Mineral industry becoming more important
Oregon needs mining bill, lobbyist says
By GREG WASSON
Of the Emerald
SALEM — Oregon is growing
up. And according to Joe Doyle,
lobbyist for the Oregon Mining
Rights Coalition, unless there
are changes in the way the state
deals with mining, there are go
ing to be some pains.
"Oregon has rather low grade
deposits of a number of
different things. What is
happening, is that a whole tier of
mineral deposits around the
world is getting close to being
used up. All of a sudden, there's
a whole lot of mining interest
here.
"There are current proposals
for nickel mines in Josephine
County that would take out
6,500 tons of ore a day from the
tops of a couple mountains.
There is another proposal to do
a strip mine for coal in the
Wallowas And there’s explora
tion going on for uranium in
Southeastern Oregon ”
Doyle's major objective is
passage of SB 505, legislation
aimed at revamping Oregon's
approach to mining. According
to Doyle, the state doesn't have
statutes capable of dealing with
large mines
“It is being labeled as an
environmental issue, but in a lot
of ways it isn’t. Mining affects
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the social quality of a communi
ty, the health quality of a com
munity and the economics,
often negatively.
"It's true that Oregon has to
diversify its economy. Mining is
coming and will provide some of
that diversification. But the
point is that regulating mining in
a fair way is not going to chase it
away.”
But, a publication from the
Associated Oregon Industries
says that's exactly what Doyle is
trying to do.
"The AOI staff," says the
publication, "views the bill as an
attempt to limit mining activities
throughout Oregon.”
Doyle counters that the state
has the mining companies in an
advantageous position.
“The minerals are here. You
can't pick them up and move
them. You either mine them or
you don’t, and there aren't that
many mineral deposits in the
world. That means they've got
to put up with the regulations
that are here.”
One of the regulations that
Doyle wants to enact involves a
reclamation of land once the
legislative
issues
mining is done.
"Right now, the two most
porous regions in the nation are
the iron areas of Wisconsin and
Michigan, and the Appalachians
where they used to mine coal.
They’re the porous areas
because people were allowed to
mine and leave without fixing
the land."
Currently, Oregon law
requires reclamation, but the
state can grant an exemption if
the land can’t be reclaimed at a
reasonable cost.
Senate bill 505 says that if the
State Department of Geology
and Mineral Industries decides
that the present economic and
technical situation makes
reclamation impossible, the
land will not be mined.
In a way, Doyle sees his and
the coalition’s role as modern
day Paul Reveres.
"The mining companies are
here, but they are moving quiet
ly. As an issue around the state,
most people don’t know that the
practice is coming in a big way.
That’s the primary goal of our
organization, to let people know
that mining is coming and they
better do something about it.”
State expects larger revenues,
but foresees no financial relief
SALEM (AP) — The state may
have more money than original
ly expected for the 1981-83
biennium but that's no reason
for high spirits, Executive
Department Director Bob Smith
told legislators Monday.
Smith said that although the
revised official state revenue
forecast appears to offer some
good news it doesn’t mean
"we're out of the woods."
Smith and state economist
Paul Egger gave the Joint Ways
and Means Committee the
quarterly revenue forecast that
projected about $30 million
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more in general fund resources
for 1981-83 than originally
estimated.
Smith said the beginning
balance for the next biennium is
now estimated at $7.8 million
more than projected in Gov. Vic
Atiyeh’s printed budget and that
revenues to be collected during
1981-83 are now estimated at
$22 million more than expected.
“If a person stops their con
sideration of the problem at that
point, it would appear that the
fiscal problems facing this state
are at least well on their way to
solution," Smith said in his
report. "Nothing could be
further from the truth."
He said that unless the tax
increases proposed by Atiyeh
are implemented "our 'im
proved' situation means we face
a $206.9 million deficit in
1981-83.”
Ways and Means Committee
co-chairer Sen. Ed Fadeley, D
Eugene, said that in effect Smith
was telling the committee that
“we’re worse off than we
thought we were . even with
this good news.”
Fadeley said regardless of
whether the outlook is based on
the new experimental forecast
or the traditional one released
today "we are behind where we
thought we were two years
ago."
Smith and Egger said they
would present legislators with
their final revised revenue fore
cast in ‘‘very late May.” Last
month legislators were told the
final forecast might not be ready
until mid-June and they were
concerned the delay might
lengthen the session.
The forecasts become more
precise as analysts have more
tax return information from the
Department of Revenue on
which to base them.
Smith said the latest forecast
does not significantly change
the total amounts shown in
Atiyeh's recommended budget.
According to the new fore
. cast, the state will collect more
corporate income taxes than
originally projected due to
profits higher than previously
expected.
However, this is offset by
projected losses in other areas.
Personal income taxes are
expected to yield $3 million less
than anticipated this biennium
and interest earnings are
expected to be $3.2 million
lower because of a drop in the
general fund cash balance. The
drop in interest earnings for
1981-83 is projected at $18 mil
lion.
The report also estimates that
Atiyeh's tax increase package
will produce $6.6 million less
than expected, in part because
the proposed cigarette tax
boost could not take effect as
early as planned.
Atiyeh had hoped his tax
proposals would raise $241 mil
lion. The Ways and Means
Committee has been preparing
budgets without including the
extra money from the tax
proposals in case they don’t
pass
In his update on economic
trends, Egger told the com
mittee that restrictive Federal
Reserve Board policy has
slowed the pace of economic
activity in 1981 more than was
anticipated in Atiyeh’s budget.