I 

108TH CONGRESS 

1ST SESSION H. R. 2869

To direct the Secretary of the Interior to sell certain public lands subject 

to mining operations in Eureka, Lander, White Pine, Elko, and Humboldt Counties, Nevada, for the reclamation of abandoned mines in Nevada, to promote and enhance economic development, education, and 

local government revenues, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2003

Mr. GIBBONS introduced the following bill; which was referred to the 

Committee on Resources 

A BILL

To direct the Secretary of the Interior to sell certain public 

lands subject to mining operations in Eureka, Lander, 

White Pine, Elko, and Humboldt Counties, Nevada, for 

the reclamation of abandoned mines in Nevada, to promote and enhance economic development, education, and 

local government revenues, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Northern Nevada 

5 Rural Economic Development and Land Consolidation Act 

6 of 2003’’. 
2

•HR 2869 IH 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—Congress finds as follows: 

3 (1) The economy of Nevada is dependent upon 

4 mining as a major source of high-paying jobs and 

5 other economic benefits. 

6 (2) Fifteen percent of employment in Eureka, 

7 Lander, White Pine, Elko, and Humboldt Counties 

8 in Nevada is directly provided by mining corpora9 tions, while nearly 50 percent of employment in 

10 those counties is a direct result of the mining indus11 try. 

12 (3) Citizens of northern Nevada counties would 

13 benefit through enhanced county services and 

14 schools from the increased private property tax base 

15 that would result from private ownership of the pub16 lic land subject to mining operations. 

17 (4) The Federal Government owns approxi18 mately 81 percent of the total area of Eureka, Land19 er, White Pine, Elko, and Humboldt Counties in Ne20 vada, and many mining operations in those counties 

21 are conducted on public lands subject to mining or 

22 mill site claims located and maintained under the 

23 general mining laws. 

24 (5) The general mining laws have historically 

25 allowed mining claimants to receive patents to their 

26 claims from the United States, and the public land 
3

•HR 2869 IH 

1 laws authorize land exchanges and direct sales as 

2 methods for mining companies to obtain security of 

3 tenure for their operations. 

4 (6) However, since 1994, Congress has placed 

5 moratoria on further processing of patent applica6 tions under the general mining laws, except for cer7 tain patent applications that were pending at the 

8 time of the first moratorium. 

9 (7) There is a severe backlog of land exchange 

10 and direct sale petitions in Nevada that has made it 

11 impossible for Nevada mine operators to obtain title 

12 in a timely manner to land subject to mining claims 

13 and mill site claims on which they conduct their op14 erations. 

15 (8) These circumstances have made it impos16 sible for two mining companies to achieve security of 

17 tenure in a reasonable time frame, creating economic 

18 uncertainty and disadvantages not only for these 

19 companies but also for Nevada local governments 

20 and Nevada citizens who benefit from the taxes paid 

21 and jobs provided by these and other companies, and 

22 from their long term commitment to continue oper23 ating and to further mineral exploration in Nevada. 

24 (9) The public lands addressed in this Act are 

25 difficult and uneconomic for the Bureau of Land 
4

•HR 2869 IH 

1 Management to manage and disposal of such lands 

2 will serve important public objectives, including eco3 nomic development and the maintenance of a long 

4 term tax base for northern Nevada counties. 

5 (10) The Bureau of Land Management has de6 termined that the public lands addressed in this Act 

7 are suitable for consolidation of ownership or dis8 posal into private ownership and the environmental, 

9 cultural, social, and economic impacts of mining op10 erations on the public lands subject to this Act have 

11 been evaluated in numerous studies conducted under 

12 the National Environmental Policy Act of 1969, the 

13 National Historic Preservation Act, and other laws. 

14 (11) The sale of the public lands would gen15 erate significant income to provide funds to complete 

16 rehabilitation of lands in the State of Nevada that 

17 were subject to mining activities conducted many 

18 decades ago. 

19 (12) Mining operations conducted on public 

20 lands sold under this Act would remain subject to 

21 applicable Federal and State environmental and 

22 safety laws. 

23 (13) These lands would be sold for market 

24 value, including a royalty on future production of 

25 minerals. 
5

•HR 2869 IH 

1 (b) PURPOSES.—The purposes of this Act are—

2 (1) to provide for the orderly and expeditious 

3 consolidation and disposal of certain public lands in 

4 Eureka, Lander, White Pine, Elko, and Humboldt 

5 Counties, Nevada; 

6 (2) to provide funds for rehabilitation of lands 

7 in Nevada that were subject to historic mining ac8 tivities; and 

9 (3) to provide funds for education and other 

10 purposes in the State of Nevada. 

11 SEC. 3. DEFINITIONS. 

12 In this Act: 

13 (1) CLAIMANT.—The term ‘‘Claimant’’ means 

14 Placer Dome U.S. Inc., any affiliate designated by 

15 Placer Dome U.S. Inc., or any successor; and 

16 Graymont Western U.S. Inc, and any affiliate des17 ignated by Graymont Western U.S. Inc, or any suc18 cessor. 

19 (2) COUNTIES.—The term ‘‘Counties’’ means 

20 the Nevada counties of Eureka, Lander, White Pine, 

21 Elko, and Humboldt, all located in the State of Ne22 vada. 

23 (3) DEPARTMENT.—The term ‘‘Department’’ 

24 means the Department of the Interior. 
6

•HR 2869 IH 

1 (4) MINING LAW.—The term ‘‘the general min2 ing laws’’ includes, in general, chapters 2 and 12A, 

3 and 16, sections 161 and 162, of title 30, U.S.C. 

4 (5) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of the Interior. 

6 SEC. 4. DISPOSAL OF LAND. 

7 (a) DISPOSAL.—

8 (1) IN GENERAL.—The Claimant shall have the 

9 right during the one year period commencing on the 

10 date of enactment of this Act to submit one or more 

11 applications to the Secretary to acquire all or any 

12 portion of the public lands depicted as ‘‘Selected 

13 Lands’’ on the maps identified in clauses (i) through 

14 (ii) of subsection (b)(1)(A). As soon as practicable 

15 after receipt of each such application, the Federal 

16 Land Policy and Management Act of 1976 (43 

17 U.S.C. 1701 et seq.) or any other law or executive 

18 order, except as specifically provided in this Act, 

19 subject to the acceptance by the Claimant and the 

20 Secretary of the appraisal and determinations to be 

21 made in accordance with paragraphs (2) and (3), 

22 the Secretary shall dispose of each parcel of public 

23 land, including minerals, described in subsection 

24 (b)(1)(A) by direct sale to the Claimant. The proce25 dures in section 206(d) of the Federal Land Policy 
7

•HR 2869 IH 

1 and Management Act (43 U.S.C. 1716(d)) shall 

2 apply to the appraisal and determinations made pur3 suant to this paragraph. 

4 (2) MARKET VALUE.—

5 (A) VALUE OF LAND.—The value of the 

6 public lands to be conveyed to Claimant and 

7 any private lands conveyed to the United States 

8 pursuant to this Act shall be the market value 

9 of the present interest of the grantor, as deter10 mined by the Secretary in accordance with an 

11 appraisal that complies with the Uniform Ap12 praisal Standards for Federal Land Acquisi13 tions and the relevant valuation provisions of 

14 the Federal Land Policy Management Act of 

15 1976 (43 U.S.C. 1701 et seq.). Such appraisal 

16 shall be conducted by a qualified professional 

17 appraiser certified by the Appraiser Qualifica18 tions Board of the Appraisal Foundation. 

19 (B) VALUE OF MINERALS.—

20 (i) The value of locatable minerals in 

21 public lands to be conveyed to the Claim22 ant that are subject to unpatented mining 

23 claims for which the Claimant dem24 onstrates the discovery of a valuable min25 eral deposit shall not be considered in the 
8

•HR 2869 IH 

1 appraisal or included in the market value 

2 of the grantor’s interest in these lands, as 

3 ownership and the right to develop these 

4 minerals are already vested in the Claim5 ant. In determining whether the Claimant 

6 has demonstrated the existence of a dis7 covery of a valuable mineral deposit, the 

8 Secretary shall apply the principles of the 

9 general mining laws, but shall not be re10 quired to conduct a formal validity exam11 ination. 

12 (ii) Because it would be difficult to 

13 determine accurately the value of locatable 

14 minerals in lands to be conveyed to the 

15 Claimant that are subject to unpatented 

16 mining or mill site claims for which the 

17 Claimant does not demonstrate the dis18 covery of a valuable mineral deposit, the 

19 present value of such minerals will not be 

20 considered in the appraisal or included in 

21 the market value of these lands. The 

22 United States shall be compensated for the 

23 value of any such minerals as provided in 

24 paragraph (3). 
9

•HR 2869 IH 

1 (3) ROYALTIES.—There shall be reserved in the 

2 conveyance of all public lands made pursuant to this 

3 Act, except lands subject to unpatented mining 

4 claims for which the Claimant demonstrates the dis5 covery of a valuable mineral deposit, a royalty pay6 able to the United States on locatable minerals. The 

7 rate of the reserved royalty shall be commensurate 

8 with the rate determined by the Secretary that is 

9 common and customary at the time of conveyance 

10 for royalties on locatable minerals reserved by pri11 vate parties on public and private lands in the region 

12 in which the lands are situated. 

13 (4) CREDIT FOR LANDS CONVEYED TO THE

14 UNITED STATES.—The Secretary shall accept from 

15 Claimant, subject to approval of title, a conveyance 

16 of any private lands identified in subsection 

17 (b)(1)(B) that Claimant offers to convey to the 

18 United States. Claimant shall receive a credit equal 

19 to the market value of any private lands conveyed to 

20 the United States pursuant to this section, which 

21 credit shall be applied against the cash consideration 

22 to be paid to the United States for the public lands 

23 conveyed to Claimant pursuant to this Act. 

24 (5) TIMING.—The Secretary shall—
10

•HR 2869 IH 

1 (A) with respect to each application made 

2 pursuant to paragraph (1) complete all nec3 essary appraisals, review and determine the va4 lidity of the assertions of the discovery of a val5 uable mineral deposit on lands on which the 

6 Claimant has made such an assertion, and de7 termine the appropriate royalty for public lands 

8 on which the Secretary determines that the 

9 Claimant has not demonstrated the existence of 

10 such a discovery, not later than 180 days after 

11 the date of submission of such application; and 

12 (B) convey the public lands to be conveyed 

13 to the Claimant not later than 60 days after the 

14 completion of the actions described in subpara15 graph (A). 

16 (6) INDEPENDENT TRANSACTIONS.—The public 

17 lands to be sold to Claimant under this Act may be 

18 included in one or more conveyances. 

19 (b) LAND DESCRIPTION.—

20 (1) IN GENERAL.—

21 (A) The public lands referred to in sub22 section (a)(1) are the lands depicted as ‘‘Se23 lected Lands’’ on the following maps: 
11

•HR 2869 IH 

1 (i) Northern Nevada Land Package 

2 For Placer Dome U.S. Inc.- Bald Mtn 

3 Mine - Selected Lands (Scale 1=2000); 

4 (ii) Northern Nevada Land Package 

5 For Placer Dome U.S. Inc.- Cortez Gold 

6 Mines - Offered and Selected Lands (Scale 

7 1=8000); 

8 (iii) Northern Nevada Land Package 

9 For Placer Dome U.S. Inc.- Getchell Mine 

10 - Selected Lands (Scale 1=4000); and 

11 (iv) Northern Nevada Land Package 

12 For Graymont Western U.S. Inc. - Pilot 

13 Mine - (Scale 1= 1000). 

14 (B) The private lands referred to in sub15 section (a)(3) are the lands depicted as ‘‘Of16 fered Lands’’ on the following map: Northern 

17 Nevada Land Package For Placer Dome U.S. 

18 Inc.-Cortez Gold Mines- Offered and Selected 

19 Lands (Scale 1=8000) 

20 (2) LOCATIONS OF MAPS.—The maps described 

21 in paragraph (1) shall be available for public inspec22 tion in the State Office of the Bureau of Land Man23 agement, 1340 Financial Boulevard, Reno, Nevada. 

24 (c) MISCELLANEOUS.—
12

•HR 2869 IH 

1 (1) INTERIM CONVEYANCES.—Lands to be con2 veyed by the United States pursuant to this Act 

3 which have not been surveyed, or with respect to 

4 which any boundary needs to be surveyed or resur5 veyed, shall be conveyed by an interim conveyance, 

6 which shall convey to and vest in the Claimant to 

7 which such lands are conveyed the same right, title, 

8 and interest in and to such lands as the Claimant 

9 would have received in a patent issued pursuant to 

10 this Act. Upon completion of any necessary survey 

11 or resurvey, the Secretary shall patent any lands 

12 previously conveyed by an interim conveyance. 

13 Where necessary as a result of the survey or resur14 vey of such lands, the boundary may be corrected in 

15 the patent. 

16 (2) SURVEYS.—Notwithstanding any other pro17 vision of law, the Secretary shall conduct and ap18 prove all cadastral surveys that are necessary for 

19 completion of each sale authorized and directed by 

20 this Act. In conducting such surveys, the Secretary 

21 is authorized to conduct perimeter surveys of contig22 uous blocks of public lands and convey such lands 

23 based on these surveys. Due to the lack of accurate 

24 and complete public land surveys in some portions of 

25 the public lands, the Secretary is authorized to use 
13

•HR 2869 IH 

1 existing Bureau of Land Management protraction 

2 diagrams and global positioning system survey tech3 niques to complete such surveys. The cost of any 

4 surveys shall be borne by the Claimant. 

5 (3) TECHNICAL CORRECTIONS.—Nothing in this 

6 Act shall prevent the parties affected thereby from 

7 mutually agreeing to the correction of technical er8 rors or omissions in the maps and legal descriptions 

9 referred to in subsection (b)(1). 

10 (4) VALID EXISTING RIGHTS.—All lands con11 veyed under this Act shall be subject to valid exist12 ing rights existing as of the date of transfer of title, 

13 and each party to which property is conveyed shall 

14 succeed to the rights and obligations of the con15 veying party with respect to any mining claim, mill 

16 site claim, lease, right-of-way, permit, or other valid 

17 existing right to which the property is subject. 

18 (5) ADMINISTRATION.—The Secretary is di19 rected to implement and administer all rights and 

20 obligations of the United States under this Act. 

21 SEC. 5. DISPOSITION OF PROCEEDS. 

22 Of the gross proceeds of sales of land under this Act 

23 in a fiscal year—

24 (1) 25 percent of all proceeds, including pro25 ceeds from royalties retained by the United States 
14

•HR 2869 IH 

1 pursuant to this Act, shall be paid directly to the 

2 State of Nevada for use in the general education 

3 program of the State; 

4 (2) 10 percent of the initial proceeds, including 

5 proceeds from royalties retained by the United 

6 States pursuant to this Act, shall be set aside in a 

7 trust fund managed by the Bureau of Land Manage8 ment for the operation of the California Trail Inter9 pretative Center located in Elko County, Nevada; 

10 (3) from the initial proceeds, excluding proceeds 

11 from royalties retained by the United States pursu12 ant to this Act, 100 percent of the costs incurred by 

13 the Nevada State Office and relevant Field Offices 

14 of the Bureau of Land Management in conducting 

15 sales under this Act shall be reimbursed; and 

16 (4) the remaining proceeds, including proceeds 

17 from royalties retained by the United States pursu18 ant to this Act, shall be used by the Nevada Division 

19 of Minerals and the Nevada Division of Environ20 mental Protection or its successor agencies in co21 operation with the Bureau of Land Management and 

22 Army Corp of Engineers, for the rehabilitation of 

23 lands in Nevada that were subject to historic mining 

24 activities.

Æ