State mineral production taxes and mining law reform

Fuel and leasable minerals mined in the United States have historically been subject to federal royalties while locatable minerals have not. In recent years there have been multiple attempts to alter this policy and subject locatable minerals to federal royalties as well; most recently the preliminary 2012 Obama budget included a gross royalty on hard-rock mining on public lands. This paper analyzes the issue of imposing such federal royalties from both a legal and economic perspective. From a legal perspective, it is argued that the state of western property rights precludes royalties on currently extant claims so revenues from a royalty would not be realized for many years. From an economic perspective, it is argued that the effect on revenue would be smaller than one might anticipate due to such a royalty crowding out state levies or encouraging vertical disintegration on the part of mining firms to avoid much of the burden of the royalty.     

The development of first-possession rules in US mining, 1872–1920: theory, evidence, and policy implications

This paper applies a property rights framework to federal mineral lands in the western United States from the enactment of the Mining Law in 1872 until the enactment of the Mineral Leasing Act for fossil fuels in 1920. There are two principal findings. First, the Mining Law appears to have been an effective means for assigning rights to mineral stocks on public lands (at least through 1920). This conclusion is supported by evidence from claim disputes in the West. Second, the impetus for the Mineral Leasing Act did not derive from the different physical characteristics of hardrock minerals and petroleum. The relevance of these conclusions to contemporary mineral policy is also discussed.     

The hotelling valuation of natural resources: some further results

This paper tests the Hotelling Valuation Principle (HVP) for natural resources using data from oil and gas ‘pure plays’ such as royalty trusts and master limited partnerships. The results support the HVP which specifies that the value of any mineral reserve may be predicted by the market price of the resource, net of extraction costs. Regression results also indicate that a Box-Cox transformation of variables provide a better means of estimating the functional relationship between the value of an exhaustible natural resource and its market price.     

The Relationship of Ecosystem Management to NEPA and Its Goals

/ The National Environmental Policy Act of 1969 (NEPA) was intended to promote a systematic, comprehensive, interdisciplinary approach to planning and decisionmaking, including the integration of the natural and social sciences and the design arts. NEPA critics have cited three key shortcomings in its implementation: (1) a lack of engagement with the NEPA process early in the planning process through interdisciplinary collaboration; (2) a lack of rigorous science and the incorporation of ecological principles and techniques; and (3) a lack of emphasis on the Act's substantive goals and objectives. In recent years and independent of NEPA, a policy of ecosystem management has been developed, which represents a fundamental change from a fragmented, incremental planning and management approach to a holistic, comprehensive, interdisciplinary land and resource management effort. We postulate that by incorporating ecosystem management principles in their planning and decisionmaking, federal agencies can address the shortcomings in NEPA implementation and move closer to NEPA's intent. A case analysis of EISs prepared by the USDA Forest Service before and after adopting an ecosystem management approach supports our hypothesis.     

Net value royalties : Practical tool or economist's illusion?

The petroleum industry has traditionally generated substantial revenues for governments. Where governmental power is divided, as in federations like Canada and Australia, a junior level of government normally collects royalties while the senior level levies a variety of imposts (income tax, export duties, excises on production). The combination of recent sharp reductions in prices, more price volatility and an era of freer markets has subjected existing tax and royalty systems to severe strain and has shifted attention to the design of fiscal systems that are more profit- sensitive. For the royalty element, interest focuses on net value royalties (NVRs). This paper deals with the nature and problems of NVRs. It proceeds by looking first at the application of resource rent royalties in Australia. It then focuses on recent megaproject royalty arrangements in Alberta and evaluates the degree to which Alberta's current royalty system is profit- sensitive. Problems associated with NVRs are discussed in the fourth section; concluding remarks are made in the last section.     

The dilemma of the mining royalty: contractual or realty interest

At common law, the legal nature of a mining royalty between private parties will decide the respective rights of payor and recipient. In some circumstances, it will also determine whether the interest of the recipient will prevail or may be lost and ignored. Industry practices, even those of long standing, that are contrary to the law will not change the law or its effect to meet such concerns. This paper looks at the development of the mining royalty between private parties in Canada and the effect of the realization by recipients that contractual royalties, as opposed to royalties that are interests in the lands or product to which they relate, can be lost in certain circumstances. Suggestions are made for some features that may assist in transforming an otherwise contractual royalty into a real property interest. Some of the concerns for both payor and recipient with respect to the implementation of such suggestions are also discussed.
The article has two appendices attached. Appendix A is an extract from an article by the author discussing the concept of payment of a royalty in kind which is relevant to such suggestions. Appendix B contains some of the more lengthy explanatory notes referred to in the text of the article.     

Mandatory planning for environmental innovation: evaluating regulatory mechanisms for toxics use reduction

This paper analyzes the Massachusetts Toxics Use Reduction Act (TURA), evaluating what TURA has achieved, how it has been implemented, how it motivates firms to change and how its underlying principles might be strengthened to better support innovation for toxics use reduction. Through this analysis recent debates are engaged about the potentials and limitations of using regulation to promote innovation for the environment. The analysis here shows that TURA is distinct from existing regulatory programmes in how it requires firms to self‐evaluate and plan for process improvements, supports implementation through technical assistance and focuses on pollution prevention rather than control. Mandatory planning, new mechanisms of accountability and improved processes of learning have all been critical to TURA's success in motivating firms to innovate for the environment. Taken together, these factors have supported incremental innovations in industry that may point the way toward policies to support even greater environmental improvements.     

An analysis of the relationship between uncertainty-reducing exploration and resource taxation

This paper analyses the role of exploration as an uncertainty-reducing activity for a company facing resource taxation. Such exploration is of benefit, even to a risk-neutral company, because it enables a better decision to be made regarding extraction investment (Kretzer, 1994). This paper extends previous contributions to the economics of exploration in several areas which are of practical significance. First, exploration is analysed both in the context of a log-normally distributed resource deposit and of an ad valorem royalty. Second, the role of exploration in an ad valorem royalty regime is contrasted with that of a Resource Rent Tax. Finally, the relationship between exploration and resource taxation in situations of very divergent pre-exploration levels of uncertainty is considered.     

Biodiversity laws: State experiences

The Western Governors' Association (WGA) includes both the public lands states with their issues and the plains states, which are 98% privately owned. WGA deals with most legislation affecting biodiversity, whether the effect is direct or tangential. It will probably not be possible, or desirable, for one entity to be in charge of biodiversity conservation. The Endangered Species Act, public lands laws, agricultural laws, water law, environmental laws, and funding legislation all affect biodiversity conservation and the responsibility for it. None of them on their own are enough, and most can cause harmful unintended consequences for biodiversity. The experience of western states in developing consensus principles for reauthorization of the Endangered Species Act provides an example of common-sense ways to improve management of biodiversity, notwithstanding the complexity and large stakes involved. The WGA's proposed changes call for increasing the role of states, streamlining the act, and increasing certainty for landowners and water users. To achieve sustainable conservation for biodiversity, the better question is not “Who is/should be in charge?”, it is “How do we get this done?” To answer this, we need goals, guidance, and bottom lines from federal laws, and management and oversight at the state level, but they all need to support local on-the-ground partnerships. Sustainable conservation requires the active participation of those who live there. WGA's experience in coordinating the Great Plains Partnership as well as its work with watershed efforts shed light on what to expect. Multilevel partnerships are not easy and require a different way of doing business. The ad hoc, sitespecific processes that result do not lend themselves to being legislated, fit into organizational boxes, or scored on a budget sheet. They do require common sense and a longterm perspective.     

Inspiring Respect for Animals Through the Law? Current Development in the Norwegian Animal Welfare Legislation

Over the last years, Norway has revised its animal welfare legislation. As of January 1, 2010, the Animal Protection Act of 1974 was replaced by a new Animal Welfare Act. This paper describes the developments in the normative structures from the old to the new act, as well as the main traits of the corresponding implementation and governance system. In the Animal Protection Act, the basic animal ethics principles were to avoid suffering, treat animals well, and consider their natural needs and instincts. In addition, a principle for balancing our duties towards animals with the needs and interests of humans was expressed by the formulation “unnecessary suffering.” These principles (only with slightly different formulations) are retained in the new act. The novelty of the new act is shown by its explicit intention to promote respect for animals and its recognition of animals’ intrinsic value. Whereas intrinsic value is only given a symbolic function, the notion of respect is intended to have practical consequences. One interpretation of respect for animals is taking the animal’s integrity—and not only welfare—into account. Another is to see the introduction of respect as a call to animal keepers to provide animals with welfare exceeding the minimum requirements. In several respects, the legal system now seems to leave more responsibility to the individual animal keeper—and to citizens in general. I argue that if the authorities really do want to promote respect for animals, they must at the same time initiate activities to achieve this. In my perspective the challenge is to provide adequate measures to achieve in practice the intended respect for animals expressed in the new act.     

Guidelines and Techniques for Improving the NEPA Process

/ The Council on Environmental Quality's (CEQ's) principal aims in implementing the National Environmental Policy Act (NEPA) are (1) to reduce paperwork, (2) to avoid delay, and most importantly (3) to produce better decisions that protect, restore, and enhance the environment. This paper presents four strategies for improving the NEPA process along with tools that can be used to implement each strategy. The tools include guidelines for project management and problem definition, tips for acquiring existing information and identifying issues of public concern, worksheets on how to identify and analyze potential impacts on resources, ideas for enhancing NEPA documents, and a NEPA process checklist. The tools can be used at various stages of the NEPA process and provide a toolbox of guidelines and techniques to improve implementation of the NEPA process by focusing the pertinent information for decisionmakers and stakeholders. KEY WORDS: National Environmental Policy Act; NEPA; Environmental impact assessment; Ecosystem management     

The town and country planning act 1947

The 1947 Town & Country Planning Act is regarded as the statutory foundation of physical planning in post‐war Britain. This paper looks at the Act in context and assesses its effectiveness from the vantage point of forty years since its implementation.     

Private capital: What impedes its entry into China's minerals industry

The paper commences with an analysis of the nature and status of private capital investment in the minerals industry in China. Based on the analysis, the authors examine the main barriers in terms of the mineral rights market, industry access and investment security that impede the participation of private capital into exploration and development of China's mineral resources. The discussion addresses how to encourage the participation of private capital into mining investment and it concludes that it is of significant importance to ensure the soundness of mineral rights market, impartiality of industry access, and security of mineral rights.     

The U.S. Flood Control Program at 75: Environmental Issues1

Black, Peter E., 2012. The U.S. Flood Control Program at 75: Environmental Issues. Journal of the American Water Resources Association (JAWRA) 48(2): 244‐255. DOI: 10.1111/j.1752‐1688.2011.00609.x Abstract: Recent, recurring, and increased magnitude floods adversely challenge long‐held and erroneous concepts of flood control. This article focuses on the environmental issues with comprehensively reviewed essentials of the United States (U.S.) riverine Flood Control Program, including news reports, scientific articles, books, and landmark treatises. For the past three‐quarters of a century, U.S. floods have continued (and will continue) to occur, causing increasing property damage with growing fiscal loss. Reasons include inattention to fundamental principles of physics, hydrology, and ecology. There are also important challenges involving environmental policy, economics, and common sense. Measures afforded by the existing program encourage and enable investment in floodplains while violating a variety of natural principles that make the situation worse. This detailed review includes the questionable (actually untrue) justification in the document‐setting policy for the 1936 Omnibus Flood Control Act. The well‐documented evidence is overwhelming. An alternative approach is presented that would enable and celebrate natural floods, managing their ecological and hydrological values, and not attempting to control them.     

Quantifying natural resource injuries and ecological service reductions: challenges and opportunities

The natural resource damage assessment (NRDA) provisions of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Oil Pollution Act (OPA) are complex and have been difficult to implement. The complexity and difficulty in implementation arise both from the assessment procedures specified in agency NRDA guidance and from the limited ability of ecologists to quantify impacts of hazardous substances on natural resources. This paper explores the scientific aspects of NRDA implementation, and discusses conceptual and methodological relationships between NRDA and the much broader field of ecological risk assessment (ERA). We discuss three critical components of the NRDA assessment approach: measuring natural resource injuries and reductions in resource services; evaluating causality; and establishing baseline conditions. We identify (1) specific approaches drawn from ERA practice that could improve each of these components, and (2) research needs and institutional changes that may improve the ability of the NRDA process to achieve its stated objectives. We recommend the acceleration of the ongoing dialogue among NRDA practitioners from the Trustee and PRP communities as a first step toward resolving the procedural and technical deficiencies of the NRDA process.     

Comparing petroleum fiscal regimes under oil price uncertainty

This study investigates and compares five upstream petroleum fiscal systems under crude oil price uncertainty. The fiscal systems analyzed are: the Alberta Canada tax and royalty system, the Papua New Guinea (PNG) (pre-2003) traditional Rate of Return (ROR) system, the Sao Tome and Principe/Nigerian Joint Development Zone (SNJDZ) Production Sharing Contract (PSC), the Tanzanian PSC/ROR hybrid system and the Trinidad and Tobago PSC. Contingent claims analysis is used to value the governments’ tax claims under uncertainty using a numerical approach, viz., Monte Carlo simulation. Each system is tested to obtain the after-tax value accruing to firms as well as the distortionary effects introduced by the fiscal systems. The results are then ranked. The Alberta Canada and PNG fiscal systems provide companies with the highest after-tax values while also being the least distortionary. The Tanzanian system is the lowest in both rankings, providing relatively low after-tax values and introducing strong distortionary effects. The SNJDZ PSC imposed a relatively high tax burden on companies with median distortionary effects. The Trinidadian PSC generated a median tax burden on companies but has strong distortionary effects.     

稠油罐底泥碳化处理技术研究与应用*

为解决油田生产过程中产生的稠油罐底泥的环境污染和资源浪费问题,在分析含油污泥性质和特点的基础上开发了稠油罐底泥碳化处理工艺及配套装置。介绍了该技术的原理及工艺流程,在小试、中试研究的基础上,进行了工业化应用,稠油罐底泥的处理效果表明:油气回收率可达90%以上,轻质油品占回收油总量的78%以上,焚烧处理后的残渣未检出矿物油;烟气和废水相关项目的监测值符合相关标准。     

Petroleum royalties and regional development in Brazil: The economic growth of recipient towns

In 1997, Brazil approved law n^er 9478, establishing new rules for sharing petroleum royalties with Brazilian municipalities. The goal of this paper is to evaluate whether royalties distributed under the new law have contributed for the development of benefited municipalities. For that the difference-in-differences estimator (diff-in-diff) is used, which compares the evolution of the economic product into the municipality affected by the new law with the unaffected ones, by exploring the new legislation as an exogenous change. The data refer to the municipal gross domestic product (GDP) growth rate before and after the event. Results are surprising, showing that royalty receivers grew less than municipalities that did not receive such resources. The difference is small but statistically significant. In general, an increase of one real in royalties per capita reduces the growth rate of the municipal product in 0.002 percentile points.     

ESTABLISHING WATERSHED MANAGEMENT IN LAW: NEW ZEALAND'S EXPERIENCE1

ABSTRACT: New Zealand is one of the first countries in the world to enshrine the concept of watershed management in law, through institutional arrangements and the Resource Management Act of 1991 ‐ a law constructed on a watershed management legacy begun in 1941. This paper outlines the development of New Zealand's Resource Management Act (as it applies to water management) and the lessons that have been learned in its implementation.     

Camel culling and carbon emissions in rangelands in central Australia

Culling feral camels will impact on the carbon emissions from them. Culling of feral camels stops their long-term continuous methane emission, but emits carbon from their carcasses in the short term. Through on-site monitoring of the decomposition process of camels that have been shot dead, this paper models the pattern of carbon emissions during the decomposition of these camels in Central Australia, and analyses the contribution of the camel culling programme to carbon emission mitigation on the rangelands. A ‘carbon royalty’ payment mechanism is also suggested to encourage local participation in carbon markets through an involvement in natural resource management.