The U.S. Senate Committee on Energy and Natural Resources Subcommittee on Public Lands and Forests held a hearing yesterday on S. 3157, the Southeast Arizona Land Exchange and Conservation Act of 2008 -- a newly updated bill that facilitates an important land exchange that will protect environmentally sensitive lands, while providing a much-needed economic engine for the Town of Superior & surrounding communities.
Senate Assistant Republican Leader Jon Kyl (R-Ariz.) is the chief sponsor of the Act & testified at the hearing in support of his legislation, urging swift committee action. S. 3157 updates an earlier version of the bill with several improvements that resulted from extensive consultation with local stakeholders & leaders.
The updated legislation provides proper assurance that taxpayers will receive a fair return for the minerals that are produced from mining on federal land; requires Resolution Copper to convey to the Forest Service a popular rock climbing area known as “The Ponds,” ensuring the area will remain open for future recreation; & includes a clarification of the National Environmental Policy Act compliance requirement.
The following is Senator Kyl’s testimony:
Mr. Chairman and Members of the Subcommittee,
Thank you for the opportunity to testify today in support of my bill, S. 3157, the Southeast Arizona Land Exchange and Conservation Act of 2008. S. 3157 reflects many changes from its earlier versions based upon extensive discussions and interactions with stakeholders, the Arizona congressional delegation, and previous testimony provided by the Administration. I believe that the extent to which this bill has been commented on and modified is a testament to its importance to the state of Arizona and the nation. In my view, this land exchange legislation strikes the right balance of commonsense fiscal and environmental policy.
I believe this legislation would have a significant economic impact on the Federal Treasury, the State of Arizona and local governments. It is my understanding that this mine, once in operation, could have a total economic impact of more than $50 billion, $800 million per year if the price of copper were only $1.30 per pound, equivalent to hosting two Super Bowls per year.
This mine could also supply as much as 20 percent of the nation’s demand for copper. This production could help us move towards sustainability with respect to a strategic metal and enhance our competitiveness internationally. As more Americans move to hybrid cars and trucks, which require on average twice as much copper as traditionally designed vehicles, domestic demand for copper will continue to rise dramatically. In addition to many economic benefits to the state and the U.S. Treasury, S. 3157 would provide environmental benefits and address environmental concerns expressed by various stakeholders.
This exchange will bring lands into public ownership that have extremely high wildlife, watershed and other conservation values. These “offered” lands include more than two miles of perennial trout stream on East Clear Creek in northern Arizona where I have been assisting public ownership and conservation efforts for many years. Many Arizonans go to this area to escape the summer heat, and preserving water and wildlife-based recreational opportunities is an important goal. Additionally, these lands would include 6.8 miles of land spanning both sides of the lower San Pedro River, which comprises some of the best migratory bird habitats and flyways in the entire southwest and which S. 3157 would immediately add to the existing San Pedro Riparian National Conservation Area; and almost 1,000 acres in the Appleton-Whittell Research Ranch, which is a habitat for over 400 species of native grasses and a nature/research preserve jointly managed by the Forest Service, BLM and Arizona Audubon. This area is also in the San Pedro River watershed, protecting two important San Pedro watershed areas; And, the Forest Service would acquire five inholdings in the Tonto National Forest that have important water, wildlife, plant and cultural and recreational resources.
This legislation reflects extensive work with stakeholders over several years to incorporate changes that have been requested and suggested by numerous parties including Republican and Democrat members of the Arizona congressional delegation, the Administration, and various community, recreational and environmental stakeholders.
The changes reflected in this version of S. 3157 provide a necessary balance between economic opportunity, environmental sensitivity, and sustainability for local communities and the people of Arizona. One of these changes involves the National Environmental Policy Act (NEPA). The permitting of a mine this size will require full compliance with NEPA, and new language in S. 3157 section 4(h) uniquely clarifies the NEPA requirement by reemphasizing it without establishing any precedent for future land exchanges. This legislation leaves no doubt that all of the normal land exchange analyses and clearances pertaining to wetlands and floodplains, T&E species, cultural and historic resources, and hazardous materials must be completed prior to the lands being exchanged.
Another change involves a clarification of the market value of resources that could be mined. Until the feasibility analyses that this legislation facilitates are completed, the exact quantity of ore that could be mined cannot be determined. To insure that the Forest Service appraisal process for the Oak Flat Federal land is fair, S. 3157 stipulates that if Resolution Copper produces more ore from Federal land than was anticipated in the appraisal process, the company will make a value adjustment payment to the United States. This improvement provides an assurance to taxpayers that they will receive a fair return for the minerals that are produced.
This improved bill also addresses important concerns that were expressed by the climbing and bouldering communities in my state. Although I was disappointed that the Governor decided not to pursue the proposed state park at Tam O’Shanter Mountain near Kearney in this legislation—and I am open to including it if she changes her mind—I believe that this bill reflects many of the concerns from the climbing community. As a result of discussions with the climbers, S. 3157 requires that Resolution Copper convey to the Forest Service a portion of its private holdings around Oak Flat that is currently a popular climbing area known as “The Ponds.” Forest Service management will provide long-term assurances to climbers that the area will remain open for recreation. It is my understanding that the climbing community, through the Queen Creek Coalition, will continue to work with Resolution to keep as much of the current climbing areas available to the climbers for as long as possible and to identify new recreation areas that could be developed for their use.
An additional change requested by the Administration involves increased funding for the Forest Service to replace the Oak Flat Campground. Many other changes and improvements to the legislation will be discussed by Resolution and the Administration today, and I welcome additional suggestions from this Committee that will further improve S. 3157 and facilitate a timely markup of the legislation.
With this land exchange we can preserve lands that advance the important public objectives of protecting wildlife habitat, cultural resources, the watershed, and aesthetic values, while generating economic, recreation, and employment opportunities for state and local residents. I hope we approve the legislation at the earliest possible date. It is a winning scenario for our environment and our economy.
Mr. Chairman, I respectfully request your support and assistance to have this important legislation marked up and enacted into law this year. I would be happy to answer any questions the Subcommittee might have.