U.S.A.: Plans to expand Mountain Cement depend on sale

Byszheng

Updated 2016-04-19

The process of a potential land sale of city-owned property to a local mining company is underway, but the timeline for a decision is tight for the company.Mountain Cement Company, located just south of Laramie off U.S. Highway 287, proposed a purchase of about 700 acres of land on the Monolith Ranch for mining purposes.The ranch — secured by the city of Laramie in the early 1980s for future municipal water use rights — is leased to a ranching operation.

Mountain Cement Company mines for shale used in cement production on Bath Ranch in an area adjoining Monolith Ranch.

The area in question has no water rights and would require an adjustment of the cattle ranch operator’s lease agreement, which Water Resource Specialist Darren Parkin said the leasee is comfortable with.

However, some people in Laramie are concerned about the sale of public land. Laramie City Councilor Vicki Henry said she doesn’t support the sale, in part because she has concerns about reclamation.

“I am more in support of a surface damage agreement, and I think it should include more strict conditions on the reclamation process,” Henry said.

Mitch Edwards of local law firm Nicholas and Tangeman, LLC, represents Mountain Cement. Edwards said in order to move forward with permitting and other processes required to start mining, they need a decision before July. Eagle Materials, the corporate parent of Mountain Cement, is looking at plans for potentially expanding the aged existing plant in Laramie, but that is contingent on being able to expand the existing mining operation. If the land is sold to Mountain Cement, the company anticipates a 100-year operation, Edwards said.

“As they go forward in the budgeting process, it’s going to make a big difference to have a decision from (the Laramie City Council) in terms of what direction corporate is going to take this company,” Edwards said. “I’d like to think Mountain Cement is going to be here forever, but to ensure that, we have to make sure we have the resources that will keep corporate in the game.”

Assistant City Manager Dave Derragon said that deadline is possible, but a considerable bureaucratic process needs to take place, including a City Council work session, a tour of the land by councilors, a recommendation from the Monolith Ranch Advisory Committee and a vote on the sale by the council.

“I think the July timeframe is doable,” Derragon said. “The work session schedule is tight, but we’ve talked about doing it on an off-night because of the magnitude of the offer.”

If a mining operation were to go forward, Edwards said the portion of land would be closed off to recreational opportunities because of safety concerns. Though there is currently no master plan for the use of land on the ranch, the Laramie Parks and Recreation Master Plan, which references the ranch, does not identify recreational opportunities in the area, Edwards says in an email.

“The truth of the matter is that it’s not feasible because of the regulations, the safety aspect, the liability aspect of allowing someone into an active area,” Edwards said.

Mountain Cement has the right to mine the land whether the city agrees to sell it or not, said Public Works Director Earl Smith. Edwards said some people seem to be confused about the suggested option to lease the land to Mountain Cement. A lease, Edwards said, is not possible. Should the city decide not to sell the property, a surface damage agreement would be required.

The preference to purchase the land is important, Edwards said. Eagle Materials would likely only commit to the more than $200 million expansion of the plant if the rights to the land are secure, he said. Owning the land also gives more control to the company in terms of dealing with things such as trespassers, Edwards said.

“While it doesn’t change any permitting obligations, (owning the property) does make it easier for Mountain Cement to go into the permitting process,” Edwards said.

Mountain Cement employs 124 people mostly living in the Laramie area. Payroll for Mountain Cement is in the millions annually. Laramie Chamber Business Alliance President Dan Furphy has been quoted saying it is one of the largest economic contributors in the area.

The company began exploring the possibility of purchasing the land in 2012. Mountain Cement offered $400,000 for land, well in excess of the appraised value.

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