Gov. Dayton administration wants $4 million set aside for PolyMet legal costs

Minnesota is spending $60,000 a month on a Washington, D.C., firm hired to protect the state against future lawsuits related to the PolyMet Mining Corp.

Now Gov. Mark Dayton's administration is asking legislators to approve another $4 million in legal costs over the next two years.

Officials said Crowell & Moring has received $200 to $400 an hour since December for helping the Minnesota Department of Natural Resources (DNR) finalize an environmental-impact statement and start assembling records in preparation for lawsuits over the proposed NorthMet mine.

"No matter which direction we move forward, we're anticipating a challenge in the court system," said Assistant DNR Commissioner Bob Meier.

Last year's budget included $750,000 for legal expenses related to the NorthMet project, after the administration requested $1 million. But the state has since revised calculations of how much its decision on the mining project near Hoyt Lakes will cost to defend.

DNR officials said the $4 million — which amounts to a third of the agency's supplemental budget request — would go toward not just the law firm, but also for an electronic data management system and administrative hearing costs.

This is the first time the agency has used outside counsel to assist with the project, DNR Commissioner Tom Landwehr told the state Senate committee that oversees natural resources.

The retention of Crowell & Moring drew criticism from a leading environmental group last fall because the law firm has a history of representing the mining industry.

"Minnesotans should be very concerned that the state is willing to spend millions of dollars to pay a Washington, D.C., law firm that also represents mining interests to defend it related to PolyMet's flawed mining proposal," said Kathryn Hoffman, the lead mining attorney for the Minnesota Center for Environmental Advocacy (MCEA).

She added: "The amount is not surprising, given that the state has committed itself to a high hourly rate from a conflicted … firm, rather than hiring additional attorneys."

State officials said legal challenges could be fought over the impact statement and the state and federal permitting process that starts this year.

A spokesperson for Minnesota Management and Budget said Crowell & Moring's hourly billing charges were discounted to half of the firm's standard rate.

The agency is simply making sure it has enough money to legally defend itself, said Sen. David Tomassoni, DFL-Chisholm, who chairs the committee regulating natural resources. "I think it's a prudent move," he said.

Maya Rao • 651-925-5043