Controversial Elko grand jury report wiped from books

Tuesday, June 8, 1999 | 11:05 a.m.

CARSON CITY -- The Nevada Supreme Court Monday ordered "total expungement" of an Elko County grand jury report that accused four state officials of criminally pressuring a private mining company into paying a $500,000 mitigation fee.

"This is a good decision for us," said Pete Morros, director of the state Department of Conservation and Natural Resources. It adds another chapter to the long-running feud between Elko County and the state and federal government over management of public lands.

The Independence Mining Company in the early 1990s wanted to extend its gold mining venture in Elko County onto more public land. The state Division of Wildlife opposed the plan, claiming the expansion would affect a prime mule deer herd grazing area.

After negotiations Independence Mining agreed to pay the state $500,000 in mitigation fees to improve other deer habitats.

Later a grand jury was impaneled to investigate the actions of the state and federal governments in managing the public lands in Elko County.

Grand jury members zeroed in on the Independence Mining case.

In January 1997 the grand jury released its report but no criminal indictments were filed.

However the report accused former state Wildlife Director Willie Molini and employees Larry Barngrover, Duane Erickson and Kenneth Gray of coercing Independence Mining into an unfair settlement. The grand jury felt these four were guilty of oppression under the color of office, a gross misdemeanor, but the statute of limitations had expired.

The court in its unanimous decision said grand juries are not to mix reports on the operations of government with accusations of possible criminal conduct.

The court said normally it allows expunging only certain portions of a grand jury report but in this case ordered "total expungement."