Howard sand mine deal hailed as model for others
Sand mine site
- Sand in Demand
- Mining companies have shown particular interest in the sand available in parts of the Upper Midwest, including western Wisconsin, because it has just the right characteristics for hydraulic fracturing, or “fracking,” and is close enough to the surface to make its removal economically viable.The sand grains are the ideal size, shape and hardness to keep existing cracks in the rock open, making it easier to extract natural gas.
- Sand Mine Agreement
- The developer’s agreement between the Chippewa County town of Howard and EOG Resources of Texas stipulates:- EOG Resources will replace any water wells if contaminated. EOG also will test for the chemical known as acrylamide, a possible human health hazard.- Noise levels from the site must not top 60 decibels at the boundary of the property.
- Blasting will be allowed only between 10 a.m. and 3 p.m.
- Light pollution must be controlled, with lights not pointed up and away from the site.
- A fair market property value guarantee for homes that are adjacent to the sand mine. EOG will either buy the property at market value or will make up the difference if the property is sold below market value.
- EOG will obtain a 20-year license and will not have to reapply every year.
- There will be no mining, blasting or hauling from the site from May 1 through Oct. 15 each year. The company will be allowed to prepare the land and work on reclamation only.
- The company will be allowed to haul sand 24 hours a day, six days a week, through the late fall, winter and early spring months, except during peak travel times. Sand won’t be hauled to the plant on Sundays.
- The company cannot haul more than 600,000 tons of material from the mine site. The company will provide a monthly report to the town of Howard with an updated total on how much material has been removed.
- Trucks will be allowed to use county highways only to get from the mine site to the sand processing plant in the northeast corner of Chippewa Falls.
- The agreement ends Dec. 31, 2031.
Chris Vetter
Posted: Friday, July 29, 2011 12:29 am | Updated: 12:34 am, Fri Jul 29, 2011.
By Chris Vetter Leader-Telegram staff | 1 comment
CHIPPEWA FALLS – An agreement announced Thursday between the town of Howard and the company overseeing a Chippewa County sand mine, EOG Resources, includes public protections that could serve as a model for other communities where mining requests are popping up with growing frequency.
The agreement announced Thursday is believed to be the first nonmetallic mining pact in Wisconsin. It comes amid growing concern about the impact of sand mines on their surroundings as the number of mining requests across northwestern Wisconsin is growing substantially, with 22 such mines operating or permitted in this part of the state and another 16 seeking permits.
The sand is used to extract natural gas from the ground.
The regulations are noteworthy given that the town of of Howard is not zoned, making it more difficult for town officials to regulate mining operations.
“The agreement establishes a high standard to which other mining companies should aspire if they want to be good neighbors,” said Vernon Schindler, Howard town chairman. “Because EOG was willing to work through the issues as good neighbors, EOG has earned the Town Board’s respect and established itself as a model of corporate responsibility in an age when that is sadly too often lacking.”
The deal includes a number of regulations intended to protect residents living near the mine, most notably that mining will be prohibited from May 1 through Oct. 15. It also requires testing for acrylamide, a possible human health hazard.
Other provisions regulate such issues as well water replacement, noise monitoring, time limits on sand blasting and sand hauling, and a policy for offering fair market value to nearby residents who wish to sell their property.
Texas-based EOG will be allowed to haul sand at the site all day and night Mondays through Saturdays during late fall, winter and early spring. No hauling will be allowed on Sundays. No mining, blasting or hauling from the site will be allowed from May 1 through Oct. 15.
The agreement also stipulates that the company does not need to reapply to operate the mine on an annual basis, essentially allowing the mine to operate for the next 20 years.
“We are pleased to have reached a cooperative agreement with the town of Howard officials,” said Curt Parsons, EOG Resources general manager of shared services.
Charlie Walker, director of the Chippewa County Economic Development Corp., said the company received 500 applications for the expected 55 jobs created by the sand plant and mine.
“It speaks of the need for economic development and good-paying jobs,” Walker said.
Ron Koshoshek, a retired UW-Eau Claire professor who helped negotiate the agreement, praised the accord, saying it provides protections for town residents.
“This is a very novel approach for trying to balance the property rights of one neighbor and the property rights of another neighbor,” Koshoshek said of the deal.
Research indicates that homes within a quarter-mile of a mine site experience a 30 percent reduction in property value, Koshoshek said. One of the key components of the deal is that anyone who lives adjacent to the mine and has property on the market for six months but doesn’t receive a fair market offer can either sell it to EOG Resources for that value or to a buyer below market value, and EOG Resources will make up the difference.
Working out the deal during the past 14 months was anything but easy, said Koshoshek, who called the talks “difficult.”
EOG Resources has a permit to mine sand on a 185-acre site in the town of Howard, northwest of Chippewa Falls. The site is owned by Robert Schindler and Jeffrey Sikora, according to a reclamation plan filed with Chippewa County in February 2009.
The plan for mining the site was first announced in May 2008. Sand from the western half of Chippewa County is considered particularly hard and porous, which makes it ideal in the oil extraction process.
When plans for the mine first were announced, many town of Howard residents expressed concerns about property values, air and water quality, and increased traffic on roads.
“The agreement addresses some of the concerns we had and the framework to avoid disputes, hopefully,” said Ken Schmitt, a town resident and Chippewa County supervisor. “It was the best the town could do. It’s pretty obvious the mines are here, and we have deal with it.”
EOG Resources is building a sand plant in the northeast corner of Chippewa Falls on a nearly 100-acre site. The cost of building the plant is estimated at $45 million to $50 million. Sand from the town of Howard mine site will be trucked to the plant, where it would be washed and processed, then shipped by railroad to EOG Resources’ facilities in Texas. Construction began last year, and the plant is expected to open this fall.
Vetter can be reached at 715-723-0303 or chris.vetter@ecpc.com.
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