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.