Craig Submits Mining Reform Bill Babbitt Quickly Dismisses Proposal As Too Costly To Administer

Idaho Republican Sen. Larry Craig brought back mining reform Tuesday, but critics called his latest attempt a ghost of what’s needed.

Craig had promised to reintroduce his mining reform bill this year after reform efforts died a rancorous death last year.

Craig’s bill would place a 3 percent royalty on the value of metals, less the cost of mining them. Mining leaders say the royalty is a step forward for an industry that is having a hard time surviving tough regulations in this country.

Local mining companies supported Craig’s previous bill, which included a 2 percent royalty, and some said Tuesday they’ll support his new version.

“This will generate money for federal coffers and still allow us to operate here and provide high-paying jobs for people,” said Art Brown, chief executive of Coeur d’Alenebased Hecla Mining Co. “I think that people have got to realize that there has been compromise on both sides; the environmentalists have given in some and we have given in on some issues.”

But critics such as Beverly Reece of the Mineral Policy Center in Washington, D.C., said the royalty is a mere pittance.

“The industry doesn’t like the 1872 Mining Law so they want to make it the 1772 Mining Law,” Reece said. “It’s incredibly weak.”

Craig and other industry leaders say the bill addresses the major reasons people want mining reform. The bill provides for the following:

Companies would have to pay fair market value for the surface of any mining claim before digging.

But Reece said the fair market value should extend beyond just “the sagebrush on top of the mine” to the underground value of the land.

New fees would be created for the patent system which allows mining companies to claim land exclusively for mining.

An 18-month phase-in would be allowed for the new patent system.

But that means mining companies will patent all their claims before the law is enforced, Reece said.

“When mining companies patent land, it becomes private, so they don’t have to pay the royalty,” she said. “By the time the royalty kicks in, there won’t be any mining on public land to collect on.”

The Clinton administration was quick to dismiss Craig’s bill. Interior Secretary Bruce Babbitt said it would cost more to administer than the government would receive in royalties.

Craig said that both sides may object to some of the provisions, adding that he’s open to amendments as the bill moves through the Senate and House.

Sen. Dale Bumpers, D-Ark., introduced his own mining reform bill Monday with stricter controls and an 8 percent gross royalty. The two bills are likely to collide in a Senate committee.

Craig and mining leaders like Brown think the GOP-controlled Congress at least will frame the debate on mining reform differently than Democrat-controlled sessions before it. Bitter debate over stringent new environmental regulations in last year’s conference committee on mining reform sank the effort.

In Spokane, the Northwest Mining Association will examine Craig’s bill, said new executive director Tim Olson. The association, which has supported mining reform in the past, will make a recommendation on Craig’s bill soon.

“Personally, I’ve been impressed with how thorough the bill appears to be,” Olson said. “It addresses all the areas that people have really been concerned with.”

Craig said Tuesday that he wants the bill passed through Congress and on President Clinton’s desk before the year ends.

Reece at the Mineral Policy Center said that GOP dominance in Congress doesn’t mean the bill will skate through the Senate. “This is just the beginning.”

The following fields overflowed: BYLINE = Eric Torbenson Staff writer The Associated Press contributed to this report.