BPL digs for grounds to nullify mining licenses

Public Lands Board Chair Tom B. Aldan yesterday assured the public that the agency is looking very closely at persistent clamors to cancel the commercial leases of mining firms in Pagan on several grounds.

The reasons could include non-payment of the agreed fees which is reportedly costing CNMI government coffers significant amount of revenues.

While not ruling out the possibility of revocation, Mr. Aldan emphasized that BPL is still in the process of investigating whether or not some mining firms violated existing policies that may be grounds for the suspension of their permits.

He added the Board is yet to come up with any decision that relates to the nullification of the mining leases of three companies with permits to extract pozzolan and basalt in Pagan.

“There are findings that the companies are behind in payment and this is a serious ground for revocation,” said Mr. Aldan in an interview.

BPL has tasked the Office of Public Lands staff and legal counsel to review the 20-year contracts signed between the agency and mining companies J.G. Sablan Rock Quarry Inc., Fareast Mining Inc., and CNMI Mining Inc. in order to determine if the terms and conditions are being adhered to.

“Rest assured that if there are grounds for revocation, this matter will be addressed accordingly,” he said.

As this developed, J.G. Sablan Rock Quarry President John Sablan said his company still has elaborate plans to pursue mining activities on the island of Pagan.

The businessman added his firm is currently preparing to market locally and internationally a new “paramagnetic” agricultural product that is expected to stimulate the growth of plants 15 to 30 percent than its normal development.

Meanwhile, BPL is set to probe into the revocation issue after the OPL staff delivers a report during the next board meeting.

Concerns have been raised that leniency on the part of authorities to allow delinquent licensees to hold on to their contracts is a factor that contributes to the depletion of government resources.

A March 1996 US Department of the Interior-Inspector General’s report stated that the Division of Public Lands, now the Office of Public Lands, did not effectively develop management policies, procedures, and controls related to public land.

As a result, the report stated, the Commonwealth lost $118.4 million on completed exchanges of public land and could lose $70.1 million on pending exchanges, and lost revenues of $25.1 million on exchanged public land that was leased to a developer by landowners.

The audit report added that lease revenues of $565,000 were lost and the government may lose additional lease revenues of $469.2 million over the unexpired period of the leases; homestead recipients improperly received $7 million from the unauthorized sale or lease of the lots; and homestead lots were awarded to applicants who are ineligible or who did not have the greatest need.