Ballot Title Setting Board

Proposed Initiative "1999-2000 - #215(A)(1) "

The title as designated and fixed by the Board is as fo1lows:

AN AMENDMENT TO THE CONSTITUTION OF COLORADO CONCERNING PROHIBITION OF OPEN MINING FOR GOLD AND SILVER WHEN ORE-PROCESSING. METHODS THAT UTILIZE CYANIDE TO LEACH THE GOLD AND SILVER FROM ORE ARE USED, AND, IN CONNECTION THEREWITH, PERMITTING MINES THAT ARE OPERATING ON OR BEFORE ELECTION DAY 2000, TO CONTINUE OPERATING UNDER EXISTING PERMITS, BUT PROHIBIT1NG THE MODIFICATION OF SUCH PERMITS TO ALLOW MINING OPERATIONS TO BE EXPANDED.

The ballot title and submission clause as designated and fixed by the Board is as follows:

SHALL THERE BE AN AMENDMENT TO THE CONSTITUTION OF COLORADO CONCERNING A PROHIBITION OF OPEN MINING FOR GOLD AND SILVER WREN ORE PROCESSING METHODS THAT UTILIZE CYANIDE TO LEACH THE GOLD AND SLIVER FROM ORE ARE USED, AND, IN CONNECTION THEREWITH, PERMITTING MINES THAT ARE OPEN ON OR BEFORE ELECTION DAY 2000, TO CONTINUE OPERATING UNDER EXISTING PERMITS, BUT PROHIBITING THE MODIFICATION OF SUCH PERMITS TO ALLOW MINING OPERATIONS TO BE EXPANDED?

The summary prepared by the Board is as follows:

This measure enacts an amendment to the Colorado Constitution prohibiting open mining, including open-cut and open-pit mining, for gold and silver using heap or vat leaching if the mining operation uses cyanide ore processing. In addition, the measure allows any mining operations that are operating on election day, 2000, to continue operating under existing permits, but the measure prohibits modifying any existing permit to expand mining operations.

It is believed that the only major existing mining operation that would be affected by this measure is located near Cripple Creek, in Teller County. That mining operation would eventually shut down after deposits covered by its existing permits are exhausted as a result of this measure Closure of the mine could eliminate a total of 644 jobs in the area, including 288 jobs at the mine. When the mine is closed, local governments in the region would no longer collect about $1.3 million annually in revenue that is currently collected from property taxes, sales taxes, and severance taxes.

In addition, state government would no longer collect about $224,000 annually in severance tax revenue and an unknown amount of other revenues from individual and corporate income taxes, state sales taxes, state use taxes, and permitting fees. The loss of jobs could result in increased cash disbursements from the State's unemployment insurance trust fund. It is estimated that the State Division of Minerals and Geology would incur approximately $8,000 in costs from implementing and administering the measure.

Hearing May 17 2000:

Sing1e subject approved; staff draft amended; titles and summary set.

Hearing adjourned 6.41 p. m.

Withdrawn by proponent Colin Henderson May 25, 2000.

1. Prohibiting Certain Open Pit Mining