The Bureau of Land Management is not doing enough to make sure hardrock mining companies pay for abandoned mine reclamation costs, the Government Accountability Office says.

In a new report, GAO found that 57 hardrock mining operations in nine Western states had not posted enough financial assurances to foot the bill for cleanup. That represents a $24 million shortfall, GAO says.

"American taxpayers should not be given the short end of the stick from a shortfall in mining cleanup funds," House Natural Resources ranking member Ed Markey (D-Mass.) said in a statement. "Mining companies should have to pay the costs of cleaning up their messes, and our government should make sure they are held accountable."

GAO looked into the issue at the request of Markey and Rep. Rush Holt (D-N.J.), the top Democrat on the Energy and Mineral Resources Subcommittee. They released the report this morning and sent BLM Director Bob Abbey a letter pressing for reform.

While BLM has made improvements, GAO faulted the agency for not doing enough to calculate and keep track of financial assurances. The report said only two state offices -- Montana and Wyoming -- implemented steps outlined in a 2009 instruction memorandum, including periodic reviews.

"Although some BLM state offices reported that they had not always succeeded in conducting reviews of financial assurances in a timely manner, or had not always secured adequate financial assurances," the report says, "they all had submitted a certification that included an action plan for addressing these deficiencies."

BLM has required financial assurances since 2001 from companies that mine metals and minerals on public land, just in case the government is left to foot the bill for reclamation. Current assurances total roughly $1.45 billion.

The National Mining Association notes that BLM has worked to reduce bonding shortfalls and that the program has a good record of success. In a statement, spokeswoman Carol Raulston said Markey was overestimating the significance of GAO's estimates.

"U.S. mines are committed to providing adequate financial assurance to successfully complete reclamation of mine sites," Raulston said. "Reclamation plans and the funds to carry out the terms and conditions stipulated in the plans are frequently updated."

Environmentalists have long pressed for more financial assurances from the mining industry. Reports that U.S. EPA is considering new requirements under the Superfund law have angered the mining industry and many supportive lawmakers (E&E Daily, March 9).

Click here to read the GAO report.