MINUTES OF THE
SENATE COMMITTEE ON NATURAL RESOURCES
Sixty-seventh Session
February 17, 1993
The Senate Committee on Natural Resources was called to order by Chairman R. Hal Smith, at 8:50 a.m., on February 17, 1993, in Rooms 205/206, Cashman Field Center, Las Vegas, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator R. Hal Smith, Chairman
Senator Dean A. Rhoads, Vice Chairman
Senator Mark A. James
Senator Joseph M. Neal, Jr.
Senator Thomas J. Hickey
Senator Dina Titus
Senator Ernest E. Adler
STAFF MEMBERS PRESENT:
Caren Jenkins, Senior Research Analyst
Caroline Allen, Committee Secretary
OTHERS PRESENT:
Jan Cole, Real Estate Broker/Owner, Nevada and Montana Investments, Inc.
Steve Weaver, Chief, Planning and Development,
Division of State Parks
David Wolf, Red Rock Canyon Manager, Bureau of Land Management
* * * * *
Jan Cole, Real Estate Broker/Owner, Nevada and Montana Investments,
Inc., introduced herself to members of the committee. Ms. Cole
informed the committee members the real estate company was founded
in the spring of 1991. Ms. Cole's introduction of presentation is contained in Exhibit C, handout entitled, "Valley of Fire State
Park Land Exchange."
Ms. Cole drew attention to a 1-page handout, Area Map/Las Vegas Valley
(Exhibit D). She explained how the gypsum vein goes down through the
property giving detailed information of distance being about 3 1/2
miles long, approximately 20-80 feet wide, (depending on the
individual's location on the vein) and 300 feet deep. Ms. Cole
further stated the lifetime of the mine is approximately 20 years.
Ms. Cole expressed her concern for the Red Rock area that is also
involved on this claim. She drew attention to the committee of the
amount of Red Rock (Exhibit D) that is involved in this claim,
speculating this to be a 420-acre parcel, approximately 100 acres
having red rock cliffs on it. She explains from Exhibit D how the
vein runs just below the red rock cliffs all along the way. Ms. Cole
stated how landscaping with red rock is becoming more and more popular
in the state, the value of red rock itself could motivate someone
to purchase this land as a rock quarry.
Ms. Cole mentioned others present who she worked with on her project,
specifically, David Wolf, Manager Red Rock Canyon, Bureau of Land
Management, Steve Weaver, Chief, Planning and Development, Division of State Parks, John Richardson Administrator, Division of State
Parks, Ben Collins, District Manager and Gary Ryan. She also
thanked R. Hal Smith, Chairman, for his consideration of her
presentation to the senate committee.
Senator Hickey asked Ms. Cole how long had her company owned the
property?
Ms. Cole stated her company had owned the property since about
1989.
Senator Hickey asked how much improvement had her company put on the
property since 1989?
Ms. Cole expressed at some point the company was taking about 250 tons of rock a day.
Senator Hickey asked what was the investment of equipment used for
this property?
Ms. Cole stated the company's investment was about $1 million in
equipment.
Senator Hickey asked was the investment for equipment used on the
property?
Ms. Cole stated the equipment that was used was shown on the
slides.
Ms. Cole proceeded to show video of the Division of
State Parks. As Ms. Cole narrates from the film, there are
questions from committee members.
Senator Hickey asked what kind of standards were required to make
this area environmentally correct to make a land trade?
Ms. Cole did not give an immediate response to Senator Hickey's
question.
Senator Hickey further indicated the committee would need an
assessment of that value of gypsum.
Ms. Cole stated the appraisal process would have to be done and
mentioned Steve Weaver would expound on that matter.
Senator Neal asked if the vein was 3 1/2 miles and how much of that
had been mined?
Ms. Cole, nor Steve Weaver were sure of how much of the vein of
gypsum had been mined.
Steve Weaver directed attention of the committee to Exhibit E,
that is, a map of the recommended plan of the Valley of Fire State
Park. He gave thorough details of the boundaries of the Valley of
Fire State Park.
Senator Hickey asked who owns the road along the Valley of Fire
State Park?
Mr. Weaver stated part of the road is within the park, part is
owned by BLM (Bureau of Land Management) and parts are within
private property.
Senator Hickey asked why would they provide a mining company road
access and not allowances to the public, since the main thrust in
services is to the public?
Steve Weaver stated the public has used the road illegally and are
barred primarily for safety reasons.
Senator Hickey asked who made the safety determinations on that road?
Steve Weaver indicated his organization did and the mining company
was concerned about safety procedures, as well.
Senator Hickey asked on what data did they base that decision?
Steve Weaver indicated the road was winding with dangerous curves.
Senator Hickey asked if the primary mission of this decision was to
determine what is safe or unsafe?
Mr. Weaver stated it wasn't their primary reason, but this reason for
safety was taken into consideration.
Senator Hickey asked if it would be safe to say that other companies
provide their own roads?
Mr. Weaver stated the mining company developed and built this road,
indicating originally it had only two tracks.
Further discussion ensued concerning access to the mine.
Senator James asked if the mining company had an easement that
encumbers the land and also if the law was clear on what Mr. Weaver
had mentioned earlier that there was a danger of expanding this
mining operation to the red rock?
Mr. Weaver's response was that within the mining claim itself, the
law was clear that they could develop that land for the aggregate
purposes, that the surface portions could be broken up into boulders
to be used for landscaping.
Senator James asked if Mr. Weaver understood this, pertaining to the
law, patent in mining claim covers taking out red rocks for
landscaping purposes?
Mr. Weaver indicated in a patented mining claim, they could basically
do what they like, that the federal government has no concern.
Senator James asked if this was a fee-simple ownership?
Mr. Weaver agreed the patent owned represents a fee-simple ownership.
Senator James asked if there would be any way this arrangement would
give them the right to every kind of a mineral that exists on the
property?
Mr. Weaver indicated to Senator James this indeed would,
unless they got a legal expert that could dispute his question.
Senator Adler explained the process of the claims indicating that
the claim reads, "patent and mining claim" and it does not say
for gold or gypsum or rock, etc.
Ms. Cole stated when filing this kind of claim, it is not
necessary to be specific.
Mr. Weaver continued to make his presentation from Exhibit E. He
also alluded to Exhibit F, the recommended development plan site
analysis.
Senator Neal's reference to purchase of the Pine Creek area by the
state in 1973 and acquiring of the water rights, as well, asked if
Mr. Weaver was saying in the transaction of this three-way transfer
to BLM (Bureau of Land Management), would in turn, somehow use this
transaction as a transfer to acquire the man's claims?
Mr. Weaver stated BLM (Bureau of Land Management) would end up with
the Pine Creek property and it would become part of and managed as,
part of the national conservation area.
Senator Hickey mentioned he had just met with BLM earlier that morning he was informed there was inadequate funding relating to support of
any project.
Mr. Weaver further expounded on his explanation for financial support
of the project.
Senator Hickey stated he'd much rather hear the funding organization
itself of their proposed actions toward that project.
In summary, Mr. Weaver stated this transfer of Pine Creek property
would only enhance BLM's protection compared to current state park's
management capabilities, referencing to Exhibit G, "Proposed Land
Trade, Valley of Fire State Park and Red Rock Canyon."
Senator Smith mentioned this was only a preliminary proposal the
committee would be thinking about, that no decision has been made yet
and he had brought this project to the attention of the committee
because he thought it was worthwhile to pursue it. He stated there
were details that would be resolved as time goes on.
Senator Smith stated there were three willing participants regarding
this project, the mining people, state parks and the Bureau of Land
Management. He then asked David Wolf to proceed with his
participation to the project.
David Wolf introduced himself to the committee as Manager of the Red
Rock Canyon National Conservation Area for the Bureau of Land
Management. He said he appreciated the opportunity of being able to
speak on behalf of this project, that there was a close tie between
the national conversation area and the spring mountain ranch, also
stating Valley of Fire State Park as being one of the premiere places
to see in the state of Nevada residents and visitors. He gave his
presentation from Exhibit H.
Mr. Wolf stated it is and as had been mentioned, this is a complicated
proposal, it involves federal, state and private lands. He agreed
with what Steve Weaver had stated about this project being a win, win, win situation if they could get it worked out for equal value of
properties between the three. He said to the committee BLM
wanted to work with them and the proponent to make this a successful
venture.
Mr. Wolf stated their exclusive interest in this project is to benefit the Valley of Fire State Park.
Mr. Wolf further stated that many years ago, they identified
in their land use long-term planning, that acquisition of the
80-acres in Pine Creek would be beneficial to the Red Rock Canyon
National Conversation area. But he stated in no way does that imply
this project would be better managed under BLM, indicating they
have an excellent working relationship with the Division of State
Parks and the Spring Mountain Ranch.
Mr. Wolf indicated the proponent that Jan Cole is working with has an
interest in acquiring some BLM property that is in with the City of
Las Vegas. The state parks has identified desire to acquire the
420-acres. It turned out in discussions that BLM could be the
conduit to make this happen, were they to effect an exchange with
the proponent from the mine for a piece of BLM in Las Vegas.
Mr. Wolf stated they would then have a piece of property (the mine
site) that they could trade with the Division of State Parks for their
lands within the National Conservation area.
Chairman Smith interjected by noting from his understanding of NRS
323.100 of 1989, which allows the state land registrar to exchange
land of equal value, that it doesn't appear (as he thought) this
proposal requires a special act.
Chairman Smith indicated this somewhat changes what they're
attempting to do in their decision-making, stating he didn't even
know why the presentors were there before the committee.
Mr. Weaver responded by stating this project does require IFC and
board of examiner's approval, indicating that was their reason for
being before the committee to let them know in advance of what they
are up to and there were no ulterior motives because they were only
looking out for the best interest of the public in the three-way
trade.
Senator James stated he thought this was an ingenious type of trade
and this is what the committee is looking at, in terms of
environmental protection, that these types of removals of commercially
used land, such as this, through mechanisms do not devolve on the
public trust (dollar).
Senator James also asked if there was a regulatory agenda for funding
analysis that BLM looks at that makes this project attractive, or any
other proposal, that they haven't heard of that the state could get out of the deal in taking over the 80-acres of Pine Creek?
Mr. Wolf stated in terms of what land they would be trading, when a
firm proposal is presented to them, Bureau of Land Management,
there's offered selective lands. He indicated in this case,
the offered lands are the 420-acres parcel mentioned earlier by
Ms. Cole ( a proponent that Jan Cole represents). The selective
lands being the lands they would like to get into private
ownership. If they give up, in this case, the 420-acre parcel,
stating the proponent had not given them a firm proposal yet,
and he further explained the procedure when the proposal is given.
Senator Hickey asked in relating to the 420-acres being proposed,
if there will be required environmental assessment of that property
in transfers?
Mr. Wolf stated there would be an environmental assessment of all
the properties.
Considerable discussion ensued concerning the three-way transaction.
Senator Adler stated he thought this was a good land exchange and he
would like to commend all the parties for the hard work they had done, further expressing how he thought this would be an asset to the State
of Nevada.
Senator James also expressed encouragement to the presenters
of an opportunity to remove a mining operation from one of the state
parks. He expressed this was something that should be pursued,
adding he was glad to see them before the committee filling in the
committee.
David Wolf summarized by adding any lands that will be traded within
Las Vegas will be lands that have already been identified in the
BLM's land use plan for disposal in the valley, for economic
development.
Senator Smith concluded the hearing by thanking Jan Cole and the other
presenters and stated the committee was in favor of what they were
doing.
* * * * *
There being no further business before the Senate Committee on
Natural Resources, Chairman Smith adjourned the hearing at
10:20 a.m.
RESPECTFULLY SUBMITTED:
Caroline Allen,
Committee Secretary
APPROVED BY:
Senator R. Hal Smith, Chairman
DATE:
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Senate Committee on Natural Resources
February 17, 1993
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