Mining Laws and Issues

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Mining Laws and Issues

• Mining Law of 1872

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The Mining Boom History

• 1848 Discovery of gold in California
• 1849 California gold rush
• Drew prospectors and miners from all parts of the
  world

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The Mining Boom History

• 1872 General Mining Law of 1872
• Signed into law by Pres. Ulysses S. Grant

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The Mining Boom History

• Why was it passed?
• To bring law and order to 19th century Wild
  West
• To govern the mining of hardrock minerals on
  federal lands
• Examples?

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The Mining Boom History

• Why was it passed?
• To encourage development via mineral exploration
• To lure immigrants and Easterners to settle the
  vast stretches of public land in the West

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The Mining Boom History

• 1980 Mining boom ended
• Provided over 2 billion in wealth
• Financed the Civil War

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The Mining Boom History

• Most mines left the hands of small miners
• Thousands of native americans were driven from
  their lands
• The industry left behind some major scars
• Like what?

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The Mining Boom History

• After 133 years
• It is still in effect
• 270 million acres of federal lands
• The last American Dinosaur

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Mining Act of 1872 Key Elements

• Free access to public domain
• No permission required to explore minerals
• Individuals and corporations can freely prospect
  for minerals
• Self-initiation

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Mining Act of 1872 Key Elements

• Mining claims
• Claimants must pay an annual maintenance fee of
  100
• 25 fee for first time locators to locate and
  record a claim

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Mining Act of 1872 Key Elements

• Patenting
• Obtain title to surface and mineral rights
• Ownership

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Mining Act of 1872 Key Elements

• Patenting
• Can only file for a patent if at least 500 of
  development work has been performed
• 250 application fee plus 50 per claim within
  each application

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Mining Act of 1872 Key Elements

• Patenting
• Lands maybe patented for 2.50/acre-5.00/acre
• Typically limited to 20 acres

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Provisions for Claims

• No limit on no. of claims a person can locate
• No requirement that mineral production ever
  commence
• Mineral production can take place without a
  patent or revenue payments to the federal
  government
• Claims can be held indefinitely

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Statistics on Mining Claims

• Most claims are locate in NV, AZ, CA, MT and WY
• 45 of claims are in Nevada
• There has been a decline in the no. of claims as
  a result of the 100 fee

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Statistics on Mining Claims

• Only a small percentage of claims are ever
  patented
• 3.3 million acres from 1867 through 2000
• Mining represents only 1.5 of public land
  patented

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Subsequent Amendments

• Mineral Leasing Act of 1920
• Nonmetallic minerals not open to claim staking
• Removed oil, gas, oil shale, phosphates, sodium,
  and certain other minerals from the claim-patent
  system of the 1872
• Including coal
• Set up a system of leasing in which the federal
  government retains ownership of the leased lands

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Subsequent Amendments

• Mineral Leasing Act for Acquired Lands of 1947
• Authorized the leasing of leasable minerals in
  some acquired federal lands

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Subsequent Amendments

• Mineral Materials Act of 1947
• Provided for the sale or public giveaway of
  certain minerals, such as sand or gravel
• Multiple Mineral Use Act of 1954
• Provided for the development of multiple minerals
  on the same tracts of public land

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Issues

• Mineral Giveaway
• Access to minerals below market prices
• Lack of federal royalty
• The public gives away 3-4 Billion worth of
  minerals per year (Mining Policy Center)
• Is it the same for the coal, oil or gas
  industries?

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Issues

• Land Giveaway
• Public lands have been sold to private owners for
  no more than 5.00/acre
• Public lands were patented but never really mined
• Used for other purposes---gt Example?

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Issues

• Lack of Environmental Standards
• Mining can take place in environmental sensitive
  areas
• No provision for reclamation of damaged land

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Issues

• Lack of Environmental Standards
• Approximately half a million acres unreclaimed
  federal lands
• Would cost 32-72 Billion to reclaim

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Issues

• Lack of Environmental Standards
• Over 10,000 miles of rivers polluted
• EPA estimates that 40 of the headwaters of
  watersheds in the West are polluted by mining
• Mining industry is the nations largest toxic
  polluter
• Hardrock mining wastes are exempt from federal
  toxic waste regulation under the Resource
  Conservation and Recovery Act (RCRA)

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• Need to reform????

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Federal Mineral Development and Land Protection
Equity Act of 2005

• A new bill introduced by Representatives
• Nick Rahall (D-WV)
• Chris Shays (R-CT)
• Jay Inslee (D-WA)
• HR3968
• Introduced on Oct. 6, 2005

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Federal Mineral Development and Land Protection
Equity Act of 2005

• Protects special places from irresponsible mining
• Establishes environmental standard
• e.g., fish and wildlife habitat must be restored
  to pre-mining condition
• Implements fiscal reforms
• 8 royalty

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Federal Mineral Development and Land Protection
Equity Act of 2005

• Creates and abandoned Mine Land Fund
• From royalties and fees
• Requires enforcement
• Violators will be fined up to 25,000 per
  violation per day