Mining Royalty Reform Could Pit Reid Against Obama Administration

From The Colorado Independent:

Unlike oil and gas extraction, pulling hard-rock minerals like uranium, gold and copper out of the ground is a royalty-free proposition in the United States, despite the often enormous costs of cleaning up public lands after the fact.

The Environmental Protection Agency in a filing on Monday noted that hard-rock mining has impacted 40 percent of all western watersheds and that nationwide 28 percent of the toxic pollution generated in the United States comes from the mining industry –- the most of any sector. The EPA also concluded mining represents a major taxpayer burden because of cleanup costs.

The EPA filing was presented during a hearing Tuesday of the U.S. Senate Energy and Natural Resources Committee chaired by Colorado Sen. Mark Udall. Former Colorado Sen. Ken Salazar, now Secretary of the Interior, testified the Obama administration wants to see the 1872 Mining Law reformed in the current Congress.

Mining reform legislation has been introduced in both the House and the Senate, and both versions would set up some sort of royalty structure for hard-rock mining on federal lands. The 137-year-old system of filing for relatively inexpensive and easy-to-acquire “patents” would be scrapped, and a fund would be set up to pay for massive cleanup efforts that for decades have been passed off to taxpayers when mining companies go bankrupt. [...]

Salazar likely will get a fight from Sen. Majority Leader Harry Reid, D-Nevada, who in the past has blocked reform measures because of gold mining interests in his home state.