103D CONGRESS

1ST SESSION H. R. 322

AMENDMENT
In the Senate of the United States,

November 22, 1993.

Resolved, That the bill from the House of Representatives (H.R. 322) entitled ‘‘An Act to modify the requirements

applicable to locatable minerals on public domain lands, consistent with the principles of self-initiation of mining claims,

and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLES.

2 (a) IN GENERAL.—This Act may be cited as the

3 ‘‘Hardrock Mining Reform Act of 1993’’.

4 (b) SURFACE RESOURCES ACT OF 1955.—The Act of

5 July 23, 1955 (69 Stat. 367, chapter 375; 30 U.S.C. 611

6 et seq.) is amended by adding at the end the following new

7 section:

8 ‘‘SEC. 8. SHORT TITLE.

9 ‘‘This Act may be cited as the ‘Surface Resources Act

10 of 1955’.’’.

11 (c) MATERIALS ACT OF 1947.—The Act of July 31,

12 1947 (61 Stat. 681, chapter 406; 30 U.S.C. 601 et seq.) is

13 amended by adding at the end the following new section:
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1 ‘‘SEC. 5. SHORT TITLE.

2 ‘‘This Act may be cited as the ‘Materials Act of

3 1947’.’’.

4 SEC. 2. FINDINGS AND PURPOSE.

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

6 (1) a secure and reliable supply of nonfuel min7 erals is essential to the industrial base of the United

8 States, national security, and balance of trade;

9 (2) many of the deposits of nonfuel hard min10 erals that may be commercially developed are on Fed11 eral public lands, and are difficult and expensive to

12 discover and process;

13 (3) the national need for nonfuel hard minerals

14 will continue to expand and the demand for the min15 erals will exceed domestic sources of supply without a

16 strong mining industry;

17 (4) mining of nonfuel hard minerals is an ex18 tremely high-risk, capital-intensive endeavor, which,

19 to attract necessary investment, requires certainty

20 and predictability in access to public lands, establish21 ment of mining titles, and the rights of claimants to

22 develop minerals;

23 (5) it is in the national interest to foster and en24 courage private enterprise in the development of a do25 mestic minerals industry to maintain and create high

26 paying jobs in the United States;
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1 (6) mining activities on public lands should be

2 consistent with applicable Federal land use plans and

3 should be conducted in compliance with all applicable

4 Federal and State environmental regulations and

5 standards, including standards governing mined land

6 reclamation;

7 (7) the diversity in terrain, climate, biological,

8 chemical, and other physical conditions, and vari9 ation among the minerals mined and the methods of

10 mining and processing, require that reclamation

11 standards should be tailored to local and regional

12 conditions; and

13 (8) changes in the general mining laws of the

14 United States to provide more direct economic return

15 to the United States and greater protection for public

16 resources are desirable, so long as the changes do not

17 adversely affect employment in the mining industry

18 or in industries that provide goods and services re19 quired for mining activities, interfere with a secure

20 and reliable supply of minerals, or adversely affect

21 the balance of trade of the United States.

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

23 (1) provide for increased Federal revenue from

24 the location and production of ores and nonfuel hard

25 minerals through increased fees and royalties;
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1 (2) provide for the payment of fair market value

2 for the surface of any land patented under the general

3 mining laws of the United States;

4 (3) ensure that all public lands affected by

5 nonfuel minerals mining activities under the general

6 mining laws are reclaimed, in concert with State and

7 local reclamation authorities; and

8 (4) establish a program to help reclaim nonfuel,

9 hardrock mineral abandoned mines.

10 SEC. 3. DEFINITIONS.

11 (1) LOCATABLE MINERAL.—The term ‘‘locatable min12 eral’’ means any mineral not subject to disposition under—

13 (A) the Mineral Leasing Act (30 U.S.C. 181 et

14 seq.);

15 (B) the Geothermal Steam Act of 1970 (30

16 U.S.C. 1001 et seq.);

17 (C) the Materials Act of 1947 (30 U.S.C. 601 et

18 seq.); or

19 (D) the Mineral Leasing Act for Acquired Lands

20 (30 U.S.C. 351 et seq.).

21 (2) MOUTH OF THE MINE.—The term ‘‘mouth of the

22 mine’’ means the portal of an underground mine, the point

23 of exit of ore from an open pit mine, or the wellhead of

24 a solution mine.

25 (3) VALUE.—
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1 (A) IN GENERAL.—The term ‘‘value’’ means the

2 fair market value of the ore or solutions as they

3 emerge from the mine or well, less the direct and indi4 rect costs of mining, including related mine explo5 ration and development expenses, determined in ac6 cordance with generally accepted accounting prin7 ciples.

8 (B) NO MARKET AT MOUTH OF MINE.—

9 (i) If there is no market for ore in its raw

10 or crude state, the term ‘‘value’’ means the gross

11 income (computed in accordance with subpara12 graph (C)) from the mining of the ore or the pro13 duction of the solutions, less the direct and indi14 rect costs associated with the mining or produc15 tion, determined in accordance with generally

16 accepted accounting principles.

17 (C) GROSS INCOME FROM THE MINING OF THE

18 ORE OR THE PRODUCTION OF THE SOLUTIONS.—

19 Gross income from the mining of the ore or the pro20 duction of the solutions shall be computed by mul21 tiplying—

22 (i) gross sales (actual or, where there are no

23 sales, constructive) of the minerals or metals con24 tained in the ore or solutions by a fraction whose

25 numerator is the sum of all direct and indirect
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1 mining costs incurred to bring the ore or solu2 tions to the mouth of the mine (excluding in-pit

3 crushing), and whose denominator is the total of

4 all mining and nonmining costs incurred to

5 produce, sell, and transport the product.

6 (4) SECRETARY.—Unless the context otherwise re7 quires, the term ‘‘Secretary’’ means the Secretary of the In8 terior.

9 SEC. 4. LOCATION AND MAINTENANCE REQUIREMENTS.

10 (a) LOCATION FEE.—For each claim located after date

11 of enactment of this Act, a claimant shall pay the Secretary

12 a location fee of $25.00 not later than 90 days after the

13 date of location.

14 (b) ANNUAL MAINTENANCE FEE.—Commencing the

15 first calendar year after the date of enactment of this Act,

16 a claimant shall pay the Secretary on or before December

17 31 of each year, a maintenance fee of $100 per claim to

18 maintain the claim for the following calendar year.

19 (c) INDEXING.—

20 (1) IN GENERAL.—The Secretary shall adjust the

21 fees required by this section to reflect changes in the

22 Consumer Price Index published by the Bureau of

23 Labor Statistics of the Department of Labor every 5

24 years after the date of enactment of this Act, or more
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1 frequently if the Secretary determines an adjustment

2 to be reasonable.

3 (2) NOTICE.—The Secretary shall provide claim4 ants notice of any adjustment made under this sub5 section not later than July 1 of any year in which

6 the adjustment is made.

7 (3) EFFECTIVE DATE OF ADJUSTMENT.—A fee

8 adjustment under this subsection shall begin to apply

9 the calendar year following the calendar year in

10 which it is made.

11 (d) FAILURE TO PAY FEE.—Failure to timely pay the

12 location fee or maintenance fee required by this section for

13 a claim shall be deemed an abandonment of the claim. The

14 claim shall be deemed null and void by operation of law

15 effective at noon on the date that is 30 days after the date

16 upon which the payment was due.

17 (e) EXCEPTION FOR HOLDERS OF FEWER THAN 50

18 CLAIMS.—

19 (1) ELIGIBILITY.—The claim maintenance fees

20 required under this section shall be waived or reduced

21 in accordance with paragraph (3) for a claimant who

22 certifies in writing to the Secretary that on the date

23 the payment was due the claimant—
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1 (A) was the holder (as defined in paragraph

2 (2)) of not more than 50 mining claims on pub3 lic lands; and

4 (B) has performed assessment work suffi5 cient to maintain the mining claims held by the

6 claimant for the assessment year ending on noon

7 of September 1 of the calendar year in which the

8 maintenance fee payment was due.

9 (2) HOLDER.—As used in paragraph (1), the

10 term ‘‘holder’’ includes—

11 (A) the claimant;

12 (B) the spouse and dependent children (as

13 defined in section 152 of the Internal Revenue

14 Code of 1986), of the claimant; and

15 (C) a person affiliated with the claimant,

16 including—

17 (i) a person controlled by, controlling,

18 or under common control with the claimant;

19 and

20 (ii) a subsidiary or parent company or

21 corporation of the claimant.

22 (3) WAIVED OR REDUCED MAINTENANCE FEES.—

23 (A) 10 OR FEWER CLAIMS.—The mainte24 nance fee shall be waived in its entirety for 10
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1 or fewer claims held by a claimant eligible under

2 paragraph (1).

3 (B) 11 OR MORE CLAIMS.—

4 (i) IN GENERAL.—Subject to clause

5 (ii), the maintenance fee shall be reduced to

6 $25 per claim for each claim in excess of

7 10.

8 (ii) LIMITATION.—The reduction in

9 this subparagraph shall be available for no

10 more than 50 claims held by a claimant

11 who is eligible under paragraph (1).

12 (g) EXISTING REQUIREMENTS.—

13 (1) PAYMENT IN LIEU OF ANNUAL LABOR RE14 QUIREMENTS.—The third sentence of 2324 of the Re15 vised Statutes (30 U.S.C. 28) is amended by inserting

16 after ‘‘On each claim located after the 10th day of

17 May, 1872,’’ the following: ‘‘that is eligible for a

18 waiver or reduced fee under section 4(e) of the

19 Hardrock Mining Reform Act of 1993,’’.

20 (2) FEDERAL FILING REQUIREMENTS.—Section

21 314 of the Federal Land Policy and Management Act

22 of 1976 (43 U.S.C. 1744) is amended—

23 (A) by striking subsection (a);
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1 (B) by redesignating subsections (b), (c),

2 and (d) as subsections (a), (b), and (c), respec3 tively; and

4 (C) in subsection (b) (as so redesignated) by

5 striking ‘‘subsections (a) and (b)’’ and inserting

6 ‘‘subsection (a)’’.

7 (3) CONFORMING AMENDMENT.—Section 2511(e)

8 of the Energy Policy Act of 1992 (30 U.S.C. 242(e))

9 is amended by striking the second sentence.

10 SEC. 5. ROYALTY.

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

12 locatable minerals (including associated minerals) from

13 any mining claim located after the date of enactment of

14 this Act shall be subject to a royalty of 2 percent of the

15 value of the minerals measured at the mouth of the mine.

16 (b) PAYMENT OF ROYALTY.—Royalty payments shall

17 be made not later than 45 days after the end of each cal18 endar quarter during which the minerals are sold. The pay19 ments shall be subject to adjustment, if required, at the end

20 of each calendar year.

21 (c) AUDIT.—The Secretary may audit the payments

22 under this section at any time upon notice to the claimant.

23 (d) ROYALTY DEDUCTION.—The Secretary may reduce

24 the royalties under this section whenever the Secretary de25 termines it is necessary to promote development or whenever
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1 the claims cannot be successfully operated under the terms

2 of this section.

3 (e) HARDROCK MINING ROYALTY REVIEW COMMIS4 SION.—

5 (1) ESTABLISHMENT.—There is established the

6 Hardrock Mining Royalty Review Commission (re7 ferred to in this section as the ‘‘Commission’’).

8 (2) MEMBERSHIP.—The Commission shall be

9 comprised of 9 members appointed by the Secretary

10 who have experience in the economics of the hardrock

11 mining industry.

12 (3) CHAIRPERSON.—The Secretary shall des13 ignate 1 member to serve as a Chairperson of the

14 Commission.

15 (4) COMPENSATION.—Members of the Commis16 sion shall serve without compensation but shall be re17 imbursed for travel expenses, including per diem in

18 lieu of subsistence, at rates authorized for employees

19 of agencies under subchapter I of chapter 57 of title

20 5, United States Code, while away from their homes

21 or regular places of business in the performance of

22 services for the Commission.

23 (5) DUTIES OF COMMISSION.—Not later than 18

24 months after the date of enactment of this section, the

25 Commission shall review the effect of the royalty pro-
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1 visions under this section on the domestic hardrock

2 mining industry and present its findings and rec3 ommendations to the Secretary and to the Committee

4 on Energy and Natural Resources of the Senate and

5 the Committee on Natural Resources of the House of

6 Representatives. In conducting its review, the Com7 mission shall—

8 (A) consider the economic effect of different

9 royalty rates on the domestic hardrock mining

10 industry, employment, local and regional eco11 nomics, the balance of trade, national security,

12 and strategic supplies;

13 (B) determine whether there are sufficient

14 differences between various minerals or means of

15 production to support different royalty rates for

16 specific minerals or means of production;

17 (C) estimate the long-term effect of different

18 royalty rates on competition within the industry

19 and between domestic and foreign production;

20 and

21 (D) consider the multiplier effect of different

22 royalty rates.

23 (6) POWERS OF THE COMMISSION.—The Com24 mission may—
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1 (A) hold such hearings, sit and act at such

2 times and places, take such testimony, and re3 ceive such evidence as the Commission considers

4 advisable;

5 (B) use the United States mails in the same

6 manner and under the same conditions as other

7 departments and agencies of the Federal Govern8 ment;

9 (C) enter into contracts or agreements for

10 studies and surveys with public and private or11 ganizations and transfer funds to Federal agen12 cies to carry out such functions of the Commis13 sion as the Commission determines to be nec14 essary; and

15 (D) incur such necessary expenses and exer16 cise such other powers as are consistent with,

17 and reasonably required to perform, the func18 tions of the Commission under this section.

19 (7) SUPPORT.—The Secretary shall provide such

20 office space, furnishings, and equipment as may be

21 required to enable the Commission to carry out this

22 section. The Secretary shall also furnish the Commis23 sion with such staff, including clerical support, as the

24 Commission may require.

25 (8) OTHER FEDERAL AGENCIES.—
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1 (A) IN GENERAL.—Upon request of the

2 Commission, the Secretary may request the head

3 of any Federal department or agency—

4 (i) to assist the Commission in carry5 ing out this section; and

6 (ii) to provide such information as the

7 Commission requires.

8 (B) DETAIL OF GOVERNMENT EMPLOY9 EES.—Any Federal Government employee may

10 be detailed to the Commission. The detail shall

11 be without interruption or loss of privilege, se12 niority, pay, or other employee status. The Com13 mission shall reimburse the cooperating Federal

14 agency for the detail of an employee.

15 (9) FINANCIAL AND ADMINISTRATIVE SERV16 ICES.—The Secretary of the Interior shall provide fi17 nancial and administrative services (including those

18 related to budgeting, accounting, financial reporting,

19 personnel, and procurement) to the Commission.

20 (10) APPROPRIATIONS.—There are authorized to

21 be appropriated such sums as are necessary to carry

22 out this section.

23 SEC. 6. LIMITATIONS ON PATENTS.

24 (a) IN GENERAL.—After the date of enactment of this

25 Act, a patent issued by the United States for any claim
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1 shall be subject to the requirements of subsection (b) unless

2 the Secretary determines that—

3 (1) a mineral survey application has been filed

4 with the Secretary or patent application was filed

5 with the Secretary within six months of date of enact6 ment of this Act; and

7 (2) the claimant has made a discovery of valu8 able minerals and has met or can meet all require9 ments applicable to vein, lode, or placer claims and

10 all requirements applicable to mill site claims, as ap11 propriate.

12 (b) LIMITATIONS ON PATENTED ESTATE.—A patent

13 issued by the United States after the date of enactment of

14 this Act shall be issued only—

15 (1) upon payment by the claimant of the fair

16 market value for the interest in the land owned by the

17 United States exclusive of and without regard to the

18 mineral deposits in the land; and

19 (2) upon reservation by the United States of a

20 royalty as provided in section 5.

21 SEC. 7. PLANS OF OPERATION AND RECLAMATION RE22 QUIREMENTS.

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

24 this subsection, no person may engage in mineral activities

25 on Federal land that cause more than a minimal disturb-
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1 ance of surface resources (as defined in subsection (b)) un2 less the person has filed a plan of operations with, and re3 ceived approval of the plan from, the Secretary.

4 (b) MINIMAL DISTURBANCE OF SURFACE RE5 SOURCES.—As used in this section, ‘‘minimal disturbance

6 of surface resources’’ means minor, short-term alteration of

7 surface resources. The Secretary may establish categories of

8 activities that do not constitute minimal disturbance of sur9 face resources.

10 (c) ENVIRONMENTAL, LAND USE, AND RECLAMATION

11 REQUIREMENTS.—All operations conducted under a plan

12 of operations referred to in subsection (a) shall be conducted

13 in accordance with all applicable Federal and State envi14 ronmental laws, including—

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

16 2011 et seq.);

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

18 (3) the Comprehensive Environmental Response,

19 Compensation, and Liability Act of 1980 (42 U.S.C.

20 9601 et seq.);

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

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

23 (5) the Federal Land Policy and Management

24 Act of 1976 (43 U.S.C. 1701 et seq.);
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1 (6) the Federal Mine Safety and Health Act of

2 1977 (30 U.S.C. 801 et seq.);

3 (7) the Federal Water Pollution Control Act

4 (commonly referred to as the ‘‘Clean Water Act’’) (33

5 U.S.C. 1251 et seq.);

6 (8) the Forest and Rangeland Renewable Re7 sources Planning Act of 1974 (16 U.S.C. 1600 et

8 seq.);

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

10 703 et seq.);

11 (10) the National Environmental Policy Act of

12 1969 (42 U.S.C. 4321 et seq.);

13 (11) the National Historic Preservation Act (16

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

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

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

17 Act’’) (42 U.S.C. 300f et seq.);

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

19 6901 et seq.);

20 (14) the Toxic Substances Control Act (15 U.S.C.

21 2601 et seq.); and

22 (15) the Uranium Mill Tailings Radiation Con23 trol Act of 1978 (42 U.S.C. 7901 et seq.).

24 (c) INSPECTION AND ENFORCEMENT.—
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1 (1) INSPECTIONS.—The Secretary shall inspect

2 an operation conducted under a plan of operations

3 once each calendar quarter to ensure compliance with

4 the terms of an approved plan of operations. The Sec5 retary may, at the discretion of the Secretary, con6 duct inspections more frequently than once each cal7 endar quarter.

8 (2) ENFORCEMENT.—

9 (A) IN GENERAL.—Subject to subpara10 graphs (B) and (C), a claimant who fails to ob11 tain a plan of operations required by this sec12 tion, engages in unauthorized occupancy under

13 section 9, or who fails to comply with the terms

14 of an approved plan of operations, shall be sub15 ject to a fine of not more than $2,000 per day

16 per violation.

17 (B) CORRECTIVE ACTION.—A claimant shall

18 not be assessed a fine under subparagraph (A) if

19 the violation is corrected, or a means to correct

20 the violation is in place, within 30 days after the

21 date on which the claimant is notified in writing

22 of a violation.

23 (C) HEARING.—No fine shall be assessed

24 under this paragraph unless the claimant has
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1 been given an opportunity for a hearing on the

2 record before the Secretary.

3 (d) RECLAMATION OF LAND PATENTED AFTER ENACT4 MENT.—

5 (1) APPLICABLE LAW.—Land patented after the

6 date of enactment of this Act shall be subject to the

7 mining reclamation laws of the State in which the

8 land is located.

9 (2) ABSENCE OF APPLICABLE STATE LAW.—In

10 the absence of applicable State mining reclamation

11 laws, land patented after the date of enactment of this

12 Act shall be subject to the Federal mining reclamation

13 laws that would have applied had the land remained

14 in Federal ownership.

15 (3) RECITATION.—Each patent issued after the

16 date of enactment of this Act shall recite that as a

17 condition of the patent, the land patented shall be

18 subject to the requirements of this subsection.

19 (4) RECLAMATION.—Public lands disturbed by

20 operations approved by the Secretary shall be re21 claimed as required by applicable Federal and State

22 laws concerning mined land reclamation.
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1 SEC. 8. FINANCIAL ASSURANCES.

2 (a) FINANCIAL ASSURANCES REQUIRED.—Prior to the

3 commencement of any operations on a claim that requires

4 a plan of operation, a claimant shall—

5 (1) furnish evidence of a bond, surety, or other

6 financial guarantee in an amount determined by the

7 Secretary that is not less than the estimated cost to

8 complete reclamation of the land disturbed by oper9 ations as required by this Act and other applicable

10 mining laws; or

11 (2) provide evidence satisfactory to the Secretary

12 that the area to be affected is covered by a bonding

13 pool that will provide for reclamation of the land dis14 turbed by operations as required by this Act and

15 other applicable mining laws.

16 (b) REVIEW.—Not later than 5 years after an assur17 ance is provided under subsection (a), and at least each

18 5 years thereafter, the Secretary shall, after consultation

19 with representatives of the affected States, review the finan20 cial assurances.

21 (c) PHASED GUARANTEES.—The Secretary may adjust

22 the amount of the financial guarantee provided under sub23 section (a) upon a determination by the Secretary that a

24 portion of reclamation is completed as required by this Act

25 and other applicable mining laws.
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1 (d) RELEASE.—Prior to any reduction in, or final re2 lease of, a bond or other financial guarantee, the Secretary

3 shall provide for public notice and comment.

4 SEC. 9. OCCUPANCY AND RESIDENCY OF CLAIMS.

5 (a) PROHIBITION.—Subject to the other provisions of

6 this section and valid existing rights, full- or part-time resi7 dential occupancy of a mining claim, including the con8 struction, presence, or maintenance of a temporary or per9 manent structure that may be used for residential occu10 pancy purposes, shall be prohibited.

11 (b) TRANSITORY OCCUPANCY.—Residential occupancy

12 of a claim for purposes reasonably incident to prospecting,

13 mining, or processing that does not involve surface disturb14 ance extending beyond the period of occupancy shall be per15 mitted for a duration of no more than 14 days upon notice

16 to the Secretary.

17 (c) TEMPORARY OCCUPANCY.—The Secretary may ap18 prove residential occupancy of a claim for a period in excess

19 of 14 days as part of a plan of operations required under

20 applicable law, if the Secretary determines that the occu21 pancy is reasonably required to accomplish such plan. Oc22 cupancy under this subsection shall of no greater duration

23 or extent than is necessary to accomplish the prospecting,

24 mining, or processing incident to the plan.
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1 SEC. 10. MINERAL MATERIALS.

2 (a) DETERMINATIONS.—Section 3 of the Surface Re3 sources Act of 1955 (30 U.S.C. 611) is amended—

4 (1) by striking ‘‘SEC. 3. No deposit’’ and insert5 ing the following:

6 ‘‘SEC. 3 MINERAL MATERIALS.

7 ‘‘(a) VARIETIES OF MINERALS NOT DEEMED VALU8 ABLE MINERAL DEPOSITS.—No deposit’’;

9 (2) in the first sentence, by striking ‘‘or cinders’’

10 and inserting ‘‘cinders, or clay’’; and

11 (3) by adding at the end the following new sub12 section:

13 ‘‘(b) DISPOSAL.—

14 ‘‘(1) IN GENERAL.—Subject to valid existing

15 rights (as defined in paragraph (2)), after the date of

16 enactment of this section, deposits of minerals referred

17 to in subsection (a) (except deposits of bentonite and

18 gypsum) shall be subject to disposal under the terms

19 and conditions of the Materials Act of 1947 (30

20 U.S.C. 601 et seq.).

21 ‘‘(2) VALID EXISTING RIGHTS DEFINED.—As

22 used in paragraph (1), the term ‘valid existing rights’

23 means a mining claim located for a mineral material

24 that—

25 ‘‘(A) has some property that gives the claim

26 distinct and special value as described in sub-
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1 section (a), including so-called ‘block pumice’ as

2 described in subsection (a);

3 ‘‘(B) was properly located and maintained

4 under the general mining laws on the date of en5 actment of this subsection;

6 ‘‘(C) was supported by a discovery of a val7 uable mineral deposit within the meaning of the

8 general mining law on the date of enactment of

9 this subsection; and

10 ‘‘(D) continues to be valid.’’.

11 (b) MINERAL MATERIALS SUBJECT TO RIGHT OF THE

12 UNITED STATES FOR DISPOSAL AND SEVERANCE.—Sub13 sections (b) and (c) of section 4 of the Surface Resources

14 Act of 1955 (30 U.S.C. 612) is amended by inserting ‘‘and

15 mineral material’’ after ‘‘vegetative’’ both places it appears

16 .

17 (c) CONFORMING AMENDMENT.—The first sentence of

18 section 1 of the Materials Act of 1947 (30 U.S.C. 601) is

19 amended by striking ‘‘common varieties of’’.

20 SEC. 11. RECEIPTS.

21 Two-thirds of the receipts from location and mainte22 nance fees required by section 4, royalties required by sec23 tion 5, and payments required by section 6 shall be paid

24 into the Treasury of the United States and deposited as

25 miscellaneous receipts. One-third of the receipts from any
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1 claim, patent, or millsite shall be paid by the Secretary of

2 the Treasury to the treasury of the State in which such

3 claim, patent, or millsite is located.

4 SEC. 12. ABANDONED HARDROCK MINE RECLAMATION PRO5 GRAM.

6 (a) ESTABLISHMENT.—There is established a program

7 to be known as the Abandoned Hardrock Mine Reclamation

8 Program (referred to in this section as the ‘‘Program’’). The

9 Program shall be administered by the Secretary of the Inte10 rior acting through the Director of the Bureau of Land

11 Management.

12 (b) DESCRIPTION OF PROGRAM.—

13 (1) IN GENERAL.—The Secretary is authorized to

14 make grants to eligible States (as defined in sub15 section (e)) for the reclamation and restoration of

16 land and water resources adversely affected by past

17 hardrock mining (other than coal and fluid known

18 minerals). The grants may be used for—

19 (A) the reclamation and restoration of

20 abandoned surface mined areas;

21 (B) the reclamation and restoration of

22 abandoned milling and processing areas;

23 (C) the sealing, filling, and grading of

24 abandoned deep mine entries;
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1 (D) the planting of land adversely affected

2 by past mining to prevent erosion and sedi3 mentation;

4 (E) the prevention, abatement, treatment,

5 and control of water pollution created by aban6 doned mine drainage;

7 (F) the control of surface subsidence due to

8 abandoned deep mines; and

9 (G) such other projects as may be necessary

10 to accomplish this Act.

11 (2) PRIORITIES.—Expenditure of grant funds by

12 the Secretary shall reflect the following priorities in

13 the order stated:

14 (A) The protection of public health, safety,

15 and general welfare from the adverse effects of

16 past hardrock mining practices.

17 (B) The restoration of land and water re18 sources previously degraded by the adverse effects

19 of past minerals and mineral materials mining

20 practices.

21 (c) ELIGIBLE AREAS.—

22 (1) ELIGIBILITY IN GENERAL.—Subject to para23 graph (2), land and water eligible for reclamation ex24 penditures under this section shall be those—
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1 (A) that were mined or processed for min2 erals and mineral materials or abandoned or left

3 in an inadequate reclamation status prior to the

4 date of enactment of this section;

5 (B) for which the Secretary (or State)

6 makes a determination that there is no continu7 ing reclamation responsibility under Federal or

8 State laws; and

9 (C) for which it can be established that the

10 land does not contain minerals that could eco11 nomically be extracted through the reprocessing

12 or remining, unless the consideration is in con13 flict with the priorities set forth under subpara14 graphs (A) and (B) of subsection (b)(2).

15 (2) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—

16 Areas designated for remedial action pursuant to the

17 Uranium Mill Tailing Radiation Control Act of 1978

18 (42 U.S.C. 7901 et seq.) or that have been listed for

19 remedial action pursuant to the Comprehensive Envi20 ronmental Response, Compensation, and Liability

21 Act of 1980 (42 U.S.C. 9601 et seq.) shall not be eligi22 ble for expenditure under this section.

23 (d) ALLOCATION AND EXPENDITURES.—

24 (1) ALLOCATIONS.—
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1 (A) IN GENERAL.—Funds available for ex2 penditure by the Secretary shall be allocated on

3 an annual basis in the form of grants to eligible

4 States, or in the form of expenditures under sub5 section (d)(2), to carry out this Act.

6 (B) DISTRIBUTION.—The Secretary shall

7 distribute the funds equitably to eligible States,

8 giving due consideration to the priorities stated

9 in subsection (b)(2).

10 (2) DIRECT FEDERAL EXPENDITURES.—The Sec11 retary makes grants to States not eligible under sub12 section (e) based on the greatest need for the funds

13 pursuant to the priorities stated in subsection (b)(2).

14 (e) STATE RECLAMATION PROGRAMS.—

15 (1) ELIGIBLE STATES.—For the purpose of sub16 section (d), the term ‘‘eligible States’’ are States that

17 the Secretary determines meets each of the following

18 requirements:

19 (A) Within the State there are mined lands,

20 waters, and facilities eligible for reclamation

21 under subsection (c).

22 (B) The State has developed an inventory of

23 affected areas following the priorities established

24 under subsection (b)(2).
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1 (C) The State has established, and the Sec2 retary has approved, a State abandoned min3 erals and mineral materials mine reclamation

4 program for the purpose of receiving and

5 administering grants under this section.

6 (2) MONITORING.—The Secretary shall monitor

7 the expenditure of State grants to ensure that the

8 grants are being utilized to carry out this Act.

9 (3) STATE PROGRAMS.—The Secretary shall ap10 prove any State abandoned minerals mine reclama11 tion program submitted to the Secretary by a State

12 under this section if the Secretary finds that the State

13 has the means and necessary State legislation to im14 plement the program and that the program complies

15 with this section.

16 (f) AUTHORIZATION OF APPROPRIATIONS.—

17 (1) IN GENERAL.—Subject to paragraph (2),

18 there are authorized to be appropriated such sums as

19 are necessary to carry out this section.

20 (2) LIMITATION.—The amount annually author21 ized to be appropriated under this subsection shall not

22 exceed the sums paid into the Treasury of the United

23 States, and deposited as miscellaneous receipts, pur-
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1 suant to section 11 for the fiscal year preceding the

2 authorization.

Attest:

Secretary.
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