[Congressional Record Volume 151, Number 7 (Monday, January 31, 2005)]
[Senate]
[Page S649]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THOMAS:
  S. 203. A bill to reduce temporarily the royalty required to be paid 
for sodium produced on Federal lands, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. THOMAS. Mr. President, I rise today to introduce the ``Soda Ash 
Royalty Reduction Act of 2005,'' a bill to limit the Federal royalty on 
soda ash. This legislation, if passed, will put people back to work in 
my State and address the important issue of maintaining a strong and 
financially sound manufacturing base in this country. It will keep jobs 
in America and give workers a fighting chance to compete globally.
  The State of Wyoming accounts for 85 percent of the natural soda ash 
produced in the United States. The health of the domestic soda ash 
industry is now at issue. This legislation goes a long way towards 
assisting the domestic industry to be competitive on a global basis.
  The bill reduces an excessive tax on natural American soda ash; a tax 
that is significantly impairing the ability of U.S. exported soda ash 
to compete in important global markets; a tax that has helped create 30 
percent decline in employment in this industry in Wyoming since 1997. 
The current 6 percent royalty on each ton of domestically produced soda 
ash was imposed in 1995 at a time when our exports of this important 
commodity, primarily used in the manufacture of glass were rising to 
record levels. It was a windfall tax that recognized the industry's 
significant expansion.
  Over the last decade, export growth has been severely impacted, as 
several trading partners erected various barriers to U.S. soda ash, 
often to protect their own less efficient domestic producers. One of 
the most aggressive countries has been China. As recently as 1990, 
China imported over one million tons of soda ash annually from the U.S. 
Today, China exports two million tons from plants that produce a 
synthetic grade of this important commodity.
  The Chinese produce soda ash in far less efficient factories with 
limited attention to environmental or safety concerns. The average wage 
of a Chinese worker in these plants is less than $5 a day. By contrast 
Wyoming soda ash workers can earn on average $35 an hour. Chinese soda 
ash producers, which are largely state owned, also benefit from direct 
and indirect forms of state support, as well as the benefits of a fixed 
exchange rate. As a result of these actions, China has supplanted the 
United States as the world's largest exporter of soda ash.
  Wyoming soda ash producers remain the most efficient in the world and 
have been constantly improving their productivity over the last several 
years. It is an industry that is reinventing itself to meet the demands 
of fierce global competition.
  My legislation restores the original royalty the Federal Government 
imposed on soda ash in the Mineral Leasing Act of 1920. That act set a 
2 percent royalty on soda ash mined on Federal leases. We would 
temporarily resume that royalty rate consistent with the Federal Land 
Policy and Management Act of 1976 that requires the Secretary of the 
Interior to receive ``fair market value'' for the use of public lands 
and their resources. In other words, the legislation simply adjusts 
what was a windfall tax back to its original level.
  The legislation is overdue and keeps our Nation's commitment to U.S. 
based manufacturing and jobs. The U.S. soda ash industry has been a 
good partner with the Federal Government, providing additional revenue 
when business was flourishing. Now that the industry is fighting for 
its survival, the Federal Government has the opportunity to be a 
responsible partner and ease its tax burden so it can survive and 
provide the thousands of jobs that are so important to my State.
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