Tag Archives: Boundary Waters

Another Note on the Boundary Waters Reversal

Jorjani Calendar

A 25 July 2017 entry from Daniel Jorjani’s calendar shows a meeting with Antofagasta Plc on the Twin Metals project.

One point I hoped to get across in Monday’s post about the Boundary Waters reversal has to do with journalism, or, more broadly, with storytelling. Just to highlight: scandal-mongering that generates clicks doesn’t necessarily get at the more prosaic and more complex truth of the story, and may end up doing a disservice. In the case of the Boundary Waters reversal, it is tempting to focus on the story of Chilean billionaire Andronico Luksic Craig and his Washington, D.C. tenants, Ivanka Trump and Jared Kushner. Was Luksic Craig’s purchase of the mansion where Jared and Ivanka now live an opening bid? Was the reversal connected to the rental?

This story of the rich and famous still merits investigating, but it carries with it a whole set of ideas — exaggerated and somewhat cartoonish ideas — of what corruption looks like: foreign billionaires, mansions, nepotism, winks and nods (remember what Luksic Craig said about meeting Trump at the Patriots’ game: “lo saludé.” “I said ‘hi’”).  All of those elements are certainly in play here, and they are part of what makes this administration appear so unabashedly corrupt and downright villainous.

At the same time, the story of Luksic Craig and his D.C. tenants could turn out to be a red herring, or what nowadays people call a nothingburger or fake news. Besides, there’s another, more immediately credible story that’s just there for the telling. What it lacks in tabloid glamour it makes up for with evidence. It unfolds among the banalities of meeting rooms, conference calls, memos, and after work events. This is the story Jimmy Tobias pursues in an excellent piece in the Pacific Standard, which I had not read before writing my post (and which, after reading, I linked to in a postscript).

Tobias beat me to the punch on the FOIA request, and obtained Principal Deputy Solicitor Daniel Jorjani’s calendar from May through December of 2017. He identifies two meetings about the Twin Metals project. The first is on June 14, 2017, with Raya Treiser and Andy Spielman of WilmerHale, the law and lobbying firm, on behalf of Antofagasta Plc.

Spielman is the Chair of WilmerHale’s Energy, Environment and Natural Resources Practice, and his name appears on the calendar heading, so we know that this is a high priority matter for the lobbying firm and presumably for the Department of Interior. And Treiser comes directly from the Department of the Interior, where she served under President Obama. She helped to “streamline” permitting on large infrastructure projects, and worked on the reform of offshore drilling regulations and energy development in Alaska. Now, as her biography on the WilmerHale site informs us, she has “successfully leveraged her substantive knowledge and insight into government processes.”

The second meeting is directly with Antofagasta Plc: the Chilean mining company comes to the Department of Interior to discuss its Minnesota claim, and it appears the Department rolls out the red carpet. WilmerHale had done its work. In addition to Principal Deputy Solicitor Jorjani, thirteen administration officials are in attendance, representing the highest reaches of the Department of Interior, the Bureau of Land Management, and the Environmental and Natural Resources Division of the Department of Justice. As Tobias notes, no conservation groups were invited to discuss the reversal with the Department of Interior. This was a conversation for insiders only.

At the center of this story is not a mansion, but a revolving door (and if you are not familiar with Bill Moyers’ short video essay on the subject, you should be). This feature of the story becomes even more apparent when we look at a couple of other meetings on Deputy Solicitor Jorjani’s calendar that Tobias didn’t flag but are connected with the Boundary Waters reversal. One is a Friday, May 26 call with Rachel Jacobson of WilmerHale, regarding a “DC Bar Event”; this call or this event might well have provided an opportunity to tee up the Twin Metals issue. It is the first contact WilmerHale makes with Principal Deputy Solicitor Jorjani— and who should they choose for that task but Jacobson, who held Jorjani’s job of Principal Deputy Solicitor under the Obama administration.

Then on Thursday, September 7th, when work on the reversal memo is presumably well underway, there is an internal meeting on Twin Metals: Jorjani with Jack Haugrud, who was Acting Secretary of the Interior until Zinke’s appointment, and Joshua Campbell, an Advisor to the Office of the Solicitor. Campbell is profiled here, on Western Values Project “Department of Influence” site, documenting the revolving door between special interests and the Department of Interior.

In these meetings, the public interest does not even come into play.

Postscript: Today, as I was writing this post, the Washington Post reported that the Forest Service will cancel a planned environmental impact study and instead conduct an abbreviated review of the Obama-era proposal to withdraw the Superior National Forest lands near the Boundary Waters from minerals exploration for up to 20 years. The story also appears in the Star Tribune. Things are moving fast now, and pressure is mounting.

Is Corruption at Interior Putting the Boundary Waters At Risk?


On the afternoon of Friday, December 22nd, with Congress in recess and most Americans already starting their holiday celebrations, the Department of the Interior issued a 19-page legal memorandum reversing hard-won, eleventh-hour Obama-era protections for the Boundary Waters Canoe Area Wilderness in northern Minnesota. Signed by Interior’s Principal Deputy Solicitor Daniel Jorjani, Memo M-37049 allows Twin Metals, a wholly-owned subsidiary of the Chilean conglomerate Antofagasta Plc, to renew its leases of Superior National Forest lands where it proposes to mine copper, nickel, and other minerals for the next 100 years.

Even one year of mining would scar the land, destroy wetlands, wreck the forest and fill it with industrial noise, and pollute the water. And this kind of mining — sulfide mining — always risks major environmental catastrophe, long after a mine is closed and the land reclaimed. After a brief reprieve, the Twin Metals project is again threatening this unique public wilderness area, along with the thriving tourist and outdoor economy that has grown up around it.

The reversal was immediately met with allegations of corrupt dealing. In a statement calling the move by Interior “shameful,” Minnesota Governor Mark Dayton cried foul.

A December 22nd headline in the Wall Street Journal offered what appeared to be a straightforward explanation: cronyism. “Trump Administration to Grant Mining Leases That Will Benefit Landlord of President’s Daughter Ivanka Trump.” But Chilean billionaire Andronico Luksic Craig, whose family controls Antofagasta Plc, and who only after Trump’s election purchased the Washington, D.C. mansion Ivanka Trump and Jared Kushner rent for $15,000 a month, claims never to have met his tenants, and says he met Donald Trump only once, at a New England Patriots game.

It’s unclear whether Luksic Craig’s denials can be taken at face value and whether they are enough to dispel the notion that the reversal was made directly to benefit Antofagasta or the Luksic family. What prompted the action? Who directed it? Who contributed to the memo, and who reviewed it? What conversations did Interior Secretary Ryan Zinke, Deputy Solicitor Jorjani, and other administrators have about the reversal, and with whom?

The public deserves clear answers to these questions, and last week, I submitted a FOIA request to the Solicitor’s Office at the Department of the Interior, to see if I might gain some insight into the process behind Memo M-37049. At the same time, it’s worth noting that these are not the only questions worth asking. Luksic Craig and his Washington, DC mansion may make good headlines, tabloid fodder, and Twitter snark, and there is no ignoring the whiff of impropriety about his real-estate dealings with the president’s daughter and son-in-law, who also happen to be senior White House advisors. But that’s not the whole story here. A scandal involving Luksic-Craig and his tenants, or some direct dirty dealing between Antofagasta and Interior, might eventually come to light, but the prospect of such a scandal might also serve to distract us from other, large-scale corruption that continues to put the Boundary Waters — and other public lands and waters — at serious risk.

Put the reversal in context. Consider, for example, the Executive Order, entitled “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals,” that was issued just two days before the Boundary Waters reversal, and which, like the Interior memo, sets the stage for exploitation of mineral resources on public lands. The EO appeared to be the policy outcome of a U.S. Geological Survey of the country’s critical minerals resources published on December 19th; but Trump’s December 20th order was years, not one day, in the making.

The EO revives Obama-era legislative battles over so-called strategic and critical minerals and declares victory by executive fiat. Back in 2013, pro-mining measures introduced in both the House (HR 761) and the Senate (S 1600) promised to “streamline” the permitting process for multinational companies mining on federal lands, like Superior National Forest. The Obama administration opposed them on the grounds that they would allow mining companies to circumvent environmental review. Proponents of HR 761 called it cutting red tape; the resolution actually tried to shut the public out of the process. It touted jobs, but, as critics pointed out, provided no real strategy for creating them; and it hawked anti-Chinese hysteria of the kind that candidate Trump regularly advanced. (Tellingly, House Republicans rejected a motion that would have barred export to China of strategic and critical minerals produced under the HR 761 permit, in tacit acknowledgment that China drives global demand for copper and nickel.) Coming just two days after this EO, the Boundary Waters reversal looks less like a one-off favor to a Chilean billionaire, and more like a coordinated move in a broader campaign.

This subversion of public process is not just the dirty dealing of a few bad actors. It’s also the consequence of weakened institutions; and institutional sabotage — or what Steve Bannon pretentiously called the deconstruction of the administrative state — is the precursor to large-scale corruption. Scott Pruitt might still be the poster boy for putting the fox in charge of the henhouse, but Ryan Zinke appears to be pursuing a similar brief at Interior. Though his bungling of the offshore drilling announcement made him appear incompetent, he is making big changes to favor big mining. The Secretary has made it one of his agency’s top ten priorities to “ensure access to mineral resources” and committed to minimizing “conservation objectives” that interfere with extractive industrial development. His plan to shrink Bears Ears followed a map drawn by a uranium mining company. At Grand Staircase-Escalante and Gold Butte National Monuments, Zinke has virtually surrendered vast swaths of public lands to extractive industry.

The Boundary Waters reversal, too, looks like the work of institutional saboteurs. It settles a lawsuit against the Department of the Interior by conceding that the government should not have discretion over public lands when commercial interests are at stake. Its author, Deputy Solicitor Jorjani, did a brief stint at Interior during George W. Bush’s second term, but it was his high profile job as Executive Director of the Koch Institute that distinguished him as the right man for Ryan Zinke’s Interior. As Polluter Watch, a project of Greenpeace, notes, Jorjani was the Koch Institute’s very first hire, and among the five most highly compensated employees at the Charles Koch Foundation. Now, along with Scott Cameron and Benjamin Keel, Daniel Jorjani works with the team at Interior charged with “reviewing rules their previous employers tried to weaken or kill,” according to reporting by the New York Times and Pro Publica. Similar deregulation teams, “connected to private sector groups that interacted with or were regulated by their current agencies,” were formed at all administrative agencies. The teams put public institutions at the service of powerful patrons, subordinating public protections to private interests.

This capture and sabotage of government agencies compounds and multiplies risk, removing public safeguards and compromising appointed guardians. In the case of the Boundary Waters, the risk of irreversible damage and environmental catastrophe would extend far beyond the mining location, because mining in Superior National Forest would also significantly intensify the cumulative effects of the recent boom in leasing, exploration, and drilling throughout the Lake Superior watershed.

All around the greatest of the Great Lakes, the industrial footprint of sulfide mining operations is expanding rapidly. Just to the southwest of the Boundary Waters, for example, Polymet, a company that has never operated a mine before, proposes building an open pit copper and nickel mine that will require water treatment and tailings dam maintenance “in perpetuity” — that means forever. Meanwhile, Scott Pruitt is dismantling federal rules requiring hardrock mining companies to take financial responsibility for cleanup.

State regulatory agencies are poorly equipped to oversee these new projects. They often fail to give the public a meaningful voice in permitting, or obtain the required prior consent from the region’s Indigenous nations. For their part, many state politicians are racing to deregulate, or at least accommodate, the mining companies. Just this past October, Wisconsin republicans repealed the state’s Prove it First law, which required copper, nickel and gold miners to prove that they could operate and close a sulfide mine without producing acid mine drainage. (They never proved it.) In Michigan, where Canadian mining companies are moving aggressively into the Upper Peninsula, State Senator Tom Casperson has just proposed giving mining companies and other representatives of industry “disproportionate clout” in the review of environmental rules.

Obviously this all goes way beyond doling out favors to billionaire friends or cronies at Mar-A-Lago, and it didn’t start when the Trumps came to town. Until it is called out, voted out, and rooted out, corruption at this scale – coordinated, institutionalized, systemic – will make a mockery of rule-making and oversight, and put our public lands, as well as our public life, at risk.

Postscript: This January 10th article by Jimmy Tobias in the Pacific Standard takes a careful look at Daniel Jorjani’s calendar, which was obtained through a records request, and identifies two meetings with representatives of the Twin Metals mining project: a June 14, 2017 meeting with Raya Treiser and Andy Spielman of WilmerHale on behalf of Twin Metals, and a July 25th meeting with Antofagasta Plc. I discuss these meetings in this follow up post.

Miner’s Almanac

It’s difficult for me to read the grim news of the chemical spill in West Virginia without thinking immediately of my friends in Minnesota. “A 23 year gap in oversight” is now listed among the chief causes of the spill of 4-methylcyclohexane methanol into the Elk River. How, in the wake of this disaster, or in light of any of the other industrial spills and explosions and disasters that seem to be in the news nearly every week, can anyone in Minnesota still seriously entertain the idea that Polymet Mining will maintain water treatment facilities for up to 500 years at its open-pit sulfide mine near Hoyt Lakes?

If Freedom Industries, the Department of Homeland Security and other government entities can’t keep track of one storage tank in West Virginia for less than a quarter century, how are we going to keep track of a toxic site on Lake Superior for five centuries? The whole thing seems so absurd, like a really bad joke, told with a sinister wink and a nod.

As I tried to suggest in a previous post, the debate over Polymet’s 500 year water treatment model projects responsibilities so far out into the future as to render them utterly meaningless, making a farce out of the very idea of oversight or even what in the ugly parlance of the regulator is called “environmental impact.”

But just a couple of weeks ago, in a roundtable on Polymet aired on Twin Cities Public Television’s Almanac program, host Cathy Wurzer dutifully took up her part in the farce, fidgeting with her fancy glasses to indicate that she was being serious and inquiring of her guests whether this “has this been done, this kind of treatment, over this amount of time, has it been done successfully elsewhere?” Really? I half expected someone to remind Wurzer that reverse-osmosis technology wasn’t exactly around in the year 1514. Instead, Kathryn Hoffman, an attorney with the Minnesota Center for Environmental Advocacy, politely answered: “we certainly have no models or examples of successful mitigation over that period of time,” and to her credit she kept a straight face and even managed to cite “over 42 exceedances” of water quality standards at Eagle Mine in Michigan, where water is treated through reverse osmosis – and the mine has not even yet gone into production.

Only later in the program did Becky Rom, of the organization Sustainable Ely, suggest that “it’s not rational to believe” that the facilities Polymet builds today will last “for hundreds of years.” That’s exactly right: it’s completely irrational. In fact, it’s a ridiculous fantasy – or a pathological delusion — to think that Polymet itself will be around fifty or one-hundred or five-hundred years from now, and “always in compliance” as Frank Ongaro, Executive Director of Mining Minnesota declared on the same program.

But that’s only the most egregious falsehood that Polymet and pro-mining groups are asking us to credit.

Pro-mining guests on Almanac were also trying to foist on the public the idea that the mining of copper and nickel at the Polymet site will be no different — – in terms of its potential effects on the land and water — from the mining that has been historically done on Minnesota’s Iron Range. That is patently untrue, but it tugs at the heartstrings and appeals to the nostalgia and pride that the immigrant mining story still inspires: that’s why Polymet has already secured a place for itself in Minnesota mining history on its website, and it’s also why Carly Mellin, who hails from the Iron Range and serves as Assistant Majority Leader of the Minnesota House of Representatives, played the heritage card at the end of the program: “we’ve been mining 132 years on the iron range and we still have an absolutely beautiful region of the state,” she said, in what sounded like a clearly rehearsed closing remark, “and I plan to continue for it to be beautiful after copper-nickel mining.” Lucky for her there was no time for people to press her on what exactly those plans are and how she plans to realize them.

For his part, Frank Ongaro kicked off the entire debate with a misleading statement that cast Polymet’s mining project as a matter of self-sufficiency – a project done in the national interest:

We’re sitting in Minnesota on one of the largest deposits of copper, nickel, platinum metals in the world – metals we’re import-dependent on for everything we use, every day in our life.

Carly Mellin reiterated the point a little while later. There may be some traces here of an earlier argument that proponents of HR 761 tried to advance – claiming that mining near the Boundary Waters was “necessary for U.S. strategic interests.” But here Ongaro is really making a cheaper appeal, to jingoism and state pride, and at first blush, he makes a certain amount of sense. Why import what we have in abundance here? If we have metals or other resources we need, why not use them instead of relying on imported stuff?

The copper and nickel taken out of the Minnesota ground will not stay in Minnesota and be smelted and worked as in the days of yore by hardworking Minnesota craftsmen into sturdy tools and smart technologies that twenty-first Minnesotans can use. Mining copper and nickel on the Iron Range may, in fact, have the unintended effect of exposing the region in new ways to the turbulence of the global commodities marketplace.

Rio Tinto’s play for Michigan copper was never about Michigan; it was part of a bet on continued Chinese growth and urbanization. The price of copper – U.S. copper, Chilean copper, Mongolian copper – rises and falls these days on Chinese demand. Copper and nickel mined on the Iron Range will not make us more self-sufficient or serve the strategic interests of the United States. At best, those minerals may be warehoused here for a while, in New Orleans and in other ports; but they are destined for the international market.

This is the cat Frank Ongaro was desperately trying to keep in the bag when Becky Rom called Polymet “a shell company” for Glencore Xstrata, the Swiss global commodities giant. (With about 35 percent of all shares. Glencore is Polymet’s largest investor.)

Rom: I think you have to understand that Polymet isn’t going to be around at year 20. This is a shell company that’s shielding its major investor —
Ongaro (clapping his hands): That’s not true!
Rom: Glencore, that’s known for corruption, and environmental and labor violations —
Ongaro: Every company that operates in the state of Minnesota –
Rom: and at the end…at the end —
Ongaro: –will have to follow state laws, period.
Rom: –at the end of twenty years when they have done extracting the metals and earning their revenue, all they will have as an asset is a polluted mine site. So…we the taxpayer…will carry…the burden for what is going to be in fact hundreds of years.

Eventually, of course, the truth will out. But with precious little time left in the 90-day public comment period that began on December 14th, it needs to come out now.