companies and oil companies, and, in most cases, they have dealt fairly with me and completed these contracts as agreed. I know of no instance where any corporation has tied up large areas of land and withheld it from development. I have had many disagreements with oil companies because most of them are enmeshed in their own bureaucracy almost as bad as the Government. Also, I have had differences of opinion with them on how to explore properties, et cetera. I know of many instances where a major oil corporation has proven 500,000 pounds of ore or more and has returned the claims back to former owners because they did not meet the economic criteria to make a viable mining or milling operation. I am of the opinion that if the oil companies had not gotten into the mineral exploration, mining, and milling business, uranium would be much scarcer than it is today. I am of the opinion that mining companies, oil companies, and utility companies should all be looking for uranium. Competition never hurt anyone. Due to the unique geological occurrence of the roll front uranium ore deposits it necessitates the locating of large contiguous groups of claims because the ore body may be more than 10 miles away from the surface outcrop. A map is available for your perusal. Many times in the past I have staked large groups of claims and drilled them and dropped them. The biggest obstacle to more energy exploration has been the frustration that follows from the unnecessary environmental impact statements that have caused great delay and I can give you some good examples if you are interested. I would like to thank you for the opportunity to discuss the problems from the prospectors' point of view. Thank you. Mr. Moss. Mr. Atkisson? Mr. ATKISSON. Mr. Schauss, you are chairman of the board of the Fremont Energy Corp.; is that correct? Mr. SCHAUSs. Yes Mr. ATKISSON. The corporation holds some 18,000 uranium lode mining claims in the west Red Desert of Wyoming; is that correct? Mr. SCHAUSS. Yes. Mr. ATKISSON. Give or take a few? Mr. SCHAUSs. Yes. Mr. ATKISSON. Some 18,000 claims at approximately 20 acres each-that is, about 360,000 acres, is it not? Mr. SCHAUSS. Yes; they were put together for several ownerships. Mr. ATKISSON. They are, in fact, the 18,000 claims that Dr. Galloway referred to earlier which have been optioned under a recent agreement to the Washington Public Power Supply System; is that correct? Mr. SCHAUSS. Yes. Mr. ATKISSON. Of that 18,000 claims, about half were at one time held by you personally; is that correct? Mr. SCHAUSs. That is correct Mr. ATKISSON. When did you begin staking those? That is about 9,000 claims? Mr. SCHAUSS. The job took well over a year. I had several crews over there in the trailer house. I had three crews, in fact, in a mobile trailer house, and a half a dozen pickups and drilling equipment and supporting equipment. Mr. ATKISSON. I asked when you started. Mr. SCHAUSS. I would have to look at the location notice. I think it was close to 1969 and 1968. Mr. ATKISSON. I want to make the record clear. You said you had two or three crews out there; is that correct? Mr. SCHAUSS. Two and sometimes three, and sometimes four when they sober up. Mr. ATKISSON. Half a dozen rigs? Mr. SCHAUSs. Two rigs. Mr. ATKISSON. Not half a dozen rigs? Mr. SCHAUSS. Yes. Mr. ATKISSON. I take it a rig would be used for validation drilling and claim-staking process? Mr. SCHAUSS. Yes. Mr. ATKISSON. We heard a great deal yesterday about how that is done. When you stake a claim and after you stake it you have to do a certain amount of drilling under the law; is that not correct? Mr. SCHAUSs. That is correct. Mr. ATKISSON. It is also required by the law, is it not, that some months after one has properly staked his claim that a certain amount of assessment work has to be done on an annual basis; is that correct? Mr. SCHAUSS. It is generally after the second year. Mr. ATKISSON. About 23 months; is that correct? Mr. SCHAUSss. Yes. Mr. ATKISSON. It is $100 a year; is it not? Mr. SCHAUSS. That all depends on what theory you hold of mining claims. Mr. ATKISSON. Under the Federal Mining Act of 1872 it is $100 a year; is it not? Mr. SCHAUSS. Not necessarily, no. Mr. ATKISSON. For the purposes of holding the claim as against possible overstakers; is that correct? Mr. SCHAUSS. That is holding the claims against possible overstakers, but I would like to clarify that again, if possible. Mr. ATKISSON. To hold a claim against overstakers under Federal law, you have to have demonstrated assessment work in the amount of $100 per year; is that correct? Is that your understanding of the law? Mr. SCHAUSS. That is not my understanding of the law. Mr. Moss. Let the Chair interrupt. There is one thing that is not permitted here, which is volunteer witnesses. If you-to a member of the audience, near the witness table-feel you must express approval or disapproval of the statement of any witness, get up and leave the hearing room. If you do not, you will be escorted from the hearing room. Please proceed. Mr. ATKISSON. The question to Mr. Schauss at the witness table is whether or not his understanding of the Federal law is that his annual assessment work in the amount of $100 has to be done. Is that your understanding of the Federal law? Mr. SCHAUSS. I would refer back to Judge Kerr's decision a number of years ago in Federal court. He said that as long as a man was diligently working on his property, then he was in possession of his claim. Mr. ATKISSON. Let me ask you this. Have you had occasion from time to time over the years, since 1969, when you say you completed staking your 9,000 claims, have you had occasion to file assessment affidavits in various county courthouses in the State of Wyoming? Mr. SCHAUSS. Yes. Mr. ATKISSON. Those assessment affidavits-by the way, did you file affidavits for all of your 9,000 claims? Mr. SCHAUSS. I filed them by claim groups, if I recall. Mr. ATKISSON. As a matter of fact, there are about 2,000 claims for which no assessment affidavits were filed for about a 4-year period; is that not correct? Mr. SCHAUSS. That is correct. Mr. ATKISSON. So, we are really talking roughly about 7,000 or 7,200 claims for which assessment affidavits were filed from time to time; is that right? Mr. SCHAUSS. Assessment affidavits with no dollar amount; that is correct. Mr. ATKISSON. If, for those 7,000 claims, the $100-per-year work had been done, we would be talking about $700,000 per year; would we not? Mr. SCHAUSS. If the assessment work had been done and we were working on the claims almost continuously. Mr. ATKISSON. If you spent $100-it is a simple arithmetic problem. If you spent $100 per claim and you have 7,000 claims, that is going to cost you $700,000 a year. Mr. SCHAUSS. Let us look at it in another way. Mr. ATKISSON. Do you follow my arithmetic? Mr. SCHAUSS. Yes. Mr. ATKISSON. In fact, 7,000 times $100 is, $700,000; is it not? Mr. SCHAUSs. Yes. Mr. ATKISSON. Mr. Schauss, did you, during the time you held these 7,000 claims for which you filed assessment affidavits, do $100 of work per claim? Mr. SCHAUSS. I did not do $100 work per claim, but I was in possession of the property every year and on the property every year. Mr. Moss. Let me get something clear. I think it will be very helpful to orderly procedure and to fairness to you and to the committee that you respond to the question which is asked. I would hold my answer to that unless further answer is sought. Mr. ATKISSON. Mr. Schauss, I am going to ask the staff to place before you a document. Mr. Moss. Without objection, that will be inserted into the record at this point. [The document referred to follows:] 736.. STATE OF YONING ) COUNTY OF NATRONA ) Tefore me, : SS. the subscriber, personally appeared RALPH SCHAUSS who, being duly swom, says that Whiskey Gap Mining Company has been engaged in, has started or will start and is projected to carry to completion the required annual assessment work on the unpatented lode mining claims hereinafter named. This assessment work my consist of drilling operations on the said claims; or coring; or photographic operations on drill cuttings or outcrops; er replacing or repairing posts or other markers on the property and all other related work. The claims to which the foregoing pertains are located in Sweetwater County, Wyoming, and are described as follows: R Claims, beginning with No. 1 and numbered more or less consecutively through BEY Claims, beginning with No. 15 and numbered more or less consecutively through C Claims, beginning with No. 1 and numbered more or less consecutively through OKAREEY Claims, beginning with No. 1 and numbered more or less consecutively Such assessment work is with the authorization of Palph Schauss and Eugene Stevens, owners of said claims, for the purpose of holding legal title to said claims. Dabei and signed this 24th day of August, 1974. Ralph Schauss ibed in my presence and sworn to before me by Ralph Schauss this thday of expiros: Met 12 Notary Public Mr. ATKISSON. This purports to be a "Proof of Labor" affidavit. It was recorded September 5, 1974. I ask you if you recognize it and recognize the signature at the bottom. [Witness examines document and counsel examines document.] Mr. ATKISSON. Do you recognize that? Mr. SCHAUSS. Yes, sir. Mr. ATKISSON. This is a "Proof of Labor" affidavit that you filed in the county courthouse on September 5, 1974; is that correct? Mr. SCHAUSs. Yes. Mr. ATKISSON. I would like to read the first part of that, and this, of course, is the notary public speaking. Before me, the subscriber, personally appeared Ralph Schauss who, being duly sworn, says that Whiskey Gap Mining Co. has been engaged in, has started or will start and is projected to carry to completion the required annual assessment work on the unpatented lode mining claims hereinafter named. Then they are named. A bystander or someone unschooled in mining interests would read that as saying that you had hired a mining company to go out and do that assessment work. Who, in fact, owned Whiskey Gap Mining Co? Mr. SCHAUSS. The Whiskey Gap Mining Co. is a small, private corporation that I have and which happens to have a drilling rig. I used it. Mr. ATKISSON. Was the drilling rig the only substantial asset of that corporation? Mr. SCHAUSS. Yes. Mr. ATKISSON. You, in fact, were that corporation; were you not? Mr. SCHAUSs. Yes. Mr. ATKISSON. Mr. Schauss, I would like to read to you and ask you if you, in 1974, when you filed this affidavit, were aware of the nature of the State statute-and I refer to section 3015 of the Wyoming mining law titled, "Affidavit Required Upon Completion." Upon completion of the required assessment work for any mining claim, the owner or owners or agent of such owner or owners shall cause to be made by some person cognizant of the facts and an affidavit setting forth that the required amount of work was done which affidavit shall, within 60 days of the completion of the work be filed for the record. Let us go back to that affidavit of yours. Whiskey Gap Mining Co. has been engaged in, has started, or will start and is projected to carry to completion the required annual assessment work. The next sentence is: This assessment work may consist of drilling operation on the said claim; or coring; or photographic operations. Can you reconcile the future tense of your affidavit and the very clear and explicit requirement of the law I just read to you? Mr. SCHAUSS. Are you looking for technicalities or ore? Mr. ATKISSON. I am talking about a law which seems to me is very clear on its face. It is even entitled in the code "Affidavit Required Upon Completion of Work." Mr. SCHAUSS. You have many things in the mining code. It is very ambiguous. |