I 

109TH CONGRESS 

1ST SESSION H. R. 1265 

To provide a source of funding for the reclamation of abandoned hardrock 

mines, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 10, 2005 

Mr. UDALL of Colorado introduced the following bill; which was referred to 

the Committee on Resources 

A BILL 

To provide a source of funding for the reclamation of 

abandoned hardrock mines, and for other purposes. 

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

3 SECTION 1. SHORT TITLE, FINDINGS, AND PURPOSE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Abandoned Hardrock Mines Reclamation Funding Act’’. 

6 (b) FINDINGS.—The Congress finds the following: 

7 (1) Through various laws and policies, including 

8 the Act of May 10, 1872 (commonly known as the 

9 General Mining Law of 1872; 30 U.S.C. 22 et seq.), 

10 the Federal Government has encouraged the develop-
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1 ment of gold, silver, and other mineral resources, es2 pecially in the western States, and development of 

3 these resources has helped create a strong economy 

4 and provided needed materials for many critical 

5 products and services. 

6 (2) However, historically mining activities have 

7 occurred in recurrent cycles of ‘‘boom’’ followed by 

8 ‘‘bust’’, with many mines left inactive or abandoned 

9 at the end of each cycle. 

10 (3) As a result of this history, the United 

11 States has been left an unwelcome legacy of inactive 

12 or abandoned mines, including thousands of such 

13 mines in the western States. 

14 (4) Many of these inactive or abandoned mines 

15 pose safety hazards to the public, and the drainage 

16 and runoff from such mines has damaged thousands 

17 of stream miles to the detriment of water quality, 

18 particularly in several western States. 

19 (5) The environmental cleanup of these inactive 

20 or abandoned mines is hampered by lack of funding. 

21 Federal and State agencies and Indian tribes are 

22 often unable to afford to make cleanup of these mine 

23 sites a high priority. 
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1 (6) It is in the national interest to facilitate the 

2 cleanup of inactive or abandoned mines through ap3 propriate legislation that reduces this obstacle. 

4 (c) PURPOSE.—The purpose of this Act is to facili5 tate cleanup of inactive and abandoned mine sites by es6 tablishing a source of funding for that purpose. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 

9 (1) The term ‘‘gross proceeds’’ means the value 

10 of any extracted hardrock mineral that was— 

11 (A) sold; 

12 (B) exchanged for any thing or service; 

13 (C) removed from the country in a form 

14 ready for use or sale; or 

15 (D) initially used in a manufacturing proc16 ess or in providing a service. 

17 (2) The term ‘‘net proceeds’’ means gross pro18 ceeds less the sum of the following deductions: 

19 (A) The actual cost of extracting the min20 eral. 

21 (B) The actual cost of transporting the 

22 mineral to the place or places of reduction, re23 fining, and sale. 

24 (C) The actual cost of reduction, refining, 

25 and sale. 
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1 (D) The actual cost of marketing and de2 livering the mineral and the conversion of the 

3 mineral into money. 

4 (E) The actual cost of maintenance and re5 pairs of— 

6 (i) all machinery, equipment, appa7 ratus, and facilities used in the mine; 

8 (ii) all milling, refining, smelting and 

9 reduction works, plants and facilities; and 

10 (iii) all facilities and equipment for 

11 transportation. 

12 (F) The actual cost of fire insurance on 

13 such machinery, equipment, apparatus, works, 

14 plants, and facilities. 

15 (G) Depreciation of the original capitalized 

16 cost of such machinery, equipment, apparatus, 

17 works, plants, and facilities. 

18 (H) All money expended for premiums for 

19 industrial insurance, and the actual cost of hos20 pital and medical attention and accident bene21 fits and group insurance for all employees. 

22 (I) The actual cost of developmental work 

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

24 when operated as a unit. 
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1 (J) All royalties and severance taxes paid 

2 to the Federal Government or State govern3 ments. 

4 (3) The term ‘‘hardrock minerals’’ means any 

5 mineral other than a mineral that would be subject 

6 to disposition under any of the following laws if lo7 cated on land subject to the general mining laws: 

8 (A) The Mineral Leasing Act (30 U.S.C. 

9 181 et seq.). 

10 (B) The Geothermal Steam Act of 1970 

11 (30 U.S.C. 1001 et seq.). 

12 (C) The Act of July 31, 1947, commonly 

13 known as the Materials Act of 1947 (30 U.S.C. 

14 601 et seq.). 

15 (D) The Mineral Leasing Act for Acquired 

16 Lands (30 U.S.C. 351 et seq.). 

17 (4) The term ‘‘Secretary’’ means the Secretary 

18 of the Interior. 

19 (5) The term ‘‘patented mining claim’’ means 

20 an interest in land which has been obtained pursu21 ant to sections 2325 and 2326 of the Revised Stat22 utes (30 U.S.C. 29 and 30) for vein or lode claims 

23 and sections 2329, 2330, 2331, and 2333 of the Re24 vised Statutes (30 U.S.C. 35, 36, and 37) for placer 
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1 claims, or section 2337 of the Revised Statutes (30 

2 U.S.C. 42) for mill site claims. 

3 (6) The term ‘‘general mining laws’’ means 

4 those provisions of law that generally comprise chap5 ters 2, 12A, and 16, and sections 161 and 162, of 

6 title 30, United States Code. 

7 (7) The term ‘‘Fund’’ means the Abandoned 

8 Minerals Mine Reclamation Fund. 

9 SEC. 3. SOURCE OF REVENUES FOR ABANDONED MINE 

10 CLEANUP. 

11 (a) RECLAMATION FEE.— 

12 (1) FEE IMPOSED.—Any person producing 

13 hardrock minerals from a mine within an 

14 unpatented mining claim or a mine on land that was 

15 patented under the general mining laws shall pay a 

16 reclamation fee to the Secretary under this section. 

17 (2) FEE AS PERCENTAGE OF NET PROCEEDS.— 

18 The amount of the fee under this section shall be 

19 equal to a percentage of the net proceeds derived 

20 from the mine. The percentage shall be based upon 

21 the ratio of the net proceeds to the gross proceeds 

22 related to mineral production from the mine in ac23 cordance with the following table: 
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Net proceeds as percentage Rate of fee as percentage 

of gross proceeds of net proceeds 

Less than 10 ...................................................................................... 2.00 

10 or more but less than 18 .............................................................. 2.50 

18 or more but less than 26 .............................................................. 3.00 

26 or more but less than 34 .............................................................. 3.50 

34 or more but less than 42 .............................................................. 4.00 

42 or more but less than 50 .............................................................. 4.50 

50 or more ......................................................................................... 5.00 

1 (b) EXEMPTION.—Gross proceeds of less than 

2 $500,000 from minerals produced in any calendar year 

3 shall be exempt from the reclamation fee under this sec4 tion for that year if such proceeds are from one or more 

5 mines located in a single patented claim or on two or more 

6 contiguous patented claims. 

7 (c) PAYMENT.—The amount of all fees payable under 

8 this section for any calendar year shall be paid to the Sec9 retary within 60 days after the end of such year. 

10 (d) DEPOSIT OF REVENUES.—The Secretary shall 

11 deposit amounts received under subsection (c) in the 

12 Abandoned Minerals Mine Reclamation Fund. 

13 (e) RELATION TO STATE FEES.—Nothing in this Act 

14 shall be construed to require a reduction in, or otherwise 

15 affect, a similar fee provided for under State law. 

16 (f) REDUCTION OF FEES.—The Secretary shall re17 duce a fee required by this section by an amount equal 

18 to a royalty paid pursuant to an Act of Congress that pro19 vides for crediting to the Fund of royalties paid to the 

20 Secretary with respect to production of hardrock minerals. 
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1 (g) EFFECTIVE DATE.—This section shall take effect 

2 with respect to hardrock minerals produced after Decem3 ber 31, 2004, except that subsection (f) shall take effect 

4 one year after the date of the enactment of the law de5 scribed in such subsection. 

6 SEC. 4. ABANDONED MINERALS MINE RECLAMATION FUND. 

7 (a) ESTABLISHMENT.— 

8 (1) IN GENERAL.—There is established in the 

9 Treasury of the United States an interest-bearing 

10 fund to be known as the Abandoned Minerals Mine 

11 Reclamation Fund. The Fund shall be administered 

12 by the Secretary. 

13 (2) INVESTMENT.—The Secretary shall notify 

14 the Secretary of the Treasury as to what portion of 

15 the Fund is not, in the Secretary’s judgment, re16 quired to meet current withdrawals. The Secretary 

17 of the Treasury shall invest such portion of the 

18 Fund in public debt securities with maturities suit19 able for the needs of such Fund and bearing interest 

20 at rates determined by the Secretary of the Treas21 ury, taking into consideration current market yields 

22 on outstanding marketplace obligations of the 

23 United States of comparable maturities. The income 

24 on such investments shall be credited to, and form 

25 a part of, the Fund. 
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1 (3) ADMINISTRATION.—The Secretary shall use 

2 the existing Federal program for abandoned mine 

3 reclamation authorized by title IV of the Surface 

4 Mining Control and Reclamation Act of 1977 (30 

5 U.S.C. 1231 et seq.) to administer the Fund and for 

6 making expenditures from the Fund. 

7 (b) USE AND OBJECTIVES OF THE FUND.— 

8 (1) IN GENERAL.—Amounts in the Fund shall 

9 be available to the Secretary, without further appro10 priation and until expended, to perform or support 

11 reclamation and restoration activities affecting eligi12 ble areas, including any of the following: 

13 (A) Reclamation and restoration of aban14 doned surface mined areas. 

15 (B) Reclamation and restoration of aban16 doned milling and processing areas. 

17 (C) Sealing, filling, and grading abandoned 

18 deep mine entries. 

19 (D) Planting of land adversely affected by 

20 past mining to prevent erosion and sedimenta21 tion. 

22 (E) Prevention, abatement, treatment, and 

23 control of water pollution created by abandoned 

24 mine drainage. 
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1 (F) Control of surface subsidence due to 

2 abandoned deep mines. 

3 (2) METHODS OF USE.—Subject to the special 

4 disbursement requirements of subsection (g), 

5 amounts in the Fund may be expended directly by 

6 the Secretary or by making grants to approved State 

7 reclamation programs, as described in subsection 

8 (d). The Secretary shall consult and coordinate with 

9 eligible States on those projects funded directly or in 

10 conjunction with other Federal agencies. 

11 (c) ELIGIBLE AREAS.—Reclamation expenditures 

12 under this section shall be made only in States described 

13 in subsection (e) and shall be used only for the reclamation 

14 of lands (and related waters)— 

15 (1) that were, but are no longer, actively mined 

16 for hardrock minerals (and not in temporary shut17 down) as of the date of the enactment of this Act; 

18 (2) that are not identified for remedial action 

19 under the Comprehensive Environmental Response, 

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

21 9601 et seq.) and for which there is no identifiable 

22 owner or operator for the mine or mine facilities; 

23 (3) that are not designated for remedial action 

24 pursuant to the Uranium Mill Tailings Radiation 

25 Control Act of 1978 (42 U.S.C. 7901 et seq.); and 
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1 (4) for which no evidence exists that the lands 

2 contain minerals that economically could be ex3 tracted through the mining, reprocessing, or re4 mining of the lands. 

5 (d) ELIGIBLE STATES.— 

6 (1) ELIGIBILITY REQUIREMENTS.—Except as 

7 provided in paragraph (2), expenditures from the 

8 Fund shall be made only for reclamation of lands 

9 and water in States that— 

10 (A) contain lands subject to the general 

11 mining laws; and 

12 (B) have completed a statewide inventory 

13 of abandoned hardrock sites within the State el14 igible to receive funding under this Act. 

15 (2) INVENTORY FUNDING.—A State that con16 tains lands subject to the general mining laws, but 

17 that has not completed a statewide inventory as de18 scribed in paragraph (1)(B), may receive grants not 

19 exceeding $2,000,000 annually to assist in the com20 pletion of the required inventory. 

21 (3) APPROVED STATE RECLAMATION PRO22 GRAMS.—In the case of a State described in para23 graph (1), the Secretary may make expenditures 

24 from the Fund to the State for a State reclamation 

25 program that meets the requirements of section 405 
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1 of the Surface Mining Control and Reclamation Act 

2 of 1977 (30 U.S.C. 1235) and is applicable to 

3 hardrock mining. 

4 (4) STATES WITHOUT APPROVED PROGRAMS.— 

5 If a State described in paragraph (1) does not have 

6 an approved State program under section 405 of the 

7 Surface Mining Control and Reclamation Act of 

8 1977 (30 U.S.C. 1235) that is applicable to 

9 hardrock mining, the Secretary may provide funds to 

10 the State after the Secretary determines that the 

11 State has authority to implement a hardrock aban12 doned mine land program, and that State authority, 

13 at a minimum, includes the establishment of a State 

14 reclamation plan for abandoned hardrock mines and 

15 clear authorization for the administration and ex16 penditure of funds for eligible areas described in 

17 subsection (c). 

18 (e) PRIORITIES.—Expenditures from the Fund shall 

19 reflect the following priorities, in the following order of 

20 priority: 

21 (1) EXTREME DANGER.—Protection of public 

22 health, safety, general welfare, and property from 

23 extreme danger of adverse effects of past mining ac24 tivity. 
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1 (2) ADVERSE EFFECTS.—Protection of public 

2 health, safety, general welfare, and property from 

3 the adverse effects of past mineral activity, including 

4 the restoration of land, water, and fish and wildlife 

5 resources degraded by the adverse effects of past 

6 mining activity. 

7 (f) ELIGIBLE REMEDIATING PARTIES.—The Sec8 retary may authorize expenditures from the Fund for re9 mediation activities conducted by a Federal agency or by 

10 remediating parties who are permittees under the aban11 doned or inactive mine land waste remediation permit pro12 gram, as provided for in section 402(r) of the Federal 

13 Water Pollution Control Act (33 U.S.C. 1342(r)). 

14 (g) SPECIAL DISBURSEMENT REQUIREMENTS.— 

15 (1) SET-ASIDE.—Of the funds collected under 

16 section 3 with regard to a mine for a calendar year 

17 and deposited in the Fund— 

18 (A) 25 percent shall be expended in the eli19 gible State in which the mine is located, pursu20 ant to an approved abandoned mine land rec21 lamation program under subsection (d)(3); and 

22 (B) 50 percent shall be expended in the eli23 gible States based on each eligible State’s per24 centage of the value of total national hardrock 

25 mineral production during the years 1900 
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1 through 1980, which the Secretary shall deter2 mine using United States Geological Survey 

3 Minerals Yearbooks and published metal prices. 

4 (2) RELEASE.—If funds allocated pursuant to 

5 paragraph (1)(A) have not been expended within 

6 three years after collection, the Secretary shall make 

7 such funds available to other eligible States as deter8 mined appropriate by the Secretary. 

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