Resurrecting Dracula: Mining Royalties Bill in the News -- Again

The print edition of The Wenatchee World for Thursday, December 13, carried an article on page B7 titled, "1872 law still saving miners from paying public-land royalties."  (The online version of the article was available at the time of writing at the link here.)

The focus of this article, which is attributed to the Chicago Tribune, is an unspecified piece of legislation co-sponsored by Arizona Representative Raul M. Grijalva (D) that would require those who mine hard-rock deposits of gold, silver, copper and other minerals to pay a royalty of 12.5% to "fix" what the paper quotes Grijalva as calling, "this big hole in the federal government's revenue stream."

A search of the Chicago Tribune website failed to turn up the exact article appearing in the World, although there were several pieces on the subject.  A search of THOMAS turned up one bill dealing with mining that was co-sponsored by Representative Grijalva: H.R.3446, Fair Payment for Energy and Mineral Production on Public Lands Act.

Introduced over a year ago, on November 16, 2011 by Massachusetts Representative Edward J. Markey (D), H.R.3446 is very much like H.R.2262 and its ilk reported on by this writer in 2008-9 here, here, here, and here.  A re-reading of the main points of H.R.2262 presented in the aforementioned posts would do much to educate the reader regarding H.R.3446, the principal difference being the latter's imposition of a 12.5% royalty rate on all mines as opposed to the earlier bills' rates of 4% for existing mines and 8% for new ones.

Below is this writer's summary of some of the noteworthy provisions of H.R.3446, together with the pertinent sections, derived from a cursory scan of the bill's text:

1.  Casual use, which is exempted in the bill, includes hand panning and non-motorized sluicing - SEC. 502. (a)(4)(B) but not suction dredging - SEC. 502. (a)(4)(C).

2.  Establishes a royalty of 12.5% of the gross income from mining - SEC. 511. (a)(1).

3.  Requires recordkeeping - SEC. 511. (c) and establishes audits - SEC. 511. (d).

4.  Penalties for failure to comply with the royalty requirements are the same as under the Federal Oil and Gas Royalty Management Act - SEC. 511. (k).

5.  Specifies which lands are open to mineral location - SEC. 521. (a) and which are not - SEC. 521.  (b).

6.  Requires permits for other than casual use mineral activities - SEC. 532.

7.  Requires a permit for exploration - SEC. 533.

8.  Requires a permit for operation - SEC. 534.

9.  Requires the posting of "financial assurance" payable to the United States for reclamation - SEC. 536.

10.  Establishes "user fees" for mineral activities - SEC. 542.

11.  Establishes inspection and monitoring requirements - SEC. 543.

12.  Judicial review of regulations implementing this bill may only be made in "the United States Court of Appeals for the District of Columbia." - SEC. 545. (b)(1).

13.  Penalties for violations of permit requirements or regulations are up to $25,000 per violation per day - SEC. 546. (d)(1) and $1,000 per violation per day for failing to correct a violation - SEC. 546.  (2).

14.  Federal agents may without notice enter any premises to inspect records - SEC. 552. (d)(1) and may stop and inspect any vehicle suspected of carrying locatable minerals whether on a mining claim - SEC. 552. (4) or off - SEC. 552. (5).

Like the earlier legislative proposals, this one is claimed by its proponents to target the hard-rock mining operations of the large corporations while in reality sweeping all mineral activities except the most miniscule so-called "recreational" placer mining into its maw.

Equally fallacious is the claim by Representative Grijalva that the income to the federal government generated by this legislation would constitute a "fix" for a "big hole" in the government's revenue take.  The World article quotes a GAO report to the effect that "the sales value of hard-rock minerals from federal land (was estimated) to be about $6.41 billion in fiscal year 2011."  Applying 12.5% of this putative $6.41 billion to the government's acknowledged $16.3 trillion debt is equivalent to a man with a $100,000 mortgage making an additional annual payment of $4.92.

Rather than solve the federal governments budget crisis, passage of H.R.3446 would render almost all small-scale mining operations cost-ineffective, thereby increasing unemployment and economic hardship.  After all, it is not the individual gold miner with his small, gasoline-powered dredge who is responsible for the economic death-spiral in which this country finds itself; the real culprit is the unconstitutional Federal Reserve system which, over the past 99 years of its existence, has counterfeited away over 95% of the dollar's value and with it the financial well-being of the American people.  Rather than sucking more of the life-blood out of our already sick economy, Representatives Markey, Grijalva, and their cohorts should concern themselves with measures to solve rather than exacerbate our economic problems.  But that, as the saying goes, is another story.

At the time of this writing, H.R.3446 remains in the House Subcommittee on Energy and Mineral Resources.  Interested parties can follow its progress (or, hopefully, lack thereof) here.

For those interested in the text of this legislation, follow the link here.

In addition, the websites of the two representatives mentioned in this story are linked here should anyone wish to contact them with an opinion:  Congressman Raul Grijalva; Congressman Ed Markey.

Oregon Considers Outlawing 'Motorized' Placer Mining

The Oregon Senate Committee on Environment and Natural Resources has scheduled a work session on December 11 for LC 2125, a measure which, if adopted in its present form, would prohibit placer mining "using any form of motorized equipment or motorized dredge."  For violators, the consequences envisioned include a "maximum of one year’s imprisonment, $6,250 fine, or both."

LC 2125 further declares:

SECTION 6. This 2013 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2013 Act takes effect on its passage.

For Washington miners who worry about the suffocating hand of government over-regulation in California reaching ever closer to our own region (which worries appear well founded), a link to the appropriate committee agenda may be found here and the text of the measure here.

WSM intends to keep a weather-eye on this matter.

Lake Joy Geologic Map Available

The Washington State Department of Natural Resources, Geology and Earth Resources Division, has announced the availability of a geologic map of the Lake Joy 7.5 minute quadrangle.  The details are:

Map Series 2012-01. Geologic map of the Lake Joy 7.5-minute quadrangle, King County, Washington, by J. D. Dragovich, M. L. Anderson, S. A. Mahan, J. H. MacDonald, Jr., C. P. McCabe, Recep Cakir, B. A. Stoker, N. M. Villeneuve, D. T. Smith, and J. P. Bethel. 2012. Two color plates, 45 x 36 in. and 36 x 48.5 in., scale 1:24,000, with 79 p. text and 1 Microsoft Excel file.

This publication is available free by download from the link below:

 http://www.dnr.wa.gov/Publications/ger_ms2012-01_geol_map_lake_joy_24k.zip

The announcement also states that hard copies may be ordered "through the Washington State Department of Enterprise Services (http://www.prt.wa.gov/) Online Ordering Options. Select 'MyFULFILLMENT', sign in, select 'Natural Resources (Geology Division)' under Fulfillment (by Agency). Publications are organized by series, and listed prices include shipping and handling; follow the website instructions to complete your purchase."

DNR Releases New Version of Washington Interactive Map

The Washington State Department of Natural Resources, Division of Geology and Earth Resources, has announced the release of a new version of the interactive geologic information portal.

Visiting this link:

https://fortress.wa.gov/dnr/geology/?Theme=wigm

takes you to the DNR Viewer Application displaying the Washington Interactive Geologic Map.  Information available on the map includes Surface Geology at various scales, several Seismogenic Features, Ground Response to seismic events, Tsunami inundation areas, Base Layers, a Street Map, and Aerial Imagery.  Map controls allow one to zoom to a chosen geographic area or to latitude and longitude coordinates, find an address, bookmark points of interest, identify features, query layers, draw and measure on the map, download a georeferenced map snapshot, and create a pdf for printing.

Other map themes are available from a drop-down box in the upper left corner of the map page or from this link:

http://www.dnr.wa.gov/ResearchScience/Topics/GeosciencesData/Pages/geology_portal.aspx

DNR reports that the new application runs on ArcGIS Server 10.0 and is more efficient than the previous version.  They also promise further enhancements in the near future including the addition of new themes and utilities.

WSM intends to report on the future enhancements to this tool as they are announced.  In the meantime, take the time to have some fun playing around with this useful system.

Small-scale Miner Wins Victory in Federal Court

At long last a bit of good news for the small-scale mining community.

Thomas E. Tierney, a pick-and-shovel miner in Arizona, was cited by the Forest Service in May of 2011 for failing to obtain a special-use authorization before working his claim.  The Forest Service charged that Tierney's digging had caused significant disturbance of surface resources.

On October 3, 2012, United States Magistrate Judge Charles R. Pyle found Tierney NOT GUILTY of the charges filed against him by the Forest Service.  In his eleven page order, Judge Pyle did a thorough job of demolishing the Forest Service's arguments, and it is for this reason that I am making a pdf file of the decision available at the link below as it contains information and explanations of the law that could prove useful to miners and prospectors who operate on Forest Service lands.

Download and read Judge Pyle's decision in United States of America v. Thomas E. Tierney here:

https://www.box.com/s/yb1y2thkvyutwbzwdv0t

"Miner Dave" Troubles Continue

The South West Oregon Mining Association (SWOMA) reported today that US Forest Service personnel appear to have stolen two camp trailers and other personal property belonging to David "Miner Dave" Everist from his Twin Cedar Placer property on the Sturgis Fork of Carberry Creek in Josephine County, Oregon.

Full details of this latest outrage are available at the SWOMA webpage here.

Everist's previous difficulties with the USFS were the topic of earlier posts here, here, here, and here.

New Washington Geology Publications Available

Washington DNR's Geology and Earth Resources Division has announced the availability of the following publications:

Open File Report 2011-3. Geologic map of the Hoodsport 7.5-minute quadrangle, Mason County, Washington, by Michael Polenz, B. A. Miller, Nigel Davies, B. B. Perry, K. P. Clark, T. J. Walsh, R. J. Carson, and J. F. Hughes. 2012. 33 x 36 in. color sheet, scale 1:24,000, with 18 p. text. (Available online at http://www.dnr.wa.gov/Publications/ger_ofr2011-3_geol_map_hoodsport_24k.zip [16.9 MB].)

Open File Report 2011-4. Analytical data from the Hoodsport 7.5-minute quadrangle, Mason County, Washington—Supplement to Open File Report 2011-3, by Michael Polenz, B. A. Miller, Nigel  Davies, B. B. Perry, J. F. Hughes, K. P. Clark, T. J. Walsh, J. H. Tepper, and R. J. Carson. 2012. 42 p. (Available online at http://www.dnr.wa.gov/Publications/ger_ofr2011-4_hoodsport_supplement.pdf  [7 MB].)

Open File Report 2011-5. Geologic map of the Holly 7.5-minute quadrangle, Jefferson, Kitsap, and Mason Counties, Washington, by T. A. Contreras, S. A. Weeks, K. M. D. Stanton, B. W. Stanton, B. B. Perry, T. J. Walsh, R. J. Carson, K. P. Clark, and S. A. Mahan. 2012.  37 x 36 in. color sheet, scale 1:24,000, with 13 p. text. (Available online at http://www.dnr.wa.gov/Publications/ger_ofr2011-5_geol_map_holly_24k.zip [14 MB].)

Open File Report 2011-6. Analytical data from the Holly 7.5-minute quadrangle, Jefferson, Kitsap, and Mason Counties, Washington—Supplement to Open File Report 2011-5, by T. A. Contreras,
S. A. Weeks, and B. B. Perry. 2012. 16 p. (Available online at http://www.dnr.wa.gov/
Publications/ger_ofr2011-6_holly_supplement.pdf [7.9 MB].)

Open File Report 2011-7. Washington State School Seismic Safety Pilot Project—Providing safe schools for our students, by T. J. Walsh, J. D. Schelling, and the Washington State Seismic Safety Committee. 2011. 14 p. (Available online at http://www.dnr.wa.gov/Publications/ger_ofr2011-7_school_pilot_project.pdf [8.3 MB].)

Information Circular 113. Loss estimation pilot project for lahar hazards from Mount Rainier, Washington, by Recep Cakir and T. J. Walsh. 2012. 17 p. (Available online at http://www.dnr.wa.gov/
Publications/ger_ic113_mt_rainier_lahar_hazards.pdf  [2.7 MB].) Printed copies may be obtained free of charge from the Washington State Department of Enterprise Services. (See page 3 of the Publications List http://www.dnr.wa.gov/ResearchScience/Topics/GeologyPublicationsLibrary/Pages/pubs.aspx] for ordering instructions.)

Also released are updates of five Tsunami Evacuation Brochures for the Washington Coast: Aberdeen and Hoquiam (15.5 MB), Clallam Bay (17.6 MB), Cosmopolis and South Aberdeen (14.3 MB), La Push (2.4 MB), Lummi Island (4.0 MB), Neah Bay and Vicinity (4.3 MB), and Port Angeles and Vicinity (5.2 MB). (Available online at http://www.dnr.wa.gov/ResearchScience/Topics/GeologyPublicationsLibrary/Pages/tsuevac.aspx.)

For those of you who would like to receive notification of these publications directly, you may subscribe to the GEOLOGY-PUBLICATIONS list at the following link:

 http://listserv.wa.gov/cgi-bin/wa?SUBED1=GEOLOGY-PUBLICATIONS&A=1

House Passes Mining Deregulation Bill

According to an Associated Press story reported here and elsewhere on the Web, House Republicans have "pushed through" a bill, H.R.4402, that would:

...give the federal government discretion to eliminate its environmental reviews of mining projects and accept state reviews instead. It would curtail the time for environmental reviews by limiting the review period to 30 months unless mining companies and the government agreed to an extension.

It would also set a 60-day time limit to file a legal challenge to a mining project, limit injunctions to what is necessary to correct legal requirements and prohibit payment of attorneys' fees, expenses and other costs billed to taxpayers.

The AP article goes on to state that the measure will likely fail in the Democratic-controlled Senate.  Whether that is the case may depend in good part on the actions of the mining community in support of this legislation.

For those interested, the status of H.R.4402 may be monitored by using the search box here, and the text read here.

New 49'ers To Appeal Dredge Ruling To Supreme Court

WSM has learned that The New 49'ers, a prospecting association dedicated to small-scale gold mining and headquartered in California, plans to appeal to the U.S. Supreme Court the recent ruling of the U.S. Ninth Circuit Court of Appeals regarding suction dredge mining in Northern California's Klamath River. (See related post here.)

Successfully prosecuting the appeal will depend in large part on having sufficient funds to pay the attorneys, according to Dave McCracken, Founder and General Manager of The New 49'ers.

Those wishing to help fund the appeal may send checks to:

The New 49'ers
P.O. Box 47
Happy Camp, CA 96039

Donors should write a note on the check that it is for the legal fund.  They will then receive acknowledgement of the donation from The New 49'ers.

This issue is of importance to miners in Alaska, Arizona, California, Idaho, Montana, Nevada, Oregon, and Washington, as the Ninth Circuit ruling opens the door for similar rulings in all of the above states.

WSM will continue to update this story as it unfolds. 

California Sheriff Issues Statement Supporting Miners

John D'Agostini, the Sheriff and Coroner of El Dorado County, California, sent the following letter in support of miners to Jerry Hobbs, President of Public Lands for the People.  Mr. Hobbs has requested that this message be forwarded to as many in the mining community as possible.  The complete text follows:

Dear Mr. Hobbs,

The purpose of this letter is to support your efforts to preserve the constitutional, historical and property rights of miners and to provide you with my perspective on the impact that mining and suction dredging restrictions have on the public health and safety in El Dorado County. As you are aware, miners have contributed to the rich and enduring legacy of El Dorado County. It was, after all, the gold rush of 1849, spurred by the discovery of gold in Coloma, El Dorado County that began the rich and prosperous path to California’s statehood. Obviously, miners contributed to the development and economic vitality of our state and many of our local communities.

I am alarmed at recent attacks against the mining industry in El Dorado County and other parts of the state. The studies and science relied upon to support the suction dredging ban in California is flawed at best. All are smattered with statements that suction dredging “may”, “might”, “could”, “is possible”, regarding harm to the environment.

This is not reliable science when other studies in support of suction dredge mining give specific facts that document proof that suction dredge mining cleans rivers and streams of mercury, lead, trash and other harmful substances and actually improves wildlife habitat.

I am also concerned about the constitutionality and legality of the tactics and strategies used to enact and enforce the laws that deny miners their rights to earn a living for themselves and their families. I have observed a consistent imbalance between laws implemented to protect the natural environment and those that impact people. This includes the unreasonable regulations imposed upon the miners of El Dorado County.

The El Dorado County Sheriff’s Office derives most of its revenue for field operations (deputies, management, detectives, professional staff, public safety dispatchers, specialized units, etc.) and jail staff (correctional officers, management, court bailiffs, etc,) from general fund tax dollars. The majority of these tax dollars come from property and sales taxes paid by citizens of El Dorado County.

Regulatory provisions have increased unemployment, reduced the miner’s ability to survive, have eliminated precious tax revenues, threaten businesses, and jeopardize the constitutional rights of our miners. My responsibility to provide law enforcement services to the people of the county is jeopardized by any regulatory enforcement program that reduces our tax base.

I see no evidence that proper coordination and “consistency” has been initiated or achieved pursuant to federal and state law. The implementation of unreasonable environmental policies at the expense of people and jobs adversely impacts wages and tax revenues. Due to the economic decline of traditionally vibrant activities such as mining, El Dorado County has been impacted.

I support our miners and their Constitutional rights. The decline of the mining industry, along with other vital vocations such as timber, farming and ranching is having a negative impact on our economy, traditions, heritages and public health and safety.

Should you have any questions, please contact me at (530) 621-6576

Sincerely,
John D’Agostini
Sheriff ~ Coroner
Public Administrator
cc: Assemblywoman Beth Gaines
Senator Ted Gaines
El Dorado County Board of Supervisors 

Re:
March 14, 2012
Public Lands for the
People
President Jerry Hobbs
3700 Santa Carlotta
St
La Crescenta, CA 91214-1048
http://plp2.org/forums/showthread.php?521-El-Dorado-County-Sheriff-Coroner-support-property-rights-of-miners

Small-Scale Miners Are Not Represented On The Forest Service Advisory Committee

In February I published a post here about the Forest Service seeking applicants for an advisory committee to assist in the implementation of the new Land Management Planning Rule regarding use of the national forests.

It seems the Forest Service has now chosen the members of this committee and, unsurprisingly, the small-scale mining community has been passed over.

According to an email received recently, here is the breakdown of membership on the committee by interest group (emphasis added):

Representing the Public at Large - 2 members
Representing American Indian Tribes - 1 member
Representing Commercial or Recreational Hunting and Fishing - 1 member
Representing Conservation Organizations or Watershed Associations - 3 members*
Representing County or Local Elected Officials - 2 members
Representing Developed Outdoor or Commercial Recreation - 1 member
Representing Dispersed Recreation - 1 member
Representing Energy and Mineral Development - 1 member
Representing National, Regional or Local Environmental Organizations - 2 members**
Representing Private Landowners/Grazing - 2 members
Representing the Scientific Community - 1 menber
Representing State Elected Officials - 1 member
Representing the Timber Industry - 2 members
Representing Youth - 1 member

As the reader can see, conservation and environmental organizations (for all intents and purposes one and the same), the most vociferous foes of small-scale mining, enjoy a combined total of 5 seats on the committee compared to 1 for mining interests.  But it gets worse.  The mining representative is Greg Schaefer, Arch Coal vice president, external affairs, western region, of Gillette, Wyoming.  While I have no reason to think that Mr. Schaefer is anyone other than a fine and upstanding individual, as a coal company executive he is hardly representative of the small-scale precious metals mining community.  While it may be that no one from our community applied for a position on the committee (which would be unfortunate, if true), the author knows of one such individual who contacted him who was interested in doing so.

For those readers interested in seeing which individuals, and the organizations they represent, were selected by the Forest Service, I have uploaded a copy of the email to the link here.

*The Nature Conservancy, Trout Unlimited, Blue Mountains Forest Partners
**The Wilderness Society, Defenders of Wildlife

Federal Court Ruling Threatens Small-Scale Mining

Just as the summer prospecting season approaches, the U.S. Ninth Circuit Court of Appeals has ruled that suction dredge mining may not be undertaken in endangered species habitat without prior approval of federal wildlife officials.

Judge William A. Fletcher, writing for the majority, said federal law required the Forest Service to consult wildlife agencies before approving activity that might harm an imperiled species. The required review will delay approval for mining operations in endangered species habitat in the circuit's nine states.*

Do note that Washington is one of those unfortunate nine states.

For more information on this lamentable development, please see the *Los Angeles Times article here and the MyNorthwest.com article here.