Pennington County planning commission recommends denying sand-and-gravel mine near Box Elder

The Pennington County Planning Commission on June 23 recommended denying mining permit COMP25-0001, which would have allowed 63 Industries LLC to operate a sand-and-gravel extraction site near Box Elder.

Planner Cody Saxon told the commission staff recommended denial because the proposed operation "is not in harmony with the existing land use and future land uses," lacks adequate access and infrastructure, and has undetermined impacts to water quality. Saxon noted the site contains wetlands and lies near mapped floodplain and floodway areas; he said staff had not received an environmental assessment to verify the applicant’s claims about groundwater and wetlands protection.

The recommendation matters because the site lies inside Box Elder’s three-mile planning jurisdiction and adjacent to areas the county and city identify for residential and mixed use. Saxon also said roads that would serve the pit — described at 19 to 21 feet white-line-to-white-line — do not meet County Ordinance 14 commercial standards (32-foot paved width) and that the operation’s truck traffic and access would create safety and infrastructure questions.

The applicant, Clyde Lipp, partner and operations manager for 63 Industries LLC, said the state requires mining licenses to be filed for up to 20 years but that the company intends to mine for five years. Lipp said the operation would run daytime hours and use water spray systems, berms and vegetative measures to control dust and noise and that the crusher would be watered. He said state and federal oversight includes dust and mining inspections. Lipp also said “we will not ever reach” the 40-foot excavation depth listed in the application and that typical excavation in his other regional pits is 7 to 15 feet.

Landowner Mike Demersman, who identified himself as the majority owner of the section where the pit is proposed, told the commission the mine is intended to support nearby development and said denying the permit would be “a terrible mistake right now.” Demersman said the permit could include “very tough restrictions” and that phased mining and reclamation would produce developable, flatter parcels in the future.

More than a dozen residents, elected officials and public agencies spoke in opposition at the hearing. Speakers cited potential increases in heavy truck traffic on narrow county roads, damage to roadways, dust and air-quality concerns, noise from crushers and heavy equipment, impacts to children and school bus routes, and the presence of wetlands and mapped flood areas. Gary Dearing, Meade County Commissioner, urged coordination because trucks could use Meade County roads. Tanya Gray, a Box Elder resident and Douglas School District representative, said the district opposed the permit, citing safety and environmental concerns. Box Elder Ward 2 Councilman Patrick Schubert and other residents cited peer-reviewed studies and personal health concerns related to dust and heavy aggregate operations.

Saxon summarized technical concerns raised by staff and other agencies: the applicant had not provided hours of operation or truck counts; no environmental assessment or spill-prevention plan was included; the proposed 50-foot buffer to wetlands and an 18-inch culvert for a stream crossing lacked engineering documentation; and stormwater and floodplain permits would be required if the project moved forward. Saxon also said state reclamation bonding requirements apply and described state guidance for per-acre reclamation surety.

After discussion, a motion to deny the mining permit "without prejudice" was moved and seconded and carried 5–2. The Planning Commission’s recommendation will be forwarded to the Pennington County Board of Commissioners at its July 1, 2025 meeting, where the board will make the final decision. The commission also voted to continue the related conditional use permit (item 13) to the commission’s next meeting so the CUP can be heard after the board acts.

The commission record includes letters of opposition from the city of Box Elder, the Box Elder Chamber of Commerce, Douglas School District, the Meade County Board of Commissioners and numerous residents. If the board of commissioners approves the permit, the applicant would still need to satisfy county floodplain, stormwater and reclamation-surety requirements and any state mining conditions.

What’s next: The Board of Commissioners will consider the planning commission’s recommendation at its July 1, 2025 meeting; the planning commission continued the related conditional-use item to coincide with the board’s action.