Pennington County planning commission delays decision on contractor storage yard after strong neighborhood opposition to gravel staging and proposed mine

The Pennington County Planning Commission on May 12 agreed to postpone action on Conditional Use Permit CU25-0012, a request to allow a contractor storage yard and aggregate staging area on a 160-acre portion of a 640-acre parcel near Box Elder, after dozens of residents and municipal officials raised safety, dust, traffic and property-value concerns.

The proposal from 63 Industries, LLC, and landowners Michael Demersman and Harry Christiansen would let the company stage aggregate and store equipment on a portion of the parcel while a separate state mining permit is processed. Planning staff had recommended approval of the county conditional use permit with conditions, but after extended public comment the commission voted to defer the county decision to coincide with a state mining permit hearing scheduled for June 23.

Why it matters: Speakers said the storage-yard request and the planned mining are effectively one project and urged the county to hear both applications together so the public can address the full scope of impacts. Neighbors, the mayor of Box Elder and a county commissioner cited traffic on narrow local roads used by school buses, potential dust and water impacts, and harm to future development plans for the area.

Planning staff and public commenters

Quincy Sachs, planner for Pennington County, described the proposal and the department’s review. He said the request met the county’s conditional-use criteria, noted the presence of a special flood-hazard area and said Box Elder city staff asked for a defined haul route and a haul‑road agreement. "Box Elder Planning and Zoning requested haul route identification," Sachs said, noting the city would not allow heavy haul use of some local streets and that an approach permit from County Highway would be required.

Residents said the mailed notice calling the project a contractor storage yard understated likely impacts. "The letter that went out to the people said it was just a contractor storage yard. And I kinda kinda understand now what you're doing," said Larry Larson, mayor of Box Elder. Larson said the city has invested in design and trunk sewer infrastructure for future residential and commercial development near the parcel and that gravel staging or mining would conflict with those plans.

Neighbors described safety and quality-of-life concerns. "History has proven that the gravel mining is adverse and harmful to the health of the surrounding community," said Tracy Lauer, who lives on 220 Fifth Street. Property owner Dave Hatch said wind would carry dust onto nearby homes. Several speakers said heavy trucks and belly‑dump trailers already damage narrow county roads and pose safety risks to school buses and children walking to school.

Speakers urged denial or at least a combined hearing. "The rezoning request is purposely vague. It's lacking clarity. It's misleading and should not be considered," said Kevin Case, superintendent of Douglas School District 51-1 and a resident adjacent to the site. Multiple residents asked why notice was limited to property owners who directly border the parcel rather than a wider radius.

Applicants and owners

Lindon Bolt, identified in the hearing as an owner with 63 Industries, apologized for a prior on-site incident in which calves died and said the company reimbursed the owner. He described the county permit as a separate, preliminary step that would allow removal of topsoil and creation of a staging area while the state reviews a mining permit: "The state does the mining permit, and the county does the grading," Bolt said.

Clyde Lipp, listed in documents as the applicant for 63 Industries, told the commission the material is alluvial fan gravel, not bedrock, and that the operation would not involve blasting. He said state and federal regulators would enforce dust‑control and safety requirements: "We have water trucks. We have water systems on our crushers to control the dust," Lipp said.

Landowner Harry Christiansen said the lease with the mining operator is for four years and that the owners intend to reclaim mined areas and encourage eventual residential or commercial development: "Our intention is to develop this land ... We are not increasing the price of the property. We're leaving it there because we really wanna get it developed," Christiansen said, adding that the contract includes reclamation obligations.

Action and next steps

After extended public comment, a planning commission member moved to defer discussion and action on CU25-0012 to coincide with the state mining permit hearing scheduled for June 23. The motion was seconded and the commission voted in favor. The item is continued to the commission’s June 23 meeting. Planning staff advised that mining permits are processed by the State of South Dakota and that state notice for a mining permit is broader (half‑mile) than the county’s 500‑foot notice for conditional use permits.

Community context and concerns

Box Elder and residents said the site sits adjacent to planned or recent residential development and a City of Box Elder comprehensive plan that contemplates future growth. Speakers pointed to previous, nearby alluvial‑fan pits and said the community wants more planning coordination among the city, county and state for truck routes, road maintenance and environmental protection. City officials and residents also flagged potential impacts to ongoing city sewer investments and to future property values.

The commission did not take a final vote on the CU25-0012 application; instead it continued the matter to the June 23 meeting to allow the state mining permit process to progress and for both matters to be heard together.