[Congressional Record Volume 143, Number 111 (Thursday, July 31, 1997)]
[Senate]
[Pages S8558-S8559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG (for himself, Mr. Murkowski, Mr. Reid, Mr. Bryan, 
        Mr. Bennett, Mr. Burns, Mr. Hatch, Mr. Thomas, Mr. Campbell, 
        Mr. Stevens, and Mr. Kempthorne):
  S. 1102. A bill to amend the general mining laws to provide a 
reasonable royalty from mineral activities on Federal lands, to specify 
reclamation requirements for mineral activities on Federal lands, to 
create a State program for the reclamation of abandoned hard rock 
mining sites on Federal lands, and for other purposes; to the Committee 
on Energy and Natural Resources.


                   the mining law reform act of 1997

  Mr. CRAIG. Mr. President, in the last Congress, Members in the Senate 
and our colleagues in the other Chamber worked hard to reform the laws 
under which the U.S. mining industry operate on the vast Federal lands 
of the west. Members on both sides of the aisle, from all regions of 
the country, acknowledged that the Mining Law of 1872 needed change. 
This body and the other body passed legislation to reform the mining 
law only to have our efforts vetoed by the President. I believe it is 
time to make another effort to pass mining reform legislation and to 
engage the Clinton administration in meaningful discussion that can 
bring to a close the long and fruitless debate we have so far had on 
this issue.
  Today, I am introducing, a bipartisan bill in conjunction with 
Chairman Murkowski, Senator Reid, and Senator Bryan and five other of 
our colleagues to legislatively solve the problems that we see with the 
mining law. The Mining Law Reform Act of 1997, is a bill which will 
ensure continued mineral production in the United States. It provides 
for a fair economic return from minerals extracted on public lands, and 
will link mining practices on federal lands to State and Federal 
environmental laws and land-use plans. This bill provides a balanced 
and equitable solution to concerns raised over the existing mining law.
  Mining in the United States is an important part of our nation's 
economy. It serves the national interest by maintaining a steady and 
reliable supply of the materials that drive our industries. Revenue 
from mining fuels local economies by providing family income and 
preserving community tax bases. Mining has become an American success 
story. Fifteen years ago, U.S. manufacturers were forced to rely on 
foreign producers for 75 percent of the gold they needed. Today, the 
U.S. is more than self-sufficient. The combined direct and indirect 
impact on the economy of our nation by the mining industry in 1995 was 
almost $524 billion. This is nine times the value of the actual 
minerals that were mined. Obviously we are talking about a very 
significant portion of our economy and one that we can not cavalierly 
assign to the economic antique shed. This information is from a recent 
report by the Western Economic Analysis Center. I ask unanimous consent 
that the summary of this report be made a part of the Record.
  Mining, however, is a business associated with enormous up-front 
costs and marginal profits. Excessive royalties discourage, and in 
other countries have discouraged, mineral exploration. Too large a 
royalty would undermine the competitiveness of the mining industry. The 
end result of excessive government involvement would be the movement of 
mining operations overseas and the loss of American jobs. The 
legislation I am introducing today will keep U.S. mines competitive and 
prevent the movement of U.S. jobs to other countries.
  The General Mining Law is the cornerstone of U.S. mining practices. 
It establishes a useful relationship between industry and government to 
promote the extraction of minerals from mineral rich Federal lands. 
Although the cornerstone of this laws was originally enacted in 1872, 
it remains to function effectively today. The law has been amended and 
revised many times since its original passage. The legislation I am 
introducing today preserves the solid foundation provided by this law 
and makes some important revisions that address the concerns that have 
been paramount in this debate that I have been involved in for nearly a 
decade.

  Specifically, the Mining Law Reform Act of 1997 will insure revenue 
to the Federal Government by imposing fair and equitable fees and a net 
royalty. It requires payment of fair market value for lands to be 
mined. It assures lands will return to the public sector if they are 
not developed for mineral production, as is intended in this 
legislation. Furthermore, to prevent mining interests from using 
patented land for purposes other than mining, the bill limits occupancy 
to that which is only necessary to carry out mining activities.
  To ensure mining activities do not unnecessarily degrade Federal 
lands,

[[Page S8559]]

the Mining Law Reform Act mandates compliance with all Federal, State 
and local environmental laws with regard to land use and reclamation. 
To enforce these provisions, the bill includes civil penalties and the 
authority for compliance orders.
  Finally, this bill creates a program to address the environmental 
problems associated with abandoned mines. Working directly with the 
States, the Mining Law Reform Act directs fees and royalty receipts to 
the abandoned mine cleanup programs. It is time we have a workable 
mechanism to clean up these relics of the past.
  The legislation we are proposing today is in the best interest of the 
American people because it provides revenue from public resources, 
assures mines will be developed in an environmentally sensitive manner 
and that abandoned mines from earlier eras will be reclaimed. It is 
fair to mining interests because it imposes reasonable fees and 
royalties, and it is good for the environment because it assures that 
sound land use and reclamation practices are followed. I ask my 
colleagues to join me in support of this legislation and look forward 
to hearings and Senate legislative action.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                    Mining and the American Economy


                     Everything Begins With Mining

                 (Prepared by George F. Leaming, Ph.D.)


          Combined Direct and Indirect Impacts of Mining, 1995


                                          Values in millions of dollars
California..................................................$52,475.866
New York.....................................................31,005.248
Texas........................................................28,971.894
Pennsylvania.................................................28,643.365
Michigan.....................................................26,229.092
Ohio.........................................................24,964.148
Illinois.....................................................23,932.294
Florida......................................................19,703.096
Kentucky.....................................................16,331.941
West Virginia................................................15,277.424
Indiana......................................................14,232.916
New Jersey...................................................14,104.661
Arizona......................................................13,715.868
North Carolina...............................................13,090.456
Minnesota....................................................12,970.055
Massachusetts................................................12,794.139
Virginia.....................................................11,498.840
Georgia......................................................11,202.431
Alabama......................................................11,027.917
Missouri.....................................................10,162.067
All Other States............................................131,270.339
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