This presentation is made to inform you of the California Mining Association's position that the 1872 Mining Law, in its present form, is the best system to encourage prospecting and exploring for locatable minerals and provide for the development of those minerals discovered at competitive prices. Originally established as the California Mine Operators in 1961, our Association was reorganized in 1977 as the California Mining Association. The Association consists of 37 regular members (companies), 63 associates (suppliers), and 137 individuals. Virtually all of the operating mines and most of the active exploration groups in California are members of the California Mining Association. The 1872 Mining Law is a codification and compilation of the rules and regulations of the mining districts active prior to 1872. The Law was designed to develop the minerals of the West and our country's natural resources. The goal in 1872 was to obtain and maintain competitive minerals production in the world market by encouraging self-initiative. The 1872 law has allowed the United States of America to enjoy a competitive advantage in many areas of mineral exploration and production. We, as a country, have never needed to responsibly develop our resources more than we need to do so today. The goals which caused the Law to be enacted are as relevant today as they were in 1872. We recognize that minor elements of the 1872 Mining Law could be revised, however, the small changes that would be appropriate are not sufficient to warrant full review of the Act. Any document in existence for 105 years is bound to need slight revision, but tinkering with legislation of proven value is more likely to harm the system than to help it. To say that the Law is identical with the original Act ignores that the 1872 Mining Law does not operate in a vacuum. Since 1872 more than 69 statutes, hundreds of major legal cases, and hundreds of administrative regulations have refined the 1872 Mining Law. As an example of the changed circumstances within which the Mining Law operates, consider that a recent operation in California required over 225 permits in order to go into production. In another recent case, the Supreme Court of the United States has recognized an extensive State right to regulate activities along the California coast. The Federal Land Policy and Management Act of 1976 invests board-ranging power to control exploration and development on Bureau of Land Management lands. The list goes on, but the point is made. The system placed in law by the 1872 Mining Law is adequately regulated and works efficiently. Revising the 1872 Mining Law at this late date would not be an act of modernization, but would unroot the mainstay of our system for mineral development and would put into question 105 years of legislation, case law, administrative regulations and decisions. Revising or repealing the 1872 Mining Law would put miners rights in a state of uncertainty and jeopardize competitive domestic minerals production. Today, just as in 1872, the United States of America has the goal of maintaining competitive minerals production. This policy was reaffirmed in the Mining and Minerals Policy Act of 1970. The United States is competitive in mineral production because of the incentive which has caused the independent mine operators to amass expertise in the field and to work with speed, efficiency, and continuity. The efficiency of the system as it currently exists can be appreciated by noting that over 140,000 mining claims are on record with the Bureau of Land Management in Sacramento, California. Most of these are claimed by individuals or "small miners". In 1977 the American Mining Congress conducted a nationwide study of property submitted from small miners to large companies. Over a six year period there were approximately 2,900 property submittals, 85% of which were submitted by small miners; 43% of those were investigated further, and as a result 12 to 18 properties were brought into production. The process of review is immense, the expense huge, and the success rate very small, and yet it works. The public lands are being explored; minerals are being developed. Exploration and review of this magnitude cannot take place while miners rights are in a state of flux, or while the exploration program is in a system other than self-initiation. In summary, let me slightly rephrase the old bromide: "Its working fine so let's don't fix it." STATEMENT OF THE GYPSUM ASSOCIATION BEFORE THE SUBCOMMITTEE ON MINING AND NATURAL RESOURCES COMMITTEE ON INTERIOR AND INSULAR AFFAIRS U. S. HOUSE OF REPRESENTATIVES MINING LAW OF 1872 June 23, 1987 The Gypsum Association is a trade association representing the vast majority of miners and processors of this mineral essential to the construction industry and important in several other basic industries. The members include: The Celotex Corporation, Tampa, Florida Centex American Gypsum Company, Albuquerque, New Mexico Domtar Gypsum America Inc., Oakland, California Georgia-Pacific Corporation, Atlanta, Georgia Gold Bond Building Products, Charlotte, North Carolina Norwest Gypsum, Seattle, Washington Pabco Gypsum, Newark, California Republic Gypsum Company, Dallas, Texas Temple-EasTex Inc., Diboll, Texas United States Gypsum Company, Chicago, Illinois Western Gypsum Company, Glendale, Arizona Windsor Gypsum Inc., McQueeney, Texas We respectfully request that this statement be included in the hearing record. Retention of the 1872 Mining Law as modified is a vital concern to the gypsum producers and other industrial mineral producers. The basic purpose of the Law, as we understand, was to encourage the orderly development of mineral resources by anyone with enough initiative to diligently apply their efforts to the mining of a mineral resource. These prudent men would aid the development of the country as well as profiting from their labors. In practice, the Law, as modified, has worked well. For well over 100 years, prospectors have searched for valuable minerals, and staked claims in order to do the essential exploration and development work. A major reason the Law has worked well is that it allows for preliminary investigation for valuable minerals with minimal delay and prior approvals. Most mineral showings and claims have little or no value; however, the great majority of valuable hard rock mineral deposits on public lands are discovered and developed under the 1872 Mineral Laws as modified. Deposits of minerals considered worthless today may be the base of new materials and new industries in tomorrow's world. The current Mining Law gives everyone free and equal access to potentially valuable hard rock mineral deposits, albeit on a "first-come, first-served" basis. As long as the persons establishing claims are willing and able to do work on the deposits, their ownership rights are continued. If these persons are able to prove economically valuable |