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Sierra County refused to pay our invoice for the immediate mandatory reduction in a known toxic discharge-taking place on the Sixteen to One mining claim named Happy Jack. Sierra County said that California’s Water Board refused to pay for remedial work due to financial hardship. We were left in a time sensitive situation and were forced to file a claim for damages before the statue of limitations played a role. The irony is obvious. The hypocrisy of the water agency is apparent. The lack of concern for water quality is clear.
Case management meeting in Superior Court of Sierra County on April 5, 2011. Both Sierra county and the California Regional Water Board, Central Valley in Sacramento are side stepping responsibility for leaking chemically toxic fluids onto the Sixteen to One property.
The irritant with this arrogant under reach by the Water Board and Sierra County towards MTBE’s caused by Sierra County and over reach for native water caused by Mother Nature is that gasoline and diesel have proven adverse effects on water quality while the natural arsenic found in water flowing onto and through our property has never been proven to adversely effect the waters of Kanaka Creek. Gasoline not arsenic is the irritant. Is it just me or do you find this non-sensible?
PRELIMINARY ALLEGATIONS
1. Plaintiff ORIGINAL SIXTEEN TO ONE MINE, INC. is, and at all times herein mentioned was, a corporation duly organized in 1911 and existing within the State of California with its principle place of business located in Sierra County, California.
2. Plaintiff MICHAEL M MILLER is an individual and resident of Sierra County, State of California, and is suing herein in his individual capacity.
3. Plaintiffs are informed and believe and thereon allege that defendant SIERRA COUNTY is, and at all times herein mentioned was, a government entity organized and existing within the State of California with its principle place of business located in Downieville, California.
4. Plaintiffs are ignorant of the true names and capacities of defendants sued herein as Does 1 through 15, inclusive, and therefore sue these defendants by such fictitious names. Plaintiffs will amend this complaint to allege their true names and capacities when ascertained. Plaintiffs are informed and believe and thereon allege that each of the fictitiously named defendants is responsible in some manner for the occurrences herein alleged, and that plaintiffs’ damages as herein alleged were proximately caused by such defendants.
5. Original Sixteen to One Mine, Inc is informed and believes, and thereon alleges, that Does One through Seven are liable for the acts of Sierra County as its alter ego, because Does One through Seven dominated and controlled Sierra County, treated the property, good will or other assets of Sierra County as their own and failed to follow government formalities. From this point forward, any reference to Sierra County includes Does One through Seven.
6. Plaintiffs are informed and believe and thereon allege that during all times herein mentioned each of the defendants was the agent and representative of each of the remaining defendants, in suing the things herein alleged was acting within the scope of said agency, and that each of the defendants is thus jointly and severally liable for the damages suffered by plaintiffs.
7. Plaintiff ORIGINAL SIXTEEN TO ONE MINE, INC. is, and at all times herein mentioned was, the owner of mining claims known as the Happy Jack and Happy Jack Extension, located in the Alleghany Mining District, Sierra County, California.
8. Plaintiff MICHAEL M. MILLER is a licensed State of California contractor, Classification A, number 423886, business name Morning Glory Gold Mines.INTRODUCTION
9. This action is brought, in part, pursuant to the provisions of the Porter-Cologne Water Quality Control Act (Wat. Code 13000-14958). Plaintiffs seek (1) civil damages and penalties pursuant to Water Code 13002 (e); (2) relief to halt violations of the Porter-cologne Water Quality Control Act and the Federal Water Pollution Control Act (Clean water Act ) 33 U.S.C. 1251-1387; and (3) abatement of an alleged, continuing public nuisance arising from the portal of the Happy Jack mining claim.
10. Plaintiff ORIGINAL SIXTEEN TO ONE MINE, INC. is, and at all times herein mentioned was, in various times and changing conditions operating pursuant to authority granted by the Porter-Cologne Act with regard to either mine waste or surface water drainage; however at no time prior to the discovery of toxic water from the Happy Jack was plaintiff aware of water contaminated with Methyl Tertiary Butyl Ether (MTBE) or other fossil fuels on its property.
11. Concern over water contamination caused by the gasoline additive MTBE has raised new questions concerning the desirability of using the additive as a means of producing cleaner burning fuel. MTBE is used by most refiners to produce the reformulated gasoline (RFG) required under the Clean Air Act in portions of 17 states and the District of Columbia. It is credited with producing marked reductions in carbon monoxide emissions; RFG has also reduced the volatile organic compounds that react with other pollutants to form smog. Over the last few years, however, incidents of drinking water contamination by MTBE, particularly in California, have raised concerns and led to calls for restrictions on its use. In March 1999, Governor Davis of California ordered a phase-out of MTBE use in the state by December 31, 2002. Ten other states, including New York, have subsequently enacted limits or phase-outs of the substance.
12. The main environmental risk of MTBE is that it gives water an unpleasant taste at very low concentrations, and thus can easily render large quantities of groundwater non-potable. MTBE is often introduced into water-supply aquifers by leaking underground storage tanks (USTs) at gasoline stations. Although USTs are much better constructed now than in the 1980s, accidental releases still take place because of the very large number of USTs. The high solubility and persistence of MTBE cause it to travel faster and farther than many other components of gasoline when released into an aquifer. It is also released when gasoline-containing MTBE is spilled onto the ground. Because it is water soluble, it easily moves through soil, polluting both surface and groundwater.
13. Fossil fuels such as diesel and gasoline leaked from underground storage tanks owned and controlled by Sierra County hereinafter referred to as the Alleghany Barn into an abandoned mine working hereinafter referred to as the Happy Jack.
14. The levels of pollutants are greater than what is allowed by federal or state laws as determined through water testing conducted by Sierra County and the Central Region Water Quality Control Board (CRWQCB).
15. CRWQCB requires that known pollutants such as those leaked from the Alleghany Barn receive immediate mediation in order to lessen damage to the environment or public health
16. Defendants failed to take meaningful or substantial steps necessary to reduce, contain or eliminate the pollution from the Happy Jack onto Plaintiff’s property.
17. Plaintiff Original Sixteen to One Mine, Inc entered into an agreement with Plaintiff Michael Miller to take meaningful and substantial steps necessary to reduce, contain and influence the water pollution.
18. Plaintiff Miller performed such work, which accomplished a significant and substantial reduction in water pollutant discharge according to laboratory tests conducted Sierra County and CRWQCB.
19. On February 2, 2009, Plaintiff Original Sixteen to One Mine, Inc. filed a “Claim for Money or Damaged Against the County of Sierra” with the County Clerk. On March 4, 2009, the County Clerk notified Plaintiff Original Sixteen to One that the County of Sierra rejected the claim on March 3, 2009. This lawsuit is filed timely according to the instructions of the Notice of Rejection citing Government Code Section 945.6.in reply to: Clips from Alleghany #4673A ringed tail cat must have crawled into the high voltage electric panels when the power was out. We like those ring tailed but there is one less in Alleghany. Also the power to the air compressor is off due to its unfortunate choice of shelter. Ring tailed cats are rarely seen and the old time miners considered it good luck when around.
Well good luck is in Alleghany today because this is the first solid day of sunshine in weeks.
in reply to: Clips from Alleghany #4672PGE CEO’s must think that the recent imposition of “Smart Meters” is the panecia (cureall)
for all company ills including
power outages. The CEO’s need to
come out and take care of things
the “old fashioned” way. It certainly is not the outfit it
used to be since emerging from
their bankruptcy.in reply to: Miscellaneous #4671Answer to entry below: yes, it is related. On April 30, 2011, the mine property will be sold for back taxes; however, it is unlikely a sale will happen; however again, the company is looking for an investor to provide the money to pay the taxes. In return the investor will receive a good interest rate as well as exceptional security for the loan. The sooner this delinquent debt is paid, the sooner another corporate concern will end. Please contact me if you have money resting in a bank or other “investment” earning pennies. We could use your trust in the mine, the company and the crew.
in reply to: Miscellaneous #4668Remember the Liberty Dollar? Well, its founder, apparently, is headed for some jail time on trumped up charges. How could a supporter of hard currency supported by our Constitution be declared a domestic terrorist by Fed prosecutors? It’s easy, it’s now their game and we’re no longer part of it.
in reply to: Miscellaneous #4670I was on the Sierra County website, and noticed that the property at 505 Miners St
Alleghany was going up for bid for back taxes. That is very close to the Sixteen to One Mine. Is it related?in reply to: Gold Enters Major Bull Market #4669Gold $1417.50 DOWN $3.40
Silver $37.08 DOWN $0.08Gold continues backing and filling as it digests its recent strength into December.
This action should continue into June as Martin Armstrong foresees renewed advancing prices to new all-time highs.Silver has been much stronger than gold and continues so giving up very little ground. Just bought some more one ounce silver Libertads in Cabo yesterday.
http://stockcharts.com/h-sc/ui?s=%24SILVER
The months of April and May should be neutral to lower for the metals which will furnish an opportunity to scale down purchases from recent highs in preparation for the start-up move in both to begin in the first half of June.
Time for some more fish tacos and a Pacifico.
in reply to: Clips from Alleghany #4667Electric power to Alleghany quit on March 24 just before noon. With no power, office work stops. Power back on late last night.
Snow accumulation caused the collapse of roof overhangs and one porch of office building. Snow still a problem with added weight of rain. Sun shining for first time in weeks but temperature still cold. Overall attitudes of towns’ folks is somewhat depressed.
Power still out down the road at Pike (about 10 miles west and 1300 feet lower elevation). People have no heat, no water due to their well pumps. Attitude of Pike folks is way depressed.
Someone must ask the electric supplier (PG&E) why our rural areas are having so many black outs? What has changed? How can service in winter improve? Someone must tell the corporate bosses that the trees must be trimmed. It will save money and possibly lives. The mine suffers without power. People suffer as well.
in reply to: Clips from Alleghany #4666My mother said the town knew that
spring had arrived when the snow
would thaw and one heard the harness bells of the freight teams coming up the canyon from way down, bring in the first,and much needed supplies of foodstuffs and other orders/needs for the town.
My grandfather Armstrong’s family in Honcut, Butte Co. had
a horse-drawn freight service
there and possibily did much of
the required hauling. Not sure
which road they used.in reply to: Clips from Alleghany #466540 inches of snow measured in the Sixteen to One Parking lot at 8 am this morning. Still snowing heavily…the forecast is predicting snow through Sunday. See new photo on home page.
in reply to: Water and Arsenic: which came first? #4663The Attorney General filed a Request for Dismissal of Michael M Miller on March 17, 2011 (copy received March 22, 2011). It asked the Clerk of the Court to “Please dismiss this action without prejudice”. No reasons were given. What are your thoughts by the request as to the qualification “Without Prejudice” if any?
in reply to: Water and Arsenic: which came first? #4664Just talked with Klaus Kolb, attorney for Original Sixteen to One Mine, Inc who is defending accusations by water regulators of wrongful behavior . The Attorney General office sent Superior Court of Sierra County a Request for Dismissal of the Second, Third, Fourth and “Fifth Causes of Action in the lawsuit it filed in Sierra County. Again this dismissal is filed without prejudice.(See below)
How should we react to this second request?
The letter to Klaus also says, “Regardless of this dismissal, the Board expects Original Sixteen to One Mine, Inc. to comply with its obligations under California Water Code and the federal Clean Water Act, including submitting an appropriate report of waste discharge.”
in reply to: Water and Arsenic: which came first? #4661Does anyone really believe that a group of elementary students would require a milling operation to continue their water testing after the mill was closed, if they had a kid’s day in Sacramento and were in charge when the mill shut-down?
Can you just visualize the Water Board telling them all that they had just made a mistake?
Is there any wonder today why students of higher education have little to no regard for authority?
in reply to: Clips from Alleghany #4662The word in Alleghany is snow and more snow. It did rain for approximately one week, week before last. On Saint Patrick’s Day, Rae planted three bare-root fruit trees and four blueberry bushes in her yard. There was more dirt than snow showing at that point in time…then Friday the 18th the town woke up to falling snow. Later in the day it snowed all the way down to 2,000 feet wreaking havoc on traffic in Grass Valley and Nevada City. By Saturday morning there was two feet of fresh powder on the ground in Alleghany. The snow lightened up, but continued non-stop through the weekend and yesterday. There is supposed to be a break today (which hasn’t happened as of this writing), then more on the way Wednesday and Thursday. There’s about three feet on the ground now (it settles down the deeper it gets) which compared to the days of Martin’s mother is nothing….even compared to 20 and 30 years ago, it is a lot less than what we used to get. Hope this isn’t the year we remember what it used to be like.
in reply to: Water and Arsenic: which came first? #4660I wonder if it would be beneficial
to file a claim with State Bar
against those CDAA attorneys.in reply to: Water and Arsenic: which came first? #4659Mike, are you familiar with the lawsuit that give us the right to sue the government, Bivens V six unknown agents?
in reply to: Water and Arsenic: which came first? #4657Friends
I’ve been reviewing my early research and notes shortly after being served the lawsuit initiated by the California Regional Water Board. The research brought up many questions of fact and why the suit was filed in the first place. The California Bar Association and laws require that it is a no-no for lawyers to mislead a California judge (as Gayle Filter, former lead private prosecutor of the CDAA, did here in Sierra County). The lawsuit filed by the Attorney General has a plethora of misleading “facts”, so I continue to be confused why after further review, the referee (the Attorney General) is not eliminating them as evidence and reversing the play of the water agency.Well, that is not the point of this short note to you, who are developing your judgments about this lawsuit. It is this note that I scrawled in a notebook of legal procedural research. I offer it with humbleness:
Don’t know what to say. Don’t know what to write.
Don’t know what to pay. Don’t know what to cite.
Don’t know what to pray. Don’t know what to fight.
Don’t know how to slay. Don’t know what is right.Thanks for your interest and ideas are always appreciated. When environmental issues are used to hinder honest work when there is no actual evidence of environmental harm, all of us suffer the consequences of misleading the court or other responsible public servants.
in reply to: Miscellaneous #4658No CDAA seen yet…because it wasn’t a Home Depot (my apologies) but rather a Staples.
Seems that the Water Bored should be there, though.
in reply to: Miscellaneous #4655Tragically, I just learned on the KFBK news that a man working for a lighting company at a Home Depot, at 6:30 this morning, was crushed to death in the mobile elevator bucket he was operating alone (before his partner arrived) when he got sandwiched between the bucket and the arch of the building where the light was located.
With true respect for his family, I am still compelled to ask:
When will the CDAA show up and bring manslaughter charges against the Home Depot manager and the owner of the light company??
in reply to: Miscellaneous #4656Rick, I’m just glad you didn’t ask, “How many CDAA attorneys does it take to screw in a light bulb?”
in reply to: Water and Arsenic: which came first? #4654WATER QUALITY ENFORCEMENT acts like a rogue elephant too often. The mine is crippled and remains so until the people working in the water agencies honor the laws that birthed their regulations. These people must pay greater attention to the demands upon them as written in the regulations. My dictionary also defines “rogue” as a dishonest and unprincipled person; a trickster; rascal. The 16 to 1 is just one example; however it is not just one simple isolated case.
The roguish behavior of water State employees wants to control everybody and everything. Is it control or wipe out an industry? It is very disturbing. What’s the end game? Is there intent to kill the mine? Water agency people are zealots. Logic and reason don’t necessarily work with zealots. Any movement to stamp out California’s gold mining industry continues with groups as a stated cause. It gives selfish, small mined people a sense of importance, even a sense of power.
The reckless, unlawful and willful legal attack initiated by specific people working for California’s water agencies must cease. The two letters below hopefully will reach responsible managers who will identify and correct those people who initiated legal actions against this old California Company.
California Regional Water Quality Control Board, Central Valley
11020 Sun Center Drive #200
Rancho Cordova, CA 95670-6114Date: March 8, 2011
Facility ID: 5A462023001
Invoice Number: WD-0046644Enclosed is a letter to the State Water Resource Control Board that is self-explanatory.
On behalf of Original Sixteen to One Mine, Inc. I request that you take all steps necessary to evaluate the above-identified facility’s assigned water classification. If a permit for this property is lawfully required, your agency has assigned the wrong classification.
Please be advised and take into account that there were no inspections of this property for eleven years. In 1998 the milling operation ceased which stopped all waste discharges from the operation. Letters were sent and are in your files requesting that a new classification be assigned based upon the actual situations at the property. No one responded.
Last year I noticed that the classification changed from 2B to 2C without any explanation. The invoice was paid with a declaration that the fee was inappropriately assessed due to the wrong classification. This year another request for payment was sent. It was not paid but a return letter was sent to the billing agent with an explanation and request for a reclassification. No one contacted the Original Sixteen to One Mine, Inc.
The actions of the Water Control Board have injured this company and continue to cause a loss of money, business opportunities and other related harm. It is beyond the breadth of my mind to understand how and why the California water public agency continues to ignore its responsibility to a California business and the general public. Please send this letter to whoever has the responsibility for establishing the fieldwork to properly classify water regulations in Sierra County. Also, please contact me directly forthwith that this request is in the proper department for review.
Sincerely,
Michael M. Miller, PresidentState Water Resources Control Board
Division of Administration Services
P.O. Box 1888
Sacramento, CA 95812-1888Date: March 8, 2011
Facility ID: 5A462023001
Invoice Number: WD-0046644
A Notice of Violation of failure to pay the required annual fee, posted in Sacramento on March 3, 2011, was received today, March 8, 2011. For questions a number was given, 916-464-4612, which I called about 11am today. I left a return phone number, name and Invoice Number with a request for a return call.
There is no violation because the amount cited as past due in not the correct amount of the required fee according to the law. The law requires a fee is set according to standards, which were ignored by the individuals responsible for setting a required fee.
An on site request was sent to the appropriate water agency upon receipt of the invoice. There has been no contact by the water agency to investigate and reclassify the Sixteen to One mine site.Please acknowledge your receipt of this Notice for Correction and take steps necessary to correct the wrongful classification and subsequent invoice that you write is violating Water Code Section 13261.
On behalf of Original Sixteen to One Mine, Inc
Michael M. Miller, Presidentin reply to: From the Sixteen to One Archives #4653Recently this letter found its way to our office bundled with other correspondences about selling the mine Our Company bought the Rainbow Mine on May 4, 1943, which has been on its wish list for exploration for decades. Our mining ancestors ran the 1500-foot level towards the rich vein in the 1950’s but never pushed the project to actually intersect the Rainbow workings. Now our efforts are northward, away from this old mine to the south. Maybe we should offer this proven and valuable gold mine for lease or joint venture and give someone else the opportunity to prosper in this bull gold market.
This is an important historical letter. A glossary of names will help the reader: Stewart M. Marshall director and president of Alleghany-Rainbow Mines Company (incorporated July 23,1937); Bennett (C.A. Bennett) was head management in Alleghany for many years; Mr. Maxfield was president; Duke owned the Gold Crown/Wonder mines, which we bought in 2005; C.C. Cushwa managed the Spring Hill mines in Grass Valley; Bortner was a miner living in Alleghany.October 22, 1942 Mr.Stewart M. Marshall
San Francisco, Calif. Rainbow Claims and Equipment
Dear Sir:-
As you were advised that I intended, Briggs and I went to Alleghany yesterday and visited the Rainbow in a hasty attempt to cover all the matters mentioned in letter of October 17.
I talked at length with Bennett, of the 16 to 1 mine, about the land and about the equipment on the property. Bennett would be interested if he were not faced with the shutdown order, but he says he is not at all sure that the 16 to 1 will be able to weather the blast of shutdown and, like most people directly affected by the order, he doubts whether or not there will be an American left after the war is ended. I believe this last is an unduly pessimistic outlook, and that Bennett is not as much worried as he is irritated.
Bennett would have been decidedly interested a few weeks ago, and I believe there is a chance he can now be interested, on the basis of a deferred payment settlement, which may or may not interest you. I asked if he would object to our approaching Mr. Maxfield, which he denied, but he did state that it would probably be impossible to interest Maxfield without his (Bennett’s) approval.
I asked several men in Alleghany about Duke’s reputation, and find it very dubious. One man said that a charitable statement about Duke would be that he is crazy: Bennett advised against any dealings unless cash is paid on the nail: Bortner has worked for Duke, and has a bad report about the man’s misinterpretations. It seems that Duke has repeatedly involved you and the Rainbow Company in his own fanciful operations in the Alleghany district. He is entirely insolvent. Also, according to Bortner, he claims title to some land owned by the Rainbow Company.
Regarding the old house on the top of the hill, now occupied by an elderly woman, a pensioner on the State Relief rolls: this place is a cross between a garage and a barn, with the barn having the best of argument. The sole feature of the building which is of any value as salvage is a corrugated iron roof, worth about $25.00 at going prices for used corrugated roofing. It might conceivably be valuable as a storeroom so Alpha or some other merchant interested in futures, but right now, when there are 45 empty houses in town, its immediate value is pretty close to nothing. Mrs. Devon, the lady who inhabits the place, was not available during my visit, but she is reliably reported as drawing a state pension (Old Age), and was forced to move away from her son-in-law’s house in order to retain the pension, as the state threatened to withhold the $40.00 pension if she continued with her daughter. This is why you can now rent the house to her. The $7.50 rental is simple, and the place is not worth wrecking. Polglase, the storekeeper in Alleghany, asked for a minimum price, and said he would try to find a buyer. I also asked Dortner to develop a sale idea if possible.
The equipment at the mine, while in good order, is old-style machinery. The two compressors are about 12” bore by 12 inch stroke, single stage machines, no unloaders discoverable on either machine, and the valves on both are pro-plate-valve types. They are entirely serviceable of their kind, but are very heavy. They are driven by old motors, one of which, rated at 50 HP, a very old General Electric squirrel cage motor, weighs about two tons and will probably stand a 150 HP load for an indefinite period without undue temperature rise. The 75 HP motor, driving the Ingersoll-Rand compressor, is about the same size as modern motors of the same HP and RPM: the GE motor is 720 RPM, unless I made a mistake, while the Westinghouse motor is a 900 speed. The old sharpener is an IR 50, and is heavy and obsolete, and will not pay the cost of moving to the highway. The smaller motors, rock drills, steel, saw frame, pump, while not the newest types, are still serviceable equipment and may be worth hoisting to the highway. The rails are badly rusted, but there is a total of about 8000 linear feet of 12 pound rail, or say 15 tons; Pockmann says he can pay about $30.00 per long ton for this sort of rail, if straight and free from surface bends. Some of the rail is badly corroded that it will not be useful. However, after we get the rail to the highway, it will still cost about $8.00 per ton to haul it Sacramento. The mine cars can be forgotten as valueless. The pipe leading into the mine in 3” casing pipe, badly corroded or rusted, and is worthless. There is a large supply of iron and steel, but it is not worth taking out.
Aside from the motors, the control equipment is first class, although several years old, and is just as good as new for practical purposes. There are two small dry lighting transformers, of an old type and irregular make, but serviceable. The 3-year-old transformers in the substation are very heavy for 40 KVA units, each containing 100 gallons of transil oil for insulation, with fins for cooling same: they may be salable, as I have had an inquiry recently about 6600-440-220 transformers. Bortner said these were the property of the Rainbow Company; PG & E has recently installed some modern 10 KVA’s and disconnected the older large machines. These transformers are not listed in your statement of the Rainbow equipment, and may not be Rainbow property. I presume that the power line in the property of PG & E. The wires leading underground are worthless except as scrap copper.
Getting this material out of the canyon will be a costly slow job. Biggs estimates the cost at $400 to $500. It will be necessary to set up some kind of power for the hoist, as the old gas engine is worn out, and is probably too weak for raising materials out of the bottom. Bennett offered use of a 15 HP hoist which he is not using; we have here at Spring Hill the old winze hoist. I thought of using a tractor for the hoist, but there is no level space long enough for the run. The standing cable on the old towers is so badly rusted and burred that it looks like a porcupine; we can test it with a load of rails, or with a chain block, before using. Biggs thinks we shall have to string a new standing (carrier) cable on the towers; this would mean moving the 7/8” hoisting ropes (bought with the 700 winze hoist from the Empress mine) to Alleghany, setting same up, and then recovering it. The old winch used for lowering supplies to the bottom of the canyon looks pretty flimsy; is there one in your office or elsewhere who knows what was used to lower the heavy machines to the bottom? In order to supply electric power for the hoist, we should have to string a cable or wires from the Rainbow to the point where the hoist would be set.
It would obviously be far better to sell the machinery in place than to incur the heavy expense of salvaging the stuff, unless we have a market for the machines before we start. I fear that the cost will be higher than the $500.00 figure. Polglase offers the use of the tractor he has at the rate of $3.50 per hour, including operator; the machine is badly worn. If the tractor is idle for extended periods, the charge will be dropped off. However, we should have to pay the operator’s wages, although he could be available for other work. You realize that a tractor would be necessary to handle the equipment from the head of the tram to the road.
I have not yet had a chance to see the other persons I hoped to ask about the machinery or land, but shall try to do so during the week. Lashbaugh, who was formerly interested in the Seven Aces mine, came in this afternoon about a Cobalt property, and I asked him if the Seven Acres would be interested. Lashbaugh has lost his interest in the Seven Acre property, but said that one Brinker, in San Francisco, might be tried. This suggestion was also made by U. S. N. Johnson, owner of the local Bret Harte Dairy. Incidentally, Lashbaugh says he has an option on a cobalt deposit from which analyses running as high as 8% cobalt have been made by Smith-Emery on samples. It may be worthwhile to look up the office in the Bay district of the Seven Acres mine, if there is one.
It might be desirable, in case we do remove the machinery and are unable to sell it, to store the equipment in the house at the head of the trail. The small motors and lighter materials could be brought to Spring Hill, and the heavy machines left at Alleghany.
Sincerely,
C.C. Cushwain reply to: Gold Enters Major Bull Market #4651Mr. Jim Sinclair today called it the way he sees it in an extremely informative interview concerning gold with Eric King from King World News:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/3/11_Jim_Sinclair.html
in reply to: Ideal Time for Facts #4648COURT AFFIRMS FORESTRY’S POSITIVE ROLE IN ADDRESSING CLIMATE CHANGE is a headline in THE SIERRA booster dated March 4, 2011. The decision verifies carbon benefits of active forest management in a strongly worded opinion by Judge Patrick Riley in El Dorado County Superior Court.
Environmental activists challenged 19 timber harvest plans (THPs) and argued that the plans did not comply with the California Environmental Quality Act because they did not properly or adequately address greenhouse gas emissions from the timber harvesting. Judge Riley disagreed. He said, “In conclusion the court finds all of the issues raised by Plaintiff (CBD) in its opening and reply briefs, whether directly addressed herein or not, are without merit in so far as they contend the THPs involved failed to fully advise the public concerning the GHG issue as well as the entire environmental impact picture and provide a complete and penetrating overview of the environmental and GHG impacts in particular.”
The following quote is the best part of the analysis and why this forest (natural resource industry) decision relates to our gold mining (natural resource production). “This ruling means SPI and other forestland owners can proceed with forest management activities that provide family wage jobs in rural California communities, supply lumber for consumers and conserve forest resources.” Hip, hip, hurray! Hip, hip, hurray for a decision of correct judicial thinking!
The California Forest Association president David Bischel offered, “Efforts by activists to stop timber harvesting and force jobs out of rural California by arguing that forestry harms the environment were soundly rejected by the court. Forestry is the only economic sector in the state that provides a net carbon sequestration benefit, yet taxpayers unwittingly subsidize an endless stream of litigation designed to block it.”
The plaintiff is The Center for Biological Diversity. How and who finances this most likely non-profit corporation? Activists have performed wonderful social, economic and scientific behaviors throughout history. The environmental fear and unscientific banter went too far and became lost in a herd of well meaning people who have been ruthlessly misled. The pendulum swings and it is picking up momentum. Even though, our plight with water regulators from Sacramento needs a broader base of awareness. Help any way you can. Our young men in Sierra County, Yuba County and Nevada County also need “family wage jobs”. Efforts to stop mining in California harms everyone except the handful of activists and lawyers who continue to mislead the public and the governmental employees who carry out the foul repression.
in reply to: Miscellaneous #4647The following is from Tony Baker a friend of the Company:
With the turmoil in the middle east and rising oil and gas prices, it’s time to reflect.
Does anybody remember the reason given for the establishment of the DEPARTMENT OF ENERGY ….. during the Carter Administration?
Anybody? Anything? No?
Didn’t think so!
Bottom line: We’ve spent several hundred billion dollars in support of an agency…the reason for which not one person who reads this can remember!
Ready?? It was very simple . . . and, at the time, everybody thought it very appropriate.
The Department of Energy was instituted on 8/04/1977 TO LESSEN OUR DEPENDENCE ON FOREIGN OIL.
AND, NOW, IT’S 2011 — 34 YEARS LATER — AND THE BUDGET FOR THIS “NECESSARY” DEPARTMENT IS AT $24 BILLION A YEAR. IT HAS 16,000 FEDERAL EMPLOYEES AND APPROXIMATELY 100,000 CONTRACT EMPLOYEES, AND LOOK AT THE JOB IT HAS DONE! THIS IS WHERE YOU SLAP YOUR FOREHEAD AND SAY, “WHAT WERE THEY THINKING?”
A little over 34 years ago, 30% of our oil consumption was imported. Today 70% of our oil consumption is foreign imports. The good old Federal bureaucracy!!
WE HAVE TURNED THE BANKING SYSTEM, THE AUTO INDUSTRY, and now OUR HEALTH CARE OVER TO THE SAME GOVERNMENT?
Hello!! Anybody Home?
in reply to: Ideal Time for Facts #4650[putting Mike Miller’s previous post back on top]
read below:
in reply to: Miscellaneous #4649Tony Baker, Bluejay:
Only thinkers are even aware of the progressive creep. Since we are thinkers, and of sound practical mind, remember this:
It is all predictable, and has been: search the “coffee-cup” campaigne in the 50’s to hear Ronaldus Magnus speak precisely to this issue, 50 years ago. It is creeping over the edge, and still, we will throw it back overboard.
I think the sleeping giant isn’t sleeping inside the belly. I’ve not given up. In fact, I’m fired up.
in reply to: Miscellaneous #4646The Feds sue to overturn Arizona immigration law. Justice Department lawyers argued that the state statute should be declared invalid because it has improperly preempted federal law.
The Federal Government set up laws and regulations for mining, too. They were in place (with a few updates) for over one hundred years. They have set acceptable limits for arsenic in mine discharge waters. There are safety rules to protect the miners. However, the State of California has been listening to terrorists and fanatics who do not have our wellbeing at heart. They have decided that the federal regulations are not to their liking. With the federal regulations, at least you knew where you stood and could plan your operation accordingly.
Now, the State is in dire financial difficulty. Maybe, we should go back to a time when we were prosperous. Look at why we were prosperous and do what we can to be that way again. That doesn’t mean that we can’t learn from our mistakes and do it even better the second time.
in reply to: Water and Arsenic: which came first? #4645“This represents overwhelming indictment of the junk science used to justify nearly two decades of water diversions.” U.S. Rep. Devin Nunes, representing California’s 21st Congressional District.
Water concerns, a topic since the 1860’s, will continue in California indefinitely. There are no solutions, only options for control. Smart, dumb, foolish, wise, sensible, ignorant, impractical, magnanimous, selfish, practical, devious, well meaning and evil minded persons are running the water show in our state. Representative Nunes wrote in the Sacramento Bee, “The science used by Delta regulators is so bad that a federal judge ruled against the government in a landmark lawsuit. Yet the environmental left continues to wage a merciless attack on water users – particularly San Joaquin Valley farmers. They are shamelessly using debunked science to advocate the forced retirement of 1.3 million acres of farmland – a land mass nearly three times as large as the state of Rhode Island.”
Farming in the Sacramento Valley has continued in my family for four generations. Now I am a gold miner and producer in the Sierra Nevada Mountains. Water is a concern. The newspapers don’t have many stories about the issues a gold miner or other natural resource providers face just to operate. California’s proven gold fields are effectively shut down. The gold miners’ numbers are reduced to a faded memory. Will our crop farmers follow the same path towards extinction?
My wonderment about articles like the recent NY Times gold story (The New York Times National Saturday, February 12,2011, page A11) centers on the reporter. Then wonderment moves to the policies of the editorial staff, publisher and finally the principles of the owners. With such inane reporting what is the rest of the paper’s usefulness or credibility? To research, write and publish current stories about the great California Sierra Nevada gold belt and not expose the reader to mining in the Alleghany Mining District is silly to say the least and vacuous to tell the truth. Does a venerable newspaper such as the NY Times condone this quality of story telling?
Mining people laugh or snicker when we read stories in the Times or most publications (story titled, “Old Mines Reopen In a New Cry of ‘Gold!’ ”). Actually we cry silently to ourselves. We are outraged about the latest television assault on our credibility. With the Discovery Channel portraying gold miners and a gold operation in Alaska on national TV as serious, it is no wonder that America is not interested in gold mining. The production of America’s bountiful natural resources located in California and other states is crippled by depictions such as these. So, why are gold miners portrayed as greedy, buffoons or uncaring rapists on mother Earth? How could any serious professional reporter or organization not uncover the Alleghany Mining District during discovery and due diligence? I am baffled. How much did the reality actors get paid for their fictional portrayal of open pit gold mining?
Enough of these questions for now. Solutions are where collective activities must focus. This is just one reason that Original Sixteen to One Mine (by the way, NY Times reporter, this California company is the oldest American owned operation in the US and its premier mine, the Sixteen to One, is the longest operating gold mine in North America. How did you miss it?) struggles to keep its company afloat in an hostile, governmental environment. It is an example of gold mining in the 21st century.
Not all mines are the same and certainly not all operators are either; however, to continually cite ‘potential’, ‘may occur’, ‘could cause’ or other unproven and usually remote or non-applicable negative environmental outcomes from mining are insulting to America. Whatever your philosophical calling, political label, economic prejudice or social outlook may be, those of us who take our work seriously and have the history and knowledge to carryout environmental responsibilities in these blue collar industries of tangible production, think about what you read and hear! Ignorance is the enemy. The pendulum is moving away from reckless account based on fear. Our current situation with unlawful treatment of surface water flowing through our property is an example of willful negligence; however it is willful negligence by our public water control agency.
in reply to: Clips from Alleghany #4639I’m sure glad to see that
Rae, the “mother general”
of the town enjoys shoveling
snow. In my family Armstrong’s
tenure there, the whole town
would be “snowed in” for the
winter. No snow removal except
by shovel and “armstrong” ha,hain reply to: Miscellaneous #4643The link below to the article “Tipping Point” by Martin Armstrong is dedicated to Rick so that he may continue his education as he continues his efforts to wake up the people.
It’s appropriate that Mr. Armstrong’s computer that held the data for the history of the world which could easily predict long term cycle trends was named Socrates.
Politicians are incapable of caring for their people once they get a taste of the power. What they fear the most comes from orators of the truth. Socrates was a tragic casualty of those fears while Martin Armstrong pays the price, as well, for challenging these so-called public servants.
http://www.martinarmstrong.org/files/Tipping%20Point%202-3-2011.pdf
in reply to: Gold Enters Major Bull Market #4642Gold $1436.90 UP $4.10
Silver $36.26 UP $0.59
Silver continues to amaze with $50 to $60 being called for by James Turk for the end of the year. Is it that easy? It maybe just that simple because Mr. Turk have been proven right more time than not.
in reply to: Gold Enters Major Bull Market #4641Recent quote by the professor, Richaed Russell:
When investment “geniuses” like Warren Buffet displays his ignorance by denouncing gold, it adds little to his legacy. Warren’s dad, Howard supported the gold standard). Warren Buffett’s problem is that he only understands balance sheets and earnings. The value of a Picasso or a gem diamond or a bar of gold is outside Buffett’s understanding. Which is sad, because Buffett’s lack of understanding has kept many an American on the sidelines while gold surged higher in terms of Buffett’s beloved paper currencies.
in reply to: Miscellaneous #4638Bluejay, this is precisely why fiscally minded state-houses were voted into office in November. It will be GRAND to watch.
There seems to be a disconnect of understanding between those who see unions as universal, vs. those of us who know the difference between public and private sector unions. (Debating validity of private sector unions is another story for another day.)
The vast difference is stark. Somehow my discussion friends can’t see this. Hmmmm…
I just had a heated (albeit, good) exchange with a friend who cannot, for the life of him, see the difference. It always comes back to the tiresome disconnect of “Oh, okay, so the little guy gets screwed while the rich get richer…”
Such a vast distinction between public vs. private sector existence, and yet, it remains elusive to them.
Years ago, the dreaded word ‘communist’ used to be a rally cry for those of us defending the US Constitution. Now it is the banner cry for people who can’t distinguish the difference between freedom, individuality and self-determination vs. public sector community organizing.
Great…and now we have a Community Organizer for a president.
Is anyone watching the trend????
in reply to: Miscellaneous #4637A consulting firm founded by economist Nouriel Roubini said there could be close to $100 billions of municipal-bond defaults over the next five years as state and local government-debt problems damp the U.S. economic recovery.
That figure would by most estimates represent a significant increase over defaults in recent history, but it doesn’t appear to be as dire as a prediction last year by analyst Meredith Whitneyin reply to: Gold Enters Major Bull Market #4636Gold $1423.10 UP $11.90
Silver $34.37 UP $ 0.39From the Canadian Agoracom.com website:
Tricks of the Trade
posted on Mar 01, 11 10:24AMA page out of the Propaganda Handbook…
Regards – VHF
–
Suppressing Gold and Silver Prices by Using Statistics To Lie
Patrick Heller
February 28, 2011
Readers of this column probably already realize that there are many tactics that the US government and its trading partners and allies can use to suppress precious metals prices.
You can make it appear that supplies are larger than they really are by mobilizing physical reserves without explaining the true source of the supply. You can sell naked short contracts on the commodity exchanges while trying to maintain the illusion that there really is physical metal to cover the contract. You can put fear into the minds of the management of mining companies so that they decide to pre-sell future production to avoid price drops.
On the inventory side, you can do as the International Monetary Fund (IMF) did and require that central bank leased gold had to be reported as physically being in the vaults and part of the reserves of both the lessor and the lessee. Only in the past few years has the IMF given central banks the “option” to accurately report the gold reserves in their vaults that is not under contract to be returned at the end of a lease. You also have exchange traded funds state right in the fine print of their prospectuses that they may own some forms of physical that do not meet the purity or weight requirements of commodity exchanges.
As for the demand part of the equation, you can delay reporting additions to central bank gold reserves, as China did for six years. You can also underreport gold reserves. It’s hard to blame China for purchasing gold on the sly—it kept other parties from realizing how strong demand was and held down prices while that central bank continued to buy more gold.
In addition, there are a variety of tactics that can influence prices without affecting supply, demand, or inventories. Rules and regulations can be changed. Commodity exchanges can increase their margin requirements, even when prices are declining.
The Commodity Futures Trading Commission has proposed regulations (now in their public comment period) that appear to crack down on the manipulation of the COMEX gold and silver markets. However, the reality of the proposed regulations shows that they will have almost the opposite effect. For instance, naked short positions acquired before these new regulations take effect will never be subject to regulation. The regulations are also skewed to limit the purchase of commodity contracts, but have virtually no limitations on the short selling of gold or silver on the COMEX.
One major tactic is for the US government to report statistics that may be accurate as reported, but which are heavily massaged to report data that lulls the public into thinking that the economy is in better condition than it really is. Let’s consider some recent examples.
Last week, the US Commerce Department reported that January durable good orders had increased by 2.7% over December figures. In this instance, the government elected to report the entire statistic. If you exclude orders in the transportation sector, which was skewed by Boeing’s report of a huge 4,900% increase in aircraft sales, however, durable good orders in January declined by 3.6%. As it happens, a high percentage of Boeing’s sales were to the US government for military purposes. Buried later in the report was information that durable goods orders excluding all military purchases, fell by 6.9% in January. This was the largest such decline in more than two years. Durable good orders excluding military purchase is often taken as a proxy to reflect private sector demand.
The headlines picked up the 2.7% increase to report to the public and either ignored or buried the huge 6.9% decline in non-defense orders. Thus, the general public would have the impression that the economy is stronger than it really is.
Last week, the Commerce Department also reported that the sales of new homes in January were at a “seasonally adjusted” rate of 284,000 units. While that statistic was a 12.6% drop from the previous month and down 18% from January 2010, it hid a more worrisome fact. The actual number of new homes sold in January was 19,000. This was the lowest sales of new homes since the Census Bureau started to track this statistic.
When the US Labor Department issued its weekly report on new unemployment claims last week, the focus of the media reports was how it was about 40% lower than the data for two years ago. However, buried in the fine print of the report was a statement that 9.2 million people are still receiving federal or state jobless benefits. Generally, the US government considers people to be unemployed only so long as they continue to receive government benefits. Once the unemployment benefits run out, whether the person has a job or not, people are no longer considered unemployed. By using a statistical trick to drop hundreds of thousands of unemployed people from the ranks of the unemployed, the US government has been able to claim that the unemployment rate is dropping. Little attention is paid to the statistic that the number of employed people as a percentage of the population has been declining.
The government isn’t alone in lying with statistics. The National Association of Realtors recently announced that they had been overstating the number of home sales every month for the past three years or so, perhaps on the order of 15-20%. By misreporting the relative activity in the real estate market, it is just about guaranteed that many who have purchased homes over the past three years have overpaid. If the public had been aware of accurate statistics, home prices would have come down more sharply than has happened.
In sum, when the general public looks at the headlines, they will invariably think that the US economy is in better shape that the fine details in the report reveal. This is exactly what the US government wants to occur. A complacent public will not scramble to get out of the US dollar, pushing up demand and prices for gold and silver as safe havens.
For your own protection, take a skeptical attitude to any reported statistical headlines. Dig down to read the entire report. Further, do a long-term comparison to place the latest report into proper perspective. Don’t expect the US government or the mainstream media to do this job for you. I am confident that when you do your own homework, you will be even more convinced to own gold and silver for insurance against further calamities that may befall the US government, the US dollar, and the US economy.
in reply to: Gold Enters Major Bull Market #4635Gold $1412.80
Silver $33.48Metal’s Round Up from King World News:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/2/26_KWN_Weekly_Metals_Wrap.html
Hope you’re feeling better Mike
in reply to: Miscellaneous #4632Silver closed $33.38 UP $1.27
Silver is in the process of adjusting to its unknown true value as the price suppression scheme has ended with monstrous losses for those who sold silver short and continue to remain short.
There have been reports that the current total short position in silver is equivalent to one year’s world mine production. This could be right around 800 million ounces or so.
Top 20 Silver Producing Countries in 2009
(millions of ounces)1. Peru 123.9
2. Mexico 104.7
3. China 89.1
4. Australia 52.6
5. Bolivia 42.6
6. Russia 42.2
7. Chile 41.8
8. United States 39.8
9. Poland 39.2
10. Kazakhstan 21.7
11. Canada 19.6
12. Argentina 17.1
13. Turkey 14.0
14. Sweden 8.7
15. Morocco 8.3
16. Indonesia 7.7
17. India 7.3
18. Guatemala 4.2
19. Iran 3.5
20. South Africa 2.6Silver is in short supply. The Royal Canadian Mint is having difficulty acquiring the metal.
in reply to: Clips from Alleghany #4634Where to begin, oh where to begin from Scoops last report.
The weather is always safe. The California storm smacked the Sierra Nevada, centering on Nevada and Sierra Counties. About 20,000 lost power and PG&E says some won’t have electricity for three more days. It is cold. Alleghany weather watchers report 11 degrees last night. Lots of snow, some of the biggest storms in years.
Mike felt some stomach pain early Wednesday morning. It got progressively worse and he showed some good sense by driving down the hill to Yuba Docs for an exam around 3pm. That doctor thought appendicitis and order him to the hospital ER. He was admitted at 6pm, had more tests and nasty appendices was confirmed. About midnight he went under the knife for an appendectomy. What causes the appendices to infect and blow up? Operation seemed good so he checked out of the hospital about 2pm, drove his truck to get 100 gallons of diesel and returned to the mine around noon on Thursday so the loaders could keep up with the roads.
Youths are snow boarding in Alleghany, kind of tough because there are no lifts to get them back up the hill. In the 1940’s the miners rigged a slusher so the folks could actually have a ski run. Alleghany is a special place. Long live gold mining and gold miners and gold owners. America, wish them luck. They need it and so do you.
in reply to: Gold Enters Major Bull Market #4633Excerpt from today’s International Forecaster written by Mr. Bob Chapman:
The major media is as complacent as ever because they are totally controlled. It is not ignorance or incompetence. It is control. The media tells us the stock market is headed higher, but fails to tell us why. The reason is manipulation by the US government, and those who control it, and funds swamping the market via QE2. This is an economy where few jobs are being created, unemployment remains steady and we are told that a rising stock market means recovery, which is far from the truth. Propaganda flourishes as well as physiological warfare. There is no truth for the American people and the people of the world, it is all controlled and capsulated for consumption and control. There is no real recovery; it is all smoke and mirrors to mislead the public.
Government and the media declare there is no inflation, but yet it abounds. This is the same media that has ignored the climb in gold and silver prices for 11 years. They have few explanations as to why gold and silver prices are rising. It is because the value of fiat currencies are falling versus gold and silver, but that is not the explanation we hear. We are told a number of absurd falsities.
Gold and silver are just now beginning to break out of government instigated doldrums, which has been government induced by those who own the Fed. None of the old tricks and nostrums is working anymore, so new tactics are being taken. You have seen ongoing attacks on gold and silver that has been going on since 1988, and in the last 15 years they have been relentless. As of late the theme is destroy the gold and silver shares to make people believe that there is little value there, to shake novices out of their positions. The psywarfare plan is to force down gold and silver share prices and gold in order to destroy silver prices so that JPM and HSBC can cover their shorts. It hasn’t worked and won’t work.
Needless to say, we get the usual from CNBC, CNN, MSNBC and Fox. Is it a bubble or a craze? Again, what else would you expect from a media which is usually wrong.
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