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U.S. Gypsum Proposes Acquisition of Lands and Mineral Rights for New Mine in Michigan

Published: July 16, 2018 |

[Click image to enlarge]

Nearly a square mile of state-owned land south of Tawas City in Iosco County could be mined for construction materials if the Michigan Department of Natural Resources sells it and the mineral rights to United States Gypsum Co.

A public meeting to discuss USG’s proposal to acquire the land and mineral rights, and the subsequent recommendation on the proposal from the DNR, is slated for Tuesday, July 17. The meeting is scheduled to take place from 5:30 to 7:30 p.m. at Alabaster Township Hall, 1716 US-23 in Tawas City.

Gypsum, a mineral deposit composed of calcium, sulfur, oxygen and water, is abundant in the area, according to the DNR. Once refined, it is used to make products such as plaster and drywall.

If approved, company officials say the acquisition could extend USG’s operations for up to 75 more years. In addition, the proceeds of the sale would allow the state to acquire the 2,140-acre Storey Lake property located in Otsego and Cheboygan counties, a longtime priority of the DNR.

Kerry Wieber, forest land administrator, said the land USG aims to buy is adjacent to its existing gypsum mine.

“It’s not well utilized by the public, but it is available for public use, and it’s managed for the timber resource,” Wieber said, noting that the property does not have high timber or habitat value. “It’s got a lot of vegetation, but it’s pretty low and wet.”

The vast majority of the property is lowland shrub, she said. There are some natural pines and some aspen.

The value of the property is unknown, as the appraisal process is ongoing, Wieber said. That information will be made available to the public when the appraisal process is complete.

USG Corp. is a leading manufacturer of building supplies and solutions across North America, with 38 plants and several offices in the United States, according to its website. It was founded in 1902 when about 20 gypsum rock and plaster manufacturing companies merged to consolidate their resources and form the United States Gypsum Co., which ultimately became USG Corp.

Alabaster Township Supervisor Stephanie Wentworth said USG is hugely important to the community of nearly 500 people, in terms of tax revenue and employment.

USG is the township’s “largest employer by far” with approximately 28 employees, she said. The taxes the company pays and will continue to pay, she said, “will support some pretty critical public needs,” such as schools, safety and infrastructure.

Company officials could not immediately be reached for comment regarding the proposal or to confirm the number of employees USG has in Alabaster Township and in total.

During Tuesday’s meeting, DNR staff members will provide an overview of the proposal submitted by USG, which includes a total of 580 acres of state-owned land and mineral rights, along with an additional 140 acres of just mineral rights underlying land currently owned by the company, according to a DNR news release. The meeting also includes a summary of the process by which the DNR reviews such proposals, including how both land and mineral values are determined, as well as information on the recommendation that has been made to DNR Director Keith Creagh.

Members of the public have the opportunity to ask questions and to provide both written and oral comments on the proposal and the recommendation after the presentation. Public comments can also be submitted via email to .(JavaScript must be enabled to view this email address). Comments will be accepted until a final decision on the proposal is made.

Creagh will take those comments into consideration as he deliberates on his decision on the proposal. He is expected to make a final decision on the proposal at the Sept. 13 Natural Resources Commission meeting. 

“Public involvement and the feedback that the DNR receives throughout the process are critical to ensuring a thorough review of the proposal,” Bill O’Neill, DNR natural resources deputy director, said in a statement.

Over the past several months, the DNR has received about 25 emails regarding the proposal, Wieber said. The tenor of the comments has been mixed, with some in support of the sale and others opposing the sale of that or any state-owned land. 

The DNR staff recommendation Creagh will consider includes the approval of the proposed land and mineral acquisition by USG, with the proceeds of the sale being directed toward the acquisition of the 2,140-acre Storey Lake property located in Otsego and Cheboygan counties, the release states.

Strategically located as the link between the Pigeon River Country State Forest and state forest land in the Gaylord Forest Management Unit, acquiring the Storey Lake property has long been a priority for the DNR. In addition to its ideal location, the Storey Lake property includes more than a mile of Stewart Creek, a brook trout stream tributary of the Sturgeon River; the entirety of the 8-acre Storey Lake; abundant wildlife habitat, including location in the core of Michigan’s elk range; numerous public recreational opportunities, including direct access to the North Central State Trail along the western boundary of the property; and the opportunity to sustainably manage the forest.

In December 2017 the Michigan Natural Resources Trust Fund awarded the DNR 25 percent of the required funding for the project. The proceeds from the USG proposal would provide the remainder of the necessary funding.

Learn more about the proposal HERE.

Source: Mlive.com


To stop by USG’s website, CLICK HERE


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