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page 2 - S. 59 Lands Hearing 



a civil lawsuit in 1964 for damages and injunctive relief when I 

 exercised my right to perform annual assessment work while the 

 dispute was pending. See Attachment No. 1 entitled "Overregula- 

 tion of Mining in National Forests" for more details on the legal 

 issues. 



It becairae apparent that I would have to move the milling operation 

 onto the adjacent BLM land if I were to avoid a further dispute 

 with the Forest Service. Application was made to the Department 

 of the Interior for the identical process to be undertaken on the 

 BUVi managed land. They reviewed the application and returned a 

 favorable approval within two weeks. They generally required the 

 same reclamation requirements as the Forest Service but without 

 the inhibiting restrictions. See Attachment No. 2 for more details 

 on the BLM approval . 



The BIM has historically shown a more knowledgeable capacity for 

 management of the surface resources of mining property in Nevada. 

 My problem with the Forest Service is not an isolated case. 

 Attachment No. 3 is a letter to Senator Hecht from the Executive 

 Director of the Nevada Mining Association, Mr. Robert E. Warren. 

 It will elaborate on the subject and explain in more detail the 

 circumstances which have caused the problem. 



It would appear the only meeins available to ensure a successful 

 milling operation will be to mill the ore outside of the forest 

 boundary. Now comes the land interchange bill which originally 

 proposed inclusion of the required BUVI land within the Forest 

 System. I am requesting Congress to exclude this area from the 

 interchange in order that I may avoid the hardship of a renewed 

 conflict with the Forest Service over the mill location. 



The Pine Grove project includes four stages of heap leach milling. 

 These stages are dependant on the availability of the ore reserves 

 and the appropriate space for processing. They may be listed as 

 follows with the item numbers indicated on the Attachment No. 4 

 map as alternate milling locations i 



1. 500 ton pilot heap leach for test purposes. 



2. 100,000 ton heap leach of proven dump ore. 



3. 1,000,000 ton heap leach of indicated reserves. 



4. 30,000,000 to automated plant for possible reserves. 



I understand Senator Hecht has already proposed exclusion from 

 S. 59 the 1,700 acres of land which will be needed to mill those 

 items of ore that may be transported by existing roads. I am 

 hereby requesting an additional amount of 2,900 acres to allow for 

 a future large-scale expansion as described by Item No. ^. It 

 would be more cost effective to locate the milling operation for 

 this large amount of ore where the transpotation could be handled 

 in a straight line gravity flow from source to destination. The 

 additional area will also be used to transport water from other 

 sources. 



