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Managing America: Public Land

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Week Ending November 2, 2007

H.R.2262 To modify the requirements applicable to locatable minerals on public domain lands, consistent with the principles of self-initiation of mining claims, and for other purposes.

Title I

No patent can be issued by the Secretary of Interior for a mining claim unless the application was filed before September 30, 1994 and meets other general mining law requirements.

The claims will be subject to paying an 8% royalty of the net smelter return from production. Percentages of royalties will be deposited in accounts set up for that purpose. The royalty rate can be adjusted to related to the value of the dollar based on inflation and the consumer price index. Currently, hardrock mining on federal land does not require paying royalties to the US government.

Patent holders must develop and comply with site security provisions to protect from theft. Any transport of minerals extracted must have with it documentation showing the amount of minerals being transported, the origin and destination. The patent holder is responsible for all documentation from beginning the mining operation through payment of royalties. The records must be maintained for ten years. Interest is charged the patent holder on underpayments of royalties up to 25% of the amount underreported. Penalties will be transferred to the Abandoned Locatable Minerals Mine Reclamation Fund established in this bill.

Title II

Lands not open to mining include land recommended for wilderness designation or otherwise designated as roadless, lands designated as wilderness study areas or National Monuments, lands designated as Wild and Scenic Rivers or are under study for that designation, lands already withdrawn from mineral entry, lands designated as Critical Environmental Concern, and land designated as sacred sites.

Title III

The Secretary must require that mining is done in a fashion that protects the environment, public health and safety from undue degradation and that activities recognize the value of the land to include recreation, wildlife habitat and water supply.

No person can engage in mineral activities that may cause a disturbance of surface resources including land, air, ground and surface water, fish and wildlife unless a permit was issued authorizing that activities. Casual mining, the collecting of geochemical, rock, soil or mineral specimens, are not affected by this bill when collected using hand tools and hand panning. The use of mechanized earth moving equipment, suction dredging or explosives, use of motor vehicles in areas closed to off-road vehicles and the construction of roads, drill pads or the use of toxic or hazardous materials are not considered casual mining.

Permits will not be approved without a maintenance plan including the provisions in this bill. Permits will be effective for no more than ten years. If the permit holder does not begin work in two years the permit must be modified to remain valid. Permits come with the right of renewal providing the terms and conditions of the permit are met. Anyone in violation of this Act, an applicable State or Federal toxic substance, solid waste, air, water quality, or fish and wildlife conservation law may not be issued a permit and existing permits can be suspended if in violation of those laws.

Soil removed must be stored and protected for future back-fill when the mining operation is completed. Drainage areas must be designed to control sediment and prevent erosion.

The mining area’s hydrological balance must not be disturbed and activities must, to the fullest extent possible, be conducted to prevent possible formation of acidic, toxic or other contaminated water. Reclamation to restore unbalanced water conditions and returning the land to its natural grade will be a requirement of permit renewal. All holes must be sealed and structures removed.

Title IV

The Abandoned Locatable Minerals Mine Reclamation Fund is established to finance the reclamation and restoration of US land and water resources adversely affected by past mineral activities. The purpose is to protect the public health and safety, abate, treat and control water pollution, reclaim and restore abandoned surface and underground mine areas and other major mining areas, revegetate and generally return the areas to their natural condition before the mining.

Also established is the Locatable Minerals Community Impact Assistance Fund.

Title V

The bill specifically states as its intent “and to ensure that mineral extraction and processing not cause undue degradation of the natural and cultural resources of the Federal lands'”, that the mining operations will be monitored no less than once yearly and that anyone complaining that they are adversely affected by mining operations gets a response in 10 days. If the complaint is related to imminent danger to the environment or public health and safety the investigation will begin immediately.

Any person can initiate a civil suit, to compel compliance, against any alleged violations. The suits will be brought against the secretaries of Interior and Agriculture. The Secretaries must first be given notice in writing of the intended suit and no action can be brought if the Secretaries have commenced prosecuting a civil or criminal action against the alleged violator. The court is free to charge legal costs to either party in the suit. The Secretaries will first issue notice to the violator and give 30 days to abate the activities. That time can be extended.

Permits can be revoked for knowingly making or making any false or inaccurate or misleading material statement in any mining claim, notice of location, application record report plan, failure to abate a violation, failure to comply with an order or refuse a permit audit, maintain adequate financial assurance or failure to pay fees. Fines can run to $50-,000 per day of violation and not less than $10,000 per day of violation. Knowing violations can also pull prison time up to 2 years.

Sponsor:  Rep. Nick Rahall II (D-WV-3^rd)

Vote: On passage Passed by the Yeas and Nays: 244 - 166 (Roll no. 1033).

On motion to recommit with instructions Failed by the Yeas and Nays: 170 - 240 (Roll no. 1032).

 The Motion to recommit requires the bill to be reported back to the House with an amendment to limit the amount of royalties to any mineral that is used in the manufacture of any technology used for the production of solar energy or nuclear energy. On motion to recommit with instructions Failed by the Yeas and Nays: 170 - 240 (Roll no. 1032).

Cost to the taxpayers: "CBO estimates that implementing the bill would increase discretionary spending by $16 million in 2008 and $267 million over the 2008-2012 period, assuming appropriation of the necessary amounts. We also estimate that enacting H.R. 2262 would reduce direct spending by $10 million in 2008, $206 million over the 2008-2012 period, and $382 million over the 2008-2017 period. Finally, we estimate that the bill would have no impact on revenues in 2008, but would increase them by $160 million over the 2009-2012 period, and $310 million over the 2009-2017 period."

Earmark Certification:  

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MORE INFORMATION

AMENDMENTS

Amendment offered by Mr. Rahall.

An amendment numbered 1 printed in House Report 110-416 to clarify that `valid existing rights' associated with existing mining claims would be protected under the Act. It would clarify that in addition to paying a 4% royalty, existing operations will still need to come into compliance with the Act within 10 years; would clarify that the claim maintenance and location fees currently allotted to administration of the mining laws will continue to be so allotted with the balance going to clean-up of abandoned hardrock mines, subject to appropriations; would clarify that user fees assessed by the BLM to process mining permit applications will be used for administration of the mining law program; would limit the purview of section 504-citizen suits--to permits issued pursuant to title III of the Act; and finally, would clarify that nothing under the Act will affect the sovereign immunity of any Indian Tribe.

Agreed to by voice vote

Amendment offered by Mr. Pearce.

An amendment numbered 2 printed in House Report 110-416 to strike the definition of `undue degradation' in the legislation.

Agreed to by voice vote

Amendment offered by Ms. Matsui.

An amendment numbered 3 printed in House Report 110-416 to state that river watershed areas may be considered as eligible and as priorities to receive funding from the Abandoned Locatable Minerals Mine Reclamation Fund.

Agreed to by voice vote

Amendment offered by Mr. Heller.

An amendment numbered 4 printed in House Report 110-416 to redirect 50 percent of the funds deposited into the Hardrock Reclamation Fund to states in proportion to the royalty funds generated there.

Agreed to by voice vote

Amendment offered by Mr. Cannon.

An amendment numbered 6 printed in House Report 110-416 to strike section 517--Mineral materials.

On agreeing to the Cannon amendment Failed by recorded vote: 175 - 240 (Roll no. 1031).

Amendment offered by Mr. Pearce.

An amendment numbered 7 printed in House Report 110-416 to establish the Mineral Commodity Information Administration into a role in the Department of Interior. This administration would have the Minerals Information Team (MIT) to collect, analyze, and disseminate information on the domestic and international supply of, and demand for, minerals and mineral materials critical to the U.S economy and national security. The amendment would remove the MIT from under the U.S. Geological Survey and establish it as a stand-alone agency within the Department of the Interior and would increase MIT's staff in order to perform the new and expanded functions authorized in the amendment.

On agreeing to the Pearce amendment Failed by recorded vote: 173 - 244 (Roll no. 1030).

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