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Rambler-2012.Pdf S. HRG. 112–486 RESOLUTION COPPER HEARING BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS SECOND SESSION TO CONSIDER H.R. 1904, THE SOUTHEAST ARIZONA LAND EXCHANGE AND CONSERVATION ACT OF 2011; AND S. 409, THE SOUTHEAST ARIZONA LAND EXCHANGE AND CONSERVATION ACT OF 2009, AS REPORTED BY THE COMMITTEE DURING THE 111TH CONGRESS FEBRUARY 9, 2012 ( Printed for the use of the Committee on Energy and Natural Resources U.S. GOVERNMENT PRINTING OFFICE 75–271 PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON ENERGY AND NATURAL RESOURCES JEFF BINGAMAN, New Mexico, Chairman RON WYDEN, Oregon LISA MURKOWSKI, Alaska TIM JOHNSON, South Dakota JOHN BARRASSO, Wyoming MARY L. LANDRIEU, Louisiana JAMES E. RISCH, Idaho MARIA CANTWELL, Washington MIKE LEE, Utah BERNARD SANDERS, Vermont RAND PAUL, Kentucky DEBBIE STABENOW, Michigan DANIEL COATS, Indiana MARK UDALL, Colorado ROB PORTMAN, Ohio JEANNE SHAHEEN, New Hampshire JOHN HOEVEN, North Dakota AL FRANKEN, Minnesota DEAN HELLER, Nevada JOE MANCHIN, III, West Virginia BOB CORKER, Tennessee CHRISTOPHER A. COONS, Delaware ROBERT M. SIMON, Staff Director SAM E. FOWLER, Chief Counsel MCKIE CAMPBELL, Republican Staff Director KAREN K. BILLUPS, Republican Chief Counsel (II) C O N T E N T S STATEMENTS Page Bingaman, Hon. Jeff, U.S. Senator From New Mexico ........................................ 1 Cherry, Jon, Vice President, Resolution Copper Company .................................. 25 Farquhar, Ned, Deputy Assistant Secretary, Land and Minerals Management, Department of the Interior .................................................................................. 17 Kyl, Hon. Jon, U.S. Senator From Arizona ........................................................... 5 Lewis, Shan, President, Inter Tribal Council of Arizona, Vice Chairman, Fort Mojave Tribe ................................................................................................ 30 McCain, Hon. John, U.S. Senator From Arizona .................................................. 3 Wagner, Mary, Associate Cheif, Forest Service, Department of Agriculture ..... 13 APPENDIXES APPENDIX I Responses to additional questions .......................................................................... 49 APPENDIX II Additional material submitted for the record ........................................................ 65 (III) RESOLUTION COPPER THURSDAY, FEBRUARY 9, 2012 U.S. SENATE, COMMITTEE ON ENERGY AND NATURAL RESOURCES, Washington, DC. The committee met, pursuant to notice, at 9:30 a.m., in room SD–366, Dirksen Senate Office Building, Hon. Jeff Bingaman, chairman, presiding. OPENING STATEMENT OF HON. JEFF BINGAMAN, U.S. SENATOR FROM NEW MEXICO The CHAIRMAN. OK. Why do we not get started? I am told Sen- ator Murkowski is delayed a little bit and has asked us to go ahead, so we will do that. This morning the committee is considering legislation to provide for a land exchange between the Forest Service and the Bureau of Land Management, and the Resolution Copper Company to facili- tate Resolution Copper’s development of a large copper mine in Southeastern Arizona. This is an issue that has been before the committee now for sev- eral years, one that has generated significant controversy. During the previous Congress, Senator McCain, who is a member of our committee, asked me to work with him and see if we could come up with agreement on bill language to move this forward. We spent several months in discussions at the staff level on that set of issues, including many meetings with Resolution Copper and other interested parties. We did reach a compromise, which then resulted in the committee reporting a bill unanimously. Unfortunately, that bill, like almost all other public land bills re- ported in the last Congress, was not considered on the Senate floor, and was not enacted. Let me turn for a minute to the issues associated with the legis- lation. The mine proponents contend that the mine will create sig- nificant economic benefits. It will be located near an area with a history of mining. That would all appear true. This is a complicated project, as I understand, and will have a significant impact on the land which is currently part of a national forest. There is considerable disagreement as to the effect that the de- velopment will have on cultural resources and to sites that nearby Indian tribes consider sacred. There are issues that obviously need to be reviewed and answered before the land exchange takes place, in my view. A principle concern with the House bill—let me just flag so that witnesses can comment on it—is that it provides for a directed land (1) 2 exchange, does not allow for the analysis of potential impacts of the exchange prior to that exchange being conducted. It does not give the Federal Government any ability to modify the terms and condi- tions of the exchange to take into account information raised or brought to light as part of those reviews. Let me go ahead and defer to Senator Barrasso if he has com- ments that he wanted to make as an opening statement here. Senator BARRASSO. Mr. Chairman, in light of the fact that Sen- ator Murkowski is here and has an opening statement, I have one. I will wait until after our guests make their presentation. Thank you, Mr. Chairman. The CHAIRMAN. Very good. Why do we not go ahead and hear from our 2 colleagues from Arizona, Senator McCain and Senator Kyl. Why don’t you proceed and give us your views on this issue? We appreciate your being here. Senator McCain. [The prepared statements of Senators Barrasso and Risch follow:] PREPARED STATEMENT OF HON. JOHN BARRASSO, U.S. SENATOR FROM WYOMING I would like to thank Senators McCain and Kyl for their testimony here today. I would like to join them in expressing support for H.R. 1904. Like Senators McCain and Kyl, I believe Congress should not cede its constitu- tional authority to direct land exchanges. A State’s elected representatives are far better positioned to determine what is in the public interest than political appointees in Washington. Of course, I understand that determining the public interest may often be dif- ficult. However, in our system of government, we rely upon the judgment of our elected representatives. We do not expect or want our elected representatives to abdicate their responsibil- ities or punt difficult decisions to unelected officials. Congress has a long history of directing land exchanges. I don’t see why Congress should give up that authority now—not with a national unemployment rate of 8.3 percent. And not when this specific land exchange will help create an estimated 3,700 jobs. And I certainly don’t think that Congress should cede its authority to an Adminis- tration that puts politics ahead of unemployed Americans. We have seen this time and time again. I’m not only referring to the President’s rejection of the Keystone XL pipeline. But also to the Administration’s uranium withdrawal in Arizona. And the recent proposal to vastly reduce the acreage available for oil shale devel- opment throughout the West. In January, the President’s Jobs Council released its year-end report for 2011. In that report, the Jobs Council stated that: ‘‘providing access to more areas for mining is controversial, but, given the current economic situation, we believe it’s necessary to tap America’s assets in a safe and responsible manner.’’ Well, I believe H.R. 1904 does just that. And if the Administration won’t follow the recommendations of the President’s own Jobs Council, then Congress should. We can begin by passing H.R. 1904. PREPARED STATEMENT OF HON. JAMES E. RISCH, U.S. SENATOR FROM IDAHO I think it is unusual that we are holding a hearing on a bill that has not been introduced by the proponents of the exchange, Senators McCain and Kyl. It is my hope that this committee will work with the home state senators on H.R.1904, which they support. I do not support ceding the power of Congress to determine what is in the public interest to the Executive Branch. I believe that Senators McCain and Kyl represent their state well and have clearly determined that 3700 jobs is in the best interest of the people of Arizona in an area where unemployment is near 50 percent. I be- lieve that my colleagues from Arizona understand the impacts of this exchange bet- 3 ter than the rest of us in the U.S. Senate and we should give deference to their views. STATEMENT OF HON. JOHN MCCAIN, U.S. SENATOR FROM ARIZONA Senator MCCAIN. Thank you, Mr. Chairman. First of all, I would like to thank you for all the efforts you have made on behalf of try- ing to see this very important issue come to fruition. I want to thank you and your staff for the efforts that we have made. If in my statement and Senator Kyl’s statement, I am sure if we show a little frustration, I think maybe it would be understandable be- cause we have been at this issue for a long time. As you know, the bill would facilitate a complex land exchange, as you said, that will ultimately protect 5,000 acres of environ- mentally sensitive lands throughout Arizona, while allowing for the Resolution Copper project to develop the third largest copper ore body in the world—the third largest in the world. It would employ 3,700 Americans. It would produce 25 percent of the United States copper supply. It generates $61 billion in eco- nomic growth, provide $20 billion in Federal, State, and local tax revenue. We can get copper from this mine, Mr. Chairman, or we can im- port it from someplace overseas. There will be a continued demand for copper in our economy. My colleague, Senator Kyl, and I first introduced the bill in 2005, 7 years ago.
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