109TH CONGRESS

1ST SESSION H. R. 485

AN ACT

To provide that the royalty rate on the output from

other purposes.this Act shall be reduced to 1.0 percent, and forriod beginning on the date of the enactment ofpounds from the mineral sylvite in the 5-year peFederal lands of potassium and potassium com-

109TH CONGRESS

1ST SESSION H. R. 485

AN ACT

To provide that the royalty rate on the output from Federal

lands of potassium and potassium compounds from the

mineral sylvite in the 5-year period beginning on the

date of the enactment of this Act shall be reduced to

1.0 percent, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 TITLE I—POTASH ROYALTY

4 REDUCTION

5 SEC. 101. SHORT TITLE.

6 This title may be cited as the ‘‘Potash Royalty Reduc7 tion Act of 2005’’.

8 SEC. 102. POTASSIUM AND POTASSIUM COMPOUNDS FROM

9 SYLVITE.

10 (a) ROYALTY RATE.—Notwithstanding section

11 102(a)(9) of the Federal Land Policy and Management

12 Act of 1976 (43 U.S.C. 1701(a)(9)), section 2 of the Act

13 of February 7, 1927 (30 U.S.C. 282) and the term of any

14 lease issued under such section 2, the royalty rate on the

15 quantity or gross value of the output from Federal lands

16 of potassium and potassium compounds from the mineral

17 sylvite at the point of shipment to market in the 5-year

18 period beginning on the date of the enactment of this Act

19 shall be 1.0 percent.

20 (b) RECLAMATION FUND.—Fifty percentum of any

21 royalties paid pursuant to this title during the 5-year pe22 riod referred to in subsection (a), together with any inter23 est earned from the date of payment, shall be paid by the

24 Secretary of the Treasury to the payor of the royalties

25 to be used solely for land reclamation purposes in accord-
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1 ance with a schedule to implement a reclamation plan for

2 the lands for which the royalties are paid. No payment

3 shall be made by the Secretary of the Treasury pursuant

4 to this subsection until the Secretary of the Interior re5 ceives from the payor of the royalties, and approves, the

6 reclamation plan and schedule, and submits the approved

7 schedule to the Secretary of the Treasury. The share of

8 royalties held by the Secretary of the Treasury pursuant

9 to this subsection, and interest earned thereon, shall be

10 available until paid pursuant to this subsection, without

11 further appropriation; shall not be considered as money

12 received under section 35 of the Mineral Leasing Act (30

13 U.S.C. 191) for the purpose of revenue allocation; and

14 shall not be reduced by any administrative or other costs

15 incurred by the United States.

16 (c) STUDY AND REPORT.—After the end of the 4-

17 year period beginning on the date of the enactment of this

18 Act, and before the end of the 5-year period beginning

19 on that date, the Secretary of the Interior shall report to

20 the Congress on the effects of the royalty reduction under

21 this title, including a recommendation on whether the re22 duced royalty rate for potassium from sylvite should apply

23 after the end of the 5-year period.
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1 TITLE II—SODA ASH ROYALTY

2 REDUCTION

3 SEC. 201. SHORT TITLE.

4 This title may be cited as the ‘‘Soda Ash Royalty Re5 duction Act of 2005’’.

6 SEC. 202. FINDINGS.

7 The Congress finds the following:

8 (1) The combination of global competitive pres9 sures, flat domestic demand, and spiraling costs of

10 production threaten the future of the United States

11 soda ash industry.

12 (2) Despite booming world demand, growth in

13 United States exports of soda ash since 1997 has

14 been flat, with most of the world’s largest markets

15 for such growth, including Brazil, the People’s Re16 public of China, India, the countries of eastern Eu17 rope, and the Republic of South Africa, have been

18 closed by protectionist policies.

19 (3) The People’s Republic of China is the prime

20 competitor of the United States in soda ash produc21 tion, and recently supplanted the United States as

22 the largest producer of soda ash in the world.

23 (4) Over 700 jobs have been lost in the United

24 States soda ash industry since the Department of
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1 the Interior increased the royalty rate on soda ash

2 produced on Federal land, in 1996.

3 (5) Reduction of the royalty rate on soda ash

4 produced on Federal land will provide needed relief

5 to the United States soda ash industry and allow it

6 to increase export growth and competitiveness in

7 emerging world markets, and create new jobs in the

8 United States.

9 SEC. 203. REDUCTION IN ROYALTY RATE ON SODA ASH.

10 Notwithstanding section 102(a)(9) of the Federal

11 Land Policy Management Act of 1976 (43 U.S.C.

12 1701(a)(9)), section 24 of the Mineral Leasing Act (30

13 U.S.C. 262), and the terms of any lease under that Act,

14 the royalty rate on the quantity or gross value of the out15 put of sodium compounds and related products at the

16 point of shipment to market from Federal land in the 5-

17 year period beginning on the date of the enactment of this

18 Act shall be 2 percent.

19 SEC. 204. STUDY.

20 After the end of the 4-year period beginning on the

21 date of the enactment of this Act, and before the end of

22 the 5-year period beginning on that date, the Secretary

23 of the Interior shall report to the Congress on the effects

24 of the royalty reduction under this title, including—
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1 (1) the amount of sodium compounds and re2 lated products at the point of shipment to market

3 from Federal land during that 4-year period;

4 (2) the number of jobs that have been created

5 or maintained during the royalty reduction period;

6 (3) the total amount of royalty paid to the

7 United States on the quantity or gross value of the

8 output of sodium compounds and related products at

9 the point of shipment to market produced during

10 that 4-year period, and the portion of such royalty

11 paid to States; and

12 (4) a recommendation of whether the reduced

13 royalty rate should apply after the end of the 5-year

14 period beginning on the date of the enactment of

15 this Act.

Passed the House of Representatives May 16, 2005.

Attest:

Clerk.