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Decision Memorandum

Mitsubishi Cement Corporation (MCC) Burnt Flats Exploration Drilling Phase II(Date Plan of Operation was submitted: 09/29/2009)

T.3N., R.lE., Sec.23,NW1I4.

USDA Forest Service (NFS)Mountaintop Ranger District, San Bernardino National Forest

Fawnskin, CA

Decision

I have decided to allow the second phase of the drilling exploration project of theMitsubishi Cement Corporation (MCC), in and around, Burnt Flats as described below:

The first phase involved drilling within an existing Forest System road and the Decision, Memo was signed and approved by the District Ranger on January 6, 2009. The second

planned phase is proposed for drilling off road in close proximity to the first drilling siteMCC plans to drill 8, eight hundred (800') foot, drill holes at the end ofFS road 3N02(west 0f the Mohawk Mine) using a reverse circulation drill hole. MCC is proposingthese drill 119!esto enhance their ore reserves already blocked out from their first drillingphase. "- "

The categorical exclusion is appropriate in this situation because there are noextraordinary circumstances that would potentially have significant effects to theenvironment. Since no public comments were received during the first drilling phase aninternal review was conducted by my staff to support my decision. The BiologicalAssessment and Evaluation are based on findings of an informal Section 7 U.S. Fish andWildlife Service consultation as required under Endangered Species Act.

Proposed Action

MCC submitted a proposed Plan of Operation (POO) to drill eight holes to determine orereserves in the Burnt Flats area north of Holcomb Valley's Arrastre and Union Flats(Figure 1). MCC will drill eight holes up to 800 feet deep in the valley north of the endof 3N02 (west of the Mohawk Mine) using a reverse circulation drill rig. The drill rigweighing approximately 7,100 pounds will be airlifted from MCC's plant south of theforest boundary in two stages. Helicopter flight plans will be submitted to the ForestAviation Officer and the District Botanist and Biologist two days ahead of the proposeddrilling. Each stage will be airlifted by two helicopters with different capacity to meetelevation requirements. The track mounted drill rig will walk to the proposed drill holesites on National Forest System land. The cuttings from the holes will be back filled intothe drill holes after a small amount of cuttings retained for analysis by MCC. The drill rigused here will have a capacity to drill to a depth of 800 feet.

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The drill rig is track-mounted using large turning radiuses to avoid scarring oroverturning the natural landscape.

FIGURE 1

Water for the drill rig will be pumped from a 10,000 gallon tank located on the 5200'bench at the MCC quarry site via a hose to the Burnt Flats project site (approximately6400'). If the pump capacity is not sufficient to pump uphill, MCC plans to haul thewater truck, half way up the slope, to a mine access road on NFS land and pump thewater to the drill site. If this option does not work, MCC may transport water to the drillsite by a helicopter at a substantially higher cost. MCC estimates approximately 600gallons of water per day of drilling MCC Fuels and lubricants will be airlifted in 55gallon drums and stored on plastic containment aprons to minimize potential spillimpacts.

MCC will have the drill rig, ATV, and pickup truck with materials and supplies airliftedfrom the MCC plant site (Point A on Figure 1) to the project site (Point B on Figure 1) inCushenbury claim 26. In Phase I, the track-mounted drill rig will be trammed betweensix drill hole locations (purple dots on Figure 2). No roads currently exist in this part ofthe project area. In Phase II, the drilling equipment and pickup truck will be airlifted a

Equipment to be used during the project includes:1 Geoprobe 7782DT Reverse Circulation Drill- drills maximum 800' hole;weight - 7,100 lbs, Width - S', Tramming speed - Smph.

short distance to a nonsystem road. Two drill holes (blue dots on Figure 2) will be locatedalong the nonsystem road. MCC drilled six or more holes in January 2009.

The off-road use of the drill rig, ATV, and pickup truck will be minimized to the greatestextent possible to protect vegetation and soils. Those vehicles will completely avoidflagged avoidance areas in order to protect rare plants.

The drilling equipment will then be trammed from the end of 3N02 to 3N16 to the BigBear Transfer Station (Burrtec Facility). The pickup truck and other supplies would bedriven out. The ATV would be transported on a trailer once it reaches Forest Systemroad 3N02.

FIGURE II

1 Crew Truck (Ford F-250) - provides access to drill locations, carries all fuel andlubricants necessary. Carries a crew of 4, 11Ogal Diesel fuel, 10gallubricants,110gal water, extra tools.

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1 ATV with small trailer for carrying drill rods to drill hole locations.

Fuel and lubricants will be used to service the drill on a daily basis all unused productswill be brought back to MCC at the end of each workday. All materials will be kept in 55gallon containers in the back of the crew truck until needed for servicing. Thesesubstances include: diesel fuel (11Ogallons/day), lubricants (lOgallons/day), water(110gallons/day). If any spills occur, Oilsorb (brand name) will be used to soak upliquids.

As each hole is drilled it will be filled before moving onto the next hole location. Noopen holes will be left.

No new roads will be built. No grading or widening of any Forest System or unclassifiedroads would be allowed.

The duration of the drilling operation would last two weeks.

Table 1 displays the Design Criteria that will be included as part of the Plan ofOperations in order to limit impacts to natural resources on the project site.

'Q'B~i1. Crews will be trained by the Forest Service to avoid disturbing any native wildlife

and vegetation within the project area and along roads.2. Ground and vegetation disturbance will be minimized to the greatest extent

possible. Previously-disturbed areas will be favored for storage, staging, andlaydown areas.

3. Equipment and vehicles working off-road will not be moved when soils arewet/muddy, in order to limit impacts to vegetation (including TESW plants) andreduce erosion potential.

4. Project personnel shall remain on existing trails to the greatest extent possible.Where sensitive habitats (e.g., rare plant habitat, riparian zones, etc.) occur, anaccess trail will be flagged in for crews to follow on-foot in order to limit impacts.

5. All helicopter flight paths and landings will be delineated prior to implementationin coordination with the District Wildlife Biologist to ensure protection of rarespecieslhabitats. Helicopter flight paths and altitudes for accessing the projectarea will be coordinated with the biologist to avoid low-level flights over thesensitive wildlife areas (e.g., spotted owl nest stands, bald eagle perch sites,riparian habitat, etc.). Low-level flights are considered anything under 345 feet(105 meters) above the treetops (spotted owls, bald eagles) or riparian vegetation(willow flycatcher habitat). For spotted owls: Low-level flights over nest standswill be avoided year-round. Low-level daytime flights over Protected ActivityCenters (PACs) will be avoided during nesting season (February 1 - August 15) ifthe territory is occupied. Low-level daytime flights over HRCs may be permittedduring occupancy. Where avoidance is not possible, the project manager willcoordinate with the biologist prior to implementation.

6. Pursuant to FSM Section 2081.03 guidelines for weed control, all e ui ment,

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vehicles, and tools (e.g., augers, chain saws, hand clippers, pruners, etc.) will bewashed with a high pressure water system before entering the project area andbefore moving to new project sites.

7. Work crews will be provided training/identification information on rare animalswithin project areas and provided direction for what to do if those species areencountered (including notification of a Forest Service biologist).

8. Crews will be instructed to avoid moving or disturbing downed logs and rockoutcrops in order to protect small animal habitats.

9. Feeding of all wildlife is prohibited.10. Collecting of any wildlife or plants is prohibited.11. Trash and food shall be contained in closed containers and removed daily to

reduce attractiveness to opportunistic wildlife species. All trash will be removedfrom the job site daily and all construction debris will be removed at the end ofthe job.

12. Observations of any sensitive species or their diagnostic signs during projectactivities will be conveyed to the project field supervisor the day observed. Thefield supervisor will convey this information to the Forest Service.

13. Care will be exercised when driving and parking vehicles where catalyticconverters can ignite dry vegetation. All vehicles will carry a fire extinguisherand shovel. Personnel will not smoke or extinguish cigarettes except in a vehicleor where there is an area cleared to bare mineral soil. Current Forest Service firerestrictions should be followed.

14. All vegetation-disturbing activities (removal and trampling) shall be conducted ina manner that avoids or minimizes the potential for disturbance of TES species.The area of disturbance shall be confined to the smallest area possible and allspecial habitat features of sensitive animals (e.g., snags, burrows, etc.) should beavoided to the greatest extent feasible. During project activities, ingress/egresspaths, staging areas, stockpiling, equipment storage sites, lay down areas,positioning of equipment, and any other potential habitat-disturbing activitiesshall be limited, to the greatest extent possible, to areas of permanent disturbancewithin the project area. Where this is not possible, previously-disturbed areas orareas with the lowest quality habitat will be used.

15. Refueling of equipment and storage of fuel and other hazardous materials will notoccur within 100 meters of Riparian Conservation Areas (perennial and seasonalstreams, seeps, springs, and meadows).

16. Crews will cover all holes and trenches at the end of every day in order thatwildlife will not become trapped. Where it is not possible to cover a trench orhole, it will be equipped with an "escape ramp" (e.g., piece oflumber, stick, etc.)that allows animals to climb out. Holes and trenches will be checked eachmorning and any animals that have not escaped will be removed immediately.

17. A qualified botanist will survey the project area prior to the start of work; anyspecial status plants that are detected will be flagged for avoidance. Where plantoccurrences are flagged for avoidance, a botanical monitor will be on-site duringportions of implementation when there is risk of unauthorized impact.

18. Nighttime work (and use of artificial lighting) will not be permitted.19. If bird nests (including ground nests) are found during project implementation,

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activities will cease in the immediate area until the Forest Service biologist isnotified. The biologist will determine whether activities may resume or whetherto stop activities until young have fledged and the nest is vacant (as determined bythe project biologist).

20. If grading or improvement of Forest System roads 3N02 or 3N16 is necessary,rare plant habitats would be flagged and monitored to ensure that impacts adjacentto habitat are avoided.

21. To prevent disturbance of bats, personnel associated with the drilling operationwould not enter (or disturb in any other way) the Mohawk mine or any other aditsin the project vicinity.

22. Where the drill rig and/or support vehicles leave ruts or other soil surfacedisturbance beyond expected shallow tracks, displaced soils will be raked and/orshoveled to smooth the surface to the extent practical.

23. To reduce the likelihood of post-project motorized use of the unauthorized routesand project site in general, MCC will install a gate at a point identified by theForest Service near the terminus afForest Road 3N02.

24. Watershed Best Management practices would be observed.25. Helicopter Operator has to have proof of financial assurance to cover damages for

any unforeseen accidents within National Forest System land (Minimum$1,000,000).

26. Before airlifting the drill rig, MCC should contact the federal communicationcenter and the Forest Safety Office to comply with safety issues. MCC or thecontractor may have to submit a flight plan in advance to the Forest AviationOfficer and the District Botanist and Biologist.

A Plan of Operation (POO) was submitted by MCC on September 29,2009 for approvalby the District Ranger. The duration of this drilling phase may last a fortnight.

Drilling operation is expected to start on November 12,2009. The drill crew is prohibitedto enter any underground mine openings found in the vicinity.

Purpose and Need

The proposed drill sites are on un-appropriated NFS land open to mineral entry andlocation under the General Mining Law of 1872 as amended. MCC owns severalunpatented mining claims and the proposed drilling will be commencing on Cushenbury26 placer mining claim. The drilling is proposed to enhance additional high grade orereserves for future mining by MCC.

Public InvolvementThis proposal was listed in the Schedule of Proposed Actions on September 28, 2009.The proposal was neither provided to the public and other agencies for comment norpublished as a legal notice in the newspaper. My decision not to request public commentsor publish a legal notice was based in not receiving any comments [rum lhe public during

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the first phase of drilling. My staff completed internal scoping and prepared the requiredspecialist reports.

Reasons For Categorically Excluding the Proposed Action

This action is categorically excluded from documentation in an environmental impactstatement because the proposed action falls in the category that may be excluded fromdocumentation in an Environmental Assessment in FSH 1909.15,30(8)(a), short termmineral exploration activities for one year or less:

This is a low impact project that will not have a significant effect on the environment.There are no extraordinary circumstances associated with the project. It was alsodetermined through environmental analysis and an informal consultation with the U.S.Fish and Wildlife Service that this determination is based on absence, among others, ofadverse effects on the following resource conditions:

a. Federally listed threatened or endangered (T&E) species or designated criticalhabitat, species proposed for Federal listing or proposed critical habitat, or ForestService sensitive species: After an informal consultation with the U.S. FishWildlife Service it was determined that Cushenbury oxytheca and Cushenburybuckwheat and their designated critical habitats are not likely to be adverselyaffected by this project.'

b. Flood plains, wetlands, or municipal watersheds: None are present.c. Congressionally designated areas, such as wilderness, wilderness study areas, or

National Recreation Areas: None are present.d. Inventoried road less areas: None are present.e. Research Natural Areas: None are present.f. American Indian religious or cultural sites, and archeological sites, or historical

properties or areas: A report states "No Historic Properties Present on Area ofPotential Effect.,,2 The archeological and historic resources identified in theproject area will not be affected by the project.

Findings Required by Other Laws

This decision is consistent with the San Bernardino National Forest Management Plan(2005), the Endangered Species Act of 1973, the General Mining Act of 1872, the ForestService Minerals Program Policy (1990) and the State Historic Preservation Act, asrequired by the National Forest Management Act of 1976.

The project was designated in conformance with Forest Plan direction to provide a'balanced and sustainable flow of goods and services for a growing diverse populationwhile ensuring long term ecosystem health, biological diversity and species recovery'?

I Informal consultation (USFWS), October 2009 and USFWS concurrence letter dated 11110/09.2Section 106 Certification, October 14,2009.3 SBNF Land Management Plan (2005) Part 1, page 6

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Implementation Date

This project may be implemented immediately after approval and after a requiredreclamation bond is posted. Proof of financial assurance is also required from thecontractor air lifting the drill rig and a flight plan is posted with the Forest AviationOfficer.

Administrative Review or Appeal opportunities

This project is not subject to appeal pursuant to Forest Service regulations at 36CFR.12(f), nor is it subject to appeal under the October 19,2005 order issued by the U.S.District Court for the Eastern District of California in case No. crv F-03-6386JKS.

Contact Person

For additional information concerning this decision or the Forest Service appeal process,contact Raj Daniel, Mineral Administrator or Tom Hall, Environmental Planner, SanBernardino National Forest, 602 S. Tippecanoe Avenue, San Bernardino, CA 92408.Phone numbers: 909-382-2898 or 909-382-2905. E-mail: rdaniel(~fs.fed.us orthall(a)fs .fed .us

~~---------------- -------~-------- -Scott Tangenberg~rStrict ger

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