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Witnesses, counties and producers urge revisions to proposed DNR reclamation fee increases in SB 5319

March 26, 2025 | Agriculture and Natural Resources, House of Representatives, Legislative Sessions, Washington


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Witnesses, counties and producers urge revisions to proposed DNR reclamation fee increases in SB 5319
Senate Bill 5319, a Department of Natural Resources (DNR) request bill to revise the fee structure for surface-mine reclamation permits, drew extensive public testimony arguing the proposal would disproportionately burden small and rural aggregate producers.

Supporters and DNR staff said the program is fee-supported and that fees have not been raised in about 10 years. The Department and an advisory committee recommended a flat-rate update now before the Legislature to sustain inspection and reclamation work.

Opponents — including multiple small producers, county engineers and local economic development officials — told the House Agriculture & Natural Resources Committee the flat increase would force closures of low‑production pits, raise local construction costs, and hollow out rural tax bases. Several witnesses suggested alternatives: tiered fees based on tonnage, the number of employees, or restoring a $1,000 cap on public-works pits.

Erica Odom, appearing for DNR, summarized the agency’s position that the reclamation program is “entirely fee supported” and that fees “haven’t been increased in about 10 years,” and she noted the department’s five regionally based field inspectors aim to visit each permitted mine annually.

Michael Transcuh, representing the Washington Aggregates and Concrete Association, said his trade association participated in the advisory process and supports Senate Bill 5319, arguing that permit workload does not vary by quarry size and that reclamation is essential to the life cycle of mines. He thanked Senator Shoemake and Representative Springer as prime sponsors and urged committee support.

Multiple small operators and county representatives opposed the flat-rate approach. Jim Durr (Copenay River Construction) said many of his roughly 10 pit locations in eastern Washington operate at very low production and that an annual maintenance fee of $3,500 for pits that “don’t hardly produce any gravel” would force many to close; he said closures could push haul distances from local projects from “about 25 miles” to “50 to 75 miles,” increasing costs for public works and private buyers.

Axel Swanson with the Washington State Association of County Engineers urged a return of a $1,000 cap for public-works mines, noting counties manage more than 25,000 gravel and dirt roads and that exemptions for small county mines have existed for nearly 30 years. He described surface-mine regulation as a “partnership” between counties and DNR.

Tim Hemphill, co-owner of Hemphill Brothers and Lane Mountain Company, said his businesses hold three annual reclamation permits and employ 55 people; he estimated the proposed change would add $4,500 annually for his operation and described the change as an additional burden layered onto recent cost increases tied to state policies.

Corey Hedrick, vice president of Versatile Industries, said many rural sources produce between “30,000 tons per year, or in some cases even less,” and called the flat fee inequitable because a single large metro quarry producing millions of tons would pay the same flat fee as multiple small rural quarries. He said Versatile would pay $3,500 for each of six Washington quarries — about $21,000 annually — although combined output is roughly 100,000 tons, and proposed a tiered structure based on employee count or tonnage.

Representative questions focused on the makeup of industry membership, production thresholds used in current law, and whether exemptions or caps remain for public-works mines. Committee staff explained that the bill removes distinctions based on mine output (previous exemptions applied only to public-works mines under current law).

Local economic-development leaders and a Port official from Pend Oreille County emphasized the broader community impact of losing aggregate sources: Jessica Garza (Port of Pend Oreille) said the county has already lost multiple industrial employers and warned that eliminating exemptions could further harm rural economies that rely on local pits to keep infrastructure projects affordable.

No formal committee action or vote was recorded in the transcript; testimony concluded with committee members noting consistent requests from witnesses for a graduated fee approach and saying they would consider amendments.

Ending: The committee closed the public hearing and moved to the next agenda item. The record shows multiple suggested amendments (tonnage-based tiers, employee-count tiers, restoration of a $1,000 cap for certain public-works mines) and sustained concerns about rural impacts, but no formal vote was taken during the hearing.

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