Tag Archives: Department of Interior

A Meeting in Santiago about Mining in Minnesota

I’d like to focus, in this post, on what is so far a unique entry in the Twin Metals timeline: an April meeting at the US Embassy in Santiago Chile, with Ivan Arriagada, the CEO of Antofagasta Plc, and Carol M. Perez, the US ambassador to Chile. We know about this meeting only through documents obtained by Freedom of Information Act requests, and specifically from just one email dated 26 April 2017, sent by Briana Collier to Jack Haugrud:

BrianaColliertoJackHaugrud

Intriguing: but for now, the best I can do is provide a little context.

As the timeline shows, the meeting at the US Embassy in Santiago, Chile in the week of April 26th took place during a period of intense activity around the Twin Metals project. It was held just a little over a week after Mr. Arriagada had written directly to then-Secretary of the Interior Ryan Zinke, requesting an in-person meeting in Washington, DC, on either May 2nd or 3rd. (Arriagada would come to Interior for the first time on the 3rd. Internal emails show that he met on that occasion with several officials at the Department of the Interior, but Zinke is not among them, at least not on the calendar entries I have seen; and if Arriagada met with Zinke separately on May 3rd, there is no entry for any such meeting on Zinke’s official calendar.) So perhaps the embassy in Santiago serves as a way station of sorts, a first stop for Arriagada on his American tour.

It was probably here, in Santiago, that Arriagada first started to make the case he would make in Washington, DC. The letter to Ryan Zinke lays out the appeal the mining company would make at Interior, and it also helps us gain an impression of what this meeting at the embassy was about. It opens with Arriagada declaring that he is “proud” to associate himself and his company — which has never operated a mine in the United States — with “the development of strategic minerals in the United States.” Here in the US, Arriagada clearly understands, minerals acquire “strategic” status when mining companies run into permitting delays and other difficulties. It is, as I’ve noted elsewhere, code for overriding and rolling back environmental regulations. (This leads me to suspect that Arriagada’s letter to Zinke was actually written by the lobbyists at WilmerHale. Whether they played a role in arranging the meeting at the US embassy is impossible to say, given the evidence we have.)

Arriagada’s letter goes on to explain that Antofagasta has already spent “upwards of $400 million in investment” on the “exploratory phase” of Twin Metals. The company frequently brandishes this figure, but I’ve never seen it broken down. Interior’s own Kathleen Benedetto will repeat the $400 million figure a week later, on April 25th, when she briefs Zinke in preparation for his 26 April meeting with Representatives Emmer and Nolan; and the number will be repeated in news stories as well. I am not sure what “upwards” means here, but it seems to be doing an awful lot of work. Principal Deputy Solicitor Jorjani seems to believe caution is warranted: near the end of his December 2017 memo, he notes only that the company “has asserted that it has spent over 400 million in exploration activity.”

For what it’s worth, $400 million is not a number Antofagasta uses in its communications with shareholders or in its financial statements. (See, e.g., here, here and here.) The number routinely associated with the Twin Metals project in these communications is black, not red: $150 million — the value PWC, Antofagasta’s auditor, assigns to the project as an “intangible asset.” When it comes to investments, both the 2015 and 2016 Antofagasta annual reports note a decrease in exploration and evaluation costs, reflecting a “general decrease” in exploration activity “at the Centinela District in Chile and the Twin Metals project in the United States.” There is the added minor discrepancy that this letter characterizes Twin Metals as a “mineral development project, currently in the exploratory phase,” while in the 2016 and 2017 annual reports, the project has already advanced from the Exploratory phase to the Evaluation phase. It appears shareholders and US government agencies are being told two different stories about Twin Metals. In any case, the big round $400 million number is the thing that sticks. It’s used to intimidate and spook. A year later, Zinke will tell Representative Betty McCollum that the Obama administration’s decision exposed taxpayers to “hundreds of millions of dollars” in takings litigation. He was probably recalling Arriagada’s number, or Benedetto’s spin on it.

We now know that Zinke and the Department of Interior were doing Arriagada’s bidding all along, and they’d gotten started well before this letter was written. (And if WilmerHale did in fact draft this letter, then it’s really just some stage business, to create a paper trail for a meeting to discuss an ongoing effort coordinated by WilmerHale.) Interior officials appear to have been less concerned about the exposure of US taxpayers than about the risk the mining company had taken on: “our past and future investment now hangs in the balance,” Arriagada writes in April of 2017. He asks to meet with Zinke to discuss “a viable path forward” for the Twin Metals project. The letter lists three obstacles the Obama administration put in Antofagasta’s way: the M-opinion issued by solicitor Hilary Tompkins; the decision by the Bureau of Land Management to rescind the Twin Metals leases, based on the M opinion; and the withdrawal of thousands of acres of Superior National Forest from mineral development initiated by BLM and the US Forest Service. Remarkably, before Zinke resigned in disgrace, he, Deputy Solicitor Daniel Jorjani, and other officials at the Department of the Interior (and the Department of Agriculture) came through for the Chilean mining company on all three counts.

How any of this work on the mining company’s behalf at Interior bears on the meeting in Santiago, Chile, and what any of it has to do with Carol Z. Perez, the US ambassador to Chile, is hard to say. It’s still not clear why Arriagada thought he should stop first at the embassy in Santiago. A courtesy? An opportunity to get some pointers on how to deal with the new administration? Or something even more specific? To get a better idea, I’ve filed two FOIA requests with the Department of State for communications and documents that will help illustrate the meeting Perez had with Arriagada, but the State Department has labeled the requests “complex,” and I have yet to receive any responsive documents.

We know that Briana Collier briefed Perez, so Perez was looking at the Twin Metals project through the lens of the briefing document Interior provided. And if this briefing was anything like the one page briefing prepared around the same time for Zinke by Kathleen Benedetto — if that April 25 briefing represents the general position of Interior at that point in time — we can observe one thing at least. By April, the US government had completely set aside the previous findings of the US Forest Service and any consideration of the serious environmental risks posed by sulfide mining operations on lands adjacent to the Boundary Waters. The Benedetto briefing makes no mention whatsoever of these concerns. In fact, when Doug Domenech took a briefing on the Twin Metals project for the White House a little over a month later, on June 1, 2017, he apparently read what Benedetto sent him and needed some clarification on this point. That much is clear from Benedetto’s reply:

Benedetto_to_Domenech1June2017

Sic. And with that sloppily written gesture, which barely manages to disguise its contemptuous disregard, Benedetto relegates all science and science-based policy that would caution against permitting sulfide mining in this region to what “people opposed to the project believe.” (The only risk Benedetto appears to consider worth mentioning is the exposure of the American Taxpayer — the initial capitals are hers — to takings litigation, adding that BLM values the Twin Metals deposit at $49.48 billion. The figure is based on a 2014 BLM report that assumes a 44% rate of return. That $400 million investment sure has grown.)

The meeting at the embassy in Santiago needs to be seen in the context of this coordinated push to overturn Obama era decisions, sideline science and environmental protections, and turn Antofagasta’s much-touted investment to a tangible asset — a working mine. Without some response to the Department of State FOIA requests, context will have to substitute for content. Why should the State Department have been asked to intervene in the Twin Metals matter?

Perhaps the aim of this meeting was not to involve the State Department at all. That may not make a whole lot of sense, on the face of it. Perez made her career in the State Department, serving in various posts around the world since the 1980s. She worked for Condoleezza Rice, did a brief stint in Italy, and coordinated State Department anti-drug trafficking efforts before President Obama appointed her US Ambassador to Chile in 2016. She appears to enjoy no special favor with the Trump administration, and she was slated to be replaced by a Trump nominee: Andrew Gellert, who was nominated to the post on January 4th, 2018. And Gellert would be much more closely aligned with the White House than with foreign service officials in the State Department.

This is one last piece of context to consider. We don’t know why Arriagada brought the US embassy in Santiago into the loop on the Twin Metals project. It seems tolerably clear, however, that the US embassy in Santiago would have remained in the loop, and in much closer communication with the Trump White House, had Andrew Gellert been confirmed as US ambassador to Chile. As was noted at the time of his nomination, Andrew is the son of George Gellert, a longtime business associate of Charles Kushner. The Gellerts and the Kushners have done business together for decades, often by nothing more than a handshake — no contracts. Andrew is President of the Gellert Global Group, a food importing conglomerate that does some dried fruit and nut business in Chile, and also counts among its holdings and investments “numerous real estate ventures” with the Kushner Companies. After Charles Kushner’s conviction and imprisonment a decade ago, George Gellert started working closely with Jared Kushner on a number of deals, including the disastrous 666 Fifth Avenue deal. It seems worth noting — even if it’s hard to figure out whether it amounts to anything at all — that back in August of 2018, just a couple of weeks after Brookfield Asset Management paid $1.3 billion to rescue Jared Kushner and George Gellert from 666 Fifth Avenue, Andrew’s nomination to be ambassador to Chile was quietly withdrawn.

Demagoguery in Duluth

Earlier this week, in Duluth, Minnesota, Donald Trump stated that the reversal of Obama-era protections for the Boundary Waters promised great things “for our amazing people and miners and workers and for the people of Minnesota.”  Bizarrely, the president went so far as to claim that mining the Duluth Complex would “make it from an environmental standpoint better,” though it’s impossible to say what exactly “it” might refer to here.

He framed these remarks as an announcement, but it’s also difficult to say what, exactly, he was so “proudly announcing.” Those like Daniel Dale who track the president’s speeches have noticed that he tends to present as new and exciting events and initiatives that are long past, or which in fact have failed or run into trouble. This is especially true when it comes to the president’s statements about blue collar jobs, factories, and the economy.

The timeline clearly shows that the Department of Interior started taking meetings with lobbyists and representatives of Antofagasta Plc and Twin Metals in April of 2017, worked closely and steadily with them through the summer and fall, and issued a legal memo favorable to the mining companies in December of that year. Secretary Zinke’s latest action — the reinstatement of Antofagasta’s mining leases in Superior National Forest on May 2, 2018 — was over a year in the making. Almost all of this work was done behind the scenes, without meaningful public participation. Announcements would only have drawn unwelcome attention.

In Duluth, the announcement of “first steps” that were in fact already taken might have been made to pre-empt or drown out the real news of this week: the filing of a Complaint in the US District Court for the District of Columbia by a group of ten Minnesota plaintiffs against the Department of Interior, the Bureau of Land Management, Secretary Ryan Zinke, and BLM’s Brian Steed.  The Complaint charges that the reinstatement of Antofagasta Plc’s mining leases in Superior National Forest “exceeds their authority under law and is arbitrary and capricious” and asks the Court “to enjoin them from further consideration of applications to renew the two leases.”

Filed yesterday, just hours after Trump’s Duluth rally, this Complaint is actual news. It will not get one tenth of the coverage Trump’s bluster receives.

There’s little if anything that’s new and even less of substance here. I include the video because it’s helpful to consider where Trump is clearly reading from prepared remarks (which might indicate some actual administrative policy step) and where he is simply wandering off on his own into vague promises of some “better” future. He did the latter for most of the minute he spent on the subject of Superior National Forest, veering off, at the end, into incoherence.

Here is my transcript of his remarks on the topic:

Under the previous administration, America’s rich natural resources, of which your state has a lot, were put under lock and key, including thousands of acres in Superior National Forest. You know what that is, right? Tonight I’m proudly announcing that we will soon be taking the first steps to rescind the federal withdrawal in Superior National Forest and restore mineral exploration for our amazing people and miners and workers and for the people of Minnesota, one of the great natural reserves of the world. And we’ll do it carefully, and maybe, if it doesn’t pass muster, we won’t do it at all, but it is going to happen I will tell you that. It’s gonna happen. And it’s happening fast. We’ve already taken it as you know a long way down the road. And it’s gonna make things better. It’s gonna make it from an environmental standpoint better. 

Here, as far as I can tell, is the substance of his prepared remarks.

Under the previous administration, America’s rich natural resources were put under lock and key, including thousands of acres in Superior National Forest. We [have taken] the first steps to rescind the federal withdrawal in Superior National Forest and restore mineral exploration [in] one of the great natural reserves of the world. 

The opening jab at Obama, who locked away riches that are rightfully ours, also makes a mockery of the very idea of conservation and environmental protection. But who’s really paying attention? The audience cheers at the mention of Superior National Forest: “you know what that is, right?” Trump clearly does not, but he tries to milk the cheer anyway; it’s a variation on the tired old comedian’s schtick: who here is from Jersey? Anybody? New Jersey!

Superior National Forest is seen here entirely through the lens of extractive industry: a “natural reserve,” a store of minerals. Just as importantly, the statement makes no mention of the risky mining that this will involve — sulfide mining, a kind of mining the amazing people of the Iron Range have never done before, and which has the potential to destroy the very things people in Minnesota prize about Superior National Forest and the nearby Boundary Waters area.

Marshall Helmberger sums it up in a must read article on the new Complaint in The Timberjay :

Former Forest Service Chief Tom Tidwell, in December 2016, issued detailed findings of fact concluding it was likely that acid mine drainage from the Twin Metals mine would contaminate the BWCAW and cause adverse effects on the water quality, fish populations, aquatic ecosystems, and animal species. Tidwell further considered the possibility of containment, mitigation and remediation efforts and found that very few would be compatible with maintaining the BWCAW’s wilderness character.

While it appears that the president’s prepared remarks also included some vague gesture toward environmental responsibility, Trump turns that bit into a meaningless jumble, saying at first that the mineral exploration of the Duluth Complex will only go forward if it passes muster, then assuring the audience that “it is going to happen…It’s gonna happen,” and when it does happen, “it” is going to make “it” better. “It” here can mean anything, or nothing at all: he’s not offering the crowd anything beyond the word “better,” which is pretty much all they came out to hear anyway.

Purdy on Public-Lands Populism

From the closing paragraphs of Jedediah Purdy’s Whose Lands? Which Public?

In its monuments proclamations, the Trump Administration asserts a sweeping power to reclassify fifteen million acres of protected federal land and hundreds of millions of marine acres. The proclamations already issued, which purport to strip more than a million acres of monument status, are redolent of this Administration’s illiberal and procedurally dubious tendencies. They elevate to federal policy the themes and goals of a strand of Western populism that is tainted with outlawry and racism. The proclamations also cater to extractive industries, particularly uranium, oil and gas, and coal, in ways that resonate with the Trump Administration’s relentless mixing of public wealth and private interest–in a phrase, its penchant for corruption….

Corruption is not a novel concern here. For well over a century, the field [of public-lands law] has been shaped by recognition that precipitate and opportunistic privatization is a perennial temptation in a body of law that governs nearly a third of the country’s acreage and a great deal of its natural wealth. The Executive branch’s capacity for rapid, unilateral, and obscure action makes it especially suited to this form of misappropriation. Recognition of these facts is built into public-lands law in the long-standing asymmetric preference for Presidential power to preserve lands over Presidential power to privatize them…. The kind of opportunistic favoritism that the Trump proclamations display is precisely what public-lands law has been structured over centuries to avert. These proclamations are paradigms of why unilateral Presidential reclassification toward privatizing natural resources would be anomalous in public-lands law. A Court would properly consider the anomaly in deciding whether the power to create national monuments should imply the power to unmake them.

In the case of the Trump proclamations, the question of opportunism and favoritism in reclassification decisions interacts with the influence of racially inflected nationalism and localist outlawry on the Administration’s priorities. Here too, as with corruption, these themes are not novel or alien to public-lands law. Extractivism, settler-colonialism, and the priority of property-style resource claims and local control are, in key ways, continuations of the themes that governed the first hundred years of public-lands law. Their constituencies have never left the field. It is partly because of these constituencies’ persistent opposition to preservation agendas that public-lands law has always been inflected by disputes over national identity, from the utilitarian nationalism of Gifford Pinchot and Theodore Roosevelt’s national forests to the national parks’ much-advertised status as the American answer to Europe’s cathedrals to the claim that wilderness preservation would keep the country from becoming a “cage.”

Here too, public-lands law has been shaped by grappling with the themes that the Trump proclamations raise. And here too its shape contains a good part of an answer. The public-lands populists’ claims on behalf of privatizing and extractive policies already have a specific legal expression that is deeply embedded in public-lands law: in long-standing public rights-of-way across the federal lands of the West, in mining and mineral-leasing regimes, in grazing rights, and in the default policy of extensive public recreational access — and, above all, in the private real estate that was substantially created under federal privatization schemes. In other words, these claims do not come from outside public-lands law. They are part of it, and they occupy a specific place in its structure. Where they have been vested, they tend to persist within new regimes that otherwise emphasize preservation over extraction and economic use. On multiple-use lands, they play a prominent part in the statutorily mandated planning process. Where, however, they are not vested but take the form of inchoate expectations of continued access, they yield on categorically protected lands: new privatizing and extractive claims are almost uniformly excluded under preservation regimes. For such claims to get traction again, the lands themselves must be reclassified. That reclassification is generally reserved to Congress. If the Antiquities Act authorizes the President to hand a victory to public-lands populists by reclassifying hotly contested lands, then it is a dramatic anomaly in public-lands law. It would authorize constant perennial and shifting reopening of precisely the disputes that the field exists to structure and resolve, and through a mechanism that is procedurally orthogonal to the rest of the field.

The Trump proclamations raise a novel question for interpretation of one of the most important public-lands statutes. Like much that this Administration does, however, it is not so much new as it is an effort to reopen questions that many of us had hoped were closed. In this case, they should remain closed.

McCollum Questions Zinke on the Boundary Waters Reversal

This morning, Interior Secretary Ryan Zinke appeared before the House Appropriations Committee at a hearing on the FY 2019 Budget.  The video below marks the moment when Minnesota Representative Betty McCollum questioned Secretary Zinke on the Boundary Waters reversal.

It begins with an exchange on Bears Ears and Grand Staircase, in the course of which Zinke says reporting in the New York Times based on U.S. Department of Interior memos is not “credible.” Fake news.

McCollum then moves the discussion to the Boundary Waters reversal. Her main question, which she asks in a few different ways, is whether Deputy Solicitor Jorjani met with any stakeholders other than lobbyists for Twin Metals Minnesota before issuing his reversal memo.

Zinke’s response that this is all part of the public record is at best disingenuous, given that nearly all the information we have to date about the reversal is the result of FOIA requests; and it’s also Trumpian in its post-truthiness, since Zinke just declared a few moments earlier that reporting based on Department of Interior records is not to be trusted.

At any rate, here is the full exchange:

Twin Metals At Interior – A Timeline

 

March 8, 2016 Department of Interior Solicitor Hilary Tompkins issues an ‘M Opinion’ providing the Forest Service and Bureau of Land Management discretion to grant or deny Twin Metals Minnesota lease renewal application.
July 1, 2016 Seth P. Waxman of Wilmer Hale writes to Solicitor Tompkins on behalf of Twin Metals, arguing that her Opinion was arrived at erroneously and should be withdrawn.
September 12, 2016 Antofagasta subsidiaries Twin Metals Minnesota and Franconia Minerals file a complaint in the U.S. District Court of Minnesota, asserting the non-discretionary “right to successive renewals” of mineral leases in Superior National Forest.
December 14, 2016 US Forest Service Chief Tom Tidwell issues a decision that the Forest Service will not consent to renewal of the Twin Metals mineral leases in Superior National Forest.
December 15, 2016 After the Forest Service notifies the Bureau of Land Management that it does not consent to the renewal of Twin Metals mineral leases in Superior National Forest, the Obama administration releases Memo M-37036, denying renewal of Twin Metals leases. Tracy DC Real Estate, Inc. formed in DC by Luksic’s lawyers.
December 22, 2016 Tracy DC Real Estate Inc. purchases the Kalorama Triangle mansion at 2449 Tracy Pl NW. [For this part of the story, see this post.]
January 3, 2017 First news reports that Ivanka Trump and Jared Kushner are moving into the Kalorama mansion.
January 4, 2017 Official sale date entered for the Kalorama mansion.
February 7, 2017 Michael Nedd of the Bureau of Land Management forwards a briefing paper “previously used to brief the DOI leadership” to staff; cc: Karen Hawbecker and Aaron G. Moody in the office of the Solicitor; “as discussed, we would appreciate you all working together to come up with an updated BP with respect to Withdrawal options.”
February 9, 2017 email, Karen Hawbecker to Jack Haugrud, includes a “briefing paper to introduce the topic of the Twin Metals litigation to the SOL transition team.”
A paper prepared by Elena Fink of the Bureau of Land Management “options for addressing the withdrawal in Superior National Forest” begins to circulate: forwarded by Karen Mouritsen to Karen Hawbecker. Another email from Aaron G. Moody to Jack Haugrud recommends that Interior “work off of” the BLM paper.
February 21, 2017 Antofagasta subsidiaries Twin Metals Minnesota and Franconia Minerals file a Supplemental and Amended Complaint against the Department of Interior, Bureau of Land Management, Department of Agriculture, and US Forest Service charging that the Solicitor’s M-Opinion, the Forest Service’s denial of consent, and the BLM’s denial of renewal were arbitrary, capricious, and contrary to law, and inflict “far-reaching” harms.
February 22, 2017 A “fire drill”: the Assistant Secretary for Land and Minerals Management has asked the Bureau of Land Management “for a brief ‘nutshell’ on the Twin Metals/Superior National Forest matter that can be given to the soon-to-be-confirmed Secretary [Ryan Zinke].” The paper will be included in Zinke’s briefing book.
February 28, 2017 Tracy DC Real Estate obtains business license for the rental at 2449 Tracy Pl. NW. The license expires on 28 February 2019.
March 7, 2017 Associate Deputy Secretary of the Department of Interior Jim Cason meets with Acting Director of the Bureau of Land Management Kristin Bail “and one of the issues they will discuss is the Superior NF withdrawal,” according to a March 6, 2017 email from BLM’s Bev Winston to DOI’s Karen Hawbecker. Winston asks specifically whether Hawbecker’s staff has “prepared anything on BLM’s options with regard to stopping the withdrawal process?”
April 6, 2017 Kathleen Benedetto: Ext. Meeting Boundary Waters [with?].
April 17, 2017 Antofagasta Plc CEO Ivan Arriagada sends a letter to Secretary Ryan Zinke. “Due to decisions made in the last days of the Obama adminitration,” he writes, “our past and future investment” — which he values at $400 million — “now hangs in the balance.” He hopes “to discuss a viable path forward” with Zinke, and requests an in-person meeting in Washington, DC, on either May 2nd or 3rd. “Rob Lehman at Wilmer Hale will be handling the scheduling of my meetings.”
April 18, 2017 Benedetto: Ext. Mtg. Twin Metals [with? Cf. Friday 16 June].
April 19, 2017 Benedetto: Twin Metals. On the calendar of Karen Hawbecker, Associate Solicitor, Dept. of Interior.
April 21, 2017 email from Karen Hawbecker to Jack Haugrud: Twin Metals “options” paper requesting feedback, “to make sure you’re ok with the approach we’ve taken.”
April 24, 2017 On the calendar of Katharine MacGregor, Principal Deputy Assistant Secretary for Land and Minerals Management. Meeting with Timothy G. Martin of Wilmer Hale, on behalf of Twin Metals Minnesota. MacGregor has a call with Jorjani scheduled immediately after this meeting.
April 25, 2017 Kathleen Benedetto forwards a briefing memo [scroll down to page 182] on Twin Metals for Secretary Ryan Zinke’s 26 April meeting with Representatives Tom Emmer and Richard Nolan.
April 26, 2017 On the calendar of Interior Secretary Ryan Zinke: meeting with Representative Tom Emmer (R-MN, 6th District) and Landon Zinda, legislative council; Representative Rick Nolan (DFL-MN, 6th District) and Will Mitchell, Legislative Director. A briefing by Kathy Benedetto and Kate MacGregor of the Department of Interior on the Twin Metals Leases.
April 26, 2017 Briana Collier, an attorney in the Division of Mineral Resources, forwards a briefing paper prepared for the State Department “ahead of an upcoming meeting this week between Antofagasta CEO Ivan Arriagada and the U.S. Ambassador to Chile,” Carol M. Perez.
April 27, 2017 Raya Treiser of WilmerHale emails Catherine Gulac at the Department of Interior confirming a May 2nd meeting between Deputy Secretary James Cason and Antofagasta CEO Ivan Arriagada. The email includes “background materials”: a March 22, 2017 letter from WilmerHale’s Rob Lehman to Ryan Zinke; a July 1, 2016 letter from WilmerHale’s Seth Waxman to former Secretary of Interior Sally Jewel; and the July 1, 2016 Waxman letter to Solicitor Tompkins.
April 28, 2017 Benedetto Meeting with Rob Lehman, WilmerHale re: Twin Metals Minnesota. On the calendar of Gareth Rees, Executive Assistant at US Department of the Interior. There is also an entry for the same 11AM meeting with Lehman on the Deputy Secretary Conference Room calendar. Created by Deputy Secretary Catherine Gulac.
April 28 2017 Benedetto: Twin Metals briefing. On the calendar of Briana Collier. U.S. Department of the Interior, Office of the Solicitor. An email from Karen Hawbecker to Jack Haugrud on April 27 specifies the purpose of this meeting: “to get some feedback from [Benedetto] on the options we’ve identified for reversing action on the Twin Metals decision.”
May 2, 2017 On the calendar of Gareth Rees: Meeting with Antofagasta plc re: Twin Metals Minnesota Project. Included in this meeting: Gareth Rees, James Cason, Katharine MacGregor, Michael Anderson, Kathleen Benedetto, [Linda Thurn], Richard Cardinale, Tracie Lassiter, Kevin Haugrud, Mariagrazia Caminiti, Karen Hawbecker. According to internal email correspondence on April 28, 2017, the Antofagasta delegation includes: Ivan Arriagada, CEO, Antofagasta plc; Daniel Altikes, Executive Director, Antofagasta plc; Rob Lehman, Chair of the WilmerHale Public Policy Practice; Andy Spielman, Chair of the WilmerHale Energy and Natural Resources Practice. An April 28th email from Karen Hawbecker to Lisa Russell at the Environmental Resources Division of DOJ indicates “this same group [from Antofagasta] may also have a meeting at the White House.”
May 3, 2017 Benedetto: Meet and Greet with Representatives of Save the Boundary Waters.
May 4, 2017 On the calendar of Ryan Zinke: In-person meeting with Secretary of Agriculture Sonny Perdue. Perdue will refer to this meeting in his 25 May appearance before the House Appropriations Interior Subcommittee..
May 10, 2017 On the calendar of Sonny Perdue: phone call with Senator Al Franken to “fill him in on a mineral leasing issue in the Boundary Waters.”
May 25, 2017 Agriculture Secretary Sonny Perdue appears before the House Appropriations Interior Subcommittee.
May 26, 2017 Principal Deputy Solicitor Daniel Jorjani call with Rachel Jacobson of WilmerHale, regarding a “DC Bar Event.”
June 1, 2017 email, Karen Hawbecker to Jack Haugrud: The White House “has expressed interest in the Twin Metals matter and Doug Domenich [sic] wants to talk to the WH today.” Kathleen Benedetto drafts a memo for Domenech on the Twin Metals Project.
June 9, 2017 Benedetto: Chat w/Timothy Martin from WilmerHale, re: Twin Metals – Minnesota. On the calendar of Katharine MacGregor, Deputy Assistant Secretary for Land and Minerals Management.
June 13, 2017 On the calendar of Daniel Jorjani: “Lease cancellation meeting.”
June 14, 2017 Jorjani meets with Raya Treiser and Andy Spielman of WilmerHale.
June 15, 2017 On the calendar of Gareth Rees: meeting with Jobs for Minnesotans.
June 16, 2017 Benedetto Ext. Mtg. Twin Metals – Bob McFarlin [at that time, Vice President of Public and Government Affairs, Twin Metals Minnesota].
June 19, 2017 Meeting w/ USDA and DOI on Twin Metals Superior National Forest. On the calendar of Katharine MacGregor.
June 19, 2017 Deputy Solicitor Daniel Jorjani forwards a press release to Jack Haugrud: “Reps. Gosar, Emmer, Nolan and Westerman Urge Rescission of 234,328-acre Mineral Withdrawal and Renewal of Leases in Minnesota.”  Haugrud sends the item to Karen Hawbecker, with the note: “FYI, in case you have not already seen it.”
July 10, 2017 On the calendar of Ryan Zinke: “Minnesota Briefing.” Later that day, Zinke meets with Dayton. According to journalist Rachel Stassen-Berger , a spokesperson for Governor Mark Dayton says he and Zinke “discussed the Twin Metals project, and the Secretary expressed his support for the environmental review process established by the National Environmental Protection [sic: read, Policy] Act (NEPA)”
July 25, 2017 All Hands on Deck for meeting with Antofagasta Plc re: Twin Metals Minnesota Project. On the calendar of Gareth Rees. Included: Kevin Haugrud, Katharine MacGregor, Michael Anderson, Karen Hawbecker, Kathleen Benedetto, James Cason, Gareth Rees, Linda Thurn, Richard Cardinale, Tracie Lassiter, Mariagrazia Caminiti, Edward Passarelli, Michael Nedd, Daniel Jorjani.
August 6, 2017 Karen Hawbecker forwards a briefing paper “about the Twin Metals litigation in preparation for a meeting” with Deputy Secretary of the Interior David Bernhardt.
August 9, 2017 Katharine MacGregor: meeting with Chad Horrell, Sportsmen for the Boundary Waters.
August 22, 2017 Daniel Jorjani meeting on “Minnesota Project” with Michael J. Catanzaro, (White House, Executive Office of the President), Stephen Vaden (Office of General Counsel, Department of Agriculture).
September 7, 2017 Internal meeting at Department of Interior on Twin Metals: Daniel Jorjani with Jack Haugrud.
September 21, 2017 Phone call: Twin Metals. On the calendar of James Cason, Associate Deputy Secretary of the Interior. James Cason with Associate Solicitor John Hay; Associate Solicitor, Division of Indian Affairs Eric Shepard; Deputy Secretary Catherine Gulac; Associate Solicitor Karen Hawbecker.
October 4, 2017 On the calendar of Gareth Rees: Office of the Solicitor meeting on Twin Metals.
October 4, 2017 Deputy Secretary of the Interior David Bernhardt briefed on Twin Metals. [Rees will have lunch with Bernhardt two days later, on October 6.
December 13, 2017 Bob McFarlin, Government Affairs Advisor for Twin Metals Minnesota, writes to “Kathy” [Kathleen Benedetto, BLM]: he is coming to DC for a “quick meeting USFS Chief Tooke and would love to touch base. [Tony Tooke had succeeded Tom Tidwell on September 1, 2017.] I will be traveling with Twin Metals’ VP of Environment and Sustainability, Anne Williamson, who you met in Minnesota this past summer.” He asks that Mitch Leverette, Eastern States Acting Director, Bureau of Land Management, join them. After some back and forth, it’s decided DMR [=Division of Mineral Resources?] should represent the Office of the Solicitor at the meeting.
December 15, 2017 Bob McFarlin meets with Kathleen Benedetto: “The litigation is not expected to be the topic of conversation,” according to an email from Justin Katusak.
December 20, 2017 At the request of Interior Communications, Gary Lawkowski, Counselor to the Solicitor of the Interior, forwards a “one-pager of talking points on the Twin Metals opinion” to Daniel Jorjani and Jack Haugrud for review. He has put them together “given [or with an eye to] today’s focus on critical minerals.” In a second email circulating the talking points to Deputy Director of Communications Russell Newell, he elaborates: “One thing you all may want to note — the Forest Service has indicated that they believe there are potentially cobalt and platinum deposits underneath Superior National Forest.”
December 21, 2017 Email from Russell Newell: Plans for the Minnesota-only news release requested by BLM on the forthcoming opinion are cancelled, and the Department will comment “if asked.”
December 21, 2017 Some final revisions to the M-Opinion draft: difficulties finding the correct Weeks Act citation for the paragraph about Statutory Authority (on p. 2 of the issued opinion); reworking of footnotes for the section on lease renewals (pp. 11-13) arguing that BLM renewed the leases in 1989 and 2004 under the 1966 terms. One footnote in particular — number 65 in this near-final draft — “raises issues we do not want to address.”
December 22, 2017 Principal Deputy Solicitor Jordan releases Memo M-37049, allowing Twin Metals to renew its leases of Superior National Forest lands.
3:17PM email from Jack Haugrud to Solicitor’s office: “Just got a call from Raya [B. Treiser] at Wilmer[Hale]. Twin Metals is moving today to dismiss their case against us.”

How this timeline came about:

Back in March of 2018, reporting by Jimmy Tobias gave us a little more insight into the Boundary Waters reversal. (My posts on the topic are collected here.) Through a records request, Tobias obtained the calendar of Kathleen Benedetto, Special Assistant to Interior Secretary Ryan Zinke.

Described as “a fixer for the mining companies,” Benedetto now helps oversee the Bureau of Land Management. She has publicly taken the position that conservation of public lands is a barrier to “progress.”

The Benedetto calendar gave us a much fuller chronology and more detail than we previously had. Tobias identified at least six meetings or communications with mining interests on Benedetto’s calendar regarding the Twin Metals project in Superior National Forest, including the July 25th all-hands-on-deck meeting between high-ranking Interior officials and representatives of Antofagasta Plc. I subsequently learned that the group had met with Antofagasta earlier, on May 2nd, less than a month after Benedetto started meeting with mining company representatives.

When I put Benedetto’s calendar together with the Deputy Solicitor Daniel Jorjani’s calendar, this timeline started to come into focus. Since then, I have been able to consult other calendars and received some materials in response to two FOIA requests. It is now clear that Interior was holding internal meetings about Twin Metals and the withdrawal of Superior National Forest lands in the first weeks of the new administration, and as early as February of 2017.

So there were many meetings about the Twin Metals project before Benedetto hosted a “meet and greet” with a Boundary Waters conservation group on May 3rd, 2017; and it looks as if the reversal was a done deal by the time Katharine MacGregor met with Sportsmen for the Boundary Waters’ Chad Horrell on August 9th.

At the very least, this timeline indicates that restoring Twin Metals “right of renewal” for their mineral leases in Superior National Forest was a priority at Interior from the moment the Trump administration took office.

The lobbying effort was a full court press, led by Raya Treiser, Rob Lehman, and Andy Spielman of WilmerHale. Litigation counsel for Chilean conglomerate Antofagasta plc — Daniel Volchok, Michael Hazel, and Paul Wolfson — are also from WilmerHale.

Note: I’ll continue to make updates to this timeline as DOI releases more materials in response to FOIA requests.

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.