History, Early Government & Environment Flashcards
Explain why, despite a long history of operating within their own ‘code,’ minors pushed to formalize their mining rights
Land Dispossession Acts – minors need security of their asset
miners can secure legal recognition of their holdings,
Mining becomes more expensive – need security of their asset
Placer mining is waning; Lode mining taking over
formalizing their rights, miners can secure the investments they need to make this switch.
As the Fed Govt considered how to formalize miner rights, identify who Stewart tried to defend and clarify how his general approach protected their interests
Stewart aimed to defend the rights of small-scale miners, often referred to as “prospectors,” who operated in informal settings.
Wanted open access land where minors could obtain a patent.
This patent was affordable so once one gets enough money, they have the ability to buy land and start clamming lands
Clarify the types of resources and land that are covered and not covered by the Hardrock Mining Law of 1872
Materials excluded from the Law: sand, coal, oil, sulfur
Lands excluded from the law: recreational land (national parks), military lands
Included materials: copper, gold, silver, rare earths etc.
Clarify the two different ways in which federal government benefits economically from coal / oil deposits
Royalties: are payments made to the federal government based on a percentage of the profits generated from the extraction of natural resources, such as coal and oil.
continuous stream of revenue to the federal government,
Leasing: companies paying the federal government for the right to access and extract resources
generates immediate revenue for the federal government
Clarify the meaning of the marketability test
goes along with the Prudent Person test (where in order to be able to claim a discovery you have to say you think that you can be successful in the future there at that mining location) in which you have to ve able to sell you mined resources at the market value and be profitable (make a profit)
Clarify the meaning and implication of a “vested right”
- At the unintended discovery stage the right to the land that the miners have is a vested right
A vested right is a right that is not easily taken away, and if it is, it can’t be taken away without compensation.
Miners can transfer their rights. This characteristic reinforces the stability and security of vested rights, as they can be maintained and passed along over time.
Provide examples of how the law is subject to abuse or may seem unfair 1) before discovery
- Before Discovery
- Faking Discovery: Individuals can easily claim to have made a discovery without genuine evidence. The “Prudent Person’s Test” is subjective, allowing miners to assert they believe the area may contain valuable minerals based solely on superficial evidence.
- Marketability Test Manipulation: While the BLM or USFS is responsible for verifying claims, miners can claim that inspections were conducted in the wrong areas.
Provide examples of how the law is subject to abuse or may seem unfair 2) at discover
At Discovery
Miners can fulfill the annual work requirement with minimal investment, such as purchasing inexpensive tools or hosting social events.
- Re-staking Claims: If a claim is deemed unmarketable, miners can simply move a short distance and start the process anew.
Provide examples of how the law is subject to abuse or may seem unfair at full patents
-Cost of patent= (basically nothing) → corporate welfare because they aren’t paying for the land
-> companies can secure valuable land for little financial investment.
-Rights of use/sale after patent
You can sell the land, you can use the land however you want
Explain why most mining companies do not pursue full patents
Don’t go full patent:
To avoid zoning and state laws (because once you do own the land/are at full patent you have to follow these)
State taxes (which you would have to pay)
When you don’t have a full patent you are not be beholden to state taxes, state regulations
So if you do go full patent you cause yourself more trouble (if you intend to mine)
Characterize the debate over whether the Mining Law should be reformed to force companies to pay more – providing evidence to support both sides of the debate
Should Not be reformed
imposing royalties would significantly cut into profit margins for mining companies. decreased investment in mining projects.
Reduced profitability could result in job losses.
Imposing additional financial burdens through royalties may deter investment in exploration and development (this business is risky and already expensive)
Should be reformed:
worldwide mining companies to pay royalties for extracting minerals. should pay for environmental rehabilitation,
Revenue from royalties could be allocated to environmental protection
Clarify how foreign corporations get access to US minerals with no significant compensation to the US govt
- General Mining Law of 1872
Eligibility: The law allows U.S. citizens and those who have declared their intent to become citizens to stake mining claims and extract minerals on public lands. - 1989 U.S. Supreme Court Ruling
established that corporations, are considered “persons”
Foreign - U.S.-based subsidiaries, which can then stake claims and acquire patents as if they were U.S. citizens. This allows foreign entities to access U.S. minerals without direct involvement.
profits back to their home countries, meaning that any economic benefits (like profits and jobs) may not stay in the U.S. can provide less overall benefit to the U.S. economy compared to domestic companies that reinvest profits locally.
if go bankrupt and lacks the financial means, the U.S. government may need to intervene, potentially resulting in a financial burden on taxpayers. (easy to abandon and leave problem for U.S)
Characterize the debate over whether the General Mining Law should be reformed to force foreign companies to pay more – providing evidence to support both sides of the debate
Inviting Foreign Companies
foreign companies bring investment into the U.S. mining sector.
presence of foreign companies can create jobs
have access to advanced mining technologies /practices- can benefit the U.S. and lead better resource management.
contribute to local economies through taxes and fees,
Arguments for Kicking Them Out
foreign companies can easily leave if they face bankruptcy , leaving behind environmental degradation and other liabilities.
not have the same interest in the local community as domestic companies
foreign companies operate without paying royalties
Identify the three main supply security eras and their general timeframes. For each, characterize their overall views/perspectives
Supply security → WWII-1980’s: U.S didn’t have much domestic mining. We depend on other countries. Concerns about national security and the availability of resources. Russia or other developing worlds can cut off mineral supply.
Post supply-1990’s-2010’s
We don’t need as many resources as before. For the supply that we need, the global economy will provide
New supply-2010’s-present
Global economic restructuring
domestic manufacturing and a re-evaluation of supply chains
providing the raw materials necessary for manufacturing, serve as inputs for manufacturing processes.
Identify/compare policies associated with the Era of Supply Security and the Era of Post-Supply Security
- Supply security
- Policy 1: stockpile oil/minerals. We can pull them out of stock during emergency
Policy 2: economic incentives/ subsidies
Do not reform hardrock mining law- its cheap and easy - Reforming would minimize minerals. Need the law to remain free and secure.
US Bureau of Mines- government carried risks for private producers, which helped facilitate exploration and extraction.
* Policy 3: weak environmental/ health & safety
easier extraction of minerals. Prioritized resource availability over environmental concerns.
Overall: subsidies and incentives to encourage domestic mineral production.
Post supply-
Policy 1: stop stockpiling
Policy 2: reduce support for domestic production
Talk about reforming hard rock mining law
Reduce subsidies
encouraging reliance on international markets.
Policy 3: increase environmental/ labor regulation
greater emphasis environmental protection and labor standards, reflecting growing public awareness and activism regarding environmental issues.
hold mining companies accountable
