Summary of DHS Meeting with Members of the Mining Industry

Concerning the Ammonium Nitrate Security Program Proposed Rule

Docket No. DHS

- 2008

- 0076; RIN 1601

- AA52

Notice of P roposed Rulemaking Available at 77 FR 46908 (August 3, 2011 )

DATE: February 15, 2012

TIME: 12:00

– 1:15PM

LOCATION: DHS offices, Arlington, VA

SUBJECT: Meeting with r epresentatives of the m ining i ndustry

ATTENDEES :

Attendee : Affiliation: Dave Beerbower Peabody Energy Tawny Bridgeford National Mining Association Carl Byrd Dyno Nobel, Inc
Tom Goodell Resolution Copper
Bob Green Cloud Peak Energy Paul Kavinoky Rio Tinto
Chr i s Lilley Kennecott Tim McCreary Thunder Basin Coal
Phil Melick Southwest Energy LLC Roger Osmun Southwest Energy LLC
Steve Roberts Freeport

- McMoRan Steve Salter Dyno Nobel, Inc
Michael Smith Newmont Mining Greg Tholen Dyno Nobel, Inc Ralph Colleli DHS/OGC Tom Colley DHS/ISCD
Brad Huntsman DHS/ISCD
Jon M a cLaren DHS/ISCD
Dave Wulf DHS/ISCD
Julie Barsic DHS/ISCD (contractor) Dorothy Kellogg DHS/ISCD (contractor)

SUMMARY OF MEETING

Mr. M a cLaren, of the Department o f Homeland Security (DHS) Infrastr ucture Security Compliance Division (ISCD)

, gave a brief introduction and welcome to the attendees. He andMr. Colleli of the DHS Office of the General Counsel explained that , for DHS, the meeting would be a listening session only and that DHS would not be taking questions on the substance
of the rule from the attendees. He also stated that DHS was considering all of the public
comments it had received on the Ammonium Nitrate Security Program proposed rule and w ould not discuss those comments or the Department’s position on the proposed rule. They also explained that DHS would prepare a written summary of the meeting , and would place it in the public docket for th e proposed rulemaking.

Ms. Bridgeford of the National Mining Association (NMA) explained that NMA requested the meeting to provide DHS with more factual information on how the mining industry handles
ammonium n itrate a nd A mmonium N itrate / F uel O il (ANFO) explosives.

Representatives of seven mining companies (Dyno Nobel, Cloud Peak Energy, Peabody Energy, Arch Coal, Freeport

- McMoRan, Kennecott, and Newmont) then described the security procedures their companies employ to secure ammonium n itrate , ANFO and ammonium n itrate containing explosive emulsions from purchase through transport, storage, and to actual use.

Several industry representatives reiterated comments they submitted during the public comment period

, to the effect that they thought the proposed rule could:

• d isrupt the ammonium n itrate supply chain and availability of ammonium nitrate and ANFO;

• d elay intra

- company transfers between mining facilities/locations;

• d uplicate existing Bureau of Alcohol, To bacco, Firearms, and Explosives (ATF) and United States Department of Transportation (DOT) background check requirements; and

• i mpose significant burden and costs while producing little if any increased security in the mining industry.

The mining industry representatives also reiterated their support for Option 2 as described in the proposed rule ( i.e., to exempt ammonium n itrate purchases, sales or transfers solely to enable use
of ammonium n itrate in production of explosives).

The meeting ended with Mr. Wulf of DHS thank ing the participants for their statements and the factual information they provided

.