Responsible development of mineral resources is critical to economy and environment
(28/01/2008)

The Senate Energy Committee has held its second hearing on Reform of the Mining Law of 1872. Currently, Colorado leads the Nation in the surge of mining claims, with the number of claims rising by 239% in the last four years as it produces significant quantities of gold, silver, gypsum and molybdenum, whose prices have recently climbed.

"Today, Colorado and the American West are experiencing a modern day 'mineral rush' while our mining laws are stuck in the 19th century," said US Senator Salazar. "Today's hearing is a positive step forward to begin thoroughly examining mining law reform and bringing mining law into the 21st century."

Colorado has approximately 23,000 inactive or abandoned mines. These mines already do or have the potential to pollute waterways, mar mountainsides and damage our natural heritage. In 2006, the Senate Environment and Public Works Committee sent Senator Salazar's "Good Samaritan" legislation to the floor. That legislation encourages community groups, companies, and individuals to clean-up abandoned mines under the provisions of a permit issued by the Environmental Protection Agency (EPA), which exempts them from liabilities outside the strict obligation to complete a carefully considered clean-up plan. State approval and full public participation is required in every instance. Senator Salazar will reintroduce this legislation and will continue to push for its passage as comprehensive mining reform is deliberated.

This hearing is the second to begin addressing mining law reform. There were three Colorado witnesses testifying before the committee: Crested Butte Mayor Alan Bernholtz, mining law expert James F. Cress, and international mining royalty systems expert James Otto.

Senator Salazar said: "There is no denying that hard-rock mining has played a vital role in the development of the western States. When Ulysses S. Grant signed the Mining Law in 1872, few could have envisioned the growth and transformation the West has undergone in the 135 years that have passed since that moment. In 1872 the West was a different world. The population of the free territory of Colorado was only about 50,000 people, but was growing rapidly largely due to the growth of the mining industry. Settlement of the West was the primary motivation behind the Mining Law and the other major federal land-grant laws of that period, and looking back those policies largely succeeded. In fact, the gold and silver rush of the late 19th century helped put Colorado on the map.

"Today, Colorado and our neighbor states in the west are experiencing a new "mineral rush." As global market prices for molybdenum, gold, uranium, and copper have climbed rapidly, the pace of new mining claims has exploded. Colorado leads the nation in this claim surge: the number of active claims rose 240% between 2003 and 2007, from about 5,400 to about 18,400.

"This surge in claims also makes many deeply uncomfortable due to the proximity of many of these new claims to some of our nation's most treasured national parks and natural monuments. Active claims within five miles of the Grand Canyon have grown from just five in 2003 to more than 800 today. Furthermore, local communities are becoming increasingly skeptical about the impacts of new major mining operations.

"In some respects it is incredible that the Mining Law of 1872 still stands today. In 1872, hard rock mining was considered the "highest and best use" of mineralized lands. Over the years, mining has more or less maintained its position of priority over other land uses. An undeniable principle of our discussion today is that our land use priorities have evolved. Federal mining policy must acknowledge that our public lands are valued not only for their mineral content, but also for their water and natural resources, recreational value, and wildlife habitats.

"Furthermore, I believe there is consensus that the hard-rock mining industry - like the oil, gas, and coal industries - must pay some kind of royalty or rent for the right to extract mineral resources from our public lands. The lack of a federal revenue stream from mining operations on federal lands has particularly hindered efforts to address the critical issue of the environmental, health, and safety risks posed by abandoned mines. There are of course many questions regarding the structure and implementation of a federal royalty system, and I look forward to an in-depth discussion of this issue.

"Responsible development of our mineral resources is critical to our economy and our environment. Hard rock minerals are vital to the production of countless products, and the mining industry employs thousands of people across the country. We must find a way to ensure that mineral development occurs in a manner consistent with the needs of mining communities and the protection of the environment, particularly our water resources.

"Finally, I am committed to making cleanup of abandoned and inactive mines a priority in this legislation. The EPA estimates that there are half a million abandoned mines around the nation, and that the cost of cleaning them up could approach $50 billion. Good Samaritans - the people and companies who are willing to clean up mine sites in whole or in part, even though they are not legally responsible - deserve greater certainty and reduced liability for actions they perform in the service of their communities. Good Samaritans are critical to addressing the less fortunate aspects of the history of the mining industry.

"I believe we are closer than we have ever been in the past to moving forward with legislation that will allow Good Samaritan cleanups to take place. Toward that end, I plan to reintroduce a bill in this session of Congress that builds upon the work of the Western Governors' Association, the EPA, and the progress we made on the bill I introduced in the last Congress. I look forward to working with my colleagues to encourage the clean up of abandoned mine sites. I welcome the members of our distinguished panels and look forward to discussing these important issues."