casefile management standards, and availability of Mining Law Surface Management Assistance Teams to identify program strengths and weaknesses and

make recommendations.

In 1990, we issued a new mandatory bonding policy for activities conducted under plans of operations, including bonds of 100 percent of reclamation costs for operators with a history of noncompliance and for cyanide operations. We are now modifying our regulations to require financial guarantees for smaller "notice level" operations.

o In 1990, we issued a cyanide management policy to ensure that operations using cyanide or other chemical leachates are conducted so as to provide for safety of the public as well as the environment.

We have established a Cyanide Advisory Committee to give technical assistance to the field and to help us keep abreast of cyanide and reclamation issues.

0 New draft reclamation standards are being circulated for review and

comment.

o

A new surface management handbook is being developed to address issues specifically related to locatable minerals and provide national consistency.

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• We are in the process of issuing instructions to field offices to begin inventorying the reclamation status of all operations since promulgation of the surface management regulations in 1981 and to review current practices to identify successful techniques.

o We are in the process of amending regulations that regulate uses of a mining clain to provide for legitimate occupancy and to eliminate abuses by squatters on the public lands who are trying to use the Mining Law to justify their presence on the lands.

The BLM is considering further modification of the surface management regulations to enhance the implementation of the Mining Law of 1872, as amended.

We are engaged in ongoing reexamination and reevaluation of our regulations and policies that pertain to administration of hardrock mining, particularly those features that focus on reclamation and other environmental concerns. We believe we have adequate authority to revise those regulations and policies as needed to achieve our goals.

In fact, I have asked our field offices to highlight mining operations that have shown exceptional sensitivity and concern for the environment. Through this "Showcasing of Mineral Activities" program, it is our intent to establish benchmark achievements in mined-land reclamation that will be used as a basis to encourage similar high standards for reclamation of other mining operations on public lands. The purpose of this program is to show that sining and enviromental protection are compatible and that excellent reclamation truly makes mining a multiple use activity.

As the BLM's surface management program continues to evolve, the Mining Law will continue to function successfully on public lands.

RECOMMENDATIONS FOR STATUTORY CHANGE IN THE MINING LAW SYSTEM

We believe certain aspects of the Mining Law of 1872 warrant further evaluation and consideration for possible amendment. These are annual labor, distinctions between "common varieties" of mineral materials subject to sale and "uncommon varieties" subject to location under the Mining Law, and the question of obtaining a fair return to the Government for surface use and for issuance of a patent.

Annual Labor Holding Fee

We favor the Administration's proposal, included in the 1992 Budget, to collect a holding fee of $100 per claim instead of the $100 worth of annual assessment work required under current law. The $100 fee, which would also encompass several administrative fees, would reduce unnecessary surface disturbance, simplify fee payment and administration, discourage nuisance claims, and contribute a significant amount toward support of our Mining Law Administration Program. I strongly urge your support for this proposal.

The holding fee would replace the annual assessment work required under current law as well as several administrative filing and processing fees. In order to maintain possessory interest in a properly located claim, the $100 would have to be paid at the beginning of the assessment year.

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This proposal, which is included in the President's 1992 Budget, has several expected benefits. It is expected to reduce unnecessary surface disturbance carried out merely to maintain a claim. It will also discourage nuisance

claims.

It is estimated that holding fee revenues will total $97.5 million in 1992. Of that amount, $12.3 million will be used to fund the operation of the current Mining Law Administration program in the BLM and an additional $5.0 million will be made available to the BLM to offset the costs of administering the holding fee program, with the remaining $80.2 million to be deposited to the General Fund of the Treasury. All of these funds proposed in the President's Budget fall within the discretionary spending cap.

Clarification of Law Governing Disposition of Common and Uncommon Varieties of

Mineral Materials

The criteria used to determine whether a mineral deposit is a "common variety" determines whether that mineral deposit can be disposed of or sold under the Material Sales Act of 1947 or located under the Mining Law and patented.

The Act of July 23, 1955 removed "common varieties" of sand, stone, gravel, pumice, pumicite, and cinders from operation of the Mining Law. A common variety deposit" is defined in the 1955 Act as one which does not have "some property giving it distinct and special value." The standards applied in "common variety" determinations have evolved through numerous administrative and judicial decisions in which this "distinct and special value" clause has been interpreted. The BLM must rely solely on these decisions when making "commodˇvariety" determinations in the field.

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Judicial and administrative determinations defining "common variety" characteristics are not consistent and rulings are often unpredicatable,

resulting in high costs for the miner and the Government.

The BLM field

offices have identified these determinations as a major obstacle to Federal mineral development. Thus, we support amendment of the 1947 and 1955 Acts by recommendations I will now describe to resolve these difficulties. Based on

our extensive experience with this area, we strongly believe any amendments to these Acts should:

eliminate the term common varieties" from the law;

о explicitly include by name certain additional mineral materials within the purview of the Material Sales Act and exclude them from operation of the Mining Law;

define more clearly those categories of mineral materials that are subject to sale and exclude more descriptively those categories that remain subject to location; and

repeal the Building Stone Placer Act which allows for entry in lands principally valuable for building stone.

These changes would result in a system under which mineral materials of widespread occurrence, that are used for building, construction, landscaping, decoration, ornamental arts, animal feed supplements, and agricultural purposes would be clearly covered under the Material Sales Act. On the other hand, deposits used in manufacturing, industrial, processing, or chemical operations would continue to be available under the Mining Law.