Tag Archives: transparency

Three Questions for the Michigan DEQ on the Back Forty Project

Earlier this month, the Michigan Department of Environmental Quality announced its intention to permit the Back Forty Project, an open-pit gold and zinc sulfide ore mine that Aquila Resources, a Canadian company, plans to develop near the headwaters of the Menominee River. In response to the MDEQ’s request for public comment by November 3rd, I’ve submitted these three questions. I’m posting them here so that others might consider them in the run up to the public meeting with the MDEQ in Stephenson, Michigan on October 6th.

  1. In determining that the Back Forty Project application meets the requirements for approval under Part 632, did MDEQ take into account the cumulative effects of sulfide mining throughout the Lake Superior watershed? We know that the Back Forty project poses a significant risk to the Menominee River all by itself. With the mine in close proximity to the river, a flood, berm collapse, subsidence or a slide could destroy the Menominee River; to answer these serious concerns by asking the company to add a “synthetic, manmade liner under their waste/tailing rock facility,” as the DEQ has proposed, is to trivialize them. Other development that the mine will inevitably bring, including haul routes, power lines, lights, fueling stations, exhaust and machine noise, will leave a large industrial footprint and disturb the Menominee River and its environs in countless ways. At the same time, this mine will heighten the risk, in the long term, of large-scale environmental destruction posed by the resurgence of sulfide mining not just in Michigan’s Upper Peninsula, but in Minnesota and Canada as well — all around the lake and throughout the Lake Superior watershed. Has the DEQ completed or participated with neighboring state agencies and tribal authorities in a scientific study of the cumulative impacts of sulfide mining around Lake Superior? Has the DEQ issued guidance on how cumulative environmental effects should factor into its decision-making process for permitting new mines in Michigan?
  2. Has MDEQ made any determination about the human rights implications of its decision to allow the Back Forty project to go forward? Human rights are not outside the DEQ’s bailiwick, no matter how hard it may try to exempt itself. Witness Flint. In the present case, the DEQ’s oversight is inextricably bound up with the state’s obligation to protect human rights abuses by third parties. Aquila’s Back Forty project is sure to disturb, and likely to desecrate, lands traditionally belonging to the Menominee and still held sacred by them; and making provisions for archaeological recovery and preservation of mounds and other sacred sites does not adequately address the basic human rights issues involved here. The headwaters of the Menominee River are central to the tribe’s creation story, marking the place where the Menominee people originated. Their very name derives from manoomin, or wild rice, which will not survive changes in sulfate levels or degradation of overall water quality. As tribal member Guy Reiter has said, “It’s no different than if an open-pit sulfide mine was put in Bethlehem for the Christians.” Seen from this perspective, the Back Forty is not only an affront to Menominee history; it also puts the cultural survival of the Menominee people at risk. How will the DEQ factor such human rights considerations into its decision-making process?
  3. What has the DEQ done to restore trust in its authority, and reassure the Menominee and people living downstream from the Back Forty project in Michigan and Wisconsin that it will exercise appropriate care? The Flint water crisis cast a long shadow, and reinforced the perception that “politics and poverty are big factors” in DEQ decision making. “The same attitude of disregard for citizens and the environment has repeated itself in DEQ decisions across our state for well over a decade,” said Marquette attorney Michelle Halley after news of the Flint water crisis broke; controversy over the renewed Groundwater Discharge Permit issued by MDEQ at Eagle Mine and legitimate concerns about lax oversight at Eagle East help make her case. Like all government agencies, the Michigan DEQ should operate in sunlight. Already, however, troubling questions have been raised about the transparency of the Back Forty permitting process. For example, Al Gedicks, Executive Secretary of the Wisconsin Resources Protection Council, asks why the DEQ appears to be in a “rush” to grant the Back Forty permit. So as things now stand, the DEQ enjoys de jure authority in Michigan under Part 632, but it is unclear whether the DEQ still enjoys de facto authority, which could only derive from demonstrations of regulatory competence. How does MDEQ intend to quell public concern that it is compromised or incompetent, and reassure the public that it is a responsible steward?

A Letter to Karen Maidlow, Michigan DNR

Karen Maidlow, Property Analyst, Minerals Management
Michigan Department of Natural Resources (DNR)
P.O. Box 30452
Lansing, MI 48909

Dear Karen Maidlow,

This letter is with regard to land owned by the State of Michigan on the Yellow Dog Plains and next to the Yellow Dog River in Michigamme Township, Marquette County (40 acres, NE1/4 SE1/4, Sec.13, T50N, R29W).

As you know, in a 2003 review, this 40-acre parcel was designated “non-development” by former Fisheries Chief Kelley Smith. Fisheries biologist George Madison, who works out of the Baraga office of the DNR, reversed Smith only this year. It is unclear why, and I urge you to look thoroughly into the matter as part of your review and clarify for the public whether and on what grounds the DNR thinks Fisheries’ reversal of its position on this parcel should stand.

Madison himself says that he was unable to tell why Smith had placed the non-development restriction on the parcel in the first place.

For some reason Kelley Smith (former Fisheries Chief) had placed a non-development restriction recommendation on this parcel during an 8-21-2003 review. Indeed while there is no water or aquatic resources on this parcel, with care and respect for the 2003 review I carried Mr.Smith’s recommendations forward in case there was an element of uniqueness to this parcel that we are not aware of.

For this 8-12-2014 review, I have changed Fisheries Division’s recommendation to “development” with no restrictions.

What reason did Kelley Smith have for restricting development on the parcel? Madison cannot say, and in May of this year Forestry Supervisor Jeff Stampfly admitted he, too, was “at a loss” when it came to accounting for Smith’s review. But then they both recommend its reversal.  Both Stampfly and Madison seem to suggest that Smith was simply mistaken, or at least they see his 2003 review as problematic. What exactly did Smith say? Isn’t it possible that Smith discerned some “element of uniqueness” here that Madison and Stampfly are unable to appreciate? The prudent thing would be to find out.

To that end, the DNR should publish Smith’s August 2003 review — undertaken before the mining boom had really gotten underway — and take what Smith says there under advisement. To help clarify things, Smith himself (now in retirement) should be interviewed about the parcel and what, if anything, makes it unique or deserving of non-development status, and his statement entered into the public record. If Smith and Madison still disagree on the status of this parcel, then that disagreement should be aired publicly and accounted for in whatever report you file. The public deserves this measure of transparency.

For his part, Madison could state more clearly why he reversed Smith in this 2014 review and did not do so previously. Why proceed with “care and respect” for Smith’s review, then suddenly change course after Lundin Mining shows interest in the parcel? Madison seems to be arguing in his comment that Fisheries should place no restrictions on the parcel because he can identify “no water or aquatic resources” directly on the parcel; this seems to be Stampfly’s position as well. But the Yellow Dog River is only a few hundred feet away from the boundary of the proposed site. Maybe, for Smith, that proximity was enough.

As Smith may have known, there are a number of ways in which industrial development on this parcel might seriously compromise the Yellow Dog River. Groundwater flow in the glacial aquifer underlying the Yellow Dog Plains would make it difficult to limit water contamination from drilling to the parcel itself. Even a well-run drilling operation will see lapses: Yellow Dog Watershed Preserve has “photo documentation of ripped sump pit liners, drill bit wash basins that are overflowing, and broken fences” from the exploratory drilling done for the Eagle Mine. Exploratory drilling is also bound to require some roadwork and other infrastructure build-up on the Yellow Dog Plains, and it will increase traffic to and from the parcel. That, too, puts the Yellow Dog River at risk.

YellowDogRupture

Roadside mitigation efforts in October of this year. The Eagle Mine haul route has already put the Yellow Dog watershed at risk and contaminated the Salmon Trout River.

As you are no doubt aware, just this past summer, a road crew working on the Eagle Mine haul route ruptured a perched groundwater seep, dumping sediment and releasing turbid water into the Salmon Trout River, in violation of the Natural Resources and Environmental Protection Act. Mining’s risks never end at the mine’s gate.

In closing, I urge you to take your time looking into the confusion over Smith’s 2003 review and all other questions and comments you receive regarding this parcel. One newspaper account I read has you saying that you intend to finish your analysis by January, having received written comments from the public only a month before that. Wouldn’t it be better to allow time for follow-up interviews or requests for further information? I trust that you and the DNR do not want to give the impression that this request for public comment is merely pro forma, and want to do the right thing by the public you serve.

Sincerely,

Louis V. Galdieri

Dennett on Sunlight

Here’s my transcript of what I consider one of the more striking moments in the conversation with Steven Pinker and Daniel Dennett moderated by Alex de Waal at the “Unlearning Violence” conference held at Tufts’ Fletcher School in February. (A video of the discussion in its entirety follows.) Daniel Dennett is speaking:

Something’s happened, which is absolutely unprecedented in the history of civilization, which is a major — I think a major change. And yes it’s the internet and electronic communication. But what it has done, it has rendered the epistemological atmosphere in which we live transparent in a way it never was before.

There’s a lovely book — speculative book by Andrew Parker, a zoologist in Oxford, who [in In The Blink Of An Eye: How Vision Sparked The Big Bang Of Evolution], argues, very plausibly, that the cause of the great Cambrian explosion, this huge outpouring of new life, that the trigger for that was the transparency, the sudden, relatively sudden growing transparency of the oceans and the air, making sunlight available and making vision possible for the first time. And it was the immediate evolution of eyes which changed everything, because now predator could see prey, prey could see predator, and if you didn’t have eyes you were sunk. And this set off a five million year arms race of sort of guerilla warfare enhancements, defense and offense, and that’s what created all the remarkably different body types and behavioral types and defense types that mark this great explosion.

Well, he may or may not be right about that, I — I — it’s one of those evolutionary ideas that I am very fond of but I haven’t committed to it because it hasn’t been shown yet. But it’s a plausible and pretty well researched theory. Whether he’s right or wrong, I think something exactly like that has happened now.

All the institutions in human culture, not just religions but armies, governments, banks, relig- uh, corporations, clubs — they have all evolved in a relatively murky epistemological atmosphere where people could be relatively ignorant of things at a distance around the world and even about a lot of their own, the features of their own organizations. And organizations evolved to exploit that ignorance, cause it was — you could rely on it. That ignorance is evaporating at a colossal rate, and we see it, we see it in Edward Snowden. We see it where the security experts are now saying there’s no such thing as a firewall, um, because people, you have to rely on people’s fidelity, because people’s fidelity is infinitely malleable by memes, by all of the information that is floating around in the internet.

Religions: what this new transparency does is, it renders knowledge not just widespread but mutual: it’s not just that everybody knows that p, it’s that everybody knows that everybody knows that p.

Fifty years ago, I’m sure, there were millions of Catholics that knew of a priest who had molested some boys. Millions of them. But nobody knew there were millions of them. Now, millions of Catholics know that millions of Catholics know. And that changes everything. Now, you have a Bishop giving a press conference where he makes a big point of saying you’ll note how I never, whenever there’s a young boy around I’ll always have my hands in front of me. Can you imagine a bishop of the church saying anything like that fifty years ago?

This is an awkward and gauche and ineffective response to the new transparency. Well I think that in itself is going to force every institution in the world to evolve very quickly or go extinct.

And what that does for violence is — it’s not clear. In some ways it may be a great diminution in violence; on the other hand it may unleash forces that we don’t even imagine yet, and make new inroads into violence more likely.

The Limits of Corporate Benevolence, from Mongolia to Michigan

The phrase “human rights” is nowhere to be found in the Oyu Tolgoi Investment Agreement, a document [pdf] that will play a critical role in guiding Mongolia’s development over the next decade. The Agreement sets the terms for the $6.2 billion investment in the Oyu Tolgoi gold and copper mining project, which promises to account for no less than one-third of Mongolia’s GDP by the year 2020. Rio Tinto has a 66 percent stake in the project through its subsidiary, Turquoise Hill Resources Ltd; the Mongolian government owns the rest.

Along with the serious environmental concerns cited by the United States when it abstained, in February of this year, from a World Bank investment scheme in Oyu Tolgoi, there are a host of human rights issues to address — from migrancy to land seizures, rights to the scarce water resources of the Gobi desert region, conditions in Ulaanbaatar’s Ger camps, and the survival of Mongolia’s herder communities. (The Bank Information Center provides an overview of these concerns, here and here.) The Investment Agreement briefly addresses some of these points, but it resorts, in all instances, to what I would call the language of corporate benevolence.

So the Investor agrees to abide by the Extractive Industries Transparency Initiative (a voluntary agreement to publish payments made by the Oyu Tolgoi mine to the government); in another place (section 4.13; but cf. also section 4.6) the Investor consents to “build and maintain productive working relationships, based on principles of transparency, accountability, accuracy, trust, respect and mutual interests, with non-governmental organizations, civic groups, civil councils and other stakeholders.” Beyond this, there is not much else to guide or govern the company’s conduct vis a vis civil society and its responsibility to respect human rights.

Given the high stakes, the scale of Oyu Tolgoi and the involvement of the World Bank and IFC in the project, it is surprising the Agreement does not explicitly incorporate — or reference — the UN Guiding Principles on Business and Human Rights. Instead of creating binding agreements or even practical mechanisms to ensure that Oyu Tolgoi and the government of Mongolia meet their respective human rights obligations as the economy accelerates and the social terrain continues to shift, the Investment Agreement relies on the language of corporate social responsibility to smooth things over.

Part of the trouble with CSR isn’t just that it tends to replace binding agreements and articulated responsibilities with vague sentiments, the language of corporate benevolence, and promises of sustainability and shared prosperity. That’s bound to happen when social responsibility meets public relations. A bigger problem is that the commitments companies voluntarily make to contribute to economic development and social progress — and to respect human rights — will last only as long as the business requires them.

For an example of how abruptly a company can ditch stakeholder communities, what happened in Michigan yesterday with another Rio Tinto project may turn out to be more instructive than what’s happening right now in Mongolia. In the face of serious environmental and human rights challenges to its Eagle Mine project over the last several years, Rio Tinto all along touted its good corporate citizenship, promising to “leave more wood on the woodpile” and to take an active hand in the long term, “sustainable development” of the Upper Peninsula. That is just part of “The Way We Work,” as the title of a Rio Tinto CSR publication would have it — or at least it was the Way We Worked. Yesterday, the company announced that it had sold the Eagle Mine project to Toronto-based Lundin Mining for the tidy sum of $325 million cash — part of CEO Sam Walsh’s strategy to divest from “non-core” assets and protect the single-A credit rating the company currently enjoys. A community of stakeholders whose future Rio Tinto promised to make happy, bright and prosperous became, overnight, a disposable asset.

The Social Costs of the Hardware Revolution – A Postscript

For now, this can be only a short postscript to what I had to say earlier today about the CNN Money article by John Hagel and John Seely-Brown on “the hardware revolution.” It has to do with a question that occurred to me as I read, and to which I don’t yet have anything like an adequate answer. That will take some research. But I at least want to articulate the question.

Startups and smaller companies can now play in the hardware space in part because the barriers to entry have been lowered, Hagel and Seely-Brown observe. There are a number of factors at work here. New and cheaper technologies from 3D printers to more user-friendly software put the design and manufacture of hardware within reach of smaller companies. And “a new class of factories” will produce the smaller orders that new entrants and entrepreneurs typically require:

New infrastructural elements have also helped new hardware products move from the hobbyist’s basement to the startup garage. Before, to get a contract manufacturer’s attention, you had to commit to producing high volumes (say 50,000 or more units). But a new class of factories — mostly in China and Mexico — will manufacture batches as small as 5,000 units. By filling low-volume orders, these factories have filled an important structural hole in the market: They allow entrepreneurs to launch new products for small consumer groups with little investment.

My question is whether conditions and, for that matter, sourcing practices in this new class of factories, and the more fluid hardware market they serve, are not going to be terribly difficult to monitor. We’ve seen how challenging it is even to ensure fair labor practices in large-scale manufacturing facilities in China used by major global technology brands; now, as smaller-scale manufacturing facilities proliferate and Mexico becomes a technology “quicksourcing” destination for American companies, the problem will no doubt be aggravated.

The reasons for this are probably obvious. I would frame the issue in a few ways. First, how much visibility do these smaller players actually have into their supply chains? Second, how much leverage do they actually have with their manufacturers, since they are only placing small orders, and, depending on their success, may or may not be repeat customers? Third, there’s a question about whether these small businesses — the small hardware startups placing orders and, for that matter, the manufacturing facilities taking them — have the capacity to take on the human rights challenges that seem inevitably to accompany outsourcing.

In other words, the social costs of the hardware revolution deserve some careful consideration.