Pete Morros, Director of the
Nevada Department of Conservation and Natural Resources,
has added a new tool to his job description -- blackmail.
You see, Morros' agency has the authority to
issue permits to mining companies for various purposes.
Without these permits, the mines, by law, cannot open and
work.
This gives a bureaucrat like Morros an immense
amount of power and leverage over the mining industry.
Get on the wrong side of the government and you may find
yourself having difficulty securing a permit.
Tackling a major industry like mining isn't
something your run-of-the-mill government hack does on a
whim. They may play games with podunk folks such as
family ranchers over grazing permits and the like, but
not the big boys like mining companies.
Of course, there are exceptions.
In 1989, the Independence Mining Company
needed to secure a permit from the U.S. Forest Service to
expand its operations. The U.S.F.S. sought input from
other agencies, and the Nevada Division of Wildlife
(NDOW) felt the expansion would have an "adverse
impact" on about 5,500 acres of deer habitat. They
apparently cut a deal with the Forest Service, that,
unless NDOW approved, no permit would be issued to
Independence.
NDOW demanded
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$1.5 million in
"mitigation" money from Independence before a
permit would be granted. After extended negotiations
between NDOW and Independence, an agreement was reached.
Independence would pay half a million dollars to NDOW,
and NDOW would then give the green light for the permit.
Independence is a small company, and with the
two government agencies holding the power of economic
life or death over its head, crawled on its belly and
jumped through the hoops the government masters required.
After paying the money, Independence got its permit.
Problem is, NDOW, a division of Morros'
agency, has no legal authority to blackmail mining
companies for a half million bucks. I looked up the
statutes governing NDOW's permit authority, (see NRS
502.390), and surprise, surprise, the maximum amount a
permit can cost is $100; however, an
"assessment" of up to $10,000 per year for each
such permit is also authorized. Thus Independence was
forced to pay about $490,000 more than allowed by law.
This was brought to the attention of an Elko
County Grand Jury which, after an extensive
investigation,
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