Local Coalition Files Appeal to Protect Tucson and Southern Arizona Water Supplies

(Tucson, Ariz.) A diverse coalition of southern Arizonans charged today that a key water quality permit will allow Rosemont Copper Company to pollute area groundwater supplies with mercury, arsenic, lead and other dangerous contaminants —without oversight or consequence—for at least two years after mining operations begin.
 
The coalition cited this two-year loophole, as well as other 18 other critical issues in their appeal of the Arizona Department of Environmental Quality's (ADEQ) April 10 decision to issue an "aquifer protection permit" to Rosemont Copper. The Pima County Board of Supervisors unanimously approved a separate appeal on May 8.
 
Although the permit is supposed to ensure that Rosemont Copper uses the best available technology to control ground water pollution, and that any contaminants in the ground water do not exceed state Aquifer Water Quality Standards, the individuals and organizations appealing the ADEQ decision maintain that it doesn't come close to accomplishing its stated purpose.
 
“ADEQ’s lax standards used to issue the so-called 'aquifer protection permit' fail miserably to ensure that our ground water will be adequately protected,” says lead appellant Gregory Shinsky. Shinsky and his wife Carol built a home in the Empire Mountains 2 miles from the proposed project site.
 
In addition to the provision allowing Rosemont to pollute area groundwater for two years before ADEQ even considers setting pollution standards, other key issues cited in the appeal include the ADEQ's:
 

• failure to conduct an independent evaluation of the data provided by Rosemont;
• failure to require an adequate number of monitoring wells;
• failure to fully account for mine closure costs; and
• failure to impose discharge limits at the actual source of the pollution.

The appeal also notes that ADEQ did not provide access to all its files related to the Rosemont permit until April 30, despite the fact that the appeal deadline was May 10.
 
The appeal will be heard by the state Water Quality Appeals Board, which is composed of three members appointed by the governor. The board chair, Laurie A. Woodall, has represented Rosemont Copper in a related proceeding. The appeal requests that Ms. Woodall recuse herself from considering the appeal.

The appeal can be downloaded here:  http://www.scenicsantaritas.org/APP_Appeal.pdf

The aquifer protection permit is one of a number of air, water and wildlife protection permits that must be approved before construction can begin on the proposed mile wide, half-mile deep, open pit copper mine planned in the Coronado National Forest south of Tucson.

For Immediate Release: ACC: Foreign Corporate Failures Can Be Concealed

May 2, 2012

Contact:
Frances Causey
520-990-8172
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(Tucson, Ariz) – Although the Rosemont Copper Company has admitted that two of its key officials repeatedly concealed a corporate bankruptcy from Arizona regulators, the Arizona Corporation Commission (ACC) said today that that's just fine with them. Both Donald Clark and Richard Warke were principals in a significant Canadian company that went bankrupt in 1995. When Rosemont submitted its initial application to do business in Arizona in 2005, and for seven subsequent years, they concealed the Canadian bankruptcy.

"Apparently, the ACC believes that what happens in Canada stays in Canada," said Vince Rabago, the former state prosecutor who asked the ACC to investigate the matter on behalf of Save the Scenic Santa Ritas. "The Commission is now saying that anyone from a foreign country who wants to set up shop in Arizona, whether they are from Canada, China, Korea, or anywhere else, can conceal corporate misdeeds so long as they took place overseas. That just doesn't make any sense and it's bad for Arizona."

"The bottom line is that the ACC has now created a loophole in Arizona law and Rosemont is exploiting it," Rabago added. "But the ACC doesn't have the final word. The Attorney General was also asked to investigate whether Rosemont violated Arizona law when it concealed the Canadian bankruptcy, and the AG may not agree with the ACC's 'what happens in Canada stays in Canada' loophole."

The letter from the ACC dated May 1, 2012 can be downloaded here.

The ACC complaint and supporting documents can be found at: http://www.scenicsantaritas.org/complaint.

Respected, National, Bi-Partisan Polling firms find that southern Arizonans believe that the Rosemont Copper’s mine is NOT in the public’s best interests

Earlier this month a national bi-partisan polling team comprised of Fairbank, Maslin, Maullin, Metz & Associates (D) and Baselice & Associates (R) conducted a survey and found that despite the vast amounts Rosemont has spent trying to gloss over the impacts of this massive open pit mine to the region's water resources, environment and economy, southeastern Arizona voters believe this mine is not in the public's best interest and oppose allowing it to go forward.

The memo (click to download) summarizes the results of this survey.

Interestingly, the intensity of opposition to the mine increases after respondents are read a series of arguments BOTH for and against the mine.After hearing those pro and con arguments, southern Arizonans oppose the Rosemont Mine by a 55%-38% margin, and more people are "strongly opposed" to the mine (41%) than show any support for it at all.

These poll results makes it clear that the more southern Arizonans learn about the Rosemont Mine, the stronger their opposition.This poll was commissioned by Save the Scenic Santa Ritas, and other groups concerned about the Rosemont Mine and its potential destruction of one of the mountain ranges that make Tucson and southern Arizona a great place to live and work.

In response to the ADEQ issuing the permit on aquifer pollution standards, Gayle Hartmann, SSSR President, made the following statement:

"ADEQ issuing a permit for Rosemont comes as no surprise. It is unfortunate but true, that, at present, the state Department of Environmental Quality is not an independent body. It is heavily influenced by an extreme state legislature that neither cares about nor understands the damage that this mine would do the water resources of the Santa Cruz and Cienega basins.

Fortunately, receiving this permit does not mean that the mine can begin operation. The mine’s plan of operation is in violation of Federal Clean Air Act and Clean Water Act standards.  The Federal agencies that enforce those acts are much more objective than the state DEQ. Thus, it is very unlikely that the mine will receive the necessary Federal permits."

Recent related news articles:

State OKs key Rosemont permit on aquifer pollution standards
AZ Daily Star - April 11, 2012

Rosemont lands major permit
Green Valley News - April 10, 2012

Rosemont Copper CEO Admits Company Didn’t File Disclosures in Arizona

Press Release: April 2, 2012
Contact: Frances Causey
520-990-8172
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(Tucson, Ariz) – Rosemont Copper CEO Rod Pace is now admitting the company did not disclose a corporate bankruptcy of two of its key officials to Arizona authorities. Pace acknowledged that Rosemont’s parent company, Vancouver-based Augusta Resource Corporation, reported to Canadian regulators that two of its top officers had been involved in a corporate bankruptcy. He claimed, however, that Rosemont is not required to make those disclosures in Arizona.

“The evidence and Arizona law plainly show that such disclosures are required,” said Vince Rabago, attorney for Save the Scenic Santa Ritas (SSSR), which filed the formal complaint last Thursday with the ACC and other prosecutorial agencies requesting an investigation of Rosemont Copper.

“Proper disclosure is the foundation for investor trust,” said Sheila Dagucon, former NASDAQ Vice-President responsible for regulatory activities, and SSSR Board member, now practicing law in Sonoita, AZ. “Corporate disclosure provides the transparency critical to capital formation.”

“When disclosure regulations are ignored, the results can be devastating to investors and the general public, as we too often have seen,” Dagucon added.

Pace’s admission that the bankruptcy was not reported to Arizona regulators came after he had initially denounced the Arizona Corporation Commission (ACC) complaint regarding this concealment as “frivolous.”

“Rosemont initially denied there was a problem, but in subsequent public statements Mr. Pace said that the “matter” had been disclosed in Canada,” said Rabago. “Apparently, Mr. Pace believes that it is okay for Rosemont to tell the truth in Canada but not share that information with Arizona regulatory authorities as required by law.”

The complaint alleges Rosemont repeatedly submitted false disclosure statements to the ACC that did not disclose the bankruptcy of a major Vancouver company involving two of Rosemont’s top officers. The false statements began with Rosemont’s initial incorporation documents and continued for the last seven years.

The ACC complaint follows earlier complaints filed by SSSR last December requesting that U.S. and Canadian securities regulators investigate alleged violations of securities laws in both countries. Pace dismissed that complaint at the time as “mudslinging”.