I

104TH CONGRESS

1ST SESSION H. R. 1580

To amend the general mining laws to provide a reasonable royalty from

mineral activities on Federal lands, to specify reclamation requirements

for mineral activities on Federal lands, to create a State program for

the reclamation of abandoned hard rock mining sites on Federal lands,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 9, 1995

Mr. YOUNG of Alaska (for himself, Mr. CALVERT, Mr. ORTON, Mrs. VUCANOVICH, Mr. CREMEANS, Mr. HAYWORTH, Mr. STUMP, Mr. SKEEN, Mr.

CRAPO, Mr. EMERSON, and Mr. SHADEGG) introduced the following bill;

which was referred to the Committee on Resources

A BILL

To amend the general mining laws to provide a reasonable

royalty from mineral activities on Federal lands, to specify reclamation requirements for mineral activities on

Federal lands, to create a State program for the reclamation of abandoned hard rock mining sites on Federal

lands, 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 ‘‘Mining Law Reform

5 Act of 1995’’.
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1 TITLE I—FINDINGS AND PURPOSE;

2 DEFINITIONS

3 SEC. 101. FINDINGS AND PURPOSE.

4 (a) FINDINGS.—Congress finds and declares that—

5 (1) a secure and reliable supply of locatable

6 minerals is essential to the industrial base of the

7 United States, national security, and balance of

8 trade;

9 (2) many of the deposits of locatable minerals

10 that may be commercially developed are on Federal

11 lands as that term is defined in this Act, and are

12 difficult and expensive to discover, mine, extract and

13 process;

14 (3) the national need for locatable minerals will

15 continue to expand, and without a strong mining in16 dustry the demand for the minerals will exceed do17 mestic sources of supply;

18 (4) mining of locatable minerals is an extremely

19 high-risk, capital-intensive endeavor, which, to at20 tract necessary investment, requires certainty and

21 predictability in access to Federal lands in establish22 ment of mining titles, and in the rights of owners of

23 mining claims or sites to develop minerals;

24 (5) it is the national interest to foster and en25 courage private enterprise in the development of a
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1 domestic minerals industry to maintain and create

2 high-paying jobs and the various Federal, State, and

3 local taxes paid by the mining industry in the Unit4 ed States;

5 (6) the diversity in terrain, climate, biological,

6 chemical, and other physical conditions, and vari7 ation among the locatable minerals mined and the

8 methods of mining and processing, require that rec9 lamation standards be tailored to local and regional

10 conditions;

11 (7) there are extensive Federal and State envi12 ronmental standards that apply to mining operations

13 on Federal lands, including State programs for the

14 protection of ground water quality;

15 (8) every State containing Federal lands has

16 enacted laws and regulations governing the reclama17 tion of mined lands and, subject to the supremacy

18 clause of the United States Constitution, these laws

19 and regulations, including financial assurance re20 quirements, apply to mineral activities on Federal

21 lands;

22 (9) changes in the general mining laws of the

23 United States to provide more direct economic re24 turn to the United States and greater protection of

25 public resources are desirable, so long as the
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1 changes do not act as a disincentive to development

2 of minerals, adversely affect employment in the min3 ing industry or in industries that provide goods and

4 services required for mining activities, interfere with

5 a secure and reliable domestic supply of minerals, or

6 adversely affect the balance of trade of the United

7 States; and

8 (10) mining claims, mill sites and tunnel sites

9 located under the general mining laws are property

10 interests, and any law or regulation that impairs ex11 isting property rights may expose the Federal Gov12 ernment to takings claims under the fifth amend13 ment to the United States Constitution.

14 (b) PURPOSE.—It is the purpose of this Act to—

15 (1) promote exploration for and the develop16 ment of a secure and reliable domestic source of

17 locatable minerals;

18 (2) provide for increased Federal revenue from

19 the location and production of locatable minerals

20 from Federal lands through fees, patent payments

21 and royalties;

22 (3) ensure that mineral activities on Federal

23 lands are conducted in compliance with all applicable

24 Federal and State environmental regulations and
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1 standards, including standards governing mind land

2 reclamation;

3 (4) ensure that all Federal lands affected by

4 mineral activities under the general mining laws are

5 reclaimed as required by applicable laws;

6 (5) establish a program to reclaim abandoned

7 locatable mine sites on Federal lands; and

8 (6) recognize that unpatented mining claims,

9 mill sites and tunnel sites are property rights in the

10 fullest sense and avoid, to the greatest extent pos11 sible, claims of takings of existing property rights

12 under the general mining laws that could require

13 compensation under the fifth amendment to the

14 United States Constitution.

15 SEC. 102. DEFINITIONS.

16 When used in this Act:

17 (1) ‘‘Assessment year’’ means the annual period

18 commencing at 12 o’clock noon on the 1st day of

19 September and ending at 12 o’clock noon on the 1st

20 day of September of the following year.

21 (2) ‘‘Federal lands’’ means, except as provided

22 otherwise in title III, lands and interest in lands

23 owned by the United States that are open to mineral

24 location, or that were open to mineral location when
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1 a mining claim or site was located and which have

2 not been patented under the general mining laws.

3 (3) ‘‘General mining laws’’ means those Acts

4 which generally comprise chapters 2, 11, 12, 12A,

5 15, and 16, and sections 161 and 162, of title 30

6 of the Untied States Code, all Acts heretofore en7 acted which are amendatory of or supplementary to

8 any of the foregoing Acts, and the judicial and ad9 ministrative decisions interpreting such Acts.

10 (4) ‘‘Locatable minerals’’ means those minerals

11 owned by the United States and subject to location

12 and disposition under the general minerals laws on

13 or after the effective date of this Act, but not includ14 ing any mineral held in trust by the United States

15 for any Indian or Indian tribe, as defined in section

16 2 of the Indian Mineral Development Act of 1982

17 (25 U.S.C. 2101), or any mineral owned by any In18 dian or Indian tribe, as defined in that section, that

19 is subject to a restriction against alienation imposed

20 by the United States, or any mineral owned by any

21 incorporated Native group, village corporation, or re22 gional corporation and acquired by the group or cor23 poration under the provisions of the Alaska Native

24 Claims Settlement Act (43 U.S.C. 1601 et seq.).
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1 (5) ‘‘Mineral activities’’ means any activity on

2 Federal lands related to, or incidental to, exploration

3 for or development, mining, production,

4 beneficiation, or processing of any locatable mineral,

5 or reclamation of the impacts of such activities.

6 (6) ‘‘Mining claim or site’’, except where pro7 vided otherwise, means a lode mining claim, placer

8 mining claim, mill site or tunnel site.

9 (7) ‘‘Operator’’ means any person conducting

10 mineral activities subject to this Act.

11 (8) ‘‘Person’’ means an individual, Indian tribe,

12 partnership, association, society, joint venture, joint

13 stock company, firm, company, limited liability com14 pany, corporation, cooperative or other organization,

15 and any instrumentality of State or local govern16 ment, including any publicly owned utility or publicly

17 owned corporation of State or local government.

18 (9) ‘‘Secretary’’ means (i) in titles II and V, the

19 Secretary of the Interior acting through the Bureau

20 of Land Management, (ii) in title IV, the Secretary

21 of Interior acting through the Bureau of Land Man22 agement or the Minerals Management Service, or

23 both, and (iii) elsewhere in this Act, the Secretary

24 of Agriculture, acting through the Forest Service,

25 with respect to lands under the jurisdiction of the
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1 Secretary of Agriculture, and the Secretary of the

2 Interior, acting through the Bureau of Land Man3 agement, with respect to all other land subject to the

4 requirements of this Act.

5 TITLE II—DISPOSITION OF LOCATABLE

6 MINERAL DEPOSITS

7 SEC. 201. CLAIM MAINTENANCE REQUIREMENTS.

8 (a) MAINTENANCE FEE.—After the date of enact9 ment of this Act, the owner of each unpatented mining

10 claim or site located pursuant to the general mining laws,

11 whether located before or after the enactment of this Act,

12 shall pay in advance to the Secretary annually on or before

13 September 1, and until a patent has been issued therefor,

14 a maintenance fee of $100 per mining claim or site. The

15 owner of each unpatented mining claim or site located

16 after the date of enactment of this Act pursuant to the

17 general mining laws shall pay to the Secretary, at the time

18 the copy of the notice or certificate of location is filed with

19 the Bureau of Land Management pursuant to section

20 314(b) of the Federal Land Policy and Management Act

21 of 1976 (43 U.S.C. 1744(b)), in addition to the location

22 fee required under subsection (f) of this section, an initial

23 maintenance fee of $100 per mining claim or site for the

24 assessment year which includes the date of location of

25 such mining claim or site. If a mining claim or site is lo-
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1 cated within 90 days before September 1 and the copy

2 of the notice or certificate of location is timely filed with

3 the Bureau of Land Management under subsection 314(b)

4 of the Federal Land Policy and Management Act of 1976

5 after September 1, the annual maintenance fee payable

6 under the first sentence of this subsection shall be paid

7 at the time such notice or certificate of location is filed,

8 in addition to the location fee and the initial $100 mainte9 nance fee. No maintenance fee shall be required if the fee

10 is waived or the owner of the mining claim or site is ex11 empt as provided in section 202 of this Act.

12 (b) ASSESSMENT WORK REQUIREMENTS.—

13 (1) For the first five assessment years following

14 the assessment year which includes the date of loca15 tion of any unpatented mining claim or site located

16 on or after the date of enactment of this Act, or for

17 the first five assessment years following the assess18 ment year which includes the date of enactment of

19 this Act for any unpatented mining claim or site lo20 cated before the date of enactment, the annual

21 maintenance fee under subsection (a) of this section

22 shall be in lieu of the assessment work requirements

23 of the general mining laws and of any other Federal

24 law. Beginning with the sixth assessment year fol25 lowing the assessment year which includes such date
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1 of location or enactment, such assessment work re2 quirements shall apply in addition to such annual

3 maintenance fee, subject to any suspension or

4 deferment of annual assessment work provided by

5 law.

6 (2)(A) Section 1 of the Act of September 2,

7 1958 (30 U.S.C. 28–1), is amended by inserting

8 ‘‘mineral activities, environmental baseline monitor9 ing, and’’ after ‘‘without being limited to’’ and be10 fore ‘‘geological, geochemical and geophysical sur11 veys’’.

12 (B) Section 2(d) of the Act of September 2,

13 1958 (30 U.S.C. 28–2(d)), is amended by inserting

14 ‘‘environmental baseline monitoring or’’ after ‘‘expe15 rience to conduct’’ and before ‘‘geological, geo16 chemical or geophysical surveys’’.

17 (C) Section 2 of the Act of September 2, 1958

18 (30 U.S.C. 28–2), is amended by adding at the end

19 of the following new subsection:

20 ‘‘(e) The term ‘environmental baseline monitoring’

21 means activities for collecting, reviewing and analyzing in22 formation concerning soil, vegetation, wildlife, mineral,

23 air, water, cultural, historical, archeological or other re24 sources related to planning for or complying with Federal

25 and State environmental or permitting requirements appli-
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1 cable to potential or proposed mineral activities on the

2 claim(s).’’.

3 (c) MAINTENANCE FEE STATEMENT.—Each pay4 ment under subsection (a) of this section shall be accom5 panied by a statement which reasonably identifies the min6 ing claim or site for which the maintenance fee is being

7 paid. Such statement may include the name of the mining

8 claim or site, the serial number assigned by the Secretary

9 to such mining claim or site, the description of the book

10 and page in which the notice or certificate of location for

11 such mining claim or site is recorded under State law, any

12 combination of the foregoing, or any other information

13 that reasonably identifies the mining claim or site for

14 which the maintenance fee is being paid. The statement

15 required under this subsection shall be in lieu of any an16 nual filing requirements for mining claims or sites, under

17 any other Federal law, but shall not supersede any such

18 filing requirement under applicable State law.

19 (d) EFFECT OF COMPLIANCE AS AGAINST SUBSE20 QUENT LOCATORS.—

21 (1) Except as provided in paragraph (d)(2) of

22 this subsection, after the date of enactment of this

23 Act, compliance with the requirements of this section

24 and sections 202 and 203 shall, from the time the

25 location notice or certificate is posted on the land
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1 under applicable State law, confer upon the owner of

2 any unpatented mining claim or site, whether lo3 cated before or after the date of enactment of this

4 Act, an exclusive right of possession, as against sub5 sequent locators, of the land included in such mining

6 claim or site for the purposes described in subsection

7 203(a). If more than one mining claim or site owned

8 or controlled by the same claim or site owner covers

9 substantially the same land, by reason of the loca10 tion of one or more mining claims or sites on such

11 land, the amendment or relocation of any such min12 ing claim or site, or otherwise, such exclusive right

13 of possession shall extend to all such mining claims

14 or sites, effective from the time the location notice

15 or certificate for the initial mining claim or site was

16 posted on such land under applicable State law. The

17 order of location, amendment, or relocation of any

18 such mining claims or sites on such land shall not

19 affect the validity of any such mining claim or site.

20 Such owner of the mining claim or site shall not be

21 required to be in actual, physical occupation of such

22 land and shall not be required to exclude rival loca23 tors from such land. Such exclusive right of posses24 sion shall be subject to applicable Federal law, in25 cluding the Multiple Mineral Development Act of
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1 1954 (30 U.S.C. 521–31), the Materials Act of 1947

2 (30 U.S.C. 601–604) and the Surface Resources Act

3 of 1955 (30 U.S.C. 611–15) to the extent applicable,

4 and shall neither enlarge nor diminish any rights of

5 such owner of the mining claim or site as against

6 the United States in such land. This paragraph shall

7 supersede the common law doctrine of pedis

8 possessio.

9 (2) Conflicts over the right of exclusive posses10 sion of land included in any mining claim or site

11 shall be determined in proceedings between owners

12 of mining claims or sites under the provisions of sec13 tion 910 of the Revised Statutes (30 U.S.C. 53) and

14 other applicable law, including but not limited to the

15 following:

16 (A) Any conflict based upon circumstances

17 existing as of the date of enactment of this Act

18 between mining claims or sites located before

19 the date of enactment of this Act, which shall

20 be resolved under the law in effect on the day

21 prior to the date of enactment of this Act, in22 cluding the common law doctrine of pedis

23 possessio.

24 (B) Any conflict arising on or after the

25 date of enactment of this Act between mining
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1 claims or sites located before, on or after the

2 date of enactment over whether either owner of

3 the mining claim or site has complied with the

4 requirements of this section or sections 202 or

5 203(a), which shall be resolved under this Act.

6 (e) FAILURE OF CO-OWNER TO CONTRIBUTE.—

7 Upon the failure of any one or more of several co-owners

8 of any mining claim or site to contribute such co-owner

9 or owners’ portion of the location or maintenance fee

10 under this section, any co-owner who has paid such fee

11 may, after the payment due date, serve the delinquent co12 owner or owners with notice of such failure in writing or,

13 if such delinquent co-owner or owners cannot be located

14 after reasonable efforts, by publication in a general cir15 culation newspaper published in a location nearest the

16 mining claim or site at least once a week for at least 90

17 days. If at the expiration of 90 days after such notice in

18 writing or by publication, any delinquent co-owner fails or

19 refuses to contribute the owed portion, such co-owner or

20 owners’ interest shall become the property of the owner

21 or co-owners who have paid the required fee.

22 (f) LOCATION FEE.—The owner of each unpatented

23 mining claim or site located on or after the date of enact24 ment of this Act pursuant to the general mining laws shall

25 pay to the Secretary, at the time the notice or certificate
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1 of location is filed with the Bureau of Land Management

2 pursuant to subsection 314(b) of the Federal Land Policy

3 and Management Act of 1976 (43 U.S.C. 1744(b)), a loca4 tion fee of $25.00 per claim.

5 (g) CREDIT AGAINST ROYALTY.—The annual claim

6 maintenance fee paid for any unpatented mining claim or

7 site on or before September 1 or any year shall be credited

8 against the amount of royalty required to be paid under

9 title IV for such mining claim or site during the following

10 assessment year.

11 (h) FEE ADJUSTMENTS AND DISPOSITION.—

12 (1) At the end of each period of five assessment

13 years after the date of enactment of this Act, the

14 Secretary shall adjust the maintenance fee and the

15 location fee required by this section by an amount

16 equal to the net adjustment in the implicit price

17 deflator for the gross national product established by

18 the United States Department of Commerce over the

19 preceding five year period, rounded up or down to

20 the nearest dollar.

21 (2) The Secretary shall provide owners of min22 ing claims or sites with notice by publication in the

23 Federal Register of any adjustment made under

24 paragraph (1) not later than January 1 of any as25 sessment year in which the adjustment is made.
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1 (3) A fee adjustment under paragraph (1) shall

2 apply to the payment due for the next assessment

3 year after the assessment year in which notice is

4 given under paragraph (2).

5 (4) All maintenance and location fees received

6 by the Secretary under this section shall be paid into

7 the Treasury of the United States and be subject to

8 the provision of title I of Public Law 100–446, 102

9 Stat. 1774 (43 U.S.C. 1474) making receipts avail10 able for use by the Secretary for program operations

11 in Mining Law Administration.

12 (i) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE13 NANCE FEE UNDER ENERGY POLICY ACT OF 1992.—

14 This section shall not apply to any oil shale claims for

15 which a fee is required to be paid under paragraph

16 2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C.

17 242(e)(2)).

18 (j) FAILURE TO COMPLY.—The failure of the owner

19 of the mining claim or site to pay the claim maintenance

20 fee or location fee for a mining claim or site on or before

21 the date such payment is due under subsection (a) or sub22 section (f) of this section shall constitute forfeiture of the

23 mining claim or site and such mining claim or site shall

24 be null and void, effective as of the day after the date

25 such payment is due: Provided, however, That, if such
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1 maintenance fee or location fee is paid or tendered on or

2 before the 30th day after such payment was due under

3 subsection (a) or subsection (f) of this section, such min4 ing claim or site shall not be forfeited or null or void, and

5 such maintenance fee or location fee shall be deemed time6 ly paid.

7 (k) REPEAL OF OMNIBUS BUDGET RECONCILIATION

8 ACT FEE REQUIREMENTS.—Sections 10101 through

9 10106 of the Omnibus Budget Reconciliation Act of 1993

10 (30 U.S.C. 28f through 28k) are hereby repealed.

11 (l) CONFORMING AMENDMENT.—The third sentence

12 of section 2324 of the Revised Statutes (30 U.S.C. 28)

13 is amended by adding the words ‘‘Except as provided in

14 paragraph 201(b)(1) of The Mining Law Reform Act of

15 1995,’’ at the beginning of such sentence and deleting the

16 words ‘‘that is granted a waiver under section 10101 of

17 the Omnibus Budget Reconciliation Act of 1993,’’.

18 (m) AMENDMENT OF FLPMA FILING REQUIRE19 MENTS.—

20 (1) Section 314(a) of the Federal Land Policy

21 and Management Act of 1976 (43 U.S.C. 1744(a))

22 is hereby repealed.

23 (2) Section 314(c) of the Federal Land Policy

24 and Management Act of 1976 (43 U.S.C. 1744(c))

25 is amended to read as follows:
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1 ‘‘(c) FAILURE TO FILE AS CONSTITUTING FORFEIT2 URE; DEFECTIVE OR UNTIMELY FILING.—The failure to

3 timely file the copy of the notice or certificate of location

4 as required by subsection (b) shall constitute forfeiture of

5 the mining claim and such claim shall be null and void

6 by operation of law: Provided, however, That it shall not

7 be considered a failure to file if the notice or certificate

8 of location is defective or not timely filed for record under

9 other State or Federal laws permitting or requiring the

10 filing or recording thereof, or if the copy of the notice or

11 certificate is filed by or on behalf of some but not all of

12 the owners of the claim.’’.

13 SEC. 202. WAIVER AND EXEMPTION.

14 (a) WAIVER OF FEE.—The maintenance fee provided

15 for in subsection 201(a) shall be waived for the owner of

16 a mining claim or site who certifies in writing to the Sec17 retary, on or before the date the payment is due, that,

18 as of the date such payment is due, such owner and all

19 related persons own not more than twenty-five unpatented

20 mining claims or sites. Any owner of a mining claim or

21 site that is not required to pay a maintenance fee under

22 this subsection shall continue to be subject to the assess23 ment work requirements of the general mining laws or of

24 any other State or Federal law, subject to any suspension

25 or deferment of annual assessment work provided by law,
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1 for the assessment year following the filing of the certifi2 cation, and paragraph 201(b)(1) of this Act shall not

3 apply.

4 (b) RELATED PERSONS.—As used in subsection (a),

5 the term ‘‘related persons’’ includes—

6 (1) the spouse and dependent children (as de7 fined in section 152 of the Internal Revenue Code of

8 1986), of the owner of the mining claim or site; and

9 (2) a person controlled by, controlling, or under

10 common control with the owner of the mining claim

11 or site.

12 (c) EXEMPTION.—The owner of any mining claim or

13 site who certifies in writing to the Secretary on or before

14 the first day of any assessment year that access to such

15 mining claim or site was denied or impeded during the

16 prior assessment year by the action or inaction of any

17 local, State, or Federal governmental officer, agency, or

18 court, or by any Indian tribal authority, shall be exempt

19 from the maintenance fee and assessment work require20 ments of subsections (a) and (b) of section 201 for the

21 assessment year following the filing of the certification.

22 SEC. 203. GOOD FAITH REQUIREMENT; RESIDENTIAL OCCU23 PANCY; DIVESTMENT AND REVERTER.

24 (a) GOOD FAITH HOLDING OF MINING CLAIM OR

25 SITE.—The location, maintenance, and use of an
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1 unpatented mining claim or site, whether located before

2 or after enactment of this Act, shall be for the purpose

3 of conducting mineral activities in good faith.

4 (b) RESIDENTIAL OCCUPANCY.—The Secretary shall

5 not prohibit residential occupancy of an unpatented min6 ing claim or site and shall not require removal of equip7 ment or facilities until mineral activities are completed,

8 if such occupancy is shown in a notice of intent or plan

9 of operations to be reasonably required to accomplish the

10 mineral activities described therein.

11 (c) REVERTER.—(1) Land patented under Section

12 204(a) shall revert to the United States if—

13 (A) the land is used for a purpose that is not

14 authorized under subsection (a);

15 (B) the unauthorized use is not discontinued

16 within a time period specified by the Secretary (but

17 not earlier than 90 days after the Secretary provides

18 the owner of the land with written notice pursuant

19 to paragraph (2) to discontinue the unapproved

20 use); and

21 (C) the Secretary elects to enforce the rever22 sionary interest in accordance with paragraph (2).

23 (2) The reversion under paragraph (1) shall take ef24 fect if—
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1 (A) the Secretary files a declaration of reversion

2 in the office of the Bureau of Land Management

3 designated by the Secretary of the Interior;

4 (B) the Secretary records the declaration in the

5 office of the county recorder of the county in which

6 the lands subject to a reversion are situated; and

7 (C) not later than 30 days after recording the

8 declaration of reversion, the Secretary serves on the

9 owner of the land subject to reversion a recorded

10 copy of the declaration, the same manner that a

11 summons and complaint are served under the Fed12 eral Rules of Civil Procedure, and delivers payment

13 for fair market value of the surface interest at the

14 time of the reverter.

15 (3) The Secretary may renounce a reversion by filing

16 and recording a declaration of renouncement in the same

17 offices in which a declaration of reversion would have been

18 filed under paragraph (2). The Secretary may renounce

19 a reversion for any reason, including a case in which—

20 (A) a portion of the lands included in the pat21 ent have been used for solid waste disposal or for

22 any other purpose that may result in the disposal,

23 placement, or release of a hazardous substance;

24 (B) continuance of the reverter serves no public

25 purpose; or
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1 (C) it would not be in the best interest of the

2 United States to exercise the reverter.

3 (4) Each patent to land acquired under section 2325,

4 2333, or 2337 of the Revised Statutes (30 U.S.C. 29, 37

5 or 42) that is subject to the limitations of this subsection

6 shall so state.

7 (d) REPEAL OF PATENTING MORATORIUM; PROCESS8 ING OF PATENT APPLICATIONS.—

9 (1) Sections 112 and 113 of Public Law 103–

10 332 are hereby repealed. The Secretary shall dili11 gently process all applications for patent and shall

12 make determinations for all such applications re13 garding patent issuance as expeditiously as possible.

14 (2) The provisions of this Act shall not apply

15 to any mining or mill site claim (A) for which a pat16 ent application was filed with the Secretary on or

17 before May 9, 1995.

18 TITLE III—SURFACE MANAGEMENT OF

19 MINERAL ACTIVITIES

20 SEC. 301. PURPOSE; APPLICABILITY; OPERATING AND REC21 LAMATION STANDARDS.

22 (a) PURPOSE.—It is the purpose of this title to pro23 vide for mineral entry, exploration, location and operations

24 pursuant to the general mining laws in a manner that will

25 not unduly hinder such activities or diminish rights, in-
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1 cluding but not limited to all statutory and common law

2 rights of access, obtained under the general mining laws

3 or other authorities, but will assure that such activities

4 are conducted in a manner that will prevent unnecessary

5 and undue degradation of nonmineral surface resources on

6 Federal lands. Compliance with the provisions of this title

7 shall constitute compliance with: (i) the final sentence of

8 subsection 302(b) of the Federal Land Policy and Man9 agement Act (43 U.S.C. 1732(b)); and (ii) any standard

10 related to the management of surface resources within the

11 National Forest System contained in or derived from the

12 Organic Administration Act (16 U.S.C. 473 et seq.), the

13 Multiple-Use Sustained-Yield Act of 1960 (16 U.S.C. 528

14 et seq.), the Forest and Rangeland Renewable Resources

15 Planning Act of 1974 (16 U.S.C. 1601 et seq.), or any

16 other law applicable to Federal lands subject to this title

17 within the National Forest System.

18 (b) APPLICABILITY.—This title shall apply only to

19 mineral activities on those Federal lands where the surface

20 estate is managed by the Bureau of Land Management

21 or the United States Forest Service.

22 (c) OPERATIONS.—All mineral activities on Federal

23 lands shall be conducted so as to prevent unnecessary and

24 undue degradation of Federal lands by complying with ap-
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1 plicable requirements of Federal and State environmental

2 protection laws, including but not limited to—

3 (1) the Atomic Energy Act of 1954 (42 U.S.C.

4 2011 et seq.);

5 (2) the Clean Air Act (42 U.S.C. 7401 et seq.);

6 (3) the Comprehensive Environmental Re7 sponse, Compensation, and Liability Act of 1980 (42

8 U.S.C. 9601 et seq.);

9 (4) the Endangered Species Act of 1973 (16

10 U.S.C. 1531 et seq.);

11 (5) the Federal Land Policy and Management

12 Act of 1976 (43 U.S.C. 1701 et seq.);

13 (6) the Federal Mine Safety and Health Act of

14 1977 (30 U.S.C. 801 et seq.);

15 (7) the Federal Water Pollution Control Act

16 (commonly referred to as the ‘‘Clean Water Act’’)

17 (33 U.S.C. 1251 et seq.);

18 (8) the Forest and Rangeland Renewable Re19 sources Planning Act of 1974 (16 U.S.C. 1600 et

20 seq.);

21 (9) the Migratory Bird Treaty Act (16 U.S.C.

22 703 et seq.);

23 (10) the National Environmental Policy Act of

24 1969 (42 U.S.C. 4321 et seq.);
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1 (11) the National Historic Preservation Act (16

2 U.S.C. 470 et seq.);

3 (12) title XIV of the Public Health Service Act

4 (commonly referred to as the ‘‘Safe Drinking Water

5 Act’’) (42 U.S.C. 300f et seq.);

6 (13) the Solid Waste Disposal Act (42 U.S.C.

7 6901 et seq.);

8 (14) the Toxic Substances Control Act (15

9 U.S.C. 2601 et seq.); and

10 (15) the Uranium Mill Tailings Radiation Con11 trol Act of 1978 (42 U.S.C. 7901 et seq.).

12 (d) RECLAMATION.—In order to prevent unnecessary

13 and undue degradation of surface resources, Federal lands

14 disturbed by mineral activities shall be reclaimed, to the

15 extent economically and technically practicable, in compli16 ance with the provisions of subsection 304(a).

17 (e) DESIGNATED LANDS.—Where any mineral activi18 ties are to be conducted on Federal lands administered

19 by the Bureau of Land Management or the Forest Service

20 specifically designated by any special Act of Congress that

21 applies a specific land management, resource protection

22 or reclamation standard (such as wild and scenic rivers

23 and designated wilderness) to such lands, such manage24 ment or protection standard shall apply to the extent of

25 any conflict with the provisions of this title.
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1 SEC. 302. AUTHORIZATION FOR MINERAL ACTIVITIES.

2 (a) IN GENERAL.—Except as otherwise provided in

3 subsections (b) and (c) of this section, no person may en4 gage in mineral activities on Federal lands unless that per5 son has filed a plan of operations with, and received ap6 proval of the plan from, the Secretary in accordance with

7 section 303.

8 (b) NOTICE REQUIRED.—

9 (1) A person may engage in mineral activities

10 on Federal lands that cause only minor, short term,

11 readily reclaimable impacts on surface resources, in12 cluding but not limited to initial exploratory test

13 hole drilling and road construction, only after filing

14 with the Secretary a notice of intent to conduct such

15 activities.

16 (2) Such notice shall include—

17 (A) the name and mailing address of the

18 operator;

19 (B) when applicable, the name of the min20 ing claim(s) or site(s), and serial number(s) as21 signed to the mining claims(s) or site(s) on

22 which mineral activities are proposed;

23 (C) a statement describing the activities

24 proposed and their location in sufficient detail

25 to locate the operations on the ground, and giv26 ing the approximate date when activities will
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1 begin. The statement shall include a description

2 and the location of any access routes to be con3 structed or improved and the type of equipment

4 to be used in their construction;

5 (D) a statement that reclamation of all

6 areas will be completed as required by sub7 section 301(d), and that mineral activities will

8 comply with the operations standard as re9 quired by subsection 301(c); and

10 (E) evidence of financial assurance as re11 quired by section 306.

12 (3) Failure of the operator to conduct mineral

13 activities in conformance with the notice and the re14 quirements of this title may cause the operator to be

15 subject to enforcement pursuant to section 308.

16 (4) The Secretary shall review the notice within

17 30 days of receipt. If the Secretary determines that

18 the proposed mineral activities will, or are likely to

19 cause more than minor, short term, readily reclaim20 able impacts on surface resources, the Secretary

21 shall provide a statement of reasons explaining why

22 the mineral activities cannot proceed under notice

23 and shall require in writing that the operator submit

24 a proposed plan of operations in accordance with the

25 requirements of this section. Failure of the Sec-
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1 retary to respond in writing within 30 days of re2 ceipt of the notice shall be deemed to be approval

3 of the mineral activities proposed in the notice.

4 (5) The Secretary shall establish by regulation

5 from time to time additional categories of mineral

6 activities which may be conducted under notice

7 based on the amount of surface to be disturbed, the

8 type of equipment to be used, the time required for

9 reclamation, and other relevant factors.

10 (c) OTHER MINERAL ACTIVITIES.—Notwithstanding

11 the provisions of subsections (a) and (b), any person may

12 conduct mineral activities on Federal lands which cause

13 only a minimal disturbance of surface resources, including

14 but not limited to claim location; exploration; geological,

15 geophysical or geochemical surveys; environmental base16 line monitoring; activities related to the gathering of data

17 related to the preparation or analysis of a notice or plan

18 of operations under this title, or required under any other

19 applicable Federal or State environmental law or regula20 tion; and other activities designated by the Secretary,

21 without filing a notice or plan of operations with the Sec22 retary.

23 (d) TRANSFER OF RIGHTS.—An operator may trans24 fer, assign or sell any rights associated with a notice with25 out approval by the Secretary: Provided, That the succes-
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1 sor in interest agrees in writing to assume the liabilities

2 and reclamation responsibilities established under sub3 section (b) and provide evidence of financial assurance as

4 required under section 306. The transfer, assignment or

5 sale shall not become effective prior to the filing of such

6 writing and evidence of financial assurance with the Sec7 retary. The financial assurance of the transferee shall be

8 substituted for the assurance previously submitted by the

9 transferor and the financial assurance of the transferor

10 shall be fully released.

11 SEC. 303. PLAN OF OPERATIONS; CONTENT, REVIEW AND

12 APPROVAL.

13 (a) PLAN OF OPERATIONS REQUIREMENTS.—A plan

14 of operations required under this title shall contain—

15 (1) the name and mailing address of the opera16 tor;

17 (2) when applicable, the name of the mining

18 claim(s) or site(s), and serial number(s) assigned to

19 the mining claim(s) or site(s) on which mineral ac20 tivities are proposed;

21 (3) a general description of the mineral activi22 ties proposed, including the anticipated periods dur23 ing which the proposed mineral activities will occur;

24 (4) a map showing existing and/or proposed

25 routes of surface access, or other means of access,
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1 and identifying areas where surface disturbance will

2 occur;

3 (5) information describing the land and water

4 resources of the area expected to be disturbed by the

5 proposed mineral activities and any proposed mitiga6 tion measures necessary to comply with the require7 ments of this title;

8 (6) a reclamation plan which includes proposed

9 measures to reclaim Federal lands disturbed by the

10 proposed mineral activities as required under sub11 section 301(d);

12 (7) evidence of adequate financial assurance as

13 required under section 306; and

14 (8) a monitoring plan to assure compliance with

15 the requirements of the plan of operations.

16 (b) PLAN OF OPERATIONS REVIEW.—A proposed

17 plan of operations shall be submitted to the Secretary, who

18 shall promptly acknowledge receipt thereof to the opera19 tor. The Secretary shall promptly review the proposed plan

20 of operations and shall notify the operator within 30

21 days—

22 (1) that the plan of operations has been ap23 proved as submitted;
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1 (2) of all changes in, or additions to the pro2 posed plan of operations necessary to comply with

3 the requirements of this title; or

4 (3) that a specified reasonable amount of time

5 is necessary to complete the review, setting forth the

6 circumstances which justify the additional time.

7 (c) MINERAL ACTIVITIES PENDING REVIEW.—Any

8 operator who has submitted a plan of operations under

9 this section may continue to conduct mineral activities

10 otherwise authorized pursuant to subsections (b) and (c)

11 of section 302 within the geographic area covered by the

12 proposed plan of operations pending its approval.

13 (d) PLAN OF OPERATIONS APPROVAL.—(1) The Sec14 retary shall approve a proposed plan of operations within

15 a reasonable period of time if—

16 (A) the proposed plan of operations substan17 tially complies with the requirements of this title;

18 and

19 (B) the applicant has complied with the re20 quirements of section 306 concerning financial as21 surance.

22 (2) If, after review, the Secretary determines that a

23 proposed plan of operations will not substantially comply

24 with the requirements of this title, the Secretary shall

25 specify all deficiencies in the proposed plan, shall request
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1 the operator to modify the proposed plan to comply with

2 the requirements of this title and shall specify all nec3 essary modifications to the proposed plan.

4 (e) MODIFICATIONS TO AN APPROVED PLAN OF OP5 ERATIONS.—

6 (1) MINOR MODIFICATIONS.—At any time dur7 ing which mineral activities are being conducted

8 under an approved plan of operations, an operator

9 may make minor modifications to the approved plan

10 of operations by notifying the Secretary. Failure of

11 the Secretary to respond in writing within 30 days

12 of receipt of the proposed minor modification shall

13 be deemed to be approval of the minor modification.

14 For purposes of this title, a ‘‘minor modification’’ is

15 a change to the approved plan of operations that is

16 not likely to result in significant impacts to surface

17 resources different from those previously considered

18 in the approved plan of operations.

19 (2) REVIEW OF MINOR MODIFICATIONS.—If the

20 Secretary determines that a proposed minor modi21 fication may be significant, the Secretary shall pro22 vide a statement of reasons and may require the op23 erator to submit a significant modification to the

24 plan of operations pursuant to paragraph (3) of this

25 subsection.
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1 (3) SIGNIFICANT MODIFICATION.—At any time

2 during activities under an approved plan of oper3 ations, the operator may propose a significant modi4 fication to the approved plan of operations. A sig5 nificant modification must be submitted, reviewed

6 and approved in the same manner as a plan of oper7 ations under this section, except that the modifica8 tion need not include information required under

9 subsection 303(a) if the modification requires no

10 change to such information: Provided, however, That

11 approval of such modification shall neither require

12 nor be denied or conditioned upon retrofit, redesign,

13 reconstruction, closure or change in the operation of

14 any facility, structure or mineral activity previously

15 approved. For purposes of this title, a ‘‘significant

16 modification’’ is a change to the approved plan of

17 operations which is likely to result in significant im18 pacts to surface resources different from those pre19 viously considered in the approved plan of oper20 ations.

21 (4) REQUEST BY SECRETARY.—At any time

22 during which mineral activities are being conducted

23 under an approved plan of operations, the Secretary

24 may request that an operator submit a modification

25 to the approved plan of operations together with a
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1 written determination that such modification is nec2 essary to prevent unnecessary and undue degrada3 tion of Federal lands as required by section 301.

4 The Secretary’s determination that a modification is

5 necessary shall be subject to notice to the operator

6 and a right to a hearing at the request of the opera7 tor. If the Secretary has requested a modification

8 under this paragraph, mineral activities may con9 tinue in accordance with the approved plan of oper10 ations until the modification is submitted, reviewed,

11 and approved.

12 (f) TERM.—An approved plan of operations shall re13 main in effect as approved until the mineral activities sub14 ject to the approved plan of operations are completed or

15 until the plan of operations is modified.

16 (g) TRANSFER OF RIGHTS.—An operator may trans17 fer, assign, or sell any rights associated with an approved

18 plan of operations without approval by the Secretary: Pro19 vided, That the successor in interest agrees in writing to

20 assume the liabilities and reclamation responsibilities es21 tablished by the approved plan of operations and provide

22 evidence of financial assurance as required under section

23 306. The transfer, assignment, or sale shall not become

24 effective prior to the filing of such writing and evidence

25 of financial assurance with the Secretary. The financial
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1 assurance of the transferee shall be substituted for the as2 surance previously submitted by the transferor, and the

3 financial assurance of the transferor shall be fully re4 leased.

5 SEC. 304. RECLAMATION PLAN.

6 A reclamation plan submitted with a proposed plan

7 of operations pursuant to section 303 shall include appro8 priate measures to comply with substantive reclamation

9 requirements of the State in which the proposed mineral

10 activities will be located to the extent that those require11 ments are not in conflict with the purposes of the general

12 mining laws and this Act, and the applicable provisions

13 of State and Federal environmental protection laws, in14 cluding those Federal laws listed in subsection 301(c). A

15 proposed reclamation plan that complies with such State

16 and Federal requirements shall be deemed sufficient to

17 prevent unnecessary and undue degradation and to comply

18 with subsection 301(d), and certification or other approval

19 issued by a State or Federal agency of compliance with

20 such laws shall be deemed compliance with this section.

21 SEC. 305. TRANSITION RULES.

22 (a) APPLICABILITY TO EXISTING OPERATIONS.—

23 Mineral activities for which an operator is authorized to

24 proceed under notice or for which a plan of operations has

25 been approved prior to the date of enactment of this Act
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1 shall continue under the terms and conditions of such no2 tice or plan. Notices which were filed within 30 days of

3 the effective date of enactment, and plans of operations

4 which have been submitted before but not approved on the

5 date of enactment of this Act, shall be reviewed based on

6 the law existing on the day prior to the date of enactment

7 of this Act. Significant modifications to approved plans

8 of operations shall be submitted, reviewed, and approved

9 pursuant to the applicable requirements of this title: Pro10 vided, however, That approval of such modifications shall

11 neither require nor be conditioned upon retrofit, redesign,

12 reconstruction or change in the operation of any facility,

13 structure or mineral activity previously approved.

14 (b) FINANCIAL ASSURANCE AND ENFORCEMENT.—

15 Notwithstanding the provisions of subsection (a), the en16 forcement provisions of section 308 shall apply to all min17 eral activities on the effective date of this Act and, within

18 one year after the effective date of this Act, all operators

19 operating under notice or a plan of operations shall submit

20 to the Secretary evidence of adequate financial assurance

21 as may be required under section 306.

22 SEC. 306. FINANCIAL ASSURANCE.

23 (a) EVIDENCE OF FINANCIAL ASSURANCE.—(1)

24 Prior to the commencement of any mineral activities re25 quiring a plan of operations, an operator shall furnish evi-
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1 dence to the Secretary of a bond, surety, self-insurance

2 or other financial assurance (including the use of bonding

3 pools or a financial assurance instrument posted with a

4 State or another Federal agency) in an amount sufficient

5 to cover the reasonably estimated cost to complete rec6 lamation as required by the plan of operations.

7 (2)(A) Prior to conducting notice activities subject to

8 subsection 302(b), the operator shall comply with the fi9 nancial assurance requirements promulgated by the Sec10 retary applicable to such notice activities. Such require11 ments shall allow operators or owners of mining claims

12 or sites to use bonding pools to statewide or nationwide

13 bonds. Statewide or nationwide bonds shall be in amounts

14 fixed by regulation that cover notice activities at multiple

15 locations statewide or nationwide, as appropriate.

16 (B) For such notice activities conducted between the

17 date of enactment of this Act and the effective date of

18 such regulations, the operator or owner of the mining

19 claim or site shall provide evidence of financial assurance,

20 in the form and manner authorized by the Secretary’s reg21 ulations in effect on the date of enactment of this Act,

22 in an amount sufficient to cover the reasonably estimated

23 cost of reclamation required as a result of such notice ac24 tivities.
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1 (b) REVIEW AND ADJUSTMENT.—Not later than five

2 years after the financial assurance is provided, and each

3 five years thereafter, or at the request of the operator,

4 the Secretary shall review its adequacy and may increase

5 or decrease the amount of the financial assurance based

6 upon changed circumstances, including a determination by

7 the Secretary that a portion of the reclamation has been

8 completed.

9 (c) FINANCIAL ASSURANCE FOR INCREMENTS.—Fi10 nancial assurance for increments of mineral activities may

11 be authorized if the financial assurance for an increment

12 covers all reclamation costs within the area covered by the

13 notice or plan of operations for that increment. After rec14 lamation is completed, an operator may apply for, and the

15 Secretary may grant, release of the financial assurance for

16 the completed increment.

17 SEC. 307. FEDERAL AND STATE AUTHORITY AND COOPERA18 TION.

19 (a) COOPERATIVE AGREEMENTS.—

20 (1) Upon request from a State, the Secretary

21 shall enter into a cooperative agreement with that

22 State for joint administration of the requirements of

23 this title relating to mineral activities requiring a no24 tice or plan of operations, financial assurances, rec25 lamation, inspection and enforcement if the Sec-
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1 retary determines in writing that such State has the

2 capability to implement the agreement in a manner

3 consistent with the purposes of this title. A coopera4 tive agreement may cover (i) some or all of the re5 sponsibilities enumerated in this paragraph, and (ii)

6 some or all mineral activities on Federal land within

7 a State.

8 (2) Under a cooperative agreement, a State and

9 the Secretary may jointly administer mineral activi10 ties on Federal lands. The State and the Secretary

11 shall make an independent and timely decision re12 garding individual plans of operation under this

13 title, but in no event shall the State’s authority

14 under applicable Federal environmental protection

15 statutes be restricted.

16 (3) Under a cooperative agreement, the State

17 may conduct inspections and monitoring activities,

18 and take enforcement actions deemed necessary to

19 determine or require compliance with the require20 ments of this Act, other than recommending civil ac21 tions under section 308. The Secretary may not take

22 enforcement action where a State under a coopera23 tive agreement already has initiated appropriate en24 forcement action unless the State requests that the
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1 Secretary recommend initiation of a civil action

2 under section 308.

3 (4) Under a cooperative agreement, the finan4 cial assurance sufficient to cover reclamation of Fed5 eral lands shall be calculated based on the comple6 tion of both the Federal and State reclamation re7 quirements, and may be held as one bond. The fi8 nancial assurance shall be approved by both the Sec9 retary and the State prior to approval of a plan of

10 operations, and the Secretary and the State may

11 agree that the financial assurance may not be re12 leased without Federal and State concurrence. Fi13 nancial assurance that duplicates financial assurance

14 required under other State or Federal law shall not

15 be required under this title.

16 (5) if a cooperative agreement is entered into

17 pursuant to this section, the Secretary shall, subject

18 to appropriations, reimburse the State for its regu19 latory costs in an amount approximating, but not ex20 ceeding, the reasonably estimated amount the Sec21 retary would have reasonably expended absent a co22 operative agreement.

23 (6) Each cooperative agreement entered into

24 pursuant to this section shall provide that (i) the

25 Secretary shall take appropriate action, including
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1 termination of the agreement, upon a determination

2 that State performance under the agreement is not

3 in substantial compliance with the agreement or the

4 requirements of this title, and (ii) prior to taking

5 any such action, the Secretary shall provide notice to

6 the State allowing the State a reasonable time to

7 come into substantial compliance.

8 (b) EXISTING AGREEMENTS.—Any cooperative

9 agreement or memorandum of understanding between the

10 Secretary and any State related to the surface manage11 ment of mineral activities on Federal lands subject to this

12 Act in existence on the date of enactment of this Act shall

13 continue in force unless the Secretary determines such

14 agreement or memorandum of understanding is inconsist15 ent with the provisions of this title.

16 SEC. 308. ENFORCEMENT, ADMINISTRATIVE AND JUDICIAL

17 REVIEW.

18 (a) INSPECTIONS.—The Secretary, or a State if the

19 State has entered into a cooperative agreement pursuant

20 to section 307, shall conduct a minimum of one complete

21 inspection each year of mineral activities for which a plan

22 of operations or notice is required under section 302 to

23 ensure compliance with the terms of the plan or notice.

24 The operator shall grant access at reasonable times and

25 under reasonable circumstances to the appropriate des-
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1 ignated representative of the Secretary or State when re2 quested. The Secretary or the State must give reasonable

3 notice to the operator before commencing any inspection.

4 The Secretary or the State may inspect more frequently,

5 if warranted, and may modify the inspection schedule as

6 necessary for mineral activities that are conducted on a

7 seasonal basis.

8 (b) COMPLIANCE ORDERS.—

9 (1) Whenever, on the basis of any inspection

10 authorized by subsection (a), the Secretary finds

11 that the operator is in violation of any term or con12 dition of a plan of operations or notice, the Sec13 retary may issue an order requiring the operator to

14 comply with such requirement, or may request the

15 Attorney General to bring a civil action in accord16 ance with subsection (c): Provided, however, That

17 the Secretary shall not request commencement of a

18 civil action if (i) the violation is corrected within 30

19 days, and (ii) the violation is neither causing nor

20 likely to cause irreparable harm to the environment

21 or a threat to human health or safety.

22 (2) Any order issued under this subsection shall

23 state with reasonable specificity the nature of the

24 violation and shall require compliance within a rea25 sonable period of time specified in the order. The
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1 Secretary may extend the time specified for compli2 ance for a reasonable period, considering the serious3 ness of the violation and any good faith efforts to

4 comply with the terms and conditions of the plan of

5 operation.

6 (c) CIVIL ACTIONS.—At the request of the Secretary,

7 the Attorney General may institute a civil action in the

8 district court of the United States for the district in which

9 the affected operation is located for a temporary restrain10 ing order, injunction, civil penalties as provided in sub11 section (d), or other appropriate remedy, when the opera12 tor (i) violates or refuses to comply with an order issued

13 by the Secretary under subsection (b), or (ii) refuses to

14 allow an inspection authorized under subsection (a).

15 (d) CIVIL PENALTIES.—An operator that fails to

16 comply with the requirements applicable to mineral activi17 ties conducted under notice pursuant to section 302 or the

18 terms or conditions of a plan of operations approved under

19 section 302, after notice of such failure and expiration of

20 a reasonable period allowed for abatement as specified

21 pursuant to subsection (b), is subject to a civil penalty

22 of not more than $5,000 for each day of the continuance

23 of such noncompliance. In determining the amount of the

24 penalty, the Court shall consider the existence of previous

25 violations at the operation, the seriousness of the violation,
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1 the likelihood of irreparable harm to the environment and

2 any hazard to the health or safety of the public, whether

3 the operator was negligent, and the good faith of the oper4 ator.

5 (e) ADMINISTRATIVE REVIEW.—

6 (1) Any operator issued a compliance order

7 under this section may apply to the Secretary for re8 view of the order within 30 days of receipt thereof,

9 or as the case may be, within 30 days of such order

10 being modified.

11 (2) The Secretary shall provide an opportunity

12 for a hearing on the record at the request of the op13 erator.

14 (3) Pending completion of any review proceed15 ings under this subsection, the operator may file

16 with the Secretary a written request that the Sec17 retary grant temporary relief from any order issued

18 under this section, supported by a detailed statement

19 of reasons for such relief. The Secretary shall expe20 ditiously issue an order or decision granting or deny21 ing such relief.

22 (f) FINAL AGENCY ACTION.—Final agency action

23 under this title shall be subject to judicial review pursuant

24 to 5 U.S.C. 701–706 and 28 U.S.C. 1331.
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1 SEC. 309. SAVINGS CLAUSE.

2 The provisions of this title shall supersede any provi3 sion of the general mining laws or the Federal Land Policy

4 and Management Act, and any standard related to the

5 management of surface resources within the National For6 est System contained in or derived from the Organic Ad7 ministration Act (16 U.S.C. 473 et seq.), the Multiple8 Use Sustained-Yield Act of 1960 (16 U.S.C. 528 et seq.),

9 the Forest and Rangeland Renewable Resources Planning

10 Act of 1974 (16 U.S.C. 1601 et seq.), or any other law

11 applicable to Federal lands subject to this title within the

12 National Forest System, and any rules promulgated under

13 such laws, only to the extent that such laws or rules con14 flict or are inconsistent with the provisions of this title.

15 Orders, rules and regulations in effect as of the date of

16 enactment of this Act which govern surface management

17 of mineral activities shall remain in effect under the au18 thority of this title.

19 TITLE IV—ROYALTY

20 SEC. 401. ROYALTY.

21 (a) IN GENERAL.—The production and sale of

22 locatable minerals (including associated minerals) from

23 any unpatented mining claim (other than those from Fed24 eral lands to which subsection 204(b) applies) or any min25 ing claim patented under subsection 204(a) shall be sub26 ject to a royalty of three percent of the net proceeds from
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1 such production mined and sold from such claim: Pro2 vided, That for any mine with an annual gross yield of

3 less than $500,000 the royalty shall be waived: And pro4 vided further, That no royalty shall be payable pursuant

5 to this title with respect to minerals processed at a facility

6 by the same person or entity which extracted the minerals

7 if an urban development action grant has been made

8 under section 119 of the Housing and Community Devel9 opment Act of 1974 with respect to any portion of such

10 facility. The obligation to pay royalties hereunder shall ac11 crue only upon the sale of locatable minerals or mineral

12 products produced from a mining claim subject to such

13 royalty, and not upon the stockpiling of the same for fu14 ture processing.

15 (b) DEFINITIONS.—For the purposes of this title, the

16 term—

17 (1) ‘‘gross yield’’ shall mean—

18 (A) in the case of sales of gold and silver

19 ore, concentrates or bullion, or the sales of

20 other locatable minerals in the form of ore or

21 concentrates, the actual proceeds of sale of such

22 ore, concentrates or bullion;

23 (B) in the case of sales of beneficiated

24 products from locatable minerals other than

25 those subject to section 401(b)(1)(A), such as
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1 cathode, anode or copper rod or wire, or other

2 products fabricated from the locatable minerals,

3 the gross income from mining derived from the

4 first commercially marketable product deter5 mined in the same manner as under section 613

6 of the Internal Revenue Code;

7 (C) in the event that ore, concentrates,

8 beneficiated or fabricated products or locatable

9 minerals are used or consumed and are not sold

10 in an arms length transaction, the reasonable

11 fair market value of the ore, concentrates,

12 beneficiated or fabricated products at the mine

13 or wellhead determined from the first applicable

14 of the following:

15 (i) published or other competitive sell16 ing prices of locatable minerals of like kind

17 and grade;

18 (ii) any proceeds of sale;

19 (iii) value received in exchange for any

20 thing or service; or

21 (iv) the value of any locatable min22 erals in kind or used or consumed in a

23 manufacturing process or in providing a

24 service; and
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1 (D) without limiting the foregoing, the

2 profits or losses incurred in connection with for3 ward sales, futures or commodity options trad4 ing, metal loans, or any other price hedging or

5 speculative activity or arrangement shall not be

6 included in gross yield.

7 (2) ‘‘net proceeds’’ shall mean gross yield, less

8 the following deductions for costs incurred prior to

9 sale or value determination, and none other:

10 (A) the actual cost of extracting the

11 locatable mineral;

12 (B) the actual cost of transporting the

13 locatable mineral from the claim to the place or

14 places of reduction, beneficiation, refining, and

15 sale;

16 (C) the actual cost of reduction,

17 beneficiation, refining, and sale of the locatable

18 mineral.

19 (D) the actual cost of marketing and deliv20 ering the locatable mineral and the conversion

21 of the locatable mineral into money;

22 (E) the actual cost of maintenance and re23 pairs of—

24 (i) all machinery, equipment, appara25 tus, and facilities used in the mine;
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1 (ii) all crushing, milling, leaching, re2 fining, smelting, and reduction works,

3 plants, and facilities; and

4 (iii) all facilities and equipment for

5 transportation;

6 (F) the actual cost for support personnel

7 and support services at the mine site, including

8 without limitation, accounting, assaying, draft9 ing and mapping, computer services surveying,

10 housing, camp, and office expenses, safety, and

11 security;

12 (G) the actual cost of engineering, sam13 pling, and assaying pertaining to development

14 and production;

15 (H) the actual cost of permitting, reclama16 tion, environmental compliance and monitoring;

17 (I) the actual cost of fire and other insur18 ance on the machinery, equipment, apparatus,

19 works, plants, and facilities mentioned in sub20 paragraph (E);

21 (J) depreciation of the original capitalized

22 cost of the machinery, equipment, apparatus,

23 works, plants, and facilities listed in subpara24 graph (E). The annual depreciation charge shall

25 consist of amortization of the original cost in
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1 the manner consistent with the Internal Reve2 nue Code of 1986, as amended from time to

3 time. The probable life of the property rep4 resented by the original cost must be considered

5 in computing the depreciation charge;

6 (K) all money expended for premiums for

7 industrial insurance, and the owner paid cost of

8 hospital and medical attention and accident

9 benefits and group insurance for all employees

10 engaged in the production or processing of

11 locatable minerals;

12 (L) all money paid as contributions or pay13 ments under State unemployment compensation

14 law, all money paid as contributions under the

15 Federal Social Security Act, and all money paid

16 to State government in real property taxes and

17 severance or other taxes measured or levied on

18 production, or Federal excise tax payments and

19 payments as fees or charges for use of the Fed20 eral lands from which the locatable minerals are

21 produced; and

22 (M) the actual cost of the developmental

23 work in or about the mine or upon a group of

24 mines when operated as a unit; and
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1 (c) LIMITATIONS AND ALLOCATIONS OF NET PRO2 CEEDS, GROSS YIELD, AND ALLOWABLE COSTS.—

3 (1) The several deductions listed in paragraph

4 (b)(2) are intended to allow a reasonable allowance

5 for overhead: Provided, That they do not include any

6 expenditures for salaries, or any portion of salaries,

7 of any person not actually engaged in—

8 (A) the working of the mine;

9 (B) the operating of the leach pads, ponds,

10 plants, mills, smelters, or reduction works;

11 (C) the operating of the facilities or equip12 ment for transportation; or

13 (D) superintending the management of any

14 of those operations described in subparagraphs

15 (A)–(C).

16 (2) Ores or solutions of locatable minerals may

17 be extracted from mines comprised of mining claims

18 and lands other than mining claims. Ore or solutions

19 of locatable minerals may be commingled with ores

20 or solutions from lands other than mining claims:

21 Provided, That the operator shall first sample, weigh

22 or measure, and assay the same in accordance with

23 accepted industry standards. In the event of such

24 production from mines comprised of mining claims

25 and other lands and/or in the event of commingling
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1 as provided under this paragraph, gross yield, allow2 able costs and net proceeds for royalty purposes

3 shall be allocated in proportion to mineral products

4 recovered from the mining claims in accordance with

5 accepted industry standards.

6 (d) LIABILITY FOR ROYALTY PAYMENTS.—The

7 owner or co-owners of a mining claim subject to the roy8 alty required under this section shall be liable for royalty

9 due to the United States on locatable minerals produced

10 and sold during the period of ownership to the extent of

11 the interest in such claim owned. As used in this sub12 section, ‘‘owner’’ or ‘‘co-owner’’ shall mean the person or

13 persons owning the right to mine locatable minerals from

14 such claim and receiving the net proceeds of such sale.

15 Any person who makes any royalty payment attributable

16 to the interest of the owner or co-owners liable therefor

17 shall not become liable to the United States for such roy18 alty as a result of making such payment on behalf of such

19 owner or co-owners.

20 (e) TIME AND MANNER OF PAYMENT.—

21 (1) Royalty payments for production from any

22 mining claim subject to the royalty required in this

23 section shall be due to the United States at the end

24 of the month following the end of the calendar quar25 ter in which the net proceeds from the sale of such
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1 production are received by the owner or co-owners.

2 Royalty payments may be made based upon good

3 faith estimates of the gross yield, net proceeds and

4 the quantity of ore, concentrates, or other

5 beneficiated or fabricated products of locatable min6 erals, subject to adjustment when the actual annual

7 gross yield, net proceeds and quantity are deter8 mined by the owner of the mining claim or site or

9 co-owners.

10 (2) Each royalty payment or adjustment shall

11 be accompanied by a statement containing—

12 (A) the name and Bureau of Land Man13 agement serial number of the mining claim or

14 claims from which ores, concentrates, solutions

15 or beneficiated products of locatable minerals

16 subject to the royalty required in this section

17 were produced and sold for the period covered

18 by such payment or adjustment;

19 (B) the estimated (or actual, if deter20 mined) quantity of such ore, concentrates, solu21 tions or beneficiated or fabricated products pro22 duced and sold from such mining claim or

23 claims for such period;

24 (C) the estimated (or actual, if deter25 mined) gross yield from the production and sale
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1 of such ore, concentrates, solutions or

2 beneficiated products for such period;

3 (D) the estimated (or actual, if deter4 mined) net proceeds from the production and

5 sale of such ores, concentrates, solutions or

6 beneficiated products for such period, including

7 an itemization of the applicable deductions de8 scribed in paragraph (b)(2); and

9 (E) the estimated (or actual, if deter10 mined) royalty due to the United States, or ad11 justment due to the United States or such

12 owner or co-owners, for such period.

13 (3) In lieu of receiving a refund under sub14 section (g), the owner or co-owners may elect to

15 apply any adjustment due to such owner or co-own16 ers as an offset against royalties due from such

17 owner or co-owners to the United States under this

18 Act, regardless of whether such royalties are due for

19 production and sale from the same mining claim or

20 claims.

21 (f) RECORDKEEPING AND REPORTING REQUIRE22 MENTS.—

23 (1) An owner, operator, or other person directly

24 involved in the conduct of mineral activities, trans25 portation, purchase, or sale of locatable minerals,
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1 concentrates, or products derived therefrom, subject

2 to the royalty required in this section, through the

3 point of royalty computation, shall establish and

4 maintain any records, make any reports, and provide

5 any information that the Secretary may reasonably

6 require for the purposes of implementing this section

7 or determining compliance with regulations or orders

8 under this section. Upon the request of the Sec9 retary when conducting an audit or investigation

10 pursuant to subsection (h), the appropriate records,

11 reports, or information which may be required by

12 this section shall be made available for inspection

13 and duplication by the Secretary.

14 (2) Records required by the Secretary under

15 this section shall be maintained for three years after

16 the records are generated unless the Secretary noti17 fies the record holder that he or she has initiated an

18 audit or investigation specifically identifying and in19 volving such records and that such records must be

20 maintained for a longer period. When an audit or in21 vestigation is under way, such records shall be main22 tained until the earlier of the date that the Secretary

23 releases the record holder of the obligation to main24 tain such records or the date that the limitations pe-
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1 riod applicable to such audit or investigation under

2 subsection (h) expires.

3 (g) INTEREST ASSESSMENTS.—In any case in which

4 royalty payments are not received by the Secretary on the

5 date that such payments are due, or when such payments

6 are less than the amount due, the Secretary shall charge

7 interest on such late payments computed at the rate pub8 lished by the Department of the Treasury as the ‘‘Treas9 ury Current Value of Funds Rate.’’ In the case of an

10 underpayment or partial payment, interest shall be com11 puted and charged only on the amount of the deficiency

12 and not on the total amount, and only for the number

13 of days such payment is late. No other late payment or

14 underpayment charge or penalty shall be charged. In any

15 case in which royalty payments are made in excess of the

16 amount due, or amounts are held by the Secretary pending

17 the outcome of any appeal in which the Secretary does

18 not prevail, the Secretary shall promptly refund such over19 payments or pay such amounts to the person or persons

20 entitled thereto, together with interest thereon for the

21 number of days such overpayment or amounts were held

22 by the Secretary, with the addition of interest charged

23 against the United States computed at the rate published

24 by the Department of the Treasury as the ‘‘Treasury Cur25 rent Value of Funds Rate.’’
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1 (h) AUDITS, PAYMENT DEMANDS AND LIMITA2 TIONS.—

3 (1) The Secretary may conduct, after notice,

4 any audit reasonably necessary and appropriate to

5 verify the payments required under this section.

6 (2) Any billing or demand letter for royalty due

7 on locatable minerals produced and sold from any

8 mining claim subject to royalty required by this sec9 tion must be sent or issued not later than three

10 years after the date such royalty was due and must

11 specifically identify the production involved, the roy12 alty allegedly due and the basis for the claim. No ac13 tion, proceeding or claim for royalty due on locatable

14 minerals produced and sold, or relating to such pro15 duction, may be brought by the United States, in16 cluding but not limited to any claim for additional

17 royalties or claim of the right to offset the amount

18 of such additional royalties against amounts owed to

19 any person by the United States, unless judicial suit

20 or administrative proceedings are commenced to re21 cover specific amounts claimed to be due prior to the

22 expiration of three years from the date such royalty

23 is alleged to have been due.

24 (i) TRANSITIONAL RULES.—Any mining claim for

25 which a patent is issued pursuant to subsection 204(b)
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1 shall not be subject to the obligation to pay the royalty

2 pursuant to this section. Royalty payments for any claim

3 processed under subsection 204(b) shall be suspended

4 pending final determination of the right to patent. For

5 any claim that does not qualify for the issuance of a patent

6 under subsection 204(b), royalties shall be payable under

7 this section on—

8 (1) previous production between the date of en9 actment of this Act and the date of such final deci10 sion denying the issuance of a patent, plus interest

11 computed at the rate published by the Department

12 of the Treasury as the ‘‘Treasury Current Value of

13 Funds Rate’’; and

14 (2) production subsequent to the date of such

15 decision.

16 (j) DISBURSEMENT OF REVENUES.—The receipts

17 from royalties collected under this section shall be dis18 bursed as follows:

19 (1) One-half of such receipts shall be paid into

20 the Treasury of the United States and deposited as

21 miscellaneous receipts.

22 (2) One-quarter of such receipts shall be paid

23 by the Secretary of the Treasury to the State in

24 which the mining claim from which production oc25 curred is located.
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1 (3) One-quarter of such receipts shall be paid

2 into a State Fund or the Federal Fund in accord3 ance with title V; until termination as provided in

4 section 506.

5 (k) NO IMPLIED COVENANTS.—The owner of a min6 ing claim subject to the provisions of this title shall have

7 no obligation, express or implied, to explore for, develop,

8 produce or market locatable minerals as a result of the

9 obligation to pay a royalty hereunder, and the timing, na10 ture, extent and manner of exploring, developing, mining

11 and marketing such locatable minerals shall be in the sole

12 discretion of the claim owner.

13 TITLE V—ABANDONED LOCATABLE MINERALS

14 MINE RECLAMATION PROGRAM

15 SEC. 501. ABANDONED LOCATABLE MINERALS MINE REC16 LAMATION FUND.

17 (a) STATE FUND.—Any State within which proceeds

18 are collected pursuant to title IV from a mining claim and

19 which wishes to become eligible to receive such proceeds

20 allocated by paragraph 401(j)(3) shall establish and main21 tain an interest-bearing abandoned locatable mineral mine

22 reclamation fund (hereinafter referred to in this title as

23 ‘‘State Fund’’) to accomplish the purposes of this title.

24 (b) FEDERAL FUND.—There is established on the

25 books of the Treasury of the United States an interest-
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1 bearing fund to be known as the Abandoned Locatable

2 Minerals Mine Reclamation Fund (hereinafter referred to

3 in this title as ‘‘Federal Fund’’) which shall consist of pro4 ceeds allocated by paragraph 401(j)(3) from mining

5 claims in a State where a State Fund has not been estab6 lished or maintained under subsection (a).

7 SEC. 502. ALLOCATION AND PAYMENTS.

8 (a) STATE FUND.—Proceeds collected pursuant to

9 title IV and allocated by paragraph 401(j)(3) shall be paid

10 by the Secretary of the Treasury to the State Fund estab11 lished pursuant to subsection 501(a) for the State where

12 the mining claim from which the production occurred is

13 located. Payments to States under this subsection with re14 spect to any moneys received by the United States, shall

15 be made not later than the last business day of the month

16 in which such moneys are warranted by the United States

17 Treasury to the Secretary of the Interior as having been

18 received, except for any portion of such moneys which is

19 under challenge, which shall be placed in a suspense ac20 count pending resolution of such challenge. Such warrants

21 shall be issued by the United States Treasury not later

22 than 10 days after receipt of such moneys by the Treas23 ury. Moneys placed in a suspense account which are deter24 mined to be due the United States shall be payable to a

25 State Fund not later than fifteen days after such challenge
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1 is resolved. Any such amount placed in a suspense account

2 pending resolution shall bear interest until the challenge

3 is resolved. In determining the amount of payments to

4 State Funds under this section, the amount of such pay5 ments shall not be reduced by any administrative or other

6 costs incurred by the United States.

7 (b) FEDERAL FUND.—Proceeds collected pursuant to

8 title IV, and allocated by paragraph 401(j)(3), from min9 ing claims located in the State which has not established

10 or maintained a State Fund, and such proceeds from min11 ing claims located in a State for which the Secretary’s au12 thority has expired under subsection 506(a), shall be cred13 ited to the Federal Fund and distributed in accordance

14 with subsection (c).

15 (c) TRANSITION.—Prior to the time a State estab16 lishes a State Fund pursuant to subsection 501(a), any

17 proceeds collected from a mining claim within such State

18 shall be deposited into the Federal Fund and allocated to

19 such State. Once a State establishes a State Fund under

20 subsection 501(a), the State allocation in the Federal

21 Fund with accrued interest shall be paid by the Secretary

22 of the Treasury to the State Fund in accordance with sub23 section (a). Commencing three years after the date of en24 actment of this Act, the Secretary of the Treasury shall

25 distribute proceeds then accrued or which are thereafter
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1 credited to the Federal Fund equally among all States

2 which maintain a State Fund established under subsection

3 501(a), and for which the Secretary of the Treasury’s au4 thority has not expired under subsection 506(a).

5 SEC. 503. ELIGIBLE AREA.

6 (a) IN GENERAL.—Subject to subsection (b), lands

7 and water eligible for reclamation under this title shall be

8 Federal lands that—

9 (1) have been adversely affected by past min10 eral activities on lands abandoned and left inad11 equately reclaimed prior to the date of enactment of

12 this Act; and

13 (2) for which the State determines there is no

14 identifiable party with a continuing reclamation re15 sponsibility under State or Federal laws.

16 (b) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—

17 The following areas shall not be eligible for expenditures

18 from a State Fund:

19 (1) Any area subject to a plan of operations

20 submitted or approved prior to, on or after the date

21 of enactment of this Act which includes remining or

22 reclamation of the area adversely affected by past

23 locatable mineral activities.

24 (2) Any area affected by coal mining eligible for

25 reclamation expenditures pursuant to section 404 of
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1 the Surface Mining Control and Reclamation Act

2 (30 U.S.C. 1234).

3 (3) Any area designated for remedial action

4 pursuant to the Uranium Mill Tailings Radiation

5 Control Act of 1978 (42 U.S.C. 7912).

6 (4) Any area that was listed on the National

7 Priorities List pursuant to the Comprehensive Envi8 ronmental Response, Compensation and Liability

9 Act of 1980 (42 U.S.C. 9605) prior to the date of

10 enactment of this Act, or where the Environmental

11 Protection Agency has initiated or caused to be initi12 ated a response action pursuant to that Act.

13 SEC. 504. USES AND OBJECTIVES OF FUNDS.

14 (a) USE OF FUNDS.—Moneys in a State Fund shall

15 be used for the reclamation of eligible areas. For purposes

16 of this section, reclamation includes—

17 (1) backfilling, fencing, sealing, or otherwise

18 controlling abandoned underground mine entries to

19 protect public health and safety;

20 (2) abatement, treatment or control of water

21 pollution;

22 (3) shaping, grading, contouring and

23 revegetation of land to prevent erosion and sedi24 mentation, or to enhance fish and wildlife habitat;
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1 (4) removal or control of toxic or hazardous

2 materials;

3 (5) analysis, curation and preservation of struc4 tures, buildings, sites or objects listed or eligible for

5 listing pursuant to the National Historic Preserva6 tion Act (16 U.S.C. 470a); and

7 (6) control or reclamation of surface subsidence

8 due to abandoned underground mines.

9 (b) PRIORITIES.—Expenditures of moneys from a

10 State Fund shall reflect the following priorities in the

11 order stated, but shall not preclude, where feasible and

12 appropriate, a combination of these priorities for cost-ef13 fective reclamation:

14 (1) The protection of public health, safety, gen15 eral welfare and property from extreme danger from

16 the adverse effects of past mineral activities.

17 (2) The protection of public health, safety, and

18 general welfare from the adverse effects of past min19 eral activities.

20 (c) LIABILITY.—No State, or a contractor for such

21 State engaged in approved reclamation work under this

22 title, or any other entity authorized by a State to conduct

23 approved reclamation activities, shall be liable under any

24 provision of Federal law for any costs or damages as a

25 result of action taken or omitted in the course of carrying
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1 out reclamation pursuant to this section. This subsection

2 shall not preclude liability for costs and damages as a re3 sult of gross negligence or intentional misconduct. For

4 purposes of the preceding sentence, reckless, willful or

5 wanton misconduct shall constitute gross negligence.

6 SEC. 505. REPORT TO CONGRESS.

7 Each year, each State with a State Fund under sub8 section 501(a) shall submit a report to the Congress pro9 viding an accounting of the Fund, including identifying

10 sites for which moneys in the Fund have been spent dur11 ing the preceding year and sites for which moneys shall

12 be allocated in the following year, the amounts spent or

13 expected to be spent on each such site, and an estimate

14 of the number of eligible areas that remain to be reclaimed

15 in the State.

16 SEC. 506. SUNSET PROVISIONS.

17 (a) TERMINATION OF AUTHORITY.—The Secretary of

18 the Treasury’s authority to allocate funds to a State Fund

19 under section 502 shall expire on the date that the State

20 submits an annual report to the Congress pursuant to sec21 tion 505 which reports that there are no areas in the State

22 which remain to be reclaimed.

23 (b) TERMINATION OF FUND.—Upon the termination

24 of authority as provided in subsection (a) with respect to

25 all State Funds, the Federal Fund shall also be termi-
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1 nated, and all proceeds thereafter remaining in the Fed2 eral Fund shall be paid into the Treasury of the United

3 States and deposited as miscellaneous receipts.

4 TITLE VI—ADMINISTRATIVE PROVISIONS

5 SEC. 601. EFFECTIVE DATE.

6 The provisions of this Act shall take effect on the

7 date of enactment of this Act, except as otherwise provided

8 in this Act.

9 SEC. 602. EFFECT ON FEDERAL AND STATE LAWS.

10 (a) EFFECT ON THE GENERAL MINING LAWS.—The

11 provisions of this Act shall supersede the general mining

12 laws only to the extent such laws conflict with the require13 ments of this Act. Where no such conflict exists, the gen14 eral mining laws, including all judicial and administrative

15 decisions interpreting them, shall remain in full force and

16 effect.

17 (b) EFFECT ON OTHER FEDERAL AND STATE

18 LAWS.—Except as provided in subsection (a), nothing in

19 this Act shall be construed—

20 (1) as superseding, modifying, amending or re21 pealing any other provision of Federal law, State law

22 or Federal or State regulation enacted pursuant

23 thereto, not expressly superseded, modified, amended

24 or repealed;
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1 (2) without limiting the foregoing, as affecting

2 or intended to affect or in any way interfere with or

3 modify the laws of the States relating to the owner4 ship, control, appropriation, use and distribution of

5 ground or surface waters or the regulation by States

6 of surface or ground water quality; and

7 (3) as affecting or modifying in any way the

8 rights, obligations or liabilities of any person under

9 other provision of law.

10 SEC. 604. SEVERABILITY.

11 If any provision of this Act or the applicability there12 of to any person or circumstances is held invalid, the re13 mainder of this Act and the application of such provision

14 to other persons or circumstances shall not be affected

15 thereby.

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