State reinstates Pebble's exploration permits

But to begin drilling anew this year, the companies involved in Pebble still need to regain permission from the Alaska Department of Fish and Game to work in fish habitat.

The two agencies suspended Pebble's land, water-use and fish-habitat permits this year after learning that the mining companies had pumped water from 45 unauthorized stream segments or ponds over the past three years.

Pebble officials said they discovered the violations last fall and reported them to state regulators.

The state and the Pebble Partnership settled the partnership's violations for $45,000 in February.

In a letter to the company, the DNR said the violations were "at a minimum, a trespass against the state's property and resource interests." In addition to the fine, the state required the mining companies to submit a new plan detailing how they will comply with the state's temporary water-use permits. The plan, now approved by DNR, includes hiring a compliance officer and starting a new training program for Pebble's field staff.

"We will continue to work with the state regarding the necessary permits to continue our exploration work. This will be good news for folks in the region who are eager to get to work," said Pebble Partnership spokesman Mike Heatwole on Friday.

Heatwole said the mining partnership, composed of London-based Anglo American and British Columbia-based Northern Dynasty Minerals, plans to drill at Pebble between May and September.

DNR officials said that they and regulators from other state agencies will inspect the 45 locations this year to determine if any environmental damage resulted from Pebble's unauthorized water use.

In February, Pebble officials said the violations happened because their workers wrongly believed that permits they received from the Fish and Game Department set the boundaries within which they could withdraw water for their drill rigs. The DNR permits, however, required that the water be withdrawn from more limited areas.

In a pending state Superior Court case, some Native organizations claim the exploration permits the state granted to Pebble are illegal.