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Local miner sues feds for $600 million By Paul Fattig CAVE JUNCTION � A local miner seeks $600 million in compensation from the U.S. Forest Service over its 1999 decision regarding his proposed Nicore Mine project in the Rough and Ready Creek drainage. In his lawsuit filed Jan. 22 in the U.S. Court of Federal Claims in Washington, D.C., Illinois Valley resident Walt Freeman charges the agency with taking away his rights to mine and denying him access to his claims, according to deputy clerk Addison Berry. "This is something I never wanted to do," Freeman said. "But I�ve done everything I could conceivably think of. I only had one option: to seek legal recourse against the federal government." The lawsuit was filed by Richard M. Stephens, a Bellevue, Wash., attorney representing Freeman. The case is a property "takings" issue based on the guarantee under the Fifth Amendment to the Constitution that protects the rights of property owners, Stephens said. That amendment covers mining claims filed under the 1872 Mining Law, he said. But members of the environmental community, who have been fighting the Nicore project, say the lawsuit is merely an attempt to abuse the law. Rough and Ready Creek flows out of the Siskiyou Mountains into the Illinois River about eight miles south of Cave Junction. A lifelong local resident who has a degree in mining engineering from the Colorado School of Mines, Freeman originally filed a plan of operations in 1992 to produce stainless steel from the nickel, chrome and iron found in the rusty-red dirt on his mining claims, which cover some 4,360 acres. He had proposed removing 5,000 tons of ore samples from the claims by truck, but then Siskiyou National Forest Supervisor Mike Lunn decided in 1999 that the samples had to be hauled out by helicopter. Lunn, who has since retired, was concerned about the environmental impact in the area known for its rare plants. Lunn also questioned whether Freeman�s proposal was economically viable. Freeman appealed, arguing that the supervisor�s decision was flawed. But a reviewing officer in the agency�s Region 6 headquarters in Portland reaffirmed Lunn�s decision last fall. "We�re very optimistic we can win this," Stephens said. "The amendment was designed to make sure the government doesn�t take property from individuals without paying for it. It�s pretty clear Mr. Freeman has property interests in these mining claims." The $600 million figure reflects the amount that could be mined from Freeman�s roughly 160 claims in the project, Stephens said. "We basically looked at what the value of ore on all those claims was worth," he said. "The Forest Service essentially claims a much smaller amount than the $600 million. But we believe that if there was a smaller amount, then there was also a larger amount. This was kind of the high-end number." The issue is not whether the Forest Service�s 1999 decision was correct, said Stephens, who deals primarily with "takings" cases. "The only question is whether he has a property issue," he said. Forest Service officials had no comment on the lawsuit. "We haven�t seen it yet � our attorneys haven�t had a chance to study it," said Rob Shull, recreational lands and minerals staff officer for the Siskiyou and Rogue River national forests. The lawsuit reflects how the 1872 Mining Law can be manipulated at taxpayer expense, said Steve Marsden, director of the Siskiyou Regional Education Project. The environmental group has been the leading opponent to Freeman�s project. "This is a terrific example of how a very old law is being abused in Southwestern Oregon," Marsden said. The government already has spent a substantial amount studying the project over the years, he said. "Not only did taxpayers have to pay to evaluate this guy�s mining plan in the first place, but now he wants $600 million for something that is not going to happen," he said. Marsden said Freeman is not the only one abusing the law. "These guys get a free ride from taxpayers � a lot of them live on the land and don�t pay property taxes," he said. "The 1872 Mining Law is the biggest welfare act ever created." Grants Pass resident Barbara Ullian, conservation director for SREP, agreed. "This is outrageous in the extreme," she said. "Now he is attempting to mine the pockets of the taxpayers." But Freeman said he would much rather be mining than taking his case to court. "This is a natural and unfortunate continuation of the problems I�ve had with the Forest Service," he said. No court date has been set. The court has jurisdiction over claims seeking monetary judgments against the United States. Reach reporter Paul Fattig at 776-4496 or e-mail him at [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.