State wants Casper Mountain gravel mine developer to ‘relinquish’ rights in light of opposition

The Wyoming Board of Land Commissioners on Thursday voted unanimously to explore how the state might negotiate with a gravel mining company to voluntarily “relinquish” leases that allow it to pursue a mining project at the base of Casper Mountain and possibly compensate the developer for fees already paid to the state.

How much the state might have to compensate the company, and where the money might come from, is still an open question for the state.

The surprise action came after several hours of public comment and testimony from state regulators, despite the fact that the board did not provide prior public notice that any action might be taken on the matter.

Negotiations may already be off to a bad start.

It was an “embarrassing day for our state,” said Kyle True, who manages Casper-based Prism Logistics, the company that legally acquired exploration leases on several state trust land sections last year. 

True’s testimony to the commission drew a chorus of mocking laughter from some opponents in an audience of about 300 at the Thrya Thomas Building in Casper, spurring Gov. Mark Gordon to call for “some decorum.” True said he is committed to submitting detailed mining plans later this year and addressing neighbors’ concerns in a series of future public forums that are not mandated.

After the meeting, however, True told reporters he was “surprised” at the commission’s actions.

“What we just heard is people brought questions,” True said. “The company was willing to respectfully address those questions. And instead of waiting for those questions to be addressed, [it] was assumed that what the company was doing was nefarious.

“And now the state land board is trying to find a way to undo the leases,” True continued, “or [Secretary of State] Chuck Gray wants to open lines of attack. And we were personally referred to as two of the seven deadly sins: greed and avarice.”

The Board of Land Commissioners is made up of Wyoming’s top five elected officials: the governor, auditor, treasurer, secretary of state and superintendent of public instruction. Gray brought several failed motions before the commission unanimously approved one directing Office of State Lands and Investments Director Jenifer Scoggin to “explore how [the agency] could enter into an agreement to relinquish [the] leases.”

All five commissioners voted last year to approve the lease requests, which were not debated but included on a consent list.

To date, Prism Logistics has dug several small exploration pits to measure the potential gravel resource, and it has done so in full compliance with state rules and regulations, according to a fact sheet compiled by the Board of Land Commissioners staff. Prism has yet to submit permit applications with state regulatory agencies to move forward with a mining operation.

“I think we’d like to move forward with that [permitting and review] process,” True told commissioners before the surprise motions were introduced. “As we complete our analysis, we are working to minimize any cultural and social impacts that may be unique while still harvesting the valuable resources there and working with [the Wyoming Department of Environmental Quality] in protecting all of the natural resources and water.”

Mining opposition

The state trust lands targeted for potential gravel mining sit at the base of Casper Mountain and encompass Platte Creek, Wolf Creek and several other small drainages to the nearby North Platte River. The state lands are also surrounded by hundreds of homes and several ranching operations, which rely on shallow water wells for domestic and agricultural use.

The greater Casper Mountain area is a popular destination for hiking, skiing and camping.

Residents were unaware the state had issued gravel mine exploration leases on the state lands until some noticed a trackhoe digging in the area, resulting in a flood of phone calls and emails to state officials and lawmakers in February.

Since then, opponents have formed the Casper Mountain Preservation Alliance and have collected more than 5,000 signatures opposing any state or local actions to approve gravel mining in the area. The group is also calling for reforms regarding public notice and reviews of such actions on state trust lands.

Residents are concerned that mining in the area may impact water wells, generate clouds of dust and hammer roads that are not built for industrial traffic.

Water “is the most valuable resource that our world actually has — not gravel,” area resident Jason Knopp told the commission. “Water is what we need to survive. We don’t go around eating rocks.”

The Office of State Lands has been derelict in its duty to state residents to notify them of potential impacts resulting from leasing actions, Casper Mountain Preservation Alliance organizer Carolyn Griffith said.

“It’s difficult for me and others to understand why is it now the responsibility of the homeowners, city of Casper and adjoining county citizens to bear the burden of proof that leasing state lands to a gravel mining operation on the face of Casper Mountain is unsuitable,” Griffith said.

The prospect of an industrial mining operation in the area is “stressing these people to death,” area resident Tracy Lamont said. “Let’s find an alternative for Kyle [True] to mine gravel because we need it, but I’m just asking you, Kyle, to give it some reconsideration.”

Residents also criticized a complex web of divided authorities and duties related to permitting such operations, including a “limited mining operation” exemption that precludes the Department of Environmental Quality from requiring extensive environmental reviews for mining operations smaller than 15 acres.

Wyoming DEQ officials noted that, even with a limited mining exemption, a proposed gravel mining operation must still undergo reviews for air emissions, stormwater drainage and surface water quality. Questions regarding whether such an operation might disturb aquifers, water wells or water rights must be taken up with the State Engineer’s Office.

True said Prism Logistics plans to comply with existing rules and regulations and will try to address residents’ concerns, telling reporters, “If there were concerns that I thought we couldn’t address, we wouldn’t move forward.”

Correction: Platte Creek replaced the name of a creek no longer used by the U.S. Geological Survey. —Ed.