Hello Everyone,

We will be firming up details better as we move forward with this, but here are the facts as we know them:

1) At just about the same time that the Karuks lost their lawsuit in Federal Court (suit to stop in-stream mining within the Klamath National Forest) last spring, they quietly filed another lawsuit against the California Department of Fish and Game (DFG) to stop in-stream mining within the Klamath National Forest.

2) The reason we never heard about the pending litigation in California, is that the Karuk’s chose to file their lawsuit down in the bay area, far distant from the specific areas of mining they are attempting to shut down. According to DFG, it is not their policy to inform the communities which could be negatively impacted by ongoing litigation, even when settlement agreements might affect those communities.

3) More recently, DFG and the Karuks came to a settlement agreement within the litigation. We have not yet been able to obtain a copy of that agreement, because the Karuk’s refuse to give us a copy, and DFG has not responded to our request for a copy.

4) But we do have some idea of how the proposed settlement will affect us, because DFG has already begun to implement modified dredge regulations as they apply to the waterways within the Klamath National Forest.

5) According to the modified regulations which are now being sent out by DFG, the Klamath, Scott and upper Salmon rivers have been reduced to a dredging season between 1 July through 15 September – and all dredging has been eliminated along the lower Salmon River, Indian Creek, Elk Creek, and other waterways. You can read the notice in the beginning of the DFG regulations.

6) All of this without a single notice to the thousands of people that will be negatively impacted by these changes!

The existing DFG dredging regulations are supported by a full Environmental Impact Statement (EIS) that was completed during the mid-1990’s. That entire process played out over the course of several years, with representatives from the mining community, environmentalists, organized rafting groups and many others taking an active roll in the process. The California Administrative Procedures Act (APA) requires State agencies to follow a very structured public process before it may adopt or change any regulations that could have a negative consequence upon communities within the State.

Through the course of this litigation, we are now going to find out if California law allows a State Agency to set aside all of the work that has been accomplished through a public process like this, and just give it all away to radical environmentalists in a (behind closed doors) court settlement – without so much as a single word to the thousands of people who will lose property rights. My best guess is that they do not have the authority to do that!

As this negative situation directly impacts upon the rights of our members, and we are already in litigation with the Karuk Tribe, we have agreed with other leaders within the greater mining community that The New 49’ers will take the lead in fighting these modified dredge regulations that have just been issued by DFG.

We have already retained James Buchal and some of his associates to represent us. James was the lead attorney who helped us defeat the Karuks earlier this year in the federal litigation. He also helped small-scale miners in southern Oregon defeat similar litigation by the very same radical environmentalists just within the past few months.

The good news is that our attorneys have already contacted the Court where this State litigation is pending, and the settlement agreement (which DFG is already implementing) has not yet been signed by the judge! Our attorneys have already alerted the judge in this case that miners will be negatively impacted and wish to be heard before any judgment or settlement is made final. While I have not seen anything in writing, I gather that the judge is going to allow us to make a presentation in a hearing scheduled for 20 December.

While we are still studying this case, and we will need to listen closely to the advice of the experts we have hired to help us, we will be pushing to have the settlement agreement withdrawn, and DFG’s modified dredge regulations withdrawn until conclusive proof is presented that:

1) Dredging activity under the pre-existing regulations is creating some meaningful amount of harm to the COHO Salmon.

2) That modified regulations will protect those specific concerns in such a way as to create the least amount of cost or damage to the user groups and communities which will be affected by the modified regulations.

3) That all persons who will be affected by regulatory changes are given a reasonable opportunity to become involved.

I could be wrong about this, but I believe DFG does not have the authority to impose further restrictions upon suction dredgers without going through the full APA process, unless they can demonstrate that emergency changes to the regulations are justified – by presenting conclusive evidence of harm to a protected species.

All the Karuks ever presented in the federal litigation were generalities. No specifics.

Generalities won’t do!

As long as the judge in the existing litigation will hear us, we will be pushing to set aside any changes to the pre-existing dredge regulations until DFG can demonstrate that an actual emergency does exist and can support the concern with specific information.

If it s too late in the existing litigation to be heard, we will need to file a lawsuit of our own against DFG for violating the Administrative Procedures Act and the California Environmental Quality Act. Both of these important laws require DFG to include us in any process that will affect our business. We have not been included!

If it is not already on the books (and it ought to be), it is time to get some clear case law published that State agencies have no authority to write off the whole public trust by selling out the rights of others to radical extremists in a court settlement! What good does it do to go through the whole public process, if attorneys can later go behind closed doors and decide to give it all away in a court settlement?

I hope you guys agree with me in this plan, because it is going to cost money that we do not have in the bank, yet.

Fortunately, we all stepped up to the plate and we were able to pay off all our earlier legal expenses within a short period of time. I am very thankful for that, because now we have earned some credibility with the specialists who give us support when we need it. It was because of that credit that we have been able to react so quickly in this case. We have our foot in the door because the settlement agreement between DFG and the Karuks has not been signed off by the judge yet.

By the way, we also have found out that the Karuks have no federally-recognized fishing rights. Yet DFG has a policy of allowing them to net salmon out of the river all they want, without any kind of fishing license. The Karuk’s are netting Salmon out of the river and killing them at the very same time the COHO salmon they wish to protect is migrating upstream to lay its eggs. So while DFG has made a settlement behind closed doors to curtail the suction dredging activity (not a single recorded case of a dredger ever harming a COHO salmon), they continue a policy of allowing Karuks to net out as many salmon as the want — even though it is directly against the law!

Does this make you guys as mad as it makes me? I agree with several of the forum posts that it is time for the miners to take an offensive stand against our adversaries. This looks like a good place to start!

For our part, winning this battle is mostly going to be about raising money to pay the specialists on our side. So, once again, I am putting out the call for you guys to please raise at least several thousand dollars as quickly as possible. We need to get ahead of the curve on this one!

I especially want to thank Harry Lipca who always seems to be one of the first in our industry to detect potential problems coming our way.

Also, 49’er Mike who has worked tirelessly on our behalf since this problem has surfaced. Mike is one of the best critical managers that I know. We are really lucky to have him on our team!

More soon, as the news develops.

Dave Mack

Hello everyone,

This past week was a busy one concerning the Karuk litigation against the Department of Fish & Game (DFG).

On very short notice, we got the word out last weekend that the Siskiyou County Supervisors would vote Tuesday morning (3 January) on a Resolution speaking out against the way DFG and the Karuks have settled the litigation behind closed doors (deciding upon further restrictions to prospectors). Timing required the Resolution to be taken up without delay; so that if it were passed, the Resolution could be included within the court filings that we will submit this next week. We feel it strengthens our position to have a County government providing the Court with a formal condemnation of this solution that the Karuks and DFG have come up with.

I was impressed and relieved that so many prospectors turned up for the Supervisor’s meeting in Yreka on Tuesday, and I’m sure the Supervisors were also impressed. Some came from hundreds of miles away. Quite a few prospectors from Oregon came down to give us support. As a result, the Supervisor’s hearing room was packed, with prospectors trailing out into the hallway.

Ultimately, the Supervisors unanimously passed a Resolution demanding that DFG follow the correct due-process in making any changes to the suction dredge regulations. They authorized Marcia Armstrong, who is the Chair-person for the Supervisors, to encourage the Superior Court Judge (in the litigation) to not endorse the Settlement Agreement between the Karuk’s and DFG and Order DFG to follow the public process as it is supposed to do. The Resolution also authorized Ms. Armstrong to contact our State Lawmakers and the Governor to request their assistance in getting DFG to follow due process.

From the Supervisor’s meeting, 49’er Mike and I spent two long days traveling to and from Sacramento to meet with one of the attorneys that is representing DFG in the ongoing litigation. Through earlier discussion with our own attorneys, DFG had agreed to allow us access to the documents concerning suction dredging, other than what they consider as privileged and exempt from discovery.

When we arrived at the Resources Department in Sacramento, they had already arranged a room where Mike and I could review the documents, and we were met by around 10 full file boxes of material. Big job!! Mike started at one end, I started at the other, and we met somewhere in the middle. We ended up taking copies of just under 500 pages. This was all copied again for our own files, and then we forwarded everything we received over to our attorneys.

While doing discovery in Sacramento, we were shocked in two ways:

1) The attorney representing DFG told us that the new restrictions to suction dredging are not being adopted pursuant to any of the emergency provisions contained within the California Environmental Quality Act (CEQA) (which would require some formal biological justification). He told us that the regulatory changes are simply being adopted pursuant to a Stipulated Agreement with the Karuk Tribe of California in the ongoing litigation. Just that; nothing more! In other words, DFG believes it has the authority to completely shortcut the full CEQA process by changing our regulations behind closed doors in a quiet settlement with the Karuks. Wow!!

We should all start asking ourselves why anyone should bother going through the whole public process in the first place, if a State agency can simply trade it all off behind closed doors with an extremist group that files a lawsuit?

2) Then the attorney representing DFG told Mike and I that because of the ongoing litigation, most recent documents concerning suction dredging in the DFG files would be withheld from our view under some kind of expanded attorney-client privilege. Therefore, they are refusing to make any of the biological information available to us that supports the reasons why they have restricted dredging seasons or eliminated the activity altogether on some waterways!

Can you believe that?

The California Environmental Quality Act (CEQA) and the California Administrative Procedures Act (APA) require State agencies to adopt or modify regulations through a fair and open process, whereby everyone who is interested in the outcome may participate in the process, and whereby the agency is required by law to carefully consider all relevant material brought forward by the public and finally adopt regulations which resolve perceived problems in such a manner that creates the least amount of difficulty upon those persons who will be affected by the regulations. The process is especially designed to prevent extremist groups from hijacking the system. The documents in the DFG files clearly show the CEQA process was followed when our suction dredge regulations were adopted in 1994. The extremist groups were present. But their concerns were weighed against ours, and final decisions were based upon science which was available for everyone to see.

For lack of being able to come up with a more accurate characterization, I am referring to this present situation as a reverse-CEQA. Here, we have DFG and the Karuk Tribe secretly going behind closed doors and working out how they are going to modify our suction dredge regulations. And now, they are refusing to give us any of the biological information (if it even exists) that they have used to justify the modifications! This is exactly what CEQA was meant to prevent; a case where an extremist group has completely hijacked the system!

Our attorneys are working on it. Our briefing papers to the Court are due in on this upcoming Tuesday (10 January). Then I suspect both DFG and the Karuks will respond with their own briefs. Then we will probably reply.

It is going to be interesting to see how both the Karuks and DFG will try to convince the Court that the miners have no right to intervene in the litigation. Stay tuned, because we will be posting the briefs as soon as we have them!

Meanwhile, once again, I am putting out a request for legal donations. To date, we have brought in around $3,000 since this thing started. I want to express my sincere thanks to everyone who has contributed!

The bills for December legal work will be arriving at any time. My guess is that we will need to raise more money just to pay those. Our attorneys did a lot of work for us last month! This month’s work by our attorneys is really going to run the costs up, because of the exchange of briefs just starting this week, and because of the Court hearing on the 26th.

You guys know that gulping feeling you get when you are spending more money than you have? That’s the way I am starting to feel!

The law is on our side in this matter. Winning is mainly going to be about raising money to pay the specialists on our side to make good presentations to the persons who will ultimately decide the outcome.

You know, if we could just get a $10 donation from every person signed up on this forum, we would be in great shape at the moment!

Thanks for whatever you can do.

Dave Mack