Governor announces Agreement in Principle reached

 with Homestake Mining Company 

PIERRE – Gov. Mike Rounds announced today that an Agreement in Principle has been signed with the Homestake Mining Company that outlines the conditions and timeline for the transfer of the former gold mine in Lead, SD to an authority created by the State of South Dakota.

“I am very happy that we have been able to work with Homestake to put together a land transfer plan, which is the first critical step in making a deep underground science and engineering lab a reality,” said Gov. Rounds on the announcement. “This cooperative effort sends two clear messages to the National Science Foundation and the scientific community.   First, that the best location in the United States for an underground science lab is available for development, and second, that South Dakota will do what it takes to make the lab a reality.”

The governor’s proposal to Homestake includes creation of the South Dakota Science and Technology Authority.   The purpose of the Authority will be to acquire, develop, and maintain facilities needed for scientific experimentation and technological development.  The South Dakota State Legislature must approve the legislation necessary to implement the transfer.

“We are really pleased that all concerned took a constructive approach, which led to the agreement in principle,” said Patrick Garver, Executive Vice President and General Counsel of Homestake Mining Company.  “We will do all that we can to make the laboratory a reality.”

Once formed, the Authority will also be able to take the steps needed to indemnify Homestake from future potential liabilities caused by the operation of the underground laboratory.  The agreement in principle with Homestake calls for a combination of commercially-available insurance and the establishment of a long-term escrow account to secure indemnification. 

Since May 2003, the National Science Foundation has considered the Homestake Mine the preferred location for the Deep Underground Science and Engineering Laboratory.  In June 2003, Gov. Rounds created the Homestake Laboratory Conversion Project and Office in Rapid City to facilitate conversion of the mine into a deep underground laboratory.  Since that time, the Conversion Office has provided information and support to the scientific community.  This effort has been instrumental in acquiring technical engineering data from Homestake Mining Company needed to facilitate the lab development process.  

An Ad Hoc Science Committee, led by Dr. Jordan Goodman, Chairman of the Department of Physics at the University of Maryland, is reviewing scientific requirements and the policies and procedures to be put into place by the proposed Authority.  The Ad Hoc Science Committee has established three working groups (in the areas of environmental and risk management, community development opportunities and educational outreach) to make certain that all concerns and opportunities relating to the deep underground science laboratory are addressed.

For more information about the Homestake Lab Conversion Office, please visit our website at www.state.sd.us