Pat's Nuggets

KEENE ENGINEERING COMPANY INC.

20201 Bahama Street, Chatsworth, California 91311 U.S.A.Tel. (818)-993-0411 Fax. (818)-993-0447

E-mail: pat@keeneeng.com Web site: www.keeneeng.com

June 29, 2009

Economic Effect

Governor Arnold Schwarzennegger

State Capitol Building

Sacramento, Ca. 95814

Re:Veto SB-670

Dear Governor Arnold Swarzenegger,

My name is Patrick Keene and I am part of a 3rd. generation family owned business that has been serving the mining community for the past 60 years.

I would like to give you a small business owners point of view on how SB-670 would directly affect Keene Engineering and the 325 plus small businesses in the state of California, which serve the prospectors and suction dredge mining community.

Forty percent of our business relies on California, small and medium scale suction dredge miners and people who travel from other states to dredge in rivers and streams of California and thousands who enjoy tourism here in our Golden State. Dredgers are regulated out of the rivers during spawning seasons

SB-670 is a prohibition and will cause economic harm to our industry to the tune of 60 million dollars a year and will add further injury to our current economic situation in California. Not only our industry would be in danger of collapse, but many other different types of businesses as well. SB-670 will put us out of business and we employ 35 workers.

The suction dredge community supports many other businesses in gold bearing areas which would be in danger of failure as well. Many jobs would in all probability be lost if SB-670 passes. Since, most of these following businesses are seasonal, such as campgrounds, hotels, restaurants, service stations, grocery stores and are located in economically depressed areas, business owners rely on things such as small-scale suction dredgers, prospectors and their tourism. Many of the counties in the Northern California are in economic hard times as we speak, and passing SB-670 would greatly add to their economic suffering eliminating jobs and less tax money for California.

Californians and people who come from other states, visit California and spend an average of 3,200.00 per month in local economies. People purchase special vehicles such as; trucks, campers, trailers, quads and r.v.’s to reach their destiny to prospect and mine for gold in the Golden State.

I have contacted the County Assessors office in 6 of 56 counties in California and have found that the value of mining claims is in these counties alone are valued over 1.7 billion dollars of which at least 1.7 Million is generated for county taxes every year.

Those in favor of SB-670, such as the Karuk Indian Tribe, Sierra Cub, Along with other Indian gaming tribes and certain extreme environmental groups want to see an end to mining and are expounding upon the potential damages of suction dredge mining and the minimizing the possessory rights that are attached to mining claims and their owners.

Please allow the Environmental Impact Report to determine the impact, if any, before allowing SB-670 to shutdown an industry which will cost California’s tax base and violate a congressionally protected property rights.

The original litigation from the Karuk Tribe against the Department of Fish and Game and suction dredging, as well as Governor Schwarzenegger, determined that suction dredging should continue under the old regulations until the Department of Fish and Game has an opportunity to complete a new Environmental Impact Report, and promulgate new suction dredging regulations.

Therefore, we ask you to please Veto SB-670

Remember, all wealth comes from the earth, if it is not mined it must be grown.

Sincerely,

Patrick Keene

Keene Engineering