End a 135 Year Old Taxpayer Giveaway

Support the Reform of the General Mining Law of 1872
Vote “YES” on H.R. 2262

Dear Representative,

The time has come for Congress to reform the 135 year old law that governs precious metal mining on federal land. Rep. Rahall has introduced H.R. 2262, Hardrock Mining and Reclamation of 2007 to bring the anachronistic policies of the General Mining Law of 1872 into the 21st century. Taxpayers for Common Sense Action urges you to vote for this fiscally responsible legislation.
Taxpayers are harmed by the 1872 Mining Law in several ways:

1. Unlike other extractive industries, companies that mine for gold, silver, copper, uranium and other precious metals do not have to pay a fee when operating on federal land, essentially allowing these valuable minerals to be given away for free. In contrast, the oil, gas and coal industries pay as much as a 12.5% royalty, and they and the hardrock mining companies may pay even more when mining on private, state or tribal lands. H.R. 2262 imposes a modest 4 percent royalty on existing mines and an 8 percent royalty on new mines on federal lands.
2. The government can sell land at 19th century prices while allowing the buyer to reap 21st century profits.  Under the 1872 law, federal lands are sold for no more than $5 an acre–considerably below today’s market value. Not only have mining companies been able to gain title to land valued at tens of millions of dollars for as little as tens of thousands of dollars, but the land can be developed for other purposes, including commercial enterprises, such as condominiums, ski resorts and casinos. H.R. 2262 makes permanent a moratorium on patenting federal lands.

3. Taxpayers are saddled with expensive clean-up costs of the toxic aftermath of mining operations. Not only does the American taxpayer underwrite the profits but are forced to pay for the damages left behind.  These damages have been estimated at a cost upwards of $50 billion. H.R. 2262 uses royalties and fees collected from the mining industry to create a fund to pay for this expensive clean-up.  Public lands are taxpayer assets, and should be managed in a way that preserves their value, ensures a fair return from private interests using them for profit and avoids future liability. The structure of the Mining Law of 1872 fails by all of these measures. H.R. 2262 addresses these century-old policies and protects taxpayer interests.

When this bill come to the floor we urge you to take the first important step in ensuring taxpayers receive a fair return for mining on federal lands and vote in favor of H.R. 2262. If you have questions please contact me at (202) 546-8500 x 104 or Senior Advisor Jill Lancelot at (202) 352- 6567 or email jill@taxpayer.net.

Sincerely,
Ryan Alexander
President