108TH CONGRESS

2D SESSION H. R. 4625

AN ACT

To reduce temporarily the royalty required to be

for other purposes.paid for sodium produced on Federal lands, and

108TH CONGRESS

2D SESSION H. R. 4625

AN ACT

To reduce temporarily the royalty required to be paid for

sodium produced 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 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Soda Ash Royalty Re3 duction Act of 2004’’.

4 SEC. 2. FINDINGS.

5 The Congress finds the following:

6 (1) The combination of global competitive pres7 sures, flat domestic demand, and spiraling costs of

8 production threaten the future of the United States

9 soda ash industry.

10 (2) Despite booming world demand, growth in

11 United States exports of soda ash since 1997 has

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

13 for such growth, including Brazil, the People’s Re14 public of China, India, the countries of eastern Eu15 rope, and the Republic of South Africa, have been

16 closed by protectionist policies.

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

18 competitor of the United States in soda ash produc19 tion, and recently supplanted the United States as

20 the largest producer of soda ash in the world.

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

22 States soda ash industry since the Department of

23 the Interior increased the royalty rate on soda ash

24 produced on Federal land, in 1996.

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

26 produced on Federal land will provide needed relief
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1 to the United States soda ash industry and allow it

2 to increase export growth and competitiveness in

3 emerging world markets, and create new jobs in the

4 United States.

5 SEC. 3. REDUCTION IN ROYALTY RATE ON SODA ASH.

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

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

8 1701(a)(9)), section 24 of the Mineral Leasing Act (30

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

10 the royalty rate on the quantity or gross value of the out11 put of sodium compounds and related products at the

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

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

14 Act shall be 2 percent.

15 SEC. 4. STUDY.

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

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

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

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

20 of the royalty reduction under this Act, including—

21 (1) the amount of sodium compounds and re22 lated products at the point of shipment to market

23 from Federal land during that 4-year period;

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

25 or maintained during the royalty reduction period;
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1 (3) the total amount of royalty paid to the

2 United States on the quantity or gross value of the

3 output of sodium compounds and related products at

4 the point of shipment to market produced during

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

6 paid to States; and

7 (4) a recommendation of whether the reduced

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

9 period beginning on the date of the enactment of

10 this Act.

Passed the House of Representatives July 19, 2004.

Attest:

Clerk.