The Ninth U.S. Circuit Court of Appeals late Thursday, June 4, lifted a stay on preparatory expansion work at the J.R. Simplot Co.’s Smoky Canyon Mine, which company officials said would have forced the layoff of 114 workers at Simplot’s Pocatello fertilizer plant and the phosphate mine.
The federal appellate court had reimposed the temporary stay in late May (GM June 1, p. 1) after the Greater Yellowstone Coalition filed for it. On Thursday, the court cited the economic harm continuing the stay would have on Eastern Idaho: “Here, the record, as supplemented on appeal, shows significant interim economic harm and job loss. The supplemental record also indicates that if the coalition’s request is granted, 104 employees – 78 at the Don Plant and 36 at the mine – will be laid off within the month, many within the week.”
Responding to the ruling, Simplot spokesman David Cuoio stated: “We are delighted the stay has been lifted. We’re also relieved that it will not be necessary to proceed with the layoffs that had been planned because of the court-imposed delay in our preparatory work to expand Smoky Canyon mine. We plan to continue with the expansion at Smoky Canyon immediately so we can get on with the business of providing crop nutrients that are helping to feed a hungry world. We remain committed to conducting responsible, environmentally sound mining practices and meeting the needs of our many grower customers.”
The 9th Circuit Court also noted that Simplot has cleared much of the land. It referred to a previous ruling by U.S. Magistrate Mikel Williams, who concluded that the Caribou-Targhee National Forest land is not pristine.
“Simplot does not, as Appellants claim, blame this court,” Simplot attorney Albert Barker stated in appealing the earlier stay. “Instead, the blame for these layoffs lies with Appellants and their interminable legal maneuvers designed to delay and ultimately prohibit mining in this area.”
Garrett Lofto, president of Simplot’s AgriBusiness Group, told Green Markets that 36 workers at the Smoky Canyon Mine would have been furloughed on Saturday, June 6, while 78 employees at Simplot’s Don Plant would have been idled on Saturday, July 11, including both salaried and hourly positions, based on seniority and need. In addition, nearly 200 outside contracting jobs would have been adversely affected. Plus, 22 Simplot jobs opened by attrition would not have been filled, Lofto said.
“This is not the result of a soft fertilizer market whatsoever. That is fact. We’re operating our Rock Springs (Wyoming) facility at capacity. Our intention is to operate Pocatello as well. The reason we are doing this is simply because of this stay,” Lofto said, noting Simplot has highly-skilled work forces at Pocatello and Smoky Canyon. “Losing quality employees is not something we want to do.”
Lofto said it is cost prohibitive to consider getting phosphate from other sources as the Greater Yellowstone Coalition has advocated, noting there is no compatible rail, slurry, or drying capacity at other sites.
Because only 11 months of ore remain at the Smoky Canyon Mine, Simplot had to protect its dwindling source and reduce production, Lofto added, noting the Pocatello plant has been operating since December 1944. The company has spent “many millions of dollars” to comply with federal and state environmental standards over the years.
“We believe, yes, it has been a pillar in the community. Our intention is to continue being there. That area is very important to us. We are not trying at all whatsoever to back away from that area. We are trying to get more involved and more committed for decades to come,” said Lofto.
In an affidavit filed June 2 in support of Simplot, Steve Landon, president of United Steelworkers Local 632 and a maintenance rebuild specialist at the Don Plant for nearly 40 years, noted the layoff set to occur by July 10 represented about 25 percent of the plant’s work force. About 60 of the 78 targeted employees are union members.
Landon told Green Markets that Simplot’s layoff announcement came as a shock to all employees who have taken on additional work responsibilities in recent months to help the plant weather the economic downturn. “It’s basically going to affect every department and classification across the board,” he said.
In an affidavit, Martin Hunt, Simplot vice president of mining and manufacturing, noted it has been a year since the U.S. Forest Service and Bureau of Land Management approved expanding the Smoky Canyon Mine. If those records of decision are not upheld by the courts and mining is prohibited, “more layoffs will be required, and the layoffs will become long-term or permanent,” Hunt stated.
An economic impact study conducted by Idaho Economics, a Boise research firm, concluded if the plant and mine were to close, that would have a combined economic impact of $131 million annually on 11 counties in Eastern Idaho and Lincoln County, Wyo. In addition to jeopardizing 560 jobs at both sites, another 1,066 jobs and $6.3 million in Idaho tax revenue could be lost.
Pocatello Mayor Roger Chase, who worked at Simplot’s sulfuric acid plants for 21 years, said it appears special interest groups are trying to shut down the mine in the courts after they failed to show it has violated environmental regulations. “It’s certainly a disappointment,” he said referring to the potential layoffs. “It’s on the verge of almost ridiculous to me,” Chase told Green Markets. “It worries me. $50,000 jobs are hard to come by.”