I 

108TH CONGRESS 

2D SESSION H. R. 4984

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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004

Mr. PEARCE introduced the following bill; which was referred to the 

Committee on Resources 

A BILL

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.

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 ‘‘Potash Royalty Reduc5 tion Act of 2004’’. 
2

HR 4984 IH 

1 SEC. 2. POTASSIUM AND POTASSIUM COMPOUNDS FROM 

2 SYLVITE. 

3 (a) ROYALTY RATE.—Notwithstanding section 

4 102(a)(9) of the Federal Land Policy and Management 

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

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

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

8 quantity or gross value of the output from Federal lands 

9 of potassium and potassium compounds from the mineral 

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

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

12 shall be 1.0 percent. 

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

14 royalties paid pursuant to this Act during the 5-year pe15 riod referred to in subsection (a), together with any inter16 est earned from the date of payment, shall be paid by the 

17 Secretary of the Treasury to the payor of the royalties 

18 to be used solely for land reclamation purposes in accord19 ance with a schedule to implement a reclamation plan for 

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

21 shall be made by the Secretary of the Treasury pursuant 

22 to this subsection until the Secretary of the Interior re23 ceives from the payor of the royalties, and approves, the 

24 reclamation plan and schedule, and submits the approved 

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

26 royalties held by the Secretary of the Treasury pursuant 
3

HR 4984 IH 

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

2 available until paid pursuant to this subsection, without 

3 further appropriation; shall not be considered as money 

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

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

6 shall not be reduced by any administrative or other costs 

7 incurred by the United States. 

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

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

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

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

12 the Congress on the effects of the royalty reduction under 

13 this Act, including a recommendation on whether the re14 duced royalty rate for potassium from sylvite should apply 

15 after the end of the 5-year period.

Æ