BMG pressures WA Gov Locke

Battle Mountain goes to top in gold fight

February 8, 2000

By Becky Kramer, Staff writer

Legislators from Northeastern Washington hope to enlist Gov. Gary Locke's help in a fight over water rights for the state's first large, open-pit gold mine. The legislators have arranged a Thursday meeting between Locke, Department of Ecology Director Tom Fitzsimmons and officials of Battle Mountain Gold Inc.

Discussion will center around a recent decision by the Pollution Control Hearings Board to revoke water rights for the Crown Jewel Mine, which Battle Mountain Gold wants to build near Chesaw, Wash.

Legislators want the DOE -- which approved the water rights -- to appeal the hearings board decision.

"Battle Mountain Gold has been trying to satisfy the state of Washington to the tune of 12 years and $80 million," said Rep. Bob Sump, R-Republic. It's unfair that years of permitting work can be overturned by a three-member, non-elected board, he said.

"I think Ecology needs to back them up," said Rep. Cathy McMorris, R-Colville.

Battle Mountain Gold planned to begin building the open-pit gold mine next year, but can't without water rights. The Houston company is considering an appeal of the water rights decision.

"One possibility would be to do a joint appeal with the Department of Ecology," said Les Van Dyke, director of investor relations for the company.

Both the water rights and a water quality permit issued by Ecology were challenged by environmental groups. They argued that the mine would impair water rights for downstream ranchers and farmers.

In its decision last month, the state Pollution Control Hearings Board agreed.

The governor hasn't taken a position on the issue, said Carol Jolly, Locke's policy adviser on natural resources.

Neither has Fitzsimmons, said Ecology spokeswoman Joye Redfield. Staff attorneys are still reviewing the Pollution Control Hearings Board decision, she said.

The Crown Jewel mine would create 150 jobs in economically depressed

Okanogan County during its 10-year life . However, bitter divisions over the mine have led to years of legal battles.

"Basically, we're in a war up there," Van Dyke said.

The water rights challenge was brought by the Okanogan Highlands Alliance, the Confederated Tribes of the Colville Reservation and the Washington Environmental Council.

Environmental groups are urging Locke to let the hearings board decision stand.

In related news, Battle Mountain Gold has written its entire $80 million investment in the Crown Jewel Mine off of its books.

The company's joint venture partner -- Crown Resources Corp. of Denver -- also may write off its $14 million investment in the mine.

The write-off is an accounting move that reflects current uncertainties about the project, Van Dyke said.

Battle Mountain Gold wrote off half of the project's value last year; the remaining $35.9 million was written off last week.

•Becky Kramer can be reached at (208) 765-7122, or at beckyk@spokesman.com

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Tell Governor Locke know that clean water is more important than short term destructive gold mine.

Ecology should NOT appeal the PCHB's ruling.

Please call, write and/or email Governor Locke

Office of the Governor

PO Box 40002

Olympia, WA 98504-0002

phone: 360-902-4111, legislative hot line 1-800-562-6000

fax: 360-753-4110

email: governor.locke@governor.wa.gov

You could also let the Director of Ecology know how you feel about the mine.

Tom Fitzsimmons, Director of Ecology

Department of Ecology

PO Box 47600

Olympia, WA 98504-7600

phone:360-407-7001

fax: 360-407-6989

phone: 360 407-7001, fax: 360-407-6989

email: tfit461@ecy.wa.gov

Okanogan Highlands Alliance

PO Box 163

Tonasket, WA 98855

phone/fax 509/485-3361

email: kliegoha@televar.com

website: http://www.televar.com/~kliegoha

"Pure water is more precious than gold!"

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