For Release: Wednesday, April 9, 2008

DEC REPORTS: Demand, New Rules Spur Bluestone Growth

Nestled primarily in the foothills of the Catskill Mountains, New York's bluestone mining industry has grown steadily over the last decade, according to a new report by the state Department of Environmental Conservation (DEC).

The number of bluestone mine permits has climbed from 15 in 1998 to 51 in 2003 to 85 by the end of 2007. Part of this is due to improvements DEC made to get mines documented and enrolled in a permit program while encouraging exploration. But also it is due to growing interest in New York as one of the few repositories of bluestone in the nation.

"Bluestone mining is a niche industry that has flourished, with improved oversight," said DEC Commissioner Pete Grannis. "By working collaboratively with stakeholders, DEC improved environmental protection and encouraged a type of mom-and-pop business that plays a role in the upstate economy."

"The key is that a stable regulatory framework was established," said Brad Field, director of DEC's Division of Mineral Resources. "As a result, the need for enforcement actions decreased, compliance increased and environmental impacts are being addressed and monitored."

Bluestone 101
Bluestone is used for sidewalks, patios, countertops, building veneer and other construction applications where durability and a non-skid surface are required. The estimated value of the industry in New York is about $100 million per year. In the United States, bluestone is found only in New York and Pennsylvania.

Bluestone had been mined periodically in New York since the mid-19th century. But many of the operations were abandoned during the early 20th century. In some instances, today's miners are returning to abandoned mines.

Bluestone mining is quite distinct from other mining operations. Bluestone companies generally are "mom-and-pop" operations involving a handful of workers, some who mine only part-time, and with very little equipment. Miners typically explore for and mine the product at high elevations and at the edge of steep slopes, often in remote locations. Mining is seasonal, avoiding the winter months.

Regulatory Change Makes Impact
New York's growth in bluestone mines over the last decade is attributable to two major factors: changes in Pennsylvania's regulations and a new permitting system in New York. Coincidentally, prices for bluestone have increased dramatically.

Pennsylvania instituted regulations in 1996 that restricted bluestone mining, sparking some operations to move to New York. Soon after, New York launched an outreach and education program and began to develop legislation to match the discrete aspects of bluestone exploration and the changing conditions. In 2002, the state enacted a law that created a regulatory system that is unique in the world of mining.

Unlike other traditional mining operators who use methods such as drilling to determine the value of a mineral deposit, bluestone miners essentially don't know what they will get in terms of uniformity and quality until they dig into a site, making exploration more risky. Recognizing this, DEC developed a "bluestone exploration authorization" permit that allows a miner to investigate a site for up to two years (it must be renewed after one year) before making a determination whether to continue and pursue a full mining permit.

There are limitations to the exploration permit, including restrictions on the amount of material removed and in the size of the company (five employees or fewer). The miners save the time, effort and money of securing a full permit initially, which includes payment of annual fees. They must also financially guarantee that disturbed sites will be reclaimed. Meanwhile, DEC receives information and exerts control over the scope and duration of operations.

Notably, bluestone prices also have risen over the last decade. By some estimates, the price of "two-inch high quality" bluestone has grown from $3 per square foot to $3.50-$4 per square foot. For "irregular" bluestone, some operators report that prices have gone from $120 per ton to $160 per ton.

Law to Sunset
The law governing bluestone mining expires on July 31, 2008. In its report to the State Legislature delivered this month, DEC recommends that the statute be made permanent. Market forces have led bluestone miners to enter older, worked sites as well as new sites to explore for saleable product. The current regulatory framework provides ground rules that both foster this work and provide substantial oversight.

By the Numbers

Bluestone Mines by County 2007.
Delaware 49.
Broome 25.
Chenango 4.
Ulster 4.
Tompkins 2.
Albany 1.

Bluestone Mines by County 1999.
Delaware 8.
Broome 3.
Ulster 2.
Chenango 1.
Tompkins 1.

Bluestone Mining Permits and Authorizations.
1997: 3.
1999: 15.
2001: 38.
2003: 51.
2005: 62.
2007: 85.

For the full report, go to www.dec.ny.gov/lands/5025.html
For photographs, go to ftp://ftp.dec.state.ny.us/dpae/press/Bluestone/