[House Report 105-824] [From the U.S. Government Publishing Office] Union Calendar No. 463 105th Congress, 2d Session - - - - - - - - - - - - House Report 105-824 MONUMENTAL ABUSE: THE CLINTON ADMINISTRATION'S CAMPAIGN OF MISINFORMATION IN THE ESTABLISHMENT OF THE GRAND STAIRCASE-ESCALANTE NATIONAL MONUMENT __________ R E P O R T of the COMMITTEE ON RESOURCES HOUSE OF REPRESENTATIVES together with DISSENTING VIEWSOctober 16, 1998.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed COMMITTEE ON RESOURCES DON YOUNG, Alaska, Chairman W.J. (BILLY) TAUZIN, Louisiana GEORGE MILLER, California JAMES V. HANSEN, Utah EDWARD J. MARKEY, Massachusetts JIM SAXTON, New Jersey NICK J. RAHALL II, West Virginia ELTON GALLEGLY, California BRUCE F. VENTO, Minnesota JOHN J. DUNCAN, Jr., Tennessee DALE E. KILDEE, Michigan JOEL HEFLEY, Colorado PETER A. DeFAZIO, Oregon JOHN T. DOOLITTLE, California ENI F.H. FALEOMAVAEGA, American WAYNE T. GILCHREST, Maryland Samoa KEN CALVERT, California NEIL ABERCROMBIE, Hawaii RICHARD W. POMBO, California SOLOMON P. ORTIZ, Texas BARBARA CUBIN, Wyoming OWEN B. PICKETT, Virginia HELEN CHENOWETH, Idaho FRANK PALLONE, Jr., New Jersey LINDA SMITH, Washington CALVIN M. DOOLEY, California GEORGE P. RADANOVICH, California CARLOS ROMERO-BARCELO, Puerto Rico WALTER B. JONES, Jr., North MAURICE E. HINCHEY, New York Carolina ROBERT A. UNDERWOOD, Guam WILLIAM M. (MAC) THORNBERRY, Texas SAM FARR, California JOHN B. SHADEGG, Arizona PATRICK J. KENNEDY, Rhode Island JOHN E. ENSIGN, Nevada ADAM SMITH, Washington ROBERT F. SMITH, Oregon WILLIAM D. DELAHUNT, Massachusetts CHRIS CANNON, Utah CHRIS JOHN, Louisiana KEVIN BRADY, Texas DONNA CHRISTIAN-GREEN, Virgin JOHN E. PETERSON, Pennsylvania Islands RICK HILL, Montana RON KIND, Wisconsin BOB SCHAFFER, Colorado LLOYD DOGGETT, Texas JIM GIBBONS, Nevada MICHAEL D. CRAPO, Idaho LETTER OF TRANSMITTAL ---------- House of Representatives, Committee on Resources, Washington, DC, October 16, 1998. Hon. Newt Gingrich, Speaker, House of Representatives, Washington, DC. Dear Mr. Speaker: By direction of the Committee on Resources, I submit the Committee's report to the 105th Congress on ``Monument Abuse: The Clinton Administration's Campaign of Misinformation in the Establishment of the Grand Staircase-Escalante National Monument.'' The report was adopted and ordered reported to the House of Representatives by voice vote on October 7, 1998. Sincerely, Don Young, Chairman. Enclosure. C O N T E N T S ---------- Page Introduction..................................................... 3 Committee Jurisdiction and Scope of Review....................... 4 History of Coal Mining on the Kaiparowits Plateau................ 6 ``Rope in the Kaiparowits''...................................... 7 National Environmental Policy Act (NEPA) Process for the Warm Springs Project................................................ 8 Ecological Consequences of the Warm Springs Project.............. 10 Socioeconomic Consequences of the Warm Springs Project........... 12 Abuse of the NEPA Process........................................ 14 Attachment 1: March 25, 1996, E-Mail Message..................... 19 Attachment 2: Excerpts from Warm Springs Project PDEIS........... 21 Attachment 3: March 27, 1996, E-Mail Message..................... 192 Attachment 4: April 9, 1996, Memorandum.......................... 195 Attachment 5: April 3, 1996, E-Mail Message...................... 197 Attachment 6: April 4, 1996, E-Mail Message...................... 199 Attachment 7: DOI Organizational Chart........................... 201 Attachment 8: June 21, 1996, E-Mail Message...................... 203 Attachment 9: September 16, 1996, E-Mail & Note.................. 205 Attachment 10: Maps.............................................. 207 ======================================================================= MONUMENTAL ABUSE: THE CLINTON ADMINISTRATION'S CAMPAIGN OF MISINFORMATION IN THE ESTABLISHMENT OF THE GRAND STAIRCASE-ESCALANTE NATIONAL MONUMENT ======================================================================= Introduction On September 18, 1996, President Bill Clinton stood in the Arizona sun on the rim of the Grand Canyon and announced the establishment of the 1.7-million-acre Grand Staircase-Escalante National Monument (Utah Monument), seventy miles away in Utah. He quoted Teddy Roosevelt and praised the beauty of the Utah lands he and Vice President Al Gore had chosen to ``protect.'' From what threat was the President protecting these lands? ``I am concerned about a large coal mine proposed for the area,'' the President said. ``[W]e shouldn't have mines that threaten our national treasures.'' \1\ --------------------------------------------------------------------------- \1\ Remarks Announcing the Establishment of the Grand Staircase- Escalante National Monument at Grand Canyon National Park, Arizona, 32 Weekly Comp. Pres. Doc. 1785 (Sept. 23, 1996). --------------------------------------------------------------------------- Far from threatening our national treasures, the mine project inappropriately killed by the Clinton Administration would have provided millions in funds for Utah's schoolchildren--which Clinton and Gore call ``the greatest resource in the country.'' \2\ --------------------------------------------------------------------------- \2\ Gore Pushes Technology, Better Pay for Teachers, Greensborough News & Record, May 29, 1997, at B5. --------------------------------------------------------------------------- At the time the Utah Monument was designated by Presidential Proclamation No. 6920, an environmental impact review of the ``large coal mine'' (the Smoky Hollow Mine) referred to by the President had been underway for nearly seven years.\3\ As required by the National Environmental Policy Act (NEPA), the Bureau of Land Management (BLM) and the Office of Surface Mining and Reclamation (OSM) had produced a comprehensive preliminary draft environmental impact statement (PDEIS) that was prepared for public comment. This report reviews that PDEIS and shows that the characterization of the project as a threat to the lands designated under the Antiquities Act was purely a pretext and not supported by the record. The substance of that review is contained in this report. --------------------------------------------------------------------------- \3\ Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996). --------------------------------------------------------------------------- The American public, watching the Escalante campaign event, may have believed the President when he warned of the mine's supposed impact on sensitive lands. People had no reason not to take the President at his word at that time. Documents and records obtained by the House Committee on Resources and reviewed in this report now show that the President's statement was as far away from accuracy as he was from Utah. The only thing the President was trying to protect by designating the Utah Monument was his chance to win reelection. The ``threat'' motivating the President's action was electoral, not environmental. The Utah Monument was designated pursuant to Section 2 of the Act of June 8, 1906 (Antiquities Act), which allows the President to reserve parcels of federal land as national monuments by public proclamation.\4\ The language of the Antiquities Act makes clear, however, that the land reserved ``shall be confined to the smallest area compatible with the proper care and management of the objects to be protected.'' \5\ The Act contemplates that objects to be protected must be threatened or endangered in some way. For example, a proclamation withdrawing Devil's Hole in Nevada was upheld in court because it was not solely for the purpose of preserving the unique limestone formations in Devil's Hole pool, but also to protect the endangered pupfish from possible extinction due to agricultural use of the pool's water.\6\ --------------------------------------------------------------------------- \4\ 16 U.S.C. Sec. 431 et seq. \5\ ID. \6\ U.S. v. Cappaert, 508 F. 2d 313 (9th Cir. 1974), aff'd, 426 U.S. 128 (1976). For further discussion of Congressional intent regarding the limited application of the Antiquities Act see the House debate at 40 Cong. Rec. H7888 (June 5, 1906). See also Report to accompany S. 4698, Rpt. No. 3797, 59th Cong., 1st Sess. (May 24, 1906). --------------------------------------------------------------------------- It follows that for the designation of the Utah Monument to be proper its lands had to be somehow threatened or endangered. The Clinton Administration knew that they were not. In a March 25, 1996, email message to T.J. Glauthier at the Office of Management and Budget (OMB) and Linda Lance at the Council on Environmental Quality (CEQ), Kathleen McGinty (the Chair of CEQ) stated her doubts about the planned designation: I'm [sic] increasingly of the view that we should just drop these utah [sic] ideas. we [sic] do not really know how the enviros will react and I do think there is a danger of ``abuse'' of the withdraw/antiquities authorities especially because these lands are not really endangered.\7\ [Emphasis added.] --------------------------------------------------------------------------- \7\ Staff of House Comm. on Resources, Behind Closed Doors: The Abuse of Trust and Discretion in the Establishment of the Grand Staircase-Escalante National Monument, H.R. Rep. No. 105-D, 105th Cong., 1st Sess. at 28 (Comm. Print 1997) (emphasis added). Attachment 1. To have at least the appearance of credibility, the President had to point to some sort of threat. As far as the Clinton Administration was concerned, the coal mine fit the bill. After all, in a campaign where image reigned supreme, reality was of little consequence. After election day, however, reality remained. As the campaign dust settled, a new question arose: was the development of the coal mine actually a threat sufficient to justify sealing off 1.7 million acres of southern Utah? The PDEIS makes it clear the answer is no. In fact, the Clinton Administration's own agencies determined after a full review, that between killing the mine and approving it, approval was the ``preferred alternative.'' \8\ --------------------------------------------------------------------------- \8\ Warm Springs Project PDEIS 2-1 (Dec. 11, 1995) [hereinafter PDEIS (1995)]. For all references to the PDEIS, refer to Attachment 2 of this report. --------------------------------------------------------------------------- Committee Jurisdiction and Scope of Review The Committee on Resources has jurisdiction over the Antiquities Act and the creation of the Grand Staircase- Escalante National Monument under Articles I and IV of the U.S. Constitution, Rules X and XI of the Rules of the U.S. House of Representatives, and Rule 6(a) of the Rules for the Committee on Resources (Committee Rules), jurisdiction that is delegated under Rule 6(d) of the Committee Rules to the Subcommittee on National Parks and Public Lands. The Subcommittee has a continuing responsibility under Rule 6(b) of the Committee Rules to monitor and evaluate administration of laws within its jurisdiction. In relevant part, that Rule states: Each Subcommittee shall review and study, on a continuing basis, the application, administration, execution, and effectiveness of those statutes or parts of statutes, the subject matter of which is within that Subcommittee's jurisdiction; and the organization, operation, and regulations of any Federal agency or entity having responsibilities in or for the administration of such statutes, to determine whether these statutes are being implemented and carried out in accordance with the intent of Congress. In accordance with its Rule 6(d) responsibility, the Committee and Subcommittee Chairmen initiated a review of the creation of the Grand Staircase-Escalante National Monument. The initial review focused on the actions of the Executive Branch in the designation of the Monument. This review resulted in a majority staff report entitled ``Behind Closed Doors: The Abuse of Trust and Discretion in the Establishment of the Grand Staircase-Escalante National Monument.'' \9\ The report made several findings supported by evidence discovered by the Committee. The significant findings, as summarized in the report, are as follows: --------------------------------------------------------------------------- \9\ H.R. Rep. No. 105-D, 105th Cong., 1st Sess. (Comm. Print 1997). --------------------------------------------------------------------------- (1) the designation of the Monument was almost entirely politically motivated to assist the Clinton- Gore reelection effort; (2) the plan to designate the monument was purposefully kept secret from Americans and the Utah congressional delegation; (3) the Monument designation was put forward even though Administration officials did not believe that the lands proposed for protection were in danger; (4) use of the Antiquities Act was intended to overcome Congressional involvement in land designation decisions; (5) use of the Antiquities Act by the Clinton Administration was planned to evade the National Environmental Policy Act (NEPA). Indeed, its use was specifically intended to evade the provisions of NEPA and other Federal administrative requirements. As a consequence of this report, the Subcommittee requested a further review of the question whether there was any actual threat posed by development of the Smokey Hollow Mine that was sufficient to justify the use of the Antiquities Act to ``protect'' Utah's ``threatened'' national treasures. On November 5, 1997, the Committee sent a letter to Secretary of Interior Bruce Babbitt requesting each version of the preliminary draft environmental impact statement prepared for the Warm Springs Project/Smokey Hollow Mine. The Committee's request was met with the threat of a claim of privilege based upon the ``predecisional'' nature of the documents, in spite of the fact that no such privilege applies to Congress. On November 12, 1997, consistent with the Committee's oversight powers, a subpoena was served on the Department of Interior and the requested documents were received by the Committee one week later. The subpoenaed materials included not only the complete text of all versions of the PDEIS but also copies with marginal notes and correspondence regarding the Warm Springs Project. This report, based on a review of the documents provided, was developed for and provided to Members of the Committee on Resources for their information so that Members can undertake their legislative and oversight responsibilities under the Constitution, the Rules of the House of Representatives, and the Rules for the Committee on Resources. While the earlier staff report demonstrates that the President acted without legal authority in designating the Utah Monument, this Committee report shows that the President's environmental conservation justification was just as illusory. History of Coal Mining on the Kaiparowits Plateau The proposed Smoky Hollow Mine was to be located on the Kaiparowits Plateau.\10\ The sweeping, arid plateau covers approximately 1,650 square miles of southern Utah. It extends 65 miles north to south, 20 miles across its northern boundary, and 55 miles across its southern boundary. The Plateau contains an original coal resource of 62.3 billion short tons, though only about 30 billion short tons are in areas where geologic conditions are favorable for current underground mining technology. Overall, the Kaiparowits Plateau contains about 1.5 percent of the Nation's total coal resource in the lower forty- eight states. The low sulfur content of Kaiparowits coal creates a relatively low polluting power plant fuel, while the thickness of the seams make it attractive for mining. Except for the Monument designation, the region would be an important source of low-cost, environmentally safe fuel for the Nation's needs in the 21st century.\11\ --------------------------------------------------------------------------- \10\ Refer to maps at Attachment 10. \11\ See U.S. Geological Survey Open-File Report 96-539, Preliminary investigations of the distribution and resources of coal in the Kaiparowits Plateau, southern Utah (1996). --------------------------------------------------------------------------- Coal in the region was first mined by settlers in the late 1800's near the town of Escalante, Utah, with several small mines producing coal for local needs until the early 1960's. In the 1970's, about 12,000 tons of coal were mined from a test mine (the Missing Canyon Coal Mine) whichwas part of a larger project to develop a 3,000-megawatt coal-burning power plant. Construction plans for the plant were eventually halted due to development difficulties. The prior incidence of development in southern Utah caused BLM to exclude most of the land in the mining area from its wilderness review. In BLM's initial review three areas (Warm Creek, Nipple Bench, and Head of the Creeks) were excluded because they ``clearly and obviously'' did not meet wilderness criteria. In BLM's Final Utah Wilderness EIS, released in 1990, the remaining two areas (Wahweap and Burning Hills) were also not recommended for wilderness. This was due to the fact that neither Burning Hills nor Wahweap's geologic features were considered to be of National or regional importance and their potential for energy mineral extraction outweighed their low wilderness values.\12\ According to BLM's scientists and land managers, the land that would be affected by the proposed coal mine was not, as President Clinton would later say ``the most remarkable land in the world.''.\13\ Its high potential for future energy development outweighed its low wilderness values.\14\ --------------------------------------------------------------------------- \12\ ``BLM concluded that although the Wahweap WSA is in a natural state, only about 10 percent of the WSA has outstanding opportunities for solitude. About 17 percent of the WSA has high scenic values, in six scattered locations. Opportunities for primitive recreation are not outstanding. About 1,000 acres of comparatively old pinyon and juniper trees and 11,700 acres of features with geologic interest in the WSA are not considered to be of National or regional importance.'' PDEIS 3- 89 (1995). \13\ PDEIS 3-89 (1995). \14\ PDEIS 3-89 (1995). --------------------------------------------------------------------------- ``Rope in the Kaiparowits'' If, as BLM concluded, the Kaiparowits Plateau's greatest value was for energy development and it ``clearly and obviously'' did not meet wilderness criteria, what is the Plateau doing in a national monument? The answer has more to do with political expediency than environmental protection. To invoke the Antiquities Act, the President needed to point his finger at a credible threat. The northern end of the Utah Monument (which does arguably have geologic features of significance) was not threatened in the least and could not have been designated standing alone. The President faced a Catch-22: the geologically and culturally significant lands were not threatened, while the purportedly ``threatened'' lands were not significant. Faced with this difficulty in the campaign scheme, the Council on Environmental Quality (CEQ) was ready to drop the project altogether. On March 25, 1996, Kathleen McGinty, Chair of CEQ, expressed her doubts about the planned designation in an e-mail message to T.J. Glauthier at OMB and Linda Lance at CEQ, stating: I'm [sic] increasingly of the view that we should just drop these utah [sic] ideas. we [sic] do not really know how the enviros will react and I do think there is a danger of ``abuse'' of the withdraw/antiquities authorities especially because these lands are not really endangered.\15\ [Emphasis added.] --------------------------------------------------------------------------- \15\ Staff of House Comm. on Resources, Behind Closed Doors: The Abuse of Trust and Discretion in the Establishment of the Grand Staircase-Escalante National Monument, H.R. Rep. No. 105-D, 105th Cong., 1st Sess. at 28 (Comm. Print 1997) (emphasis added.) Attachment 1. Two days later, however, the campaign-style event was back on track. Someone at CEQ had the idea of simply adding the 1,650-square-mile Kaiparowits Plateau to the planned monument package. Doing so would provide a pretext that would allow the Administration to claim the land was ``threatened'' by the mine and in need of ``protection'' through a withdrawal. The fact that the supposedly ``threatened'' area and the ``significant'' area were separated by a considerable distance was of no importance to the President. The first mention of this idea is in a March 27, 1996, e- mail message by Tom Jensen at CEQ directed to Linda Lance, T.J. Glauthier, and Kathleen McGinty: KM \16\ and others may want to rope in the Kaiparowits and Escalante Canyons regions if this package ultimately doesn't seem adequate to the President's overall purpose.\17\ [Emphasis added.] --------------------------------------------------------------------------- \16\ Probably Kathleen McGinty. \17\ Id. at 29 (emphasis added). Attachment 3. ``Roping in the Kaiparowits'' may have given the Administration what it wanted--the appearance of credibility in the designation of the Utah Monument. However, it also meant that the Utah Monument's area had to be expanded to 1.7 million acres. Since there is no actual justification for the inclusion of the Kaiparowits in the Utah Monument, the Utah Monument violates the requirement of the Antiquities Act that the land reserved ``shall be confined to the smallest area compatible with the proper care and management of the objects to be protected.'' \18\ And, if the other lands were not appropriate as a stand-alone monument, then ``roping-in'' the allegedly ``threatened'' Kaiparowits did not make them so. --------------------------------------------------------------------------- \18\ 16 U.S.C. Sec. 431 et seq. --------------------------------------------------------------------------- The fact that the ``roping in'' of Kaiparowits was unjustified is clearly demonstrated by the Warm Springs Project EIS, discussed below. It is equally clear, for the Clinton Administration, facts were of little consequence. In its view, the ends justified the means. National Environmental Policy Act (NEPA) Process for the Warm Springs Project The Warm Springs Project (Project) was the collective name given to the proposed Smoky Hollow Mine and the facilities necessary to mine and deliver the coal to market, including its power, communication, and loadout facilities, the Fredonia/ Hurricane truck maintenance facility, and the Warm Creek/ Benchtop Road. Andalex Resources, Inc. (Andalex), the largest federal leaseholder in the southern part of the Kaiparowits coal field, proposed reopening the inactive Missing Canyon Mine and mining 100 to 120 million tons of coal over a 45-year period. The company began contacting various entities involved with possible development of their leases as early as 1988. In May 1990, it was determined that an environmental impact statement (EIS) should be prepared. An EIS is an analytical document which evaluates potential impacts to the human environment of a proposed course of action and its reasonable alternatives as required by the National Environmental Policy Act of 1969 (NEPA).\19\ NEPA compliance is overseen by the Council on Environmental Quality (CEQ), chaired by Kathleen McGinty. --------------------------------------------------------------------------- \19\ 42 U.S.C. Sec. 4321, et seq. --------------------------------------------------------------------------- The Bureau of Land Management and the Office of Surface Mining Reclamation and Enforcement (the agencies) were jointly responsible for preparing the EIS, including the determination of content, the level of analysis, and the assessment of any impacts. In addition, private third-party contractors were retained to provide outside expertise and independent analysis. Under the terms of the contract, the third-party contractors were specifically barred from any communication with Andalex or others affected by the EIS. The NEPA process requires two documents before a significant federal action can occur: (1) a public draft EIS which fully analyzes the proposed actions and their potential impacts; and (2) a final EIS which incorporates public comments to the draft and is used by the decision-maker to make a final determination.\20\ --------------------------------------------------------------------------- \20\ 40 CFR Sec. 1502.9 (1997). --------------------------------------------------------------------------- According to the regulations implementing NEPA, the draft ``must fulfill and satisfy to the fullest extent possible the requirements established for final statements * * *'' \21\ This means that a ``draft'' EIS is expected to be as close to a final as possible, lacking only public comment. The regulations do not address the relative authority of a ``preliminary'' draft EIS. Though the draft stage for the Warm Springs Project was substantially completed, the document was never released to the public and the effort to finish it was abandoned soon after the designation of the Utah Monument. --------------------------------------------------------------------------- \21\ 40 CFR Sec. 1502.9(a) (1997). --------------------------------------------------------------------------- Over a period of nearly seven years at an estimated cost to Andalex of $8 million, federal agencies completed six iterations of the EIS leading to a preliminary draft environmental impact statement (PDEIS) in December 1995.\22\ The 1995 iteration of the PDEIS was distributed to other federal agencies for their comments. Their comments were integrated into the seventh iteration of the PDEIS which was nearing completion at the time the Utah Monument was designated.\23\ A member of the EIS team estimated that, but for the designation, the draft EIS would have been completed and ready for public comment in the spring of 1997.\24\ --------------------------------------------------------------------------- \22\ The dates of the iterations are: Round #1, 10/19/94; Rd. #2, 2/8/95; Rd. #3, 6/6/95; Rd. #4, 8/3/95; Rd. #5, 12/11/95; Rd. #6, 12/ 12/95. \23\ The seventh iteration began on or around 6/18/96 and was finally abandoned around 11/20/96. \24\ Staff Communication with Warm Springs EIS team member 5/14/98. --------------------------------------------------------------------------- The last complete version of the EIS to be produced before the designation is a comprehensive, 561-page document reflecting nearly seven years of study and analysis. If the Smoky Hollow Mine was indeed the threat alleged by President Clinton, some indication of its danger would be evident in the documents produced by the federal scientists and managers who studied the project for seven years. No such indication of environmental threat exists. Of the PDEIS's eight chapters and five appendices, the most significant is chapter four, entitled ``Environmental Consequences.'' It discusses the anticipated impacts to the human environment, both with the Warm Springs Project (Alternative 1) and without the Project (Alternative 2). The chapter contains an analysis of the impacts of the Project on 14 broad subject areas such as wildlife, geology, paleontology, socioeconomics, hydrology, and recreation. Each potential impact was assessed both in terms of its anticipated magnitude and its anticipated importance to the human environment. The magnitude scale ranges from ``none'' to ``major.'' The importance scale ranges from ``insignificant'' to ``significant.'' Impacts were assumed to be insignificant unless otherwise indicated.\25\ --------------------------------------------------------------------------- \25\ For a full definition of ``significantly'' as used in NEPA, see 40 C.F.R. Sec. 1508.27 (1997). --------------------------------------------------------------------------- It is notable that, as detailed in the earlier staff report, Andalex was required by CEQ to comply with the NEPA process at the same time CEQ--through its Chair, Kathleen McGinty--was advising the President on how to evade NEPA's requirements in the creation of the Utah Monument.\26\ No environmental impact statement was ever conducted or requested by CEQ on the possible ecological or socioeconomic consequences of the Monument, yet Andalex was required by CEQ to fully observe NEPA's provisions. --------------------------------------------------------------------------- \26\ Staff of House Comm. on Resources, Behind Closed Doors: The Abuse of Trust and Discretion in the Establishment of the Grand Staircase-Escalante National Monument, H.R. Rep. No. 105-D, 105th Cong., 1st Sess. at 12, 13 (Comm. Print 1997). --------------------------------------------------------------------------- Ecological Consequences of the Warm Springs Project Chapter four of the PDEIS does not list a single major impact associated with development of the Warm Springs Project that would affect the list of ``environmental values'' supposedly protected by the designation of the Utah Monument: 1. In his proclamation, President Clinton specifically mentioned the ``world class paleontological sites'' he wanted to protect from the mine.\27\ The PDEIS, however, states that impacts to paleontological resources in the Smoky Mountain area would be ``minor over the short term, negligible over the long term.'' \28\ [Emphasis added.] --------------------------------------------------------------------------- \27\ Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996). \28\ PDEIS 4-12 (1995). --------------------------------------------------------------------------- 2. President Clinton mentioned the important ``cultural resources'' he wanted to protect from the mine.\29\ The PDEIS states that the Project's impact in this area would be ``minor.'' \30\ [Emphasis added.] --------------------------------------------------------------------------- \29\ Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996). \30\ PDEIS 4-118 (1995). --------------------------------------------------------------------------- 3. President Clinton also mentioned the ``spectacular array of unusual and diverse soils'' and ``cryptobiotic crusts'' that he wanted to protect from the mine.\31\ Again, the PDEIS states clearly that the Project's impact on soils would be ``minor to moderate over the short term, minor over the long term,'' and the impact on cryptobiotic soils in the Smoky Mountain area would be ``minor over both the short and long terms.'' \32\ The impact on soils due to mining-related subsidence were determined to be ``negligible to minor over the short term and negligible over the long term.'' \33\ [Emphasis added.] --------------------------------------------------------------------------- \31\ Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996). \32\ PDEIS 4-21,22 (1995). \33\ PDEIS 4-21 (1995). --------------------------------------------------------------------------- 4. President Clinton's concerns for the ``many different vegetative communities and numerous types of endemic plants'' were also exaggerated and overblown. The agencies concluded that ``impacts to vegetative productivity and community stability in the proposed Warm Springs Project area with mining-related activities would be minor over the short term and negligible to minor over the long term.'' \34\ [Emphasis added.] --------------------------------------------------------------------------- \34\ PDEIS 4-24 (1995). --------------------------------------------------------------------------- 5. The same holds true for President Clinton's concerns over wildlife. The agencies concluded that ``the impacts to wildlife habitat and productivity in the Smoky Mountain area with Project-related activities would be minor over the short term and negligible over the long term.'' \35\ [Emphasis added.] President Clinton had no credible reason to ``protect'' Utah's wildlife with a 1.7 million acre land lockup. --------------------------------------------------------------------------- \35\ PDEIS 4-30 (1995). --------------------------------------------------------------------------- The ``protection'' of the above resources was cited by the President as the rationale for the Utah Monument's designation. Given that the underlying rationale was false, no environmental or safety justification for the Utah Monument designation exists. The Clinton-Gore Monument was constructed on a very flimsy foundation. There were no major anticipated impacts associated with the Warm Springs Project because Andalex, together with the agency scientists and managers on the ground worked with concerned parties at the local, state, and federal level to identify potential problems and create solutions before a final decision had to be made. This is a model the Administration should have followed when considering the Utah Monument designation. For example, the initial plan was to locate the mine's surface facilities on the upper benches of Spring Point and Smoky Mountain so that they would be closer to the actual mine site. The agencies and Andalex realized, however, that locating the facilities there would cause impacts to visual resources and require more surface disturbance through road building. They modified the plan and came up with a better solution, thereby reducing the impacts of the Project.\36\ --------------------------------------------------------------------------- \36\ PDEIS 2-3 (1995). --------------------------------------------------------------------------- Instead of building the surface facilities on top of Smoky Mountain which would have had a significant impact on the visual resources of the area, the agencies and Andalex agreed to locate the facilities in a 400-foot deep, enclosed part of Smoky Hollow Canyon. According to the PDEIS, because of ``the deep, confined nature of this canyon site, the proposed facility complex would not be visible from the WSA's \37\ or any other sensitive viewpoints outside Smoky Hollow.'' \38\ --------------------------------------------------------------------------- \37\ Wilderness Study Areas. \38\ PDEIS 4-104 1995). --------------------------------------------------------------------------- Similarly, the initial alignment of the Benchtop Road was more convenient to the mine but had the potential of causing impacts to areas with cultural and wetland values. Andalex and the Agencies worked together to solve the problem--the route was adjusted and the magnitude of the impacts dropped.\39\ --------------------------------------------------------------------------- \39\ PDEIS 2-4 (1995). --------------------------------------------------------------------------- Due to these and similar changes, the agencies were able to accurately predict that: Construction and operation of the proposed Project would have no direct, physical impact on any of the wilderness study areas (WSAs) or the potential designation of wilderness areas in the Smoky Mountain area.\40\ [Emphasis added.] --------------------------------------------------------------------------- \40\ PDEIS 4-11 (1995) (emphasis added). The conclusion of the federal scientists and managers who studied the Project for seven years is in direct opposition to what President Clinton told the American people. In addition to solving problems before they arose through changing the Project's design, the agencies and Andalex agreed to a series of proactive measures that would have ensured the avoidance of future problems. As a condition of permit approval, Andalex agreed to conduct ``intensive field inventories'' for the presence or absence of endangered plant species two years prior to any disturbance.\41\ Similar conditions were agreed to for the protection of the desert tortoise, the Mexican spotted owl, and the peregrine falcon.\42\ Alternate routes for roads and methods of coal transport were considered at length and only those with minimal impacts were included in the final analysis. Andalex agreed to the changes up front. Although there were less costly and more convenient ways to mine the coal in their leases, the company participated in the process in an effort to plan a safe project with minimal impacts. While lengthy and expensive, the PDEIS is testimony to the success of that process. --------------------------------------------------------------------------- \41\ PDEIS 2-2 (1995). \42\ PDEIS 2-2 (1995). --------------------------------------------------------------------------- As a result of the conditions agreed to by Andalex there may have been more protection of the area's unique resources, not less, if the Project were approved. For example, with disapproval of the Project ``[n]o information surveys on the primrose or the biscuitroot [both endangered plants] would be obtained from proposed surveys in the Project area.'' \43\ The same goes for proposed wildlife resource environmental education programs, baseline studies on raptor nests, and Mexican spotted owl inventories.\44\ --------------------------------------------------------------------------- \43\ PDEIS 4-127 (1995). \44\ PDEIS 4-128, 9 (1995) --------------------------------------------------------------------------- The PDEIS also notes that with disapproval of the Project ``[f]ossil resource discoveries and scientific data that could potentially be gained from mining-related survey and mitigation activities would not occur.'' \45\ --------------------------------------------------------------------------- \45\ PDEIS 4-123 (1995). --------------------------------------------------------------------------- The PDEIS shows conclusively that the proposed mine was not the ecological threat that President Clinton alleged when he designated the Utah Monument. This conclusion was reached not only by Resources Committee staff, but also by Dave Alberswerth, a Clinton Administration political appointee in the Department of Interior, who noted in an April 9, 1996, memorandum that the two alternatives ``appear to indicate no significant difference in environmental impacts for the area of either permitting or not permitting the proposed Smoky Hollow Project.'' \46\ --------------------------------------------------------------------------- \46\ Memorandum from Dave Alberswerth to A. Strasvogel dated Apr. 9, 1996. Attachment 4. --------------------------------------------------------------------------- Socioeconomic Consequences of the Warm Springs Project In addition to misinforming the American people by exaggerating any potentially negative impacts of the Warm Springs Project, President Clinton failed to mention the value of the project to southern Utah and northern Arizona communities. The PDEIS states that ``[a]t full production over the life of the Project, the combined direct and secondary employment would create a total of 822 to 832 jobs * * * in Kane, Coconino, and Washington Counties.'' \47\ --------------------------------------------------------------------------- \47\ PDEIS 4-61 (1995). --------------------------------------------------------------------------- The direct jobs would have paid an annual wage of about $35,000, ``considerably above prevailing wages in the region,'' and the secondary jobs would ``benefit the region's economy and the residents by expanding the economic opportunities available and increasing the volume of business activity.'' \48\ --------------------------------------------------------------------------- \48\ PDEIS 4-61, 65 (1995). --------------------------------------------------------------------------- The secondary impacts of the Project on the region were also discussed at length in the PDEIS. It was estimated that purchases of locally available goods and services by the mine and trucking firm would be $7.4 million annually.\49\ At full production, ``an additional $7.7 million in annual earnings would be realized by workers filling secondary jobs supported by the proposed project.'' \50\ --------------------------------------------------------------------------- \49\ PDEIS 4-65 (1995). \50\ PDEIS 4-65 (1995). --------------------------------------------------------------------------- According to the PDEIS, the ``combined direct and secondary wage and salary earnings associated with the proposed Project are projected at about $23.5 million annually.'' \51\ These earnings would have been a significant increase in the affected communities. --------------------------------------------------------------------------- \51\ PDEIS 4-65 (1995). --------------------------------------------------------------------------- As the agencies noted, ``the Project-related wages and salaries represent a substantial potential benefit to residents of the three Utah counties and Coconino County, Arizona, where the projected increase is equivalent to about 1.7 percent of the wages and salaries paid in 1992.'' \52\ The effects might have been even greater in Kane County where ``the proposed Project could generate up to a 50 percent increase in annual wage and salary payments in Kane County compared with those in 1992.'' \53\ --------------------------------------------------------------------------- \52\ PDEIS 4-65 (1995). \53\ PDEIS 4-65 (1995). --------------------------------------------------------------------------- These and other positive impacts would ``benefit the local economies in Kane and Coconino Counties by increasing the economic diversification of the region, by creating higher wages and year-round employment, and by generating additional support for local businesses.'' \54\ --------------------------------------------------------------------------- \54\ PDEIS 4-67 (1995). --------------------------------------------------------------------------- The Project was anticipated to have similarly beneficial impacts on state and federal government fiscal resources. A Utah study concluded that ``the net fiscal impact of the proposed Project would be positive over the life of the Project, with indirect revenues accruing to the State projected to average about $2.25 million per year.'' \55\ Direct revenues from the Project accruing to the State of Utah, including sales and use taxes, mineral lease royalties, and State land payments, were estimated to average about $3.3 million annually.\56\ --------------------------------------------------------------------------- \55\ PDEIS 4-72 (1995). \56\ PDEIS 4-73 (1995). --------------------------------------------------------------------------- One of the most significant benefits that would have accrued to the State of Utah was the royalty revenue derived from the development of Utah's State Trust Lands. Such royalties are deposited in a permanent trust fund and the income is used to support children's education in the State. Because these royalties are invested and managed in a permanent fund, the Project would have continued to benefit children even after it had ceased operations.\57\ Thus, President Clinton's decision to sweep the PDEIS under the rug was to pull the rug out from under Utah's school children. --------------------------------------------------------------------------- \57\ PDEIS 4-76 (1995). --------------------------------------------------------------------------- The mine would have also returned substantial revenues to the federal treasury from sources such as personal and corporate income taxes and excise taxes, as well as the mining- specific revenues. At full production these revenues would include: ``$1.75 million annually from the retained share of mineral royalties, $2.15 million in payments into the Federal Black Lung Program, and $375,000 for the Abandoned Mine Land Reclamation (AML) Fund. Federal highway user's revenues would exceed $1.24 million annually at full production.'' \58\ --------------------------------------------------------------------------- \58\ PDEIS 4-74 (1995). --------------------------------------------------------------------------- The effect of the Project on local governments was also expected to be positive. According to the PDEIS, [n]et revenues to local governmental units, after accounting for projected increases in public service expenditures, were estimated at $1.8 million annually.'' \59\ --------------------------------------------------------------------------- \59\ PDEIS 4-68 (1995). --------------------------------------------------------------------------- All of these benefits would have accrued to an area already hit hard by the Clinton Administration's efforts to shut down Western resource development. The three Utah counties that would have benefitted most from the Warm Springs Project (Iron, Washington, and Kane) each suffer from subpar incomes (ranging from 26 to 41 percent below National averages) and limited growth. According to the PDEIS, the cause of these difficulties can be traced to ``losses of mining and timbering jobs, and the heavy dependency on tourism-related employment'' which is ``characterized by lower paying, seasonal and/or part-time jobs.'' \60\ --------------------------------------------------------------------------- \60\ PDEIS 3-60 (1995). --------------------------------------------------------------------------- Towns like Kanab and Fredonia have had to struggle after major employers such as Energy Fuels and Kaibab Forest Products were forced to cut back or shut down due to Clinton Administration policies. Fredonia's logging and mining employment base, for example, ``has declined since 1990 by more than 300 jobs and ceased to exist in February 1995.'' \61\ The Project would have benefitted these communities immensely. --------------------------------------------------------------------------- \61\ PDEIS 3-74 (1995). --------------------------------------------------------------------------- Instead President Clinton chose to ignore their needs in his effort to appease the political whims of false environmentalism and partisan political gain. Abuse of the NEPA Process The Warm Springs Project case illustrates not only an abuse of the Antiquities Act, it also provides an example of how the Clinton-Gore Administration uses NEPA as both a sword and a shield, abusing and manipulating the process to achieve its political ends. The decision to ``rope in the Kapairowits'' was made in CEQ on or around March 27, 1996. Within a week, on April 3, 1996, top staff at BLM were suddenly very interested in the Warm Springs Project PDEIS. An e-mail message from Willie Taylor, Director of the Office of Environmental Policy and Compliance (OEPC),\62\ to Terry Martin and Vijai Rai (also of OEPC) expresses this interest: --------------------------------------------------------------------------- \62\ OEPC is an office within the U.S. Department of Interior. I talked to Brooks \63\ this afternoon and he was interested in the status of an EIS for coal mining on the Kaparowitz ((?) I know the place, but I am not sure how to spell it!) Plateau. We know that it is at the PDEIS stage, but need to know how far along they are. I believe that this is a delegated EIS (between BLM & OSM, but in the AS/LM \64\). Without ``raising any alarms,'' please check on the status (delegated vs. non-delegated and time frame for the DEIS) of this EIS and then let's get together to discuss tomorrow (Brooks needs the information tomorrow).\65\ [Emphasis added.] --------------------------------------------------------------------------- \63\ Brooks Yeager, Deputy Assistant Secretary for Policy and International Affairs, Department of Interior. \64\ Bob Armstrong, Assistant Secretary for Land and Minerals Management (AS/LM), Department of Interior. The AS/LM oversees the Bureau of Land Management (BLM), the Minerals Management Service (MMS), and the Office of Surface Mining Reclamation and Enforcement (OSM). \65\ E-mail message from Willie Taylor to Terry Martin & Vijai Rai dated Apr. 3, 1996, 4:59 PM (emphasis added). Attachment 5. Due to the fact that the Warm Springs Project EIS was delegated and that it had been progressing for seven years without any involvement from Washington, D.C., it would have ''raised alarms'' if OEPC sought to become involved. So OEPC, under the direction of Brooks Yeager, created the false appearance of being ``invited'' in as a consultant by the Assistant Secretary for Land and Minerals--by writing its own invitation. In an e-mail message from Willie Taylor to Brooks Yeager dated April 4, 1996, Taylor describes the invitation --------------------------------------------------------------------------- they have written: Below is a forwarded message with the information you requested. Vijai drafted the document. While it is longer than the paragraph you requested, I suggest that if you wish to rewrite it you maintain the essential element for this Office [OEPC]: (1) potential for controversy (a logical reason for our participation) and (2) that some mechanism be kept to get any comments made by this Office fully addressed (since the EIS will continue to be delegated). [Emphasis added.] As we discussed, any review by this Office at this point is likely to be resented by the bureaus and has the potential to significantly increase the time required for the completion of the PDEIS. As such, if AS/LM sends out a memo like the one we have discussed, he needs to make it clear to his people (in staff meetings, not just through the memo) that we have been invited into this process.\66\ [Emphasis added.] --------------------------------------------------------------------------- \66\ E-mail message from Willie Taylor to Brooks Yeager dated Apr. 4, 1996, 2:03 PM (emphasis added). Attachment 6. Of course, OEPC was not actually invited into the process. They sought involvement because Clinton Administration officials in the Department of Interior knew that the designation of the Utah Monument was in the works and they wanted to ensure that the PDEIS for the Warm Springs Project indeed presented the threat they hoped it did. They used the pretext of controversy (``a logical reason for our participation'') as a means to cover their true intention. Once again, as detailed in the earlier staff report, the Administration needed to create a phony paper trail to justify their actions. OEPC's involvement was improper not simply because it fabricated a paper trail and disguised their motives, it was improper because it was a violation of due process. The decision to approve or deny the permits necessary for the Warm Springs Project (the whole reason an EIS was required) rested with the Assistant Secretary for Land and Minerals (AS/LM) Armstrong. If the AS/LM had denied the permits, the applicant (Andalex) could then appeal the decision to DOI's Office of Hearing and Appeals. Jurisdiction over the appeal is also retained by the Secretary of Interior under title 43 Code of Federal Regulations part 4.5. The Office of Hearing and Appeals is organizationally under OEPC, as is the AS/LM.\67\ --------------------------------------------------------------------------- \67\ Please refer to the DOI organizational chart, Attachment 7. --------------------------------------------------------------------------- The inappropriateness of OEPC's effort to ensure that its comments were addressed and incorporated in the predecisional PDEIS lies in the fact that if OEPC is eventually asked to contribute its analysis to an appeal of its own decision they will be unable to offer an unbiased review. Their involvement in effect denies applicants the ability to make meaningful administrative appeals and therefore denies their rights to due process--a Constitutionally protected right. Once Administration officials gained access to the PDEIS, they were disappointed by what they saw. In an April 9, 1996, memorandum Dave Alberswerth \68\ expressed his feelings: ``it strains credulity to base a `go' or `no go' decision on an analysis of two alternatives which appear to indicate no significant difference in environmental impacts for the area of either permitting or not permitting the proposed Smokey Hollow Project.'' \69\ [emphasis added]. He appears to be saying that there should be an alternative that does have significant impacts for the area. Alberswerth proposes such an alternative in his memo: ``In the minds of many, the potential future development activities that could utilize or improve upon the infrastructure created by this project is the most significant issue with the proposal.'' \70\ --------------------------------------------------------------------------- \68\ In 1996, the Special Assistant to Bob Armstrong (AS/LM). \69\ Memorandum from Dave Alberswerth to A. Strasvogel dated Apr. 4, 1996 (emphasis added). Attachment 4. \70\ Id. --------------------------------------------------------------------------- OEPC's involvement also appears to have been largely an effort to ``dirty up'' an EIS that presented no significant impacts, and therefore no threat, to the environment. Andalex had proposed mining only 100 to 120 million tons of coal over the life of the project. OEPC wanted to include an alternative that would have Andalex mining significantly more coal than Andalex planned. The result of such an alternative would be greater and more significant impacts, especially in the transport of the coal (e.g., more trucks hauling coal). A permit based on an EIS that contained such an alternative would be much easier to deny than the one reflecting Andalex's actual plans that presented minor impacts. OEPC sent the Utah EIS team its recommendations in a June 6, 1996, memorandum. The suggestions were not taken well. The people on the ground who had been working on the Project for seven years recognized the recommendations for what they were: an effort by Washington to kill the mine. In a June 21, 1996, e-mail message to Willie Taylor, Vijai Rai described their reaction: ``[a]s expected, the field personnel are very unhappy. They feel that I was not given all the information that should have been reviewed by me as part of the review process. They feel that had I looked at all the information, some of my recommendations may have been different.''\71\ --------------------------------------------------------------------------- \71\ E-mail message from Vijai Rai to Willie Taylor dated June 21, 1996. Attachment 8. --------------------------------------------------------------------------- The dispute over whether to add another (more environmentally harmful) alternative to the PDEIS was never finally resolved. OEPC, led by Vijai Rai, was attempting to have it included (over the opposition of the Utah EIS team) almost until the time of the Utah Monument designation. On September 16, 1996, two days before the designation, Vijai Rai received an e-mail from Willie Taylor letting him know that he would no longer need to argue OEPC's case. ``I just spoke to Dave Alberswerth about the subject review. He wanted me to know that he thought you had done exactly what was asked and that you had done a good job.''\72\ Exactly what was asked, apparently, was to make every attempt to dirty up the EIS to make the Project appear more threatening than it was. --------------------------------------------------------------------------- \72\ e-mail message from Willie Taylor to Vijai Rai dated September 16, 1996. Attachment 9. --------------------------------------------------------------------------- Soon after receiving his commendation, Vijai Rai wrote a handwritten note to ``Geoff'' \73\ which explained another reason for including a third, more harmful, alternative in the EIS: --------------------------------------------------------------------------- \73\ Probably Geoff Webb, a Department of Interior political appointee. I do wish to reiterate to you once again that the PDEIS should evaluate in depth the environmental and economic issues related to higher annual coal production. If the detailed analysis were to conclude that higher annual coal production is not feasible within the life-of-mine (40 years) Andalex's claims, if any, under taking [sic] will be based on a relatively small coal mine. In my view, if the mine plan and/or the permit were not approved, Andalex is likely to sue the Govt. based on the value of all the coal under its leases. I believe that the public and the Government will come out better if we were to do the full analysis up front.\74\ --------------------------------------------------------------------------- \74\ Handwritten note from ``Vijai'' to ``Geoff'' dated Sept. 16, 1996: Attachment 9. Vijai Rai's comments highlight the overall goal of OEPC's last-minute involvement in the Warm Springs Project EIS to kill the Project, not to make it better, and to prepare a litigation weapon, not an EIS. Through manipulating the environmental review, the Clinton Administration was attempting to depress the value of a private company's holdings to improve its own position later in court. Such a manipulation of the NEPA process, using it as both a shield and a sword, is an abuse of both the letter and spirit of the law. It is ironic that in this case Andalex had more respect for the NEPA process than the Clinton Administration. Chapter 5 of the PDEIS contains the following example: A variety of Federal, State, and local agencies, interest groups, and private individuals have been contacted by Andalex since the permitting process for the Smoky Hollow Mine began. Between 1988 and 1996, company representatives contacted over 2,500 people and held more than 500 meetings to provide their explanation of the proposed Project and resolve as many issues and concerns as early in the process as possible. Although these contacts were not made by the Agencies as part of the formal scoping process for the EIS, they did afford the interested public additional opportunities to become familiar with the various components that would eventually make up the Warm Springs Project. As a result of these initial contacts by Andalex, many of these groups and individuals were more active in their participation during the formal EIS scoping activities conducted by the Agencies.\75\ --------------------------------------------------------------------------- \75\ PDEIS 5-6 (1995). Andalex, according to the federal agencies themselves, was committed to involving the public in an open process from very early on in the Project. This commitment is exactly what CEQ Chair Kathleen McGinty was speaking of when she testified to the importance of NEPA before the Senate Energy and Natural Resources Committee within days of the Utah Monument --------------------------------------------------------------------------- designation (September 26, 1996): In many ways, NEPA anticipated today's call for enhanced local involvement and responsibility, sustainable development and government accountability. By bringing the public into the agency decision-making process, NEPA is like no other statute and is an extraordinary tribute to the American people to build on shared values * * * [NEPA] gives greater voice to communities. It provides the Federal Government an opportunity for collaborative decision-making with state and local governments and the public.\76\ [Emphasis added.] --------------------------------------------------------------------------- \76\ Quoted in Staff of House Comm. on Resources, Behind Closed Doors: The Abuse of Trust and Discretion in the Establishment of the Grand Staircase-Escalante National Monument. H.R. Rep. No. 105-D, 105th Cong., Ist Sess. at 8 (Comm. Print 1997). Of course, when the Utah Monument was designated by President Clinton, there was no effort to comply with NEPA. There was no effort to involve the public. In fact, as the earlier staff report shows, there was a calculated effort to evade NEPA and hide the decision from the public. What did affected communities think of the Utah Monument? What effects will it have on the local and state economies? On the environment? No one knows because the analysis for the Utah Monument designation, required under NEPA, was never done. Andalex and the agencies, by contrast, spent $8 million and seven years involving the public and assessing the impacts of the Project. It is clear what the ecological and socioeconomic impacts of the decision would have been. It is clear that the Project, in spite of the Clinton Administration's best efforts, was not the ``threat'' that the President said it was. Just as it had done when making the decision to designate the Grand Staircase-Escalante Monument, the Administration decided that the EIS on Andalex would say what the Administration needed it to say to justify the Utah Monument. And, as before, the Clinton Administration fabricated a paper trail to rationalize their actions. For the Clinton Administration, the ends of political expediency justified the means of abusing the process and the rights of the people of Utah.
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