Organizing for America

Fact Check: Obama On Mining Reform

RHETORIC: Obama Is Doing the Bidding of Mining Interests Regarding The General Mining Law Of 1872

REALITY: Obama "First Of Any Of The Presidential Candidates To Take A Public Stand" Opposing House Mining Reform Bill But Supported Updating The General Mining Law Of 1872 And Would Work With Harry Reid On Compromise Legislation

Obama "First Of Any Of The Presidential Candidates To Take A Public Stand" Opposing House Mining Reform Bill. The AP reported, "Democratic presidential hopeful Barack Obama is siding with Nevada's mining industry. At least for now. The Illinois senator said today he opposes the mining reform bill the House has approved because it would be too burdensome on the industry and could end up costing miners jobs in Nevada and other states... But he told Nevada news reporters during a conference call today that he specifically opposes parts of the House-passed bill that would impose royalties of 4% of gross revenue on existing hard-rock mining operations, and royalties of 8% of gross revenue on new mining operations. He says it is clear to him that the bill, in his words, 'places a significant burden on the mining industry and could have a significant impact on jobs.' He's believed to be the first of any of the presidential candidates to take a stand publicly on the proposal." [KESQ, 11/6/07]

Congressman Nick Rahall Called The Eight Percent Royalty A "Good Starting Point" But Was "Not Locked In Concrete" With His Own Bill. "Rahall seemed flexible about changes to the bill, saying he's not ruling out any provisions at this point. He said the 8 percent was a 'good starting point' for negotiations. 'I'm not locked in concrete with what I introduced,' he said." [The Billings Gazette, 5/11/07]

Nevada Mining Association Called The Eight Percent Royalty Arbitrary. The AP reported, "Opponents of the legislation believe production would fall off and funding for exploration to sustain mining and mining communities would go away if companies were compelled to pay the fees. 'You need to work with the existing framework because an 8 percent royalty is a gross injustice,' said Russ Fields, head of the Nevada Mining Association. 'It's not fair to mining or the public because mining has no control over the price of minerals, so it's impossible for mining to pass on the cost of the fee to the customer.'" [AP, 8/21/07]

Obama Said He Supported Updating The General Mining Law, Would Work With Reid To Find Compromise. The AP reported, "Obama says he supports efforts to update the General Mining Law of 1872. He says he will work with Nevada Senator Harry Reid to find a compromise with an appropriate balance between environmental protection and a healthy mining industry." [KESQ, 11/6/07]

Reid Said "We Have To Reach A Compromise" On Mining Law Revisions. "Sen. Reid said environmental groups have caused the mining industry to 'live in a political wilderness' for years, adding, 'It can't be their way or no way. We have to reach a compromise.' Reid added that some revisions to the mining law are needed if for no other reason than to end uncertainty for the industry. If Congress doesn't act, he said the issue is left in the hands of whoever is president." [AP, 8/21/07]

Reid Said He Hoped Congress Would Deliver "Real And Reasonable Reform" On Mining Updates. CQ reported, "A pivotal figure in the mining debate is Senate Majority Leader Harry Reid, D-Nev., a son of a miner and a longtime ally of the industry. Reid's willingness to negotiate a mining bill is considered the best indication that the industry is ready to make a deal. When Rahall held a field hearing in a mining area of northern Nevada during the August recess, Reid made introductory remarks. 'It is my genuine hope,' he told the crowd, 'that at the end of this Congress that we can both be proud to have delivered real and reasonable reform for one of our nation's vital industries.' Reid added that finding a compromise was better than 'crossing our fingers every four years and hoping that the newly elected president understands the West and understands the importance of mining.'" [CQ, 9/23/07]

RHETORIC: A Member Of Obama's Nevada Steering Committee Is A State Lobbyist For Mining Interests, Has Influenced Obama's Position On The General Mining Law Of 1872

REALITY: Billy Vassiliadis Cannot Lobby A Federal Official On Any Issue

According To The Law, Only Those Who Lobby The Federal Government Need Register As A Federal Lobbyist. US Code reads in part that "responsible representative Government requires public awareness of the efforts of paid lobbyists to influence the public decisionmaking process in both the legislative and executive branches of the Federal Government." [2USC Sec. 1601, Accessed 8/13/07]

AP: "Vassiliadis Is Not A Federally Registered Lobbyist." The AP reported, "Vassiliadis is not a federally registered lobbyist." [AP, 11/15/07]

Vassiliadis Said He Had Never Discussed Mining With Obama. Vassiliadis said, "I have not had a single conversation, not one, with anybody in the Obama campaign about mining." [AP, 11/15/07]

RHETORIC: "Obama Regularly Assails The Relationship Between Special Interests, Lobbyists And Politicians."

REALITY: Obama Does Not Take Money From PACs Or Lobbyists, Breaking The Relationship Between Special Interests And Politicians

Washington Post Fact Check: Obama Has Not Accepted Campaign Contributions From Federally Registered Lobbyists. The Washington Post reported in a fact check, "As far as we can establish (and we have only examined the present election cycle), neither Edwards nor Obama have knowingly accepted campaign contributions from federally registered lobbyists, so that claim is technically correct." [Washington
Post, 10/22/07]

Public Citizen: Praised Obama Efforts To Turn His Back On Lobbyist Money. Roll Call reported, "Federally registered lobbyist Craig Holman, for example, who works for the government watchdog group Public Citizen, should not get lumped into the same broad category as Jack Abramoff, the now-incarcerated lobbyist. But perhaps these lobbyists are more eager to be plugged into the campaign than simply looking out for Obama's interest. Holman himself gives Obama credit for trying and wants no special treatment. "He's doing the best he can," Holman said of Obama's relationship with lobbyists. "He is turning his back on one of the most lucrative sources of campaign cash. I give him very high marks, even though he's still developing relationships with lobbyists because lobbyists tend to be well-networked. Obama has long recognized that lobbyists and campaign cash has a potentially corrupting influence over lawmakers."" [Roll Call, 5/23/07]

Obama Received A 25% Rating From The National Mining Association In 2005. The National Mining Association gave Barack Obama a 25% rating based on his voting record in the 109th Congress. The NMA rated eight votes during the 109th Congress, and Obama voted against the NMA on six of those votes. [National Mining Association Website, Accessed 11/15/07]