[House Report 118-377]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-377
======================================================================
SUPERIOR NATIONAL FOREST RESTORATION ACT
_______
February 9, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Westerman, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 3195]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 3195) to rescind Public Land Order 7917, to
reinstate mineral leases and permits in the Superior National
Forest, to ensure timely review of Mine Plans of Operations,
and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Superior National Forest Restoration
Act''.
SEC. 2. SUPERIOR NATIONAL FOREST SYSTEM LANDS IN MINNESOTA.
(a) Rescission.--The order entitled ``Public Land Order No. 7917 for
Withdrawal of Federal Lands; Cook, Lake, and Saint Louis Counties,
MN'', issued by the Bureau of Land Management and dated January 31,
2023, is hereby rescinded.
(b) Timely Review.--The Secretary shall complete all necessary
environmental and regulatory review, including processes subject to the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), for
all Mine Plans of Operations within the Superior National Forest lands
in the State of Minnesota--
(1) with respect to such Mine Plans of Operations submitted
before the date of the enactment of this section, not later
than 18 months after the date of enactment of this section; and
(2) with respect to a Mine Plan of Operations submitted or
resubmitted in the 7 year period beginning on the date of the
enactment of this section, not later than 18 months after the
date on which such Mine Plan of Operations is submitted or
resubmitted.
(c) Reissuance of Mineral Leases.--
(1) In general.--The Secretary shall issue each mineral
lease, preference right lease, and prospecting permit canceled
by the Secretary relating to lands within Superior National
Forest during the period beginning on January 31, 2021, and
ending on the date of the enactment of this section on the same
terms as were in effect on the date of such cancellations.
(2) Judicial review.--A lease or permit issued under
paragraph (1) is not subject to judicial review.
(d) Secretary Defined.--For the purposes of this section, the term
``Secretary'' means--
(1) the Secretary of the Interior; or
(2) when used with respect to any unit of the National Forest
System, the Secretary of Agriculture.
PURPOSE OF THE LEGISLATION
The purpose of H.R. 3195 is to rescind Public Land Order
7917, to reinstate mineral leases and permits in the Superior
National Forest, to ensure timely review of Mine Plans of
Operations, and for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
The Superior National Forest (SNF) in northeastern
Minnesota contains 3.7 million acres of National Forest System
land, including the Boundary Waters Canoe Area Wilderness. The
region contains vast amounts of copper and nickel, as well as
cobalt and platinum metal groups, which began to attract
interest from developers decades ago. In 1966, two mining
leases were granted to project proponents for an initial term
of 20 years, with rights to renew for 10 years.\1\ These leases
have been renewed multiple times since.\2\ The project has had
different operators since its inception and has yet to begin
production due to high capital and exploration costs.
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\1\Twin Metals Minnesota, ``Fact: Twin Metals Minnesota's Federal
Mineral Preference Right Leases Mines 1352 & 1353,'' Dec. 15, 2016,
https://www.twin-metals.com/wp-content/uploads/2016/12/TMM-Lease-
Renewal-Facts-12-15-16.pdf.
\2\Id.
---------------------------------------------------------------------------
In the last days of the Obama administration, the U.S.
Forest Service filed an application with the Bureau of Land
Management (BLM) to withdraw 234,328 acres of SNF land from
mineral development, immediately halting all mining activities
pending the results of an environmental review.\3\ The Obama
administration also declined to renew the two mineral leases,
currently held by an operator called Twin Metals Minnesota,
despite the operator's long tenure and hundreds of millions of
dollars spent exploring the prospective mine site.\4\
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\3\82 Fed. Reg. 6639.
\4\``The Latest: Twin Metals: Reinstating leases `important
step','' May 2, 2018, Associated Press, https://apnews.com/
7c030dc4e85e4926a2028cb96e32b817.
---------------------------------------------------------------------------
After 15 months of review, the Trump administration
cancelled the application for the mineral withdrawal on
September 6, 2018,\5\ and reinstated the mineral leases on May
2, 2018.\6\ In December 2019, Twin Metals Minnesota formally
submitted a Mine Plan of Operation to begin the federal
permitting process, with the Minnesota Department of Natural
Resources also conducting its own environmental impact
review.\7\
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\5\U.S. Department of Agriculture, ``USDA Removes Roadblock to
Mineral Exploration in Rainy River Watershed,'' Press Release, Sept. 6,
2018, https://www.usda.gov/media/press-releases/2018/09/06/usda-
removes-roadblock-mineral-exploration-rainy-river-watershed.
\6\U.S. Department of the Interior, ``Rescission of December 15,
2016, Lease Renewal Application Rejection. Reinstatement of Mineral
Leases MNES 01352 & MNES 01353 as Issued in 2004. Reinstatement of Twin
Metal's 2012 Lease Renewal Application,'' May 2, 2018, https://
www.twin-metals.com/wp-content/uploads/2018/05/2018.05.02-Twin-Metals-
Lease-Reinstatement-Decision-002.pdf.
\7\Karnowski, Steve, ``Twin Metals Minnesota files formal mine plan
with regulators,'' Associated Press, Dec. 18, 2019. https://apnews.com/
3cb7d821267e8ada06e1817b5c380eef.
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The Biden administration reversed course once again,
cancelling the mineral leases held by Twin Metals Minnesota on
January 26, 2022,\8\ and initiating a withdrawal of over
225,000 acres of mineral-rich land in the same area.\9\ These
actions were taken despite years of environmental review, a
pending Mine Plan of Operations at BLM,\10\ and a myriad of
comments and letters from Members of Congress, mineral
developers, local residents, union workers, and many other
parties stating their support for the project. The finalized
withdrawal went into effect on January 31, 2023,\11\
prohibiting extraction of any mineral--including copper,
nickel, cobalt, platinum, and iron ore--in 225,504 acres of the
SNF for 20 years.
---------------------------------------------------------------------------
\8\Decision of Tommy Beaudreau, Deputy Secretary of the Interior,
Jan. 26, 2022, https://www.blm.gov/sites/blm.gov/files/docs/2022-01/
2022.01.26%20Twin%20Metals%20Lease%20
Cancellation%20Decision_0.pdf.
\9\U.S. Department of the Interior, ``Biden Administration Takes
Action to Complete Study of Boundary Waters Area Watershed,'' Press
Release, Oct. 20, 2021, https://www.doi.gov/pressreleases/biden-
administration-takes-action-complete-study-boundary-waters-area-
watershed.
\10\Bureau of Land Management, NEPA number: DOI-BLM-Eastern States-
0030-2020-0006-EIS, https://eplanning.blm.gov/eplanning-ui/project/
1503233/510.
\11\88 Fed. Reg. 6308.
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H.R. 3195 would rescind Public Land Order 7917, the order
that directs the withdrawal. This bill also requires that any
Mine Plans of Operations in the SNF currently pending at BLM,
and any Mine Plans of Operations submitted or resubmitted to
BLM in the next 7 years, must be reviewed within 18 months.
Finally, this bill requires the reissuance of every mineral
lease, preference right lease, and prospecting permit for
mining on the SNF that was cancelled since January 31, 2021.
The reissuance of such leases or permits is not subject to
judicial review.
The provisions in H.R. 3195, taken together, would
effectively cancel the administrative withdrawal in northern
Minnesota finalized by the Biden administration, restore
mineral rights to prospective developers in the area, and
require the prompt review of any Mine Plans of Operations for
potential future development.
COMMITTEE ACTION
H.R. 3195 was introduced on May 10, 2023, by Rep. Pete
Stauber (R-MN). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Energy and Mineral Resources. On May 11, 2023, the
Subcommittee on Energy and Mineral Resources held a hearing on
the bill. On May 17, 2023, the Committee on Natural Resources
met to consider the bill. The Subcommittee on Energy and
Mineral Resources was discharged from further consideration of
H.R. 3195 by unanimous consent. Rep. Stauber (R-MN) offered an
amendment in the nature of a substitute, designated
Stauber_016. Ranking Member Raul Grijalva (D-AZ) offered an
amendment to the amendment in the nature of a substitute,
designated Grijalva #1. The amendment offered by Ranking Member
Grijalva (D-AZ) to the amendment in the nature of a substitute
was not adopted by a roll call vote of 15 yeas to 17 nays, as
follows:
Rep. Sydney Kamlager-Dove (D-CA) offered an amendment to
the amendment in the nature of a substitute, designated
Kamlager-Dove #2. The amendment offered by Rep. Kamlager-Dove
(D-CA) to the amendment in the nature of a substitute was not
adopted by a roll call vote of 16 yeas to 19 nays, as follows:
Ranking Member Raul Grijalva (D-AZ) offered a substitute
amendment to the amendment in the nature of a substitute,
designated Grijalva #3. The substitute amendment offered by
Ranking Member Grijalva (D-AZ) was not adopted by a roll call
vote of 16 yeas to 19 nays, as follows:
The amendment in the nature of a substitute offered by Rep.
Stauber (R-MN) was adopted by voice vote. The bill, as amended,
was then ordered favorably reported to the House of
Representatives by a roll call vote of 21 yeas to 17 nays, as
follows:
HEARINGS
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing by the Subcommittee on Energy and Mineral Resources
held on May 11, 2023.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 establishes the short title of the bill as the
``Superior National Forest Restoration Act.''
Section 2. Superior National Forest system lands in Minnesota
Section 2 rescinds Public Land Order 7917, which withdraws
225,504 acres of the Superior National Forest for 20 years. It
requires review within 18 months of enactment of any Mine Plans
of Operations currently pending at BLM and any Mine Plans of
Operations submitted or resubmitted within seven years of the
date of enactment. This section also requires reissuance of
every mineral lease, preference right lease, and prospecting
permit that has been cancelled since January 31, 2021. Finally,
this section makes clear that the reissuance of such leases or
permits is not subject to judicial review.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII AND
CONGRESSIONAL BUDGET ACT
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
The bill would:
Reverse the withdrawal of more than 225,000
acres of National Forest System land in Minnesota from
mineral and geothermal leasing
Specify deadlines for the Departments of
Agriculture and the Interior to review plans for mining
on that land
Require certain canceled leases to be
reissued
Impose intergovernmental and private-sector
mandates by eliminating a right of action to seek a
judicial review of reissued permits and leases
Estimated budgetary effects would mainly stem from:
Rents and royalties collected from reissued
mineral leases
Areas of significant uncertainty include:
Anticipating whether mining permits would be
issued for certain operations
Projecting mineral prices
Bill summary: H.R. 3195 would revoke Public Land Order
7917, ``Withdrawal of Federal Lands; Cook, Lake, and Saint
Louis Counties, MN,'' which was issued on January 31, 2023, by
the Bureau of Land Management (BLM). The order, effective for
20 years and subject to valid existing rights, withdrew more
than 225,000 acres of National Forest System land in Minnesota
from mineral and geothermal leasing.
The bill would require the Departments of Agriculture and
the Interior to reissue all mineral leases and prospecting
permits for the withdrawn area that were canceled between
January 31, 2021, and the date of enactment. The reinstated
leases would be subject to their original terms and exempt from
judicial review. In addition, within 18 months of enactment
those departments would be required to complete environmental
and regulatory reviews of plans of operation for certain mining
activities within the Superior National Forest in Minnesota.
Estimated Federal cost: The estimated budgetary effect of
H.R. 3195 is shown in Table 1. The costs of the legislation
fall within budget function 300 (natural resources and
environment).
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the end of calendar year 2023. Based
on details in the bill and accounting for permitting processes
in federal and state laws, CBO expects that BLM would start
collecting rents and minimum royalties (payments in lieu of
production royalties) in 2024 and mineral production royalties
in 2031.
Background: Under mineral-leasing laws, some acquired
federal land (land that is granted or sold to the federal
government by states or private entities) can be leased to
prospect for, develop, and extract hardrock minerals. The
leases are managed by BLM and are subject to rents and
royalties on the minerals produced. The federal government is
required to disburse 49 percent of lease proceeds to the states
where the activities occur.
Two active hardrock mineral leases in effect on National
Forest System land in Minnesota in January 2022 were canceled
by the Department of the Interior on January 26, 2022. Within a
year of those cancellations, Public Land Order 7917 withdrew
that land from mineral and geothermal leasing, effectively
restricting the Forest Service and BLM from processing or
issuing new hardrock-prospecting permits and mineral leases.
According to information from the Forest Service about 67,000
acres within the affected area have a high potential for mining
copper, nickel, cobalt, and platinum group metals.
Direct spending: CBO estimates that enacting H.R. 3195
would decrease net direct spending by $40 million over the
2024-2033 period.
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3195
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2028 2024-2033
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ESTIMATED INCREASES OR DECREASES (-) IN DIRECT SPENDING
Rents and Royalties Under Reissued Leases:
Estimated Budget Authority........................... * -1 * -1 * * -1 -22 -27 -26 -2 -78
Estimated Outlays.................................... * -1 * -1 * * -1 -22 -27 -26 -2 -78
Payments to the State of Minnesota:
Estimated Budget Authority........................... * 1 * * * * * 11 13 13 1 38
Estimated Outlays.................................... * 1 * * * * * 11 13 13 1 38
Total:
Estimated Budget Authority....................... * * * -1 * * -1 -11 -14 -13 -1 -40
Estimated Outlays................................ * * * -1 * * -1 -11 -14 -13 -1 -40
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* = between -$500,000 and $500,000.
CBO estimates that H.R. 3195 also would increase spending subject to appropriation by less than $500,000 over the 2024-2028 period; any spending would
be subject to the availability of appropriated funds.
Rents and royalties under reissued leases: CBO estimates
that the federal government would collect $78 million in rents
and royalties over the 2024-2033 period under the reissued
leases. Those amounts would be classified in the budget as
offsetting receipts (or reductions in direct spending).
Using information from BLM on the leases' terms, CBO
expects that a leaseholder would pay combined annual rent and a
minimum royalty of about $400,000 and a 6 percent royalty on
the gross value of minerals mined. Based on information from
industry experts, CBO expects that state and local permitting
and preproduction activities would take about seven years to
complete. Because of uncertainty about when and whether a
leaseholder would obtain the necessary permits, CBO used a 50
percent probability that production would begin after 2030 but
before 2033.
Based on that timeline, CBO estimates that the federal
government would collect roughly $3 million over the 2024-2030
period in rents and minimum royalties. Using information on
estimated production volume from the previous mining operation
plans and forecasts of metal and mineral prices from the U.S.
Geological Survey and the World Bank, CBO estimates that the
federal government would collect about $75 million in royalties
over the 2031-2033 period from production royalties. (That
amount incorporates the 50 percent probability that production
does not occur or occurs after 2033.)
Payments to the State of Minnesota: Under current law, the
Department of the Treasury returns 49 percent of the offsetting
receipts in rent and royalties from mineral leases to the state
in which the mining occurs. Under the bill, the federal
government would transfer roughly $38 million over the 2024-
2033 period to the State of Minnesota. That amount includes
about $1 million in rents before production from 2024 to 2030
and about $37 million in royalties produced from 2031 to 2033.
Payments to states are subject to sequestration through 2031
and CBO's estimate incorporates those effects.
Spending subject to appropriation: H.R. 3195 would require
the Forest Service and BLM to complete environmental and
regulatory reviews of leaseholders' plans of operations within
18 months of enactment. Under current law, the agencies would
perform those tasks under an agreement with leaseholders to pay
for the cost of such reviews. Thus, CBO estimates that the net
cost of those reviews would be negligible over the 2024-2033
period.
Uncertainty: This estimate is subject to significant
uncertainty because the collection of rents and royalties for
mining operations depends on whether and when the necessary
state and local permits are obtained. The state permitting
process could be shorter or longer than CBO anticipates. In
addition, because CBO cannot precisely predict future mineral
prices, the royalties collected could be larger or smaller than
estimated.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 2.
TABLE 2.--CBO's ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3195, THE SUPERIOR NATIONAL FOREST RESTORATION ACT, AS ORDERED REPORTED BY THE
HOUSE COMMITTEE ON NATURAL RESOURCES ON MAY 17, 2023
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2028 2024-2033
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NET DECREASE IN THE DEFICIT
Pay-As-You-Go Effect.............................. 0 0 0 -1 0 0 -1 -11 -14 -13 -1 -40
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Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 3195 would not increase net direct
spending or deficits in any of the four consecutive 10-year
periods beginning in 2034.
Mandates: H.R. 3195 would impose intergovernmental and
private-sector mandates as defined in the Unfunded Mandates
Reform Act (UMRA) by eliminating a right of action for entities
to seek judicial review of permits and leases reissued as a
result of the bill. Because those reviews do not generally
result in monetary damages, CBO estimates that the cost of the
mandates would fall well below the intergovernmental and
private-sector thresholds established in UMRA ($99 million and
$198 million in 2023, respectively, adjusted annually for
inflation).
Estimate prepared by: Federal costs: Lilia Ledezma;
Mandates: Brandon Lever.
Estimate reviewed by: Ann E. Futrell, Senior Adviser for
Budget Analysis; Kathleen FitzGerald, Chief, Public and Private
Mandates Unit; H. Samuel Papenfuss, Deputy Director of Budget
Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to rescind Public Land Order 7917, to
reinstate mineral leases and permits in the Superior National
Forest, to ensure timely review of Mine Plans of Operations,
and for other purposes.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
UNFUNDED MANDATES REFORM ACT STATEMENT
According to the Congressional Budget Office (CBO), H.R.
3195 would impose intergovernmental and private-sector mandates
as defined in the Unfunded Mandates Reform Act (UMRA). However,
CBO estimates that the cost of such mandates would fall well
below the intergovernmental and private-sector thresholds
established in UMRA.
EXISTING PROGRAMS
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
CHANGES IN EXISTING LAW
As ordered reported by the Committee on Natural Resources,
H.R. 3195 makes no changes in existing law.
DISSENTING VIEWS
Designated initially under the Wilderness Act of 1964, the
Boundary Waters Canoe Area Wilderness (BWCAW) is a 1,090,000-
acre federal wilderness area inside Superior National Forest in
northern Minnesota. As the nation's most-visited wilderness
area, BWCAW welcomes approximately 150,000 visitors annually.
Along with nearby Voyageurs National Park, the Boundary Waters
supports 22,000 jobs and $1.4 billion in annual visitor
spending. The BWCAW is nationally significant because of its
pristine and crystal-clean water resources, remote location,
and vast solitude.
In 2012, Twin Metals Minnesota--a wholly owned subsidiary
of the Chilean mining company Antofagasta plc--requested an
extension of two expired leases in the Superior National Forest
to build a sulfide-ore copper mine for copper, nickel, cobalt,
and platinum. In 2016, after an extensive public input process,
the Forest Service concluded that a sulfide-ore copper mine in
the watershed near the BWCAW could result in ``extreme'' and
``serious and irreplaceable harm'' to the wilderness area. The
Forest Service withheld its consent for renewal, and the leases
expired. Following the refusal to renew the mineral leases, the
Forest Service initiated a process to protect 235,000 acres of
the Superior National Forest from mining for 20 years, also
known as a mineral withdrawal, to provide further protections
for the BWCAW. Under the Trump administration, ignoring the
science and public comment, the Bureau of Land Management (BLM)
reinstated the expired Twin Metals leases and abruptly canceled
the mineral withdrawal application.
In October 2021, under the Biden administration, the Forest
Service submitted a new withdrawal application and undertook a
science-based environmental assessment to evaluate the
potential impact of prohibiting new mining and geothermal
exploration and development within the Rainy River Watershed
for the next 20 years and collected extensive public comment.
In January 2022, DOI's Office of the Solicitor issued a
legal opinion finding that the Trump administration improperly
renewed the leases by failing to follow DOI regulations, did
not incorporate the Forest Service's opposition to the renewal,
and conducted an inadequate environmental analysis under the
National Environmental Policy Act (NEPA). Given these findings,
DOI canceled the Twin Metals leases.
In January 2023, Secretary of the Interior Haaland
finalized the mineral withdrawal for 225,000 acres of Superior
National Forest--Public Lands Order 7917. The withdrawal was
informed by approximately 200,000 comments gathered from two
public comment periods, three virtual public meetings, two
tribal consultations, and a thorough scientific review.
H.R. 3195 undermines the scientific and public input
process the Biden administration rightfully used to complete
the mineral withdrawal. The legislation would reinstate the
canceled leases and permits without judicial review. If allowed
to proceed, the Twin Metals mine in the watershed of the
Boundary Waters would pose a significant risk and could cause
irreparable harm to the wilderness area. Additionally, nearly
70 percent of Minnesotans support protecting the Boundary
Waters from sulfide-ore copper mining, with support across the
political spectrum.
For these reasons, Democrats oppose H.R. 3195, which would
nullify Public Land Order No. 7917.
Raul M. Grijalva,
Ranking Member.