IB 

Union Calendar No. 457 

108TH CONGRESS 

2D SESSION H. R. 4984 

[Report No. 108–739] 

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 

OCTOBER 6, 2004 

Additional sponsor: Mr. STENHOLM

OCTOBER 6, 2004 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

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. 
2 

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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’’. 

6 SEC. 2. POTASSIUM AND POTASSIUM COMPOUNDS FROM 

7 SYLVITE. 

8 (a) ROYALTY RATE.—Notwithstanding section 

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

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

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

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

13 quantity or gross value of the output from Federal lands 

14 of potassium and potassium compounds from the mineral 

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

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

17 shall be 1.0 percent. 

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

19 royalties paid pursuant to this Act during the 5-year pe20 riod referred to in subsection (a), together with any inter21 est earned from the date of payment, shall be paid by the 

22 Secretary of the Treasury to the payor of the royalties 

23 to be used solely for land reclamation purposes in accord24 ance with a schedule to implement a reclamation plan for 

25 the lands for which the royalties are paid. No payment 
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1 shall be made by the Secretary of the Treasury pursuant 

2 to this subsection until the Secretary of the Interior re3 ceives from the payor of the royalties, and approves, the 

4 reclamation plan and schedule, and submits the approved 

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

6 royalties held by the Secretary of the Treasury pursuant 

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

8 available until paid pursuant to this subsection, without 

9 further appropriation; shall not be considered as money 

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

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

12 shall not be reduced by any administrative or other costs 

13 incurred by the United States. 

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

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

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

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

18 the Congress on the effects of the royalty reduction under 

19 this Act, including a recommendation on whether the re20 duced royalty rate for potassium from sylvite should apply 

21 after the end of the 5-year period. 
Union Calendar No. 457 

108TH CONGRESS 

2D SESSION H. R. 4984 

[Report No. 108–739] 

A BILL 

To provide that the royalty rate on the output from 

other purposes. this Act shall be reduced to 1.0 percent, and for riod beginning on the date of the enactment of pounds from the mineral sylvite in the 5-year peFederal lands of potassium and potassium comOCTOBER 6, 2004 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed