Losing that approval wipes out years of work. NMCC Chief Operations Officer Jeffrey Smith said the company has been submitting “baseline data” since 2010. Therefore the cancellation of “technical approval” it gave the company’s mining plan two years ago is a hard blow.
Mining and Minerals Director Jerry Schoeppner sent his “Director’s Order” to Smith on March 31, formalizing the withdrawal of technical approval, also laying out new issues in the “permit review process.”
Schoeppner cited the NMCC’s update to the public, published in the Las Cruces Bulletin December 2019, in which it summarized its water rights acquisitions, which triggered his concern.
NMCC claimed it had 7,500 acre feet a year of water right, contested by several parties in an adjudication court. The Third District judge assigned the case ruled it only had 864 AFY. For more information on that court case, please read: “Water rights are only holdup in New Mexico Copper Corporation’s start-up of mining operations.”
The case is on appeal, but judges have not been assigned and no court date has been scheduled.
NMCC’s update also stated it acquired 3,000 acre feet from the Jicarilla Apache Nation in 2016. The water is leased for 15 years, and will be used to offset the Rio Grande and Caballo Reservoir depletions, but five to six times more water is needed, Schoeppner pointed out.
In addition NMCC acquired 2,400AFY, leased over a 10-year period, from Tulla Resources Group and Santa Teresa Capital. However, its application with the Office of the State Engineer to change the point of diversion and place of use to the mine’s production wells has been protested, the water not usable.
“In summary, NMCC’s water rights for the Copper Flat Mine to date totals 864 AFY of vested rights,” Schoeppner’s cover letter to his order states.
“Considering NMCC’s lack of success over the past eight years,”Schoeppner said, “MMD is concerned that many more years of protracted litigation may not result in obtaining sufficient water rights to operate and reclaim the mine.”
“MMD formally rescinds the notice of technical approvability dated July 18, 2018,” Schoeppner’s letter states, “and reopens the permit review process for consideration of the following issues:”
The new issues include “demonstrating” that NMCC has acquired 6,100 AFY for the 12 years of proposed mining, the amount and time NMCC named in its application, necessary to operate and reclaim the mine. Schoeppner said the 10-year lease for 2,400 AFY is too short a time and too little water to satisfy the application requirements.
Another 16,382 acre-feet of water must be acquired to offset the Rio Grande and Caballo Reservoir depletions, the order states.
Another 2,200 acre-feet of water must be purchased “to rapidly fill” the mining pit at the start of reclamation.
In addition, an unspecified amount of water must be obtained to get a safety-dam permit for the tailings pond, Schoeppner said, with the OSE determining the amount and issuing the permit, but the MMD must have proof the permit was issued.
That is over 92,000 acre-feet of water NMCC must “demonstrate” it has before receiving a mining permit.
NMCC COO Jeffrey Smith said, “We have been transparent in our communications with the Agency and the public over the years and strongly believe there have been no changes in circumstances to justify this action. We have acknowledged every step of the way what still requires attention prior to permit issuance and we remain committed to taking those steps.”
“The Order allows an administrative appeal [within 60 days of March 31, when the order was handed down],” Smith said. “We are considering our next step at this time.”
Smith said he could not comment on the appellate court case in which NMCC is still trying to win 7,500 AFY, nor the protested OSE application to divert 2,400 AFY to the mine.
Max Yeh is a correspondent for the Percha Animas Watershed Association, which formed in the 1990s to watchdog the Copper Flat Mine, which has had several owners over the years.
Yeh is also among the protestants to the NMCC application to lease 2,400 acre feet per annum of water right.
In addition, Yeh is the research assistant to the attorney for the Hillsboro protestants in the water-rights adjudication case—State of New Mexico, ex rel. Office of the State Engineer v. EBID et al.—in which NMCC claims 7,500 AFY water right.
Yeh said, “NMCC can, of course, appeal, but the order is very solid because it is supported by 65 Findings of Fact and Conclusions of Law.”
“This is the first time a permitting agency has acknowledged our claim that water is the central issue with the mining project,” Yeh said.
“The BLM ignored it in the Environmental Impact Statement, first by saying NMCC would get the water rights, then by saying it wasn’t BLM’s concern, and the Department of Interior side-stepped the issue by approving the permit conditionally (something federal law does not authorize),” Yeh said.
“Director Schoeppner’s recognition of the importance of water and water rights in this case,” Yeh said, “brings into focus the importance of our ongoing litigation with NMCC in the Court of Appeals over water rights and our protest of the transfer of leased water rights to our area.”