Final Class Assignment- Reform of the 1872 Mining Act- Due 11:00 AM Monday March 7, 2005

There has been much discussion of the 1872 Mining Act. Congressman Jim Gibbons, NV, recently solicited suggestions from his constituents on how the Mining Act should be reformed. Your final assignment in GEL 130 is to respond to one of the six questions in the survey attached to Congressman Gibbons’ letter, which is reproduced below. You are completely free to take any position you desire on the subject. You will be graded on the clarity of your presentation, and most importantly, your demonstration of knowledge of the issues and documentation of supporting evidence for your arguments. In other words, this is intended to be a research paper, not an opinion piece, and should be properly referenced. A good place to begin your investigations is with the Congressional Research Service Briefing “IB89103 Mining on Federal Lands.” http://www.NCSEonline.org/NLE/CRSreports/Mining/mine-1.cfm?&CFID=19197659&CFTOKEN=76511986 - _1_1

The papers are due at the start of class on Monday, March 7. We will follow up the assignment with a class discussion of the issues. Knowing that congressmen (and professors) are busy folks, the text of your discussion is strictly limited to 3 pages of double spaced type at a reasonable font size, plus references. Late papers turned in before noon 3/8/05 will be assessed a 25% penalty, late paper turned in before noon 3/9/05 will be assessed a 50% penalty. No credit for papers not received by noon 3/9. Plagiarism is a violation of the University Code of Ethics.

The Letter from Congressman Gibbons, and the questionnaire from which you will select one of the six questions to address is copied below.

January 25, 2005

Dear Hardrock Mining Stakeholder:

I am contacting you to seek your input on ways to modify the General Mining Law of 1872. The time is right to end the long-standing debate about amending the law. However, in order for any modification to this long standing law to be successful, a broad stakeholder group must provide me with ideas and suggestions on how to make mining work better in the United States. This letter and the attached questionnaire represent an initial step in developing a broad stakeholder working group that will help shape the scope of future mining law legislation.

Any proposed legislation must be promote environmentally responsible mining, provide the public with a fair return for the use of public land, and creates a more favorable business climate for exploration and mining.

In pursuing this goal, we must all be prepared to come to the table, roll up our sleeves, and have an open and honest dialogue about how to modify this law. The following are some of the overarching objectives an amended Mining Law must achieve:

· Reduce our reliance on foreign sources of minerals, including strategic minerals, by increasing environmentally responsible production of these vital commodities from domestic mineral deposits;

· Compensate the public for the use of the land and the minerals mined through production payments and/or fees that are fair to all industry sectors;

· Include a revenue distribution formula that will benefit states and local communities as well as the federal government;

· Preserve and clarify federal land tenure provisions that guarantee the rights of entry, occupancy, and use of federal land for the purpose of making a discovery of valuable minerals;

· Recognize the effective and comprehensive state and federal environmental regulatory framework and reclamation and financial assurance requirements governing hardrock mining;

· Produce a fund to reclaim abandoned hardrock mines and provide Good Samaritan liability relief to companies and individuals that undertake voluntary reclamation measures at abandoned mines; and

· Promote sustainable development by creating mechanisms to allow post-mining redevelopment of mined lands into projects that will continue to employ Americans and pay local, state, and federal taxes.

Several of the above-listed objectives track with the October 25, 2001 letter that Secretary Norton sent to Congress asking for legislation to amend the Mining Law, and listing aspects of the Mining Law that she feels need to be updated. It is time to respond to Secretary Norton’s request.

Please respond to the attached questionnaire by February 16, 2005. I look forward to hearing from you.

Sincerely,

Congressman Jim Gibbons

Mining Law Questionnaire

1. Revenue Generation

a) Revenue from mineral production could be based on a variety of mechanisms including fees, production payments, royalties, and purchase of surface and minerals etc. What revenue structure do you favor and why?

b) What is the best way to ensure that the revenue collection scheme provides a fair return to the public, effective collection and administration, does not place domestic mineral exploration and development at a competitive disadvantage compared to other countries, and that recognizes the diversity of industry sectors and mineral commodities governed by the Mining Law and treats these different sectors and commodities equitably.

c) What percentage of the revenue should go to local communities and states versus the federal government?

2. Land Tenure

a) What provisions should be in a revised Mining Law to preserve the land access and tenure provisions in the existing law that guarantee the right to occupy federal land for the purpose of making a discovery of valuable minerals.

3. Land Privatization

a) There are a number of mechanisms for privatizing mining lands including traditional mineral patents, direct sales, and land exchanges. Which mechanism(s) do you favor or disfavor and why.

4. Reclaiming Abandoned Mines

a) How should reclamation of abandoned hardrock mines be funded?

b) Should abandoned mine reclamation funds be administered and distributed by the states, the federal government, or both?

c) What kinds of liability relief provisions should be included in legislation to enable and encourage Good Samaritan reclamation of abandoned mines?

5. Environmental Provisions

a) The current mining law is a “tenure” law, which creates private rights of land use for mining purposes. These land use rights are subject to all local, state, and federal environmental laws and regulations and, in addition, they are subject to surface use regulation by federal land management agencies. Should the mining law prescribe specific environmental standards? If so, should they supplant existing laws and regulations or should they supplement them? Why or why not?

b) Incorporating existing environmental laws into a revised Mining Law could potentially date the new legislation as new laws are enacted. How can legislation keep abreast of future environmental laws affecting mining?

6. Sustainable Development

a) What changes in the law are needed to facilitate post-mining redevelopment of mining lands to minimize the boom – bust cycle sometimes associated with mining?

b) What changes are needed to maximize sustainable development in rural mining communities?

Please fax your questionnaire to Sandra Keil, Legislative Assistant to Congressman Jim Gibbons at (202) 225-5679 or e-mail at: Sandra.keil@mail.house.gov by February 16, 2005.