Power struggle

MARQUETTE - A judge ruling on a lawsuit involving an easement dispute between Granot Loma property owner Tom Baldwin and the Alger Delta Electric Cooperative has set a new hearing in the case for later this month.

Marquette County Circuit Court Judge Thomas Solka said in a written order the hearing will determine whether Baldwin is a member of the electric cooperative.

"A decision on the disputed issue of whether defendant is a member of the cooperative and subject to its bylaws, or a non-member person who has been paying for and receiving electricity from the cooperative without membership, is necessary before ruling on the motion for summary disposition of the complaint for declatory judgment," Solka wrote in his decision.

Attorney Karl Numinen, representing Baldwin, said he was pleased with the judge's decision. Numinen had argued for more time to explore the issue of Baldwin's alleged membership during a prior hearing.

"The judge will be conducting an evidenciary hearing and this is what we were asking for all along," Numinen said. "We're getting to have our day in court."

The session is scheduled for 1:30 p.m. March 29.

"We're certainly not enthusiastic about having to work through these kinds of issues with members in this way," Alger-Delta General Manager Tom Harrell said. "It is our contention Mr. Baldwin is a member. But if he doesn't think he's a member, that's his right ... that's what this hearing will be about."

In the lawsuit filed by Alger-Delta against Baldwin, the electric cooperative wants Baldwin to grant an easement for 15 notches along his property bordering Marquette County Road 550 to anchor guy wires for new electric lines being strung from Marquette north to Big Bay.

Baldwin said in the past he should be compensated for what he considers a taking of his property. He said in negotiations the electric cooperative offered him $2,000. He is asking for $200,000.

In 2007, the Kennecott Eagle Minerals Company applied for Alger-Delta membership to receive electric service to its proposed mine on the Yellow Dog Plains. In order to provide that power, Alger-Delta is upgrading the size and capacity of the existing circuit and is adding a second circuit to its Big Bay utility line. The cost of those improvements is being paid by Kennecott.

Baldwin said he believes Kennecott will make significant profits from the mine and he should not have to give up his easement for next to nothing to benefit Kennecott.

In Alger-Delta's bylaws, members agree to give the cooperative right of way easements without compensation to furnish electric service. Anyone refusing to grant an easement is subject to cost of line changes made necessary by the refusal.

The pivotal question in the lawsuit focuses on what will happen if Baldwin refuses to grant the easement to Alger-Delta. Alger-Delta is not asking the court to force Baldwin to grant the easement.

Attorney Terry Burkhart, representing Alger Delta, said the cooperative will give Baldwin until April 1 to decide whether he will grant the easement.

If he doesn't, the cooperative will re-engineer the project and build around his property. The would then expect to charge Baldwin for the cost, which was estimated to be between $75,000 and $150,000.

"It's his choice to make," Burkhart said previously. "This project is going to be completed whether he grants the easement or not."

Judge Solka listed several issues in his decision that he ruled are undisputed facts based on the verified pleadings, exhibits and affidavits of the parties.

Those issues ranged from Alger-Delta revising its easement request of Baldwin twice since January 2009, to Baldwin having paid Alger-Delta for a number of years for electric service, to the cooperative having in its possession an application for membership signed by Baldwin and witnessed that is dated Oct. 6, 1987.

John Pepin can be reached at 906 228-2500, ext. 206. His e-mail address is jpepin@miningjournal.net.