Opinion ID: 2623408
Heading Depth: 1
Heading Rank: 4

Heading: Mine closure

Text: Meridian argues that NAC 362.100 to 362.160 should be construed in Meridian's favor because they contain no definition for mine closure. According to Meridian, it understood mine closure not to include cyanide heap leaching for purposes of receiving accelerated depreciation. No specific definition of mining operations or mine closure exists in NAC 362.100 to 362.160. `The construction of a statute is a question of law subject to de novo review.' [6] We have stated that words in a statute will generally be given their plain meaning, unless such a reading violates the spirit of the act, and when a statute is clear on its face, courts may not go beyond the statute's language to consider legislative intent. [7] We have further held that we must construe statutory language to avoid absurd or unreasonable results. [8] Rules of statutory construction apply to administrative regulations. [9] NAC 362.160 states in part that [i]f a mining operator who has been allowed to depreciate assets using the accelerated method fails to cease operations on the date of closure specified in the notice required by NAC 362.100 or at any time reopens the mining operation, he shall ... [p]ay to the department within 30 days after demand the difference between the net proceeds taxes using the straight-line method of depreciation over a 20-year period and the amount paid using the accelerated method for any year in which the accelerated method was used. (Emphases added.) We determine the question to be: what is the plain meaning of operations or mining operation? Mining is the process or business of working mines. [10] This definition suggests that if the action performed is part of the process or business of working mines, it must be a part of mining. Another definition of mining is [t]he process or business of extracting from the earth the precious or valuable metals, either in their native state or in their ores. [11] Under the definition, extracting gold from earth is mining. The American Law of Mining also considers heap leaching to be mining because it explains the process under the heading Basic Mining Technology. [12] We must understand what heap leaching is to determine whether it is within the regulation's plain meaning. Cyanide heap leaching is a method of extracting precious metals from previously extracted ore. The process involves moving large quantities of ore onto a huge pad where cyanide placed over the ore removes the precious metals over a period of time. In the instant case, approximately .03 ounces of gold were within each ton of ore. After almost two years and moving about three billion pounds of ore, Meridian extracted 45,000 or 47,000 ounces of gold. This is the only process in which Meridian engaged from 1993 to 1995. Traditional mining involves drilling into the earth and extracting precious metals. It differs from heap leaching in two significant ways. First, traditional mining includes digging into the ground and either stripping the ground of metals or tunneling deep within the earth. Heap leaching entails moving previously extracted ore. Second, traditional mining requires drilling machines and explosives, whereas heap leaching utilizes chemicals to remove the precious metals from the ore. Although still a mining process, heap leaching does not involve digging, tunneling, or explosives. We conclude that heap leaching is a mining operation contemplated under NAC 362.160. Absent a specific definition, the plain meaning of mining operation must include heap leaching because (1) heap leaching is a basic mining technology and (2) precious metal is extracted from earth. Additionally, it would be absurd not to consider heap leaching as a mining operation because it cannot be anything else but mining. Therefore, the district court properly affirmed the Commission's decision to revoke Meridian's accelerated depreciation schedule for continued mining operations after the specified date of closure. [13]