Attorney warns Utah mining group of pending regulation changes

PARK CITY — The mining and energy sectors have an unavoidable regulation tsunami coming their way in the next few years, James Holtkamp told the Utah Mining Association conference on Thursday.

"If you're involved in the use of energy, you will be affected over the next few decades," said Holtkamp, an attorney with Holland & Hart in Salt Lake City. "If you're not at the table, you're on the menu."

Companies ranging from fuel suppliers to big greenhouse gas emitters will face new regulation from the Environmental Protection Agency over the next 18 months, Holtkamp said.

Agency rules published June 3 will limit the amount of greenhouse gases that new sources or changing facilities can emit, starting in January 2011. Six months later, the rules would affect more mines and businesses, he said, and a final standard will be published by 2016.

Lawsuits are already pending on both sides of the fence, according to Holtkamp. One of the big problems for the mining industry will be that there is no feasible way to control most emissions without reducing combustion.

The changing clean air rules stem partly from 2008 legislation and partly from (a House vote on the) federal Waxman-Markey Climate Change Bill, in addition to a federal court decision in Massachusetts that called greenhouse gases a pollution, he said. Changing standards are also coming from the Obama administration, which promised a cap-and-trade program a year ago but has yet to follow through.

For Utah mines, all of that brings fear and uncertainty, said mining association President Todd Bingham, and those are things the market handles poorly.

"It's difficult to expand if the criteria changes," he said. "Mines try to look 10 years out. If you can't even see three years, it's harder."

Rio Tinto Kennecott employee Gina Crezee agreed, but she was quick to point out that her company is a strong believer in climate change, sustainability and even cap-and-trade programs.

Despite the coming rule changes, Utah mines will be able to lean on the Utah Division of Oil, Gas and Mining, which implements EPA rules. Miners have had problems working with the federal government since statehood, said Utah Trust Lands worker William Stokes.

Ted Wilson, Utah Gov. Gary Herbert's environmental adviser, also tried to ease industry fears.

"Governor Gary Herbert is not going to pull back from those industries," he said, discussing a 10-year energy plan for the state. "Traditional sources of energy have to be the foundation."

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