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RES 1989-11 MONTANA TUNNELS IMPACT MITIGATION J �r RESOLUTION OF THE COUNTY COMMISSIONERS JEFFERSON COUNTY BOULDER, MONTANA WHEREAS, Centennial Minerals, Inc. proposes to develop and operate a gold mining and milling facility near Jefferson City, Montana, and WHEREAS, Centennial Minerals, Inc. has prepared the Montana Tunnels Project Hard Rock Impact Mitigation Plan for Jefferson County, Montana pursuant to Sections 90 -6 -301 et seq., MCA, and WHEREAS, Jefferson County is an affected unit of local government under the Hard Rock Impact Mitigation Plan, and WHEREAS, Jefferson County has reviewed the provisions of the Impact Plan and proposed amendments to the content thereof, THEREFORE BE IT RESOLVED, the Jefferson County Commission does hereby approve the Montana Tunnels Project Hard Rock Impact Mitigation Plan as amended and specified below. JEFFERSON COUNTY GOVERNMENT Definitions Affected Jurisdiction means Jefferson County, the Town of Boulder, Jefferson High School District #1, Clancy Elementary School District 01, Boulder Elementary School District #7, Montana School District 027, Jefferson County Solid Waste District, Montana City Rural Fire District, and Boulder Valley Rural Fire District. . z Centennial Minerals means Centennial Minerals, Ltd., Vancouver, British Columbia; Centennial Minerals, Inc., Helena, Montana, U.S. Minerals Exploration Company (USMX), Denver, Colorado; the owners and developers of the Montana Tunnels Project, or successor owners of the project. Impact Assistance means all monetary and non - monetary commitments of Centennial Minerals as contained in Section 4 of the Montana Tunnels Project Hard Rock Mine Impact Mitigation Plan for Jefferson County, Montana as amended and approved by affected jurisdictions per the provisions of 90 -6-301 et seq., MCA. Impact Assistance Contingency_Fund means a fund of $10,000.00 established by Centennial Minerals under the control of the Jefferson County Commission as provided in the Plan. The fund shall be used to provide additional impact assistance payments to address problems or pay costs caused by in- migrant mine employees and their families not anticipated by the Plan at the time it was approved. Eligible applicants for funds include all affected jurisdictions of Jefferson County including the several departments of county government, the Jefferson City Volunteer Fire Department, Clancv Quick Response Unit, Clancy Volunteer Fire Department, and Boulder Volunteer Ambulance. Impact Period means the time period commencing sixty days prior to the start of construction at the Montana Tunnels Project site and continuing until the Montana Tunnels Project has paid its first property tax assessment following the start of commercial mining operations. In- migrant Mine Employee means any employee of Centennial I'•linerals, its contractors, and subcontractors who did not reside in the affected jurisdiction for a six -month period prior to being hired by Centennial Minerals. In- migrant Mine Employee Family means the spouse, children, wards, relatives and other unrelated individuals who continually reside with an in- migrant mine employee and thereby constitute a single household. 3 In- migrant Mine Employee Student means the child or ward of a person defined as in- migrant mine employee. Montana Tunnels Property (and /or Project) means all real and personal property owned by Centennial Minerals in conjunction with the development, operation, and support of a proposed metallic mineral mine and processing facility in Jefferson County, Montana. Plan means the Montana Tunnels Project Hard Rock Mine Impact Mitigation Plan for Jefferson County. Montana, as amended and approved per 90 -6 -301 et seq., MCA. Principles 1. Centennial Minerals shall provide impact assistance to affected jurisdictions of Jefferson County for the increased costs of providing governmental services incurred during the impact period and created by in- migrant mine employees and their families. 2. Unless otherwise specified in the Plan, all monetary payments of impact assistance made by Centennial Minerals shall be considered tax prepayments for which Centennial Minerals is entitled to claim a tax credit from tax assessments subsequently levied against the Montana Tunnels Property. If, after seven years from the start of commercial mining operations, Centennial Minerals does not own property in an affected ,jurisdiction against which tax credits may be claimed, all prior impact assistance payments will be considered donations. County Services Centennial Minerals' plan for mitigating the potential adverse impact of the Montana Tunnels Project upon the operation of the government of Jefferson County, Montana, includes the following commitments: 4 Impact Assistance Contingency Fund During the impact period, Centennial Minerals will establish a $10,000 contingency fund to address problems or pay costs caused by in- migrant mine employees and their families not anticipated by the Plan at the time it was approved. The Jefferson County Commission shall administer the fund and make such disbursements as necessary to eligible applicants. To process and judge the merit of applications requesting assistance from the fund, the Commission shall adopt application procedures and evaluation criteria consistent with the definitions and principles of the Plan. Centennial Minerals will make payment(s) for the fund as requested by the Commission. The fund will be maintained in the Jefferson County Treasury until disbursed to a qualifying applicant. In the event the fund is depleted, it may be replenished by the mutual consent of Jefferson County and Centennial Minerals. County Law Enforcement Services 1. Centennial will provide Jefferson County with $18,000 for the purchase of new communications equipment to upgrade the sheriff's department's communication system. Per a priority listing of equipment needs provided by the sheriff, the equipment to be purchased and its estimated cost is listed below. - VHF mobile relay (located in Saddle Mountain area) $ 4,300 - Two - channel, two - receiver control station at Boulder radio site 4,400 - Three VHF mobile radios for patrol vehicles at $1,600 each 4,800 - Three VHF portable radios for law enforcement officers at $1,500 each 4, 500 Total $16,000 Payment will be made in a lump sum within 30 days of Centennial Minerals commencing construction of the Montana Tunnels Project or, as subsequently requested by the county. The funds identified above will be a one -time donation. 2. As requested by the County Sheriff, Centennial Minerals will augment the Jefferson County Sheriff's Reserve by committing the company's security staff as special duty deputies for use by the Sheriff's Department on an as needed basis. This action presupposes that such staff only would be used for functions such as search and rescue or general peacekeeping during special events (i.e., rodeos) when the department needs additional manpower on a 5 limited basis. While serving as special duty deputies, Centennial employees will be under the direct supervision of the County Sheriff and are the agents of Jefferson County, not of Centennial Minerals. County Road Construction and Maintenance 1. Centennial Minerals will petition Jefferson County to abandon the existing county road near Wickes north of the Wood Chute Creek turnoff to the Montana Tunnels Project site. The county will initiate abandonment proceedings as provided by law upon receipt of the petition. The road will continue in public use until Centennial Minerals receives a mine operating permit from the Montana Department of State Lands. 2.. Centennial Minerals will pay the full cost of improving the existing county road connecting Jefferson City, Corbin, and Wickes. Such improvements include one -way in /out access and paving at Jefferson City, constructing a bypass around Corbin, and generally straightening and leveling the road between Jefferson City and the Centennial Ranch. The estimated cost of such improvements is $231,000 as specified below: - Developing one -way, in /out access and paving at Jefferson City $ 95,000 - Constructing bypass around Corbin 75,000 - Straightening /leveling roadway between Jefferson City and Centennial Ranch 61,000 Total $231,000 Fifty thousand dollars ($50,000) of the total amount spent by Centennial Minerals for improvements to the existing Jefferson City - Corbin - Wickes county road will be a tax prepayment for which the company is entitled to claim a tax credit at the conclusion of the impact period. All funds expended in excess of $50,000 for improving the existing county road will be considered a grant or donation to Jefferson County. 3. Jefferson County will continue to maintain the existing county road connecting Jefferson City, Corbin, and Wickes. Jefferson County further agrees to provide a level of road maintenance sufficient to keep the road open and serviceable to existing residents of the area and all mine - related traffic. During the impact period, Centennial Minerals will pay Jefferson County an amount equal to $1,250 per month ($15,000 per annum) for road maintenance services. Such payments will be made quarterly in Z 6 advance of service delivery. All payments for road maintenance will be tax prepayments for which Centennial will be entitled to claim a tax credit at the conclusion of the impact period. 4. Tax prepayments for road construction ($50,000) and road maintenance will be summed to determine the total amount of tax credit due Centennial Minerals. Tax credits will be limited to $10,000 per year, or 15 percent of the total prepayment, whichever is greater. Centennial Minerals will be eligible to receive tax credits during the second fiscal year of commercial mining operations. Jefferson County shall specify which fund or funds in the county treasury the tax credits shall be charged against. 5. Centennial Minerals will build a new road across its property from the Centennial Ranch to the Montana Tunnels Project site. The road will be for the private use of project employees, contractors, and vendors doing business with Centennial Minerals or its contractors. The road also will be open to governmental personnel in the conduct of official business, and to private landowners with property on top of Alta Mountain or adjacent the Montana Tunnels' Project site. Centennial Minerals will construct and maintain the proposed new road until the Montana Tunnels property is abandoned or as otherwise negotiated with Jefferson County. Centennial Minerals will bear all costs for constructing and maintaining the proposed new road. No tax prepayment will be made or tax credit subsequently offered for this section of road. 6. When Centennial Minerals closes and abandons the Montana Tunnels Project, the company will grant Jefferson County title to the project access road described in Item #5, above. 7. Public access to the upper Clancy Creek area, Gregory Mine area, or top of Alta Mountain will be via the Clancy Creek Road or the road from Corbin under the railroad trestle. The general public will not use Centennial's private road to the project site, except by company permission., z nL r CoAnissioner I te C i ioner ?..� .:� ry ;� `� "� � � �0 h � � U�