Cemex and the City: Between a Rock and a Hard Place

by Chris Austin

Originally published on www.scvtalk.com
Reprinted by permission


Cemex issued a press release earlier this month intended to refute the information given by the City of Santa Clarita regarding the proposed Cemex mine in Soledad Canyon. Susana Duarte, VP of Communications and Community Relations of Cemex, stated, “Cemex will provide straight talk, not misinformation about the project. We are mailing information to residents and creating a special mini-Web site to provide facts about the project. Our goal is to make sure residents can make informed and educated decisions regarding this project that are based on facts that have been verified by numerous studies, officials, and authorities.”

A Summary of Cemex's Press Release & the City's Efforts

Cemex contends that the proposed project is not the largest sand and gravel mine in the LA County area, let alone the whole country, but that there are five other mines in the San Gabriel Valley that are similar in size or larger than the project. Cemex is bound by the consent decree to mine not more than 69.2 million tons of sand and gravel over 20 years in order to produce a total of 56.1 million tons per year. The project is permitted to produce between 1.4 & 5 million tons each year.

The project is on the back side of the mountain, and only 177 acres or less will be disturbed. Cemex will replant native plants and take other steps to return the land to a natural setting once mining is completed.

The Environmental Impact Report and the Environmental Impact Statement (BLM) both concluded that there would not be any significant impact on traffic. Up to 600 trucks a day could potentially be visiting the mine, generating 1200 additional diesel truck trips on SR-14. Cemex has agreed to limit the number of trucks entering and leaving the site to 8 trucks during the morning peak period and 20 trucks in the evening peak traffic period.

The press release points out that without this mine, there would be the same number of trucks on the freeway, but they will be traveling longer distances from places like Palmdale (which has 8 active mines), and would drive right through Santa Clarita.

The agreement also calls for Cemex to establish an open space, air quality and traffic fund of about $1.5 million over an 11 year period to address residents’ environmental concerns. The money would be used towards parks and trails in nearby communities. Cemex has also committed to fund the construction of improvements at the project entrance along Soledad Canyon Road.

Approximately 9600 homes are located within a 5-mile radius of the proposed mine site, and the city has spent nearly $7 million over the last 19 years fighting the project. Ken Pulskamp, City Manager, commented in a Daily News Article on 8/16/2006: “The size and scope of the mining project Cemex wants to locate in Soledad Canyon is far too large to be near more than 500,000 residents in the North Los Angeles County region. We would like to see this project reduced to historical mining levels, which is about a tenth of what Cemex is trying to bring here.”

Buck McKeon’s bill, HR 5471, if passed, would limit the mine to 300,000 tons per year, not the up to 5 million tons as proposed by Cemex. The city has sent postcards to every resident to fill out and send to officials in Washington, indicating their support for the bill. The city has also erected a billboard at SR-14 and the Sand Canyon exit, and compiled a contact list of over 7400 concerned residents.

40 years of mining, 20 years of fighting

Mining in Soledad Canyon is nothing new; there has been mining there since the 1960s. It was designated by the state in 1987 as a “regionally significant construction aggregate resource area”, and in 1990, the federal Bureau of Land Management (BLM) awarded the contract to Transit Mixed Concrete for $28 million. Transit Mixed Concrete was subsequently purchased by Cemex. The proposed project is a large sand and gravel mine to produce and deliver ready-mixed concrete, and, according to BLM, will create 300 to 500 jobs.

BLM approved the project with numerous mitigation measures, including requiring Cemex to obtain a state environmental review permit. Cemex applied for this permit in 1991. Since that time, the project has been under public review numerous times for a total of 13 months and has been the subject of 19 public hearings in an environmental review process that has lasted a decade and produced a 2000+ page 8-volume Environmental Impact Review.

The permit was denied three times by the county Board of Supervisors, most recently in April of 2002. Cemex filed suit in January of that year alleging unnecessary delay by the county; and amended the suit in May of 2002 based upon the denial. After over a year of mediation, the county & Cemex reached the agreement as specified in the consent decree. The Board of Supervisors approved the agreement in a 3-2 vote and in May of 2004, the District Court approved the consent decree and entered the judgment.

The consent decree states that the county and Cemex “enter into this Consent Decree to provide for the expeditious implementation of the Federally-Approved project”, and that the county cannot “interfere with, conflict with, or otherwise frustrate or impair” the agreement with Cemex.

The City of Santa Clarita appealed, claiming the consent decree and the Environmental Impact Report violated the California Environmental Quality Act, the federal Clean Water and Clean Air acts, as well as the National Environmental Policy Act. The state Attorney General’s Office filed a brief in support of the city, arguing the terms of the consent decree could hamper enforcement of state environmental laws.

In February of 2006, the ninth circuit Court of Appeals voted to uphold the consent decree. Tom Dresslar, spokesman for the state Attorney General’s office, said in a February 2006 Daily News article, “We respectfully disagree with the court’s ruling. I think the county settlement surrendered too much of its regulatory authority over the mine. We think the provisions of the consent decree, some of them, were overly broad and unconstitutional.”

He went on to mention that the Bush administration had taken a stance in support Cemex, upholding the federal contract over the state’s environmental laws. “That’s a dangerous precedent”, he said.

California's Building Boom and Soledad Canyon

But why is this mine so important? Because meeting the housing, commercial building, public works and transportation needs of an ever-growing population over the next 10 years will require vast quantities of aggregates. According to the Construction Materials Association of California, 57% of all aggregates are used in private building and housing, while about 43% of all aggregates are used for public works projects – roads, highways, schools, hospitals, dams, etc.

Governor Schwarznegger is stressing the need for major infrastructure upgrades in a ballot initiative which will be up for a vote in November. Based on 2005 projects and materials use, Caltrans will need 14 million additional tons of aggregates over last years’ usage just for Caltrans projects alone. Substantially more aggregates would be needed for city and county projects funded by new bonds, as well as new school and levee construction, and this is not even including new home construction. The county has already approved well over 60,000 homes for construction in the north county area alone. The State Department of Conservation is forecasting a 30% shortfall of construction aggregates statewide over the next four decades.

As demand for aggregate continues to grow, finding new sources is getting increasingly difficult. Supplies in the San Gabriel Valley could soon be depleted. Gravel mines are typically among the last things that communities want to see in their backyards. Aggregate has to be mined close to where it is used, because its weight, bulk, and relatively low value, it is prohibitively expensive to transport. Adding just 25 miles to the haul can double the price of the aggregate.

Sand and gravel related operations can produce significant amounts of particulate pollution that can be a nuisance to neighboring communities as well as a health threat. In addition, diesel emissions from trucks and heavy equipment used in mining operations can contribute significantly to air pollution. Dr. Robert Nolet, superintendent of the Sulphur Springs School District, expressed his concerns, stating “Our school district is very concerned about the health issues related to this massive mining project, especially the air quality issues which will undoubtedly impact all of our students, and most notably those children with asthma and other breathing problems.”

In a September 2005 interview with SCVTV, Joe Cassmassi of the South Coast Air Quality Management District said that their initial analysis was that Sulphur Springs Elementary School was located far enough away from the site that the emissions likely would not be high enough to warrant notification. In the interview, Mr. Cassmassi stated that the AQMD has done basic analysis of the Cemex project as planned, and that actual mining activities will increase dust and other air particulate matter. This additional pollution likely won’t violate any federal pollution standard, but may violate the state standard, as the SCV is hovering very close to that right now. However, the impact from diesel emissions from trucks & factory equipment might be significant enough to require notification of residents along the transit routes and adjacent to the facility.

Other California Communities and Aggregate Mining

Much of the aggregate used in construction has come from the San Gabriel Valley; and much of that from Irwindale. Incorporated in 1957, Irwindale had a resident population of about 1200, with 93.5% of the city zoned for industrial use. Approximately 260,000 people live in Irwindale and the surrounding communities today, including Azusa, Baldwin Park, and El Monte. There are 17 gravel pits in Irwindale; seven of these are currently active. Annual production from Irwindale-area mines ranges from 9 to 18.5 million tons per year. (Reminder: Cemex permits allow it to mine up to 5 million tons per year from Soledad Canyon.)

Irwindale city manager Steve Blancarte said city officials have been concerned about the negative effect of quarry mines on the residents. An extensive study was commissioned by Irwindale to look into the situation in 2000. Blancarte said that surprisingly, the biggest impact was truck traffic. In a May, 2002 San Gabriel Tribune article, he said, “The weight of the trucks is so heavy. There’s not only pollution impact, but infrastructure impact.”

In response to citizen concerns, in 2002 Congresswoman Hilda Solis and Congressman Henry Waxman asked the U.S. Environmental Protection Agency to provide specific information regarding the health and environmental effects of the mining operations in and around the Irwindale area. The study found that the mining operations generate large quantities of dust and particulate matter in the process of digging, transporting, and processing the gravel. In addition, the diesel emissions from the heavy machinery and trucks used in mining operations emitted large quantities of toxic air pollutants and particulate matter.

The report also stated that federal and state regulators lack basic information needed to assess the magnitude of the impact on air pollution. Environmental regulators were unable to identify all of the air pollutants released or how much air pollution is generated. The study also pointed out that many of the same data gaps also exist regarding water pollution from mining operations. It went on to say that what little information is available is inaccessible to the residents of the local communities.

In addition, mining is not a significant revenue generator for a locality, which must deal with a multitude of impacts and citizen concerns. Rueben Arceo, director of planning & development services with the city of Irwindale, said in 4/17/2000 Business Journal article that a particular area of concern for the city is the low tax revenues that mines generate. Mr. Arceo noted that the sales taxes the city derives from the 4000 or so acres of land used by the mines is equal to what one good-sized car dealership in neighboring cities produce.

The City's Predicament

The City of Santa Clarita seems to be literally between a rock and a hard place. On the one hand, there is an overwhelming need for the aggregate resources located in Soledad Canyon, some of which may be used for developments in Santa Clarita. On the other hand, there are the very real ecological and health concerns of the citizens to be considered. The quarry will not be a significant source of revenue for the City, yet it must still deal with the concerns of the residents and the impact of the mine on traffic and air quality. So far, the city has not been successful in its legal battles. However, the final outcome is far from being settled.

In part 2, I’ll cover more about aggregate mining and the proposed mine, Cemex’s environmental record, the status of lawsuits pending, and some interesting points regarding the county, the federal government, and the Cemex project.
 

Cemex's Proposed Operation

Aggregate mining begins with removing the ‘overburden’ (the overlying material) to expose the sand, gravel, or stone. The overburden is then either sold, stockpiled for reclamation activities, or used for constructing berms around the mine site. The underlying material is drilled and blasted; the rock is then extracted with power shovels, bulldozers, or draglines. It is then crushed, washed, screened and sorted by size. It is usually moved around the plant on conveyer belts. Finally, it is loaded on trucks for shipment, or mixed with other ingredients to create ready-mix concrete.

Per the terms of the consent decree, Cemex will be fully-operational Monday through Saturday from 5:00 a.m. to 10:00 p.m. for all mining, excavation, crushing, screening, transporting and stockpiling activities. Blasting operations will occur between the hours of 7:00 a.m. to 7:00 p.m.; there will be no blasting on Sundays and holidays. Cemex will provide notice in local papers and on the internet of when blasting is to occur.

For all other operations, Cemex is permitted to run 24 hours a day, seven days a week. These operations would include supply deliveries, maintenance activities, batch plant operations, loading and shipping activities.

Traffic

In August, Cemex stated that "[It] has agreed to limit the number of trucks entering and leaving the site to 8 trucks during the morning peak period and 20 trucks in the evening peak traffic period”. The Environmental Impact Report generated for this project, as well as the Environmental Impact Statement issued by BLM, stated that the Cemex project would not have any significant impact on traffic.

Item #13 of Article H of the Consent Decree deals specifically with traffic issues, and this item does state that trucks are limited as specified in the Cemex press release. It is important to point out that the morning peak period is defined as only a 1-hour period between 6:00 a.m. and 7:00 a.m.; the evening peak period is also a one-hour period defined as 5:00 p.m. to 6:00 p.m.

This Item also goes on to say: Cemex “shall limit outbound truck trips to 57 during the hour prior to the a.m. peak hour (6:00 a.m. to 7:00 a.m.) and 57 outbound truck trips during the hour following the a.m. peak hour (7:00 a.m. to 8:00 a.m.).” It further spells out the specific efforts which Cemex will use to attempt to limit the trucks visiting the site, but then notes that “the failure of these measures to achieve the inbound limits shall not constitute a violation of the permit.”

In other words, if Cemex fails to control the number of trucks during these hours defined as ‘peak periods’, they won’t be penalized for it.

Air Quality Impact

Aggregates are environmentally inert materials, and their processing requires only crushing, screening, and washing The main concerns to air quality are dust from operations and diesel emissions from mining equipment and trucks.

Santa Clarita already has some of the worst air quality in the nation, according to Joe Cassmassi of the South Coast Air Quality District. “The levels of ozone — which is a form of oxygen, but is a pollutant — have been recorded to be fairly high in the Santa Clarita Valley. It has a relatively high frequency”, he said in a November, 2005 interview.

He said later in the same interview that the dust expected to be generated by the Cemex project would violate the state’s standard for particulate matter, but not the federal standard. However, the impact of the diesel emissions from the mine machinery and trucks could require residents along the transit route and in the surrounding community to be notified.

The operation of the mine on windy days is of particular concern to area officials. In January of 2005, the AQMD enacted severe restrictions on mining operations during high winds. A mining trade group sued the AQMD, charging the rule is too hard to follow and enforce. The two parties have reached a settlement which calls for the rules to be re-evaluated and adjusted to allow some operations if proper dust control is utilized. This matter will be a subject of public hearings later this month.

Between 2001 and 2003, the Santa Clarita Valley recorded the third-highest levels of ozone in the air of any region within the United States. In 2005, 65 days exceeded the state standard for ozone, and 47 days exceeded the federal standard. Santa Clarita also has relatively high levels of particulate matter.

Local environmentalist Lynne Plambeck’s major concern with the Cemex mine is its impact on air quality. She is concerned that the mine will consistently generate particulate matter into the atmosphere, and the emissions from trucks and machinery will make our air quality even worse than it already is. These tiny particles can become lodged in the lungs and cannot be removed, causing permanent lung damage and an increase in asthma rates.

It is true that asthma rates have been increasing within the Santa Clarita Valley. This has been especially noticeable at the junior and senior high schools in our area. Christine Amstutz, supervisor of health services for Hart School District, said in a 2004 Daily News article: “In all the schools, we’re seeing a dramatic increase”. Amstutz has done preliminary analysis to learn if there are specific asthma clusters in the district, and believes her research proves that there is a higher asthma rate of children attending schools built closer to development projects as well as close to the mines & quarries near Soledad Canyon.

Experts from the LA County Department of Health have said that any correlation between asthma rates and the quarries has not been studied enough, and point to other factors which could be the cause.

Environmental Impact on the Santa Clara River

Lynne Plambeck (SCOPE) also has major concerns about water quality and water supply. Under the terms of the Consent Decree, Cemex would be allowed to develop water wells and pumping facilities near the Santa Clara River, and will be allowed to pump over 700 acre-feet from the river for mining operations. Downstream, underground flow from the river is a source of water for Santa Clarita, and this will mean less water for the municipal water districts who depend upon the river for a portion of their water. These agencies already have difficulty meeting demand during the dry season.

Adequate water within the river is critical for survival of at least two endangered species, the Southwestern Arroyo Toad and the Unarmored Threespine Stickleback fish.

The Southwestern Arroyo Toad makes its home along the shallow, gravelly pools next to sandy terraces along the rivers. Designated as endangered in 1995, the remaining populations in the U.S. are found within or adjacent to the Cleveland National Forest. It has also been found in parts of the river located within city limits.

The Unarmored Threespine Stickleback fish, a freshwater fish, was listed as an endangered species in 1970. This fish, found primarily in Santa Barbara, Los Angeles and San Diego counties, prefers to make its nest where there is ample vegetation and a gentle flow of water.

Ron Bottoroff, of Friends of the Santa Clara River, said “Friend's major concern with this project is that it will pump too much water out of the river for gravel washing processes. That will begin to cause areas of the river to dry up that would normally have surface water, and will cause vegetation die-off. It could also impact the survival possibilities of the Unarmored Threespine Stickleback, a federal and state endangered fish. Soledad Canyon has a lot of biological value and is not a good place for mining of this nature.”

Plambeck praises the city’s efforts to stop the mine, but expresses her dismay that the city did not work harder to block the 21,000+ unit Newhall Ranch project. “The impacts of the Newhall Ranch project are just as devastating to the river and the environment as the Cemex project would be”, she stated.

The proposed Cemex mine is opposed by more than 90 agencies, environmental organizations, and special interest groups.

The Dirt on Cemex's Environmental Record

Cemex is one of the leading producers of ready mix concrete, and has operations spread across five continents. Cemex operates over 280 ready-mix concrete plants and 12 cement plants with 49 distribution centers here in the United States. Cemex has numerous other ready-mix locations within the greater Los Angeles area, including Azusa and the Inland Empire.

Cemex has won several industry awards, including most recently the National Ready Mixed Concrete Association 2006 Environmental Excellence Award for one of its plants in Houston. Cemex also won the World Environment Center Gold Medal for International Corporate Environmental Achievement in 2002.

Cemex is a member of the World Business Council for Sustainable Development, and is one of 10 other cement companies who have participated in the Cement Sustainability Initiative (CSI) . This project explored ways for improving industry operations in the areas of climate protection, fuels and raw materials, employee health and safety, emissions reductions and local impacts.

But Cemex’s record is not entirely clean: A search of EPA violations found that 8 Cemex plants had ‘alleged current significant violations’, which has resulted in 4 formal enforcement actions and 15 informal enforcement actions over the past three years.

In June of 2006, the State of New Mexico Environment Department found violations of multiple air-quality standards and operating permits at six facilities operated by Cemex in Dona Ana and Otero counties. These violations included operation of equipment without a permit, failure to conduct air-quality compliance tests, and failure to maintain asphalt equipment at proper temperatures. Recent tests in the area had shown more dust and other pollutants in the air in Dona Ana county as compared to other parts of the state.

Some of these violations occurred at their plants in Lyons, Colorado, and Charleviox, Michigan; however, the violations had more to do with the operating temperature of the cement kilns, which will not be used in the Soledad Canyon operation.

All in all, with over 292 facilities in operation around the United States, violations at eight plants represents 2.74% of its facilities, which is a rather respectable record.

Cemex is also meeting opposition for its plans to construct a ready-mix concrete plant in Florida. As within Santa Clarita, citizen groups have been formed and opposition is mounting within the community to prevent mining in their community.

The County's Role

The rapid urbanization of the United States in the latter part of the twentieth century, along with the development of the interstate freeway system, led to an unprecedented amount of aggregate usage. And this trend will continue; it has been projected that in the next 25 years, the USA will use nearly as much construction aggregate as was used in the entire 20th century. In some regions, aggregate is considered as essential of a resource as electricity or gas.

Rapid urbanization without thought to mineral resource development led to some aggregate resources being lost due to development. Once a potential sand and gravel source is paved over, it is likely lost forever as a mineral resource, and communities are usually resistant to new mines being located in their midst. In 1967, the California state General Code was amended to add “natural resources” to the list of things that must be considered in land use planning. In 1973, the California Division of Mines & Geology published a report that showed the need for mineral resources and how these were being needlessly lost to the people of the state.

In 1975, California passed the first state law designed to create a regional database to identify and preserve the remaining aggregate resources. The legislature declared that “the extraction of minerals is essential to the economic well being of the state and to the needs of society …" This law mandated counties to incorporate mineral resource management policies into their general plans. In 1987, the county identified Soledad Canyon as an important aggregate resource, and in 1990, BLM leased the mineral rights to Transit Mixed Concrete, who was later aquired by Cemex.

In 2004, when the county Board of Supervisors voted to deny the operating permit, besides filing the appropriate legal documents, Cemex also appealed the denial to the state of California’s Mining & Geology Board. Although the board ruled that they were preempted from reviewing the appeal, the board’s chairman stated “the public record demonstrates delay and indecision by Los Angeles County in its processing of the surface mining application. The county’s conduct in this area is surprising given the surface mining infrastructure already developed, and surface mining history of the mineral lands in question, and given that the state and the county through its mineral resource management policies incorporated into its general plan, sought since 15 years ago to protect these identified important mineral resources from permanent loss due to encroaching urbanization.”

In spite of the knowledge that the site was planned for mining, the county continued to approve housing developments in close proximity to the mine site, including lower Stonecrest, built between 1997 and 1999, and Upper Stonecrest, built around 2003. It is unclear whether these residents were fully notified about the proposed mining operation when they purchased their new homes.

Even today, the county continues to approve housing developments around the proposed mine site, including the 542-home Spring Canyon development, approved by the Board of Supervisors in 2004. The Spring Canyon development will be built to the east of Stonecrest, and will be even closer to the proposed mine.

In fact, at one time, a 556 factory-built housing project (Bee Canyon Mobile Home Park) was proposed on the land between SR-14 and directly abutting the Cemex mine site. The project was withdrawn from the planning commission in April of 2006 due to opposition from both Cemex and the Federal Government; however, the terms of the consent decree call for Cemex to construct a soundwall on the property line should the property ever be developed.

The consent decree contains a detailed history of the project, beginning on page 25. It also includes a very intriguing clause on pages 13 through 18, under the heading “Enforceability”. There is a provision within this section which states that if the County does anything to delay, frustrate, or prevent the timely and successful implementation of the project during the first two years following startup of the mining project, Cemex has the option to disclose something the County did between April 22, 2003 and October 1, 2003, defined in the consent decree as “Retroactive Conduct”. This “Retroactive Conduct” is not defined and it seems the all parties are keeping this to themselves. It is unclear how this provision would affect the county’s ability to take action if Cemex fails to comply with mitigation requirements.

What's Next?

Cemex’s proposed mining operation will no doubt have negative impacts on traffic congestion. Although it is true that Cemex will attempt to limit trucks to a minimum during peak times, these peak times are only for one hour in the morning, and one hour in the afternoon. Per the terms of the consent decree, Cemex is limited to 57 trucks leaving the plant in both the hour preceeding the a.m. rush hour as well as the hour immediately following.

Moreover, there is no question that air quality, already problematic, will get worse. The mine will increase particulate matter in the air through its operations, and the diesel emissions of the trucks and mining equipment will further spew pollutants into the air. The Santa Clara River will no doubt be impacted as well. There is much conflicting data from the experts on both sides regarding the overall impact of the mining operation.

However, Cemex’s environmental record is pretty good; my own search of the internet and of EPA files showed relatively few infractions. If anyone has information to prove otherwise, please post it below.

With a shortage of aggregate in our area, and aggregate resources nearing depletion in the San Fernando Valley, the need for the resources located in Soledad Canyon will only increase, as will the pressure to begin mining operations. Cemex is hoping to begin in 2008.

There are still lawsuits pending, so the final outcome has not yet been determined. Ultimately, the success of the city’s efforts to scale back the size of the mine ultimately lies in the support and efforts of its citizens. Whether these efforts will be successful still remains to be seen.
 

HOME