Non-Metallic Mining and Bankruptcy

Transcription

1 Wisconsin Land and Water Conservation Annual Meeting Osthoff Resort, Elkhart Lake, WI March 16, 2017 Non-Metallic Mining and Bankruptcy Land Use and Resource Management Department Walworth County Land Use and Resource Management Department Fay Amerson, Urban Conservation Specialist Shannon Haydin, Deputy Director/County Conservationist

2 B.R. Amon & Sons B.R. Amon & Sons operated 8 active mining sites in Walworth County in Three (3) mining sites were owned and operated by BR Amon Richmond, Potters, Williams Bay One (1) mining site was Co-owned with Mann Brothers Whitewater Limestone Four (4) mining sites were leased by BR Amon and Sons. Junker, Whelan, Wilson, Friemoth All mining sites operated under a County Nonmetallic Mining Reclamation Permit, a County-approved reclamation plan, and were covered with reclamation bonds, exclusively in favor of Walworth County, except for one. The reclamation bond for the Whelan mining site, a leased site, was in favor of Whelan and Walworth County.

3 Signs of Problems LURM received cancellation notices (90 day) for reclamation bonds covering 4 mining sites on or about 1/10/2013. Tom Amon submitted letter on 2/18/2013, stating he was in the process of securing new reclamation bonds. Rumors --- other Counties, property owners with leases with Amon were contacting the County. More rumors. Federal bankruptcy notice.

4 Pro-active Commenced communication directly with the bonding company, Hanover Insurance. County submitted formal claims to 4 reclamation bonds on March 25, 2013.* Land Conservation Staff conducted site inspections of all Amon- operated mining sites. Prepared reports. Documented inspection findings regarding status of mining activity, environmental issues and reclamation needs. * Hanover and Receiver renewed the reclamation bonds.

5 Bankruptcy Vs. Receivership Jurisdiction: Bankruptcy proceedings are conducted Federal Court. Receivership proceedings conducted in a Circuit Court. A Receiver is appointed by the Circuit Court and is an officer of the Court. The BR Amon Receivership matter was assigned Case No. 13CV 363.

6 Receivership Amon Land Company become subject to a Wisconsin Stats. Chapter 128 proceedings in April 2013 The Walworth County Circuit Court appointed Ronald Carlson, as the Receiver over the property. The Receiver s job was to sell or transfer interest in all real property, including the 8 mining sites in Walworth County and the materials stockpiled on the mining sites. Walworth County Staff contacted the Receiver.

7 Discovery Abundance of stockpiled imported materials, processed and unprocessed asphalt, concrete, shingles

8 Discovery Environmental problems on two sites related to storm water runoff. Potters and Williams Bay Pit

9 Discovery Mining outside the approved area on two sites. Whelan Richmond

10 Discovery Failure to complete reclamation and general lack of contemporaneous on most sites. Potters Williams Bay Junker

11 Discovery Reclamation Bonds were insufficient to conduct reclamation on 6 sites. (Junker, Williams Bay, Richmond, Potters, Friemoth, Whelan) All mining sites had mineral reserves, but one. Potential operators of the mining sites were contacting LURM. The Receiver wanted to sell the mining sites and transfer the leases to the highest bidder and he wanted to find good corporate citizens for Walworth County.

12 Building a Process to Reclaim The First Test 1. Determine reclamation needs on each mining site. 2. Estimate cost to conduct mining on those areas in need of reclamation. 3. Develop procedure County issues Reclamation Orders to Receiver and property owner Insurance company releases funds from bond to County. Receiver and property owner select a contractor to complete reclamation. County approves reclamation plan, monitors reclamation for compliance and certifies completion of reclamation. Receiver or property owner submits survey of reclamation and invoice for reclamation completed. County issues funds to Receiver or property owner for completed reclamation. 4. Walworth County Finance Committee approves the procedure. 5. Settlement Agreement and Release signed by County, Receiver, the property owner, and the Insurance Company.

13 Reclamation Orders- The First Test Whelan Pit

14 Reclamation Orders

15 Settlement Agreement and Release

16 Whelan Reclamation Plan was developed for the areas subject to the reclamation order and County-issued an approval letter to proceed the reclamation.

17 Whelan

18 Whelan IT WORKED! Reclamation Complete and Successful.

19 The Next Four Walworth County Finance Committee, approved using the same process authorizing LURM Department to use the same process for reclamation for the other mining sites. Williams Bay Pit

20 Summary of Amon Sites Subject to Reclamation Orders

21 Williams Bay

22 Richmond

23 Richmond

24 Richmond

25 Potters

26 Potters

27 Potters

28 Friemoth

29 Friemoth

30 Friemoth Reclaimed for Agricultural Use

31 Friemoth

32 Where we are today? Reclamation, is complete on the 5 mining sites. Walworth County issued certificates of complete reclamation on the 5 sites and funds have been distributed to the Receiver (or property owner) The 8 mining sites have new operators. 1. Reclamation permits transferred to new operators. 2. Reclamation plans updated or revised. 3. New or replacement financial assurance approved. The new operators of the 3 mining sites, not subject to the reclamation orders, took on all of the reclamation responsibility.

33 Lessons Learned Assume every operator could be in this position. Conduct inspections of mining sites often. Review financial assurance often and require adjustments, when needed to cover the cost of reclamation, should the operator fail to do so. Be sure financial assurance includes language to notify the County 90 days prior to cancellation of a bond. Require interim or contemporaneous reclamation--- it is the law! When problems are discovered, bring in the WDNR immediately. This is their program. Engage County Corporation Counsel.

34 Post Reclamation Use- Zipline!

35 Post Reclamation Use- Zipline!

36 Post Reclamation Use- Zipline!

37 Post Reclamation Use- Zipline!

38 Post Reclamation Use- Zipline!

39 Post Reclamation Use- Zipline!

40 Post Reclamation Use- Zipline!

41 Post Reclamation Use- Zipline!

42 Questions?