Congressman Rahall has introduced legislation, H.R. 699 to reform the law that governs the mining of gold, silver, copper, uranium and other minerals. For more than a decade, TCS has advocated for reforms to the century old law to ensure taxpayers receive a fair return for mining operations on federal lands. Unlike other extractive industries the mining industry pays no royalty to the federal government and leaves taxpayers with billions of dollars in clean-up costs.
Read TCS’s letter to the House and fact sheet on the H.R. 699
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One hundred and thirty-seven years ago, Congress enacted the federal law that governs the mining of precious metal on federal land. Since its adoption in 1872, this law has not been changed and has given away billions of dollars of taxpayer assets—taxpayer owned land and valuable minerals such as gold, silver, copper and uranium—to mining companies and developers. Representative Nick Rahall (D-WV) has introduced a bill, H.R. 699, the Hardrock Mining and Reclamation Act of 2009 that will bring these anachronistic policies into the 21st century.
H.R. 699 addresses three important critical issues with the 1872 mining law:
Permanently ends the giveaway of public lands. Under the 1872 law, the government sells land at 19th century prices while allowing the buyer to reap 21st century profits. Today, federal lands are sold for no more than $5 an acre--considerably below current market value. Not only have mining companies been able to gain title to land valued at tens of millions of dollars for as little as tens of thousands of dollars, but the land can be flipped for development for other purposes, including commercial enterprises, such as condominiums, ski resorts and casinos. H.R. 699 prohibits the further sale of federal land to hardrock mining companies by eliminating the patent system, a relic of the gold-rush era.
Imposes a modest royalty for minerals extracted on federal lands. Unlike other extractive industries, companies that mine for gold, silver, copper, uranium and other precious metals do not have to pay a fee when operating on federal land, essentially allowing these valuable minerals to be given away for free. In contrast, the oil, gas and coal industries pay more than 12% royalty, and they and the hardrock mining companies may pay even more when mining on private, state or tribal lands. H.R. 699 imposes a modest 4% royalty on existing mines and an 8% royalty on the value of all precious hardrock minerals mined from federal land.
Shifts clean-up costs from taxpayers to the mining industry. Under the 1872 law, taxpayers are saddled with hefty clean-up costs from waste and damages left behind from mining operations. These damages have been estimated by the EPA to cost upwards of $50 billion.
H.R. 699tackles the costs of environmental damage from several angles. The bill: 1) addresses the current liability for previously abandoned mines by directing royalty funds to pay for their clean-up; 2) prevents future taxpayer liability by strengthening environmental standards to prevent costly future damage; and 3) holds mining companies accountable through strict bonding requirements to cover any damage that does occur - including ongoing treatment for any damage to water sources that may continue well after mining activity ceases.
Public lands are taxpayer assets, and should be managed in a way that preserves their value, ensures a fair return from private interests using them for profit and avoids future liability. The structure of the Mining Law of 1872 fails by all of these measures. H.R. 699 begins to addresses these century-old policies and protect taxpayer interests.
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