DNR division heads: Reject massive U.P. land sale

Six division heads within the Michigan Department of Natural Resources have signed a memo to Director Keith Creagh recommending rejection of what would be the largest public land sale in Michigan history: More than 10,000 acres of public surface lands or mineral rights in the Upper Peninsula to a British Columbia-based limestone mining company.

An official with Graymont, however, said he believes the concerns raised by the DNR chiefs can be worked out through further negotiation.

Graymont seeks to create a sprawling, 13,000-acre, open-pit and underground limestone mining operation touching three U.P. counties — Luce, Mackinac and Chippewa. Supporters of the project say it will bring good-paying, long-term jobs to an economically depressed area where young people often have to leave to find work. Opponents say the mine will destroy the beautiful natural setting that drew them to the area.

DNR Forest Resources Division Chief Bill O'Neill said that while the Graymont proposal will be discussed at today's Natural Resources Commission meeting in Lansing, Creagh will not make a decision on the proposal until at least after the commission's Feb. 12 meeting. A public meeting on the DNR division chiefs' recommendation is slated for Jan. 28 in Newberry.

Tuesday's memo to Creagh cites numerous "significant concerns" about the proposed $2.9-million sale, including:

■ Royalty rates that would be paid by Graymont to the State of Michigan, currently set at 18.75 cents per ton of limestone or dolamite quarried, and minimum annual royalty payments.

■ Lack of consideration of timber and non-limestone or dolamite mineral values.

■ Final decision-making authority on land uses and infrastructure such as roads, trails and mining structures.

■ Inclusion of an easternmost land tract in the proposal that state officials do not believe is necessary.

■ Adequate wetland protection and trail easement assurances in one parcel.

■ Failure to agree on a process for land exchanges.

■ Uncertainty involving the scope and timing of economic benefits to local communities.

Tuesday's memo to Creagh was signed by the chiefs of DNR's Wildlife, Parks and Recreation, Fisheries and Forest Resources divisions, as well as Natural Resources Deputy William Moritz and Chief Administrative Officer Mark Hoffman.

P.J. Stoll, plant manager at Graymont's plant in Gulliver, Mich., said the memo "definitely is not a deal-stopper."

"This is a continuing part of the DNR's process, is the way I see it," he said. "We've said all along we support their process. We look forward to continuing to communicate and work with them."

Graymont at one point sought to fully purchase the more than 10,000 acres for the plan, but has since modified its request so that on the largest tract — 7,256 acres near Rexton — the company now seeks only the state's subsurface mineral rights, allowing the state to maintain surface ownership, Stoll said.

O'Neill said it's not unusual for unanimity among department division chiefs on a land sale, but it's also not unprecedented for the director to rule against the recommendation.

"The director takes a lot of information into his decision-making, the recommendation being one of them," he said. "These are public assets, important public ownerships. What the public says really carries a lot of weight."

Area residents supporting the project expressed disappointment in the recommendation to reject the land sale. They see the Graymont offer as a lifeline to an area of very high unemployment and aging residents. Graymont proposes only six jobs at the mine to start, but has long-term plans to possibly build a processing plant there. And residents hope for ripple effects from trucking and indirect jobs.

"Our school systems are desperately in need of young families, opportunities for them to stay, live and work in the area," said Bruce Gustafson of Naubinway.

"This will help us to stop exporting our most valuable resource — our youth. Many of our young people go away and they don't come back, or they don't come back until they retire."

Naubinway resident Richard Pershinske said the proposal would infuse local school systems with new tax revenues.

"From a standpoint of jobs, dollars and opportunities in the area, it's hard to be opposed to it," he said.

But some are. Trout Lake Township resident Kathy English said the mining, trucks and other disruptions will disturb the tranquil life and natural resources that drew many to retire in the area.

"We need as many people at these meetings as possible to speak to the mining issues," she said. "Now is the time to get your feedback to the DNR."

The Michigan Chapter of the nonprofit environmental group Sierra Club praised the recommendation to Creagh to reject the proposal.

"Michigan's public lands like this are too valuable to sell off — and to do so for a few million dollars in short-term benefits would be tantamount to theft," chapter director Anne Woidwode said in a statement. "It's encouraging to see the DNR's top officials recommending against this sale and we urge director Creagh to put a permanent halt to this ill-conceived proposal."

Contact Keith Matheny: 313-222-5021 or kmatheny@freepress.com.









Learn more and sound off on Graymont proposal

A British Columbia-based limestone mining operation proposes to buy more than 10,000 acres of surface land or subsurface mineral rights from the state of Michigan to create a vast, 13,000-acre limestone mining operation.

The public can sound off on Michigan Department of Natural Resources' division chiefs' recommendation that the land sale be rejected at a meeting from 6-8:30 p.m. Jan. 28 at the Tahquamenon Area Schools high school auditorium, 700 Newberry Ave., Newberry.

For more information on the project, visit www.michigan.gov and search "Graymont."

To comment on the proposal, e-mail DNR-GraymontProposalComments@michigan.gov or send by mail to:

Michigan DNR

Roscommon Customer Service Center

Attention: Kerry Wieber

8717 N. Roscommon Road

Roscommon, MI 48653