Should We Revise the 1872 Mining Law? Exploiting oil in ANWR Oil and the War in Chechnya Nauru: Mining a tropical paradise New Madrid earthquake
What do you think? Should We Revise the 1872 Mining Law? In 1872, the U.S. Congress passed the General Mining Law intended to encourage
prospectors to open up the public domain and promote commerce. This law, which
has been in effect more than a century, allows miners to stake an exclusive
claim anywhere on public lands and to take-for free-any minerals they find.
Claim holders can "patent" (buy) the land for $2.50 to $5 per acre (0.4 hectares)
depending on the type of claim. Once the patent fee is paid, the owners can
do anything they want with the land, just like any other private property. Although
$2.50 per acre may have been a fair market value in 1872, many people regard
it as ridiculously low today, amounting to a scandalous give-away of public
property. In Nevada, for example, a mining company is buying federal land for $9000
that contains an estimated $20 billion worth of precious metals. Similarly,
Colorado investors bought about 7000 ha (17,000 acres) of rich oil-shale land
in 1986 for $42,000 and sold it a month later for $37 million. You don't actually
have to find any minerals to patent a claim. A Colorado company paid a total
of $400 for 65 ha (160 acres) it claimed would be a gold mine. Ten years later,
no mining has been done, but the property-which just happens to border the Keystone
Ski Area-is being subdivided for condos and vacation homes. According to the Bureau of Land Management (BLM), some $4 billion in minerals
are mined each year on U.S. public lands. Under the 1872 law, mining companies
don't pay a penny for the ores they take. Furthermore, they can deduct a depletion
allowance from taxes on mineral profits. Senator Dale Bumpers of Arkansas, who
calls the 1872 mining law "a license to steal," estimates that the government
could derive $320 million per year by charging an 8 percent royalty on all minerals
and probably could save an equal amount by requiring a bond to be posted to
clean up after mining is finished. On the other hand, mining companies argue they would be forced to close
down if they had to pay royalties or post bonds. Many people would lose jobs
and the economies of western mining towns would collapse if mining becomes uneconomic.
We provide subsidies and economic incentives to many industries to stimulate
economic growth. Why not mining for metals essential for our industrial economy?
Mining is a risky and expensive business. Without subsidies, mines would close
down and we would be completely dependent on unstable foreign supplies. Mining critics respond that other resource-based industries have been forced
to pay royalties on materials they extract from public lands. Coal, oil, and
gas companies pay 12.5 percent royalties on fossil fuels obtained from public
lands. Timber companies-although they don't pay the full costs of the trees
they take-have to bid on logging sales and clean up when they are finished.
Even gravel companies pay for digging up the public domain. Ironically, we charge
for digging up gravel, but give gold away free. Over the past decade, numerous mining bills have been introduced in Congress.
Those supported by environmental groups, generally would require companies mining
on federal lands to pay a higher royalty on their production. They also would
eliminate the patenting process, impose stricter reclamation requirements, and
give federal managers authority to deny inappropriate permits. In contrast,
bills offered by Western legislators, and enthusiastically backed by mining
supporters, tend to leave most provisions of the 1872 bill in place. They would
charge a 2-percent royalty, but only after exploration, production, and other
costs were deducted. Permit processes would consider local economic needs before
environmental issues in this version. What do you think we should do about this
mining law? How could we separate legitimate public-interest land use from private
speculation and profiteering? Are current subsidies necessary and justifiable
or are they just a form of corporate welfare? Historic Decision to Allow Drilling
in Remote Alaska Oil Reserve July, 1998
On August 6 Interior Secretary Bruce Babbit announced the controversial
decision to authorize oil and gas drilling leases in 4 million acres of
Alaska's arctic coast. This area is part of the 23 million-acre National
Petroleum Reserve in Alaska (NPR-A), identified in 1923 as a reserve for
possible development in times of national need. At the same time, Babbit
denied leases in the wetland-rich Teshekpuk Lake area of the NPR-A, arguing
that the “biological wonderland” should be protected.
Ak_Reds (23.0K)Ak_Reds The NPR-A occupies a region of arctic coastline adjacent to Prudhoe Bay,
the principal source of the state's oil wealth for over twenty years.
The coastal tundra, with thousands of wetlands and small lakes, provides
breeding grounds for 5 million migratory birds, representing 90 species,
including swans, snow geese, arctic loons, and many arctic coastal ducks.
The inland region of the NPR-A is home to Alaska's largest caribou herd,
the 450,000-member Western Arctic herd, as well as grizzly bears and wolves.
Environmentalists have advocated legal protection for the entire reserve,
but some have been willing to consider oil development in a portion of
the reserve in exchange for protecting the rest of the region. Development
in the NPR-A is hoped to ease pressure to open up the Arctic National
Wildlife Refuge to oil development, a proposal that was recently blocked
by President Clinton.
Caribou (40.0K)Caribou
Arctic caribou herds are among the wildlife that could be threatened
by drilling in the coastal oil reserve. Interior Secretary Babbit
did deny drilling leases on the most fragile coastal wetlands. |
The compromise decision followed an 18-month environmental review and
comment period, during which Alaska's governor and congressional delegation
joined oil companies in urging the NPR-A's opening. The state is eager
to see oil development in the region because the Alaskan economy depends
heavily on oil revenue, and wells in the neighboring Prudhoe Bay area
are beginning to run dry after two decades of pumping.
Wetland Area Off-limits
Environmental groups, including the Northern Alaska Environmental Center
in Fairbanks and the Wilderness Society, decry any leasing, especially
now, when oil prices are at all-time lows, supplies are high, and there
is no current national need for further oil. In fact oil companies have
recently begun exporting Prudhoe Bay oil to Asia--a step that was strictly
denied under the region's initial development rules, which stressed the
need to preserve domestic energy security.
At the same time, denying leases in the Teshekpuk Lake area is an important
protective measure. Not only are wetlands and lakes irreplaceable breeding
grounds, they are also especially susceptible to pollution related to
oil development, including leaks in wastewater and chemical storage, in
oil pumping, and in pipeline spills and leaks. The oil industry, on the
other hand, was disappointed by the August decision to deny leases in
the coastal wetland area. The coastal plain is believed the most likely
to yield significant amounts of oil.
Exploratory drilling could begin this winter.
To read more, see Environmental Science, A Global Concern, Cunningham and Saigo, 5th ed.
US oil supplies and imports: pages 470-71
Proposals to drill in ANWR (the Arctic National Wildlife Refuge): pages
472-73
Ocean oil pollution: pages 449-50
Environmental Science, Enger and Smith, 6th ed.
Oil resources and reserves: page 145
The Arctic National Wildlife Refuge: page 166
For further information, see these related web sites: Environmental Impact
Statement information, Bureau of LandManagement Black Gold from the Caspian Twice in four years, Russian troops pounded the rebellious province of
Chechnya with bombs, rockets, and artillery in a war they can ill afford and
probably never win conclusively. Why such a ferocious assault on a tiny, impoverished
state at the fringes of their former empire? The answer is that Chechnya is
the gateway, for Russia, to what may be one the world's richest reserves of
oil and natural gas around-and under-the Caspian Sea. It has long been known that Central Asia is rich in oil. Marco Polo wrote
in the fourteenth century of "fountains from which oil springs in great abundance."
An oil boom a century ago turned Baku, the capital of Azerbaijan, into a city
of instant millionaires. But the Soviet Union never put much effort into developing
Caspian oil, preferring to emphasize less politically challenging wells in Siberia.
By the 1980s, a crumbling network of leaking pipelines, rusty drilling rigs,
decaying cities, and patches of oil-soaked soil around the margins of the Caspian
showed the effects of sloppy management and neglect. When the Soviet Union broke
apart in 1991, a mad rush began as Western energy companies fought to be the
first to exploit what may be the last really big, relatively accessible oil
field in the world. Oil deposits around the Caspian Sea are thought to hold up to 200 billion
barrels, perhaps 25 percent of all the world's oil. If true, this resource would
be worth about $4 trillion at today's prices, or about 30 times as much as Alaska's
entire North Slope deposit. In addition, countries neighboring the Caspian are
thought to have enormous reserves of natural gas. Turkmenistan alone is thought
to sit on 9 trillion m3 of gas, making it the world's fourth-largest holder
of this valuable resource. In total, the Central Asian Republics may control
a quarter of the world's natural gas supply. The biggest difficulty is how to get these resources to market from their
landlocked sources. It doesn't help that the area has some of the worst weather-temperatures
ranging from -40°C to +50°C (-40°F to +122°F)-and most bellicose and unstable
political climates in the world. Regional players include Russia, Chechnya,
Dagestan, Abkhazia, Ingushetia, Ossetia, Kurdistan, Kazakhstan, Turkmenistan,
Uzbekistan, Azerbaijan, Armenia, Georgia, Turkey, and Iran. There are more than
60 indigenous languages, and at least as many ethnic feuds in the region. Together
in the 1990s, these groups had six major wars, two presidential assissination
attempts, two coups, and countless guerrilla and bandit attacks. The shortest-and probably cheapest-route for an oil or gas pipeline from
the Caspian is across Iran to the Persian Gulf. The United States adamantly
opposed that option, however, both to thwart Iran, and because of the risk of
having additional oil passing through the vulnerable Persian Gulf. Russia has
campaigned for a route following an existing pipeline northward through Chechnya-explaining
why control of this area is so important-and then west to a Russian port on
the Black Sea. This would require tankers to pass through the congested straits
of Bosporus and the Dardanelles, and would make us dependent on Russia to keep
the oil flowing. In 1999, a contract was signed to build a 2000 km (1250 mi)
pipeline along the U.S.-preferred route from Baku, across Georgia, and then
south across Turkey to the Mediterranean Sea. An extension nearly as long would
cross under the Caspian and then run north to the Tengiz oil field in Kazakhstan.
Costing at least $4 billion (US), the pipeline will take five years to build,
and will carry about a million barrels of oil per day (42 million gal or about
6 percent of U.S. consumption) when finished. Protecting this sprawling network of vulnerable pipelines in a rugged mountainous
region of ancient but fierce ethnic, religious, and political hostilities is
a daunting prospect. Does this story suggest to you that our dependence on oil
creates odd bedfellows and difficult geopolitical problems? How far will we
go to ensure our access to energy resources? In this chapter, we will focus
on fossil fuels and nuclear power, which together supply about 97 percent of
the world's commercial energy. Chapter 22 examines some energy conservation
options as well as alternative, renewable energy sources. Image14 (28.0K)Image14 FIGURE 21.1 A U.S.-backed oil pipeline is proposed from Azerbaijan through
Georgia, and then southwest across Turkey to the Mediterranean. Russia prefers
a route across Chechnya to Novorossisk on the Black Sea. Mining A Tropical Paradise The tiny island-nation of Nauru (pronounced NAH-roo) in the western Pacific
is the smallest and most remote republic in the world. It also is a case study
in humanity's ability to plunder its environment. Located on the equator some
500 km west of its nearest neighbor in the Marshall Islands, Nauru has been
inhabited by Polynesian people for thousands of years. When first visited by
European explorers in the eighteenth century, the island was a lush tropical
paradise of swaying coconut palms and white coral beaches. Sailors called it
Pleasant Island, but today the name is a bitter joke. Compared to its former condition, Nauru is probably the most environmentally
devastated nation on earth. So much land has been devoured by strip-mining that
residents now face the prospect of having to abandon the whole island and move
elsewhere. What the miners sought was guano, a thick phosphate-rich layer of
bird droppings prized by industrialized countries as fertilizer. Billions of
dollars worth of this treasure have been exported, first by colonial powers
and then, since independence in 1968, by the Nauruans themselves. After a century of mining, Nauru's 7500 residents are among the richest
people in the world, but their environment has been almost totally wrecked.
Eighty percent of the 21 sq km (8 sq mi) island has been stripped, leaving a
bleak, barren moonscape of jagged coral pinnacles, some as tall as 25 meters.
With all soil washed away, almost nothing lives in this wasteland. Traveling
across it is impossible. To make things even worse, removing the vegetation
has changed the climate. Heat waves rising from the sun-baked rock drive away
rain clouds and the island now is plagued by constant drought. Not only the island is ravaged. Nauruans may be among the world's most
affluent people, but they are also among the most unhealthy, plagued by cardiovascular
disease, diabetes, and obesity brought about by a lifestyle of idleness and
imported junk food. Few islanders live past the age of 60. Since most mining
is done by imported workers, Nauruans generally lack job skills to apply elsewhere.
This case study is a sad example of how easy it is for modern technology and
lack of foresight to degrade both a society and its environment. The guano deposits are expected to last only a few more years. After that,
residents will be left with only a thin sliver of habitable coastline. Some
efforts have been made to import new soil and to restore vegetation to the desolate
interior, but attempts have been unsuccessful. It may be too late to reverse
the damage. The people may be able to use some of their accumulated trust fund
to buy another island, but will they find one as comfortable and beautiful as
what they once had? One village leader says wistfully, "I wish Nauru could be
like it was before. I remember it was so beautiful and green everywhere. We
could eat coconuts and breadfruit. It makes me cry when I see what has been
done. I wish we'd never discovered the phosphate." Could Nauru's example be a warning for all of us? Humans have a long history
of depleting resources and then moving on. Could we find ourselves in a similar
situation someday, having exhausted our natural resources but then having an
uninhabitable world? Ethical Considerations If the Nauruans appeal for help in finding another place to live, would
we be morally obligated to assist them? Do countries that bought fertilizer
from Nauru bear a special responsibility for what has happened? If we see other
examples of environmental destruction occurring elsewhere, would we be ethically
justified to try to intervene and stop it? New Madrid Earthquake In 1994, a strong earthquake (magnitude 6.6 on the Richter scale) jolted the
city of Northridge in the San Fernando Valley just north of Los Angeles and
reminded us of the dangers of geological forces. Fifty-five people died, 75,000
were left homeless, and more than 3 million people lost power, light, and heat
as buildings crumbled, electric power lines ruptured, and gas lines exploded.
Traffic was hopelessly snarled for months afterward because dozens of bridges
collapsed and highways snapped like twigs. Repairs are estimated to cost $15
billion to $20 billion. Devastating as this earthquake was, it was not by any means the largest or
most catastrophic that might occur. Geologists warn that a really "big
one" (greater than 8.0 on the Richter scale) is likely along the sound
end of the San Andreas Fault east of Los Angeles. Even more ominous is the likelihood
that the Elysian Park fault system which passes directly beneath downtown Los
Angeles, could unleash a tremor with ten times the destructive power and hundreds
of times as much loss of life and property damage as the Northridge quake. Surprisingly, the West Coast is not the only place in the United States where
a geological cataclysm might occur. People who think that earthquakes are strictly
a Californian phenomenon might be amazed to learn that the most powerful earthquake
in recorded American history occurred in the middle of the country near New
Madrid (pronounced MAD-rid), Missouri. Between December 16, 1811, and February
7, 1812, about 2,000 tremors shook southeastern Missouri and adjacent parts
of Arkansas, Illinois, and Tennessee. The largest of these earthquakes is thought
to have had a magnitude of 8.8 on the Richter scale making it one of the most
massive ever recorded. Witnesses reported shocks so violent that trees two meters thick were snapped
like matchsticks. More than 60,000 ha (150,000 acres) of forest were flattened.
Fissures several meters wide and many kilometers long split the earth. Geysers
of dry sand or muddy water spouted into the air. A trough 240 km (150 mi) long
64 km (40 mi) wide, and up to 10 meters (30 ft) deep formed along the fault
line. The town of New Madrid sank about four meters (12 ft). The Mississippi
River reversed its course and flowed north rather than south past New Madrid
for several hours. Many people feared that it was the end of the world. Image 15 (31.0K)Image 15 One of the most bizarre effects of the tremors was soil liquefaction. Soil
with high water content was converted instantly to liquid mud. Buildings tipped
over, hills slid into the valleys, and animals sank as if caught in quick-sand.
Land surrounding a hamlet called Little Prairie suddenly became a soupy swamp.
Residents had to wade for miles through hip-deep mud to reach solid ground.
The swamp wasn't drained for nearly a century. Some villages were flattened by the earthquake; others were flooded when the
river filled in subsided areas. The tremors rang bells in Washington, D.C.,
and shook residents out of bed in Cincinnati. Since the country was sparsely
populated in 1812, however, few people were killed. The situation is much different
now, of course. With a much larger population living in the area, the damage
from an earthquake of that magnitude would be calamitous. Much of Memphis, Tennessee,
only about 100 mi from New Madrid is built on landfill similar to that in the
Mission District of San Francisco where so much damage occurred in 1994. St.
Louis had only 2,000 residents in 1812; nearly half million live there now.
Scores of smaller cities and towns lie along the fault line and transcontinental
highways and pipelines cross the area. Few residents have been aware of earthquake
dangers or how to protect themselves. Midwestern buildings generally are not
designed to survive tremors. Anxiety about earthquakes in the Midwest was aroused in 1990 when a climatologist
predicted a 50-50 chance of an earthquake 7.0 or higher on or around December
3, in or near New Madrid. Many people gathered emergency supplies and waited
nervously for the predicted date. Although there were no large earthquakes along
the New Madrid fault in 1990, thousands of small quakes rock the area each year.
Most are too faint to be noticed by citizens, but the probability of a major
tremor there remains high. While the general time and place of some earthquakes have been predicted with
remarkable success, mystery and uncertainty still abound concerning when and
where "the next big one" will occur. Will it be in California? Will
it be in the Midwest? Or will it be somewhere entirely unsuspected? Meanwhile,
residents of New Madrid are planning emergency exit routes and stocking up on
camping gear and survival supplies. How about you? What would you do if the
ground around you began to shake? |