...in the United States of America that is...

 (Today)

Dear Jim,

Thanks very much for your message regarding HR 2262. Chairman Rahall’s Mining Law “reform” bill is a terrible piece of legislation. I’ve known Rahall for about 20 years. This bill, when you cut to the chase, is “payback” to some in the industry who contributed heavily to an opposition candidate in West Virginia back in the ‘90’s. It is meant not to reform, but to punish one of America’s most vital and necessary basic industries.

The bill is a “non-starter” in the Senate, and Rahall (and Pelosi) were told so by Sen. Reid (son of a hardrock miner from Searchlight, NV), Sen. Domenici and other more responsible people in the Senate. I’m in DC right now working on this very thing. I have visits in the offices of six Senators in the next two days. The mining law works well, but the environmentalists don’t (and won’t) understand this. If a reasonable reform doesn’t happen within the next 12 months, a Democrat White House (which is probable) will likely pass something similar to or even worse than HR 2262.

Best regards,
CIGA George

Dear CIGA George,

Yes, this is a non starter as it will die in the Senate or be vetoed.

The problem is that the subject has been aired.

Assuming the Republicans are trampled in the next election and liberals elected, a fallback might occur with a chance of passing the bill somewhat modified.

This has no negative impact on non-US companies in properties outside of the US. It might even, if foolishly passed in 2008-2009, positively impact foreign entities. You will have to admit there is no greater political and environmental risk to the extractive industry than in the USA.

Regards,
Jim