Real Estate & Property Law

Living by the Rule of Law

By Alan Ackerman

In a Northern Nevada Business Weekly article, local elected officials attacked the notion that mining is of 'paramount interest', allowing private corporations to exercise the right of eminent domain.

The rule of law is one in which a statutory provision, so long as it is in the State constitutional parameters, will be upheld as valid. The legislators have a right in considering changing the statute in order to avoid the opportunity for mining companies to simply come in and acquire property.  Yet, one has to wonder whether the State constitution used unregulated activities, even of 'paramount interest' as activities which may allow for the use of eminent domain.  Clearly, our society seems to be bent on opposing regulations.  Yet, when it comes to the use of the power of eminent domain by private entities, regulation may be the only protection!

Northern Nevada Business Weekly

While a subsequent court hearing before Elko District Court Judge Andrew Puccinelli resulted in a settlement agreement between the two parties, several Nevada officials voiced surprise that a little-known provision in the 1875 law governing mining companies was used. Among them were Assemblywoman Sheila Leslie and former state archivist Guy Rocha, who was quoted as saying, 'Why this law is still on the books is questionable.'

Leslie, a Democrat from Reno who is running for the State Senate, said she will introduce legislation in the next session to eliminate the provision that says mining is of 'paramount interest' to the state and therefore the power of eminent domain may be used by private mining company.

Several people familiar with the case suggested Fronteer likely used the antiquated provision of the 1875 mining law to reboot negotiations. One was Alan Coyner, administrator of the Nevada Division of Minerals. 'The eminent domain portion of that law has probably outlived its usefulness,' he says. 'I don't think too many mining companies would disagree with her (Sheila Leslie) on that.'

Full post as published by National Eminent Domain Blog on August 27, 2010 (boomark / email).