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MiningWeek Online
September 17, 2004 Volume 10, Issue 37
This Week's Issue:
Senate Appropriations panel reports Interior Appropriations bill
The Senate Appropriations Committee this week reported out S. 2804, the “Department of the Interior and Related Agencies Appropriations Bill, Fiscal Year 2005.”
During the markup Chairman Ted Stevens (R-AK) said that it was his intention to get this and other bills to the floor as soon as possible so that their differences can be settled in conference with the House.
NMA has been active this year in ensuring the appropriations bill for several agencies in the Department of the Interior and offices at the Department of Energy reflect the needs of the mining industry and the economy. Below are highlights (by Department and agency) from the Senate’s version of the Interior Bill and information on actions taken during the markup.
DEPARTMENT OF THE INTERIOR (DOI)
Bureau of Land Management (BLM) The total amount approved: $855.7 million, an increase of $18.2 million above the administration’s requested level and $15.3 million above the House-approved level.
Consistent with NMA’s position, the Committee included both bill and report language which rejected the proposed increase in claims maintenance and location fees until the Departments of Interior and Agriculture establish a nationwide permit tracking system. Further, the departments, within one-year of enactment of the bill, are required to file a detailed report to Congressional authorizing committees detailing the causes of delays in the approval of mining plans of operations and recommending steps to reduce such delays. The report also states, “It is unreasonable to pass costs on to other entities while the Bureau’s processes continue to remain unresponsive to need and demand.”
The bill also retains the mining patent moratorium carried in previous years in both the House and Senate. In addition the Committee recommended $32.7 million for mining law administration, which is equal to the administration’s requested level.
U.S. Geological Survey (USGS) The total amount approved: $939.4 million, an increase of $19.7 million above the administration’s requested level and $5 million below the House-approved level.
The Committee rejected the administration’s proposed $6.4 million cut to the Mineral Resources program - the House also rejected this recommendation. This rejection was requested by NMA in its testimony to the Committee earlier in the year.
Office of Surface Mining Reclamation and Enforcement (OSMRE) The total amount approved: $109.9 million for regulation and technology, a $1 million increase above the administration’s requested level and the House-approved amount.
The committee directed the OSM to use the $1 million increase for a contract with the National Research Council of the National Academy of Sciences for a “study of coal to include, among other things, a review of coal reserves, an assessment of the categories of coal research currently being carried out in the United States, and a review of how technologies are being transferred to coal mine operators and other users.” The panel also directed the OSM to have the “study completed within 2 years, interim reports to the committee as appropriate.”
The Abandoned Mine Land (AML) Reclamation Fund received $190.8 million, a $53 million decrease from the administration’s requested level and $3.3 million below the House-approved level.
Regarding the reduction in funds for the AML Fund, the committee stated: “In the absence of legislation extending the collection of fees under the Surface Mining Control and Reclamation Act (SMCRA), the committee has not provided funds for the administration’s proposal to provide additional funds to pay down the state share balances in the AML fund of certified states.”
During the committee’s consideration of the bill, Ranking Member Robert Byrd (D-WV) offered an amendment that would extend the AML fee by one year - the authority to collect fees otherwise expires on Sept. 30. Interior Subcommittee Chairman Burns (R-MT) and Energy & Natural Resources Committee Chairman Domenici (R-NM) opposed the 1-year extension citing the authorizing committee’s efforts to deal with the issue and a six-month extension was suggested instead of one-year - in the end, the committee approved a nine-month extension by voice vote, which would extend the fee to June 30, 2005 (see related story, page 4).
DEPARTMENT OF ENERGY (DOE)
Fossil Energy (FE) The total amount approved: $542.5 million, a $130.2 million decrease below the administration’s requested level and $59.3 million below the House-approved level.
The committee rejected the administration’s proposed rescission of $237 million from the Clean Coal Technology program and instead deferred $257 million (an additional $20 million in the program revealed by DOE) without designating it for the FutureGen Initiative as contained in the House bill. As in the House-passed version of the bill, the FutureGen Initiative received $18 million.
The Clean Coal Power Initiative received $50 million as requested by the administration, but $55 million less than the House-approved level.
Fuels and Power Systems received $265.0 million, an $82.0 million increase from the administration’s requested level and $11.60 million below the House-approved level. Within this category, Central Systems programs received $79.5 million, $15 million above the administration’s requested level and $7 million below the House-approved level (included is $2 million for innovations to existing plants and elemental mercury emissions reduction from North Dakota lignite-fired power plants, $5 million for Integrated Gasification Combined Cycle, $3 million for Advanced Combustion Systems, and $5 million for the turbine program).
The committee urged the DOE to solicit proposals for “analytical research and development studies with broad applicability to both industrial and power generation sites.” In addition the committee expressed the need to address post-combustion CO2 capture technologies for pulverized coal units and expects the department to propose funding for these kinds of projects in its Fiscal Year 2006 budget request. The committee also believes that decisive action must be taken to pass the pending Energy Bill and the Jumpstart Our Business Strength [JOBS] - [these] “bills will provide opportunities to ensure America’s future energy needs are met in a timely and efficient manner.”
Office of Industrial Technologies (OIT) The Senate joined the House in rejecting the administration’s drastic cuts in the Mining Industry of the Future Program, by providing an increase of $2.1 million above the requested level of $1.7 million. The House approved a total of $4.0 million for this program. NMA will work to convince the Conference Committee to accept the House’s level of funding.
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IBLA decision addresses mining claim validity examinations
A recent decision by the Interior Board of Land Appeals (IBLA) addressed the question of whether the Bureau of Land Management (BLM) must examine the validity of mining claims on lands proposed to be conveyed to the owner of mining claims as part of a land exchange.
The IBLA held that a validity determination was not required prior to a decision to enter into the exchange. In reaching that conclusion, the board reviewed the rules and policies of BLM and said a determination of claim validity was not required as a matter of course prior to approval of a mining plan of operations.
The case is Center for Biological Diversity, et al., which involves a land exchange between BLM and ASARCO Inc. The public lands ASARCO sought in exchange for private lands included 764 lode mining and mill site claims owned by the company.
The Center for Biological Diversity, Western Land Exchange Project and the Sierra Club appealed the exchange decision. The groups contended that BLM’s environmental analysis under the National Environmental Policy Act (NEPA) and its public interest assessment under the Federal Land Policy and Management Act (FLPMA) improperly assumed that ASARCO possessed a right to develop its unpatented mining and mill site claims under the general mining laws, even if the land exchange was not consummated.
The Center argued that ASARCO had not demonstrated, nor had BLM determined, that the mining claims were valid under the general mining law. The Center argued that the lode claims did not contain a discovery of a valuable mineral deposit and, in the absence of a discovery, those claims could not be used for ancillary operations as contemplated in the environmental impact statement (EIS) analysis and decision.
In addition, they argued that the number of mill sites located were in excess of the number of lode claims and, therefore, improper under the 1997 Solicitor’s Mill Site Opinion. These points served as the foundation of the Center’s NEPA and FLPMA objections that BLM failed to consider a no-mining alternative or scenario because it improperly assumed that even in the absence of the exchange, ASARCO could still proceed with development of the claims without any determination that the claims on the lands to be conveyed were valid under the general mining law.
Among other things, the IBLA ruled:
- In considering the proposed exchange, BLM was properly cognizant that ASARCO has rights under the general mining law for mining claims it located on the public lands it sought under the exchange;
- Even absent the discovery of a valuable mineral deposit, ASARCO would have the statutory right to enter on public lands in search of minerals;
- Determination that a mining claim is invalid for lack of discovery can only be made after a contest hearing – a real estate appraisal which includes a mineral potential assessment prepared in connection with a proposed exchange is not a mining claim validity examination;
- Until the Interior Department undertakes a mining or mill site claim contest and renders a final determination of invalidity, it is well established that the claimant will be permitted to engage in mining or processing operations; and,
- ASARCO was not required to affirmatively demonstrate the validity of any or all of its claims; nor was BLM required to undertake a validity determination as part of its land exchange approval process.
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NIOSH spared in CDC reorganization by Senate Appropriations Committee
The Senate Appropriations Committee recommended this week that no changes be made to the Center for Disease Control’s (CDC) National Institute for Occupational Safety and Health (NIOSH) current operating procedures and proposed $6 million in additional funding for the NIOSH’s Mining Research Program in the FY 2005 budget. A pending reorganization of the CDC had threatened to weaken NIOSH’s program, which provides occupational safety and health research to mining and other industries.
“The Committee expects CDC to ensure that the ongoing CDC reorganization does not impede nor diminish NIOSH’s ability to meet its statutory responsibilities to protect the safety and health of America’s workers,” said the report. The Committee further directed the CDC to:
- make no changes to NIOSH’s current operating procedures and organizational structure; and
- ensure that no funds or personnel will be transferred from NIOSH to other components of CFC by means other than traditional reprogramming of funds.
“We are pleased that the Committee recognizes the critical role that NIOSH plays in conducting research to advance mine safety and health,” said NMA president Jack Gerard in response to the Committee’s report.
NMA strongly opposed cuts to NIOSH’s program, and in a letter sent to the Committee in June, signed by both industry and labor interests (see Mining Week 6/25/04), requested an additional $10 million in funding for NIOSH to ensure that the nation’s miners were not threatened by program cuts or inflation.
The Committee’s full report on the Occupational Safety and Health program can be found on the web at http://thomas.loc.gov/cgi-bin/cpquery/?&db_id=cp108&r_n=sr345.108&sel=TOC_278993&.
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MINExpo® preparations in high gear; online registration ends Sept. 20
As these photos show, MINExpo INTERNATIONAL® 2004 is only 10 days away, and preparations are in high gear. Here is some important information to know as the countdown nears:
Almost 25,000 people have already pre-registered for the show, and NMA expects attendance to be very strong. If you have not already registered, it is not too late – however, please be advised that online MINExpo registration closes on Monday, Sept. 20, at MIDNIGHT. After that time, all registrations must be on-site at the show in Las Vegas.
Full service registration begins on Friday, Sept. 24, at 1:00 p.m. at the Las Vegas Convention Center, and on Sunday, Sept. 26, at Caesars Palace, at 10:00 a.m.
If you need a hotel room, please call the Las Vegas Housing Bureau at 702-683-7813, or 1-888-892-5822.
Be sure to check the MINExpo website, www.minexpo.com, for updates and to see some of the equipment that is being assembled on site in preparation for the official show opening ceremony, Monday, Sept. 27, featuring Nevada Gov. Kenny Guinn.
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AML fee extension included in Senate bill; no specific action currently planned in House
As the Sept. 30 deadline for expiration of the Office of Surface Mining’s (OSM) authority to collect the coal Abandoned Mine Land (AML) fee moved closer, the Senate Appropriations Committee this week approved an amendment offered by ranking member Robert Byrd (D-WV) that would extend the agency’s authority for nine months.
The amendment was offered to S. 2804, the Department of the Interior and Related Agencies Appropriations Bill, Fiscal Year 2005. No such provision was included in the Interior Appropriations bill passed by the House on June 17.
As a result of the Appropriations Committee action, S. 2086, the Abandoned Mine Land Reclamation and Reform Act, introduced by Sen. Craig Thomas (R-WY) and scheduled for mark up on Sept. 15 in the Energy and Natural Resource Committee, was withdrawn from the calendar. Committee members have indicated they will continue to work to develop a compromise.
At present, there is no specific action planned on the coal AML issue in the House; however, 17 governors from coal producing states wrote both the House and Senate leadership asking that the AML program be extended for a year.
Meanwhile, House Resources Committee Chairman Richard Pombo (R-CA) sent a letter to Gov. Edward Rendell of Pennsylvania and 16 other coal state governors soliciting support for H.R. 4529. Although this measure provides for the exploration, development and production of oil and gas resources in the Arctic Coastal Plain of Alaska, the revenues generated by the leasing of the resources would be used to address issues surrounding the funding of the various coal miner benefit funds. The Surface Mining Control and Reclamation Act (SMCRA) amendments in H.R. 4529 would reduce the AML fee by 8 percent; extend the fee at the reduced rate until 2019; and pay certified states the unappropriated remainder of their 50 percent state share.
Meanwhile, OSM Director Jeff Jarrett on Thursday said his agency would publish a final rule to enable it to continue collecting fees to help defray the costs of coal miner health benefits, even if Congress allows the AML fee to expire Sept. 30. Jarrett said while “continuing to work for reauthorization of the AML reclamation fee,” the agency has a “responsibility to make sure we can continue to transfer funds to the United Mine Workers of America’s Combined Benefit Fund (CBF), even if Congress allows the reclamation fee to expire.” He added that if the fee was reauthorized before expiration, the OSM rule “will not be needed immediately.”
Jarrett added, “Because collections would no longer be used to reclaim abandoned mine lands and would only fund the CBF, the fees would be significantly lower than current fees.” If Congress fails to act, the 2005 fees would be 8.8 cents per ton for surface mined coal (compared with current 35 cents); 3.8 cents per ton for underground mined coal (compared with 15 cents); and 2.5 cents per ton for lignite (compared with 10 cents).
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Mine the Vote helps mining be part of the democratic process
With only 46 days remaining until Election Day, the National Mining Association is doing everything it can to help the mining industry be a part of the democratic process through Mine the Vote.
“NMA needs your help to make this program a success; NMA needs you to communicate with your employees; NMA needs you to Mine the Vote,” NMA’s Director of Grassroots and Constituent Relations Marc Ross emphasized this week.
Mine the Vote is a simple grassroots program for NMA members and industry stakeholders (businesses, trade associations, employees, their families, retirees, suppliers, vendors and investors) to use and ensure that mining interests are fully engaged in this year’s election. Why? Because mining jobs and the industry’s economic future are at stake and most importantly, every vote counts!
The Mine the Vote (www.minethevote.org) program allows users to register to vote, apply for absentee ballots, determine early voting rules, find polling locations, research candidates at all levels of government, read the latest news from the campaign trail and learn more about the public policy issues important to America’s mining industry.
To make it easy for you to participate and take advantage of this program, NMA has created a Mine the Vote promotional poster and bumper sticker, developed sample communications and produced a list of key election dates.
NMA can also work with you to generate customized and state specific collateral materials to promote the program and the importance of being registered to vote. Posters, payroll stuffers, direct mail pieces, faxes, phone scripts, candidate issue guides and emails, anything that will help get the message out to the mining industry.
It is not too late – you can still make an impact.
With the record close elections of the past few years and with the mining industry concentrated in many of the battleground states - every vote counts!
Please contact Marc Ross – NMA Director of Grassroots & Constituent Relations – at (202) 463-2264 or mross@nma.org to receive the materials you need to be a part of this critical grassroots effort.
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FCAP: America’s air quality has ‘dramatically improved’
America’s air quality has “dramatically improved” since passage of the Clean Air Act in1970 and continues to get better despite robust economic growth, the Foundation for Clean Air Progress (FCAP) said this week.
Yet, nearly three-quarters of the American public believes air quality has either deteriorated or stayed the same, according to an August public opinion poll and a new study of government data, FCAP said.
“There’s a clear disconnect between the nation’s significant emission reduction progress and public perception,” said FCAP President William D. Fay. The organization commissioned the study and survey from Meszler Engineering Services and Wirthlin Worldwide, respectively.
The group said the Environmental Protection Agency’s (EPA) own monitoring data show Americans are breathing “far healthier air than was the case in 1970.” FCAP said the agency’s most recent data, for 2001-02, show:
- The health-based standards for nitrogen dioxide and sulfur dioxide were attained everywhere in the U.S.
- The standards for lead and carbon monoxide were attained in 3,129 of the nation’s 3,132 counties;
- 70 percent of the nation’s population now breathes air that meets the original National Ambient Air Quality Standards (NAAQS) for ozone; and,
- Exposure to particulates has been “significantly reduced.”
In the Meszler Engineering report, Ambient Air Quality Trends, EPA data collected at nearly 10,000 monitors in 2001-02 show “air quality in the U.S. is substantially better today than at any time since data collection began in earnest in the 1970s.”
The Wirthlin poll, however, shows that seven out of 10 Americans believe overall air quality has either diminished or stayed the same. “With so many Americans unaware of the dramatic air quality improvements, what we’ve got is a clean little secret,” Fay said.
Two important points, Fay said, are while air quality has improved since 1970, major economic indicators have risen as well. “The nation is producing more, driving more, consuming more energy and generally riding a three-decade wave of economic expansion,” he said. “While logic might suggest that robust growth should generate more air pollution, the opposite is true. We have both healthier air and a healthy economy.”
In addition, the nation consumes 56 percent more electricity than it did in 1985, yet today’s nitrogen dioxide and sulfur dioxide emissions are approximately half of what they would have been had the utility industry not taken action to reduce pollution. “In short, industry has lowered, and will continue to lower, emissions in spite of continued growth in demand.”
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Major capacity expansion projects at Cliffs get board approval
Cleveland-Cliffs Inc. said its board has approved capital expenditures for major capacity expansion projects planned at its United Taconite Mine in Eveleth, MN, and Northshore Mine in Silver Bay, MN.
The company plans to proceed with the planned restart of the idled pellet furnace at United Taconite. The furnace would be brought on line in the fourth quarter of 2004 and would have an annual production capacity of approximately 1 million tons of pellets. The cost of the expansion project is estimated at $23 million.
The company will also restart an idled furnace at the Northshore facility. Restart of the furnace is planned for mid-2005, and it would have an annual production capacity of approximately 800,000 tons of pellets. Total capital cost for this project is about $29 million.
Cleveland-Cliffs is the largest producer of iron ore pellets in North America and sells the majority of its product to integrated steel companies in the United States and Canada
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Newsbits
President Bush will nominate Tom Skinner as assistant administrator of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance (OECA). He currently serves as acting assistant administrator for OECA and administrator of EPA’s Region V. In addition, EPA said Jon Scholl has been named counselor to the administrator for agricultural policy. He joins the agency after a 25-year career with the Illinois Farm Bureau . . . . The Council of Energy Resource Tribes (CERT) is presenting a one-day conference in Washington, D.C., on Sept. 23 entitled, “Indian Energy Solutions 2004: A National Policy Roundtable – Working Together for America’s Energy Security.” More information on the conference, which will take place at the Wyndham Washington Hotel, is available from www.CERTRedEarth.com, or 303-282-7576 . . . . Jerry Vaninetti has resigned from dual positions as president of Great Northern Power and its affiliate, Great Northern Properties, the nation’s largest private coal landowner, following successful completion of the pre-development of Great Northern Power’s two 500-MW coal-wind projects in the Upper Great Plains . . . . The U.S. Forest Service has extended the comment deadline for its proposed rule to replace the Jan. 12, 2001 Roadless Area Conservation Rule with a petitioning process. The comments are now due on Nov. 15, 2004 . . . . Peabody Energy has named Ian S. Craig as managing director of Peabody Energy Australia Coal Pty Ltd. He will be responsible for the Burton, North Goonyella, Eaglefield and Wilkie Creek coal mines and related facilities in Queensland, Australia . . . . Newmont Mining Corp. and Compania de Minas Buenaventura announced that Minera Yanacocha has begun to scale back mining operations at its mine north of Cajamarca, Peru. The companies said the decision was made after careful consideration of safety and operational concerns resulting from a blockade of the access road to the mine. “Gold production will not be affected in the near term,” they said.
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