II

104TH CONGRESS

1ST SESSION S. 506

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 SENATE OF THE UNITED STATES

MARCH 7 (legislative day, MARCH 6), 1995

Mr. CRAIG (for himself, Mr. MURKOWSKI, Mr. REID, Mr. BRYAN, Mr. DOMENICI, Mr. BURNS, Mr. THOMAS, Mr. HATCH, Mr. BENNETT, Mr. STEVENS, Mr. KEMPTHORNE, Mr. KYL, and Mr. PRESSLER) introduced the

following bill; which was read twice and referred to the Committee on Energy and Natural 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,
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1 SECTION 101. SHORT TITLE.

2 This Act may be cited as ‘‘The Mining Law Reform

3 Act of 1995’’.

4 SEC. 102. FINDINGS AND PURPOSE.

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

6 (1) a secure and reliable supply of locatable

7 minerals is essential to the industrial base of the

8 United States, national security, and balance of

9 trade;

10 (2) many of the deposits of locatable minerals

11 that may be commercially developed are on Federal

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

13 difficult and expensive to discover, mine, extract and

14 process;

15 (3) the national need for locatable minerals will

16 continue to expand, and without a strong mining in17 dustry the demand for the minerals will exceed do18 mestic sources of supply;

19 (4) mining of locatable minerals is an extremely

20 high-risk, capital-intensive endeavor, which, to at21 tract necessary investment, requires certainty and

22 predictability in access to Federal lands in establish23 ment of mining titles, and in the rights of owners of

24 mining claims or sites to develop minerals;

25 (5) it is in the national interest to foster and

26 encourage 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 mined 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. 103. DEFINITIONS.

16 When used in this Act—

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

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

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

20 first day of September of the following year.

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

22 otherwise in title III, lands and interests 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 United 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 mining laws on or

13 after the effective date of this Act, but not including

14 any mineral held in trust by the United States for

15 any Indian or Indian tribe, as defined in section 2

16 of the Indian Mineral Development Act of 1982 (25

17 U.S.C. 2101), or any mineral owned by any Indian

18 or Indian tribe, as defined in that section, that is

19 subject to a restriction against alienation imposed by

20 the United States, or any mineral owned by any in21 corporated 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, ben4 eficiation, or processing of any locatable mineral, or

5 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 the Interior acting through the Bureau of Land

22 Management or the Minerals Management Service,

23 or 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 lands subject to

4 the 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 ninety 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 ninety

17 days. If at the expiration of ninety days after such notice

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

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

20 or 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 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 of 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 thirtieth 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–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 is 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 or 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 OC23 CUPANCY; 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) DIVESTMENT AND REVERTER.—

12 (1) Notwithstanding any other provision of law,

13 a patent issued under section 204(a) shall be di14 vested if it is used for any purpose other than for

15 conducting mineral activities in good faith and such

16 unauthorized use is not discontinued as provided in

17 paragraph (c)(2). Upon occurrence of the foregoing

18 condition, the State in which such patented estate is

19 located shall have an election to receive such pat20 ented estate as provided in paragraph (c)(4). If such

21 State elects not to receive such patented estate or

22 fails to exercise its election in the time specified in

23 paragraph (c)(5), all right, title and interest in such

24 estate shall revert to the United States.
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1 (2) If the patented estate is used for any pur2 pose other than for conducting mineral activities in

3 good faith, the Secretary shall serve on all owners of

4 interests in such patented estate and the Governor

5 of the State in which the patented estate is located,

6 in the manner prescribed for service of a summons

7 and complaint under the Federal Rules of Civil Pro8 cedure, notice specifying such unauthorized use and

9 providing not more than ninety days in which such

10 unauthorized use must be terminated. The giving of

11 such notice shall constitute final agency action ap12 pealable by any owner of an interest in such pat13 ented estate. The Governor of the State in which

14 such patented estate is located or the Secretary may

15 exercise their respective rights provided herein below

16 in paragraph (c)(4) and paragraph (c)(5) if such un17 authorized use has not been terminated in the time

18 provided in this paragraph, and only after all appeal

19 rights have expired and any appeals of such notice

20 have been finally determined.

21 (3) Within one hundred and eighty days after

22 the expiration of the time provided in the notice

23 given by the Secretary under paragraph (c)(2), or

24 within one hundred and eighty days after all appeals

25 rights have expired and any appeals of such notice
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1 have been finally determined, whichever is the later

2 to occur, the Governor of the State in which such

3 patented estate is located may elect for such State

4 to receive title to such patented estate by filing in

5 the office of the Bureau of Land Management des6 ignated by the Secretary, and recording in the office

7 where the notice or certificate of location for the

8 patented claim or site is recorded under State law

9 a declaration of the State’s election to receive such

10 interest. Upon the filing and recording of such dec11 laration, all right, title, and interest in such pat12 ented estate shall vest in such State, subject to the

13 payment by such State to the United States of one14 half of all revenues, including without limitation,

15 rentals, royalties, and severance or other taxes, from

16 future mineral production from such patented lands.

17 If the Governor of the State for any reason deter18 mines that receipt of such patented estate would not

19 be in the best interests of the State for any reason,

20 the Governor shall file and record a declaration of

21 the State’s election not to receive such interest with22 in one hundred and eighty days and in the same

23 manner as prescribed above.

24 (4) Within one hundred and eighty days after

25 the filing and recording of a declaration by the State
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1 not to receive the patented estate as provided in

2 paragraph (c)(4), or within one hundred and eighty

3 days after the expiration of the one hundred and

4 eighty-day period described in such paragraph if the

5 Governor fails to file and record either of the instru6 ments described in such paragraph, the Secretary

7 may exercise the right of the United States to reen8 ter such patented estate by filing a declaration of re9 entry in the office of the Bureau of Land Manage10 ment designated by the Secretary and recording

11 such declaration where the notice or certificate of lo12 cation for the patented claim or site is recorded

13 under State law. Upon the filing and recording of

14 such declaration, all right, title and interest in such

15 patented estate shall revert to the United States.

16 SEC. 204. PATENTS.

17 (a) IN GENERAL.—Any patent issued by the United

18 States under the general mining laws after the date of

19 enactment of this Act shall be issued only—

20 (1) upon payment by the owner of the mining

21 claim or site of the fair market value for the interest

22 in the land owned by the United States exclusive of

23 and without regard to the mineral deposits in the

24 land or the use of the land for mineral activities;

25 and
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1 (2) subject to reservation by the United States

2 of the royalty provided in title IV, unless the re3 quirements of subsection (b) are met.

4 (b) PATENT TRANSITION.—(1) Notwithstanding any

5 other provision of law, a mineral survey application or pat6 ent application for any unpatented mining claim or site

7 shall be processed and a patent shall be issued pursuant

8 to the general mining laws in effect on the date imme9 diately preceding the date of enactment of this Act and

10 upon payment of fair market value for the surface as pro11 vided in paragraph (a)(1) if—

12 (A) a copy of the notice or certificate of loca13 tion was filed with the Bureau of Land Management

14 pursuant to subsection 314(b) of the Federal Land

15 Policy and Management Act of 1976 (43 U.S.C.

16 1744(b)) for the mining claim or site on or before

17 March 7, 1995; and

18 (B) the owner of the mining claim or site has

19 filed a patent application or mineral survey applica20 tion prior to the date of enactment of this Act, or

21 files such an application with the Bureau of Land

22 Management within one year after the date of enact23 ment of this Act: Provided, That any patent applica24 tion must be filed before or within one year after the

25 date of enactment of this Act, or within one hundred
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1 and eighty days after the owner of the mining claim

2 or site receives the certificate of approval by the Bu3 reau of Land Management of the mineral survey,

4 whichever date is later: Provided further, That a pat5 ent application or mineral survey application shall be

6 deemed timely filed if the application is filed within

7 the prescribed period, notwithstanding that the Bu8 reau of Land Management may require that the ap9 plication be corrected or supplemented and resub10 mitted.

11 (2) During the one year period prescribed in para12 graph (1)(B), or while there is pending a mineral survey

13 or patent application to which this subsection applies, an

14 owner of the mining claim or site may continue work on

15 a mining claim or site directed toward establishment and

16 confirmation of entitlement to a patent, and may amend

17 the applications as necessary.

18 (c) REPEAL OF PATENTING MORATORIUM; PROCESS19 ING OF PATENT APPLICATIONS.—(1) Sections 112 and

20 113 of Public Law 103–332 are hereby repealed. The Sec21 retary shall diligently process all applications for patent

22 and shall make determinations for all such applications

23 regarding patent issuance as expeditiously as possible.

24 (2) The provisions of this Act shall not apply to any

25 mining or mill site claim: (A) for which a patent applica-
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1 tion was filed with the Secretary on or before the date

2 of enactment of Public Law 93–332; and (B) for which

3 the applicant had fully complied with the requirements es4 tablished under sections 2325 and 2326 of the Revised

5 Statutes (30 U.S.C. 29 and 30) for vein or lode claims

6 and sections 2329, 2330, 2331, and 2333 of the Revised

7 Statutes (30 U.S.C. 35, 36, and 37) for placer claims, and

8 section 2337 of the Revised Statutes (30 U.S.C. 42) for

9 mill site claims, whichever the case.

10 TITLE III—SURFACE MANAGEMENT OF

11 MINERAL ACTIVITIES

12 SEC. 301. PURPOSE; APPLICABILITY; OPERATING AND

13 RECLAMATION STANDARDS.

14 (a) PURPOSE.—It is the purpose of this title to pro15 vide for mineral entry, exploration, location and operations

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

17 not unduly hinder such activities or diminish rights, in18 cluding but not limited to all statutory and common law

19 rights of access, obtained under the general mining laws

20 or other authorities, but will assure that such activities

21 are conducted in a manner that will prevent unnecessary

22 and undue degradation of nonmineral surface resources on

23 Federal lands. Compliance with the provisions of this title

24 shall constitute a compliance with—(i) the final sentence

25 of subsection 302(b) of the Federal Land Policy and Man-
27

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1 agement Act (43 U.S.C. 1732(b)); and (ii) any standard

2 related to the management of surface resources within the

3 National Forest System contained in or derived from the

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

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

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

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

8 other law applicable to Federal lands subject to this title

9 within the National Forest System.

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

11 mineral activities on those Federal lands where the surface

12 estate is managed by the Bureau of Land Management

13 or the United States Forest Service.

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

15 lands shall be conducted so as to prevent unnecessary and

16 undue degradation of Federal lands by complying with ap17 plicable requirements of Federal and State environmental

18 protection laws, including but not limited to—

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

20 2011 et seq.);

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

22 (3) the Comprehensive Environmental Re23 sponse, Compensation, and Liability Act of 1980 (42

24 U.S.C. 9601 et seq.);
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1 (4) the Endangered Species Act of 1973 (16

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

3 (5) the Federal Land Policy and Management

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

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

6 1977 (30 U.S.C. 801 et seq.);

7 (7) the Federal Water Pollution Control Act

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

9 (33 U.S.C. 1251 et seq.);

10 (8) the Forest and Rangeland Renewable Re11 sources Planning Act of 1974 (16 U.S.C. 1600 et

12 seq.);

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

14 703 et seq.);

15 (10) the National Environmental Policy Act of

16 1969 (42 U.S.C. 4321 et seq.);

17 (11) the National Historic Preservation Act (16

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

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

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

21 Act’’) (42 U.S.C. 300f et seq.);

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

23 6901 et seq.);

24 (14) the Toxic Substances Control Act (15

25 U.S.C. 2601 et seq.); and
29

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1 (15) the Uranium Mill Tailings Radiation Con2 trol Act of 1978 (42 U.S.C. 7901 et seq.).

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

4 and undue degradation of surface resources, Federal lands

5 disturbed by mineral activities shall be reclaimed, to the

6 extent economically and technically practicable, in compli7 ance with the provisions of subsection 304(a).

8 (e) DESIGNATED LANDS.—Where any mineral activi9 ties are to be conducted on Federal lands administered

10 by the Bureau of Land Management or the Forest Service

11 specifically designated by any special Act of Congress that

12 applies a specific land management, resource protection

13 or reclamation standard (such as wild and scenic rivers

14 and designated wilderness) to such lands, such manage15 ment or protection standard shall apply to the extent of

16 any conflict with the provisions of this title.

17 SEC. 302. AUTHORIZATION FOR MINERAL ACTIVITIES.

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

19 subsections (b) and (c) of this section, no person may en20 gage in mineral activities on Federal lands unless that per21 son has filed a plan of operations with, and received ap22 proval of the plan from, the Secretary in accordance with

23 section 303.

24 (b) NOTICE REQUIRED.—
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1 (1) A person may engage in mineral activities

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

3 readily reclaimable impacts on surface resources, in4 cluding but not limited to initial exploratory test

5 hole drilling and road construction, only after filing

6 with the Secretary a notice of intent to conduct such

7 activities.

8 (2) Such notice shall include—

9 (A) the name and mailing address of the

10 operator;

11 (B) when applicable, the name of the min12 ing claim(s) or site(s), and serial number(s) as13 signed to the mining claims(s) or site(s) on

14 which mineral activities are proposed;

15 (C) a statement describing the activities

16 proposed and their location in sufficient detail

17 to locate the operations on the ground, and giv18 ing the approximate date when activities will

19 begin. The statement shall include a description

20 and the location of any access routes to be con21 structed or improved and the type of equipment

22 to be used in their construction;

23 (D) a statement that reclamation of all

24 areas will be completed as required by sub25 section 301(d), and that mineral activities will
31

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1 comply with the operations standard as re2 quired by subsection 301(c); and

3 (E) evidence of financial assurance as re4 quired by section 306.

5 (3) Failure of the operator to conduct mineral

6 activities in conformance with the notice and the re7 quirements of this title may cause the operator to be

8 subject to enforcement pursuant to section 308.

9 (4) The Secretary shall review the notice within

10 thirty days of receipt. If the Secretary determines

11 that the proposed mineral activities will, or are likely

12 to cause more than minor, short term, readily re13 claimable impacts on surface resources, the Sec14 retary shall provide a statement of reasons explain15 ing why the mineral activities cannot proceed under

16 notice and shall require in writing that the operator

17 submit a proposed plan of operations in accordance

18 with the requirements of this section. Failure of the

19 Secretary to respond in writing within thirty days of

20 receipt of the notice shall be deemed to be approval

21 of the mineral activities proposed in the notice.

22 (5) The Secretary shall establish by regulation

23 from time to time additional categories of mineral

24 activities which may be conducted under notice

25 based on the amount of surface to be disturbed, the
32

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

2 reclamation, and other relevant factors.

3 (c) OTHER MINERAL ACTIVITIES.—Notwithstanding

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

5 conduct mineral activities on Federal lands which cause

6 only a minimal disturbance of surface resources, including

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

8 geophysical or geochemical surveys; environmental base9 line monitoring; activities related to the gathering of data

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

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

12 applicable Federal or State environmental law or regula13 tion; and other activities designated by the Secretary,

14 without filing a notice or plan of operations with the Sec15 retary.

16 (d) TRANSFER OF RIGHTS.—An operator may trans17 fer, assign or sell any rights associated with a notice with18 out approval by the Secretary: Provided, That the succes19 sor in interest agrees in writing to assume the liabilities

20 and reclamation responsibilities established under sub21 section (b) and provide evidence of financial assurance as

22 required under section 306. The transfer, assignment or

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

24 writing and evidence of financial assurance with the Sec25 retary. The financial assurance of the transferee shall be
33

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1 substituted for the assurance previously submitted by the

2 transferor and the financial assurance of the transferor

3 shall be fully released.

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

5 APPROVAL

6 (a) PLANS OF OPERATIONS REQUIREMENTS.—A

7 plan of operations required under this title shall contain—

8 (1) the name and mailing address of the opera9 tor,

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

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

12 the mining claim(s) or site(s) on which mineral ac13 tivities are proposed;

14 (3) a general description of the mineral activi15 ties proposed, including the anticipated periods dur16 ing which the proposed mineral activities will occur;

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

18 routes of surface access, or other means of access,

19 and identifying areas where surface disturbance will

20 occur;

21 (5) information describing the land and water

22 resources of the area expected to be disturbed by the

23 proposed mineral activities and any proposed mitiga24 tion measures necessary to comply with the require25 ments of this title;
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1 (6) a reclamation plan which includes proposed

2 measures to reclaim Federal lands disturbed by the

3 proposed mineral activities as required under sub4 section 301(d);

5 (7) evidence of adequate financial assurance as

6 required under section 306; and

7 (8) a monitoring plan to assure compliance with

8 the requirements of the plan of operations.

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

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

11 shall promptly acknowledge receipt thereof to the opera12 tor. The Secretary shall promptly review the proposed plan

13 of operations and shall notify the operator within thirty

14 days—

15 (1) that the plan of operations has been ap16 proved as submitted;

17 (2) of all changes in, or additions to the pro18 posed plan of operations necessary to comply with

19 the requirements of this title; or

20 (3) that a specified reasonable amount of time

21 is necessary to complete the review, setting forth the

22 circumstances which justify the additional time.

23 (c) MINERAL ACTIVITIES PENDING REVIEW.—Any

24 operator who has submitted a plan of operations under

25 this section may continue to conduct mineral activities
35

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

2 of section 302 within the geographic area covered by the

3 proposed plan of operations pending its approval.

4 (d) PLAN OF OPERATIONS APPROVAL.—(1) The Sec5 retary shall approve a proposed plan of operations within

6 a reasonable period of time if—

7 (A) the proposed plan of operations substan8 tially complies with the requirements of this title;

9 and

10 (B) the applicant has complied with the re11 quirements of section 306 concerning financial as12 surance.

13 (2) If, after review, the Secretary determines

14 that a proposed plan of operations will not substan15 tially comply with the requirements of this title, the

16 Secretary shall specify all deficiencies in the pro17 posed plan, shall request the operator to modify the

18 proposed plan to comply with the requirements of

19 this title and shall specify all necessary modifications

20 to the proposed plan.

21 (e) MODIFICATIONS TO AN APPROVED PLAN OF OP22 ERATIONS.—

23 (1) MINOR MODIFICATIONS.—At any time dur24 ing which mineral activities are being conducted

25 under an approved plan of operations, an operator
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1 may make minor modifications to the approved plan

2 of operations by notifying the Secretary. Failure of

3 the Secretary to respond in writing within thirty

4 days of receipt of the proposed minor modification

5 shall be deemed to be approval of the minor modi6 fication. For purposes of this title, a ‘‘minor modi7 fication’’ is a change to the approved plan of oper8 ations that is not likely to result in significant im9 pacts to surface resources different from those pre10 viously considered in the approved plan of oper11 ations.

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

13 Secretary determines that a proposed minor modi14 fication may be significant, the Secretary shall pro15 vide a statement of reasons and may require the op16 erator to submit a significant modification to the

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

18 subsection.

19 (3) SIGNIFICANT MODIFICATION.—At any time

20 during activities under an approved plan of oper21 ations, the operator may propose a significant modi22 fication to the approved plan of operations. A sig23 nificant modification must be submitted, reviewed

24 and approved in the same manner as a plan of oper25 ations under this section, except that the modifica-
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1 tion need not include information required under

2 subsection 303(a) if the modification requires no

3 change to such information: Provided, however, That

4 approval of such modification shall neither require

5 nor be denied or conditioned upon retrofit, redesign,

6 reconstruction, closure or change in the operation of

7 any facility, structure or mineral activity previously

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

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

10 operations which is likely to result in significant im11 pacts to surface resources different from those pre12 viously considered in the approved plan of oper13 ations.

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

15 during which mineral activities are being conducted

16 under an approved plan of operations, the Secretary

17 may request that an operator submit a modification

18 to the approved plan of operations together with a

19 written determination that such modification is nec20 essary to prevent unnecessary and undue degrada21 tion of Federal lands as required by section 301.

22 The Secretary’s determination that a modification is

23 necessary shall be subject to notice to the operator

24 and a right to a hearing at the request of the opera25 tor. If the Secretary has requested a modification
38

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1 under this paragraph, mineral activities may con2 tinue in accordance with the approved plan of oper3 ations until the modification is submitted, reviewed

4 and approved.

5 (f) TERM.—An approved plan of operations shall re6 main in effect as approved until the mineral activities sub7 ject to the approved plan of operations are completed or

8 until the plan of operations is modified.

9 (g) TRANSFER OF RIGHTS.—An operator may trans10 fer, assign or sell any rights associated with an approved

11 plan of operations without approval by the Secretary, pro12 vided that the successor in interest agrees in writing to

13 assume the liabilities and reclamation responsibilities es14 tablished by the approved plan of operations and provide

15 evidence of financial assurance as required under section

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

17 effective prior to the filing of such writing and evidence

18 of financial assurance with the Secretary. The financial

19 assurance of the transferee shall be substituted for the as20 surance previously submitted by the transferor, and the

21 financial assurance of the transferor shall be fully re22 leased.

23 SEC. 304. RECLAMATION.

24 A reclamation plan submitted with a proposed plan

25 of operations pursuant to section 303 shall include appro-
39

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1 priate measures to comply with substantive reclamation

2 requirements of the State in which the proposed mineral

3 activities will be located to the extent that those require4 ments are not in conflict with the purposes of the general

5 mining laws and this Act, and the applicable provisions

6 of State and Federal environmental protection laws, in7 cluding those Federal laws listed in subsection 301(c). A

8 proposed reclamation plan that complies with such State

9 and Federal requirements shall be deemed sufficient to

10 prevent unnecessary and undue degradation and to comply

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

12 issued by a State or Federal agency of compliance with

13 such laws shall be deemed compliance with this section.

14 SEC. 305. TRANSITION RULES.

15 (a) APPLICABILITY TO EXISTING OPERATIONS.—

16 Mineral activities for which an operator is authorized to

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

18 been approved prior to the date of enactment of this Act

19 shall continue under the terms and conditions of such no20 tice or plan. Notices which were filed within thirty days

21 of the effective date of enactment, and plans of operations

22 which have been submitted before but not approved on the

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

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

25 of this Act. Significant modifications to approved plans
40

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1 of operations shall be submitted, reviewed and approved

2 pursuant to the applicable requirements of this title: Pro3 vided, however, That approval of such modifications shall

4 neither require nor be conditioned upon retrofit, redesign,

5 reconstruction or change in the operation of any facility,

6 structure or mineral activity previously approved.

7 (b) FINANCIAL ASSURANCE AND ENFORCEMENT.—

8 Notwithstanding the provisions of subsection (a), the en9 forcement provisions of section 308 shall apply to all min10 eral activities on the effective date of this Act and, within

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

12 operating under notice or a plan of operations shall submit

13 to the Secretary evidence of adequate financial assurance

14 as may be required under section 306.

15 SEC. 306. FINANCIAL ASSURANCE.

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

17 Prior to the commencement of any mineral activities re18 quiring a plan of operations, an operator shall furnish evi19 dence to the Secretary of a bond, surety, self-insurance

20 or other financial assurance (including the use of bonding

21 pools or a financial assurance instrument posted with a

22 State or another Federal agency) in an amount sufficient

23 to cover the reasonably estimated cost to complete rec24 lamation as required by the plan of operations.
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1 (2)(A) Prior to conducting notice activities subject to

2 subsection 302(b), the operator shall comply with the fi3 nancial assurance requirements promulgated by the Sec4 retary applicable to such notice activities. Such require5 ments shall allow operators or owners of mining claims

6 or sites to use bonding pools or statewide or nationwide

7 bonds. Statewide or nationwide bonds shall be in amounts

8 fixed by regulation that cover notice activities at multiple

9 locations statewide or nationwide, as appropriate.

10 (B) For such notice activities conducted between the

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

12 such regulations, the operator or owner of the mining

13 claim or site shall provide evidence of financial assurance,

14 in the form and manner authorized by the Secretary’s reg15 ulations in effect on the date of enactment of this Act,

16 in an amount sufficient to cover the reasonably estimated

17 cost of reclamation required as a result of such notice

18 activities.

19 (b) REVIEW AND ADJUSTMENT.—Not later than five

20 years after the financial assurance is provided, and each

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

22 the Secretary shall review its adequacy and may increase

23 or decrease the amount of the financial assurance based

24 upon changed circumstances, including a determination by
42

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1 the Secretary that a portion of the reclamation has been

2 completed.

3 (c) FINANCIAL ASSURANCE FOR INCREMENTS.—Fi4 nancial assurance for increments of mineral activities may

5 be authorized if the financial assurance for an increment

6 covers all reclamation costs within the area covered by the

7 notice or plan or operations for that increment. After rec8 lamation is completed, an operator may apply for, and the

9 Secretary may grant, release the financial assurance for

10 the completed increment.

11 SEC. 307. FEDERAL AND STATE AUTHORITY AND COOPERA12 TION.

13 (a) COOPERATIVE AGREEMENT.—

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

15 shall enter into a cooperative agreement with that

16 State for joint administration of the requirements of

17 this title relating to mineral activities requiring a no18 tice or plan of operations, financial assurances, rec19 lamation, inspection and enforcement if the Sec20 retary determines in writing that such State has the

21 capability to implement the agreement in a manner

22 consistent with the purposes of this title. A coopera23 tive agreement may cover (i) some or all of the re24 sponsibilities enumerated in this paragraph, and (ii)
43

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1 some or all mineral activities on Federal land within

2 a State.

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

4 the Secretary may jointly administer mineral activi5 ties on Federal lands. The State and the Secretary

6 shall make an independent and timely decision re7 garding individual plans of operation under this

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

9 under applicable Federal environmental protection

10 statutes be restricted.

11 (3) Under a cooperative agreement, the State

12 may conduct inspections and monitoring activities,

13 and take enforcement actions deemed necessary to

14 determine or require compliance with the require15 ments of this Act, other than recommending civil ac16 tions under section 308. The Secretary may not take

17 enforcement action where a State under a coopera18 tive agreement already has initiated appropriate en19 forcement action unless the State requests that the

20 Secretary recommend initiation of a civil action

21 under section 308.

22 (4) Under a cooperative agreement, the finan23 cial assurance sufficient to cover reclamation of Fed24 eral lands shall be calculated based on the comple25 tion of both the Federal and State reclamation re-
44

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1 quirements, and may be held as one bond. The fi2 nancial assurance shall be approved by both the Sec3 retary and the State prior to approval of a plan of

4 operations, and the Secretary and the State may

5 agree that the financial assurance may not be re6 leased without Federal and State concurrence. Fi7 nancial assurance that duplicates financial assurance

8 required under other State or Federal law shall not

9 be required under this title.

10 (5) If a cooperative agreement is entered into

11 pursuant to this section, the Secretary shall, subject

12 to appropriations, reimburse the State for its regu13 latory costs in an amount approximating, but not ex14 ceeding, the reasonably estimated amount the Sec15 retary would have reasonably expended absent a co16 operative agreement.

17 (6) Each cooperative agreement entered into

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

19 Secretary shall take appropriate action, including

20 termination of the agreement, upon a determination

21 that State performance under the agreement is not

22 in substantial compliance with the agreement or the

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

24 any such action, the Secretary shall provide notice to
45

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1 the State allowing the State a reasonable time to

2 come into substantial compliance.

3 (b) EXISTING AGREEMENTS.—Any cooperative

4 agreement or memorandum of understanding between the

5 Secretary and any State related to the surface manage6 ment of mineral activities on Federal lands subject to this

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

8 continue in force unless the Secretary determines such

9 agreement or memorandum of understanding is inconsist10 ent with the provisions of this title.

11 SEC. 308. ENFORCEMENT, ADMINISTRATIVE AND JUDICIAL

12 REVIEW.

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

14 State has entered into a cooperative agreement pursuant

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

16 inspection each year of mineral activities for which a plan

17 of operations or notice is required under section 302 to

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

19 The operator shall grant access at reasonable times and

20 under reasonable circumstances to the appropriate des21 ignated representative of the Secretary or State when re22 quested. The Secretary or the State must give reasonable

23 notice to the operator before commencing any inspection.

24 The Secretary or the State may inspect more frequently,

25 if warranted, and may modify the inspection schedule as
46

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1 necessary for mineral activities that are conducted on a

2 seasonal basis.

3 (b) COMPLIANCE ORDERS.—

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

5 authorized by subsection (a), the Secretary finds

6 that the operator is in violation of any term or con7 dition of a plan of operations or notice, the Sec8 retary may issue an order requiring the operator to

9 comply with such requirement, or may request the

10 Attorney General to bring a civil action in accord11 ance with subsection (c): Provided, however, That

12 the Secretary shall not request commencement of a

13 civil action if (i) the violation is corrected within

14 thirty days, and (ii) the violation is neither causing

15 nor likely to cause irreparable harm to the environ16 ment or a threat to human health or safety.

17 (2) Any order issued under this subsection shall

18 state with reasonable specificity the nature of the

19 violation and shall require compliance within a rea20 sonable period of time specified in the order. The

21 Secretary may extend the time specified for compli22 ance for a reasonable period, considering the serious23 ness of the violation and any good faith efforts to

24 comply with the terms and conditions of the plan of

25 operation.
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1 (c) CIVIL ACTIONS.—At the request of the Secretary,

2 the Attorney General may institute a civil action in the

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

4 the affected operation is located for a temporary restrain5 ing order, injunction, civil penalties as provided in sub6 section (d), or other appropriate remedy, when the opera7 tor (i) violates or refuses to comply with an order issued

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

9 allow an inspection authorized under subsection (a).

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

11 comply with the requirements applicable to mineral activi12 ties conducted under notice pursuant to section 302 or the

13 terms or conditions a plan of operations approved under

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

15 a reasonable period allowed for abatement as specified

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

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

18 of such noncompliance. In determining the amount of the

19 penalty, the court shall consider the existence of previous

20 violations at the operation, the seriousness of the violation,

21 the likelihood of irreparable harm to the environment and

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

23 the operator was negligent, and the good faith of the oper24 ator.

25 (e) ADMINISTRATIVE REVIEW.—
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1 (1) Any operator issued a compliance order

2 under this section may apply to the Secretary for re3 view of the order within thirty days of receipt there4 of, or as the case may be, within thirty days of such

5 order being modified.

6 (2) The Secretary shall provide an opportunity

7 for a hearing on the record at the request of the

8 operator.

9 (3) Pending completion of any review proceed10 ings under this subsection, the operator may file

11 with the Secretary a written request that the Sec12 retary grant temporary relief from any order issued

13 under this section, supported by a detailed statement

14 of reasons for such relief. The Secretary shall expe15 ditiously issue an order or decision granting or deny16 ing such relief.

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

18 under this title shall be subject to judicial review pursuant

19 to 5 U.S.C. 701–706 and 28 U.S.C. 1331.

20 SEC. 309. SAVINGS CLAUSE.

21 The provisions of this title shall supersede any provi22 sion of the general mining laws or the Federal Land Policy

23 and Management Act, and any standard related to the

24 management of surface resources within the National For25 est System contained in or derived from the Organic Ad-
49

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1 ministration Act (16 U.S.C. 473 et seq.), the Multiple2 Use Sustained-Yield Act of 1960 (16 U.S.C. 528 et seq.),

3 the Forest and Rangeland Renewable Resources Planning

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

5 applicable to Federal lands subject to this title within the

6 National Forest System, and any rules promulgated under

7 such laws, only to the extent that such laws or rules con8 flict or are inconsistent with the provisions of this title.

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

10 enactment of this Act which govern surface management

11 of mineral activities shall remain in effect under the au12 thority of this title.

13 TITLE IV—ROYALTY

14 SEC. 401. ROYALTY.

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

16 locatable minerals (including associated minerals) from

17 any unpatented mining claim (other than those from Fed18 eral lands to which subsection 204(b) applies) or any min19 ing claim patented under subsection 204(a) shall be sub20 ject to a royalty of three percent of the Net Proceeds from

21 such production mined and sold from such claim: Pro22 vided, That for any mine with an annual Gross Yield of

23 less than $500,000 the royalty shall be waived: Provided

24 further, That no royalty shall be payable pursuant to this

25 title with respect to minerals processed at a facility by the
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1 same person or entity which extracted the minerals if an

2 urban development action grant has been made under sec3 tion 119 of the Housing and Community Development Act

4 of 1974 with respect to any portion of such facility. The

5 obligation to pay royalties hereunder shall accrue only

6 upon the sale of locatable minerals or mineral products

7 produced from a mining claim subject to such royalty, and

8 not upon the stockpiling of the same for future processing.

9 (b) DEFEINITIONS.—For the purposes of this title,

10 the term—

11 (1) ‘‘Gross Yield’’ shall mean—

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

13 ore, concentrates or bullion, or the sales of

14 other locatable minerals in the form of ore or

15 concentrates, the actual proceeds of sale of such

16 ore, concentrates or bullion;

17 (B) in the case of sales of beneficiated

18 products from locatable minerals other than

19 those subject to section 401(b)(1)(A), such as

20 cathode, anode or copper rod or wire, or other

21 products fabricated from the locatable minerals,

22 the gross income from mining derived from the

23 first commercially marketable product deter24 mined in the same manner as under section 613

25 of the Internal Revenue Code;
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1 (C) in the event that ore, concentrates,

2 beneficiated or fabricated products or locatable

3 minerals are used or consumed and are not sold

4 in an arms length transaction, the reasonable

5 fair market value of the ore, concentrates,

6 beneficiated or fabricated products at the mine

7 or wellhead determined from the first applicable

8 of the follows:

9 (i) published or other competitive sell10 ing prices of locatable minerals of like kind

11 and grade;

12 (ii) any proceeds of sale;

13 (iii) value received in exchange for any

14 thing or service; or

15 (iv) the value of any locatable min16 erals in kind or used or consumed in a

17 manufacturing process or in providing a

18 service; and

19 (D) without limiting the foregoing, the

20 profits or losses incurred in connection with for21 ward sales, futures or commodity options trad22 ing, metal loans, or any other price hedging or

23 speculative activity or arrangement shall not be

24 included in Gross Yield.
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1 (2) ‘‘Net Proceeds’’ shall mean Gross Yield, less

2 the following deductions for costs incurred prior to

3 sale or value determination, and none other:

4 (A) The actual cost of extracting the

5 locatable mineral.

6 (B) The actual cost of transporting the

7 locatable mineral from the claim to the place or

8 places of reduction, beneficiation, refining, and

9 sale.

10 (C) The actual cost of reduction,

11 beneficiation, refining, and sale of the locatable

12 mineral.

13 (D) The actual cost of marketing and de14 livering the locatable mineral and the conver15 sion of the locatable mineral into money.

16 (E) The actual cost of maintenance and re17 pairs of—

18 (i) all machinery, equipment, appara19 tus, and facilities used in the mine;

20 (ii) all crushing, milling, leaching, re21 fining, smelting, and reduction works,

22 plants, and facilities; and

23 (iii) all facilities and equipment for

24 transportation;
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1 (F) The actual cost for support personnel

2 and support services at the mine site, including

3 without limitation, accounting, assaying, draft4 ing and mapping, computer services surveying,

5 housing, camp, and office expenses, safety, and

6 security.

7 (G) The actual cost of engineering, sam8 pling, and assaying pertaining to development

9 and production.

10 (H) The actual cost of permitting, rec11 lamation, environmental compliance and mon12 itoring.

13 (I) The actual cost of fire and other insur14 ance on the machinery, equipment, apparatus,

15 works, plants, and facilities mentioned in sub16 paragraph (E).

17 (J) Depreciation of the original capitalized

18 cost of the machinery, equipment, apparatus,

19 works, plants, and facilities listed in subpara20 graph (E). The annual depreciation charge shall

21 consist of amortization of the original cost in

22 the manner consistent with the Internal Reve23 nue Code of 1986, as amended from time to

24 time. The probable life of the property rep-
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1 resented by the original cost must be considered

2 in computing the depreciation charge.

3 (K) All money expended for premiums for

4 industrial insurance, and the owner paid cost of

5 hospital and medical attention and accident

6 benefits and group insurance for all employees

7 engaged in the production or processing of

8 locatable minerals.

9 (L) All money paid as contributions or

10 payments under State unemployment com11 pensation law, all money paid as contributions

12 under the Federal Social Security Act, and all

13 money paid to State government in real prop14 erty taxes and severance or other taxes meas15 ured or levied on production, or Federal excise

16 tax payments and payments as fees or charges

17 for use of the Federal lands from which the

18 locatable minerals are produced.

19 (M) The actual cost of developmental work

20 in or about the mine or upon a group of mines

21 when operated as a unit.

22 (c) LIMITATIONS AND ALLOCATIONS OF NET PRO23 CEEDS, GROSS YIELD, AND ALLOWABLE COSTS—

24 (1) The several deductions listed in paragraph

25 (b)(2) are intended to allow a reasonable allowance
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1 for overhead: Provided, That they do not include any

2 expenditures for salaries, or any portion of salaries,

3 of any person not actually engaged in—

4 (A) the working of the mine;

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

6 plants, mills, smelters, or reduction works;

7 (C) the operating of the facilities or equip8 ment for transportation; or

9 (D) superintending the management of any

10 of those operations described in subparagraphs

11 (A)–(C).

12 (2) Ores or solutions of locatable minerals may

13 be extracted from mines comprised of mining claims

14 and lands other than mining claims. Ore or solutions

15 of locatable minerals may be commingled with ores

16 or solutions from lands other than mining claims:

17 Provided, That the operator shall first sample, weigh

18 or measure, and assay the same in accordance with

19 accepted industry standards. In the event of such

20 production from mines comprised of mining claims

21 and other lands and/or in the event of commingling

22 as provided under this paragraph, Gross Yield, al23 lowable costs and Net Proceeds for royalty purposes

24 shall be allocated in proportion to mineral products
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1 recovered from the mining claims in accordance with

2 accepted industry standards.

3 ((d) LIABILITY FOR ROYALTY PAYMENTS.—The

4 owner or co-owners of a mining claim subject to the roy5 alty required under this section shall be liable for royalty

6 due to the United States on locatable minerals produced

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

8 the interest in such claim owned. As used in this sub9 section, ‘‘owner’’ or ‘‘co-owner’’ shall mean the person or

10 persons owning the right to mine locatable minerals from

11 such claim and receiving the Net Proceeds of such sale.

12 Any person who makes any royalty payment attributable

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

14 shall not become liable to the United States for such roy15 alty as a result of making such payment on behalf of such

16 owner or co-owners.

17 (e) TIME AND MANNER OF PAYMENT.—

18 (1) Royalty payments for production from any

19 mining claim subject to the royalty required in this

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

21 of the month following the end of the calendar quar22 ter in which the Net Proceeds from the sale of such

23 production are received by the owner or co-owners.

24 Royalty payments may be made based upon good

25 faith estimates of the Gross Yield, Net Proceeds and
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1 the quantity of ore, concentrates, or other

2 beneficiated or fabricated products of locatable min3 erals, subject to adjustment when the actual annual

4 Gross Yield, Net Proceeds and quantity are deter5 mined by the owner of the mining claim or site or

6 co-owners.

7 (2) Each royalty payment or adjustment shall

8 be accompanied by a statement containing—

9 (A) the name and Bureau of Land Man10 agement serial number of the mining claim or

11 claims from which ores, concentrates, solutions

12 or beneficiated products of locatable minerals

13 subject to the royalty required in this section

14 were produced and sold for the period covered

15 by such payment or adjustment;

16 (B) the estimated (or actual, if deter17 mined) quantity of such ore, concentrates, solu18 tions or beneficiated or fabricated products pro19 duced and sold from such mining claim or

20 claims for such period;

21 (C) the estimated (or actual, if deter22 mined) Gross Yield from the production and

23 sale of such ore, concentrates, solutions or

24 beneficiated products for such period;
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1 (D) the estimated (or actual, if deter2 mined) Net proceeds from the production and

3 sale of such ores, concentrates, solutions or

4 beneficiated products for such period, including

5 an itemization of the applicable deductions de6 scribed in paragraph (b)(2); and

7 (E) the estimated (or actual, if deter8 mined) royalty due to the United States, or ad9 justment due to the United States or such

10 owner or co-owners, for such period.

11 (3) In lieu of receiving a refund under sub12 section (g), the owner of co-owners may elect to

13 apply any adjustment due to such owner or co-own14 ers as an offset against royalties due from such

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

16 Act, regardless of whether such royalties are due for

17 production and sale from the same mining claim or

18 claims.

19 (f) RECORDKEEPING AND REPORTING REQUIRE20 MENTS.—

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

22 involved in the conduct of mineral activities, trans23 portation, purchase, or sale of locatable minerals,

24 concentrates, or products derived therefrom, subject

25 to the royalty required in this section, through the
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1 point of royalty computation, shall establish and

2 maintain any records, make any reports, and provide

3 any information that the Secretary may reasonably

4 require for the purposes of implementing this section

5 or determining compliance with regulations or orders

6 under this section. Upon the request of the Sec7 retary when conducting an audit or investigation

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

9 reports, or information which may be required by

10 this section shall be made available for inspection

11 and duplication by the Secretary.

12 (2) Records required by the Secretary under

13 this section shall be maintained for three years after

14 the records are generated unless the Secretary noti15 fies the record holder that he or she has initiated an

16 audit or investigation specifically identifying and in17 volving such records and that such records must be

18 maintained for a longer period. When an audit or in19 vestigation is under way, such records shall be main20 tained until the earlier of the date that the Secretary

21 releases the record holder of the obligation to main22 tain such records or the date that the limitations pe23 riod applicable to such audit or investigation under

24 subsection (h) expires.
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1 (g) INTEREST ASSESSMENTS.—In any case in which

2 royalty payments are not received by the Secretary on the

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

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

5 interest on such late payments computed at the rate pub6 lished by the Department of the Treasury as the ‘‘Treas7 ury Current Value of Funds Rate.’’ In the case of an

8 underpayment or partial payment, interest shall be com9 puted and charged only on the amount of the deficiency

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

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

12 underpayment charge or penalty shall be charged. In any

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

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

15 the outcome of any appeal in which the Secretary does

16 not prevail, the Secretary shall promptly refund such over17 payments or pay such amounts to the person or persons

18 entitled thereto, together with interest thereon for the

19 number of days such overpayment or amounts were held

20 by the Secretary, with the addition of interest charged

21 against the United States computed at the rate published

22 by the Department of the Treasury as the ‘‘Treasury Cur23 rent Value of Funds Rate.’’

24 (h) AUDITS, PAYMENT DEMANDS AND LIMITA25 TIONS.—
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1 (1) The Secretary may conduct, after notice,

2 any audit reasonably necessary and appropriate to

3 verify the payments required under this section.

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

5 on locatable minerals produced and sold from any

6 mining claim subject to royalty required by this sec7 tion must be sent or issued not later than three

8 years after the date such royalty was due and must

9 specifically identify the production involved, the roy10 alty allegedly due and the basis for the claim. No ac11 tion, proceeding or claim for royalty due on locatable

12 minerals produced and sold, or relating to such pro13 duction, may be brought by the United States, in14 cluding but not limited to any claim for additional

15 royalties or claim of the right to offset the amount

16 of such additional royalties against amounts owed to

17 any person by the United States, unless judicial suit

18 or administrative proceedings are commenced to re19 cover specific amounts claimed to be due prior to the

20 expiration of three years from the date such royalty

21 is alleged to have been due.

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

23 which a patent is issued pursuant to subsection 204(b)

24 shall not be subject to the obligation to pay the royalty

25 pursuant to this section. Royalty payments for any claim
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1 processed under subsection 204(b) shall be suspended

2 pending final determination of the right to patent. For

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

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

5 this section on—

6 (1) previous production between the date of en7 actment of this Act and the date of such final deci8 sion denying the issuance of a patent, plus interest

9 computed at the rate published by the Department

10 of the Treasury as the ‘‘Treasury Current Value of

11 Funds Rate’’; and

12 (2) production subsequent to the date of such

13 decision.

14 (j) DISBURSEMENT OF REVENUES.—The receipts

15 from royalties collected under this section shall be dis16 bursed as follows:

17 (1) One-third of such receipts shall be paid onto

18 the Treasury of the United States and deposited as

19 miscellaneous receipts.

20 (2) One-third of such receipts shall be paid by

21 the Secretary of the Treasury to the State in which

22 the mining claim from which production occurred is

23 located.

24 (3) One-third of such receipts shall be paid into

25 a State Fund or the Federal Fund in accordance
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1 with Title V; until termination as provided in section

2 506.

3 (k) NO IMPLIED COVENANTS.—The owner of a min4 ing claim subject to the provisions of this title shall have

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

6 produce or market locatable minerals as a result of the

7 obligation to pay royalty hereunder, and the timing, na8 ture, extent and manner of exploring, developing, mining

9 and marketing such locatable minerals shall be in the sole

10 discretion of the claim owner.

11 TITLE V—ABANDONED LOCATABLE MIN12 ERALS MINE RECLAMATION PROGRAM

13 SEC. 501. ABANDONED LOCATABLE MINERALS MINE REC14 LAMATION FUND.

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

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

17 which wishes to become eligible to receive such proceeds

18 allocated by paragraph 401(j)(3) shall establish and main19 tain an interest-bearing abandoned locatable mineral mine

20 reclamation fund (hereinafter referred to in this Title as

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

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

23 books of the Treasury of the United States an interest24 bearing fund to be known as the Abandoned Locatable

25 Minerals Mine Reclamation Fund (hereinafter referred to
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1 in this title as ‘‘Federal Fund’’) which shall consist of pro2 ceeds allocated by paragraph 401(j)(3) from mining

3 claims in a State where a State Fund has not been estab4 lished or maintained under subsection (a).

5 SEC. 502. ALLOCATION AND PAYMENTS.

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

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

8 by the Secretary of the Treasury to the State Fund estab9 lished pursuant to subsection 501(a) for the State where

10 the mining claim from which the production occurred is

11 located. Payments to States under this subsection with re12 spect to any moneys received by the United States, shall

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

14 in which such moneys are warranted by the United States

15 Treasury to the Secretary of the Interior as having been

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

17 under challenge, which shall be placed in a suspense ac18 count pending resolution of such challenge. Such warrants

19 shall be issued by the United States Treasury not later

20 than ten days after receipt of such moneys by the Treas21 ury. Moneys placed in a suspense account which are deter22 mined to be due the United States shall be payable to a

23 State Fund not later than fifteen days after such challenge

24 is resolved. Any such amount placed in a suspense account

25 pending resolution shall bear interest until the challenge
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1 is resolved. In determining the amount of payments to

2 State Funds under this section, the amount of such pay3 ments shall not be reduced by any administrative or other

4 costs incurred by the United States.

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

6 title IV, and allocated by paragraph 401(j)(3), from min7 ing claims located in a State which has not established

8 or maintained a State Fund, and such proceeds from min9 ing claims located in a State for which the Secretary’s au10 thority has expired under subsection 506(a), shall be cred11 ited to the Federal Fund and distributed in accordance

12 with subsection (c).

13 (c) TRANSITION.—Prior to the time a State estab14 lishes a State Fund pursuant to subsection 501(a), any

15 proceeds collected from a mining claim within such State

16 shall be deposited into the Federal Fund and allocated to

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

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

19 Fund with accrued interest shall be paid by the Secretary

20 of the Treasury to the State Fund in accordance with sub21 section (a). Commencing three years after the date of en22 actment of this Act, the Secretary of the Treasury shall

23 distribute proceeds then accrued or which are thereafter

24 credited to the Federal Fund equally among all States

25 which maintain a State Fund established under subsection
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1 501(a), and for which the Secretary of the Treasury’s au2 thority has not expired under subsection 506(a).

3 SEC. 503. ELIGIBLE AREA.

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

5 and water eligible for reclamation under this title shall be

6 Federal lands that—

7 (1) have been adversely affected by past min8 eral activities on lands abandoned and left inad9 equately reclaimed prior to the date of enactment of

10 this Act; and

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

12 identifiable party with a continuing reclamation re13 sponsibility under State or Federal laws.

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

15 The following areas shall not be eligible for expenditures

16 from a State Fund:

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

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

19 of enactment of this Act which includes remining or

20 reclamation of the area adversely affected by past

21 locatable mineral activities.

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

23 reclamation expenditures pursuant to section 404 of

24 the Surface Mining Control and Reclamation Act

25 (30 U.S.C. 1234);
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1 (3) Any area designated for remedial action

2 pursuant to the Uranium Mill Tailings Radiation

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

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

5 Priorities List pursuant to the Comprehensive Envi6 ronmental Response, Compensation and Liability

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

8 enactment of this Act, or where the Environmental

9 Protection Agency has initiated or caused to be initi10 ated a response action pursuant to that Act.

11 SEC. 504. USES AND OBJECTIVES OF FUNDS.

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

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

14 of this section, reclamation includes—

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

16 controlling abandoned underground mine entries to

17 protect public health and safety;

18 (2) abatement, treatment or control of water

19 pollution;

20 (3) shaping, grading, contouring and

21 revegetation of land to prevent erosion and sedi22 mentation, or to enhance fish and wildlife habitat;

23 (4) removal or control of toxic or hazardous

24 materials;
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1 (5) analysis, curation and preservation of struc2 tures, buildings, sites or objects listed or eligible for

3 listing pursuant to the National Historic Preserva4 tion Act (16 U.S.C. 470a); and

5 (6) control or reclamation of surface subsidence

6 due to abandoned underground mines.

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

8 State Fund shall reflect the following priorities in the

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

10 appropriate, a combination of these priorities for cost-ef11 fective reclamation:

12 (1) The protection of public health, safety, gen13 eral welfare and property from extreme danger from

14 the adverse effects of past mineral activities.

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

16 general welfare from the adverse effects of past min17 eral activities.

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

19 State engaged in approved reclamation work under this

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

21 approved reclamation activities, shall be liable under any

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

23 result of action taken or omitted in the course of carrying

24 out reclamation pursuant to this section. This subsection

25 shall not preclude liability for costs and damages as result
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1 of gross negligence or intentional misconduct. For pur2 poses of the preceding sentence, reckless, willful or wanton

3 misconduct shall constitute gross negligence.

4 SEC. 505. REPORT TO CONGRESS.

5 Each year, each State with a State Fund under sub6 section 501(a) shall submit a report to the Congress pro7 viding an accounting of the Fund, including identifying

8 sites for which moneys in the Fund have been spent dur9 ing the preceding year and sites for which moneys shall

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

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

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

13 in the State.

14 SEC. 506. SUNSET PROVISIONS.

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

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

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

18 submits an annual report to the Congress pursuant to sec19 tion 505 which reports that there are no areas in the State

20 which remain to be reclaimed.

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

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

23 all State Funds, the Federal Fund shall also be termi24 nated, and all proceeds thereafter remaining in the Fed-
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1 eral Fund shall be paid into the Treasury of the United

2 States and deposited as miscellaneous receipts.

3 TITLE VI—ADMINISTRATIVE PROVISIONS

4 SEC. 601. EFFECTIVE DATE.

5 The provisions of this Act shall take effect on the

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

7 in this Act.

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

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

10 provisions of this Act shall supersede the general mining

11 laws only to the extent such laws conflict with the require12 ments of this Act. Where no such conflict exists, the gen13 eral mining laws, including all judicial and administrative

14 decisions interpreting them, shall remain in full force and

15 effect.

16 (b) EFFECT ON OTHER FEDERAL AND STATE

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

18 this Act shall be construed—

19 (1) as superseding, modifying, amending or re20 pealing any other provision of Federal law, State law

21 or Federal or State regulation enacted pursuant

22 thereto, not expressly superseded, modified, amended

23 or repealed;

24 (2) without limiting the foregoing, as affecting

25 or intended to affect or in any way interfere with or
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1 modify the laws of the States relating to the owner2 ship, control, appropriation, use and distribution of

3 ground or surface waters or the regulation by States

4 of surface or ground water quality; and

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

6 rights, obligations or liabilities of any person under

7 other provision of law.

8 SEC. 604. SEVERABILITY.

9 If any provision of this Act or the applicability there10 of to any person or circumstances is held invalid, the re11 mainder of this Act and the application of such provision

12 to other persons or circumstances shall not be affected

13 thereby.

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