Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, over 135 years after President Ulysses S. Grant signed the Mining Law of 1872 into law, I bring before this body legislation to…
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, over 135 years after President Ulysses S. Grant signed the Mining Law of 1872 into law, I bring before this body legislation to drag it into the 21st century. This legislation at long last provides badly needed fiscal and environmental reforms of mining for valuable minerals in the 11 western States and Alaska.
In bringing this measure before the House, I am pleased to have the strong support of our colleague from California (Mr. Costa), who chairs the Subcommittee on Energy and Mineral Resources of the Natural Resources Committee. Jim chairs the subcommittee that I chaired 20 years ago when I first began this effort to reform the Mining Law of 1872. I am honored that he has taken up the mantle as well.
The Mining Law of 1872 is the last of the frontier-era legislation to remain on the books, with the Homestead Act having long been repealed, not to mention laws regarding carrying your six-gun into a saloon or allowing a posse to hang horse thieves. The basic goal of this law, almost free land and free minerals to help settle the West, has long been achieved. While the minerals produced under this law remain in demand, mining under an archaic 19th century regime is not compatible with modern land use philosophies or social values. This threatens mining, and mining jobs, and is one reason this law must be brought into the 21st century.
Today, as in the 1800s, the Mining Law allows claims to be staked on Federal lands in the West for valuable hardrock minerals such as gold, silver, and copper. No royalty is paid to the true owners of these lands, the American people, from the production of their minerals. Except by dint of an annual appropriations rider, the claims can be sold to multinational mining conglomerates for $2.50 or $5 an acre.
Now, some listening to what I just said may think I am making this up. Free gold and land for $2.50 an acre? That sounds like a fairy tale. My friends, ladies and gentlemen, I am not making it up. This is no fairy tale. This is a pirate story, with the public lands profiteers robbing the American public blind.
Mr. Chairman, billions of dollars' worth of gold, silver, and copper have been produced from American soil without a royalty paid to the true owners of the land, the American people. Those that will recall history will know that the largest bank heists in the world have been the $900 million stolen from the Central Bank of Iraq in 2003; the $72 million stolen from Knightsbridge Security Deposit in England in 1987; and the $65 million stolen from the Banco Central in Brazil in 2005. But, my colleagues, those figures are chump change, chump change compared to the estimated $300 billion in valuable minerals given away for free from America's public lands under the Mining Law of 1872. Incredible. Simply incredible. But, it gets worse.
Being a 19th-century law, it contains no mining and reclamation standards. The result is a legacy of toxic streams, scarred landscapes, and health and safety threats to our citizens from abandoned mined lands. The mayor of Boise, Idaho, and let me restate that State, Idaho, wrote a letter to me recently to state that the city is powerless to protect the integrity of its source of drinking water, which is threatened by a cyanide heap-leach gold mining facility proposed by a Canadian, and I repeat that, a Canadian-based company.
This last September, a 13-year-old girl tragically plunged to her death in an Arizona mine shaft. In reference to an area pocketed with abandoned mine sites, an Arizona mine inspector was quoted as saying: ``It's just a death trap out there.''
The Mining Law of 1872 is the Jurassic Park of all Federal laws. It requires an extreme makeover. Environmental safeguards must be supersized. Federal lands must stop being given away for fast-food hamburger prices. The robbery of America's gold and silver must stop.
Mr. Chairman, the bill I am bringing before the House today would make commonsense reforms by imposing a royalty on the production of these hardrock minerals. Bear in mine that coal, oil, and gas produced from Federal lands have long paid these royalties. The legislation would also put a permanent end to what is known as patenting, the sale of mining claims for the price of a snack at Taco Bell.
Further, it would provide for statutory mining and reclamation standards that are performance-based rather than prescriptive. As well, this would establish a special fund to reclaim abandoned hardrock mines, address the health and human safety they propose, and provide for community impact assistance.
This is a historic debate, a debate that is long overdue. Those who support this legislation, the countless locally elected public officials across the West, concerned citizens across the West, sportsmen and -women across the West, taxpayer advocates across America, bring with them the new-century conviction that corporate interests can no longer have an unfettered ability to reap America's mineral wealth with no payment in return. There must be parameters set and rules to which industry must comply.
I am here to suggest that if we continue under the current regime, that if we do not make corrections, the ability of the mining industry to continue to operate on public domain lands in the future is questionable. The other side will bring up jobs, they will bring up the health of the industry that might be decimated by this legislation. I say we are here to protect mining jobs and to protect the health of the industry and to provide some certainty in the making of financial decisions by the mining industry.
While the Mining Law of 1872 over the years has helped develop the West and cause needed minerals to be extracted from the Earth, we have long passed the time when this 19th-century law can be depended upon to serve the country's 21st-century mineral needs, and do so in a manner accepted by society. Reform of the Mining Law of 1872, I tell my colleagues, is a matter of the public interest, the interest of the American taxpayer, the interest of all Americans who are true owners of these public lands. The name of every American is on the deed of these lands. I urge approval of this legislation.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 1 minute to the gentleman from New York (Mr. Weiner).
Yes.
Mr. Chairman, I include for the Record at this point a letter to me from Chairman John Dingell of the Energy and Commerce Committee, and a letter in response from myself to Chairman Dingell of the Energy and Commerce Committee.
House of Representatives,
Committee on Energy and Commerce,
Washington, DC, October 29, 2007.
Hon. Nick J. Rahall II,
Chairman, Committee on Natural Resources, Washington, DC.
Dear Mr. Chairman: I write with regard to H.R. 2262, the
``Hardrock Mining and Reclamation Act of 2007''. I know it is
your wish for the bill to be considered on the House floor as
soon as possible.
Some of the provisions in the bill establish requirements
for the Environmental Protection Agency and concern the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980. Those provisions are within the
jurisdiction of the Committee on Energy and Commerce. I am
not, however, raising the issue with the Speaker because it
is my understanding that you have agreed that the referral
and consideration of the bill do not in any way serve as a
jurisdictional precedent as to our two committees.
Further, as to any conference on the bill, the Committee on
Energy and Commerce reserves the right to seek the
appointment of conferees for consideration of any portions of
the bill that are within the Committee's jurisdiction. It is
my understanding that you have agreed to support a request by
the Committee with respect to serving as conferees on the
bill (or similar legislation).
I request that you send to me a letter confirming our
agreements and that our exchange of letters be inserted in
the Congressional Record as part of the consideration of the
bill.
Please do not hesitate to contact me if you wish to discuss
this matter further.
Sincerely,
John D. Dingell,
Chairman.
Mr. Chairman, I yield 5 minutes to the distinguished chairman of the subcommittee, Mr. Costa from California.
Mr. Chairman, I yield myself 1\1/2\ minutes.
I say to my colleague from across the river from me in Kentucky that, as he knows, jobs in both our hardrock mining industry and our coal industry are on the decline already. Those jobs have been declining; and as the gentleman so well knows, as well as my colleagues on the minority side, these jobs are declining today because of the technologies that are coming in place.
Look at our coal industry. We're mining more coal as we're producing more hardrock minerals, but with less man and woman power because of the technologies that are replacing man and woman power. It's that simple.
So while the jobs may be on the decline, the production is on the upswing.
I would say as well to my colleagues who raise the specter of here the Democrats go raising taxes again, note this week in the Wall Street Journal, this week the administration, the administration, not the Congress, announced that it's raising the royalty rates for oil and gas from the Gulf of Mexico to 18.75 percent from 16.67 percent for offshore leases to be offered next year. Even with this increase, the gulf will remain one of the lowest tax oil basins in the world.
So let's put this proposed 8 percent royalty on hardrock mining in perspective, please. It's less than half. Let's also keep in mind that hardrock mining is the only industry that pays no royalty on public lands, and all other countries and all States, for that matter, charge a royalty. Companies impose royalties and private agreements on hardrock mines. Let's keep in perspective what we're doing here; and, remember, it was the administration this week that raised royalties on Gulf of Mexico leases.
Mr. Chairman, I yield 3 minutes to the gentleman from California (Mr. Farr).
Mr. Chairman, I yield 3\1/2\ minutes to the distinguished chairman of our Subcommittee on National Parks, Forests and Public Lands, my good friend, the gentleman from Arizona (Mr. Grijalva).
Mr. Chairman, I yield 1\1/2\ minutes to our distinguished subcommittee Chair on Insular Affairs, the gentlelady from the Virgin Islands (Mrs. Christensen).
Mr. Chairman, I yield 2 minutes to the gentleman from New Jersey (Mr. Holt), a valued member of our Committee on Natural Resources.
Mr. Chairman, I would ask the gentleman from New Mexico if he has any additional speakers, because I am prepared to close, as I have the right to close.
Mr. Chairman, on January 28, 1872, Representative Sergeant brought to the House floor from the Committee on Mines and Mining H.R. 1016, the bill that was to be enacted as the Mining Law of 1872. He noted that debate had taken place whether it was worthwhile for the government to sell the mineral lands of the United States, some thought, on some idea of a royalty belonging to the government.
Instead, the Members debating that measure decided to allow for the patenting of mining claims for $2.50 or $5 an acre, depending on whether it was allowed to place their claim because, in the words of Representative Sergeant, ``We are inducing miners to purchase their claims so that large amounts of money are thereby brought into the Treasury of the United States.''
Well, now, perhaps back then $2.50 an acre represented a large amount of money. But I submit it does not today. And the royalty debated back when this law was passed is what, ironically, we are debating today.
Now, the gentleman from New Mexico has said that in order to pay that $2.50 an acre you have to mine the land. I would say that that is an inaccurate description of current law. You do not necessarily have to mine the land. You have to show that there's a valuable mineral that exists therein, which is not a very hard proposition to show these days.
With that noted, let me state that I've engaged in the effort to reform the Mining Law of 1872 these past many years, not just for the apparent reasons, valuable minerals mined for free, the threats to health and human safety from abandoned mine lands, but also because I am pro-mining, I come from a coal mining State, because I no longer believe that we can expect a viable hardrock mining industry to exist on public domain lands in the future if we do not make corrections to the law today.
I do so because there are provisions of the existing law which impede efficient and serious mineral exploration and development. And I do so because of the unsettled political climate governing this activity. With reform, if not coming in a comprehensive fashion, certainly it will continue to come on a piecemeal basis.
As my colleagues come to the floor to vote on this issue, I hope they will ask their staffs just how many letters from how many mining groups have they received in opposition to the pending bill. I hope they'll bring those letters to the floor with them, because I submit there will not be many. And I submit the reason may be, using my intuition, could the responsible segments of the hardrock mining industry, which is the majority, could the responsible segment of that hardrock mining industry want to end the uncertainty that exists over this industry? Could it be that they want a finality to the arguments surrounding their industry? Could it be that they want a basis upon which to make business and future investment decisions?
And hardly today are they screaming pauper. Look at this week's Wall Street Journal headline: ``Gold Rush of 2007. Mining Mergers.''
The price is pretty well up there these days. I think these companies are doing quite well, and they would like to have some finality on this issue. I believe that, with enough courage, as we've seen from elected officials, hunters, sportsmen, fishermen from across the West, we can continue to address the problems facing mining and dovetail our need for minerals with the necessity of protecting our environment.
For at stake here in this debate over the Mining Law of 1872 is the health, welfare, and environmental integrity of our people and on our Federal lands. At stake is the public interest of all Americans. And at stake is the ability of the hardrock mining industry to continue to operate on public domain lands in the future to produce those minerals that are necessary to maintain our standard of living.
I urge the adoption of this legislation.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I ask unanimous consent to modify the amendment by the form that I have placed at the desk.
Mr. Chairman, following 2 days of committee consideration of the bill during which the committee debated 25 amendments, we continued a dialogue with several members of the committee, both sides of the aisle, Democrat and Republican, in order to further perfect the underlying legislation and to keep the fairness of the process open.
This manager's amendment is a result of those deliberations. In summary, the manager's amendment would, one, clarify that valid existing rights associated with existing mining claims would be protected under the act.
Number two, this amendment clarifies that, in addition to paying a 4 percent royalty, existing operations would still need to come into compliance with the act within 10 years.
Number three, this amendment clarifies that the claim maintenance and location fees currently allotted to the administration of the mining claims will continue to be so allotted with the balance going to cleanup of abandoned hardrock mines.
In addition, in this amendment, as requested by the gentleman from Colorado (Mr. Lamborn), user fees assessed by the BLM to process mining permit applications would be used for administration of the mining law program.
The manager's amendment would further limit the purview of section 504 citizen suits to permits issued pursuant to title III of the act as suggested by Mr. Cannon of Utah.
The manager's amendment would clarify that nothing under this act will affect the sovereign immunity of any Indian tribe.
That concludes the summary explanation of the manager's amendment.
Mr. Chairman, I urge an ``aye'' vote.
I reserve the balance of my time.
I yield back the balance of my time, Mr. Chairman.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, I would agree with my friend from New Mexico in only the first three words of the statement he just made, and that being it's a simple amendment. Yes, it's a simple amendment. It helps liberate, it eradicates, it eliminates, it erases, it simply guts the fundamental environmental safeguard of this legislation.
We have struggled for many years to find a statutory standard by which hardrock mining on Federal lands must comply with. This bill states that mining must prevent ``undue degradation of public lands and resources.'' That term is defined as ``irreparable harm to significant scientific, cultural, or environmental resources on public lands that cannot be effectively mitigated.''
And let me stress the use of the words ``that cannot be effectively mitigated.'' It is common practice in this country to mitigate developments, whether it be the construction of a highway, a dam, or a mine. But under this bill, if a mining operation could not be configured under any circumstance to effectively mitigate irreparable harm to save the water supply of a major city, then the Interior Department would have the ability to just say no. The gentleman from New Mexico's amendment would strike the definition in the bill of this term. The amendment would continue a 19th century view that was fashioned in an era when there was no major metropolises in the West. The amendment harkens back to an era that no longer exists. This is a defining moment. This is what we are talking about in the overall thrust of the pending legislation.
Under this bill, we will continue to have mining on Federal lands. I personally believe it will flourish. But the bad actors in the industry, the minority, and I will be the first to readily admit it is a minority, will no longer be allowed on the stage. The responsible industries should be against this amendment because they are the ones, as I said earlier, that want some certainty to their planning decisions so that they can make the investment decisions necessary to run a responsible mining operation with the jobs attendant thereto.
I therefore would urge opposition to the gentleman from New Mexico's amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, will the gentlewoman yield?
I thank the gentlewoman from California for yielding and for offering this very important amendment that does improve and enhance our ability to restore abandoned mine lands and waters.
The underlying legislation would establish an abandoned hardrock mining reclamation fund which would be financed by the royalties that were imposed on operations under the mining law of 1872. The gentlewoman's amendment makes it clear that remedial activities could be done on a river watershed basis.
Again, I commend her for offering this amendment, and we are truly ready to accept it.
Mr. Chairman, I rise only to claim the time in opposition.
Mr. Chairman, during debate in committee over this legislation, the gentleman from Nevada conducted himself in a manner which I highly commend. He offered amendments that were aimed at addressing the concerns and interests of his State and his district. And, frankly, I recognize he has the most at stake here, representing Nevada, the largest gold-producing State in the Nation.
The gentleman offered two amendments. The one he is offering today was one of those amendments. In committee, I could not accept it because we had no discussions on it prior to its appearing as an amendment. But we did offer to continue to work with the gentleman from Nevada, as we have done.
And after having some time to consider the subject matter of his amendment, I am going to accept it, and I would urge my colleagues to do likewise.
This amendment would allocate 50 percent of the revenues received from the proposed new abandoned hardrock reclamation fund back to the States where those revenues were generated.
There is precedent for this arrangement in the Abandoned Mine Reclamation Fund established for coal back in
1977 which so vitally affects my State. The other 50 percent of the revenues would be used by the Federal Government for national priorities.
So, in conclusion, I say to the gentleman from Nevada, you are looking out for your State. I appreciate that; I commend you for it. And I appreciate the manner in which you have approached this overall issue of mining law reform, and I accept your amendment.
Mr. Chairman, I yield back the balance of my time.
Will the gentleman yield?
And I say I accept your amendment without soliciting a pledge for your vote on final passage.
Mr. Chairman, I appreciate very much the gentleman from Utah's concern and his deep involvement in this legislation. What worries me with his pending amendment is the myriad of unintended consequences that may occur.
In 1947, and again in 1955, Congress took out from the operation of the Mining Law of 1872 mineral materials such as sand, stone, and gravel on Federal lands and provided that they could be sold under contracts. However, a loophole was inserted into the law. Under this loophole, if the sand, stone, or gravel was an uncommon variety, it would remain under the Mining Law of 1872.
Now, determining just what an ``uncommon variety'' is has since cost the American taxpayers countless millions of dollars in litigation. The legislation before us today eliminates the distinction and confusion. And we would make all of these mineral materials available through sales contracts. The gentleman's amendment would strike that provision.
In essence, the gentleman's amendment would continue to allow uncommon varieties of mineral materials to be claimed under the Mining Law as revised by this legislation.
I'm not sure the sponsor of the amendment realizes what the result would be for these uncommon variety mining claims to be then subject to the bill's royalty regime and the bill's environmental standards. As such, if we adopted the gentleman's amendment, an 8 percent royalty would then be slapped on any future production from these uncommon variety claims.
Be that as it may, I oppose this amendment. First, the American people receive a return from the disposition of mineral materials through the sales contract. Moreover, this distinction between uncommon and common varieties of sand, stone, and gravel is nothing but a scam. I well recall, as does the gentleman from Oregon, our colleague, Peter DeFazio, the ``great sand scam'' at the Oregon Dunes National Recreational Area. I conducted a subcommittee hearing in Oregon on this issue. One person plastered mining claims over 780 areas of the recreation area where the hearing was held claiming the sand was uncommon. As I recall, his contention was that it had unique silica virtues for making glass. He then demanded $11 million from the Federal Government to buy him out.
I well recall the ``stone-washed jeans scam,'' where this guy located mining claims for pumice in a wild scenic river in New Mexico. He claimed that the pumice was an uncommon variety because you could produce stone-washed jeans with it. Give me a break. I think the gentleman gets the idea.
And just because some special interests lobbyists got this loophole inserted into Federal law in 1955 does not mean it should be condoned today. I view it as a scam, a rip-off. I urge defeat of this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time and merely would restate what I said earlier about the millions of dollars in litigation that the American people have shelled out to determine just what uncommon varieties are. And, therefore, the gentleman from Utah's amendment would merely continue allowing, without royalties being paid and allow being mined for free, these uncommon varieties of sand, stone and gravel being mined from Federal lands.
So I would urge opposition to the amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, this is an amendment that the gentleman continues to push. We had it offered in full committee markup, had debate on it at that time.
When it was offered in committee, I advised him that it did not belong in this bill and perhaps should be considered as a stand-alone piece of legislation after the subject of a hearing. We have not conducted that hearing yet on this matter.
As I said in committee, I do remind my colleagues on the other side that when Newt Gingrich and Company issued their Contract with America, one of its tenets was to reduce the Federal bureaucracy. What the Republican majority ultimately achieved in this regard was the elimination of two Federal entities, the ICC, the Interstate Commerce Commission, which was then recreated as the STB within the Transportation Department. And the other Federal entity that the then- Republican majority eliminated was the Bureau of Mines at the Interior Department.
Now, in a stunning reversal, the Bureau of Mines would essentially be recreated under the guise of a Mineral Commodity Information Agency, I guess you would call that, MCIA. It would enlarge the bureaucracy and increase Federal spending. I repeat, it would enlarge the Federal bureaucracy and increase spending. I keep looking around for my colleague from Arizona (Mr. Flake). Where are you when we need you?
The gentleman's amendment would authorize $30 million a year for this new bureaucracy that the then-Republican majority eliminated when they ran the Congress. This new bureaucracy would have an associated administrator; it would have four assistant administrators; there would be an external affairs office, a public affairs office, even an international affairs office, and who knows how many other offices here and there.
The budget, financial, human resources offices, the human capital management office, the professional development office, the contract management office, yadda, yadda, yadda, I think you get the picture. So this is a whole lot of bureaucracy that would be created based on a proposal that never had a hearing and that was rejected by the Republicans when they were in the majority.
I urge the defeat of the amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I have the right to close, do I not?
May I inquire as to the time remaining.
Mr. Chairman, I yield the balance of my time to the distinguished chairman of the subcommittee on Interior appropriations and my fellow classmate, Mr. Dicks of Washington.
Mr. Speaker, I rise in opposition to the motion to recommit.
Mr. Speaker, this is the day after Halloween and I recognize fully there are still tricks in the air, and this is another trick by the minority in this body. The amendment says report back to the House promptly. I am pretty sure that every Member of this body recognizes what the word ``promptly'' means. It is an amendment by the minority to substantially delay, if not outright kill, the pending legislation. So Members are well aware of this trick, and I urge defeat of this attempt to thwart passage by the House today of bipartisan legislation that has broad support at the local, State and Federal level.
In addition, Mr. Speaker, the effect of this motion would also be to reduce the amount of royalties owed the American people under this bill, under the guise of advocating nuclear energy for that matter, and I see no relationship here. I urge defeat of this motion which would reduce the amount of royalties that would come in to the American taxpayers under this bill.
Now to the segment about loss of jobs.
Due to changes in demands today, it's every Member of this body's knowledge that we may see a decline in the hardrock mining industry and the demand for jobs because of the technology, because of the technologies that are coming online. There's not a one of us who is against those technologies. In many cases, they're cleaner. In many cases, they're safer and they're healthier for our workforce. But that technology does displace man and woman power. It's a fact of our economic realities today.
So the gentleman's motion to recommit is based on unfounded premises, scare tactics, and tricks that we should not adopt; and I would urge defeat of the gentleman's motion to recommit.
Mr. Speaker, I yield back the balance of my time.