I

105TH CONGRESS

1ST SESSION H. R. 780

To provide for the reclamation of abandoned hardrock mines and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 13, 1997

Mr. MILLER of California (for himself and Mr. RAHALL) introduced the following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committee on Resources, 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 provide 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.

4 This Act may be cited as the ‘‘Abandoned Hardrock

5 Mines Reclamation Act of 1997’’.

6 SEC. 2. RECLAMATION FEE.

7 (a) RESERVATION OF RECLAMATION FEE.—Any per8 son producing hardrock minerals from a mine that was

9 within a mining claim that has subsequently been patented
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1 under the general mining laws shall pay a reclamation fee

2 to the Secretary under this section. The amount of such

3 fee shall be equal to a percentage of the net proceeds from

4 such mine. The percentage shall be based upon the ratio

5 of the net proceeds to the gross proceeds related to such

6 production in accordance with the following table:

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

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

8 $500,000 from minerals produced in any calendar year

9 shall be exempt from the reclamation fee under this sec10 tion for that year if such proceeds are from one or more

11 mines located on a single patented claim or on two or more

12 contiguous patented claims.

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

14 this section for any calendar year shall be paid to the Sec15 retary within 60 days after the end of such year.

16 (d) DISBURSEMENT OF REVENUES.—The receipts

17 from the fee collected under this section shall be paid into

18 the Abandoned Minerals Mine Reclamation Fund estab19 lished under this Act.
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1 (e) EFFECTIVE DATE.—This section shall take effect

2 with respect to hardrock minerals produced in calendar

3 years after December 31, 1996.

4 SEC. 3. ABANDONED MINERALS MINE RECLAMATION FUND.

5 (a) ESTABLISHMENT.—(1) There is established on

6 the books of the Treasury of the United States an interest7 bearing fund to be known as the Abandoned Minerals

8 Mine Reclamation Fund (hereinafter referred to in this

9 section as the Fund). The Fund shall be administered by

10 the Secretary.

11 (2) The Secretary shall notify the Secretary of the

12 Treasury as to what portion of the Fund is not, in his

13 judgment, required to meet current withdrawals. The Sec14 retary of the Treasury shall invest such portion of the

15 Fund in public debt securities with maturities suitable for

16 the needs of such Fund and bearing interest at rates de17 termined by the Secretary of the Treasury, taking into

18 consideration current market yields on outstanding mar19 ketplace obligations of the United States of comparable

20 maturities. The income on such investments shall be cred21 ited to, and from a part of, the Fund.

22 (b) USE AND OBJECTIVES OF THE FUND.—The Sec23 retary is, subject to appropriations, authorized to use

24 moneys in the Fund for the reclamation and restoration

25 of land and water resources adversely affected by past
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1 mineral (other than coal and fluid minerals) and mineral

2 material mining, including but not limited to, any of the

3 following:

4 (1) Reclamation and restoration of abandoned

5 surface mined areas.

6 (2) Reclamation and restoration of abandoned

7 milling and processing areas.

8 (3) Sealing, filling, and grading abandoned deep

9 mine entries.

10 (4) Planting of land adversely affected by past

11 mining to prevent erosion and sedimentation.

12 (5) Prevention, abatement, treatment and con13 trol of water pollution created by abandoned mine

14 drainage.

15 (6) Control of surface subsidence due to aban16 doned deep mines.

17 (7) Such expenses as may be necessary to ac18 complish the purposes of this section.

19 (c) ELIGIBLE AREAS.—(1) Land and waters eligible

20 for reclamation expenditures under this section shall be

21 those within the boundaries of States that have lands sub22 ject to the general mining laws—

23 (A) which were mined or processed for minerals

24 and mineral materials or which were affected by

25 such mining or processing, and abandoned or left in
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1 an inadequate reclamation status prior to the date

2 of enactment of this title;

3 (B) for which the Secretary makes a determina4 tion that there is no continuing reclamation respon5 sibility under State or Federal laws; and

6 (C) for which it can be established that such

7 lands do not contain minerals which could economi8 cally be extracted through the reprocessing or remin9 ing of such lands.

10 (2) Sites and areas designated for remedial action

11 pursuant to the Uranium Mill Tailings Radiation Control

12 Act of 1978 (42 U.S.C. 7901 and following) or which have

13 been listed for remedial action pursuant to the Com14 prehensive Environmental Response Compensation and

15 Liability Act of 1980 (42 U.S.C. 9601 and following) shall

16 not be eligible for expenditures from the Fund under this

17 section.

18 SEC. 4. DEFINITIONS.

19 As used in this Act:

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

21 of any extracted hardrock mineral which was—

22 (A) sold;

23 (B) exchanged for any thing or service;

24 (C) removed from the country in a form

25 ready for use or sale; or
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1 (D) initially used in a manufacturing proc2 ess or in providing a service.

3 (2) The term ‘‘net proceeds’’ means gross pro4 ceeds less the sum of the following deductions:

5 (A) The actual cost of extracting the min6 eral.

7 (B) The actual cost of transporting the

8 mineral to the place or places of reduction, re9 fining and sale.

10 (C) The actual cost of reduction, refining

11 and sale.

12 (D) The actual cost of marketing and de13 livering the mineral and the conversion of the

14 mineral into money.

15 (E) The actual cost of maintenance and re16 pairs of the following:

17 (i) All machinery, equipment, appara18 tus and facilities used in the mine.

19 (ii) All milling, refining, smelting and

20 reduction works, plants and facilities.

21 (iii) All facilities and equipment for

22 transportation.

23 (F) The actual cost of fire insurance on

24 the machinery, equipment, apparatus, works,
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1 plants and facilities mentioned in subparagraph

2 (E).

3 (G) Depreciation of the original capitalized

4 cost of the machinery, equipment, apparatus,

5 works, plants and facilities mentioned in sub6 paragraph (E).

7 (H) All money expended for premiums for

8 industrial insurance, and the actual cost of hos9 pital and medical attention and accident bene10 fits and group insurance for all employees.

11 (I) The actual cost of developmental work

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

13 when operated as a unit.

14 (J) All royalties and severance taxes paid

15 to the Federal Government or State govern16 ments.

17 (3) The term ‘‘hardrock mineral’’ means any

18 mineral other than a mineral that would be subject

19 to disposition under any of the following if located

20 on land subject to the general mining laws:

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

22 181 and following).

23 (B) The Geothermal Steam Act of 1970

24 (30 U.S.C. 100 and following).
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1 (C) The Act of July 31, 1947, commonly

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

3 601 and following).

4 (D) The Mineral Leasing for Acquired

5 Lands Act (30 U.S.C. 351 and following).

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

7 of the Interior.

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

9 an interest in land which has been obtained pursu10 ant to sections 2325 and 2326 of the Revised Stat11 utes (30 U.S.C. 29 and 30) for vein or lode claims

12 and sections 2329, 2330, 2331, and 2333 of the Re13 vised Statutes (30 U.S.C. 35, 36 and 37) for placer

14 claims, or section 2337 of the Revised Statutes (30

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

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

17 those Acts which generally comprise chapters 2,

18 12A, and 16, and sections 161 and 162 of title 30

19 of the United States Code.

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