This book, the result of a congressionally mandated study, examines the adequacy of the regulatory framework for mining of hardrock mineralsâ€"such as gold, silver, copper, and uraniumâ€"on over 350 million acres of federal lands in the western United States. These lands are managed by two agenciesâ€"the Bureau of Land Management in the Department of the Interior, and the Forest Service in the Department of Agriculture. The committee concludes that the complex network of state and federal laws that regulate hardrock mining on federal lands is generally effective in providing environmental protection, but improvements are needed in the way the laws are implemented and some regulatory gaps need to be addressed. The book makes specific recommendations for improvement, including: The development of an enhanced information management system and a more efficient process to review new mining proposals and issue permits. Changes to regulations that would require all mining operations, other than "casual use" activities that negligibly disturb the environment, to provide financial assurances for eventual site cleanup. Changes to regulations that would require all mining and milling operations (other than casual use) to submit operating plans in advance.

The General Mining Act of 1872 helped open the West by allowing individuals to obtain exclusive rights to mine billions of dollars worth of gold, silver, and other hardrock (locatable) minerals from federal lands without having to pay a federal royalty. However, western states charge royalties so that they share in the proceeds from the hardrock minerals extracted from their lands. For years, some mining operators abandoned land used in their mining operations, creating environmental and physical safety hazards. To curb further growth in the number of abandoned hardrock mines on federal lands, in 1981, the Department of the Interior's Bureau of Land Management (BLM) began requiring mining operators to reclaim BLM land disturbed by these operations. This testimony focuses on the (1) royalties states charge and (2) number of abandoned hardrock mine sites and hazards. It presents information from two GAO reports: Hardrock Mining: Information on Abandoned Mines and Value and Coverage of Financial Assurances on BLM Land, GAO-08-574T (Mar. 12, 2008) and Hardrock Mining: Information on State Royalties and Trends in Imports and Exports, Twelve western states that GAO reviewed assess royalties on hardrock mining operations on state lands. The 12 western states are Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. In addition, each of these states, except Oregon, assesses taxes that function like a royalty, which GAO refers to as functional royalties, on the hardrock mining operations on private, state, and federal lands. The royalties the states assess often differ depending on land ownership and the mineral being extracted. For example, for private mining operations conducted on federal, state, or private land, Arizona assesses a functional royalty of 1.25 percent of net revenue on gold mining operations, and an additional royalty of at least 2 percent of gross value for gold mining operations on state lands. The actual amount assessed for a particular mine may depend not only on the type of royalty, its rate, and exclusions, but also on other factors, such as the mine's location relative to markets. To estimate abandoned hardrock mine sites in the 12 western states and South Dakota, we developed a standard definition for these mine sites and asked the states to report the number of mine sites and estimate the number of features at these sites that pose physical safety hazards and the number of sites with environmental degradation. Using this definition that GAO provided, states reported that there are at least 161,000 abandoned hardrock mine sites in their states, and these sites have at least 332,000 features that may pose physical safety hazards and at least 33,000 sites that have degraded the environment. An Abandoned Mine Shaft in Oregon on BLM Land Source: BLM. GAO-08-849R (July 21, 2008). GAO,

Mining of Hardrock minerals on federal lands is governed primarily by the General Mining Law of 1872. The law grants free access to individuals and corporations to search for minerals in public domain lands, and allows them, upon making a discovery, to stake a claim on that deposit. A claim gives the holder the right to develop the minerals and may be "patented" to convey full title to the claimant. This book explores the issue of whether this law should be reformed, and if so, how to balance mineral development with competing land uses.