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<br />Mr. Michael S. Mottice <br />October 11, 1999 <br />Page - 2 <br />With respect to the "fines pile" or "screenings pile" <br />the IBLA reverses decision by the BLM and authorizes disposition <br />by appellants, thereby precluding the declaration of abandonment. <br />The basic premise supporting the IBLA position is stated on page <br />148 IBLA 375 as follows: <br />"In its pleadings, BLM agrees ac <br />mineral deposit embraced by a valid mining claim is <br />extracted and processed, it becomes the personal property of <br />the person who has the sight to sever it, citing Forbes v. <br />Gracey, 94 U.S. 762, 765-66 (1876)." <br />It is there stated: <br />"As we construe the statutes of the United States and <br />the recognized rule of the government on this subject, the <br />moment this ore becomes detached from the soil in which it <br />is imbedded it becomes personal property, the ownership of <br />which is in the man whose labor, capital and skill has <br />discovered and developed the mine and extracted the ore or <br />other mineral product. It is then free of any lien, claim <br />or title of the United States, and is rightfully subject to <br />taxation by the state as any other personal property is." <br />"The truth of this proposition is too obvious to need <br />illustration or elaboration, and, as we have already said, <br />the pressure of business does not admit of it." <br />As stated at page 379 of the IBLA Decision, BLM was <br />motivated to impose restrictions on the quarry in order to assure <br />prospective buyers of the rock dust plant of a "secure source of <br />suitable quality limestone in the immediate vicinity of the <br />plant", which would support a sale to realize the $3,000,000 <br />reclamation bond security value. This reason no longer exists. . <br />The rock dust plant has been removed; the $3,000,000 reclamation <br />bonding has been provided in full; the Division of Minerals and <br />Geology is in the final processes for the Coal Basin site of <br />completing reclamation; mutual releases have been executed under <br />a settlement agreement which is confirmed by Decree of the <br />District Court of Pitkin County, Colorado. (Copy of the <br />Settlement Agreement is enclosed.) <br />For the foregoing reasons, Pitkin Iron Corporation, <br />