Free Response - District Court of Colorado - Colorado

Case 1:04-cv-00749-MSK-PAC

Document 64-2

Filed 10/06/2005

Page 1 of 8

REVISED VAUGHN INDEX - FOIA LITIGATION (High Country Citizens' Alliance) Civil Action No. 04-MK-0749 (PAC)
DOCUMENT: MINERAL REPORT, MINERAL PATENT APPLICATION OF THE MT. EMMONS MINING COMPANY FOR PARK CITY 10, 15, 16, 17, 18, 19, 27, 28, 32, AND 33 MINING CLAIMS, 77 Pages plus Attachments 1-5 (Prepared September 25, 2000; Technical Approval September 28, 2000; Management Acknowledgment October 5, 2000).
Date Source Intended Recipient BLM Subject M atter of Document FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Document

Mineral Report Pg. 2 (produced in redacted form)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

Summary and Recommendations

Mineral Report Pg. 42 (produced in redacted form) Mineral Report Pgs. 54-55 (produced in redacted form) Mineral Report Pgs. 57-61 (completely withheld) Mineral Report Pgs. 62-71 (completely withheld)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

BLM

Table 2. Discovery Drill Hole Data

5 U.S.C. § 552(b)(4)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

BLM

Comparison of original assays and check assays for discovery drill holes

5 U.S.C. § 552(b)(4)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

BLM

Tonnage and Grade Considerations; Table 4. Block model parameters (from W ME, 1999); Figure 36. Plan view of reserves

5 U.S.C. § 552(b)(4)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

BLM

Economic Evaluation (M olybdenum Price; Revenues; Costs; Personnel; Capital Costs; Operating Costs; Economic Viability; Table 5: Summary of Economic Analysis)

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient BLM

Filed 10/06/2005

Page 2 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Mineral Report Pg. 72 (completely withheld)

9/25/00

W estern Mine Engineering, Inc. & Mt. Emmons Mining Co./Phelps Dodge Corp.

Conclusions: Gives an explanation of the purpose of the Mineral Report, which is to determine whether the ten mining claims under examination are valid. The report is concluded by information provided by the claimant, the drill core and drill logs, the geologic literature, and the reports completed by AMS, BDC, and W ME. Mount Emmons Project, Mineral Examination Date Case, Cash Flow Analysis; Mount Emmons Project; FHFC Case, Cash Flow Analysis

Addendum to the Mineral Report

3/15/03

W estern Mine Engineering

USFS/ BLM

5 U.S.C. § 552(b)(4)

DOCUMENT:

ECONOMIC ANALYSIS of the MT. EMMONS DEPOSIT, GUNNISON NATIONAL FOREST, COLORADO. PREPARED IN SUPPORT OF A CLAIM VALIDITY DETERMINATION OF THE PARK CITY 10, 15, 16, 17, 18, 19, 27, 28, 32, 33 MINING CLAIMS (Prepared September 1999). ATTACHMENT 2 TO MINERAL REPORT.

Document

Date

Source

Intended Recipient USFS/ BLM

Subject M atter of Document

FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Economic Analysis Pgs. 8-3 - 8-8 (completely withheld) Economic Analysis Pg. 8-9 (produced in redacted form) Economic Analysis Pgs. 8-10- 8-18 (completely withheld)

9/1999

W estern Mine Engineering, Inc.

Block Model Parameters; Compositing; Geostatistics/ Variography; Restricting the Influence of High-Grade Intervals; Cumulative Frequency Diagrams of MoS 2; Variography; Mount Emmons Variogram

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Clipping; Block Model

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Map of Drill Holes; Estimation; Plan View Map of Drill Holes; Modeling Results; Perspective View of the Mount Emmons Block Model; Conclusions Regarding Reserve Estimates

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient USFS/ BLM

Filed 10/06/2005

Page 3 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Economic Analysis Pg. 10-1 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

Mining, Milling, and Related Operations

Economic Analysis Pg.10-2 (completely withheld) Economic Analysis Pgs. 10-4 - 10-5 (produced in redacted form) Economic Analysis Pg. 10-6 (completely withheld) Economic Analysis Pgs. 10-7 - 10 9 (produced in redacted form) Economic Analysis Pg. 10-11 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Mount Emmons Project Site Layout Map Figure 10.1.1

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Mining; Geology and Mineralization Considerations; Geochemical Considerations

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Figure 10.1.3 (Graph of Stability Number (N) versus Shape Factor (S)

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Groundwater Inflows; Production Schedule; Ore Production Schedule; Mine Access; Level Development

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Stope Mining

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient USFS/ BLM

Filed 10/06/2005

Page 4 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Economic Analysis Pg. 10-12 (completed withheld) Economic Analysis Pgs. 10-14 - 1016 (produced in redacted form) Economic Analysis Pg. 10-18 (produced in redacted form) Economic Analysis Pg. 10-22 to 1023 (produced in redacted form) Economic Analysis Pg. 10-25 (produced in redacted form) Economic Analysis Pg. 10-28 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

Figure 10.1.5 (Mount Emmons Project Typical Stoping Sequence

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Ore and Waste Haulage System; Backfill System; Ventilation; Ancillary Underground Support Facilities

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 10.2.1 Regents and Use Rates

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Crushing Plant; Dewatering, Filtration and Drying; Reagent Handling and Storage

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Discussion re Tailings Disposal Comparison

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Ancillary Facilities

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient USFS/ BLM

Filed 10/06/2005

Page 5 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Sampling Procedures and Analytical W ork Pg. 11-1 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 11-2 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 11-12 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 11-15 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-2 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

Sample Preparation Procedures and Analytical Methods

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Check-Assay Procedures

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Pilot-Plant Testing

5 U.S.C. § 552(b)(4)

W estern Mine Engineering, Inc. 9/1999

USFS/ BLM

11.6.4. Concentrate Grade; 11.6.5 Review of Metallurgical Testwork and BDC Conclusions

5 U.S.C. § 552(b)(4)

W estern Mine Engineering, Inc. 9/1999

USFS/ BLM

Table 12.1.2 Mine Salaried Personnel Schedule

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient USFS/ BLM

Filed 10/06/2005

Page 6 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Sampling Procedures and Analytical W ork Pg. 12-3 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-4 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-5 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-11 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-13 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

Table 12.1.3 Mine Hourly Personnel Schedule

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 12.1.4 Mill Labor and Supervision; Mill Operating Cost Summary

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 12.1.5 General and Administrative Staffing Requirements

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 12.2.2 Mine Initial Capital Equipment and Materials

5 U.S.C. § 552(b)(4)

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 12.2.5 Mine Preproduction Development Costs

5 U.S.C. § 552(b)(4)

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Case 1:04-cv-00749-MSK-PAC
Document Date Source

Document 64-2
Intended Recipient USFS/ BLM

Filed 10/06/2005

Page 7 of 8
FOIA Exemption Claimed 5 U.S.C. § 552(b)(4)

Subject M atter of Document

Sampling Procedures and Analytical W ork Pg. 12-17 (produced in redacted form) Sampling Procedures and Analytical W ork Pg. 12-25 (produced in redacted form)

9/1999

W estern Mine Engineering, Inc.

Table 12.2.8 BDC Mill Capital Cost Summary Dry Tailings Option

9/1999

W estern Mine Engineering, Inc.

USFS/ BLM

Table 12.2.14 Infrastructure Capital Cost Estimates

5 U.S.C. § 552(b)(4)

EXEMPTION CLAIMED and BASIS for WITHHOLDING OF ABOVE RECORDS: Withheld under 5 U.S.C. § 552(b)(4); Basis for withholding: Exemption 4 of the Freedom of Information Act permits agencies to withhold information of a commercial/financial nature, obtained from a person, and privileged or confidential. Redactions of the exempt commercial/financial data were made on the requested documents and were identified with the coinciding FOIA exemption. The Court of Appeals for the District of Columbia Circuit has specifically rejected the argument that the term "commercial" be confined to records that reveal basic commercial operations, holding instead that records are commercial so long as the submitter has a "commercial interest" in them. In its determination to withhold, BLM Colorado applied the "competitive harm prong" under Exemption 4 as it relates to the competitive position of the person from whom information has been obtained/submitted. Commercial or financial matter is "confidential" for purposes of Exemption 4 if disclosure of the information is likely to cause substantial harm to the competitive position of the person from whom the information was obtained. In its analysis, BLM Colorado determined that release of the redacted information would result in a distinct competitive disadvantage; and, the likelihood of substantial competitive harm exists. BLM Colorado based its decision on the fact that the Mineral Report and the Western Mine Engineering Report described in considerable detail the potential economics related to anticipated revenues, which competitors could use to develop pricing strategies designed to underbid the Submitters in the speculation and futures markets. As the Department of Interior determined with respect to similar information withheld after HCCA's initial appeal, this is especially true where the competitors would have access to confidential financial information of the Submitters, but the Submitters would not have the same type of information about them. -7-

Case 1:04-cv-00749-MSK-PAC

Document 64-2

Filed 10/06/2005

Page 8 of 8

Further, the potential economic harm was supported by the November 20, 2001, letter received from H. Barry Holt, Attorney for Phelps Dodge Corporation and Mt. Emmons Mining Company ("Phelps Dodge"), submitted (via e-mail) to the BLM. As to the portions of the Mineral Report that the BLM had not produced, Phelps Dodge stated that it, "believes that the release of such information would cause substantial harm to its competitive position." Phelps Dodge justified its concerns as follows: The molybdenum market can be volatile and sometimes speculative. Release of proprietary mineral and economic information would result in a distinct competitive disadvantage and harm to Phelps Dodge. Information about the presence, kind, and grade of ore in specific drill holes, and the quantity and grade of reserves, coupled with estimates and analyses of mineral extraction, processing, and mine reclamation costs, all could be used by competitors in developing pricing strategies to underbid Phelps Dodge in the futures markets. Release of sampling data also could artificially inflate property values in the area by revealing valuable prospects of which competitors otherwise would not be aware. This type of information customarily is considered proprietary in the mining industry, and its release could result in severe economic damage to the mining company that invested vast sums of capital acquiring the information. Such information generally should be kept confidential for the life of the developed mine.

For these reasons, the BLM concluded that release of the withheld information would likely cause substantial harm to the competitive position of the Submitters and potential economic harm.

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