USD United States Forest Washington Of?ce 201 l-tth Street, SW
I)epartment 01' Service Washington, DC 20250
Agriculture

 

File Code: 2670
Date: DEC 1 2015

Neil Kornze

Director

Bureau of Land Management
1849 C. Street NW. Rm. 5665
Washington. DC 20240

Dear Director Kornze:

On .1 une 3. 2016. the Bureau of Land Management (BLM) requested the Forest Service (FS)
provide a decision on whether it consents to renewal oftwo leases currently held by Twin Metals
Minnesota (TMM) for lands within the Superior National Forest (SNF) in northern Minnesota.
These two Preference Right leases. MNES-01352 and MNES-01353, lie directly adjacent to and
within three miles of the Boundary Waters Canoe Area Wilderness (BWCAW). respectively.
The PS has considered the environmental conditions. nature and uses ofthe by the
public and tribes, economic benefits of mineral development and wilderness recreation. potential
environmental consequences of mineral development on the leases. public opinion. rarity of
copper-nickel sultide ore mining in this region. and current laws and policy to inform the
agency?s decision.

Based on this analysis. I ?nd unacceptable the inherent potential risk that development of a
regionally-untested copper-nickel sultide ore mine within the same watershed as the BWCAW
might cause serious and irreplaceable harm to this unique, iconic. and irreplaceable wilderness
area. Therefore. the FS does not consent to renewal ofPreference Right leases MNES-01352 and
MNES-01353. A summary ofthe basis for my decision follows.

The BWC AW Is an Irreplaceable Resource

The 1.1 million acre the BWCAW is located in the northern third ofthe SNF in Minnesota.
extending nearly 200 miles along the international boundary with Canada. It is the only large-
scale protected sub-boreal forest in the lower 48 United States. The SNF holds 20 percent ofthe
National Forest System?s fresh water supply. These healthy forests with extremely high water
quality also provide a host of watershed bene?ts. such as purifying water. sustaining surface
water and ground water ?ow. maintaining tish habitats. controlling erosion. and stabilizing
streambanks.

In addition to the existing high quality ofthe waters. the dramatic hydrogeology and
interconnectedness of forests. lakes. streams. and wetlands make the region unique
and susceptible to degradation. The BWCAW includes nearly 2.000 pristine lakes ranging in size
from 10 acres to 10.000 acres. and more than 1.200 miles ofcanoe routes.

With Voyageurs National Park and Quetico Provincial Park. BWCAW is part of an international
network ofconserved land and wilderness. Quetico Provincial Park. located in Ontario. Canada.

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Neil Kornze

lies within the same Rainy River watershed as the BWCAW. Quetico Provincial Park is an
iconic wilderness class park. world renowned as a destination for backcountry canoeing with
over 2.000 lakes and over one million acres of remote water-based wilderness. Together. Quetico
and BWCAW form a core wilderness area of over two million acres.

Located northwest ofthe BWCAW. Voyageurs National Park was established by Congress in
1971 to preserve and interpret fur trade history and the importance ofcanoe travel routes in
northern Minnesota. The park is at the southern edge ofthe boreal forest. and lies within the
same Rainy River watershed as the BWC AW. It features spectacular canoeing and boating routes
along with hiking trails exploring portage routes used by American Indians. early fur traders. and
gold miners. Approximately 240.000 people visit Voyageurs National Park every year.

Just south ofthe BWCAW the Laurentian Divide separates three river systems: one ?owing
north to Hudson Bay; the Laurentian system ?owing eastward towards the Atlantic through the
Great Lakes. and the Mississippi system. ?owing south to the Gulfof Mexico. ?l'MM?s two
leases subject to F8 decision are located in the Rainy River Watershed. which drains into the
BWCAW. Quetico Provincial Park and Voyageurs National Park. There are four llUC
(Hydrologic Unit Code) -10 sub-watersheds in the area ofthe leases and potential project site?
Birch Lake. Stony River, lsabella River and Kawishiwi River. Surface water ?ows north and
west from Birch Lake and the Kawishiwi River watershed through Kawishiwi River and several
lakes into BWCAW. Water from the Stony River and the Isabella River watersheds ?ows into
the Birch Lake watershed.

The Natural Environment

The SNF provides abundant and diverse habitat for thousands of breeding. wintering. and
migratory species of terrestrial and aquatic wildlife. including over 100 species of migratory
breeding birds in a zone with North America?s greatest diversity of songbirds and forest-
dependent warblers. The SNF also has one ofthe largest populations of gray wolves outside of
Alaska. common 100118. and moose. It has popular game species such as walleye. trout, deer.
ruffed grouse. fisher. and beaver; and numerous rare species such as great gray owl. black-
backed woodpecker. ram?s-head ladyslipper and other orchids. and lake sturgeon. The SNF also
has a great diversity and abundance ofspecies common to the boreal forest biome. including
three-toed woodpecker. boreal owl, boreal Chickadee. lynx. moose. and grizzled skipper
butterfly. All these species provide a wide array of crucial ecological, social and economic
benefits and uses - front big game hunting and fishing to wildlife watching and research.

The BWC AW is also home to three threatened or endangered species: Canada lynx. northern
long-eared bat. and gray wolf. Over the decades the BWCAW has been protected. it has provided
refugia for species under stress or with declining populations. such as moose. In the face of
climate change. the BWCAW may be critical to the continued existence ofthese species within
Minnesota.

Cultural Resources and Treaty Rights Associated with the BWC AW

The BWCAW region has been home to Native Americans for millennia. The Minnesota
Chippewa Tribe and three associated Bands the Grand Portage Band. the Fond du Lac Band.

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Neil Kornze

and the Bois Forte Band -- retain hunting. ?shing. and other usu??uctuary rights throughout the
entire northeast portion of the State of Minnesota under the 1854 Treaty of LaPointe. 1n the
Ceded Territory all Bands have a legal interest in protecting natural resources. and the FS shares
in federal trust responsibility to maintain treaty resources. Many resident Ojibwe. who ceded
lands that became the BWC AW. continue to visit ancestral sites and traditional gathering and
?shing locations within the wilderness. Tribes rely on natural resources like ?sh. wildlife and
wild plants such as wild rice for subsistence and to support them spiritually. culturally.
medicinally. and economically.

The northern border ofthe BWCAW is situated along a winding. 120-mile canoe route known
locally as the Border Route. or Voyageurs Highway. This historic canoe route. bordered on the
north by Ontario's Quetieo Provincial Park. on the east by Grand Portage National Monument.
and on the west by Voyageurs National Park. was utilized extensively by pre-contact Native
Americans. European fur traders. and tribal groups such as the Dakota. Cree. and Ojibwe.

There are approximately 1.500 cultural resource sites identi?ed on National Forest System
(NFS) lands within the BWCAW. Many more cultural resources are believed to exist within the
wilderness; as of2015 only about 3 percent ofthe landscape has been intensively surveyed.
Cultural resource sites include historic Ojibwe village sites. French and British period fur trade
sites dating from 1730-1830. Woodland period village sites (2.000-500 years old) situated on
wild rice lakes, Native American pictograph panel sites. Archaic period years old)
sites with copper tools. and large Paleoindian quarry sites such as those recently discovered on
Knife Lake where Native Americans shaped stone tools up to 10.000 years ago.

Wilderness Designation

The irreplaceable natural qualities of the BWCAW were recognized nearly a century ago in 1926
when the Department of Agriculture ?rst set aside the area to preserve its primitive character.
The Wilderness Act of 1964 of?cially designated land inside today?s BWCAW as part ofthe
National Wilderness Preservation System. The Boundary Waters Canoe Area Wilderness Act of
1978 expanded the wilderness area to 1.090.000 acres. The 1978 Act also established a separate
Boundary Waters Canoe Area Mining Protection Area (MPA) to protect existing natural values
and high standards ofenvironmental quality from the adverse impacts associated with mineral
development. Sec. 9. Pub. 1.. 95-495. 92 Stat. 1649. 1655 (1978). Congress provided very clear
direction regarding the purposes ofthe BWCAW and MPA:

(1) provide for the protection and management ofthe ?sh and wildlife ofthe wilderness so as
to enhance public enjoyment and appreciation ofthe unique biotic resources ofthe region.

(2) protect and enhance the natural values and environmental quality ofthe lakes. streams.
shorelines and associated forest areas ofthe wilderness.

(3) maintain high water quality in such areas.

(4) minimize to the maximum extent possible. the environmental impacts associated with
mineral development affecting such See. 2. Pub. L. 95-495. 92 Stat. 1649 (1978).

Neil Kornze 4

The BWCAW Act bans authorization of federal mineral development within the BWCAW and
MPA. However. the BWCAW Act does not govern federal mineral development on other NFS
lands. Instead, the authorities governing federal mineral development on SNF lands outside the
BWCAW and MPA are 16 U.S.C. 508b and Section 402 of Reorganization Plan No. 3 of 1946.
60 Stat. 1097. 1099-1 100. A decision withholding FS consent to the lease renewals is fully
consistent with this statutory framework.

World Renowned Research Laboratory

Because ofits unique quality and character, the BWCAW is a living laboratory supporting
dozens of research projects each year. Scientists of all disciplines rely on scarce areas like the
BWCAW to support scientific inquiry and serve as control areas in the study of water quality.
climate change effects. and natural ecological processes. The BWCAW is internationally known
as a laboratory for ground-breaking research on forest fires. landscape patterns. biodiversity.
wildlife. soils. nutrient cycles, other ecosystem processes. lakes. climate change. and recreational
use of wilderness. This body of work is widely cited by scientists around the world. As an
example, Miron llinselman?s work on forest fires in BWCAW, published during the 19703-
19905. has been cited in more than 1.700 published studies. More recent BWCAW-related
studies by relich and Reich have already been cited in 1.300 studies in 70 peer-reviewed
science journals published in 20 countries on 4 continents. New results from BWCAW research
are regularly presented at prestigious international meetings on scientific study.

Recreation Values ofthe BWCAW

The BWC AW is one ofthe most visited areas in the entire National Wilderness Preservation
System. and the System?s only large lake-land wilderness. 11 provides an experience unique
within the continental United States. The thousands of lakes and hundreds of miles
ofstreams comprise about 190,000 acres (20 percent) of the surface area and provide
for long distance travel by watercraft. The opportunity to pursue and experience expansive
solitude. challenge and personal immersion in nature are integral to the BWC AW experience.
Winter BWCAW visitors enjoy opportunities for skiing. dog-sledding. camping and ice fishing.
Fishing is one of the most popular BWCAW activities throughout the year due to the range of
species found in its waters. including smallmouth bass. northern pike. walleye. and lake trout.

Social and Economic Environment

leases are. located near Ely. in St. Louis and Lake Counties. The population of St. Louis
County is concentrated in and around the City of Duluth. approximately 100 miles south ofthe
lease area. The Iron Range communities of Ely. Hibbing. and Virginia are smaller secondary
population centers. The 2010 US. Census shows area population has declined by nearly 10
percent since 1980. while Minnesota?s population as a whole has increased by more than 30
percent. At least some ofthis population decline may be attributable to a loss ofiron industry
jobs. The Fond du Lac. Grand Portage. and Bois Forte reservations are exceptions to the regional
trend - populations there have increased since 1990.

The median income of area communities is signi?cantly lower than that of the State as a whole.
It is also the case that the median income ofthe area?s secondary population centers is generally

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Neil Kornze

lower than that of St. Louis County as a whole. In some of these communities, such as lily and
Tower. the median household income is more than hall?ol? the state median. In many
individual communities, poverty rates are as hiin as or higher than statewide (with the
exceptions of the secondary population centers 01? Hoyt Lakes. Soudan. and Tower).

Mining employment in St. Louis County declined from more than 12.000 jobs in 1980 to
approximately 3.000jobs in 2009. However. since mining employment can vary greatly from
one year to the next. this decline does not represent a steady reduction. Mining-related
employment is volatile and ?uctuates due to changes in the market price ot?commoditics being
extracted. During the same time period, service-related employment (which includes the North
American Industry lassilication System categories for professional services. management.
health care. education, arts/entertainment. and accommodation/food) in the study area has
increased substantially, mirroring broader state and national trends.

Tourism is rooted in the region?s unique recreation opportunities such as the BWCAW. and is
broadly dependent on hunting. fishing. boating. sightseeing. and wilderness experiences provided
by the region?s high-quality natural environment. Industries associated with tourism (arts.
entertainment. recreation. accommodation. and food services) account for nearly 13 percent 01?
all employment in St. Louis County. The landscape and recreational opportunities attracts
retirees and new residents.

Fishing in Minnesota lakes and rivers generates $2.8 billion in direct annual expenditures and
contributes more than $640 million a year in tax revenues to the treasuries of the state and
federal governments. The BWC AW itself has provided millions of visitors with a unique water-
based recreation experience and provided an economic driver to local communities and the state
ol?Minnesota. Leases MNES-01352 and MNES-01353 are surrounded by 29 resorts. outlitters.
campgrounds and hundreds of homes and cabins. Similarly. Voyageurs National Park and
Quetico Provincial Park both support vibrant tourism industries.

In 2015. 150,000 people visited the BWC AW. Economic bene?ts generated from recreation in
the BWC AW average approximately $44.5 million annually. Continued economic returns rely
on sustaining natural resource quality and wilderness character.

The Role with Respect to Hardrock Mineral Leases

two leases include a mixture lands reserved from the public domain and acquired
NFS lands. with the vast majority being reserved lands. l6 U.S.C. 508b applies to reserved
NFS lands and provides in pertinent part:

?the Secretary ol?the Interior is authorized to permit the prospecting for and the development
and utilization of [hard rock] mineral resources: provided. that the development and utilization of
such mineral deposits shall not be permitted by the Secretary ol?the Interior except with the
consent ofthe Secretary ol'Agriculture."

Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097. 1099. applies to acquired NFS
lands and provides in pertinent part:

Neil Kornze 6

?The functions ofthe Secretary ongriculture and the Department ongriculture with respect to
the uses of mineral deposits in certain lands pursuant to 16 U.S.C. 520 are hereby
transferred to the Secretary ofthe Interior and shall be performed by him or by such officers
and agencies ofthe Department ofthe Interior as he may designate: Provided. That mineral
development on [lands acquired pursuant to the Weeks Act] shall be authorized by the Secretary
ofthe Interior only when he is advised by the Secretary ongriculture that such development
will not interfere with the primary purposes for which the land was acquired and only in
accordance with such conditions as may be specified by the Secretary of Agriculture in order to
protect such purposes."

In pertinent part. 16 U.S.C. 520 provides:

The Secretary of Agriculture is authorized. under general regulations to be prescribed by him. to
permit the prospecting. development. and utilization of the mineral resources ofthe lands
acquired under the Act of March first. nineteen hundred and eleven, known as the Weeks law,
upon such terms and for specified periods or otherwise. as he may deem to be for the best
interests of the United 

Under the Weeks Act. 16 U.S.C. 515. the Secretary of Agriculture is authorized to purchase
lands for the purposes of "the regulation ofthe ?ow of navigable streams or the production of
timber."

The Department of the Interior adopted regulations providing for disposal of mineral resources
pursuant to 16 U.S.C. 508b and Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat.
1097, 1099. by means ofa leasing system governed by 43 CFR. part 3500. 43 CFR. 

3501 (3). The Department of the Interior?s regulations provide that issuance of
leases for hard rock minerals. including deposits ofcopper. nickel and associated minerals. on
lands administered by another surface managing agency is "[slubject to the consent of the
surface managing agency." 43 CFR. 3503.13(a) which in the case lands is the
United States Department of Agriculture. Forest Service. 16 U.S.C. 1609(a). Specifically. 43
CFR. 3503.l3(a) relates to lands acquired under the Weeks Act while 43 CFR. 3503.l3(c)
relates to the reserved lands.

On March 8. 2016. Department of Interior Solicitor Hilary Tompkins issued memorandum M-
37036 (M-Opinion) in response to a BLM request asking "whether it has the discretion to grant
or deny Twin Metals Minnesota's pending application for renewal of two hardroek preference
right leases in northern Minnesota." The M-Opinion advises the BLM determining that. ?Neither
of the statutory authorities under which and 353] are issued?section
402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097. 1099-1 100. and 16 U.S.C. 508b-
ereates an entitlement to a lease or otherwise mandates the issuance of leases" and the
contrary, both authorities expressly condition leasing on surface owner consent (in this instance
the Forest Service) and thus are discretionary." Therefore. on June 3. 2016. the BLM advised the
Forest Service:

light of the legal determination that the government has discretion in granting or denying
the TMM lease renewal application, in accordance with 43 CFR 3503.20. 16 U.S.C. 508b.
Section 402 of Reorganization Plan No. 3 of 1946, 60 Stat. 1097. 1099. and 16 USC 520. the

Neil Kornze 7

BLM requests that the USDA Forest Service provide, in writing. a decision on whether it
consents or does not consent to the renewal ofthe leases."

Irrespective ofthe M-Opinion. the S's consent to any hardrock lease renewal is mandated by 16
U.S.C. 508b and Section 402 of Reorganization Plan No. 3 01?1946. 60 Stat. 1097. 1099.
Pursuant to 16 U.S.C. 508b. the Secretary ongriculture's right to consent to "the development
and utilization of [hardrock] mineral resources" is coextensive with the Secretary ofthe Interior's
authority to permit "the development and utilization of [hardrock] mineral resources." The fact
that the Secretary ofthe lnterior has implemented the authority 16 U.S.C. 508b confers to
permit "the development and utilization of [hardrock] mineral resources" by means of a
regulatory scheme containing a number ofdecision points simply means that the Secretary of
Agriculture's statutory consent authority with respect to hardrock mineral development and
utilization authority expressed in terms identical to the Department of authority 
similarly extends to the same universe ofdecision points providing those decisions have the
potential to affect NF surface resources.

Whereas pursuant to Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097. 1099. the
Secretary of the Interior's authority per 16 U.S.C. 520 "to permit the development ofthe
lhardrock] mineral resources ofthe lands acquired under the Weeks is contingent
upon the Secretary ongriculture's determination that "such development will not interfere with
the primary purposes for which the land was acquired. . It is well established that mineral
"development" is authorized by a lease. whether it is one issued in the first instance or a
subsequent renewal. Indeed. the M-Opinion explicitly recognizes that "the entire purpose" ofa
mineral lease is "for the lessee to develop the Another M-Opinion ?nds that since
the 19703 hardrock prospecting permits for NFS lands, which are the precursor for the issuance
of hardroek mineral leases including MNES-01352 and MNES-01353. have uniformly included
the condition that "no mineral development of any type is authorized hereby." M-36993. Options
Regarding Applications for Hardrock Mineral Prospecting Pennits on Acquired Lands Near a
Unit of the National Park System (1998 WL 35152797 (April 16. 1998)). Missouri 
the Environment. 124 IBLA 21 1. 217 (1992) ("mineral development may only be authorized
upon issuance ofa [hardrock] lease): John A. Nejedly ('(mlra Costa Youth Association. 
H. 26 (1984) (concurring opinion) (development under a hardrock lease "is a logically foreseen
result of successful prospecting"). So again, the fact that the Secretary of the Interior has
implemented the authority Section 402 of Reorganization Plan No. 3 of 1946, 60 Stat. 1097.
1099, confers to permit the development ofhardrock mineral resources on lands acquired
pursuant to the Weeks Act by means of a regulatory scheme containing a number of decision
points simply means that the Secretary of Agriculture's consent authority with respect to
hardroek mineral development authority expressed in terms identical to authority 
similarly extends to the same universe ofdecision points providing those decisions have the
potential to affect NFS surface resources.

Ofcourse. under Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097. 1099. the
Secretary ongriculture cannot block mineral development absent a finding that "such
development will interfere with the primary purposes for which the land was 
Here. since the small percentage of acquired lands subject to 'l?MM's two leases were purchased
in accordance with the Weeks Act. those primary purposes were "the regulation of the ?ow of
navigable streams or the production oftimber." As discussed below. hopes to construct

Neil Kornze 8

and operate an underground mine on its two leases not a strip mine. At thisjuncturc the PS
consequently cannot de?nitively say that the mineral development which TMM hopes to conduct
on its leases will interfere with those purposes. Uncertainty about this question is oflittle import.
however, since the lands subject to TMM's leases are an admixture of lands reserved from the
public domain and acquired lands with the reserved lands being in excess of90% ofthe acreage
included in both leases. Further. there is no reason to believe that TMM's mineral development
exclusively could be confined to the acquired lands. The FS's conclusion that the agency should
exercise the absolute discretion that 16 U.S.C. 508b confers upon it to withhold consent to the
renewal ofTMM's leases insofar as the reserved lands are concerned accordingly has preclusive
effect with respect to the lands acquired pursuant to the Weeks Act.

The Role of Forest Plans

The PS develops land and resource management plans to provide a framework that protects
renewable surface resources. This framework balances both economic and environmental
considerations to provide for multiple uses and sustained yield renewable surface
resources.

The 2004 SNF Plan at states: "Exploration and development of mineral and mineral
material resources is allowed on NFS land, except for federally owned minerals in designated
wilderness and the Mining Protection Area." The Plan also provides that the PS will manage the
BWC AW in a manner that perpetuates and protects its unique natural ecosystems. provides an
enduring wilderness resource for future generations. and provides opportunities for a primitive
and uncon?ned recreation experience.

Although forest plans provide a framework. they do ?not authorize projects or activities or
commit the Forest Service to take action" (36 .F.R. Instead. forest plans provide
broad management guidance and ensure all program elements and legal requirements are
considered prior to critical project level decisions. such as a decision to authorize timber
harvesting. grazing or mining operations. As the Supreme Court has determined. forest plans:

. .do not command anyone to do anything or to refrain from doing anything: they do not grant.
withhold. or modify any formal legal license. power. or authority; they do not subject anyone to
any civil or criminal liability; they create no legal rights or obligations. Thus. for example. the
Plan does not give anyone a legal right to cut trees. nor does it abolish anyone?s legal authority to
object to trees being cut. Ohio Fares"), Ass '11. Sierra Club. 523 .S. 726. 733 998)."

Following Forest Plan approval. proposals are evaluated on a case-by-ease basis. Proposals
inconsistent with Plan direction may not be authorized (16 .S.C. ?1604(i)). However. a
proposal might reveal the need to amend plan direction that would otherwise stand as an
impediment to a proposal. Yet a proposal?s consistency with applicable Plan standards and
guidelines is not an assurance that the proposal will be authorized. The PS retains discretionary
judgment concerning overall multiple use. sustained yield management lands. Further.
denial ofa proposal consistent with applicable Plan standards and guidelines does not require
alteration of the applicable direction.

Neil Kornze 9

The SNF Plan does not prohibit mineral development within the management area where
leases are located. But the FS is not bound to approve 'l?MM's application for renewal of
its leases either. Neither the statute nor regulations governing forest plans mandate the approval
of proposals consistent with a Forest plan. Moreover. as discussed above. pursuant to the express
terms of 16 U.S.C. 508b and Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097.
1099. the FS retains discretion to withhold consent to TMM's lease renewals given the leases'
purpose is mineral development, as recognized by the M-Opinion. Speci?cally. the FS denial of
consent to TMM's lease renewals is warranted for the reasons set out in the M-Opinion and also
because the bar in both 16 U.S.C. 508b and Section 402 of Reorganization Plan No. 3 of 1946.
60 Stat. 1097, 1099. against mineral development absent the consent of the Secretary of
Agriculture applies with equal force to the initial issuance ofthe lease and any renewal ofthat
lease. Accordingly, the may consider any potential negative environmental impacts that might
[low from mineral development on those leases and their effect on future national forest
conditions.

National Environmental Policy Act (NEPA) Applicability

NEPA ensures federal agencies take into account signi?cant environmental matters in their
decision making. and that they disclose to the public that the agency has considered
environmental concerns. An environmental impact statement (EIS) must be prepared when an
agency proposes to undertake a major federal action that may signi?cantly affect the quality of
the human environment. In summary. NEPA tasks agencies to assess changes in the physical
environment caused by the action it proposes to authorize.

Council on Environmental Quality (CEQ) regulations implementing NEPA are clear that a
proposal "exists at that stage in the development of an action when an agency subject to the Act
has a goal and is actively preparing to make a decision on one or more alternative means of
accomplishing that goal and the effects can be meaningfully evaluated." 40 .F.R. 1508.23.
This provision is reinforced by instruction that major federal actions "includes actions
with 40 C.F.R. 1508.18. FS NEPA regulations establish a four part test for
determining when NEPA obligations arise. including whether ?[tlhe Forest Service has a goal
and is actively preparing to make a decision on one or more alternative means of accomplishing
that goal and the effects can be meaningfully 36 .17.R. Thus. when
the FS declines to authorize a private application. the mere contemplation ofthat application
does not constitute a federal proposal and the FS is not required to conduct an environmental
analysis under NEPA.

As it is my determination not to consent to issuance of lease renewals based on the application
before the agency at this time. preparation of an environmental analysis is not required. As
further explained below. no significant environmental effects will occur as a result ofthe
agency?s no-consent determination.

This outcome is entirely in keeping with NEPA and its implementing regulations. Situations like
this pose the unusual question of whether NEPA requires consideration of environmental effects
of federal actions that foreclose development or use ofnatural resources. NEPA does not require
a federal agency to consider effects arising from an action it has declined to allow third parties to
undertake when that does not represent change in the physical environment caused by the federal

Neil Kornze 10

action itself. In other words. only federal actions with significant environmental effects trigger
detailed statement requirement. Actions which do nothing to alter the natural physical
environment and maintain the environmental status quo are not subject to Nlil?A.

'l?hc FS routinely prescreens non-mineral. special use authorization applications and agency
regulations direct that non-conforming uses do not need to receive further evaluation and
processing. See 36 C.F.R. 251.54(e) (2). The F8 does not have regulations governing
consideration ofdiscretionary mineral leasing applications. but agency practice is consistent.

As recently as 2014. Regional Forester Atkinson rejected a request for consent to a prospecting
permit on the Hiawatha National Forest without preparing a NEPA document. Diverting scarce
budgetary resources to prepare documents for proposals that will not move forward
trivializes NEPA and diminishes its utility in providing useful environmental analysis for actions
that the agency accepts and actively evaluates for approval.

In these circumstances. the Court oprpeals' Eighth Circuit holding that a decision to refrain
from using herbicides as a method of vegetation control is not a "proposal or action to which
NEPA can apply" pertains. Allinncsoia Pcslicic/e Infarmaiion and Edna. Inc. v. Espy. 29 F.3d
442, 443 (8th Cir. 1994).

NFS Land Management Perspectives

Half ofa century has passed since 'l?MM?s leases were issued in 1966. The original leases were
issued prior to statutes such as the National Historic Preservation Act of 1966. National
Environmental Policy Act of 1969, Clean Water Act of 1972. Endangered Species Act of 1973,
National Forest Management Act of 1976. and Boundary Waters Canoe Area Wilderness Act of
1978. Without these laws in place the environmental consequences of potential ?commercial
development [ofthe nickel and copper deposit] by a large-scale mining operation" originally
envisioned by BLM in 1956 on what are now leases received markedly less
consideration in comparison with current requirements. Given changes in policy and information
availability. it is not unreasonable to anticipate a higher level ofinterest and concern regarding
these consequences than when 'l?MM?s leases were originally issued. as demonstrated in the
examples to follow.

In 1991 the Minnesota Department of Natural Resources recognized the value ofthe BWCAW
for its scenic beauty and solitude by establishing a State Mineral Management Corridor. In light
ofsurface water ?ow and recreational uses. no surface disturbance or state leases may be offered
in the Corridor. The State Mineral Management Corridor overlaps with federal lease MNE. -
1353.

The federal relationship with Native American tribes has also evolved significantly over the 50
years since the TMM leases were issued. The F8 has a legal obligation to acknowledge rights of
Tribes and tribal members. including off-reservation rights to hunt, fish. gather and continue
cultural and spiritual practices. Such recognition did not occur until the late 19703 when Indians
began to assert their rights to off-reservation resources in federal court. including those rights to
fish and gather wild rice. Lac Comic ()reilles Band QfLakc Superior Indians 
State 653 F. Supp. 1420 (WI). Wis. 1987) (LCD Lac ('ourlc Ore/[es Band QfLakc

Neil Kornze 1

Superior Chippeu-?a Indians v. Stale (??ll?isu 668 F. Supp. 1233 (W .D. Wis. 1987) LC 0 No
documentation suggests that consultation occurred or treaty rights were considered in the 1966
decision to grant the two leases.

Finally. since the last renewal of 'l?MM?s leases in 2004. we have gained experience with copper
sul?de ore mining in different parts ofthe country. It is clear that these types of mines pose .
substantial risk of failure and environmental mitigation and remediation technologies are limited.
and often ineffective. as discussed later in this letter. Awareness ofthe environmental effects of
mining. specifically those from copper-nickel mining. has increased since 2004. While economic
values are important to area communities and the nation. preserving Wilderness Areas and their
associated qualities also have national and local support and precedent.

Evaluation ofthe Present Lease Application

In light of the M-Opinion?s legal conclusion that TMM does not have the right to automatic
renewal ofits leases MNES-01352 and MNES-01353. on March 8, 2016 the BLM notified TMM
that the agency would review the company?s lease renewal application using the same criteria
that are employed in deciding whether to grant initial hardrock mineral leases. 'l?hc BLM's letter
also specified that as part ofits consideration of'l?MM?s lease renewal application. the BLM
would ask the FS whether it consents to the leases' renewal. In response to the BLM's June 3.
2016 letter making that request ofthe PS. the agency began considering whether to consent to
the renewal of leases based upon the agency's recognition that it has full discretion to
consent or withhold consent to the renewal ofTMM?s two leases.

As noted above. CEO and FS NEPA regulations make clear that an application must be accepted
by the agency as a proposal before NEPA obligations are triggered. At this time. the FS will not
consent to lease renewal based on the submitted application and therefore does not have a goal
that it is actively pursuing to authorize such activities. For this reason. no NEPA analysis is
required.

Acid Mine Drainage

Bedrock geochemistry in northeastern Minnesota plays a large role in the low buffering capacity
of the lakes and streams in the region. Both the Minnesota Pollution Control Agency and the
Environmental Protection Agency (EPA) have identified the surface waters of northeastern
Minnesota as sensitive to changes in pH. acid deposition. and acid runoff. Unlike surface waters
bounded by carbonate bedrock. or relatively thick carbonate rich glacial till where neutralization
of acid runoffoccurs through dissolution of limestone and exsolution of carbon dioxide from
water. the waters of northeastern Minnesota are largely underlain by igneous and metamorphic
bedrock with thin overlying soils and sur?cial deposits with little acid neutralization capacity.

A risk of mining development is acid mine drainage (AMD). AMD generally occurs when
sulfide minerals present in ore bodies and rock overburden are exposed to air and water. The
exposure to air (oxidation) and water (hydrolysis) creates sulfuric acid. which subsequently
increases water pH and leaches harmful metals such as copper. zinc. lead. cadmium. iron and
nickel. data indicates between 20.000 and 50.000 mines currently generate acid on lands
managed by the agency. Negative impacts from these mines affect 8.000 to 16.000 km of

Neil Kornze l2

streams. While AMD can originate naturally from the ore body itself. its likelihood is
dramatically increased by the generation ofany mining product (stockpiles. overburden. and
tailings) exposed to air and water. and can continue for decades.

Hardrock mines in sul?de bearing mineralization are known worldwide for producing AMD that
requires continuous management and perpetual water treatment. Production of AMD is prevalent
in all mining operation elements: construction, waste rock. tailings. and mine structures such as
pits and underground workings. Acid drainage is one ofthe most signi?cant potential
environmental impacts at hardrock mine sites.

Water from a mine site could potentially enter streams and lakes through wastewater treatment
plant discharges. uncolleeted runoff and leakage. concentrate spills. pipeline spills, truck
accidents. spillway releases. tailings dam failures. water collection and treatment operation
failures, and post-closure failures. All carry some risk to the environment. The magnitude and
setting ofa failure would drive the signi?cance ofthe environmental risk and its potential
impact.

The AMD increases lake and stream acidity. with potential risks to aquatic life including sport
?sheries. A decline in water quality and aquatic species would have a negative effect on
recreational visitors to the BWCAW. For example. the USGS estimated that in 2010
approximately 3,000 miles of streams degraded by acid mine drainage led to
approximately $67 million in lost sport ?shing revenue each year.

Mining accidents are inherently unpredictable and can result from failures or human
error. Other circumstances that can affect the likelihood of mining failures or discharges include
changing metals markets, ?nancial crises. political events. and climate change. In addition.
climatic trends affecting the frequency and magnitude of storm events and seasonal temperatures
could lead to unpredicted environmental changes in vegetative composition, water quality and
quantity. and wildlife habitat making the environment more susceptible to damage resulting from
mining operations.

There is a direct flow of water from the lands subject to TM M?s leases to the BWC AW.
Speci?cally. the leases are located within the South Kawishiwi River Watershed and the Birch
Lake Watershed which both are catchments ofthe Rainy River Water ?ows from the
lands embraced by the northern lease into the South Kawishiwi River which in turn ?ows into
Birch Lake. Water from the lands embraced by the southern lease also ?ows into Birch Lake and
Birch Lake empties into the main Kawishiwi River and then into the BWC AW.

TM M?s leases overlay the Duluth Complex known for nickel-copper-platinum group element ore
deposits. Due to the inherent sul?de chemistry of this ore type. mining facilities and byproducts
can produce signi?cant amounts of acid. Consistent with the footprint and infrastructure of
similar mines. as well as publieally available preliminary information from about this
speci?c site, potential project area could include underground mine(s) producing mainly
copper and nickel, plus smaller amounts of other metals. 'l?MM?s project would require a
concentrator facility (potentially 1-2 miles west of the mine(s)). a tailing storage facility
(potentially 13 miles southwest ofconcentrator). and connecting utility corridors. The utility
corridors would include roads. rail lines. power transmission lines. natural gas pipelines. tailing

Neil Kornze l3

and concentrate pipelines. and water pipelines. Pre-lieasibility Study also reveals that its
project would involve four delineated ore bodies Maturi. Maturi Southwest. Birch Lake. and
Spruce Road all of which are north and east ofthe Laurentian Divide and thus in the watershed
draining towards BWC AW.

mining operations are expected to dispose ofsome waste rock and tailings underground.
Other waste rock and tailings would be disposed of using surface facilities. All ofthe waste rock
and tailings derived from the sulfide ore bodies on the leases would have a high likelihood of
oxidizing and becoming sources of AMD. TMM's Technical Report on Pre-Fcasibility Study
shows that 'l?MM?s subsurface mining operations would occur north ofthc Divide and present
BWC AW contamination risks. That is also true of ore processing concentrator facilities.
But Technical Report on Pre-Fcasibility Study shows that tailings disposal
facilities potentially would be south of Laurentian Divide in the Superior Watershed. which
drains away from the BWCAW.

There are limitations in understanding the full contours ofthe mineral operations that ultimately
might occur on leases. including the location of important features such as its tailings
disposal facilities. The pre-feasibility study is an economic feasibility analysis. not ?nal
proposal to mine the hardrock mineral deposits. But pursuant to the terms of both 16 U.S.C. 
508b and Section 402 of Reorganization Plan No. 3 of 1946. 60 Stat. 1097. 1099-1 100, the FS's
consent is required for hardrock mineral development and the purpose ofany lease. whether it is
one issued in the first instance or a subsequent renewal. is mineral development. Indeed. the M-
Opinion explicitly recognizes that "the entire purpose" of a mineral lease is "for the lessee to
develop the minerals. . Another M-Opinion reports that since the 19705 hardrock prospecting
permits for NFS lands. which are the precursor for the issuance of Preference Right hardrock
mineral leases including 352 and MNES-01353, have been issued subject to the
condition that "no mineral development of any type is authorized hereby." M-36993. Options
Regarding Applications for Hardrock Mineral Prospecting Permits on Acquired Lands Near A
Unit Of The National Park System (1998 WL 35152797 (April 16. 1998)). See also John A.
Nejedly Contra (i'osta Youth Association, 80 14. 26 (1984) (concurring opinion)
(development under a preference right lease "is a logically foreseen result of successful
prospecting").

Another factor relevant to assessing the likelihood if TMM develops a mine on the
lands subject to the two leases it seeks to renew is that the waters in the Rainy River watershed
110w largely through bedrock fractures with limited carbonate rock surface area. Therefore the
watershed has low capacity to buffer AM D.

In sum, given the hydrology and hydrogeology of this area. the likelihood of these ore bodies
being exposed to water is very high. and given these particular ore bodies' composition. resulting
drainage from the mine workings and mining wastes are likely to be highly acidic.

Lessons from Similar Copper Sul?de Mines

Contamination from mining operations can also occur instantaneously via catastrophic failure of
the type that occurred in 2014 at the Mount Polley Mine in British Columbia. Canada and at
other copper mines. A review of water quality impacts from 14 operating U.S. copper sul?de

Neil Kornze l4

mines found: 100% of the mines experienced pipeline spills or accidental releases; 13 of [4
mines? water collection and treatment systems failed to control contaminated mine seepage
resulting in significant water quality impacts: tailings spills occurred at 9 operations: and a
partial failure of?tailing impoundments occurred at 4 mines. The inherent risks of mining
hardrock mineral deposits on the lands leased to set a high bar for potential mineral
development within this watershed due to potentially severe consequences for the BWC AW
resulting from such failures. Because ofthe hydrology and hydrogeology ofthis particular area.
should contamination occur, it could cover a very broad region.

Recent reviews of similar mining proposals in Minnesota and Alaska highlight inherent risks of
metal mining to natural resources, and provide examples of risks associated with long term
effectiveness ofplanned containment strategies. In Minnesota. the Final Environmental Impact
Statement for nearby NorthMet Mining Project and Land Exchange recognizes that no matter the
depth of analysis and planned containment strategies there remain uncertainties associated with
mine development, operation and long-term water and waste rock treatment.

Similarly, the EPA. in a Proposal Determination Pursuant to Section 404(c) ofthe Clean Water
Act for the Pebble Mine in Alaska, warns that. ?There is also real uncertainty as to whether
severe accidents or failures, such as a complete wastewater treatment plant failure or a tailings
dam failure, could be adequately prevented over a management horizon of centuries, or even in
perpetuity, particularly in such a geographically remote area subject to climate extremes. If such
events were to occur, they would have profound ecological ramifications." While the
ramifications ofthese risks are possibly greater in the case of the Pebble Mine. due to its
location. the BWCAW shares many similarities in temis of hydrogeology. extreme weather and
remoteness.

Unique Attributes ofCopper Sulfide Ore Mining in the BWCAW Region

Many operating copper mines in the United States are situated in the arid southwest or other drier
areas of the Nation. Northern Minnesota has an established history of taeonite mining - indeed.
the region to the west ofthe lease sites is known as the ?Iron Range." However, taeonite is an
iron-bearing oxide ore. Mining of the copper-nickel sulfide ore found on leases is
untested in Northern Minnesota. This lack of experience with copper-nickel sulfide ore mines in
environments with the complex hydrogeology of northern Minnesota complicates assessment of
the consequences of mining operations on leases. which could occur if those leases are
renewed.

Another variable in assessing the consequences ofthese operations is climate change. In
Minnesota. mean annual temperatures are expected to continue rising and precipitation is
expected to increase. along with the size and magnitude of weather events. An increase in
precipitation and water supply in association with significant events could exacerbate the
likelihood of AMD and water resource contamination. The projected changes in climate and
associated impacts and vulnerabilities would have important implications for economically
important timber species, forest dependent wildlife and plants, recreation, and long-range
planning. The combined impacts ofcontaminants from mineral development and climate change
could impact the ecosystem resilience of the BWC AW and the Superior National Forest outside
of the wilderness.

Neil Kornze 15

The Mining Project and [and Exchange, the ?rst copper-nickel mine proposed in
Minnesota. has similar concerns regarding AMD. climate change. and water quality. These
concerns were addressed in NorthMet?s ?nal through engineering. permitting. and
monitoring requirements. Significantly, the project is located in an area either
previously disturbed and/or surrounded by brown-field taconite open pit mines and waste piles in
the Laurentian Watershed, which drains away from the BWC AW. In contrast. leases are
in close proximity to the BWCAW and within its high quality watershed resource ofoutstanding
value. The inherent and legislated wilderness values and untrammeled qualities ofthe BWCAW
contrast with the extensively disturbed surroundings ofNorthMet's location. Additionally. if
there is any potential for copper-nickel mining project to affect the BWCAW and
MPA. this potential would be far less than that associated with any copper-nickel mining
operations TMM might ultimately conduct.

ultimately conducts mining operations on lands subject to its two leases and they result
in AMD. metal leaching. and water contamination, very few ofthe available containment and
remediation strategies would be compatible with maintaining the quality and
character. Available containment and remediation strategies such as sediment basins, water
diversions. or construction and long-term operation of water treatment plants have the potential
to deleteriously affect the BWCAW. Of particular concern, given the location ofTMM?s leases.
is the effectiveness of available methods to counteract AMD in the case of seepage. spills. or
facility failures. Water is the basic transport medium for contaminants. Consequently. all
measures aimed at controlling AMD generation and migration involve controlling water flow. To
reduce the generation and release the infiltration of meteoric water (rain and snow) can
be retarded through the use of sealing layers and the installation of under-drains. respectively.
Diversion of contaminated water most commonly requires installation ofditches or
sedimentation ponds. But even with the use ofthese measures successful long-term isolation of
intercepted contaminated groundwater is. at best. very difficult to achieve.

Moreover. even if available remediation techniques to handle contaminated water. such as
?ushing. containment and evaporation. discharge through wetlands. neutralization and
precipitation. desalination. water treatment plant construction and operation. utilization of
ditches or sedimentation ponds. and installation ofcut-off walls. trenches or wells. are effective.
very few. if any. ofthem are compatible with maintaining the quality and character of BWCAW
and MPA. as required by the Boundary Water Canoe Area Wilderness Act. Given the 
leases? proximity to the BWCAW's boundary (adjacent to in one case and less than 3 miles
distant in the other) and the direct transport route of surface water from Birch Lake and the
Kawishiwi River. it is reasonable to expect direct effects ofany mining operations on those
leases to the BWCAW and MPA.

Potential Impacts to Water. Fish. and Wildlife

As noted above. the potential for environmental hamt is inherent to copper-nickel and other
sul?de-bearing ore mining operations. This potential exists during all phases of mine
development. mineral extraction and processing. and long-term mine closure and remediation.
Expected environmental harm could encompass damage to both surface and ground water
resources. including changes in water quantity. quality. and ?ow direction. contamination with
acid and leached metals resulting from AMD and tailings disposal facility failures. and more. It

Neil Kornzc 16

is also well established that this enviromnental damage can adversely affect fish populations and
aquatic ecosystems directly and by indirect effects on food supplies and habitat. Recognizing this
potential harm, the second edition Rainy-Lake ofthe Woods State of the Basin Report (2014)
recommends scientifically examining the effect of new mining proposals on water quality in the
Rainy River Watershed.

TMM's leaseholds lie within the Rainy River's Birch Lake Sub-Watershed (HUC 10) which the
SN has identified as a priority watershed per the Watershed Condition Framework. The
Framework is a comprehensive approach for: 1) evaluating the condition of watersheds, 2)
strategically implementing integrated restoration. and 3) tracking and monitoring outcome based
program accomplishments. According to the Watershed Restoration Action Plan for Birch Lake
the watershed is currently functioning at risk. based on fair ratings for aquatic biotic condition.
water quality condition, aquatic habitat condition. soil condition. and tire effects/fire regime
condition. The Action Plan recognizes that further development in the watershed has the
potential to move the watershed from its suboptimal level of functioning at risk to the worst level
ofimpaired functioning.

As noted previously. the BWCAW and SNF are home to dozens of sensitive species. Three
species, the Canada Lynx. gray wolf and northern long-cared bat, are listed as threatened.
Crucially. the BWCAW and SNF are considered critical habitat for the threatened Canada Lynx,
which requires spruce-fir boreal forest with dense understory. Canada cover large areas,
traveling extensively throughout the year, meaning that development and habitat fragmentation
can affect the viability of populations.

The threatened northern long-cared bat lives in both Lake and St. Louis County. where 
leases are located. The northern long-cared bat spends its winter hibernating in caves. In summer
it roosts in both live and dead trees, as well as caves. Northern long-cared bat populations are
under signi?cant stress from White-nose which has caused drastic declines in bat
populations across the country. Increased impacts to their habitat could exacerbate population
decline.

The gray wolf population in the western Great Lakes, including the BWCAW. was rc-listed as
threatened in 2014 by the Fish and Wildlife Service. Gray wolves also cover large areas to hunt.
so wolf populations can be impacted by development and habitat fragmentation. Other animals
benefit from wolves living in northern Minnesota as carcasses wolves leave behind feed many
other animals.

Northern Minnesota is one of the few places in the continental US. where visitors can see
moose. However, the state?s iconic moose population continues to decline decreasing by
approximately 60 percent in the last decade. according to Minnesota?s State Department of
Natural Resources. Given this population decline. the US. Fish and Wildlife Service (FWS)
initiated a status review for the US. population of northwestern moose those in Michigan
and Minnesota). The status review was initiated as a result ofa positive 90-day finding on a
petition to list moose under the Endangered Species Act. FWS determined information in the
petition provided substantial scientific or commercial information indicating that species listing
may be warranted.

Neil Kornze l7

Moose often gather around ponds. lake shores. bogs and streams where they feed on aquatic
vegetation. They are under stress from climatic change, likely due to a greatly increased number
ofticks brought about by warmer summers. Therefore they are ever more dependent on the
extensive, high quality habitat available in the BWC AW. Additional development. such as
mining activity and associated road building. in the vicinity ofthe BWCAW could lead to habitat
fragmentation that may further stress the moose population. While contamination of BWC AW
waters by acid and leached metals could lead to habitat degradation that would also add to the
moose population?s stress.

The potential impacts of mining activities also could affect other species dependent upon
forested areas through habitat fragmentation, increased dispersal of invasive plant and animal
species, and alterations to wildlife migration and residence patterns.

Social and Economic Considerations

The State of Minnesota has primary responsibility under the Clean Water Act of I972 to protect
the water quality ofthe BWC AW and identi?es the wilderness area as an ?outstanding resource
value water" under Minnesota Rules (Minn. R. 7050.0180). That section also provides that 
person may cause or allow a new or expanded discharge of any sewage. industrial waste. or other
waste to waters within the Boundary Waters Canoe Area Wilderness."

On March 6, 2016. Minnesota Governor Mark Dayton sent, and publicly released. a letter to
TMM stating that he had directed the State's Department ofNatural Resources "not to authorize
or enter into any new state access or lease agreements for mining operations on those state lands?
near the BWC AW. The Govemor stated he has grave concerns about the use of state surface
lands for mining near the BWCAW:

concern is for the inherent risks associated with any mining operation in close proximity
to the BWC AW and about the State of Minnesota's actively promoting advancement of such
operations by permitting access to state lands."

?As you know the BWCAW is a crown jewel in Minnesota and a national treasure. It is the most
visited wilderness in the eastern US. and a magnificently unique assemblage of forest and
waterbodies, an extraordinary legacy of wilderness adventure, and the home to iconic species
like moose and wolves. I have an obligation to ensure it is not diminished in any way. Its
uniqueness and fragility require that we exercise special care when we evaluate signi?cant land
use changes in the area. and I am unwilling to take risks with that Minnesota environmental


As a partner in managing and conserving natural resources within the State ofMinnesota. the FS
takes Governor Dayton?s statements seriously. The l? shares many ofthe Govemor?s concerns.
These shared concerns also support the decision to withhold consent to renewal of leases MNES-
0l352 and MNES-0153.

The FS was aware ofnegative public sentiment regarding other mineral related projects on
nearby SNF lands and many people?s concern about the possible renewal of leases 352
and Consequently. on June 13. 2016 the FS announced it would provide a 30-day
public input period commencing June 20. 2016 and including a listening session on July 13.

Neil Kornze 18

2016 to better understand public views about renewal ol?TMM?s two leases. A second listening
session on July 19. 2016 was subsequently announced.

Individuals and organizations expressed passionate views both in support of and opposition to
renewing the leases during the input period and listening sessions. In addition. TMM submitted
comments for the record during the public input period. Overall the FS received over 30.000
separate communications is response to the listening sessions. In total. this input provided FS
decision makers the fullest possible understanding of public views and concems regarding the
proposed lease renewals.

Local sentiment is similarly mixed regarding the desirability of TMM developing a mine on the
lands subject to its two leases. Northeastern Minnesota has a long history of mining. and much of
the local economy along the Iron Range remains dependent on iron mining. Ely, Virginia, and
other local communities. have a long-standing social identity associated with mining. During the
two listening sessions, elected officials. union representatives, and miners expressed their
concerns regarding the future of these communities, mining-associated tax revenues that support
schools and local services. and high-paying jobs for future generations. These mining proponents
often cited the potential economic benefits of mining. should TMM develop a mine on its leases.
They also stated that young people and families are leaving the area due to a depressed local
economy. Mining proponents also referred to the need for strategic metals for American
industry and national defense. including their use in sustainable technologies such as wind
turbines and hybrid cars.

Those who oppose development ofa mine on the lands subject to its two leases
emphasize the copper-nickel mining industry?s history of causing serious environmental harm.
the potential mine?s proximity to the BWCAW, the interconnected hydrology of the leased lands
and the BWCAW, and the probable negative impacts to water quality. quantity and aquatic
ecosystems from any mine TMM establishes. These mining opponents often stated
that mining has created a boom-bust economy that only now has stabilized with the creation of
sustainable recreation-based jobs reliant on an unspoiled environment. They also raised concerns
about the probable negative impacts any mine would have on the quality of individuals?
future recreational experiences in the BWCAW. maintenance ofthe BWCAW's wildemess
character, and preservation of the BWCAW for future generations.

In its Technical Report on Pre-Feasibility Study. TMM estimates the company?s initial capital
investment for mine construction will be $2.77 billion while over the projected 30-year life ofthe
mine its total capital investment will be $5.41 billion. TMM also estimates the potential
economic contributions of mining the copper-nickel deposits underlying its two leases could
include the need for close to 12 million labor hours during the estimated three-year mine
construction period and approximately 850 full-time jobs when the mine becomes operational.

Based on accepted multipliers ofdirect and indirect economic contribution. mining
operations predicated upon its two leases might generate approximately 1.700-l.900 additional
indirect jobs in the region?s economy.

onversely. across the country. counties with designated wilderness areas are associated with
rapid population growth, greater employment. and enhanced personal income growth. relative to

Neil Kornze l9

counties lacking wilderness areas. This is attributable to the increasing mobility of service jobs.
and many entrepreneurs? preference to locate their businesses in areas offering a high quality of
life. Speci?cally. up to 150,000 visitors visit the BWCAW annually. liconomic benefits
generated by BWCAW-related recreation have been estimated at approximately $44.5 million
annually. The wildemess recreation-based tourism and any derivative economic return is
dependent upon preserving the natural quality and wilderness character.

With passage of the Boundary Waters Canoe Area Wilderness Act in 1978. the business model
ofindustrics and communities associated with the BWCAW shifted. Timber production was
halted. Many resorts located within the wilderness were bought out by the federal government
and others received financial assistance to shift to a wilderness based business model. Gateway
communities such as Ely, 'l?ofte and Grand Marais have also shifted to wilderness based
economies. While the transition has been long and often difficult these communities are now
highly dependent on revenue generated by the BWCAW for economic sustainability. Potential
unforeseen impacts to natural resources and water quality within the BWCAW would likely
result in substantial economic impacts to established local businesses and communities now
dependent upon a wilderness based business model.

On April 15, 2015, Congresswoman Betty McCollum (D-MN) introduced the National Park and
Wilderness Waters Protection Act (HR. 1796). The Act would withdraw all federal lands in the
Rainy River Watershed from the mining laws, the mineral leasing laws, and the laws governing
the disposal of mineral materials. subject to valid existing rights. The Act also would impose
additional restrictions on the issuance of any lease or permit for mineral related activities. In a
February 2, 2016, letter to the Secretaries of Agriculture and the Interior and the Director of
CEQ, Congresswoman McCollum urged them "to immediately take action to protect two of
America?s natural treasures the BWC AW and Voyageurs National Park." Specifically,
Congresswoman McCollum requested the denial of'l?MM?s requested lease renewals and
administrative withdrawal of the Rainy River watershed.

Former Vice President?and former Minnesota Senator?Walter Mondale also has advocated
that the Department ofthe Interior deny the renewal ofTMM?s leases and withdraw all federal
minerals in the watershed. On April 1. 2016. he wrote that "Arizona has its Grand
Canyon, Wyoming its Yellowstone. California, its Yosemite. These wonders come to mind
unbidden as images ofa place when those states are named. The Boundary Waters is such an
image for Minnesota." Vice President Mondale goes on to say:

?Vice President Hubert Humphrey and 1 were deeply committed to protection of the Boundary
Waters and its precious waters. Although we were mindful of the need for jobs. we knew that it
was important to protect the magnificence of the Boundary Waters. The Twin Metals mining
proposal lacks this balance. That means that today I join Minnesota's Gov. Mark Dayton and
urge the federal land management agencies to continue the work of nearly 100 years and to
ensure that the Boundary Waters wildemess remains the place it is today.?

Then in a July 1. 2016 letter characterizing the BWCWA as pristine and irreplaceable
wilderness. Vice President Mondale wamed that the kind of heavy-metal mining that TMM
proposes:

Neil Kornze 20

. .is in a destructive class all its own. Enormous amounts of unusable waste rock containing
sul?des are left behind on the surface. A byproduct of this kind of mining is sulfuric acid. which
often ?nds its way into nearby Similar mines around the country have already
poisoned lakes and thousands of miles of streams. The consequence of acid mine drainage
polluting the pristine Boundary Waters would be catastrophic. It is a risk we simply can?t take."

Conclusion

The PS understands the important economic and national security bene?ts provided by mineral
extraction and supports mining as a legitimate activity on NFS lands. However. mining is not
appropriate on all places within the NF or on every acre oleiS lands. When evaluating
whether to consent to issuance of an initial lease or the lease's renewal. the FS may consider the
unique ecological and cultural attributes ofall NF lands that might be adversely affected by
mineral development on the leasehold along with the social and economic consequences that
could ?ow from both a decision to consent and to withhold consent. The FS also has an
af?rmative responsibility to protect and maintain the character and quality ofthe BWCAW and
MPA for present and future generations. Sec. 2, Pub. L. 95-495, 92 Stat. 1649 (1978). Thus the
agency may weigh the possible bene?ts of potential mineral development against the
possible harm 'l?MM?s potential mineral development might do to the uniquely
valuable landscape.

potential mineral development on its two leaseholds might contribute markedly to
employment and economic growth in St. Louis ounty, Lake County. and nearby areas. opper-
nickel mining conducted by TMM also would furnish metals important to US. industries and
modem technology. Deposits ofcopper are relatively abundant in the United States and many
operating copper mines in the United States are situated in arid or drier areas ofthe Nation where
their potential for environmental harm may be reduced. The United States Geological Survey
reported that as 01?2015 there was only one operating nickel mine in the United States but
nonetheless nickel was in oversupply and three other US. mining projects that would supply
nickel were in development.

The BWC AW contributes to the cultural and economic sustainability ofcommunities within the
State of Minnesota. the Nation and beyond and to the ecological sustainability of unique
landscapes and rare species dependent upon those landscapes that are valued within the State of
Minnesota. the Nation and beyond. The BWC AW is irreplaceable. but likely irreparable in the
event of its signi?cant degradation.

Based on information provided by TMM to date its Technical Pre-Feasibility Report).
existing science. and examination of similar proposals. there is no reason to doubt that the
mining operations TMM hopes to eventually conduct could result in AMD and concomitant
metal leaching both during and after mineral development given the sought after copper-nickel
ore is sul?dic. This fact is very signi?cant given two leases are adjacent or proximate to
the BWC AW and within the same watershed as the wilderness. it might be possible for TMM to
develop a mine which employs mitigation and containment strategies that reduce the mine?s
potential to cause AMD and leached metals that could harm the wildemess. However. at the very
least it is equally possible that available water treatment technologies would be unable to prevent
the spread of any AMD and leached metals in the watershed. Further. there appears to be even

Neil Kornze 2 

less likelihood that any contamination ol?the BWC AW resulting from mining operations
could later be remediated, especially not in a manner compatible with the BWCAW's wilderness
character. Moreover, any degree ofcontamination ot'the BWC AW by AMD and leached metals
has the potential to seriously degrade the wilderness area?s character and quality. Thus. even if
the probability that TMM's mining operations might generate and release and leached
metals was very low, which the FS does not believe to be the case? the environmental harm to the
BWCAW that could result from any contamination of the area with AMD and leached metals
might be extreme. Failing to prevent such damage also is contrary to Congress? determination
that it is necessary to ?protect the special qualities ofthe as a natural l'orest-lakeland
wilderness ecosystem of major esthetic. cultural, scientific, recreational and educational value to
the Nation.? Sec. 1. Pub. L. 95-495. 92 Stat. 1649 (1978).

Balancing what are primarily economic bene?ts of the mining operations that TMM hopes to
conduct in connection with the renewal of its two leases against even a remote possibility of
damaging the unique ecosystem that Minnesota elected of?cials have tittingly
called irreplaceable and a national treasure?makes it clear that it is incumbent upon the l: to
withhold consent to the renewal of 'l?MM?s leases and 

This decision withholding consent to the renewal ol?TMM?s leases is subject to discretionary
review by the Under Secretary for Natural Resources and Environment pursuant to 36 C.F.R. 
but not appeal pursuant to 36 CPR. part 214 (36 CPR. No additional
information may be considered by the Under Secretary for Natural Resources and Environment
in connection with the discretionary review ofthis decision (36 CPR. 

Sincerely.

?mim

THOMAS L. 
Chief

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