Who Should Pick Up the Tab?

A bill relieving Homestake Mining of any liability for damages done to the environment has already gone before the Senate and been approved.  The bill transfers the legal responsibility from the company to the federal government.
The current area of the Homestake mine is to be converted into a laboratory focusing on neutrinos (subatomic particles).  Scientists say the mines are perfect since they are 8,000 feet underground and shielded from space radiation that could interfere with experiments.

If the President signs, the Homestake Mine Conveyance Act of 2001 (S.1389) will leave the government in charge of “any and all liability relating to the Mine and laboratory, including liability for--damages; reclamation; the costs of response to any hazardous substance, contaminant, or other material on, under, or relating to the Mine and laboratory; and closure of the Mine and laboratory.”

Also, if President signs, as he is expected to do so, neither Homestake or the Federal Government will be liable to any person for any damages created or linked to pollution.  This includes deaths, personal injuries, and damages to natural resources/ environment.  The only things that Homestake remains liable for are things such as unemployment, worker's compensation, and violating any criminal laws. 

The government plans on creating a bank account in the state of South Dakota, where the mines are located, that will have a variety of uses.   An annual deposit  will be made for funding and operating the proposed laboratory.  (The amount of which will be determined later.  The estimate right now coming form scientists and federal officers is somewhere between 500 million and 1 billion dollars.)

Many environmental groups and some members of Congress have voiced apprehension towards the bill.  "This bill could saddle taxpayers with costly and unprecedented environmental responsibilities. The federal government will be financially responsible for activities it did not undertake at a piece of property it does not control." Representative Sherwood Boehlert said.

"Homestake is getting off the hook for $30 million to $40 million of potential liability, based on the experience of adjacent mines that were closed and became Superfund sites," Mr. Tutchton, a lawyer in the Denver office of Earthjustice, adds.  (Superfund law states that owners and operators of mines can be held liable for the costs of cleaning up the properties even after they have been sold or shut down.)

Supporters though disagree, claiming the mine is a valuable opportunity.  "A gold mine for science discoveries about physics, astronomy, biology and geology," argues John Bahcall, an astrophysicist at the Institute for Advanced Study in Princeton.
"You have Senator Daschle feigning moral outrage over limitations on liability in antiterrorism insurance," Dick Armey, the House Republican leader, said. "Yet he comes right back on behalf of a special interest in his own state and says, `I want liability limitations.' "

back


  Sources-

Pear, Robert.  (January 3, 2002). “Mining Company Gets Protection in Legislation Pushed by Daschle”  New York Times, http://www.nytimes.com/2002/01/03/politics/03MINE.html, accessed on January 4, 2002
.
Homestake Mine Conveyance Act of 2002, http://rs9.loc.gov/cgi-bin/query/D?c107:3:./temp/~c1074XZMqy:e16960,  accessed on January 4, 2002