By Peter Marcus, DENVER DAILY NEWS
Interior Secretary Ken Salazar took on the nation’s 137-year-old mining law Tuesday, calling on Congress to levy “reasonable” royalty payments on hardrock minerals.
Speaking before the Senate Committee on Energy and Natural Resources, Salazar — a former U.S. Senator from Colorado — said the 19th century General Mining Act is antiquated and provides for little accountability in the area of clean-up and reclamation of abandoned mines.
“While the responsible development of our mineral resources is critical to both our economy and our environment, this statute has not been updated in 137 years,” Salazar told the Senate committee. “In those years, much has changed. It is time to ensure a fair return to the public for mining activities that occur on public lands and to address the cleanup of abandoned mines.”
Over the past 137 years, hundreds of thousands of mines have been left abandoned, polluting water sources throughout the West. Salazar is also concerned that mining companies do not pay royalties on hardrock minerals like gold and silver.
Worried about small miners
Stuart Sanderson, president of the Colorado Mining Association, says his industry is not opposed to royalties, but wants to ensure that whatever royalties are levied do not put smaller mining companies out of business.
“It’s a question of how the royalty is calculated, and it’s one that has to be calculated in such a way as to take into account the cost of the operations,” he said. “It can’t be set at such a punitively high rate that it would discourage mineral development, and it has to be applied prospectively to future operations.”
Sanderson agrees that the nation’s mining law needs to be reformed, both to ensure a fair return to taxpayers and to guarantee the protection of the public and its lands. But he said any reform must keep mines open.
Pointing out that mining helps reduce the nation’s dependence on foreign oil, Sanderson says the industry also produces minerals needed for the New Energy Economy, including minerals that go into solar panels.
Funds used for clean-up?
Ronald Cattany, director of the Colorado Division of Reclamation, Mining and Safety, agreed with the direction Salazar is taking.
“It would be useful to have a royalty on hardrock mining, with those royalties dedicated to abandoned mine reclamation and good samaritan projects,” said Cattany, referring to abandoned sites that volunteer groups are afraid to cleanup out of fear of inheriting environmental liabilities. “We’ve also said that if there is a provision for any withdrawal of federal lands as unsuitable for mining, that those be done by the Secretary of the Interior or the Secretary of Agriculture, as opposed to local land managers.”
Attempts at similar reform efforts have failed in the past. But environmental groups are more confident now with the Obama administration taking an increased interest in reforming the law.
“Colorado is beautiful country, and we need to protect treasures such as Dolores Canyon from the impacts of uranium mining,” said Matt Garrington, with Environment Colorado.
He pointed out that between 2003 and 2007 there has been a 239-percent increase in the number of uranium claims on public lands, including interest at Dolores Canyon and near Troublesome.
Dem support
A group of 20 state Democrats have written to U.S. Sen. Mark Udall, D-Colo., chair of the Senate Committee on Energy and Natural Resources, supporting two pieces of mining reform legislation. It is the first time since 1993 that federal mining reform legislation has been introduced in both the House and Senate.
“I urge you to join as a cosponsor to signal your strong interest in reforming this outdated law and creating a new legal framework that will protect Colorado communities and taxpayers while allowing for responsible mining and the accelerated cleanup of abandoned mines,” wrote the lawmakers to Udall and the rest of the Colorado Congressional delegation.
Environmental groups say mining has left a “lasting legacy of pollution” throughout the state. Citing the Environmental Protection Agency, they believe 40 percent of all Western watersheds have been impacted from mining pollution.
“We’re going back to the future on 1872 mining reform,” said Garrington. “This legislation is long overdue.”
Distributed by Colorado Capitol Reporters
