DNR "Tangled Web" Correspondence 04/2010 -  05/2010

Mr. Koehn,

This is a bit of a tangled web, but I will try to provide you with as much information as I have available.  Here are two contact numbers I have for the Cline Group folks:

John Dickinson (President) john@clineres.com or 304-673-0161, and Timothy Myers (Mining Engineer) tmyers@clineres.com or 618-889-7030.

I have a LaPointe contact of David Meinecke in Hibbing, MN (218-262-6127, ext. 135).  He is listed on a business card as the Vice-President of the LaPointe Iron Company.

We have also had recent contact with some folks from an entity known as Global Minerals, as documented in the following e-mail chain.  I'm uncertain as to their relationship with LaPointe (consultants?).

I'm not at all certain how each of these players fit together with the recent discussions of mining the Penokee/Gogebic.  Maybe you will have more luck than I have had figuring it out.

P Philip Fauble, P.G.

Mining & Beneficial Reuse Program Coordinator

Bureau of Waste & Materials Management

Wisconsin Department of Natural Resources

(*) phone:      (608) 267-3538

(*) fax:                (608) 267-2768

(*) e-mail:     Philip.Fauble@Wisconsin.gov

- Show quoted text -

---------- Forwarded message ----------

From: "Graff, Daniel A - DNR" <Daniel.Graff@Wisconsin.gov>

To: "cortnay.bot@globalmineralseng.com" <cortnay.bot@globalmineralseng.com>, "paul.eger@globalminerals.com" <paul.eger@globalminerals.com>

Date: Sat, 22 May 2010 15:26:54 -0500

Subject: RE: Option to a Mining Lease and ability to file NOI and EIS


Ms. Bot and Mr. Eger,


As Phil has informed you, I am the Wisconsin DNR's attorney for our metallic mining program.  Here are my thoughts in response to the question below.


It seems Global Minerals is asked whether "a party with an Option to a Mining Lease" has the legal capability to file an "NOI" and thereafter prepare an EIS.  My review of the relevant statutes and codes did not explicitly find a requirement for Wisconsin Environmental Impact Statement preparation in the Wisconsin Environmental Protection Act [or WEPA] review pursuant to s. 1.11 of the Wisconsin Statutes.  S. 1.11, Stats. is in turn a requirement of an application for aprospecting permit under s. 293.35(5), Wis. Stats.  WEPA review is explicitly required for the process of issuing a mining permit under s. 293.39, Wis. Stats.


These statutes do not directly address whether an option-holder can make application.  Section 293.35(1), Wis. Stats. states a "person" must apply for and obtain a prospecting permit before prospecting.  "Person" in turn is defined in s. 293.01(16), Wis. Stats. as an individual, owner, operator, corporation, limited liability company, partnership, association, or other entity.  So, if the option-holder had rights to do what is required under s. 293.35, Stats. for Wisconsin metallic mining prospecting [as the term is defined in s. 293.01(18), Wis. Stats.], then the option-holder may apply, and give notice of intent to collect data for metallic mineral prospecting to the Department under the procedures of s. NR 131.05, Wisconsin Administrative Code.


Similarly, is. 293.39(1), Wis. Stats. requires an "operator" to obtain a mining permit before engaging in metallic mining in Wisconsin.  "Operator" is defined in s. 293.01(13), Wis. Stats. to mean "any person who is engaged in, or who has applied for or holds a permit to engage in, prospecting or mining, whether individually, jointly or through subsidiaries, agents, employees or contractors."  Again, for an option-holder to have the right to provide a Notice to the Department per s. NR 132.05, Wis. Adm. Code of intent to collect data for metallic mineral mining to the Department.  The option-holder would need to show the option entitled the entity to carry out all the provisions of a Mining Plan in s. NR 132.07, Wis. Adm. Code, the reclamation plan in s. NR 132.08, Wis. Adm. Code and other relevant provisions.


Unfortunately I do not have the actual option agreement [or offer] to review, so it is speculative of me to offer an opinion at present of whether the options offered by LaPointe Iron Company would, if accepted, entitle the investors to take the actions discussed above.  However, I think you can see the legal principles that Phil or I would use in coming to such an opinion, if the details were provided to us.




Dan Graff'

WDNR Mining Program Attorney

From: Fauble, Philip N - DNR 

Sent: Monday, May 10, 2010 01:51 PM

To: Courtnay Bot

Cc: Graff, Daniel A - DNR

Subject: RE: Option to a Mining Lease and ability to file NOI and EIS



As I indicated in my earlier message, I cannot give you any more information beyond the plain language of the Statutes and Codes, but I will pass this message on to Dan Graff, our Program Attorney, to see if he can elaborate on this issue any further.  He has just returned from an extended vacation, so it may take him a while to sort through all the mail that has piled up.


From: Courtnay Bot [mailto:courtnay.bot@globalmineralseng.com] 

Sent: Friday, May 07, 2010 1:58 PM

To: Fauble, Philip N - DNR

Cc: Paul Eger

Subject: Re: Option to a Mining Lease and ability to file NOI and EIS

Dear Phil:

Thank you again for responding to me re: the NOI "applicant". From the message you provided at the end of April, I understand that the question has been passed onto legal. Is it possible to estimate the length of time you expect for a response from legal?

If possible, I would like to request the response be provided to Paul Eger with Global Minerals Engineering LLC. 

The following is Paul's contact info:


Mobile: 218/969-1414

Thank you for your time.

Courtnay Bot

Global Minerals Engineering LLC

On Fri, Apr 23, 2010 at 11:32 AM, Courtnay Bot <courtnay.bot@globalmineralseng.com> wrote:


In my vcml message I noted I would provide my email address. Please feel free to respond by phone or email, whichever is easiest. 

Email Address: courtnay.bot@globalmineralseng.com

LaPointe Iron Company (the Gogebic landowners- specifically the landowners for the 21 mile iron deposit extending from just west of Mellen to Upson) intends to propose an Option to a Mining Lease to potential investors/developers of the Gogebic. On LaPointe's behalf, Global Minerals Engineering LLC is requesting your assistance in confirming whether a party with an Option to a Mining Lease has the legal capability to file an NOI and thereafter prepare an EIS. 

If I can provide additional information to clarify the question further, please feel free to contact me. I will look forward to your response.

Thank you

Courtnay Bot

Environmental Services Manager

Global Minerals Engineering LLC