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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2222 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 2222

 To establish fair market value pricing of Federal natural assets, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 1999

Mr. George Miller of California (for himself, Mr. McGovern, Ms. Pelosi, 
  Mr. Hinchey, Mrs. Tauscher, Mr. Meehan, Mr. Tierney, Mr. Kennedy of 
 Rhode Island, Mr. Brown of Ohio, Ms. DeLauro, Mr. Stark, Ms. Rivers, 
 Mr. Moore, Mr. Bonior, Mr. Luther, Mr. Gutierrez, Ms. Schakowsky, Mr. 
  Vento, Ms. Slaughter, and Ms. Eshoo) introduced the following bill; 
 which was referred to the Committee on Resources, and in addition to 
   the Committees on Agriculture, and the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To establish fair market value pricing of Federal natural assets, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Resources 
Debt Reduction Act of 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Fair market value for resource disposal.
Sec. 102. Fees from program beneficiaries.
Sec. 103. Revenues from sale, lease, and transfer of assets.
                  TITLE II--HARDROCK MINING ROYALTIES

Sec. 201. Royalty.
Sec. 202. Abandoned Minerals Mine Reclamation Fund.
Sec. 203. Limitation on patent issuance.
Sec. 204. Mining claim maintenance requirements.
Sec. 205. Definitions.
        TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES

Sec. 301. Annual domestic livestock grazing fee.
Sec. 302. Elimination of below-cost sales of timber from national 
                            forest system lands.
Sec. 303. Timberland suitability.
Sec. 304. Cost of water used to produce crops on production flexibility 
                            contract acreage.
Sec. 305. Reduction in maximum amount of payments under agricultural 
                            assistance programs to reflect receipt of 
                            Federal irrigation water.
Sec. 306. Off budget expenditures.
Sec. 307. Deposit of Taylor Grazing Act receipts in Treasury.
Sec. 308. Repeal of livestock feed assistance program.
Sec. 309. Right-of-way permits.
Sec. 310. Oil and gas rentals.
Sec. 311. Improvement of minerals management service royalty 
                            collection.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FAIR MARKET VALUE FOR RESOURCE DISPOSAL.

    (a) In General.--Notwithstanding any other provision of law, no 
timber, minerals, forage, or other natural resource owned by the United 
States, no Federally owned water, and no hydroelectric energy generated 
at a Federal facility may be sold, leased, or otherwise disposed of by 
any department, agency, or instrumentality of the United States for an 
amount less than fair market value, as determined by such department, 
agency, or instrumentality.
    (b) Existing Contracts, Leases, Etc.--
            (1) Existing arrangements.--The provisions of subsection 
        (a) shall not apply to any existing contract, lease, or other 
        binding arrangement entered into before the date of the 
        enactment of this Act unless such contract, lease or other 
        arrangement is renewed or extended after such date of 
        enactment.
            (2) Arrangements entered into in 5-year period.--The 
        provisions of subsection (a) shall take effect on the date 5 
        years after the date of enactment of this Act in the case of 
        any contract, lease, or other binding arrangement entered into 
        or renewed or extended after such date but before the date 5 
        years after such date.
            (3) Arrangements entered into after 5 years.--The 
        provisions of subsection (a) shall apply immediately to all 
        contracts, leases, or other binding arrangements entered into 
        or renewed or extended after the date 5 years after the 
        enactment of this Act.
    (c) Waiver.--The President may waive the requirements of subsection 
(a) whenever the President determines that such waiver is in the 
national interest. The President shall submit a notice to Congress 
containing an explanation of the reasons for any such determination 
within 60 days after the date of the determination.

SEC. 102. FEES FROM PROGRAM BENEFICIARIES.

    (a) General Authority.--The Secretary of the Interior and the 
Secretary of Agriculture are each authorized to establish and collect 
from persons subject to programs administered by each such Secretary 
such user fees as may be necessary to reimburse the United States for 
the expenses incurred in administering such programs. The aggregate 
amount of fees that may be assessed and collected under this section by 
each such Secretary in any fiscal year from persons subject to any such 
program shall not exceed the aggregate amount of expenses incurred in 
administering such program in such fiscal year.
    (b) Effective Date; Oil and Gas Lease Transfers.--The Secretary of 
the Interior and the Secretary of Agriculture may, by rule, establish 
the applicable effective date of any fee to be imposed under this 
section, except that fees shall be established and collected under this 
section from each person receiving a transfer of a Federal onshore oil 
and gas lease after the date of the enactment of this section.

SEC. 103. REVENUES FROM SALE, LEASE, AND TRANSFER OF ASSETS.

    (a) In General.--Section 1105(a) of chapter 11 of title 31, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(31) a separate statement of--
                    ``(A) projected revenues during the fiscal year for 
                which the budget is submitted from the anticipated 
sale, lease, or transfer of any physical asset; and
                    ``(B) the estimated price at which this asset or a 
                comparable asset would be sold in an arms length 
                transaction in the private sector;
        asset by asset and aggregated by major functional category.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective for fiscal year 2000 and shall be fully reflected in 
the fiscal year 2001 budget submitted by the President in February 2000 
as required by section 1105(a) of title 31, United States Code.

                  TITLE II--HARDROCK MINING ROYALTIES.

SEC. 201. ROYALTY.

    (a) Reservation of Royalty.--Each person producing locatable 
minerals (including associated minerals) from any mining claim located 
under the general mining laws, or mineral concentrates derived from 
locatable minerals produced from any mining claim located under the 
general mining laws, as the case may be, shall pay a royalty of 5 
percent of the net smelter return from the production of such locatable 
minerals or concentrates, as the case may be.
    (b) Royalty Payments.--Each person responsible for making royalty 
payments under this section shall make such payments to the Secretary 
not later than 30 days after the end of the calendar month in which the 
mineral or mineral concentrates are produced and first placed in 
marketable condition, consistent with prevailing practices in the 
industry.
    (c) Reporting Requirements.--All persons holding mining claims 
located under the general mining laws shall provide to the Secretary 
such information as determined necessary by the Secretary to ensure 
compliance with this section, including, but not limited to, quarterly 
reports, records, documents, and other data. Such reports may also 
include, but not be limited to, pertinent technical and financial data 
relating to the quantity, quality, and amount of all minerals extracted 
from the mining claim.
    (d) Audits.--The Secretary is authorized to conduct such audits of 
all persons holding mining claims located under the general mining laws 
as he deems necessary for the purposes of ensuring compliance with the 
requirements of this section.
    (e) Disposition of Receipts.--All receipts from royalties collected 
pursuant to this section shall be deposited into the Fund established 
under section 3.
    (f) Compliance.--Any person holding mining claims located under the 
general mining laws who knowingly or willfully prepares, maintains, or 
submits false, inaccurate, or misleading information required by this 
section, or fails or refuses to submit such information, shall be 
subject to a civil penalty of not more than $10,000 imposed by the 
Secretary.
    (g) Effective Date.--This section shall take effect with respect to 
minerals produced from a mining claim in calendar months beginning 
after the enactment of this Act.

SEC. 202. ABANDONED MINERALS MINE RECLAMATION FUND.

    (a) Establishment.--(1) There is established on the books of the 
Treasury of the United States a trust fund to be known as the Abandoned 
Minerals Mine Reclamation Fund (hereinafter referred to as the Fund). 
The Fund shall be administered by the Secretary.
    (2) The Secretary shall notify the Secretary of the Treasury as to 
what portion of the Fund is not, in his judgment, required to meet 
current withdrawals. The Secretary of the Treasury shall invest such 
portion of the Fund in public debt securities with maturities suitable 
for the needs of such Fund and bearing interest at rates determined by 
the Secretary of the Treasury, taking into consideration current market 
yields on outstanding marketplace obligations of the United States of 
comparable maturities. The income on such investments shall be credited 
to, and from a part of, the Fund.
    (b) Amounts.--The following amounts shall be credited to the Fund 
for the purposes of this Act:
            (1) All moneys received from royalties under section 1 of 
        this Act and the mining claim maintenance fee under section 4 
        of this Act.
            (2) All donations by persons, corporations, associations, 
        and foundations for the purposes of this title.
    (c) Use and Objectives of the Fund.-- The Secretary is, subject to 
appropriations, authorized to use moneys in the Fund for the 
reclamation and restoration of land and water resources adversely 
affected by past mineral (other than coal and fluid minerals) and 
mineral material mining, including but not limited to, any of the 
following:
            (1) Reclamation and restoration of abandoned surface mined 
        areas.
            (2) Reclamation and restoration of abandoned milling and 
        processing areas.
            (3) Sealing, filling, and grading abandoned deep mine 
        entries.
            (4) Planting of land adversely affected by past mining to 
        prevent erosion and sedimentation.
            (5) Prevention, abatement, treatment and control of water 
        pollution created by abandoned mine drainage.
            (6) Control of surface subsidence due to abandoned deep 
        mines.
            (7) Such expenses as may be necessary to accomplish the 
        purposes of this section.
    (d) Eligible Areas.--(1) Land and waters eligible for reclamation 
expenditures under this section shall be those within the boundaries of 
States that have lands subject to the general mining laws--
            (A) which were mined or processed for minerals and mineral 
        materials or which were affected by such mining or processing, 
        and abandoned or left in an inadequate reclamation status prior 
        to the date of enactment of this Act;
            (B) for which the Secretary makes a determination that 
        there is no continuing reclamation responsibility under State 
        or Federal laws; and
            (C) for which it can be established that such lands do not 
        contain minerals which could economically be extracted through 
        the reprocessing or remining of such lands.
    (2) Notwithstanding paragraph (1), sites and areas designated for 
remedial action pursuant to the Uranium Mill Tailings Radiation Control 
Act of 1978 (42 U.S.C. 7901 and following) or which have been listed 
for remedial action pursuant to the Comprehensive Environmental 
Response Compensation and Liability Act of 1980 (42 U.S.C. 9601 and 
following) shall not be eligible for expenditures from the Fund under 
this section.
    (e) Fund Expenditures.--Moneys available from the Fund may be 
expended directly by the Director, Bureau of Land Management. The 
Director may also make such money available through grants made to the 
Chief of the United States Forest Service, and the Director of the 
National Park Service.
    (f) Authorization of Appropriations.--Amounts credited to the Fund 
are authorized to be appropriated for the purpose of this title without 
fiscal year limitation.

SEC. 203. LIMITATION ON PATENT ISSUANCE.

    No patent shall be issued by the United States for any mining or 
mill site claim located under the general mining laws unless the 
Secretary determines that, for the claim concerned a patent application 
was filed with the Secretary on or before September 30, 1994, and all 
requirements established under sections 2325 and 2326 of the Revised 
Statutes (30 U.S.C. 29 and 30) for vein or lode claims and sections 
2329, 2330, 2331, and 2333 of the Revised Statutes (30 U.S.C. 35, 36 
and 37) for placer claims, and section 2337 of the Revised Statutes (30 
U.S.C. 42) for mill site claims, as the case may be, were fully 
complied with by the applicant by that date.

SEC. 204. MINING CLAIM MAINTENANCE REQUIREMENTS.

    (a) In General.--(1) Effective October 1, 1999, the holder of each 
mining claim located under the general mining laws prior to the date of 
enactment shall pay to the Secretary an annual claim maintenance fee of 
$100 per claim per calendar year.
    (2) The holder of each mining claim located under the general 
mining laws subsequent to the date of enactment shall pay to the 
Secretary an annual claim maintenance fee of $125 per claim per 
calendar year.
    (b) Purchasing Power Adjustment.--The Secretary shall adjust the 
amount of the claim maintenance fee payable pursuant to subsection (a) 
for changes in the purchasing power of the dollar after the calendar 
year 1993, employing the Consumer Price Index for all urban consumers 
published by the Department of Labor as the basis for adjustment, and 
rounding according to the adjustment process of conditions of the 
Federal Civil Penalties Inflation Adjustment Act of 1990.
    (c) Time of Payment.--Each claim holder shall pay the claim 
maintenance fee payable under subsection (a) for any year on or before 
August 31 of each year, except that for the initial calendar year in 
which the location is made, the initial claim maintenance fee shall be 
paid at the time the location notice is recorded with the Bureau of 
Land Management.
    (d) Oil Shale Claims Subject to Claim Maintenance Fees Under Energy 
Policy Act of 1992.--The section shall not apply to any oil shale 
claims for which a fee is required to be paid under section 2511(e)(2) 
of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
    (e) Claim Maintenance Fees Payable Under 1993 Act.--The claim 
maintenance fees payable under this section for any period with respect 
to any claim shall be reduced by the amount of the claim maintenance 
fees paid under section 10101 of the Omnibus Budget Reconciliation Act 
of 1993 with respect to that claim and with respect to the same period.
    (f) Waiver.--(1) The claim maintenance fee required under this 
section may be waived for a claim holder who certifies in writing to 
the Secretary that on the date the payment was due, the claim holder 
and all related parties held not more than 10 mining claims on land 
open to location. Such certification shall be made on or before the 
date on which payment is due.
    (2) For purposes of this subsection, with respect to any claim 
holder, the term ``related party'' means each of the following:
            (A) The spouse and dependent children (as defined in 
        section 152 of the Internal Revenue Code of 1986), of the claim 
        holder.
            (B) Any affiliate of the claim holder.
    (g) Co-Ownership.--Upon the failure of any one or more of several 
co-owners to contribute such co-owner or owners portion of the fee 
under this section, any co-owner who has paid such fee may, after the 
payment due date, give the delinquent co-owner or owners notice of such 
failure in writing (or by publication in the newspaper nearest the 
claim for at least once a week for at least 90 days). If at the 
expiration of 90 days after such notice in writing or by publication, 
any delinquent co-owner fails or refused to contribute his portion, his 
interest, in the claim shall become the property of the co-owners who 
have paid the required fee.

SEC. 205. DEFINITIONS.

    As used in this title:
            (1) The term ``affiliate'' means, with respect to any 
        person, each of the following:
                    (A) Any partner of such person.
                    (B) Any person owning at least 10 percent of the 
                voting shares of such person.
                    (C) Any person who controls, is controlled by, or 
                is under common control with such person.
            (2) The term ``locatable minerals'' means minerals not 
        subject to disposition under any of the following:
                    (A) The Mineral Leasing Act (30 U.S.C. 181 and 
                following);
                    (B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 
                and following);
                    (C) The Act of July 31, 1947, commonly known as the 
                Materials Act of 1947 (30 U.S.C. 601 and following); or
                    (D) the Mineral Leasing for Acquired Lands Act (30 
                U.S.C. 351 and following).
            (3) The term ``net smelter return'' has the same meaning 
        provided in section 613 of the Internal Revenue Code of 1986 
        (26 U.S.C. 613) for ``gross income from mining''.
            (4) The term ``Secretary'' means the Secretary of the 
        Interior.
            (5) The term ``general mining laws'' means those Acts which 
        generally comprise chapters 2, 12A, and 16, and sections 161 
        and 162 of title 30, United States Code.

        TITLE III--USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES

SEC. 301. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.

    The Federal Land Policy and Management Act of 1976 is amended by 
inserting after section 401 (43 U.S.C. 1751) the following new section:

``SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE GRAZING FEES.

    ``(a) Establishment of Annual Domestic Livestock Grazing Fee.--(1) 
Notwithstanding any other provision of law, the Secretary of 
Agriculture, with respect to National Forest System lands in the 16 
contiguous Western States (except National Grasslands) administered by 
the Forest Service where domestic livestock grazing is permitted under 
applicable law, shall establish an annual domestic livestock grazing 
fee equal to fair market value.
    ``(2) Notwithstanding any other provision of law, the Secretary of 
the Interior, with respect to public domain lands administered by the 
Bureau of Land Management where domestic livestock grazing is permitted 
under applicable law, shall establish an annual domestic livestock 
grazing fee equal to fair market value.
    ``(b) Calculation of Fair Market Value.--(1) For purposes of 
determining the annual domestic livestock grazing fee under this 
section, the Secretary concerned shall calculate fair market value 
using the following formula:

 
                                               Appraised Base Value x
                                                 Forage Value Index
            Fair Market Value=             -----------------------------
                                                         100
------------------------------------------------------------------------
 

    ``(2) For purposes of the formula in paragraph (1):
            ``(A) The term `Forage Value Index' means the Forage Value 
        Index (FVI) computed annually by the Economic Research Service, 
        United States Department of Agriculture, and set with the 1997 
        FVI equal to 100; and
            ``(B) The term `Appraised Base Value' means the 1983 
        Appraisal Value conclusions for mature cattle and horses 
        (expressed in dollars per head or per month), as determined in 
        the 1986 report prepared jointly by the Secretary of 
        Agriculture and the Secretary of the Interior entitled `Grazing 
        Fee Review and Evaluation', dated February 1986, on a west-wide 
        basis using the lowest appraised value of the pricing areas 
        adjusted for advanced payment and indexed to 1997.
    ``(c) Limitation on Fluctuations of Fees.--Notwithstanding the 
amount calculated under subsection (b) for a year, the domestic 
livestock grazing fee charged for any given year shall not increase nor 
decrease by more than 33.3 percent from the domestic livestock grazing 
fee for the previous year.
    ``(d) Effect on Executive Order.--Executive Order No. 12548, dated 
February 14, 1986 (51 Fed. Reg. 5985), shall not apply to grazing fees 
established pursuant to this section.
    ``(e) Effect on Grazing Advisory Boards.--The grazing advisory 
boards established pursuant to Secretarial action, notice of which was 
published in the Federal Register on May 14, 1986 (51 Fed. Reg. 17874), 
are abolished, effective as of the date of the enactment of this 
section, and the advisory functions exercised by such boards shall be 
exercised only by the appropriate councils established under section 
309 of this Act.
    ``(f) Use of Fees and Range Improvement Funds.--Funds appropriated 
pursuant to section 5 of the Public Rangelands Improvement Act of 1978 
(43 U.S.C. 1904) or any other provision of law related to disposition 
of the Federal share of receipts from fees for grazing on public domain 
lands or National Forest lands in the 16 contiguous western States 
shall be used for restoration and enhancement of fish and wildlife 
habitat, for restoration and improved management of riparian areas, and 
for implementation and enforcement of applicable land management plans, 
allotment plans, and regulations regarding the use of such lands for 
domestic livestock grazing. Such funds shall be distributed as the 
Secretary concerned considers advisable after consultation and 
coordination with the advisory councils established pursuant to section 
309 of this Act and other interested parties.
    ``(g) Commencement Date for Fees.--The first annual domestic 
livestock grazing fee required by this section shall apply with respect 
to the grazing season commencing on March 1, 2000.

SEC. 302. ELIMINATION OF BELOW-COST SALES OF TIMBER FROM NATIONAL 
              FOREST SYSTEM LANDS.

    (a) In General.--The National Forest Management Act of 1976 is 
amended by inserting after section 14 (16 U.S.C. 472a) the following 
new section:

``SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES FROM NATIONAL FOREST 
              SYSTEM LANDS.

    ``(a) Requirement That Sale Revenues Exceed Costs.--On and after 
October 1, 2004, in appraising timber and setting a minimum bid for 
trees, portions of trees, or forest products located on National Forest 
System lands proposed for sale under section 14 or any other provision 
of law, the Secretary of Agriculture shall ensure that the estimated 
cash returns to the United States Treasury from each sale exceed the 
estimated costs to be incurred by the Federal Government in the 
preparation of the sale or as a result of the sale.
    ``(b) Costs To Be Considered.--For purposes of estimating under 
this section the costs to be incurred by the Federal Government from 
each timber sale, the Secretary shall assign to the sale the following 
costs:
            ``(1) The actual appropriated expenses for sale preparation 
        and harvest administration incurred or to be incurred by the 
        Federal Government from the sale and the payments to counties 
        to be made as a result of the sale.
            ``(2) A portion of the annual timber resource planning 
        costs, silvicultural examination costs, other resource support 
        costs, road design and construction costs, road maintenance 
        costs, transportation planning costs, appropriated 
        reforestation costs, timber stand improvement costs, forest 
        genetics costs, general administrative costs (including 
        administrative costs of the national and regional offices of 
        the Forest Service), and facilities construction costs of the 
        Federal Government directly or indirectly related to the timber 
        harvest program conducted on National Forest System lands.
    ``(c) Method of Allocating Costs.--The Secretary shall allocate the 
costs referred to in subsection (b)(2) to each unit of the National 
Forest System, and each proposed timber sale in such unit, on the basis 
of harvest volume.
    ``(d) Transitional Requirements.--To ensure the elimination of all 
below-cost timber sales by the date specified in subsection (a), the 
Secretary shall progressively reduce the number and size of below-cost 
timber sales on National Forest System lands as follows:
            ``(1) In fiscal years 2000 and 2001, the quantity of timber 
        sold in below-cost timber sales on National Forest System lands 
        shall not exceed 75 percent of the quantity of timber sold in 
        such sales in the preceding fiscal year.
            ``(2) In fiscal year 2002, the quantity of timber sold in 
        below-cost timber sales on National Forest System lands shall 
        not exceed 65 percent of the quantity of timber sold in such 
        sales in fiscal year 2000.
            ``(3) In fiscal year 2003, the quantity of timber sold in 
        below-cost timber sales on National Forest System lands shall 
        not exceed 50 percent of the quantity of timber sold in such 
        sales in the fiscal year 2002.
    ``(e) Below-Cost Timber Sale.--For purposes of this section, the 
term `below-cost timber sale' means a sale of timber in which the costs 
to be incurred by the Federal Government exceed the cash returns to the 
United States Treasury.''.
    (b) Findings.--Section 2 of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1600) is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(8) the practice of selling timber from National Forest 
        System lands for less than the cost to the Federal Government 
        of growing the timber and preparing the timber for sale is not 
        in the best interests of the United States, and such below-cost 
        sales should be eliminated in an orderly manner to achieve a 
        more economically and environmentally sound timber program for 
        the National Forest System.''.

SEC. 303. TIMBERLAND SUITABILITY.

    Subsection (k) of section 6 of the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 1604) is amended to read as 
follows:
    ``(k) Determination of Suitability of Lands for Timber 
Production.--
            ``(1) Determination required.--In revising land management 
        plans developed pursuant to this section, the Secretary shall 
        identify lands within the management area that are not suited 
        for timber production based on physical, economic, or other 
        relevant factors. The Secretary shall review the 
        identifications made under this paragraph during each revision 
        of the forest plan.
            ``(2) Evidence of economic unsuitability.--The Secretary 
        shall identify lands as economically unsuitable for timber 
        production under paragraph (1) if--
                    ``(A) the expected cash returns to the United 
                States Treasury that would result from the sale of 
                standing timber on the lands do not exceed the expected 
                costs that would be incurred by the Federal Government 
                in preparation or as a result of such sales; or
                    ``(B) the expected cash returns to the United 
                States Treasury that would result from the sale of 
                subsequent timber stands on the lands do not exceed the 
                expected costs that would be incurred by the Federal 
                Government in preparation or as a result of such sales.
            ``(3) Costs to be considered.--For purposes of estimating 
        under paragraph (2) the costs to be incurred by the Federal 
        Government from timber sales conducted on the lands being 
        reviewed, the Secretary shall assign to sales on such lands the 
        following costs:
                    ``(A) The appropriated expenses for sale 
                preparation and harvest administration that would be 
                incurred by the Federal Government from such sales and 
                the payments to counties that would be made as a result 
                of such sales.
                    ``(B) A portion of the annual timber resource 
                planning costs, silvicultural examination costs, other 
                resource support costs, road design and construction 
                costs, road maintenance costs, transportation planning 
                costs, appropriated reforestation costs, timber stand 
                improvement costs, forest genetics costs, general 
                administrative costs (including administrative costs of 
                the national and regional offices of the Forest 
                Service), and facilities construction costs of the 
                Federal Government directly or indirectly related to 
                the timber harvest program conducted on National Forest 
                System lands.
            ``(4) Method of allocating costs.--The Secretary shall 
        allocate the costs referred to in paragraph (3)(B) to each unit 
        of the National Forest System on the basis of harvest volume.
            ``(5) Prohibition on timber harvests on unsuitable lands.--
        In the case of lands identified under paragraph (1) as 
        unsuitable for timber production, no timber harvesting shall 
        occur on such lands for a period of 10 years or the life of the 
        plan, whichever is greater.
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) The term `standing timber' means an existing 
                stand of timber that has not been harvested.
                    ``(B) The term `subsequent timber stand' means a 
                regenerated stand of timber produced on land from which 
                standing timber has been harvested.''.

SEC. 304. COST OF WATER USED TO PRODUCE CROPS ON PRODUCTION FLEXIBILITY 
              CONTRACT ACREAGE.

    Section 9 of the Act of August 4, 1939 (commonly known as the 
Reclamation Project Act of 1939; 43 U.S.C. 485h) is amended by 
inserting at the end thereof the following new subsection:
    ``(g)(1) Any contract entered into under authority of this section 
or any other provision of Federal reclamation law shall require that 
the organization agree by contract with the Secretary to pay full cost 
for the delivery of water used in the production of any contract 
commodity on acreage subject to a production flexibility contract 
entered into under section 111 of the Agricultural Market Transition 
Act (7 U.S.C. 7211).
    ``(2) The Secretary shall announce the amount of the full cost 
payment for the succeeding year on or before July 1 of each year.
    ``(3) As used in this subsection:
            ``(A) The term `full cost' has the meaning given such term 
        in section 202(3) of the Reclamation Reform Act of 1982 (43 
        U.S.C. 390bb(3)).
            ``(B) The term `contract commodity' has the meaning given 
        such term in section 102(5) of the Agricultural Market 
        Transition Act (7 U.S.C. 7202(5)).
    ``(4) Paragraph (1) shall apply to any contract entered into or 
amended after the date of the enactment of this subsection.''.

SEC. 305. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS UNDER AGRICULTURAL 
              ASSISTANCE PROGRAMS TO REFLECT RECEIPT OF FEDERAL 
              IRRIGATION WATER.

    (a) Price Support Programs.--Title X of the Food Security Act of 
1985 is amended--
            (1) by redesignating sections 1001D (7 U.S.C. 1308-4) and 
        1001E (7 U.S.C. 1308-5) as sections 1001E and 1001F, 
        respectively; and
            (2) by inserting after section 1001C (7 U.S.C. 1308-3) the 
        following new section:

``SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO REFLECT RECEIPT OF 
              FEDERAL IRRIGATION WATER.

    ``(a) Reduction of Payment Limitations Required.--If a person 
subject to section 1001 receives Federal irrigation water for 
agricultural purposes from the operation of a Federal reclamation 
project, the payment limitations specified in paragraphs (1) and (2) of 
such section and applicable to such person shall be reduced for the 
year in which such person receives irrigation water. The amount of the 
reduction shall be equal to the total value during that year of the 
subsidy portion of the contract with such person for the delivery of 
the irrigation water.
    ``(b) Determination of Subsidy Portion of Water Contract.--The 
subsidy portion of an irrigation water delivery contract is equal to 
the amount by which full cost for the delivery of the irrigation water 
exceeds the actual contract price for the delivery of the water.
    ``(c) Definitions.--For purposes of this section, the terms 
`contract', `full cost', `irrigation water', and `project' have the 
meanings given such terms in section 202 of the Reclamation Reform Act 
of 1982 (43 U.S.C. 390bb).''.
    (b) Noninsured Crop Disaster Assistance.--Section 196(i) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(i)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Effect of receipt of irrigation water.--
                    ``(A) Reduction of payment limitation.--If a person 
                who receives payments under this section also receives, 
                during the same year, Federal irrigation water for 
                agricultural purposes from the operation of a Federal 
                reclamation project, the payment limitation specified 
                in paragraph (2) for such person shall be reduced for 
                that year. The amount of the reduction shall be equal 
                to the total value during that year of the subsidy 
                portion of the contract with such person for the 
                delivery of the irrigation water.
                    ``(B) Determination of subsidy portion of water 
                contract.--The subsidy portion of an irrigation water 
                delivery contract is equal to the amount by which full 
                cost for the delivery of the irrigation water exceeds 
                the actual contract price for the delivery of the 
                water.
                    ``(C) Definitions.--For purposes of this paragraph, 
                the terms `contract', `full cost', `irrigation water', 
                and `project' have the meanings given such terms in 
                section 202 of the Reclamation Reform Act of 1982 (43 
                U.S.C. 390bb).''.
    (c) Conforming Amendments.--Section 1001(5)(A) of the Food Security 
Act of 1985 (7 U.S.C. 1308(5)(A)) is amended by striking ``through 
1001C'' and inserting ``through 1001D''.

SEC. 306. OFF BUDGET EXPENDITURES.

    (a) Knutson-Vandenberg Fund.--Section 3 of the Act of June 9, 1930 
(commonly known as the Knutson-Vandenberg Act; 16 U.S.C. 576b), is 
amended by striking ``and shall constitute a special fund, which is 
hereby appropriated and made available until expended,'' in the second 
sentence and inserting ``and are authorized to be appropriated''.
    (b) Deposits From Brush Disposal.--The paragraph relating to 
deposits from brush disposal under the heading ``forest service'' in 
the Act of August 11, 1916 (39 Stat. 462; 16 U.S.C. 490), is amended by 
striking ``and constitute a special fund, which is hereby appropriated 
and shall remain available until expended'' and inserting ``and are 
authorized to be appropriated for the purpose of disposing of such 
brush and other debris''.
    (c) National Forests Roads and Trails.--Section 7 of Public Law 88-
657 (commonly known as the Forest Roads and Trails Act; 16 U.S.C. 538) 
is amended by striking ``may be placed in a fund to be available'' and 
inserting ``are authorized to be appropriated''.
    (d) Timber Salvage Sale Fund.--Section 303(d) of Public Law 96-451 
(16 U.S.C. 1606a) is amended by striking ``The Secretary of 
Agriculture'' and inserting ``In such amounts as are provided in 
advance in appropriations Acts, the Secretary of Agriculture''.

SEC. 307. DEPOSIT OF TAYLOR GRAZING ACT RECEIPTS IN TREASURY.

    Section 10 of the Act of June 28, 1934 (commonly known as the 
Taylor Grazing Act; 43 U.S.C. 315i), is amended by striking all after 
``miscellaneous receipts'' and inserting a period.

SEC. 308. REPEAL OF LIVESTOCK FEED ASSISTANCE PROGRAM.

    The Emergency Livestock Feed Assistance Act of 1988 (title VI of 
the Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is repealed.

SEC. 309. RIGHT-OF-WAY PERMITS.

    (a) In General.--No permit, lease, or authorization for the use of 
any area of the public lands or National Forests for rights-of-way 
(including rights-of-way for power lines, oil and gas pipelines, water 
conveyances, and other utility lines) shall remain in force and effect 
after October 1, 1999, unless, by such date, and by October 1 of each 
year thereafter, the holder of such permit, lease, or authorization 
pays to the Secretary of the Interior or the Secretary of Agriculture, 
as appropriate, an amount equal to the fair market value, as determined 
by such Secretary, of the right to use and occupy such area for such 
purposes.
    (b) Definition.--For the purposes of this section, the term 
``public lands'' shall have the same meaning as defined in section 
103(e) of the Federal Land Policy Management Act of 1976 (43 U.S.C. 
1702(e)).

SEC. 310. OIL AND GAS RENTALS.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended as 
follows:
            (1) In section 14 by striking out ``a rental of $1 per 
        acre'' and inserting ``a rental established by the Secretary of 
        the Interior'' and by adding the following at the end thereof: 
        ``The Secretary shall establish fair market value rental fees 
        under this section based upon the rental fees which would be 
        charged in arm's length transactions for comparable leases of 
        oil and gas resources on non-Federal land.''.
            (2) In section 17(d) by striking out ``rental of not less 
        than $1.50 per acre per year for the first through fifth years 
        of the lease and not less than $2 per acre per year for each 
        year thereafter'' and inserting ``rental established by the 
        Secretary of the Interior'' and by adding the following at the 
        end thereof: ``The Secretary shall establish fair market value 
        rental fees under this section based upon the rental fees which 
        would be charged in arms length transactions for comparable 
        leases of oil and gas resources on non-Federal land.''.
            (3) In section 21(a) by striking out ``rental, payable at 
        the beginning of each year, at the rate of 50 cents per acre 
        per annum, for the lands included in the lease,'' and inserting 
        ``rental established by the Secretary of the Interior'' and by 
        adding the following at the end thereof: ``The Secretary shall 
        establish fair market value rental fees under this section 
        based upon the rental fees which would be charged in arms 
        length transactions for comparable leases on non-Federal 
        land.''.
            (4) In section 31(e)(2) by striking ``rate of not less than 
        $10 per acre per year, or the inclusion in a reinstated lease 
        issued pursuant to the provisions of section 17(c) of this Act 
        of a requirement that future rentals shall be at a rate not 
        less than $5 per acre per year'' and inserting ``fair market 
        value rate (but not less than $10 per acre per year)''.
            (5) In section 31(f)(3) by striking out ``of not less than 
        $5 per acre per year'' and inserting ``established by the 
        Secretary at fair market value based upon the rental fees which 
        would be charged in arms length transactions for comparable 
        leases on non-Federal land''.

SEC. 311. IMPROVEMENT OF MINERALS MANAGEMENT SERVICE ROYALTY 
              COLLECTION.

    The Federal Oil and Gas Royalty Simplification and Fairness Act of 
1996 (Public Law No. 104-185; 30 U.S.C. 1701 et seq.) is amended by 
adding the following new subsection after subsection (l):
    ``(m) Assessment for Underreporting of Royalty.--(1) If there is 
any underreporting of royalty owed on production from any lease for any 
production month, the Secretary may make an assessment of 20 percent of 
the amount of that underreporting if any of the following circumstances 
occurs:
            ``(A) For a Federal lease, the underreporting exceeds 10 
        percent of the value of production which should have been 
        reported and exceeds $1,500, or the underreporting exceeds 5 
        percent of the value of production which should have been 
        reported and exceeds $15,000.
            ``(B) For an Indian lease, the underreporting exceeds 10 
        percent of the value of production which should have been 
        reported and exceeds $125.
            ``(C) For either a Federal or Indian lease, no royalty was 
        paid on production from that lease for the production month 
        immediately preceding the month for which the underreporting 
        was submitted, regardless of the amount of the underreporting 
        or the amount of royalty owed.
    ``(2) For purposes of this subsection, the term `underreporting' 
means the amount by which the royalty on the value of the production 
which should have been reported exceeds the royalty on the value of the 
production which was reported.
    ``(3) The Secretary shall not impose the assessment specified in 
paragraph (1) if the underreporting is corrected before the date the 
person against whom the assessment is made receives written notice from 
the Secretary that an underreporting may have occurred.
    ``(4) The Secretary shall not impose the assessment specified in 
paragraph (1) with respect to an underreporting which is corrected in 
the course of performing an order to correct royalty accounting and 
recompute and pay royalties due. This exception does not apply to the 
specific instances of underreporting discovered during audit which 
formed the basis of the order to recompute and pay.
    ``(5)(A) The Secretary shall waive the portion of an assessment 
specified in paragraph (1) attributable to that portion of the 
underreporting for which a person demonstrates that--
            ``(i) the person had substantial authority for reporting 
        royalty on the value of the production on the basis on which it 
        was reported, or
            ``(ii) the person meets any other exception which the 
        Secretary may, by rule, establish.
    ``(B) For purposes of this paragraph, the term `substantial 
authority' means any of the following:
            ``(i) A controlling judicial or administrative decision 
        which has not been reversed, vacated, or overruled, or a 
        controlling regulation.
            ``(ii) A body of judicial or administrative decisions or 
        regulations which provide a reasoned basis to support the 
        person's action. Such a reasoned basis must be more than a 
        merely arguable theory which is unlikely to prevail in court 
        upon a complete review of the relevant facts and authorities.
            ``(iii) A legal question of first impression.
    ``(6) Interest shall not accrue on the amount of an assessment 
under this subsection during the pendency of any administrative appeal 
of the assessment which may be allowed by rule. No hearing on the 
record in such appeal shall be necessary before an assessment is made. 
No surety instrument shall be required to secure the amount of the 
assessment pending administrative appeal.
    ``(7) An assessment under this subsection shall apply only to an 
underreporting occurring after the date of enactment of this 
subsection.
    ``(8) Notwithstanding any provision of section 206 of this Act, all 
assessments collected under this subsection shall be deposited to the 
same accounts in the Treasury or paid to the same recipients in the 
same manner as the royalty with respect to which such assessment is 
made.
    ``(9) For purposes of this subsection, the definitions in section 2 
of this Act shall be deemed to also apply to coal, any other mineral, 
geothermal steam, or associated geothermal resources.''.
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