Bridgecreek, JG Sablan proceed with partnership

JG Sablan Rock Quarry Inc. and Bridgecreek International Corp. seem all set to commence their joint venture to extract pozzolan from Pagan, even as a lawmaker insists that the partnership agreement is not a done deal as far as the government is concerned.

Bridgecreek chief executive officer John Carlson is currently on island to open an office to be shared by the Los Angeles-based company and Saipan’s JG Sablan. Today, he will meet with bankers to open a new account for the joint venture. A business license is also being processed.

In a telephone interview, Carlson reported that he has met with top CNMI government officials concerning the Pagan mining project. These officials include acting Gov. Timothy P. Villagomez, acting Finance Secretary Eloy Inos, Senate President Joseph M. Mendiola, House Speaker Oscar M. Babauta, and Northern Islands Mayor Valentin Taisakan.

“Their response has been very supportive,” Carlson said.

According to him, Bridgecreek and JG Sablan have already agreed to establish a special fund earmarked for the Northern Islands once the mining operations begin. Negotiations are also ongoing in relation to another special fund for the Public School System.

These accounts will be created in addition to the royalties the CNMI stand to receive for each ton of pozzolan that Bridgecreek and JG Sablan extract from Pagan.

Rep. Cinta Kaipat said, however, that Bridgecreek and JG Sablan could not proceed with the project without going through a bidding process.

Kaipat, a member of the PaganWatch group, said that the planned mining task force would still be formed and the Pagan mining project would be put to a bid.

A bill creating the multi-agency task force will be introduced in today’s House session, she said. The measure will contain several modifications to a similar bill introduced in the 14th Legislature.

“We want a deal that will be mutually beneficial to the investor and the entire CNMI community. To do that, we must allow a legitimate task force to be formed and let that task force ensure there is a fair, honest selection process,” Kaipat said.

In this light, she reiterated a call by PaganWatch for Bridgecreek to participate in the bid process, rather than “take shortcuts” by teaming up with JG Sablan.

On Speaker Babauta’s request for Bridgecreek and JG Sablan to set aside a portion of its revenues for PSS, Kaipat said: “We do not need their permission. [Pagan’s pozzolan] is a CNMI resource and we will allocate the money earned from it. It’s not up to Bridgecreek and JG Sablan.”

She also questioned the validity of JG Sablan’s 10-year-old mining permit, which PaganWatch claims to be void.

The watchdog group filed an Open Government Act request with the Marianas Public Lands Authority on Wednesday for documents concerning JG Sablan’s permit.

“We have a valid mining permit,” Carlson maintained.

He also assured the Commonwealth that the new business partners would “go beyond” regulations to ensure that Pagan’s environment is protected during the mining operations.

“We all know that the CNMI has a large budget deficit and if we could come in and create revenues for the CNMI, I don’t understand why anyone would want to stop us. We want this to be a win-win situation for everyone—for the CNMI, the Northern Islands, and the environmentalists. We’re here for the long-term, not just the ravage the land,” Carlson said.

J.G. Sablan has held a Pagan mining permit for the past 10 years, but has never conducted actual operations in the northern island. The company recently entered into a partnership agreement with Bridgecreek, which is primarily in the real estate business.