELD TO APPEAL RULING
ON ROAD OWNERSHIP Less than two weeks after a federal judge rejected Kane and Garfield counties' claims on roads in a national monument, the two county commissions have decided to appeal the ruling. Kane County Commissioner Mark Habbeshaw said the commissions decided on the move during a closed-session conference call, believing the ruling's requirement to take each road claim to court separately is too great a burden. Habbeshaw said the counties' attorney will file a notice of the impending appeal this week. The appeal would argue U.S. District Judge Bruce Jenkins' June 29 opinion goes against case law and congressional intent on how to determine ownership of the roads that crosshatch the 1.8 million acre Grand Staircase-Escalante National Monument, the commissioner said. Jenkins dismissed the lawsuit, ruling Kane and Garfield counties can't autonomously claim ownership of roads or expect the U.S. Bureau of Land Management to do so for them. That's because the BLM doesn't have the power to make binding decisions on road ownership, the ruling said. Further, until the counties prove ownership under legally required "quiet title" action, the lawsuit is premature, the judge said. Jenkins' ruling reiterated an earlier federal appeals court decision that, based on Utah law, each claim had to be judged in court after a county claimed title to a road. Central to the dispute is Revised Statute 2477, a Civil War-era mining law that allowed counties and cities to construct roads across federal land. The open-ended language was repealed three decades ago, but existing rights of way were grandfathered in. Road claims are part of the ongoing battle over mechanized access to potential wilderness areas in Utah that has pitted environmental organizations seeking to conserve roadless areas against local officials who fear wilderness designation will harm their economies. Several years ago, Kane County officials yanked down road signs banning all-terrain vehicles in the monument. Those stunts are in the past, Habbeshaw said. "We're not doing those kinds of things anymore. We're in court now," he said.
MINE-CLOSURE PROGRAM STIRS UP WORRIES MILFORD - Thom Fisher is one of many who hold mining claims in a mineral-rich area west of Milford in Beaver County, studying the quality of ore and feasibility of mining it. He fears plans by the Bureau of Land Management and the state's Abandoned Mine Reclamation Program could close old mine shafts in the area and hinder his ability to study the geology necessary in determining a claim's potential value. So Fisher wrote to Gov. Jon Huntsman Jr. about his concerns. Officials from the BLM and reclamation program toured some of the mine shafts abandoned in the area. Gold, silver, zinc, copper and other minerals have been mined in the region for more than a century, with many mines abandoned once the easy ore was exhausted. Officials say that leaves a danger to the public - including a potential liability problem for the agency if anyone is killed or injured in a shaft on BLM land. Lucia Malin, acting director of the reclamation program, said closure projects funded by coal royalties are meant to avoid accidents like one in Tooele several years ago in which an ATV rider plunged to his death in an abandoned shaft. Fisher, chief executive officer of Escalante Mines Inc. of Denver, told officials he is not against the closures but does oppose permanent measures to fill in the shafts, such as backfilling from old tailings piles. Fisher asked officials to consider using hinged steel grates that could be locked or welded shut, but still allow for future access. He said if he is denied access to the old The alternative to using the old shafts to assess the value of a claim is drilling core samples, a process that is expensive and provides less information than using the shafts, according to Fisher. Mike Stiler, the executive director of the Department of Natural Resources, who was on Friday's field trip, said there might be room to work with Fisher on how the shafts on his claims might be closed, but made no promises. Anthony Gallegos, the reclamation engineer who will oversee the closures in the area, told members on Friday's field trip not all the shafts in the area will be closed. Some patented claim holders, meaning those who have been given a deed to the land, have chosen not to participate in the closure program and will be responsible for any future liability. Other closure methods include injecting shafts with foam and walling off using cinder block or native stone. Gallegos said the closure method of a site depends on wildlife and historical qualities. The historic value of a shaft usually includes other structures at a claim site, like head boards or old machinery once used to extract ore. The shaft at a historic site would be grated as would shafts where bats live so the animals could have continuous access.
MINING REFORM WOULD CORRECT IMBALANCE Human-powered outdoor recreation hasn't changed much in the last 135 years. Advances in material and fabric technologies may assist in climbing higher and trekking farther, but through the adoption of outdoor ethics standards the environmental impact of human-powered outdoor recreation remains sustainable, notwithstanding an explosion in popularity. Unfortunately, the same cannot be said about hard-rock mining. Mining operations that once used pans and pick axes to extract precious metals now rely on toxic chemical processing, large-scale dynamite blasting and massive earth-moving machines. The resulting environmental footprint associated with hard-rock mining has grown enormously over the last century. Thousands of acres of once-pristine public lands are now scarred, watersheds are polluted and towers of toxic mine tailings cost billions of dollars to clean up. The reason is simple. Unlike the outdoor community's evolving guidelines, the mining industry's standards have not been updated since President Ulysses S. Grant signed the 1872 Mining Law more than 135 years ago. This antiquated statute recognizes mining as the highest and best use of public lands. Perhaps that made sense when the telegraph was the most advanced form of communication and when most Western states were still territories, but much has changed since the Grant administration. From the creation of the National Park Service, Forest Service, Bureau of Land Management and the Fish and Wildlife Service, to the passage of the Wilderness Act and the Wild and Scenic Rivers Act, it is evident that conservation and stewardship of public lands and waters has evolved into a fundamental American value. The worth of our public lands extends far beyond mineral extraction; it must be balanced with other interests, such as habitat preservation and clean air and water, as well as outdoor recreation. Today the West is settled and its economy has evolved from one relying on resource extraction to a robust economy thriving on recreation and tourism. Our landscape facilitates tourism focusing on hunting, fishing, camping and other human-powered outdoor pursuits such as climbing, hiking, mountain biking, paddling, snowshoeing and backcountry skiing. An analysis by the Outdoor Industry Association documents that the national economy benefits from active outdoor recreation to the tune of $730 billion annually. For the Intermountain West, recreation contributes more than $61 billion, 617,000 jobs and nearly $9 billion in federal and state taxes. Many communities throughout the West thrive on recreation revenue and would object to the special consideration given to mining as the best use of their public lands. The 1872 Mining Law allows mining companies - including those wholly owned by foreign corporations - to stake claims on public lands that sometimes even impact historic sites, national parks, wild and scenic rivers, wilderness areas and American Indian cultural sites. The law also permits claimholders to buy public land outright for no more than $5 per acre, less than the entrance fee to most national parks. Please don't get the wrong idea, we are not advocating for the complete halting of metal mining operations in the United States. In fact, a lot of outdoor equipment - ski poles, carabineers, mountain-bike frames and crampons - use stronger and lighter-weight metals to enhance performance. Rather, mining companies should play by the same rules as other public land users. They should conduct their operations more responsibly by staying out of pristine special places, restoring mined lands and adjacent waterways to pre-mining conditions and paying the appropriate royalties for the metals extracted from public land. Fortunately, Congress can fix the outdated provisions in this law by passing the Hardrock Mining and Reclamation Act of 2007. Introduced by Rep. Nick Rahall, D-W.Va., this legislation would finally bring financial sense and environmental responsibility to hard-rock mining. Desiring responsible production of the metals it uses, even the jeweler Tiffany & Co. has endorsed the bill. The grandeur of American public lands and waters is a fundamental part of who we are as a people. Our currency honors the country's founding fathers, but some of it also honors our land. Reach into your pocket and look at Colorado's state quarter - what you will find is an image of the Rockies, not a prospector with a pick ax. The sooner Congress passes this key legislation, the better off the outdoor community and industry, not to mention the American taxpayer and the environment, will be. * Mike Van Abel is the executive director of the International Mountain Bicycling Association and a founding member of Outdoor Alliance. Readers may write to him at IMBA, P.O. Box 7578, Boulder, CO 80306, or by e-mail at mike@imba.com.
LAWMAKER: FUEL TAX INADEQUATE A lawmaker who hopes to find ways to build more highways through a variety of tax schemes presented options that would supplement or replace Utah's current 24.5 cents per gallon fuel tax. Rep. Wayne Harper, R-West Jordan, told members of the Legislature's Transportation Interim Committee that while people are driving more than they used to, the fuel tax has remained the same since 1997, leaving potholes in highway revenues. "Motor fuel is a very stable tax, which is a good tax," Harper told the panel. "However, with the increased costs, [and] the increases in fuel efficiency in vehicles, it is not now an adequate tax." Utahns are logging 192 percent more miles traveled than in 1976. The population has doubled in that time. In part because of vehicle fuel-economy gains, the number of gallons of gas sold has increased 64 percent, Harper said. Even so, when adjusted for inflation, the state fuel tax isn't bringing in any more money than it did 10 years ago. The state now dedicates 17 percent of its sales taxes to transportation. This year, lawmakers passed a record- high transportation budget. Still, Utah Department of Transportation officials say billions more are needed to take care of population growth and to maintain highways. Harper's presentation included several revenue- boosting ideas: a vehicle-mileage fee that would be added to or substitute for current fuel taxes; a supplementary sales tax; adjusting taxes for inflation; or allowing local governments to impose a tax. Rep. John Dougall, House chairman of the Revenue and Taxation Committee, also is pushing for a gas-tax overhaul. Each one of the concepts has its drawbacks, lawmakers agreed. For example, mileage-based fees would affect rural residents unfairly, said Rep. Ben Ferry, R-Corinne. Sen. Ed Mayne said that counties have shown they are willing to increase sales tax for transit, an option the West Valley City Democrat said his constituents prefer because they don't feel them as much as fuel taxes. But that attitude only contributes to a growing dependence on General Fund taxes to pay for transportation at the expense of education and other state needs, said Utah Taxpayer Association representative Royce Van Tassell. Because consumers don't automatically make the connection between buying sunglasses and paying for transportation, they see no incentive to change their driving habits to reduce congestion, which is a prime reason for highway construction. Harper told the committee he would pare the options before crafting a bill to get some kind of fuel increase during the 2008 legislative session. This year, Harper tried unsuccessfully to lower the state's flat fuel tax from 24.5 cents per gallon to 15 cents per gallon. An "indexed" tax based on the wholesale cost of fuel ultimately would have incrementally raised the fuel tax to 28 cents per gallon.
LAWMAKERS TO DISCUSS 1872 LAW REFORM ATLANTA, Idaho - A small plane dodging wildfire smoke over Idaho's Rocky Mountains affords a view of an unnatural wonder few hikers ever see: Huge open pit mines. Jim Kuipers, a former mining engineer-turned-industry critic, and Montana environmentalist Bonnie Gestring, offered a sky tour a week before a U.S. House subcommittee tackles a long-standing beef of American environmentalists. Lawmakers will discuss a bill to dismantle the General Mining Act of 1872, signed by President Ulysses Grant to help develop the West's mineral deposits in the 19th century, but unchanged since. Under the law, private companies haven't paid royalties to taxpayers for an estimated $245 billion worth of minerals extracted from public lands in the last 135 years. It also allows companies to buy public land for as little as $5 an acre. And it elevates mining's importance above other uses of public land, making it difficult for agencies like the U.S. Forest Service to deny any mine applications, environmentalists say. Democrats won Congress last November, so reform efforts have gained momentum. Rep. Nick Rahall, D-West Virginia, and chairman of the House Natural Resources Committee, is its sponsor and aims for a vote by December. The wild card, however, is U.S. Sen. Harry Reid, the Democratic majority leader from Nevada. A gold miner's son, Reid waxes sentimental about his hard-rock roots - and has stifled efforts to revamp the 1872 law before. So last week, Kuipers and Gestring chartered a plane from a Colorado nonprofit, Ecoflight, to tour sites deep in Idaho's forested public lands they call ''poster children'' for why changes to the 1872 law are overdue. ''What's needed is a comprehensive system of environmental standards and reclamation criteria, so our public lands are adequately protected,'' said Gestring, of the Missoula, Mont.-based Earthworks. Still, mining is worth $5 billion yearly to Nevada and industry is wary. Reid got more than $100,000 in campaign contributions from mining interests between 2001 and 2006, according to the Center for Responsive Politics. Given these realities, most say Rahall's bill will be altered - if it's to become law. ''Congressman Rahall's bill represents a good start to the debate, but certainly we have a long way to go,'' Reid told The Associated Press via e-mail. Rep. Jim Costa, D-Calif., and co-sponsor of Rahall's bill, said after next week's hearing, he'll meet with Reid in Elko, Nev., on Aug. 21 for another public meeting and a separate tour of hard-rock mines. ''Unless it's a 'motherhood resolution,' where there's no debate, there's always a difference of opinion,'' Costa said in an interview. ''Anything that involves making changes - especially when there haven't been any changes since 1872 - is difficult by definition.'' From the passenger seat of the Cessna 210 over Idaho, Kuipers points toward 3 o'clock. Bruce Gordon, the pilot, does a tight circle as the Stibnite Mine, an open-pit gold mine once run by Mobil Oil, emerges from the haze. Shuttered for a decade, groundwater here still has some of the highest concentrations of arsenic in the nation, according to the U.S. Forest Service. Thirty miles to the southeast, the Grouse Creek Mine is perched on a mountaintop industrial site. Coeur d'Alene, Idaho's Hecla Mining Co., is investing $40 million into cleanup and says the effort will continue for years. And above the 40-soul hamlet of Atlanta, Idaho, a Forest Service-owned hillside is etched with roads, tailings and shafts from mining since 1863. A Canadian company wants to build a new $40 million, cyanide-leach mine to capitalize on gold prices hovering at $680 an ounce - more than double 2000 prices. Boise, 100 miles to the west, gets a fifth of its drinking water from the Boise River that's fed by tributaries near the proposed Atlanta mine. Mayor Dave Bieter pushed a resolution opposing it. ''Unfortunately, the resolution was largely symbolic,'' Bieter said this week. ''Antiquated federal regulations don't give enough consideration to the potentially negative effects of mining operations on the environment and livability of downstream communities.'' But with Bieter and environmentalists on the offensive, mining companies are leery of Rahall's plan, dubbing it unofficially ''The No-More Mining Act of 2007.'' Some changes in the 1872 law are needed, they say, but an 8 percent royalty would drive the U.S. industry to financial ruin. ''We have to be cost competitive,'' said Carol Raulston, spokeswoman for the National Mining Association in Washington, D.C. ''We want to pay more to the government. But sooner or later, you have to ask, 'Have we come to a tipping point when it's no longer feasible to mine in this country?' " Atlanta Gold officials didn't immediately return phone calls. But Hecla Mining's CEO Phillips Baker said many mining companies have acted responsibly under the existing law. ''We've spent about $40 million in closure costs and reclamation [at Grouse Creek],'' Baker said. ''Within Idaho, since 1969, there has not been a company that has started a mine and closed it where taxpayer money has been required. I would say we've had an extremely effective system of monitoring and regulating the opening and closing of mines in the state of Idaho.'' Environmentalists counter that money paid by companies to remediate mining pollution on public land won't be enough to cover future catastrophes, in Idaho or elsewhere. They point to cleanups in states including Montana, where estimated remediation costs at an open-pit complex near Ft. Belknap exceed the company's bonds by $33 million. The West has changed, they say; so should the 1872 mining law. ''The 1872 mining law was written to help promote the development of the West,'' said John Robison, of the Idaho Conservation League that's fighting the Atlanta mine. ''As you can see, the West has already been developed.'' "Anything that involves making changes - especially when there haven't been any changes since 1872 - is difficult by definition." Rep. Jim Costa,California Democrat. . INDEX POINTS TO STRONG ECONOMY FOR UTAH Utah's robust economy continued to strengthen in June, according to a monthly gauge of business conditions issued today by Creighton University. The university's Utah business condition index advanced to 68.2 from May's already-vigorous reading of 65.4, indicating strong economic growth in the coming months, Creighton economist Ernie Goss said. Job growth in the state continued at a brisk pace in June. Goss said the pace will slow in the months ahead, but is expected to outpace the nation by a healthy margin. The report is based on a survey of corporate purchasing managers. The index ranges from zero to 100. An index number greater than 50 indicates that there will be economic growth in the months ahead, while an index number less than 50 demonstrates economic weakness. DEFICIT RUNS MUCH LOWER SO FAR THIS BUDGET YEAR The federal deficit is running sharply lower through the first nine months of this budget year as the growth in revenues continues to outpace spending growth. The Treasury Department reported that the government ran a surplus of $27.5 billion in June, up sharply from the $20.5 billion surplus recorded in June 2006. The government normally runs a surplus in June, a month when individual taxpayers and corporations make quarterly payments to the Internal Revenue Service. With the June surplus, the total deficit through the first nine months of the budget year, which began Oct. 1, is $121 billion, down 41.4 percent from the same period a year ago, when the deficit totaled $206.5 billion. The Bush administration this week announced a new deficit projection for this year of $205 billion.
U.S. TRADE DEFICIT RISES TO ITS SECOND-HIGHEST LEVEL OF YEAR America's trade deficit rose to its second-highest level of the year as the price of imported crude oil jumped and demand for Chinese products remained strong despite recalls of tainted products. The Commerce Department reported that the deficit for May rose to $60.04 billion, 2.3 percent more than in April. Most of the deterioration in the trade balance reflected a big increase in the foreign oil bill, which swamped record sales of U.S. products abroad. The Bush administration said the continued rise in exports validated President Bush's campaign for free trade deals and his opposition to raising import barrier.
JOBS APLENTY IN UTAH; EMPLOYERS YEARN FOR WORKERS Debbie Jacketta is a small-business owner with dreams of expanding. But like other employers in Utah's super-tight labor market, she has put any ambitious growth plans on hold because there are simply not enough workers to go around. There is no shortage of job creation in Utah, as the state continues to lead the country in that labor category, with employment growth of 4.5 percent for the year that ended in June, the Utah Department of Workforce Services reported. No. 2 is Arizona, which is creating jobs at 3.4 percent. The national average: only 1.4 percent. The trick comes in finding quality, available workers for those jobs. Although the tight labor market is a good thing for workers, who can more easily switch jobs and command higher salaries, many employers are having difficulty hanging on to the workers they've got - let alone hiring any more. Jacketta, owner of Jacketta Sweeping Service in West Valley City, said she has a hard time finding and keeping people who can drive her large trucks that clean streets and parking lots along the Wasatch Front. She has raised wages to remain competitive, but even so, she said she has lost several employees over the past year to larger companies with better benefits. As a result, she said she's been forced to lower her expectations. "I'm putting up with a lot more [from employees] than I used to," she said. "And you do anything you can do to keep employees happy. If someone comes in late or doesn't show up, for example, in the past I might have just let them go. Now I try and work with them." She said her company could expand further if she could find even just a few more workers to hire. But she can't, and that's a situation that is not expected to change for Utah employers anytime soon. Utah's job growth peaked at 5.4 percent in June 2006 and was expected to gradually decline. Although it has, the rate has unexpectedly remained right at 4.5 percent since January. "And we expect it to remain this high, at least through the end of the year," Mark Knold, chief economist for Workforce Services, said. In all, about 55,100 jobs have been created in the Utah economy in the past year, raising total employment to 1.27 million. That's an average of nearly 4,600 new jobs in the state per month. Utah's unemployment rate was 2.6 percent in June, down even more from the super-low 2.9 percent in June 2006 and well below the national average of 4.5 percent. Economists generally consider Utah to be in a state of "full employment," which means that virtually anyone who wants a job can find one. Only about 35,300 Utahns were unemployed in June, compared with 38,100 in June 2006. Knold said many employers are still able to find workers in Utah by drawing from other states, especially those with more people in need of a job. Companies also are offering bonuses to employees who refer job applicants who are hired, as well as giving signing bonuses and bonuses to employees who remain for a specified amount of time. Portland, Ore.-based Regence BlueCross BlueShield, which has operations in Utah, Idaho, Washington and Oregon, is one of many employers that offer cash incentives to employees who recommend people who end up getting hired. "We're encouraging our own employees to be recruiters," said Ryan Reeder, Regence human resources manager. The company also has been trying several other strategies, such as advertising its on-site day care to potential employees - especially working mothers. Reeder said positions paying a variety of wages are hard to fill right now. There is a shortage of lower-paid customer service employees, as well as higher-paid information technology and actuary positions.
BUILDERS' EXPECTATIONS LOWEST SINCE JANUARY 1991 A key measure of industry sentiment on the U.S. market for new homes fell to its lowest point in more than 16 years, a trade group said, as builders struggled with rising inventories of unsold houses across the country. The National Association of Home Builders/Wells Fargo housing market index, which tracks builders' perceptions of current market conditions and expectations for home sales over the next six months, fell to 24 this month, the lowest reading since January 1991, the NAHB said. Index ratings higher than 50 indicate positive sentiment about the market. The seasonally adjusted index has been below 50 since May 2006. New homes represent about 15 percent of total home sales. Last week, the National Association of Realtors projected new home sales would rise slightly next year, but still remain below 2006 levels.
BERNANKE: ECONOMIC GROWTH WILL BE SLOWER DUE TO HOUSING SLUMP WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress today that the economy has emerged from its anemic spell, but overall growth for the year will be lower than expected. Inflation remains the chief concern, he said. Delivering a midyear Fed economic report to Capitol Hill, Bernanke struck a somewhat cautious tone. He suggested that the economy appears likely to expand "at a moderate pace" over the second half. Still, the Fed chief told the House Financial Services Committee that growth this year will be a bit slower than the Fed projected in February. Growth should strengthen a bit next year, he said. The inflation forecast, however, wasn't changed. It calls for prices other than food and energy to edge lower. Against this backdrop, the Fed is likely to leave interest rates where they are through the rest of this year. For just over a year, the Federal Reserve has held a key interest rate at 5.25 percent, providing a period of stability to borrowers. Before that, the Fed had boosted rates for two years to fend off inflation. Bernanke took pains Wednesday to hedge the Fed's bets and outline risks to the economy. One risk is that energy and commodity prices could continue to rise sharply, boosting the prices of lots of other goods and services and thus spreading inflation through the economy. The Fed "has consistently stated that upside risks to inflation are its predominant" concern, Bernanke said. Gasoline prices, which peaked in May, receded somewhat in June and are now up past $3 a gallon. Overall consumer prices calmed down in June, the government reported Wednesday. They rose by just 0.2 percent - the smallest increase in five months. Another risk is that the housing slump could turn out worse than expected, sapping consumer spending and possibly causing overall economic growth to be weaker. The housing market will remain sluggish for some time, partly because of some now tighter lending standards and the recent rise in mortgage rates, Bernanke said. Even if the demand for housing were to stabilize somewhat, the pace of new home building will probably fall as builders work down excess stocks of unsold homes, he said. "Thus declines in residential construction will likely continue to weigh on economic growth over coming quarters, although the magnitude of the drag on growth should diminish over time," Bernanke said. Bernanke also outlined efforts by regulators to deal with problems in the market for risky mortgages. Those are mortgages made to people with spotty credit histories. Foreclosures and delinquencies for these "subprime" mortgages have spiked. Some big subprime lenders have been forced out of business. Borrowers and lenders have been clobbered by rising interest rates and weak home values. Congress has blasted the Fed and other regulators for not doing enough to crack down on lax lending standards, which had contributed to the problems. "Rising delinquencies and foreclosures are creating personal, economic and social distress for many homeowners and communities - problems that likely will get worse before they get better," Bernanke said. To better protect consumers, the Fed is looking at ways to improve mortgage disclosure and ways to curb unfair or deceptive lending practices. It also is encouraging lenders to work with troubled homeowners. In new economic projections, the Fed expects the economy to grow between 2.25 and 2.50 percent, as measured from the fourth quarter of last year to the fourth quarter of this year. That's lower than the old forecast of 2.5 percent and 3 percent. For 2008, the economy should pick up and expand between 2.50 and 2.75 percent. "Core" inflation, meanwhile, should increase by 2 percent and 2.25 percent this year, the same as the previous projection. Core inflation excludes the more volatile categories of energy and food. The unemployment rate - currently at 4.5 percent - could rise as high as 4.75 percent this year, which would still be considered relatively low by historical standards. That's also unchanged from the Fed's old forecast.
CHINA'S ECONOMY GROWS 11.9 PERCENT IN Q2 BEIJING - China's gravity-defying economy still can surprise even its most bullish observers. Output grew at its fastest rate in 12 years during the three months ending in June, expanding by an eye-popping 11.9 percent over the year-earlier period and exceeding the most aggressive forecasts, according to government data reported. ''The GDP growth numbers caught just about everyone by surprise,'' said Stephen Green, a Standard Chartered economist. The figures put China on track for a fifth straight year of double-digit growth and to overtake slower-growing Germany as the world's third-largest economy. The government said it would take steps to control the boom but a spokesman gave no details. Communist leaders want fast growth to reduce poverty but are trying to cool some industries, where they worry that runaway investment could push up inflation or ignite a debt crisis if borrowers default. They have raised interest rates four times since April 2006 and imposed investment curbs on some industries. Inflation also rose, with consumer prices climbing by 4.4 percent in June. The economy also was under pressure from a swollen trade surplus and high energy consumption, the National Statistics Bureau said. Second-quarter growth was the fastest since the final quarter of 1995, when the economy expanded by 12.5 percent, according to economist Mingchun Sun at Lehman Bros. in Hong Kong. ''The key question is, how sustainable is all this? And the rhetoric in Beijing suggests the authorities think it is sustainable,'' Green said. Analysts raised their growth forecasts for the full year to as high as 11.5 percent, up from earlier estimates that ranged from 9.5 to 10.5 percent. The rise in consumer prices, lifted by a 7.6 percent jump in food costs, is above the official target of 3 percent.
ECONOMY IS GROWING MODESTLY WASHINGTON - The economy registered modest growth in the early summer, considering how consumers and some businesses were buffeted by both high gasoline prices and the sour housing market. That's the gist of a Federal Reserve region-by-region survey, released Wednesday, which also showed the economy clearly has emerged from a rut at the beginning of the year and is now growing, albeit slowly. On the inflation front, consumer prices continued to increase ''at a moderate rate,'' the Fed report said. ''Almost every region said that oil and gasoline prices were either The housing slump, which started last year, continued to be felt in most areas. Most regions said home building declined and residential real-estate activity was weak. New York, however said housing markets were ''mixed but stable.'' Reports on home prices around the country were mixed, the Fed said. It said the nation's real estate slowdown has expanded to include housing markets that had "remained hot into early 2007" - such as parts of Utah and Idaho. However, the Fed said, prices have continued to rise in areas where local economic conditions remain strong. In Utah, with the strongest employment growth in the country, home sales are down this year compared with last year. But prices in most areas are still up compared with a year ago. Fed Chairman Ben Bernanke told Congress last week that he expects the economy to grow gradually through the course of this year and to strengthen a bit next year. He said that inflation remains the chief concern. The biggest threat to the economy is if inflation doesn't recede as Fed policymakers anticipate, Bernanke explained, when he delivered the Fed's midyear economic assessment to Capitol Hill. Information from the Fed survey will figure into discussions at the central bank's next meeting, Aug. 7. Economists predict that the Fed at that time will again vote to hold a key interest rate at 5.25 percent, where it has stood for more than a year. Consumer spending - a major shaper of overall economic activity - continued to grow in the early summer. However, a number of Fed regions reported that high gas prices restrained purchases. And, five of the Fed's 12 regions said that retail sales of housing-related items - such as furniture and home repair materials - were weak or declining. Tourism reports, meanwhile, were mostly positive. Employment, meanwhile, continued to increase ''in most locations and in many sectors of the economy,'' the Fed said.
LABOR COMMISSION TO ADOPT NEW FEDERAL MINIMUM WAGE LAW The Utah Labor Commission plans to adopt the new federal minimum wage law. It has been 10 years since there has been an increase in the federal and Utah minimum wage rates, with both rates during that time remaining at $5.15 an hour. Because of new federal legislation, the federal minimum wage rate has increased and will be carried out in three increments, beginning July 24 with a 70 cent hike, making the new rate $5.85 an hour. "Utah statute requires the Labor Commission to review the state minimum wage law whenever a change occurs in the federal minimum wage law," said Commissioner Sherrie Hayashi. "Because of this mandate and the new federal minimum wage law, the Commission promulgated changes to the Utah minimum wage rules through the state administrative rule-making process. These rule changes, mirroring those of the federal government, become final and effective Sept. 8." The minimum wage rate changes are: The new federal and Utah minimum wage laws leave unaffected the cash wage obligation of $2.13 an hour that is owed to tipped employees and the training wage rate of $4.25 an hour for minor employees during their first 90 days of employment with a single employer. A "tipped employee" is one who customarily and regularly receives tips, who is not a chef, janitor or dishwasher, and who receives at least $30 a month in tips. The new Utah minimum wage rates will apply to a tipped employee's wages where the employer is permitted to credit the employee's tips toward the effective minimum wage rate after paying the employee the cash wage obligation of $2.13 an hour. If the cash wage obligation, plus tips, falls short of the minimum wage during a pay period, the employer must pay the difference. Employers may choose to pay more than $4.25 an hour to minor employees during their first 90 days of employment, but after the 90 days, minor employee are entitled to be paid wages at the new minimum wage rates. Return to Top of Page MINE BREATHES SIGH OF RELIEF
AS DANGER WANES The chief executive of a coal mine endangered by a wildfire north of Price praised firefighting crews for keeping the blaze away from his operation and the potentially explosive methane gas it emits. "These fire brigades have just done an incredible job . . . and the winds have worked to their favor," Bruce Hill, who runs UtahAmerican Energy's operations in Utah, said of efforts to keep the Mathis wildfire away from bore holes in the Book Cliffs used to vent methane released from the underground Aberdeen Mine. "They have a very good fireline established on the east side of the fire, which is the direction it would head if it came in our direction," Hill added. "I've been very impressed. It's been a very coordinated effort." Sparked by lightning on Friday, the Mathis wildfire was designated the No. 1 priority blaze in the West because of the threat it posed to the Aberdeen Mine, a field of coalbed methane wells farther to the north and a power line that services both industrial sites. It grew to more than 1,730 acres, breaking out of its containment on the north side, opposite from the mine. Working with 15 engines, two bulldozers and five helicopters, the 290 firefighters assigned to the blaze continued to build fire breaks to keep flames away from the power line and de-gassing wells. By evening, the fire was 40 percent contained, said Mary Christensen, spokeswoman for the incident command team fighting the Mathis fire. The power line has been a major concern. If it were knocked out, the mine would lose the electricity needed for its expansive ventilation system and water pumps. "That mine produces 11 million cubic feet of methane gas per day," Christensen said. "If the power is cut off to the mine, then the ventilation system goes down and you have a big issue. One little spark and you're looking at a mine explosion." Hill said his level of concern was down from last weekend. The company brought in three of its own bulldozers to help build fire breaks. Two ridges separate the mine's de-gassing wells from the blaze, and fire lines have been cut on both sides of the canyon between those ridges, he noted. Work proceeded "as usual" at the mine, although evacuation plans are in place. Sam Quigley, who oversaw the Aberdeen Mine before it was sold by Andalex Resources Inc. to UtahAmerican Energy's parent company, was just as impressed as Hill by the performance of the wildfire crews. "Watching these firefighters in action just took my breath away," said Quigley, now industry coordinator at the College of Eastern Utah's Western Energy Training Center, which is being used as the command post for fighting the blaze. "The terrain is incredibly rugged and steep. They have backpacks on, it's 100 degrees and the heat coming off the fire is adding to that," he added. "I've never been so impressed with a group in my whole life."
KENNECOTT LAND CELEBRATES Kennecott Land and its contractors at Daybreak are pleased to announce that more than one million hours have been worked without a lost time injury. Kennecott Land employees and contractors have worked these hours at Daybreak to prepare the infrastructure for the community and homebuilding. Kennecott Land has 17 contractors who support safety first including Harper Excavation, Sahara Construction, Inc., ValleyCrest, Nolte Engineering and Intermountain Cleaners. "This milestone represents almost two years where everyone was able to come to work and return home without an injury that caused them to miss time from work," said Russell Sanford, Vice President Land Development and Construction, Kennecott Land. "This is a substantial achievement for the entire team and we recognize the strong commitment to working safely in every trade on site." Kennecott Land operates under strict safety guidelines from our parent company Rio Tinto and is one of the safest business units in the global company. "The strong safety standards are the right thing to do because wevalue our employees and contractors, we know that all injuries are preventable and we believe nobody deserves going through the suffering associated with injury," said Sanford. To celebrate this accomplishment, Kennecott Land hosted a luncheon on Friday, July 20, where safety demonstrations and workshops were provided. "By providing training, proper tools, a strong safety culture and recognition, it means that employees are valued and we want them to be safe at work," said Don Whyte, President, Kennecott Land. "There are great personal costs when someone is injured; we take great measures to provide a safe environment onsite." Kennecott Land was also recently recognized for a strong safety record. In 2006, The National Safety Council awarded Kennecott Land the Perfect Record Award for safe practices. For a full year between 2005 and 2006, neither Kennecott Land employees nor their contractors experienced a lost time injury. This is the first acknowledgement in a five-year safety program called the Safety Leadership Award. A Safety Leadership Award is awarded for five continuous years without a lost-time injury. Daybreak is Kennecott Land's first community and is located in South Jordan. Daybreak is situated on 4,126 acres where nearly 14,000 homes are planned. Daybreak offers several amenities such as Oquirrh Lake, the Daybreak Elementary School and Community Center. Daybreak is a walkable community with miles of trails, bike paths and a commitment to significant amounts of open space and parks. Homes at Daybreak represent the architectural history and variety of neighborhoods like Sugarhouse and the Avenues.
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17 MSHA 8-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org 23 UMA ANNUAL CONVENTION, GRAND SUMMIT HOTEL, Park City, Utah - 9:00 a.m. 24 UMA Convention Golf Tournament, Soldier Hollow, Golf Course, Midway, Utah - 8:30 a.m. 29-1 3rd International Mine Rescue Conference and National Mine Rescue Contest, Gaylord Opryland Resort, Nashville, Tenn. For more info. call (202) 693-9470
10 MSHA 8-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, 21 MSHA 8-hour training for Underground Miners, Utah Safety Council, 1574 West 1700 South, Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org 24-26 International Conference on Air Quality, Marriott Crystal Gateway, Arlington, VA. For more info. visit: www.undeerc.org 27-28 MSHA 24-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org
2 MSHA 8-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org 8-10 Coal Market Strategies, Tucson, AZ. For more info. visit: www.americancoalcouncil.org 23-24 MSHA 24-hour training for Metal & Non-Metal Surface Miners, Utah Safety Council, 1574 West 1700 South, Suite 2A, Salt Lake City. For more info. visit www.utahsafetycouncil.org
3-4 Coal Trading Conference. For more info. visit: www.americancoalcouncil.org
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