Dear Representative,

The law that governs precious metal mining on federal land is 135 years old and it is time for it to be updated. Rep. Rahall has introduced a bill, H.R. 2262, Hardrock Mining and Reclamation of 2007 that will bring these anachronistic policies into the 21st century. Taxpayers for Common Sense Action urges you to co-sponsor this fiscally responsible legislation.

Taxpayers are harmed by the 1872 Mining act 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.

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 as little as $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.

3. Taxpayers are saddled with hefty clean-up costs of the toxic aftermath of mining operations. Not only does the American taxpayer underwrite the profits but we are forced to pay for the damages left behind. These damages have been estimated at a cost upwards of $50 billion.

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.

We invite you to join Representative Rahall and co-sponsor this important piece of legislation, 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.

Sincerely,

Ryan Alexander
President