STATE OF ARIZONA DEPARTMENT OF MINES AND MINERAL RESOURCE'S The Honorable Nick J. Rayhall II Chairman, Sub-committee on Mining & Natural Resources 343 Cannon, House Office Building July 25, 1987 Sir: The State of Arizona has been well served by the Mining Law of 1872. Under this law prospectors and miners have been encouraged to seek out and develop ore deposits. Arizona and the Nation have been, and continue to be, recipients of great, primary wealth derived from these mineral resources. In order to maintain a strong position in mineral production, the United States must continue the present location system and must continue to allow ready access to mineralized lands. The location system for acquiring mineral rights is a very effective framework within which mineral targets can be tested and developed in a quick and simple manner. The imposition of a leasing system, however, would frustrate mineral exploration and discourage ore development. established, a leasing system for all minerals would in effect centralize control of exploration and development under the jurisdiction of a few government employees. Initiative and inventiveness would be destroyed, and this Nation's ability to compete with foreign powers would be severely lessened. If The Arizona Department of Mines and Mineral Resources has aided the explorationist and mine developer for nearly 50 years. During this half century, many new mineral discoveries, resulting in producing mines, have been made. Most of these mines have been brought into production on originally unpatented claim locations. Very few of these locations, incidentally, ever receive patent. From the period beginning October 22, 1979 (date when all claims had to be recorded with the Bureau of Land Management), until January 25, 1987, there were a total of 180,188 locations recorded in Arizona. During this same period only 271 claims have been patented. These patents represent less than one percent of the total. locations; moreover, greater than 35% of the patents were issued on land parcels of less than 20 acres. The unpatented claims have been located on federally administered lands that, until recently, were open and readily accessible to the individual prospector. Legislative modifications (i.e., Wilderness Act, Mineral Lands Leasing Act, creation of national parks, monuments, military reservations, wildlife refuges, etc.), however, are gradually restraining access to favorable areas of mineral exploration. Enactment of a total, or much-expanded, minerals leasing law would further constrict the role of the United States as a world leader in mineral production by transferring the capability to prospect or to mine into the hands of fewer, large corporations. Small firms or individuals will not have the financial resources to effectively compete within a leasing system. It is difficult to argue against the effectiveness of the Mining Law of 1872. Like the Constitution, with few amendments, the Mining Law has been an instrument ideally suited to the character of this Nation. It promotes individual effort and responsibility in concert with the highest goals of the majority of all Americans. The Arizona Department of Mines and Mineral Resources urges, therefore, that no major revision, such as a leasing act, be written to replace the Mining Law. No changes are recommended for the Mining Law of 1872. It has come to the attention of the Eastern Oregon Mining Association The 1872 Mining Law should be retained intact. The provisions of the law are among the most straight forward and simple of the many laws on the books. For more than 100 years now the vital interests of the nation have been well served by the 1872 Mining Law, it accomplishs it's goals by; Allowing large amounts of the public lands to be repeatedly prospected for minerals and the same to be developed. It allows thru amendments curruntly on the books for adequate control and protection of the environment by the public agencies charged with the managment of the public lands. Perhaps most importantly it allows for competition on a near equal basis between the major exploration/mining companies and the independent prosp ector/miner. It is this last point which would be the greatest lose to the nation should the Mining Law be repealed and replaced with a leasing system as many would advocate. There can be no doubt that the replacment of the Mining Law with a lease system will be the end of the small mining industry. Some might ask what that would matter to the well being of the nation. First, studies by the American Mining Congrees (AMC) have shown that even in this day of high tech prospecting it is still the independent prospectors initial work that leads to many of the new discoveries. Second, what we call the "Cottage Level Mining Industry" (CLMI) provides en important resource to the nation, Miners, not just ordinary miners, but miners who are skilled at rapid startups on small deposits. Should the day ever arrive when this nation is cut off from foreign sources of vital stratigic minerals it will be of great importance to have quantity of miners versed in quick startups. Third, the (CLMI) provides one of the last bastions for the entrepreneur. Any man or women with the will to do so can build a business from nothing, it is not a easy route but it can be done. One need only look at a chart shoving economic recessions and gold production to see that historicaly many of the nations uneployed have turned to mining to feed thier families in the days before welfare, in many of the western states this remains true even today. These are some of the many reasons that the Eastern Oregon Mining Association feels that the 1872 Mining Law has served this nation well and should be retained. Respectfully submitted, Wayne W. Eades President Mr. Chairman, Kerr-McGee Corporation is of the opinion that the present Mining Law is adequate. The continuation of the current law will provide stability and assurance to the Mining Industry and Investing Community for the development of minerals on the Public Domain. The value of the 1872 Mining Act over the past 100 years is impossible to estimate. It has encouraged individuals as well as companies to search for minerals without excessive delays for paperwork and expensive land costs. The Act provides the necessary tenure to the mineral holder for the protection of their investment. The mining industry has a duty to husband and protect the lands on which it operates. There is a great deal of rhetoric in the media and from environmental special interest groups that would have this Nation believe that the Mining Act of 1872 is an automatic invitation for wholesale damage to the land resources of this nation; that the Mining Act does not provide for the protection of the environment. That is not correct. All mineral development, under the Mining Act, on public lands are subject to the same environmental regulation as any other operation. No significant work can be undertaken without approval of mining and reclamation plans and the issuance of permits by the appropriate Federal Agency. Statements that the surface of our lands will be destroyed without control are simply not accurate. Thank you very much for the opportunity to comment on The 1872 Mining Law, through the Oversight Hearings by your Sub-Committee. Very truly yours, KERR-MCGEE CORPORATION Baryth fiel B. N. Hill, Vice President Land BNH/mc1 |