City, county connections with crypto currency producers by The Newport Miner

The Newport Miner THE VOICE OF PEND OREILLE COUNTY SINCE 1901

Wednesday, June 23, 2021

www.pendoreillerivervalley.com

Volume 119, Number 22 | 2 Sections, 20 Pages $1.00

City sought nondisclosure agreement with cryptominers Newport started working on own utility last summer BY DON GRONNING OF THE MINER

NEWPORT – Results from a public records request show that Newport tried to keep details about starting its own power company secret and that former city administrator Russ Pelleberg had sought information on its viability from a power consultant as early as Sept. 1, 2020, long before Mayor Shirley Sands, the city council or the public was told about it. Sands announced Pelleberg’s resignation at Monday night’s council meeting June 21. The Miner received more than 60 emails and text messages that show, among other things, a nondisclo-

sure agreement sought by the city from crypto-currency miners, detailed power supply and cost projections from the consultant and preapproval from Pelleberg on letters from the crypto-miners criticizing the PUD. Sands put Pelleberg on paid administrative leave by May 20. Sands is running for reelection as mayor against councilmember Keith Campbell.

City starts looking at power options in 2020 According to correspondence between the consultant, Kimberly Gentle of GDS Associates and Pelleberg, the two began looking into options for Newport power at least as early as Sept. 1, 2020. Gentle did not respond

to an email with questions about the correspondence. Pelleberg said he had to wait for paperwork from his attorney before commenting on his resignation. “Thank you for lunch and the discussion,” Gentle writes to Pelleberg Sept. 1. Gentle includes a link to an RCW, a law, that says towns may construct, condemn and purchase facilities for the purpose of furnishing the city with power. “After we spoke, I discovered the condemnations within a PUD territory is allowed, however, you cannot condemn the Pine Street substation,” Gentle writes, citing another RCW. “That does not prohibit Newport SEE CITY, 2A

Rodeo, parade happens this week BY DON GRONNING OF THE MINER

Rough Stock Rodeo in July. “I placed at Springdale,” Newman told The Miner when contacted for this story. The Springdale Frontier Days Rodeo took place in mid June. Newman, who only started riding bucking horses a year or so ago, has won money in the ranch bronc

NEWPORT – The Newport Rodeo and parade are back after a year off because of the pandemic. The rodeo will get underway Friday night, June 25, with another performance Saturday, June 26. Both shows will start at 7:30 p.m. Tickets can be purchased at a variety of locations in the area, as well as online at www.rodeoticket.com/rodeos/ newport-rodeo/2021/tickets. Admission price for adults is $18, with children admitted for $8. There is a military and first responders discount. The rodeo parade will take place Saturday, June 26, starting at 11 a.m. The staging area will be at Stratton Elementary School at 9 a.m. The parade will proceed down Calispel Avenue to West First Street, to Spokane Avenue, and up Fourth Street. The state did not allow the closing of Washington Avenue, which also serves as state Highway 2. Grand Marshall for the parade will be William Winkler of Wm. Winkler Co. of Newman Lake. Winkler has been a sponsor of the Newport Rodeo and the arena is going to be renamed for him this year. In addition to the rodeo and parade, there will be a Vendor Village, with 140 different vendors. “About everything you can think of,” says vendor coordinator Rob Regalia, everything from off the grid companies showing solar equipment and off road vehicles to arts and crafts, including wood workers and metal workers. There also will be a good representation of local vendors, he says. Regalia says there will be about 10 food vendors, everything from Asian food to pizza. There will be a stage area, as well as covered seating. Live music and shows will take place Saturday, starting at noon and continuing until

SEE QUEEN, 9A

SEE RODEO, 2A

MINER PHOTO|ROSEMARY DANIEL

Bigfoot Fun Run Bigfoot was leading the way to kick off the 5K Fun Run in Metaline Falls on Saturday morning, June 19. Metaline Falls’ first annual Bigfoot Festival was held Saturday and Sunday with guest speakers at the Cutter Theatre, vendors booths in the city park, a film festival at the NuVu Movie Theater, and other activities for kids and adults to enjoy.

Newport queen also rough stock rider BY DON GRONNING OF THE MINER

NEWPORT – Leana Newman, 24, is this year’s Newport Rodeo Queen, a title she actually won in 2020. But because of the COVID pandemic and the cancelation of last year’s event, she was named Newport Rodeo Queen again for 2021.

While horsemanship is required of every woman who tries out for rodeo queen, Newman, a 2015 Priest River Lamanna High School graduate, takes it a step further. She competes in the ranch saddle bronc riding, an event where the rider attempts to make the wildest ride by any means possible. It’s an event that will be held at Newport’s

B R I E F LY House fire damages Ione home IONE - A house fire on W. Chippewa Avenue, just outside Ione, didn’t result in any injuries, but the home was badly damaged, according Fire District 2 assistant fire chief Blake McAnerin. He said the occupant was able to get out and the fire was contained to just the home. Fire districts 4 and 5 assisted Fire District 2 with the fire, which broke out

about midnight Thursday night, June 24. The cause of the fire is under investigation, McAnerin said.

Beware telephone scam posing as treasurer’s office NEWPORT – The Pend Oreille County Treasurer’s Office is hearing from customers that phone scammers are targeting county taxpayers. According to

county treasurer Nicole Dice, a caller identifies himself or herself as being with Pend Oreille County, warning customers that they owe delinquent taxes. The caller then demands payment over the phone. The calls are from a 1-800 number, which the county treasurer’s office does not have. If suspicious about any call or communication, feel free to check with the treasurer’s office at 509-4473612.

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THE NEWPORT MINER

BY SOPHIA ALDOUS OF THE MINER

NEWPORT – If summer weather is what you’ve been waiting for, here it is. The National Weather

Service (NWS) office in Spokane is forecasting triple digit heat this weekend into early next week, with the hottest temperatures since the heat wave of June 2015. This upcoming heat wave

RODEO: FROM PAGE 1

about 6:30 p.m. There will be a variety of things for kids to do, from face painting to a magic show. “I think it’s what the community wanted,” he says. There won’t be a carnival this year. The rodeo typically honors some rodeo supporters of the community who have passed away. This year memorials will be held Saturday night for Bubba Konkright and Larry Staples. Konkright printed posters for the Newport Rodeo for years and Staples was a longtime rodeo committeeman and musician. Konkright passed away in 2021 and Staples in 2020. The rodeo is being sanctioned by the Professional Rodeo Cowboys Association this year for the first time since 1992, although the Newport Rodeo was a PRCA rodeo for most of its existence. Stock contractor Mark McMillan and Craig Wentz formed the Aces Wild Prorodeo company and will be providing stock to this year’s rodeo. McMillan is a familiar figure to Newport rodeo fans, as he’s provided bucking horses here for years. Wentz has the bucking bulls. The rodeo will have the usual rodeo events, bareback riding, tie down roping, saddle bronc riding, steer wrestling, team roping, breakaway roping, barrel racing and culminating with the bull riding. Newport Rodeo Association President Ray Hanson says there will also be a couple of novice rough stock events. Josh Sheppard will be back as rodeo clown, with Miles Barry and Ryan Manning serving as bullfighters. There will not be a calf panty pull event this year, that will be reserved for the Rough Stock Rodeo in July.

has the potential to last longer, NWS cautions. Local climatologist Bob Lutz says the heat wave doesn’t surprise him. “This upcoming heat shouldn’t come as a huge surprise given the persistent warm, dry pattern of the past few months under the strong, resilient ridge of high pressure over the West,” Lutz says. If the upcoming forecast comes is accurate, then expect some local high temperature records to fall, Lutz adds. He says there’s a strong chance this heat wave will exceed the duration of the record event that the Pend Oreille River Valley experienced in June 2015, when temperatures reached over 100 degrees on the 27th and 28th in south Pend Oreille County. The summer of 2015 also saw more 100-degree days recorded in July and August. “Only time will tell if we will see a repeat of this pattern,” Lutz says. As for the immediate future, Lutz says many weather computer models are forecasting highs of between 101 and 106 on Saturday, June 26 through Wednesday, June 30 with higher readings possible in those typically hotter locations. Highs will be slightly cooler in the

How to stay safe in the heat *Never leave people or pets alone in a closed car *Drink plenty of water, even if you are not thirsty *Wear loose-fitting, light-colored clothing *Spend time in the shade and in air conditioning *Wear sunscreen with an SPF above 30 and a hat mid and upper 90s for the remainder of next week. “As of now, I don›t see any significant relief in sight from the intense heat looking through the short term forecasts,” Lutz says.

Fire danger increased Excessive heat and lack of rain, “will stress drought stricken crops and increase vulnerability to wildfires,” NWS advised in an email. As of press time, the Washington State Department of Natural Resources (DNR) and Pend Oreille County burn ban issued June 11 is still in effect. That means all outdoor small debris disposal fires and burning with a DNR permit are prohibited in all of Pend Oreille County. Campfires are allowed in designated campgrounds only. “This prolonged heat is terrible news for our dry land farmers and firefighters,” Lutz says. He adds that with the lack of rain this spring al-

ready resulting in significant crop damage, and with much of the mountain snowpack already gone, forest fuels are drying rapidly, “Which will no doubt lead to an unusually early start to our annual fire season.” Recreational fires must meet all of the following conditions: The fire must be attended at all times and is no larger than 3-feet by 3-feet and no taller than 2-feet. A charged hose or five gallons of water must be present along with a shovel and there is a fire break/non-combustible surface of at least 3-feet around the fire. The use of gas and propane self-contained stoves and barbeques are allowed. “With this kind of heat we’re already seeing a drying trend with winds,” South Pend Oreille Fire and Rescue Chief Mike Nokes says. “It’s the perfect conditions for rapid fire spread SEE HEAT, 10A

CITY: Letters from crypto miners sent to local newspapers FROM PAGE 1

from connecting to BPA on the south bench, but it does change our conversation a bit. It reinforces in my mind that legal review needs to be the first step. Please let me know how that progresses.” Sept. 10, Pelleberg sent Gentle a message from his personal phone with a link to the franchise ordinance. Sept. 15 Gentle responds she has read ordinance 875 several times. That’s the franchise ordinance that allows the PUD to sell power within Newport for 25 years, which was approved in 1996. “To be honest, my first read just made me feel like it was too good to be true,” Gentle writes. “My second read was better and my third read has galvanized my perspective.” Gentle goes on to write that she discovered in a previous ordinance that the city used to receive 3% of the PUD’s gross sales within the city of Newport each year. She writes she found in an earlier ordinance that the city granted rights to Pend Oreille Electric Cooperative who provided 60kwh to Newport for free. “Both of these tidbits matter because of the ‘public good’ standard in the current ordinance,” she wrote. Gentle writes that the city could let the franchise agreement expire and then offer to pay the PUD fair market value for its assets. “This would be catastrophic for the PUD as they cannot serve the county without the Pine street substation and somehow for the term of the ordinance, the PUD forgot this tidbit,” Gentle, who used to work for the PUD, writes. Gentle also provided power cost analysis starting in September 2020 and continuing through May 2021. “Here is the first installment of pricing comparisons. Please keep in mind that Commercial rates are structured completely

differently and require quite a bit more of capacity and O&M. When we get closer, I can layer in commercial or if you have a specific need,” she writes Sept. 17, 2020. The projections all show PUD power from Box Canyon Dam costing more than power purchased on the open market and power purchased from the mid Columbia PUDs.

Nondisclosure agreement sought in March Pelleberg sought a nondisclosure agreement from Monty Stahl of West 117 LLC, and Magic Mining LLC in March. “Hey there gentlemen!” Gentle writes Jimmy Thommes and Jimmy Odom of BitCap, an investor in Magic Mining. Odem is CEO and Thommes is COO of Magic Mining. “The City of Newport has requested I prepare an NDA for your consideration,” Gentle writes March 10. Gentle sent a similar NDA to Stahl the same day and makes some changes Stahl asks for. Stahl’s West 117 LLC was located on about nine acres of Telephone Road property south of Newport, that was sold for $1.75 million to an LLC with the same Irvine, Calif., address as Allrise Capital, which bought the old Ponderay Newsprint Co. site. “I have sent you an updated, partially executed NDA,” Gentle writes. “Russ still needs to review it, but I figured we’d get it ready for his signature regardless. I am looking forward to our ongoing discussions.” The draft NDA says that the confidential information provided by the city and GDS is proprietary in nature and that the disclosure of it to any other party could result in damages to GDS and/or the city. It says the city is contemplating a change to the power supply and that given the potential financial impacts to the city’s existing service provider, it would like to confidentially discuss retail electric service with West 117.

It says West 117 will not disclose the information, in whole or in part, to any other persons. The nondisclosure agreement required that West 117 not talk to city employees, customers, suppliers or agents without prior written approval from Pelleberg. It says any disputes arising from the NDA be arbitrated in Spokane County. In response to a question from Stahl, Gentle says, “Jurisdiction is Spokane County because of the confidential nature of the work we will be discussing. “PO county is pretty small. Also our attorney in this matter is in Spokane.”

Pelleberg gives OK for letters blasting PUD April 12, Gentle writes Pelleberg that Jimmy Thommes and Jimmy Odem of BitCap are awaiting Pelleberg’s “green light” to send their open letter to The Selkirk Sun newspaper. The Miner also received a similar letter. “I think it (the draft letter) looks fine as is,” Pelleberg responds. The letter outlines how difficult the PUD has been to work with and says BitCap will not go forward with their project. Pelleberg gave his blessing beforehand to a December letter from Stahl proposed to PUD commissioner Curt Knapp that asked the PUD to reconsider rate increases. “I think it looks good,” Pelleberg writes Gentle the morning of Dec. 15, 2020, in response to her question asking his thoughts on Stahl’s draft letter dated Dec. 14. “It certainly gets right to the point of the issues with the PUD and even some of the issues within the County and their problems with attracting business,” Pelleberg wrote to Gentle. Stahl’s letter, which also went to county commissioners on Dec. 15, differs somewhat from the letter to which Pelleberg responded, but was substantially the same. Both say the PUD was forcing the closure of West 117

LLC.

PUD response In response to questions from The Miner in April 2021 PUD General Manager Colin Willenbrock wrote that the PUD was protecting ratepayers by demanding crypto-currency miners pay appropriately. “The PUD has recently been labeled by two crypto-mining companies, with support from the Newport City Administrator, as being ‘difficult to work with,’” Willenbrock wrote. “What they truly mean to say is that the PUD has been unwilling to subsidize their energy-intensive mining operations on the backs of all other ratepayers. “These crypto-mining companies demand to pay less than the cost to produce and deliver the electricity, and they think ratepayers should cover the rest. In return, they offer promises of dozens, if not hundreds, of jobs and economic stimulation – an obvious tactic to seize on the perceived desperation of our community following the closure of Ponderay Newsprint. Yet, these same crypto mining companies refuse to even pay the application fee associated with a request for service.” Willenbrock said PUD staff spent time and resources on site visits, indicative pricing, policy and technical reviews and contract negotiations. “When these crypto-mining companies don’t get what they want, they resort to more empty promises and public disparagement,” Willenbrock wrote. He said that the PUD industrial rates are among the lowest in the country, with the current industrial rate less than half of the national average and comparable to the new energy delivery rate being offered by Douglas PUD in East Wenatchee – the lowest-cost utility in the state and host to many data centers and crypto miners. The Miner is awaiting another batch of public records at the end of the month.

The Newport Miner THE VOICE OF PEND OREILLE COUNTY SINCE 1901

Wednesday, January 26, 2022

www.pendoreillerivervalley.com

Volume 120, Number 1 | 2 Sections, 16 Pages $1.00

Newport police officer in Bonner jail School resource officer charged with lewd conduct, sexual abuse of minor BY DON GRONNING AND SOPHIA ALDOUS OF THE MINER

MINER PHOTO|DON GRONNING

Crowd appreciates Newport bull rider Cody Casper of Newport was one of the first qualified rides at the Professional Bull Riders Spokane Classic event in Spokane Saturday. The good-sized crowd at the Arena had to show vaccination proof before entering. Here they applaud Caper’s ride. See story, pictures in the sports section

Rosencrantz: Commissioners need to act soon about Allrise

NEWPORT – Former Newport School District Resource Officer Raul A. Lopez, 37, resigned the Newport Police Department and turned himself in to face two counts of lewd conduct with a minor child under 16 years old, and two counts of sexual abuse of a child under the age of 16 years old, according to a press release from Newport Police Chief Mark Duxbury. Lopez is currently in the Bonner County jail, with bail set at $150,000. The charges were unrelated to Lopez’s work with the Newport School District. “The thoughts and prayers of the Newport Police Department staff are with the victim and the victim’s family,” Duxbury said. “We are sickened, shocked, and angered by the alleged conduct of Mr. Lopez.” According to a statement of probable cause, the Bonner County Sheriff’s Office notified the Newport Police Department on Tuesday, Jan. 18, of serious criminal allegations against Lopez, who was a Newport police officer at the time. The alleged crimes occurred in Oldtown, where Lopez lives. Lopez was immediately placed on administrative leave and his peace officer powers were suspended pending an investigation, Duxbury said. Lopez resigned from his position as a police officer with the Newport Police Department on Friday, Jan. 21, according to the news release. He had been with the department since 2018. Before that he worked for the Bonners Ferry Police Department. Duxbury said in the news release that on Sunday, Jan. 23, the Bonner County Sheriff’s Office notified the Newport Police Department that Lopez turned himself SEE OFFICER, 2A

County could see millions in real property tax on bitcoin miners

BY DON GRONNING OF THE MINER

NEWPORT – Pend Oreille County needs to be taking steps now to ensure it would get the fair tax value on the old Ponderay Newsprint site purchased by Allrise Capital in 2021 in a bank-

ruptcy auction. Pend Oreille County Commissioner Robert Rosencrantz led a discussion of Allrise Capital Monday afternoon with fellow commissioner John Gentle and attended remotely by Brian Smiley. Pend Oreille Public Utility District chair Curt Knapp attended the

discussion in person. “This has consumed me for a while,” Rosencrantz said. He said he wanted to do a better job conveying how important the mill site sale and the resulting crypto currency mining operaSEE ALLRISE, 2A

Owner of vehicle in hit and run dies by suicide NEWPORT – A female who owned the vehicle law enforcement believes was involved in a hit and run fatality in Newport on Jan. 17 has apparently died by suicide, according to the Washington state Patrol (WSP) and the Newport Police Department. “The registered owner of the vehicle was found at her residence by Newport police on Friday (Jan.21),” WSP Sergeant Greg Riddell said. “By all accounts it

appears to be a suicide. It had not been determined if she was in fact the driver as the investigation was still ongoing and we had not interviewed her, because she was working through an attorney.” Newport Police Chief Mark Duxbury told The Miner that the woman was the owner of the vehicle SEE HIT AND RUN, 2A

MINER PHOTO

In this photo from March 2018 former Newport police officer Raul Lopez is sworn in at a Newport City Council meeting. Lopez previously worked at the Bonners Ferry Police Department.

B R I E F LY Pend Oreille County email out NEWPORT - If you tried to send an email to a Pend Oreille County employee Monday or Tuesday, Jan. 2425, they didn’t get it. The county’s email isn’t working. “We got a lot of calls,” said Christine Rahoun of the commissioners’ office. “People were asking if so and so still worked here.” People sending outside emails to the county would

get a message that the email could not be delivered. As of deadline Tuesday, Rahoun said it is unknown when the email would be back and that the problem wasn’t on the county’s end.

Public meeting on proposed ice rink KOOTENAI – Bonner County Sheriff Daryl Wheeler

is hosting a community informational meeting on the sheriff’s complex and proposed ice rink for Sandpoint. The meeting is Saturday, Jan. 29 at 1 p.m. at the Kootenai Community Church, located at 477 N. Main Street. In this presentation, the sheriff will provide a factual and historical background on the properties in question and what it means to the taxpayer.

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Remembering Gladys Bishop

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BY SOPHIA ALDOUS OF THE MINER

NEWPORT – The Pend Oreille River Valley community lost a longtime figurehead when Gladys Bishop, former Roxy theater owner and philanthropist, died Sunday, Jan. 23. Born in Spokane in 1935, Bishop was 87-years-old when she passed. She resided at River Mountain Village Advanced Care Unit in Newport. Mostly recognized for her tenure as the owner of the Roxy Movie Theater in Newport, along with her husband Dick, who passed away in 2007. Gladys Bishop is remembered for her kindness, honesty, solid work ethic and vested interest in the area’s youth. She was also a dedicated member of the Newport Soroptimist Club, raising money for community improvement projects and scholarships for high school girls. “Gladys was the icon for an outstanding small town business women and citizen,” says former Newport Miner and Gem State Miner publisher Fred Willenbrock, who knew Bishop for over 30 years. “She and her husband Dick worked extremely hard for decades to keep the Roxy Theater going for the community they loved, providing

entertainment for everyone and jobs to many young people. She will be missed by many.” Dick Bishop and his father, Charles, who also owned The Roxy and The Rex Movie Theaters in Priest River, built the Roxy in 1951. The Newport Roxy opened in 1952, with local businesses running ads in The Miner welcoming the movie theater to town. Dick and Gladys purchased it in 1956, living in the apartment upstairs and raising their children, Jodee and Craig. The first film shown under the couple’s ownership was the Marilyn Monroe and Jane Russell classic, “Gentlemen Prefer Blondes.” “She was a delight to talk to and her mind was very sharp,” says Sue Mauro of the Pend Oreille County Historical Society. “She possessed a great memory.” The Bishops ran the Roxy for over 50-years until Dick’s death in December 2007, when it was sold to Kevin and Cara Wright. The theater shut down in 2015 and sat empty until it was purchased and reopened by Jason and Brittany Totland in 2017. Jason Totland was one of the many loSEE BISHOP, 8A

THE NEWPORT MINER

HIT AND RUN: FROM PAGE 1

believed to have been driven in a hit and run that killed Shileen L. Poitra, 33, of Spokane on Monday, Jan. 7 in Newport. A vehicle of interest, a black 2018 Toyota Highlander, was located in Newport by the Newport Police the morning of Tuesday, Jan. 18 on First Street near Calispel Avenue. Surveillance video from the evening of Jan. 17 at a service station on Highway 2 showed a dark colored SUV heading into Newport just prior to the crash. The vehicle, with extensive damage to the passenger side front end, has been impounded into WSP evidence. At approximately 6:45 p.m. on Monday, 911 received a call from a resident hearing a collision at 333432 on Highway 2, across the highway from Stratton Elementary School. Several minutes later, 911 was advised a pedestrian had been struck and was lying in the snow bank along the highway. The reporting party stated the pedestrian was unresponsive and aid was requested. Additional information indicated the causing vehicle had left the scene and headed north towards Newport. Debris from a Toyota was found scattered at the scene. Evidence from the scene indicated Poitra was walking south on Highway 2, along the northbound shoulder of the roadway, when a vehicle struck her. The vehicle came to rest in a snow bank on the south side of the roadway, backed up and immediately fled the scene. Poitra was pronounced dead at the scene. She was identified with assistance from the Spokane County Medical Examiner for the Pend Oreille County Coroner. Duxbury said that the incident is still an active coroner’s case and could not comment further at this time. WSP Detective Ryan Spangler is seeking any information or witnesses of the collision or information, as this is still an open investigation. Anyone with information is requested to contact Detective Spangler at 509-227-6644 or Ryan.Spangler@wsp. wa.gov.

ALLRISE: Intended and unintended consequences require attention FROM PAGE 1

tions that will apparently be taking place there are to the county. He said the county needed to be taking a more active role in overseeing what’s happening there to make sure the county gets all the sales tax its owed on machinery brought there. Rosencrantz pointed to a Jan. 21 news release from Allrise CEO Ruslan Zinurvov, who is also CEO of Merkle Standard, a subsidiary formed to market the PNC site to investors for data mining. A call to Zinurov was not returned. In the news release, Zinurvov announces the purchase of 13,500 cypto data mining computers to be delivered to between July and September 2022. “The miners will then be deployed at the company’s 225 MW flagship site in Eastern Washington,” the news release reads. “This Washington facility is the key to the vision of building a power infrastructure and to drive Merkle Standard’s mission of becoming one of North America’s largest mining platforms.” Merkle Standard purchased the miners from BITMAIN, a Chinese firm. “This purchase from our strategic partner, BITMAIN, reflects Merkle Standard’s commitment to becoming one of the most efficient and sustainably focused miners,” said Ruslan Zinurov, CEO of Merkle Standard in the news release. Rosencrantz said he looked up what buying that many data miners would cost and it came to $150 million, he said. According to Assessor Jim McCroskey, the equipment can be and is taxed as real property, Rosencrantz said. Taxed at .09%, that would come to $1.35 million of revenue for the county, Rosencrantz said. “That could fund other services, provide a lot of property tax relief to

county homeowners,” Rosencrantz said. The intended and unintended consequences of big data mining operations require significant attention from county commissioners, he said, to ensure the county gets all the tax money its owed but also to deal with things like noise pollution. “We as a board need to treat this with urgency,” he said. “You either take control early or you’re not in control. We need to take control and do it soon.” He brought out other things about Allrise, including the fact that the company banks in the Caymen Islands, a notorious tax haven. “That does give me pause,” he said. “It is very hard to reach into the Cayman Islands for liability issues.” Smiley asked what actions the county should do right away. “As soon as possible, since Ruslan is on record saying they’ll get 13,500 of these machines delivered to the site, start putting into place a monitoring mechanism for when they’re delivered, a corresponding mechanism for when after they’re delivered we make sure we’re getting the sales taxes paid into Pend Oreille County’s treasury.” Rosencrantz said he didn’t know what the law was but that is goal would be to see that Allrise had paid all the sales tax before they were allowed to put in the machinery. He said he had asked county Assessor Jim McCroskey what it would cost to accurately assess real property on the site and was told $50,000. Rosencrantz said that the board could let McCroskey know they would fund the $50,000. “That’s a step that as a board we can

take,” he said. Gentle asked Knapp what he thought. Knapp said the county and PUD would benefit from working together. Getting the Allrise subsidiary that will run the PNC site up and running with that much power is complicated. “It will be the largest contract I think this county has ever seen,” Knapp said. He said he had met with the Allrise people twice and they were frank that they had never been in a power market that big. “Buying power for a paper mill is a little bit different from buying power for a bit coin operation,” he said. Knapp said the crypto operations weren’t unique to Pend Oreille County. He said the PUD has to protect ratepayers from big energy users defaulting on their bill, such as the amount of power being requested by Allrise. “If they’re late paying their bill in two weeks, our ratepayers are out a million and a half dollars,” he said. Smiley said he understood that concern and wanted to the PUD and county to work together, but wanted it to be a two

way street. “If there are things that you need from us, please make that clear,” Smiley said. “And the filp side of that as well. I want to be real careful that we don’t step on each other.” Gentle pushed back against the idea that Allrise should be placed under extra scrutiny. “There are studies for this and laws for this,” Gentle said. He said the oversight was already in place through the development regulations and the conditional use permit. Gentle asked if commissioners are called to be in control of any businesses, “The clearest standard that I would set is what other business have we set these sort of benchmarks on?” he said. He said he was talking about the idea that if a business is outside the noise ordinance, that the power would be shut down. “I would really question the legality of that,” He said. “I would say that generally speaking this idea that we have tremendous oversight over a business and none over the others is almost automatically a discrimination lawsuit, in my estimation. We have to be very careful with

how this is set up and worded.” Gentle said it was unclear who gets the sales tax on the miners. “As far as I understand, they’re buying this from China and China got the sales tax,” Gentle said. Rosencrantz said that there are a number of tax opinions on this. “And it’s all over the board,” Rosencrantz said. “It’s a developing body of law.” Gentle said he understood Rosencrantz to be “spitballing” throwing up ideas to see what was possible and to utilize the county’s leverage. “I don’t know that’s a conversation that’s been through this room before,” Gentle said, the idea that county commissioners were going to lean on a business if they didn’t like how the business was operating. “Is that a standard we’re holding for any other companies or businesses here?” Gentle said the county needed to be careful about exceptional rules beyond what the county applies to other businesses. He recommended consulting with county Prosecutor Dolly Hunt first.

OFFICER: Charges not related to job with Newport School District FROM PAGE 1

into investigators and he was booked into the Bonner County Jail. As this is an ongoing investigation by the Bonner County Sheriff’s Office Duxbury said he couldn’t provide any additional information. According to the statement of probable cause, Lopez is accused of sexually touching a 13-yearold girl resulting in the two charges of sexual abuse of a child is under 16. Lopez is also accused of manually penetrating

the girl’s vagina and forcing her to touch him, the basis for the two charges of lewd conduct with a minor child under 16. Before he turned himself in, Lopez had a counseling session with an Idaho Health and Welfare psychotherapist on Jan. 21. The psychotherapist is a mandatory reporter and he also reported that Lopez had told him he was under investigation for sexually abusing the girl, but would not go into details. Lopez was hired by the

Newport Police Department in 2018. According to Newport School District Superintendent Dave Smith, Lopez was the district’s SRO for four years. “Myself as well as my administrators who worked with Mr. Lopez are both angered by this and sad,” Smith said in an email to The Miner. “Chief Duxbury and I have discussed the path going forward and he believes we should have someone (SRO) in place in the next month or two.”

The Newport Miner THE VOICE OF PEND OREILLE COUNTY SINCE 1901

Wednesday, February 2, 2022

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Environmental group wins appeal

Volume 120, Number 2 | 2 Sections, 16 Pages $1.00

Hearings examiner agrees county didn’t examine impact of big zone change BY DON GRONNING OF THE MINER

NEWPORT – Pend Oreille County didn’t adequately evaluate future environmental impacts that could come as a result of changes the county wants to make as it updates its Comprehensive Plan. That was the ruling of the hearings examiner who granted Responsible Growth * Northeast Washington’s appeal of the county’s Determination of Non Significance regarding a proposed zoning change in a ruling last week. The county, through the Department of Community Development Director Greg Snow, proposed rezoning a large part of the county as part of the update, eliminating the Public Lands designation and putting those properties in Rural Land and Natural Resources Land categories. Under the county proposal, two more zones would be created, Industrial and Commercial. “The county really needs a better understanding of how (the rezone) would affect the county,” RG * NEW attorney David Bricklin said after the ruling. “They need to reevaluate the significance of their proposal.” Bricklin said such a sweeping proposal as rezoning a large part of the county requires an Environmental Impact Statement. Pend Oreille County commissioner Brian Smiley was disappointed with the ruling. Commissioners haven’t decided whether or not they will appeal to Superior Court. “After all the careful effort the decision is of course disappointing,” Smiley said. “I really don’t know whether we will appeal the decision or not, I imagine we will discuss or options with staff over this next week and come up with a plan for going forward.” Smiley said the ruling shows the Growth Management Act doesn’t work for small counties. “After all the careful effort by county staff and costly consultants to include community input, and follow all the rules and requirements of the GMA this ruling shows me that common sense land use and planning updates for small rural counties have become nearly impossible under current state law,” Smiley said.

COURTESY PHOTO|SUSAN SWAN

Dimming of the day Photographer Susan Swan referenced the Bonnie Raitt song for this photo take off her old porch looking West; a couple hundred feet off the river, near Ione Friday, Jan. 28.

SEE RULING, 2A

PUD,TerraPact reach deal for rail corridor use Port, PUD officials disagree on agreement process between port, TerraPact

Gentles say no conflict of interest

BY DON GRONNING OF THE MINER

BY MICHELLE NEDVED OF THE MINER

USK – The Pend Oreille PUD negotiated a $4,267,500 payment to TerraPact, the company the Port of Pend Oreille sold the management of its rail corridor to through a non-exclusive easement agreement in late 2020. As part of their contract with TerraPact, the port will receive $1,066,875 of the PUD’s payment, in addition to the

$1.9 million the port received for the easement sale. Port Manager Kelly Driver said until the Port receives the $1,066,875 payment, they do not have plans for how it will be used. The payment is due to TerraPact by mid-March. “Once it is received, the Port will look at opportunities which have the potential to increase rail shipments, employment, and other possibilities which benefit the

County and our citizens,” Driver wrote in a letter to The Miner, dated Jan. 11. The PUD uses the railroad’s right-of-way for placement of its infrastructure and has long paid rent for its use. Throughout 2020, PUD General Manager Colin Willenbrock said he and Driver met on various occasions to negotiate the PUD’s continued use of the

NEWPORT – Conflict of interest was one of the things Pend Oreille County commissioner Robert Rosencrantz brought up last week during the commissioners’ discussion of Allrise Capital, the firm that bought the former Ponderay Newsprint Company site. Rosencrantz made the point that appearance of conflict of interest is a conflict. “I’m really sensitive to this issue because in my previous career, undisclosed conflicts can kill

SEE PORT, 8A

SEE GENTLES, 2A

B R I E F LY Commissioners want to hear from past commissioners NEWPORT – The Pend Oreille County Board Of Commissioners is inviting all previous commissioners to a Mentorship Session Tuesday, Feb. 22, at 1:30 p.m. at the Old County Courthouse, 4th & Scott, in Newport. CLASSIFIEDS Follow LIFE us

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Previous county commissioners will be the guests of honor at the board meeting, providing a mentoring session with the current board. The current commissioners would like to hear any advice, proudest successes, or interesting stories from their predecessors’ terms in office.

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Former Priest River teacher faces lewd conduct, child sexual abuse charges SANDPOINT – A former Priest River Lamanna High School teacher is scheduled to appear in First District Court this Friday, Feb. 4 on charges of lewd conduct, and child sexual abuse after allegedly having sex with a minor last fall. According to a Bonner County Daily Bee story, Sarai Lynn McCormick, 37, of Ponderay was charged in connection to events on Oct. 30 at a Priest River residence involving one of her students. The prosecutor’s office would not release the statement of probable cause to The Miner Newspapers before McCormick made her first appearance in court and the judge read her the charges. McCormick was arrested on Friday, Jan. 21, but did not spend the night in jail after posting $50,000 bail the same day, the Bee reported. The maximum sentence for lewd conduct is life in prison. Child sexual abuse carries a maximum sentence of 25 years. Both can also include a $50,000 fine.

According to witness interviews with school officials and law enforcement, the Bee reported that McCormick attended a Halloween party at a private residence on Oct. 30, 2021, and arrived at the house allegedly intoxicated, bringing gelatin shots and a liquor bottle to the party. According to the Bee, witnesses alleged that McCormick provided the alcohol to the underage attendees. One witness allegedly told law enforcement that he saw McCormick making out with the victim at the party before the two left the house. The witness said a small group of underage attendees left the party in search of McCormick and the boy, finding them in McCormick’s vehicle parked near the house. McCormick allegedly became angry and drove the car further down the street to avoid the teens, according to the witnesses. The next morning after the party, McCormick was filmed on Walmart security footage purchasing emergency contracep-

tives, according to The Bee’s reporting. The victim did not talk about the abuse in the forensic interview because he didn’t want anyone to get in trouble. A Bonner County Sheriff’s Office detective told the victim that PRLHS principal Matthew George said he would not punish the students if they were forthcoming and cooperated with the investigation. “Obviously due to this being a personnel issue we can’t say much, but we can share that we followed all policies and procedures through this and that the employee has resigned,” West Bonner County Superintendent Paul Anselmo said in an email to The Miner. “Mr. George has made it work so that our students will have a certified teacher.” After learning this the victim revealed the alleged abuse by McCormick. Since the victim is not over 16 years of age, the event qualifies as lewd conduct. Sixteen is the age of consent in Idaho. According to news reports,

the victim told the other children at the party what had happened between him and McCormick and was described by family and peers as being sad and troubled for days after the event. According to court documents, the students were made to delete all photos and videos of McCormick at the party after she and the witnesses all discussed remaining silent about her attendance and actions, the Bee reported. That didn’t happen as rumors soon began spreading at the high school about McCormick’s behavior. Formal allegations became known to law enforcement a few days after the party and police decided to investigate the rumors after a PRLHS staff member and the victim’s mother gave information concerning McCormick’s conduct. Referring to court documents, a staff member reported to the school counselor that she saw McCormick acting “flirty” with the victim the week prior to the alleged abuse, the Bee reported.

GENTLES: Kim Gentle looking into legal action against libel FROM PAGE 1

your career,” he said during the commissioners’ discussion Jan. 24. “And I saw this happen a bunch of times, including to people who are important in my life and they just didn’t see it coming.” Rosencrantz said after hearing in open session fellow commissioner John Gentle refer to his wife, Kimberly Gentle and her work as an energy consultant, he looked into it. Kimberly Gentle is a Port of Pend Oreille commissioner. Rosencrantz said when searching, he found a story from a Nebraska newspaper that referenced both Kimberly Gentle and Monty Stahl working for the German firm Northern Data. On its website Northern Data describes itself as a global B2B technology company developing, using and selling solutions on vertically integrated high-performance computing (HPC) infrastructure. That includes cloud computing and bitcoin hosting services. Stahl sold land on Telephone Road to Allrise for $1.75 million, Rosencrantz said. Stahl had bought the land for $159,000 in 2018, built a building and put

in some bitcoin mining equipment and sold it in 2021, Rosencrantz said. Among other things, Rosencrantz proposed establishing policies for monitoring and enforcing conflicts-of-interest. In response to questions from The Miner following the discussion, John Gentle said he is still learning to bifurcate his work from his wife’s work. He said that, while he understands the sentiment behind “appearance of a conflict is a conflict,” in this case that is inadequate. “Conflict of interest has a legal threshold that can largely be summed up by saying I can not vote or write legislation that benefits me financially,” he said. Since county commissioners have next to zero authority as it pertains to independent businesses in the county, he said this will largely prove to be a moot point. “Just the same, I am aware of the hyperbole around the issue and I lean on my prosecutor for clarity in these matters,” he said. In response to questions from The Miner about a conflict of interest in her role as a port commissioner, Kimberly Gentle said she wouldn’t

respond to the questions as a port commissioner. “Any response regarding Port matters will be from the collective Port Board of Commissioners,” she said. “With that in mind, I will respond as a citizen. There is no legal conflict of interest or an appearance of a conflict of interest.” She said she is a vice president for Northern Data and informed the Port board when she took the job. “To my knowledge, Northern Data has no connections with Allrise,” she said. Kimberly Gentle said she has been harassed and is considering legal action. “I am currently in the process of gathering information regarding the ongoing harassment and libel which I have endured for several years,” she said. “I am investigating how best to proceed with legal action, and I have no further comment at this time.” John Gentle said he was proud of his wife’s work, which he said has taken a toll on her. “In spite of the attacks and the clear and present opposition, my wife insists on leveraging her network to bring jobs

to this county,” he said. “Kimberly chooses to try and make a difference here, even when the cost to her physical and emotional well being are high.” John Gentle said he and Kimberly continue to work to bring jobs to the county. “We will continue to fight for jobs here and we will solicit every working professional we have occasion to towards that end. In the final analysis, if she is the common denominator, then the only real question is why didn’t others do more?” he said. “You can well imagine that while I choose to maintain a professional separation, I am tremendously proud of her work here. Unequivocally there are families in this county that are fed, clothed, and sheltered as a result of her work.” He said the he and Kimberly have taken in distressed youth. “We have also seen all of the ugly things this county has had to endure, the magnitude and frequency of which seem to me to be growing,” he said. John Gentle was approached by Allrise Capital when they were bidding on the PNC site. He wrote a letter of

support for them when they were attempting to buy the PNC site in a bankruptcy auction. The other active bidder was the Kalispel Tribe. His wasn’t the only letter of support for Allrise. Former Newport City Administrator Russ Pelleberg wrote one, as did Economic Development Council Director Jamie Wyrobek. Kimberly Gentle worked with Pelleberg on the prospect of Newport forming its own utility. She gave a presentation to the city on behalf of her former employer GDS and Associates that was later walked back by her boss, who described some of her presentation as “overly optimistic.” Both Gentles, Pelleberg and Wyrobek were photographed at a local restaurant celebrating Allrise’s winning bid with Allrise CEO Ruslan Zinurov and other Allrise officials. John Gentle posted the photo, with the caption that thanked the people who worked to bring Allrise here and ended with, “I would like to extend a heartfelt congratulations to Allrise Capital. Welcome to Pend Oreille County. We look forward to years of prosperity!”

RULING: County can appeal to Superior Court by Feb. 21 FROM PAGE 1

Pend Oreille County commissioner Robert Rosencrantz said that commissioners should not discuss the comprehensive plan updates while litigation is still ongoing. “Until Comp Plan litigation is resolved it’s best to not say anything that might disturb the process,” Rosencrantz said. County commissioner John Gentle did not comment on the ruling. Hearings examiner David W. Hubert ruled the county erred by not considering the possible impacts of the rezone, instead opting to evaluate them later when a

specific project is proposed. Hubert said such an approach could result in loss of opportunity for environmental review. Hubert also noted that the rezone would allow new uses in the rezoned lands. “It is undisputed in the record that uses previously prohibited in the ‘Public Lands’ zone that are now allowed in the redesignated zones, for example uses such as residential, commercial, industrial, master planned resorts, recreational vehicle parks, etc., without limitation by development regulations or environmental regulations may present an environmental impact on

the land identified, within the newly proposed zones,” Hubert wrote in his decision. The county went through a checklist to come to a Determination of Non significance as to whether the State Environmental Policy Act required an Environmental Impact Statement review, or some other environmental mitigation in updating the comp plan. The ruling comes after a Zoom hearing Dec. 2, in which both sides were represented by attorneys. Nathan G. Smith, a consultant the county has used for years, represented the county. RG * NEW was represented by

David Bricklin and Zachary Griefen. The county planning commission has been working on the comp plan update since 2019. The planning commission has had its meetings on hold pending the outcome of this decision. The county has a couple options following the ruling. They can appeal to Superior Court by Feb. 21. According to Bricklin, they could also do a mitigated Determination of Non Significance, addressing things the hearings examiner said in his ruling. Bricklin said he believes a real review of the environmental impacts of the rezone would

require an Environmental Impact Statement. In any event, further environmental evaluation is necessary, Hubert ruled. “To defeat the appeal of this matter, the record produced by Pend Oreille County …. must demonstrate that environmental factors were considered …,” Hubert wrote in the decision. Deciding whether a full environmental review is needed isn’t a matter of balancing whether the beneficial aspects of a proposal such as the zone change outweigh its adverse impacts, he wrote, but rather whether such a proposal has any probable significant environmental impacts.

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Wednesday, February 9, 2022

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Volume 120, Number 3 | 2 Sections, 16 Pages $1.00

28-year-old man charged with killing mother Bond set at $250,000 in murder of Newport woman BY MICHELLE NEDVED OF THE MINER

MINER PHOTO|MICHELLE NEDVED

Jacob Mitchell, 28, is charged with second-degree murder for the killing of his mother, Newport resident Carolyn Thompson-Mitchell. He made his first appearance in Pend Oreille County District Court Tuesday morning.

NEWPORT – A 28-year-old man made his first appearance in Pend Oreille County District Court Tuesday morning, charged with second-degree murder for the shooting death of his mother, 64-yearold Carolyn Thompson-Mitchell of Newport. Jacob Tyler Mitchell faces up to life in prison and a $50,000 fine if convicted. District Court Judge Robin McCroskey set his bail at $250,000. According to a probable cause statement read in court by prosecutor Brooks Clemmons, Mitchell called 911 Sunday evening at 6:52 p.m., telling the dispatcher that he had killed his mother. “I hurt my mom. She’s dead. I shot her,” he allegedly said. When Newport Police Officer Todd Aannerud arrived at the home in the 100 block of South Fea, Pend

Oreille County sheriff’s deputies were administering aid to Thompson-Mitchell near the front door of her home until medical personnel arrived. She had been shot in the head. Mitchell was standing in the front yard with his hands on his head. Thompson-Mitchell was pronounced dead at 7:11 p.m. A handgun was located on the front porch area of the home. According to the probable cause statement, when asked what happened, Mitchell allegedly said he didn’t know. “I lost my mind,” he allegedly told police. “I love my mom. I had to do what I had to do.” Mitchell is being represented by public defender Brett Billingsley. His arraignment is scheduled for Thursday, Feb. 10 in Superior Court. If he makes bail, he is not to leave the state of Washington or have any firearms.

Two new nominees for Alumni Hall of Fame

Data miners arriving at Ponderay Properties site

BY SOPHIA ALDOUS

Can’t be installed until conditional use permit approved BY DON GRONNING OF THE MINER

USK – Ponderay Industries, the subsidiary of Allrise Capital, the firm that bought the former Ponderay Newsprint Co. site, is starting to bring the data mining computers and the modular data centers that will house them to the former PNC site, according to Ponderay Industries CEO Todd Behrend. The company has run into obstacle after obstacle as it attempts to turn the former papermaking site into a crypto currency miner. “We discovered the site is zoned R5 Residential,” Behrend said. The mill had been operating under a conditional use permit when it was a paper mill, he said. The company has applied for a conditional use permit. The county is looking for a hearings examiner to conduct a hearing on the permit, Behrend said. The hearings examiner the county has used for a couple years retired, Behrend said, and the county hasn’t got one lined up yet. The Kalispel Tribe requested an extension of the time to comment on the Conditional Use Permit, Kalispel Tribe Natural Resource Department spokesman Mike Lithgow said. Lithgow said initially Allrise thought the site would be grandfathered in under a past CUP. “They said there was a CUP granted in the 1980s,” Lithgow said. “But the county didn’t have conditional use permits then.” The tribe requested the initial documents but didn’t get any, he said. The tribe had a number of questions about the checklist, but isn’t necessarily against using the site for crypto currency mining. “The Kalispel Tribe would like it to be clear that we are not in opposi-

OF THE MINER

Newport – There are two new prospects for the Newport High School Alumni Hall of Fame (HOF). Lola (Earl) Rickey and Kervin Waterman were both recently nominated for the HOF, which recognizes the accomplishments and achievements of NHS graduates. Actor Cheyenne Jackson was also nominated

last November. Rickey, a 1975 graduate, was nominated by Colleen Larkoski for her community service and exceptional contributions to the Newport school District. Rickey has been a local 4-H leader, an active Diamond Lake Grange member since she was a teenager, was the Newport Rodeo and the Spokane Rodeo SEE HOF, 8A

Barn full of hay burns NEWPORT – South Pend Oreille Fire & Rescue fire fighters were called to a structure fire on Allen Road in the south part of the county Friday night, Feb. 4. “Crews arrived on scene to find a large barn fully involved that had already collapsed,” SPOFR public information officer John Nicholas said. “Our priority was structure protection of two small sheds near the fully-involved barn.” One of the small sheds COURTESY PHOTO|MIKE NOKES

SEE ALLRISE, 2A

South Pend Oreille Fire&Rescue firefighters work to put out a barn fire

SEE FIRE, 2A

B R I E F LY McMorris Rodgers holds Newport Town Hall Feb. 23 NEWPORT – U.S. Rep Cathy McMorris Rodgers, R-Spokane, will hold a series of town hall meetings, including stops in Newport and Elk Wednesday, Feb, 23. McMorris Rodgers will be at VFW Post 5924 at 39716 N. Camden Extension Rd., in Elk, from 11:30 a.m. to 12:30 p.m. Space is limited, so admittance will be first come first served. Later that day, from 3-4 p.m., McMorris Rodgers will be at the Hospitality House, 216 S. Washington Ave., in Newport. Space is also limited there, so it will be first come first served at the Hospitality House, as well.

Former Newport police officer gets court date SANDPOINT – A former Newport police officer and former Newport School District Resource Officer Raul A. Lopez, 37, made his initial appearance in First District Court in Sandpoint Wednesday, Feb. 2. Lopez faces two counts of lewd conduct with a minor child under 16 years old, and two counts of sexual abuse of a child under the age of 16 years old. The charges were unrelated to Lopez’s work with the Newport School District, according to a press release from Newport Police Chief Mark Duxbury. Lopez resigned from his position as a police officer with the Newport Police Department on Friday, Jan. 21 and turned himself in to the Bonner County Sheriff’s Office on Jan. 23. At last Wednesday’s hearing Lopez’s bond was set

at $150,000 and he remains in Bonner County Jail. His arraignment is tentatively scheduled for Feb. 16.

Pend Oreille River Passage Trail looks to next phase OLDTOWN – The Priest Community Forest Connection (PCFC) has released a Request For Proposals (RFP) for phase III of the Pend Oreille River Passage Trail. This phase of the trail will continue from Tri Pro Forest Products towards the Albeni Falls Visitors Center in Oldtown. The design-build RFP includes a wetland boardwalk and gravel trail and is due on Friday, April 1. More information is available from PCFC at 208-661-2073 or at www.communityforests.com.

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Bonner County commissioner seeks another term

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SANDPOINT – The filing period for mid-term elections is fast approaching, but there are a few candidates that have decided to get started early. Incumbent Bonner County Commissioner, District 2 Jeff Connolly recently announced he would be running for a four-year term. County commissioners alternate between two and four terms, according to Idaho Title 31. “As a lifelong citizen of this county I see opportunities for the continuation of our longtime values, and opportunities for expanding and improving our quality of life,” says Connolly. “I

will to continue bringing forward viewpoints that reflect the best interests of our citizens.” A Bonner County resident for his entire life, Connolly, 63, says he believes he has witnessed large amounts of Connolly change, both good and unplanned. “There are many areas of county government that have improved, but I believe there is room for progress that reflects Bonner County’s values and spectacular environment,” Connolly says. Connolly is in his fifth year on the Bonner County Board of Commissioners. He says land

use/revision of the comp plan through a collaborative process is one of his top priorities. Population growth and the effects it is having on the county infrastructure needs to be addressed, through citizen involvement, he adds. “Citizen advisory committees are an important and necessary part of strong and suitable involvement that I respect and encourage,” Connolly says. Working on property tax reform with Senator Jim Woodward and Representative Sage Dixon, with the intent to help minimize the impacts of growth, is also a prime action item for Connolly. He says collaborating with all municipalities in Bonner

County to bring concerns and ideas forward is paramount to the stability of the County. “Growth is happening, and that growth should pay for the necessary upgrades to the County infrastructure and not be put on the backs of the longtime residents,” Connolly says. Continuing to improve working relationships with elected officials is an important aspect of an effective government system, Connolly adds, one that he takes seriously. “Communication with county employees and citizens, listening to all points of views and responding as best I can is important to me and to our citizens,” Connolly says. “I plan on keeping

Love is in the air with Valentine’s Day themed activities BY SOPHIA ALDOUS OF THE MINER

With Valentine’s Day fast approaching, those who haven’t made plans yet with a special someone can start to feel the pressure---the flowers, the gifts, the reservation at that restaurant that has yet to be made. Or does it? There’s no need to panic or break the bank. There are plenty of area events that are low cost or free that Valentines can enjoy. And if you don’t have a Valentine, that’s okay too. These events have plenty of love for everyone.

Make them a card at your library When it comes to Valentine’s Day cards, handmade is always better. Priest Lake Library hosts two Valentine craft days Wednesday, Feb. 9, 11 a.m. to 4 p.m. and Monday, Feb. 14, 12:30-4 p.m. Both events are open to all ages. On Feb. 14 there will be a Valentine’s Book Bouquet Class where participants will make a flower bouquet from scrapped book pages. Register for either or

both days by emailing plplibrary@ hotmail.com or call 208-443-2454. The Ione Library in the Pend Oreille County Library District has a Valentine craft day Friday, Feb. 11 from 11 a.m. to 12 p.m. The Newport Library will have an all day craft event Saturday, Feb. 12 from 10 a.m. to 5 p.m. To RSVP to either of these events, call 800-366-3654 or go to pocld.org/event-directory.

Free chocolate and wine? Yes, please The Only Local Farmers Market is hosting a free Valentine Wine and Fudge tasting Saturday, Feb. 12, 2-5 p.m. Come by for a tasting of fine wines and creamy kettle fudge to create Valentine’s Day pairings. The farmers market is located at 464138 Highway 95 in Sagle.

Sing a love song (or any song) Come out for karaoke at the Pend Oreille Playhouse Friday, Feb. 11, 7-9:30 p.m. Cost is $5 at the door and includes a free popcorn. Concessions will be open to purchase snacks & drinks and will also fea-

my door open and I will do my best to bring different needs and views towards the middle ground in a collaborative manner. Government does not need to be intrusive, but it does need to be inclusive.” The primary election is May 17. The general election is Nov. 8. Other county positions up for election include clerk Michael Rosedale, coroner Robert Beers and assessor Donna Gow. Gow already has a challenger in the form of Grant Dorman, a recently retired Professional Land Surveyor from Selle Valley that announced his candidacy Monday, Feb. 7. The candidate-filing period starts Monday, Feb. 28 and ends Friday, March 11.

FIRE: FROM PAGE 1

ture some special Valentines mixed drinks, both alcoholic & non-alcoholic. Pick a song with “Love” in the title and automatically be entered in a drawing to win a ticket to the next in-person play at the theater. The Playhouse is complying with the state mask mandate. Singers will not be asked to wear masks while on stage, due to seating setup. The Playhouse is located at 236 S. Union Ave, Newport, 99156.

For the sports and food lovers Edgemere Grange No. 355 is hosting a Super Bowl Bingo Night Saturday, Feb. 12. Doors open at 5:30 p.m. and game starts at 6 p.m. There will be nine rounds and one jackpot round. Dress in team gear and the one showing the most team spirit wins a free card for jackpot round. Go to the www.facebook. com/Edgemere-Grange and vote for your choice of dinner for the evening—nacho taco bar or hot dog chili bar. Bingo cards are $1 a piece and meals are $4. Snacks and drinks are 50 cents. For more information, go to www.edgemeregrange355.wixsite.com.

held firewood that was extinguished with only minor damage. According to the property owner, the barn had been filled with multiple farm tractors and supplies, lumber, hay, as well as miscellaneous tools and equipment. “We used about 11,000 gallons of water on the fire,” Nicholas said. SPOFR responded to this incident with 12 responders, including two engines, a brush truck, a medic unit, three water tenders, and one command staff. Fire District 4 provided mutual aid with three responders on E46 and one command staff. Crews battled the fire until almost 10 a.m. Saturday morning. The cause of the fire as yet is undetermined. There were no injuries and no animals in the barn. With around five tons of hay in the barn, the fire is likely to smoke and smolder for several days, Nicholas said.

ALLRISE: 14 people currenlty employed at former PNC site FROM PAGE 1

tion to this proposal at this time,” Lithgow wrote in comments about the checklist. “Between the missing information and misinformation in the SEPA checklist, we are unable form a position on this proposed development.” The comment period was extended at the tribe’s request, but has since closed. The county’s Department of Community Development ran a legal notice in late December that they had received a completed State Environmental Policy Act checklist from Ponderay Industries in mid November. According to the legal notice, the county intended to issue a Determination of Non Significance for the project. The legal notice mentions the need for a right of way permit, a storm water permit and the Washington Department of Fish and Wildlife’s hydraulic project approval. A conditional use permit isn’t mentioned. Calls and emails seeking clarification from Greg Snow, community development director, were not returned. According to a news release from Merkle Standard, another subsidiary formed by Allrise Capital, Allrise has spent more than $1 million in the last eight months to keep the paper machine in a condition to allow a restart. “Initially it appeared as though there could be a restart of the machine,” the news release reads. “However, power transmission

supply studies completed by the Bonneville Power Administration (BPA) determined that restarting paper machine operations was not feasible in the near future due to the type of electrical demand of such manufacturing. The study did reveal that up to 100 megawatts of power was possible if the load is a large-scale computing operation.” A subsequent BPA study has been requested by the PUD to determine the available power and timeline to provide a framework for any future plans. The studies are paid for by Allrise ahead of time, Behrend said. According to the news release from Merkle Standard, Ponderay Data, LLC, another Allrise subsidiary, outlines what it expects to do on the site. Initial mining operations began in December of 2021 inside the basement of the paper machine building, according to the news release. “This project was started to not only begin mining operations; but, to also provide heat in the building which continued to preserve the paper machine itself. All employees initially hired by Ponderay Industries have been cross trained to assist in pivoting operations into the high-density computing and crypto currency mining operations of Ponderay Data, LLC. A larger power supply agreement is being negotiated for the new company Allrise formed, Merkle Standard. Merkle recently partnered with the largest

manufacturer of Bitcoin mining equipment in the world; Bitmain Technologies. “Together, they plan to build one of the largest data center and mining operations in North America,” the news release reads. “This partnership is Cascade Digital Mining and is expected to bring 35 to 50 new, full-time, well paying jobs to the site. Hiring is expected to begin as soon as the new Electric Supply Agreement with PUD is finalized, and the conditional use permit is approved.” The news release said Brookfield Renewable Energy and the PUD are working together with Merkle to bring this contract to a timely close. The target date for the power contract is March 1, 2022. The conditional use permit would then be the final hurdle to clear before hiring additional employees. In anticipation of a timely finalized power supply agreement and approval of the conditional use permit, the news release says Merkle has secured electrical design and construction services with Knight Construction, US Electric, and Craig Ripplinger of Ripplinger Engineering Laboratories. According to the SEPA checklist, Ponderay Data intends to install 150 modular data centers to house the cyrpto mining computers. The MDCs will be placed in the parking area. The MDCs are 8 feet wide by 20 feet long and 9.5 feet tall. The MDCs can be stacked and could reach 20 feet in height. Putting the MDCs into operation

will require the conditional use permit, Behrend said. “We can store them but to install them we need the conditional use permit,” he said. Behrend said the company has also started taking possession of the crypto mining computers. He said there will be about 600 ASIC computers that will be used to mine bitcoin and 1,200 GPUs that will be used to mine ethereum, another crypto currency. Behrend was giving Economic Development Council Director Jamie Wyrobek a tour of the facility Tuesday. He said representatives of Northern Data, a German crypto currency mining firm had also toured the site. Northern Data is hiring 10 management level people, he said. “They’re good folks,” Behrend said. He said he didn’t see Northern Data as a competitor or a partner. Currently there are 14 people working at the mill site, about the same number that have been there since Allrise purchased the former paper mill site. Behrend said the plan is still to make fiberboard at the site if a power agreement can be reached. For now, anyone driving by the site will see plenty of activity. “Merkle Standard, Ponderay Industries, and Bitmain are all very excited about bringing jobs to Pend Oreille County and look forward to being one of the larger employers in the County,” the news release concludes.

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McMorris Rodgers recalls 2015 visit to Ukraine Wide-ranging questions at town hall meeting

BY DON GRONNING OF THE MINER

NEWPORT – U.S. Rep. Cathy McMorris Rodgers, R-Spokane, spoke of her time visiting Ukraine, her desire to be reelected and fielded a variety of questions when she held a town hall meeting at the Hospitality House in Newport Wednesday, Feb. 23. She spoke the day before Russia invaded Ukraine. “When you think about what’s going on right now with Russia and Ukraine, it’s energy really at the heart of it,” she said. Selling energy is what finances Russian President Vladimir Putin’s government, she said. Opening up domestic exploration is a way to not buy oil or other energy from Russia, and therefore not support its actions in Ukraine. McMorris Rodgers spoke a little of her time in Ukraine in 2015 with the Energy and Commerce Committee, a committee on which she still serves. “I learned during that SEE TOWN HALL, 2A

MINER PHOTO|DON GRONNING

U.S. Rep. Cathy McMorris Rodgers speaks with constituents at the Hospitality House in Newport Wednesday, Feb. 23.

Cheney’s future should be left to Wyoming BY DON GRONNING OF THE MINER

NEWPORT – After the town hall, Cathy McMorris Rodgers sat for a brief interview with The Miner. I asked her if the federal government should regulate crypto currency. She said Energy had held a hearing on it because it uses so much electricity. “People are still learning,” she said. “I fall into that camp.” She said she was still trying to under-

stand the business model of producing crypto currency. She said there has been some progress in forest management, including fire management. There is much more coordination and communication between the various firefighting groups, such as fire districts, the state Department of Natural Resources and the federal Forest Service. I asked her about whether the RepubSEE MCMORRIS, 2A

MINER PHOTO|DON GRONNING

McMorris Rodgers greets Bob Moran. Moran asked if she was going to run again and she said she would.

Merkle Standard partners with Chinese firm BY DON GRONNING OF THE MINER

USK - Merkle Standard, the firm that intends to turn the former Ponderay Newsprint Company site in Usk into one of the largest crypto mining operations in the country, has partnered with BITMAIN, a Chinese firm, according to various news reports. Merkle Standard is an offshoot of Allrise Capital, the firm that bought the former Ponder-

ay Newsprint Company site at a bankruptcy auction. Ruslan Zinurov is CEO of both Allrise and Merkle Standard. According to the Feb. 11 Cointelegraph story, Zinurov said the joint venture between BITMAIN and Merkle Standard will “catapult our growth plan of building one of North America’s largest sustainable digital asset mining platforms.” Merkle Standard issued a press release Jan. 21 that said they had a purchase order to

buy for 13,500 mining rigs from BITMAIN. In the news release Zinurov said Merkle Standard and BITMAIN were strategic partners. The partnership reflects Merkle Standard’s commitment to becoming one of the most efficient and sustainably focused miners, according to the Jan. 21 release. The press release also referred to Merkle Standard’s focus on “developing North America’s most efficient vertically integrated self mining

platform with a negative carbon footprint.” BITMAIN will contribute capital investment along with the team’s extensive engineering and data center development resources to the project, Yahoo Finance reported. Merkle Standard as the majority owner of the joint venture will manage the operations and will oversee the data center development process. Partnering with the maker of the crypto mining computers

makes sense in terms of vertical integration. Vertical integration is when a firm controls the production process from beginning to end. Allrise Capital has invested in Kraken, a crypto currency exchange. Allrise is truly an international company. Zinurov was born in Russia and is married to a Ukrainian woman, according to a July 2020 Kyiv Post story about Allrise buying the SEE ALL RISE, 2A

B R I E F LY Last month for coat drive at library

Who’s filing for candidacy in Bonner County?

PRIEST LAKE – The Priest Lake Public Library is looking for new or gently used coats, mittens, and hats for their annual winter coat drive. All donated clothing goes to children in need. March will be the final month for the coat drive. Bring new or clean, gently used donations to the library, located at 28769 Highway 57, Priest Lake. For more information, call 208-443-2454.

SANDPOINT – The candidate-filing period is open in Idaho, starting Feb. 28 and ending Friday, March 11. The primary election is May 17. The general election is Nov. 8. Below is a list of candidates who have filed with the Bonner County Elections Office as of Tuesday, March 1. Bonner County Assessor: Grant Dorman, Republican. Bonner County Clerk: incumbent Michael Rosedale, Republican. Bonner County Treasurer: Clorrisa Koster,

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Republican. Bonner County Commissioner District 2: incumbent Jeffrey Connolly and challenger Randi Flaherty, both Republican. Bonner County Commissioner District 3: Benjamin Luke Omodt, Republican. Dan McDonald, also a Republican, currently holds the seat. Precinct Committeemen: Scott Herndon, Westmond Precinct, Republican; Maureen Paterson, Edgmere Precinct, Republican and Cornel Rasor, Southside Precinct, Republican.

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‘Good public servant’ passes BY DON GRONNING OF THE MINER

METALINE – Karl McKenzie passed away Feb. 21, at the age of 83, leaving a legacy of public service. “He was one of those people who loved to be doing,” Tara Leininger said. “Karl cared a lot about the community, he really did.” That was a sentiment echoed by others. “It’s a loss to the north end,” PUD commissioner Rick Larson said. Larson said he used McKenzie as a sounding board when Larson was first elected to the PUD.

“He said ‘do what’s right for the people in the county and the north end’,” he said. Former county Pend Oreille County commissioner Steve Kiss said he knew McKenzie a long time. “When I was in high school, he was the town maintenance man and I was helping him sanding,” Kiss said. Kiss shoveled sand while McKenzie drove the truck. Kiss later worked for him when McKenzie managed the Lafarge cement plant. McKenzie served as the last manager for Lafarge. McKenzie was always

MCMORRIS: FROM PAGE 1

lican National Committee was right to censure Liz Cheney and Adam Kinzinger for participating on the House committee looking into the events of Jan. 6. She said she wouldn’t have censured them. “They’re elected by their state,” she said of Cheney and Kinzinger. “It’s up to the people they represent to make that decision.” I asked her if President Biden’s sanctions were enough to deter Russia and whether she saw a reason for American troops to become involved. She said she preferred cutting off Russia’s gas and oil sales to sending in troops. She especially wanted the Nord Stream 2 pipeline shut down. That’s the pipeline that supplies Russian natural gas to Europe. When asked if the federal government should be able to negotiate Medicare drug prices, she said she is working on legislation with bi-partisan support to bring down drug prices, H.R. 19. That bill would close the donut hole and caps out of pocket expenses, she said. The donut hole refers to Medicare, where the insurer pays the first 75% of Part D drug costs up to a certain amount. Then the insured person must pay for all the drugs until another level of spending is reached. McMorris Rodgers says she doesn’t support the plan proposed by Democratic NY Sen. Chuck Shumer. She says that bill will harm pharmaceutical research and development. I asked how she is feeling after testing positive for COVID last October. She said she’s well, but still notices the affects of having COVID. “I don’t know if my sense of taste is right,” she said.

supportive, Kiss said. “He never really had an agenda,” he said. “He was always encouraging. He was a great asset to the community.” Fred Willenbrock owned The Miner newspapers when McKenzie became a Pend Oreille County commissioner in 1992. “He was a nice guy,” Willenbrock said. “He was a good public servant.” Willenbrock said McKenzie’s porch at his home

in Metaline really was a gathering place. “I was lectured to a few times there,” Willenbrock said. Willenbrock said McKenzie was a conservative Democrat who looked out for the people in the north end of the county. “He protected their interests.” McKenzie ran for county commissioner after serving as mayor of Metaline. He served as Metaline’s mayor for 10 years, from January 1976

until December 1985. He also served as a Metaline council member. In those days, the Democratic Party was strong in Pend Oreille County. McKenzie was unopposed in the general election for county commissioner in 1992, but had to beat five other Democrats in the primary election. He did so handily. He won a second term as county commissioner in 1996. Former state Secretary SEE MCKENZIE, 8A

ALL RISE: FROM PAGE 1

Chornomorets soccer stadium in Odessa, Ukraine. Allrise’s founder, Vladimir Nikolayevich Evseev, is from Russia. BITMAIN has already started to advertise for three employees, with a preference towards bilingual workers with English and Mandarin Chinese language skills. The ad, posted on Indeed.com, seeks three data center operators. The jobs would pay $45,000 to $55,000 annually. The work would involve server installation, troubleshooting and repair, as well a daily operation and data monitoring of mining equipment. The workers probably won’t be starting soon, said Todd Behrend, who is CEO of Ponderay Industries, another offshoot of Allrise Capital. Behrend said the crypto currency mining wouldn’t be able to start until it gets a conditional use permit from the county and a contract for power with the PUD. Behrend says the company won’t buy the 13,500 data mining computers from BITMAIN until the permit and power contracts are resolved. The company doesn’t have any of the data miners on site, Behrend said. It has just a few modular data centers that will house the crypto mining computers. Behrend says the crypto currency operation at the former PNC site is just one of many projects Allrise Capital is involved with. The Chornomorets soccer stadium

in Ukraine is one of the high profile Allrise acquisitions, purchased for $7.3 million in 2020. The 2020 Kyiv Post story raised questions about whether Allrise was acting as a front for Leonid Klimov, a former ally of former Ukrainian president Viktor Yanukovych. Yanukovych was removed from office in the 2014 Ukrainian revolution. Zinurov represents himself as a white knight investor bringing foreign money into Ukraine and saving the asset, according to the Kyviv Post story. But skeptics claim that it would not make much sense for a genuine foreign investor to buy such a troubled asset, the Post reported. Suspicions are high that Allrise Capital is an elegant front for Klimov, a form of “ownership laundering.” Zinurov denied the accusations unequivocally and categorically. “The local community has questioned why a U.S. based investment company would buy such a particular type of asset,” Zinurov said in the Post story. “There’s a lot of speculation that we are fronting for someone and are not a real investor or that a local ownership group is standing behind us. Obviously this is not true.” The Miner has made many efforts to speak with Zinurov and others at Allrise, which is headquartered in Irvine, Calif. Zinurov returned an email Feb. 10 saying he would be happy to meet and would set up some dates when he was going to be in the area for such a meeting.

TOWN HALL: ‘I am a big supporter of Medicare Advantage’ FROM PAGE 1A

visit that President Putin has funded the NGOs in Europe, the Non Governmental Organizations in Europe that are antifracking,” she said. “Educating Europeans as to the dangers of fracking. Now fracking is new technology recently developed in the United States. That is the way they’re going down and tapping into the natural gas.” Natural gas has enabled the U.S. to significantly reduce its greenhouse gas emissions, she said. “It’s been that fracking revolution, it’s also been natural gas that has been one of the drivers in the United States leading in bringing down our carbon emissions,” McMorris Rodgers said. She said the U.S. has reduced carbon emissions more than any other country in the world, more than the next 12 countries combined. Meanwhile, China has been increasing theirs. McMorris Rodgers said the young Ukrainians she met in 2015 impressed her. “Just that sense that they were fighting for self-determination and freedom, independence,” she said. “They were young. A lot of the people I met with who were in their government were in their twenties and thirties but they really wanted self-determination and independence. I think about that a lot right now.”

If GOP wins House, McMorris Rodgers wants to chair Energy She said she is excited to run again, particularly if the Republicans retake the House. If that happens, she hopes to be chair of the House Energy and Com-

merce Committee. She was asked about when Medicare Advantage plans might be offered in places like Pend Oreille County. Currently, Medicare Advantage plans aren’t offered here. McMorris Rodgers said she likes Medicare Advantage plans, which are private insurance plans. “I am a big supporter of Medicare Advantage,” she said. “I believe you are better off as an individual if you have choices besides the standard Medicare.” She said the Medicare Trust Fund would be insolvent by 2026. “We need to be securing Medicare now and I believe Medicare Advantage is part of the solution to give seniors more of those options,” she said. She said people who support Medicare for All aren’t talking about Medicare Advantage. She said she doesn’t know what it would take to get Medicare Advantage plans here, but that she will continue to look into it. Another woman asked McMorris Rodgers for a note to encourage her granddaughter, who has been studying Chinese, to go into public service. Another audience member said the girl should look into teaching at the State Department’s National Foreign Affairs training center. Another man asked for enlightenment about investigations in Congress. He said there are quite a few investigations, but in the end virtually nothing happens. “I don’t get it, why spend all this time on the Russian collusion issue?” he said. “And people are lying and nothing happens

to them.” McMorris Rodgers said people were dismayed about what was exposed in the FBI and the Department of Justice. There were a number of people who were abusing power for personal political gain, she said, adding that there were Congressional investigations, but the Attorney General didn’t want to press charges.

Wants Fauci before committee McMorris Rodgers said accountability was foundational to the U.S. form of government. “People have to be held accountable,” she said. “As I think about chairing Energy and Commerce, the very first hearing I want to have is with Dr. Fauci and the scientists from the Barrington Declaration and have them come before our committee.” She said that Fauci and the Centers for Disease Prevention and Control haven’t been before the Energy committee in more than a year, even though the committee has oversight of the CDC.

Local control of schools important Another man asked her opinion on the Freeman School District school board deciding to make masking for students and staff optional, and the financial consequences it had on the district. “Does that sound right, does that sound moral, or does that sound like an ego or is that just trying to make a precedent?” the man asked. “What do you think?”

“Well, I called the Freeman school board members and told them I was proud of them for the vote that they took,” McMorris Rodgers said. She said their action was a defining moment for local control. She said it is generally agreed that local decisions for schools are best. “But what has been exposed to a clarifying moment is that they are being threatened with 87% of their funding if they don’t adhere and comply with what one person is telling them,” she said. The school board members needed to get legal advice and make a stand for local control, she said.

Defended vote on postal reform Miner publisher Michelle Nedved asked her why she voted against postal reform. McMorris Rodgers said she supported much of what was in the postal reform legislation, but couldn’t support how it was funded, which was partially by tapping into Medicare. How should it be funded? “Well, maybe the $8 billion they got for electric vehicles,” she said. A woman veteran told of her negative experiences with the Veterans Administration and Military Sexual Trauma (MST). She said she has PTSD as a result of an assault. “It’s a daily struggle,” she said. McMorris Rodgers said the VA should be able to get her what she needs in terms of counseling. She said she would look into her situation The wide-ranging question and answers covered gun control, the Supreme Court, voting and public trust.