Wednesday, February 11, 2009

Southeast Arizona Land Exchange and Conservation Act of 2009

U.S. Senate Republican Whip Jon Kyl (R-Ariz.), along with U.S. Senator John McCain (R-Ariz.), today introduced the Southeast Arizona Land Exchange and Conservation Act of 2009 (S. 409), a bill which facilitates an important land exchange that will protect environmentally sensitive lands, while providing a much-needed economic engine for the Town of Superior and surrounding communities.

“This land exchange strikes the right balance of commonsense fiscal and environmental policy,” said Senator Kyl. “More importantly, it could produce more than 1,000 jobs at its peak, while protecting these conservation lands for the enjoyment of future generations.”

“I look forward to continuing to work with all interested parties to resolve the important issues associated with this legislation and believe timely action on this matter is due and will benefit all Arizonans,” said Senator McCain.

Kyl and McCain introduced similar legislation in previous congressional sessions, but final action on the bills did not occur before adjournment.

S. 409 is nearly identical to previous versions of the bill. Changes reflect further stakeholder engagement. Notably, it would provide private land to expand the boundaries of the Apache Leap, which would be left in Forest Service control in perpetuity.

Under this bill, Resolution Copper Mining would convey parcels of private land, totaling 5,566 acres, to the U.S. Forest Service and the Bureau of Land Management.

These parcels include lands along the San Pedro River, an important internationally recognized migratory bird corridor, riparian and wetland habitat for threatened and endangered animal and plant species, and magnificent canyons and forests that are home to big game species.

In exchange for these lands, 2,406 federally-owned acres, commonly known as “Oak Flat,” would be conveyed to Resolution Copper and used for the future exploration of copper ore. Oak Flat lies adjacent to, and is intermingled with, Resolution Copper’s existing private lands and the Magma Mine. Seventy-five percent of this parcel is overlain with unpatented mining claims owned by the company.

It also requires Resolution Copper to convey to the Forest Service a popular rock climbing area known as “The Ponds,” thereby ensuring the area will remain open for future recreation and includes a clarification of the National Environmental Policy Act compliance requirements.

On the economic side, the exchange will have a significant impact at the federal, state, and local levels. Annually, the mine could produce an effect that is equivalent to hosting two Super Bowls—about $800 million per year, assuming a copper value at $1.30 per pound.

“This is a real economic stimulus package,” noted Kyl. “Unlike most bills I see in Washington these days, this will create jobs and generate a tangible and significant economic benefit at every level, without any federal subsidy. This land exchange could return more than $8 billion to the federal treasury over the life of the mine, in addition to a total economic impact of more than $50 billion.”

The mine could also supply as much as 20 percent of the nation’s demand for copper, thus helping the nation move toward sustainability with respect to that critical metal. In the years ahead, demand for copper will likely increase as more Americans move to hybrid cars and trucks, which require on average twice as much copper as traditionally designed vehicles.

As with previously introduced versions, this bill is a culmination of extensive and careful negotiation with local and state stakeholders, federal agencies, and mining and other interested parties. The editorial boards of the Arizona Republic and the East Valley Tribune newspapers have previously expressed support for the exchange as well.

The bill now goes to the Senate Committee on Energy and Natural Resources for consideration. Kyl urges the Committee to take swift action.