The U.S. Environmental Protection Agency (EPA) is developing a rule to guarantee that mining companies must pay the bill for environmental cleanup, even if they file for bankruptcy.
The EPA announcement follows a federal court ruling made in February requiring the agency to close loopholes that allow companies to pass cleanup expenses along to taxpayers.
EPA said it decided to develop financial responsibility requirements
for the hardrock mining industry before it does so for other types of
facilities. The decision was based upon the size of mining operations; and the
extent of environmental contamination, including the number of sites
identified by EPA as needing cleanup.
Hardrock mining facilities include those that extract metals like
copper, gold, iron, lead and magnesium, as well as non-metallic,
non-fuel minerals such as asbestos, gypsum, phosphate rock, and sulfur.
Coal mining facilities are not considered hardrock mining facilities and are not included in EPA’s priority notice.
New rules will be developed under section 108(b) of the Comprehensive Environmental Response, Compensation and Liability Act, commonly called “Superfund.” EPA plans to propose the rule by spring of 2011.
The EPA did not release specifics on how it will establish financial assurance requirements.
The agency said it plans to examine other industries outside of the hardrock mining industry that also may warrant the development of financial responsibility requirements under Superfund by the end of the year. EPA plans to examine, at a minimum, the following classes of facilities: hazardous waste generators, hazardous waste recyclers, metal finishers, wood treatment facilities, and chemical manufacturers.
A U.S. Senate hearing held today will address proposed changes to a 137-year-old hardrock mining law that are meant to strengthen environmental restrictions and royalty payments.
According to an Associated Press report, under the existing law, private companies haven’t paid royalties to taxpayers for an estimated $245 billion worth of minerals extracted from public lands in more than a century.
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