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MINING NEWS: Alaska seeks control of state rights of way Lawsuit against Interior could clear way for year-round road to Chandalar gold prospects; new exploration and development activity Rose Ragsdale Petroleum News Contributing Writer
By suing the U.S. Department of Interior for quiet title to the state’s rights of way for the Coldfoot-Chandalar Lake, Caro-to-Coldfoot and Wiseman-to-Chandalar trails, the state of Alaska may breathe new life into a century-old gold mining region.
The lawsuit, filed April 11 in federal district court in Washington, D.C., also named Alaska Northwest Natural Gas Transportation Co., Yukon Pacific Co., Petro Star Inc., Doyon Ltd. and several other non-federal stakeholders with claims to land adjoining or surrounding the trails as defendants.
Gov. Frank Murkowski announced the suit after traveling 250 miles north of Fairbanks April 10 to traverse the Coldfoot to Chandalar Lake Trail in the Brooks Mountain Range by dogsled and snow machine. He said the suit aims to open access to more than 1 million acres of state lands and preserve statehood rights.
“As far back as 1906 this trail was used to access gold in the Chandalar area,” Murkowski said following his visit.
The trail is one of many access routes commonly referred to as Revised Statute 2477 (RS 2477) rights of way. They were granted by the United States to encourage miners and settlers to move and expand outward into our western states and Alaska. The statute grants a right of way over federal land that is not otherwise reserved for public use. It was repealed in 1976, but existing rights of way created under the measure were preserved under federal law.
In addition to the 65-mile long Coldfoot-Chandalar Trail (designated as RST 9 in the state’s land records), Alaska’s suit also seeks quiet title to the 85-mile long Caro-Coldfoot (RST 262) and the 60-mile Wiseman to Chandalar Trail (RST 254), which was created by prospectors and miners seeking access into the central Brooks Range in the 1930s.
The routes were selected from more than 650 trails the state has identified as historic routes that should have unrestricted public rights of way for a number of reasons. These include:
• Well documented historical usage;
• Current use for mining, hunting, subsistence and recreation purposes;
• Access to over a million acres of state land. Interior only recognizes modern highways An Interior Department spokesman declined to comment on the lawsuit April 19, saying the department’s response would come in court.
In 1993, the Interior Department adopted a policy of refusing to act on requests for recognition of RS 2477s. The department also proposed restrictive regulations for determining the validity of RS 2477 claims, requiring proof of mechanized construction of a modern highway. Congress prohibited Interior from adopting regulations affecting RS 2477s without specific authorization by Congress, and little progress to resolve RS 2477 issues with the United States has been made in the past 10 years.
This is the second such action filed against the United States by Alaska. In March 1997, the state filed a quiet title action against the United States and 15 federal mining claimants, claiming the Harrison Creek-Portage Creek trail in the Steese National Conservation Area north of Fairbanks.
In 1998, the Alaska Legislature enacted AS 19.30.400-19.30.420, which claimed all rights of way acquired under RS 2477, identified 602 routes, and required DNR to annually report on rights of way that are not listed in the statute.
In November 2000, the state and the United States settled the case with a consent decree quieting title in the state to a 12-mile-long, 60-foot-wide right of way. Default judgments were obtained against the private defendants.
Given the vast, remote and undeveloped nature of Alaska, not to mention the fact that snow covers the ground much of the year, the state contends that RS 2477 trails serve as roads in the state. In fact, most of the roads in Alaska started out as a trails established by miners or mushers, records show. Action could jumpstart gold mining in area Currently, miners can use the Coldfoot to Chandalar Lake Trail, but they must obtain a permit to cross BLM lands. The state argues that the permit requirement is in direct conflict with the Alaska National Interest Lands Conservation Act, which designated 106 million acres of Alaska land as federal conservation units.
Thousands of small-time recreational miners as well as hunters and subsistence users have used the trails in recent years, according to Steve Borell, executive director of the Alaska Miners Association.
But it is small mining companies like Little Squaw Mining Co. of Spokane, Wash., who potentially could gain the most from a change in designation, he said.
“The price of gold has been low until recently and there has not been extensive mining up there for a long time,” Borell said. “Part of the problem is the routes are not well-maintained.”
But now that gold prices have climbed above $400 an ounce, small players such as Little Squaw are preparing to resume exploration and development activity in the area, Borell said. More than 84,000 ounces of gold has been produced in the Chandalar District.
Thus, Alaska’s move to resolve title and right-of-way issues for road access into Chandalar could clear the way for possible construction of an all-weather road to Little Squaw’s 15-square-mile property in the historic gold mining district, Dick Walters, the company’s president, said April 18.
“If the state prevails, road access to our property would have a dramatic positive impact on the development of any gold deposits we may find in our claims,” Walters said in a statement.
“We consider Alaska to be the most favorable jurisdiction in the United States for the development of mining projects, and this action by Gov. Murkowski and the state of Alaska demonstrates the governor’s commitment to responsible resource development and creation of new jobs for Alaskans,” he added.
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