Cortez Journal

Norton urges reforms to mining law

December 11, 2001

By JOHN HEILPRIN
Associated Press Writer

Mining law at a glance

By The Associated Press

Some key dates in the formation and history of the 1872 Mining Law:

• Gold discovered in the foothills of the Sierra Nevada in 1848.

• First general federal mining law, "An Act granting the Right of Way to Ditch and Canal Owners over the Public Lands, and for Other Purposes," takes effect in 1866.

• President Ulysses S. Grant signs into law the General Mining Law of 1872 giving free access to mineral-rich federal lands and titled as an act to "promote the Development of the mining Resources of the United States." The first national park, Yellowstone, also was created that year.

• Antiquities Act of 1906 allows presidents to act without congressional approval to create national monuments and safeguard objects of historic and scientific interest, removing some lands from mining.

• Mineral Leasing Act of 1920 authorizes the secretary of the Interior to charge permit and lease fees on fossil fuel and fertilizer minerals including coal, oil, gas, oil shale, potassium, sulfur, potash and phosphate.

• Wilderness Act of 1964 denies free access to hard-rock minerals in some wilderness areas.

• Mining and Minerals Policy Act of 1970 requires the interior secretary to report annually to Congress on mining law.

• Federal Land Policy and Management Act of 1976 gives the Interior Department’s Bureau of Land Management environmental regulatory authority over public lands.

• Surface Mining Control and Reclamation Act of 1977 creates royalty and cleanup provisions and an abandoned mine reclamation fund for coal.

• Reagan administration’s Interior Secretary James Watt in 1980 puts into effect the first mining regulations under the 1976 act to say mines must comply with all existing state and federal environmental laws.

• Clinton administration’s Interior Secretary Bruce Babbitt begins reviewing mining regulations in 1997, adopts changes to include environmental provisions in Nov. 2000, and they take effect in Jan. 2001.

• Bush administration’s Interior Secretary Gale Norton in Oct. 2001 changes Clinton mining regulations, removing environmental provisions but keeping fiscal requirements.

 

WASHINGTON — Durable yet outdated, the little-changed 1872 Mining Law crafted to help pick-and-shovel prospectors open up the West may get a serious look next year in Congress.

The Bush administration wants a bigger role for states in enforcement, inspections and managing permits, while some members of Congress want stronger environmental controls.

But virtually everyone is coming to the view that the government should start collecting millions in royalties on gold, silver, copper, uranium and other valuable minerals extracted from federal lands.

Interior Secretary Gale Norton wrote lawmakers who oversee natural resources that she hoped Congress could "resolve long-standing and contentious issues" in its 2002 session.

"The existing framework ... has served the nation well," Norton said. Updating it would "further protect taxpayers and help us achieve more effective administration of the mining program."

Environmentalists disagree, blaming the lack of safeguards in the law for widespread contamination. The Environmental Protection Agency estimates that 40 percent of Western watersheds have been polluted by mining.

The critics cite as an example bankrupt and abandoned gold mines leaking acid and heavy metals into streams from Alaska to Southern California. A half-million closed mines dot the landscape nationally, with cleanup costs estimated in the tens of billions of dollars.

"The West is settled. Now, we need some protection for the people who settled there," said Lexi Shultz, legislative director of the Mineral Policy Center.

The conservation group filed a suit last month challenging Norton’s revisions of environmental restrictions on hard-rock minerals imposed by President Clinton just before he left office. Norton’s revisions are due to take effect Dec. 31.

More than one-third of the western United States, including Alaska and Hawaii, is government land and most of it is available for mining. But the mining law’s biggest impact is in a minerals-rich region centered in Nevada that extends from Salt Lake City to Sacramento.

While eliminating the government’s authority to tell miners they can’t dig on public land where they’ve staked claims, Norton affirmed a Clinton administration requirement that mining companies post bonds to cover 100 percent of their cleanup costs in case they go bankrupt.

The last time Congress tried seriously to overhaul the 1872 Mining Law was in 1994, just before Democrats lost control of both the House and the Senate. The legislation failed over mining industry concerns.

West Virginia Rep. Nick Rahall, the senior Democrat on the House Resources Committee, said he was encouraged by Norton’s latest call to action.

"Ironic she’s doing it at the same time she’s gutting Clinton administration regs," said Rahall, who has been waging a 15-year campaign to rewrite the mining law. "But those are on the environment. I will definitely insist that her fiscal concerns be followed through on and coupled with environmental reforms."

The fiscal changes that both Norton and the industry want include making permanent the existing annual claim fees of $100 per year for each 20 acres, whether or not a mine is in operation.

Norton also said Congress should look at imposing royalties for the first time on hard-rock mining. An anathema to the industry and Western lawmakers in the past, a royalty of some kind is now recognized as virtually inevitable.

"We believe it’s fair to pay one, but we also believe it should be balanced," said Jack N. Gerard, president of the National Mining Association.

Gerard’s group said it can live with a 5 percent net royalty based on sales revenues minus production costs. Congressional Budget Office estimates put hard-rock mineral sales from federal lands at $650 million a year, with net proceeds of $97.5 million. That would mean about $5 million a year in royalty payments.

Democrats are pushing for a gross royalty of 8 percent on the wholesale price of the minerals extracted, the same royalty paid on some coal from federal lands.

That would produce royalties totaling $52 million a year.

Oil and gas and other coal companies pay gross royalties of 12.5 percent.

 

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