"If enacted, this proposal would result in a blazing fire sale of federal lands to domestic and international corporate interests. This is the worst kind of sham reform of the Mining Law ever to be promoted in my tenure in Congress. It is actually a step backward from the horrendously outdated 133-year-old statute now in force," declared Rahall.

     He continued, "This provision would allow the sale of potentially mineral rich public lands for the mere cost of the surface estate, completely ignoring the value to the underlying mineral estate. Under these provisions anyone, including real estate developers and oil and gas companies, could purchase and develop natural areas that are currently important for recreation, wildlife, fisheries, or regional drinking water supplies under the guise of a mining law."

     The proposal does not protect National Forests and Wilderness Study Areas, Areas of Critical Environmental Concern, or other similar areas, from development. To purchase the land, the buyer must only claim the intention to facilitate "sustainable economic development" - - an undefined term.

     "Sustainable economic development could include condominium construction, ski resorts, gaming casinos, you name it, flying in the face of America’s commitment to protect these lands," asserted Rahall.

     Signed into law by President Ulysses S. Grant, the Mining Law of 1872 to this day governs the mining of valuable ‘hardrock’ minerals, such as gold and silver, on federal western public lands. The law allows private companies to patent - - purchase - - public lands containing valuable minerals for a mere $2.50 to $5.00 per acre, prices set in 1872, without paying a royalty - - production fee - - on the mining of these minerals to the taxpayer. Since 1872, more than $245 billion worth of minerals have been extracted from public lands at these bargain-basement prices.

     Since 1994, through Rahall’s efforts with strong bipartisan support, Congress has placed an annual moratorium on the patenting of mining claims on federal lands. To prohibit the continued giveaway of public lands while requiring industry to comply with some basic reclamation standards, Rahall, last month, introduced the "Federal Mineral Development and Land Protection Equity Act of 2005". Since 1987, when Rahall chaired the Energy and Minerals Subcommittee, he has worked to rewrite this antiquated law, introducing comprehensive reform bills in each successive Congress.

     "Instead of acting on my bipartisan legislation that would prohibit the giveaways of our public lands at bargain basement prices with no meaningful environmental safeguards, the budget reconciliation process is being used as a Trojan horse to sell off the public’s assets," stated Rahall.

     Rahall’s legislation would impose an 8% royalty on mineral production, raising $350 million over the next five years, and will continue to generate funds for the Treasury as long as resources are mined. The budget reconciliation proposal raises less than half that amount in a one-time sale of these assets.

     "As a long-time advocate of responsible reform of the Mining Law of 1872, after reflecting on these provisions, I find it hard to believe that they would even be supported by responsible elements in the hardrock mining industry. Further, they represent an assault on America’s natural resource heritage and to the American taxpayer. And given my history on this issue, I find them personally insulting as well," concluded Rahall.

     For the full text of Rahall's remarks inserted into the Congressional Record, click here.