waters that were included in the inventory pursuant to the 
general welfare standard set forth in section 403(a) of 
such Act (30 U.S.C. 1233(a)) before the date of enact-
ment of this Act that are determined in the review to no 
longer meet the criteria set forth in paragraphs (1) and 
(2) of section 403(a) of such Act, as amended by this Act, 
shall be removed from the inventory. 
(c) CLARIFICATION.—For the purposes of section 
528(2) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1278(2)), the term ‘‘government- 
financed’’ shall not include funds made available under 
title IV of such Act. 
(d) PAYMENT OF TRIBAL.—(1) Notwithstanding any 
other provision of law and by not later than December 
31, 2004, the Secretary of the Interior shall use amounts 
allocated under section 402(g)(2) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 
1232(g)(2)) (excluding interest) prior to the date of enact-
ment of this Act for the program set forth under section 
406 of that Act (30 U.S.C. 1236), but not appropriated 
prior to such date, to pay an amount determined in ac-
cordance with paragraph (2) to any Indian tribe that has 
made the certification referred to in section 411 of the 
Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1240a).
(2) The payment to an Indian tribe under paragraph 
(1) shall not exceed the aggregate unappropriated amount 
allocated to such tribe under section 402(g)(1)(B) of such 
Act (43 U.S.C. 1232(g)(1)(B)) as of the date of the enact-
ment of this Act, and shall be made in lieu of payment 
of such aggregate allocated amount. 
(e) REMINING.— 
(1) 
EXTENSION
OF
AUTHORITY.—Section 
511(e) of the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1260(e)) is amended by 
striking ‘‘2004’’ and inserting ‘‘2019’’. 
(2) SAVINGS CLAUSE.—Except as provided in 
paragraph (1), nothing in this section shall be con-
sidered to modify or amend any provision of law gov-
erning coal remining. 
(f) ENSURING AVAILABILITY OF MINERAL LEASING 
ACT REVENUES.—Section 949(a)(1) of the Energy Policy 
Act of 2004 is amended by inserting ‘‘(A)’’ before the first 
sentence, and by adding at the end the following: 
‘‘(B) Amounts derived from leases issued under 
the Mineral Leasing Act shall be deposited under 
subparagraph (A) for a fiscal year only to the extent 
that amounts derived from leases issued under the 
Outer Continental Shelf Lands Act and available for 
such deposit for the fiscal year (after distribution of
any such funds as described in subsection (c)) are 
less than $150,000,000.’’. 
TITLE III—AMENDMENTS OF IN-
TERNAL REVENUE CODE OF 
1986 
SEC. 301. WAIVER OF PREMIUMS FOR CERTAIN OPERA-
TORS. 
(a) IN GENERAL.—Section 9704 of the Internal Rev-
enue Code of 1986 (relating to liability of assigned opera-
tors) is amended by adding after subsection (i) the fol-
lowing new subsection: 
‘‘(j) WAIVER OF PREMIUMS FOR CERTAIN OPERA-
TORS.—No premium shall be required to be paid under 
this section to the extent of the amount of such premium 
which is paid under section 415 of the Surface Mining 
Control and Reclamation Act of 1977.’’ 
(b) USE
OF AMOUNTS PAID FROM ABANDONED 
MINE RECLAMATION FUND.—Paragraph (2) of section 
9705(b) of such Code is amended to read as follows: 
‘‘(2) USE OF FUNDS.—Any amount transferred 
under paragraph (1) for any fiscal year shall be used 
as provided in such section 402(h) (as in effect on 
the date of the enactment of the Abandoned Mine 
Lands Reclamation Reform Act of 2004).’’.
SEC. 302. PREPAYMENT OF PREMIUM LIABILITY FOR COAL 
INDUSTRY HEALTH BENEFITS. 
(a) IN GENERAL.—Section 9704 of the Internal Rev-
enue Code of 1986 (relating to liability of assigned opera-
tors) is amended by adding at the end the following new 
subsection: 
‘‘(k) PREPAYMENT OF PREMIUM LIABILITY.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) a payment meeting the requirements 
of paragraph (2) is made to the Combined 
Fund— 
‘‘(i) by or on behalf of any assigned 
operator which is a member of a controlled 
group of corporations (within the meaning 
of section 52(a)) the common parent of 
which is a corporation the shares of which 
are publicly traded on a United States ex-
change, or 
‘‘(ii) by or on behalf of any related 
person to any assigned operator within 
that controlled group of corporations, and 
‘‘(B) the common parent of such group is 
jointly and severally liable for any premium 
which would (but for this subsection) be re-
quired to be paid by any such operator,
then no person (other than such common parent) 
shall be liable for any premium for which any oper-
ator within that controlled group of corporations 
would otherwise be liable. 
‘‘(2) REQUIREMENTS.—A payment meets the 
requirements of this paragraph if— 
‘‘(A) the amount of the payment is not less 
than the present value of the total premium li-
ability of the assigned operator or operators 
within that controlled group of corporations for 
its or their assignees under this chapter with 
respect to the Combined Fund (as determined 
by the operator’s enrolled actuary, as defined in 
section 7701(a)(35)), using actuarial methods 
and assumptions each of which is reasonable 
and which are reasonable in the aggregate, as 
determined by such enrolled actuary; 
‘‘(B) a signed actuarial report is filed with 
the Secretary of Labor by such enrolled actuary 
containing— 
‘‘(i) the date of the actuarial valuation 
applicable to the report; and 
‘‘(ii) a statement by the enrolled actu-
ary signing the report that to the best of 
the actuary’s knowledge the report is com-
plete and accurate and that in the actu-
ary’s opinion the actuarial assumptions 
used are in the aggregate reasonably re-
lated to the experience of the operator and 
to reasonable expectations; and 
‘‘(C) 30 calendar days have elapsed after 
the report required by subparagraph (B) is filed 
with the Secretary of Labor, and the Secretary 
of Labor has not notified the assigned operator 
in writing that the requirements of this para-
graph have not been satisfied. 
‘‘(3) USE
OF
PREPAYMENT.—The Combined 
Fund shall establish and maintain an account for 
each assigned operator making such payment or on 
behalf of which such payment was made (with earn-
ings thereon) and use all amounts in such account 
exclusively to pay premiums that would (but for this 
subsection) be required to be paid by the assigned 
operator. Upon termination of the obligations for 
premium liability of any assigned operator for which 
such account is maintained, all funds remaining in 
such account (and earnings thereon) shall be re-
funded to such entity as may be designated by the 
common parent described in paragraph (1)(B).’’.
(b) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.—Section 9711(c) of such Code is amended to 
read as follows: 
‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.— 
‘‘(1) Each related person of a last signatory op-
erator to which subsection (a) or (b) applies shall be 
jointly and severally liable with the last signatory op-
erator for the provision of health care coverage de-
scribed in subsection (a) or (b), provided, however, 
that an assigned operator who is a last signatory op-
erator under section 9711 and a member of a con-
trolled group of corporations (within the meaning of 
section 52(a)) or a related person to any assigned 
operator within that controlled group of corpora-
tions, that has met the requirements of section 
9704(k) (1) and (2) and has provided security de-
scribed in paragraph 9711(c)(2), shall be relieved of 
all such joint and several liability as of the date 
upon which such requirements are met, provided, 
however, that the common parent of such controlled 
group of corporations shall remain liable for the pro-
vision of benefits required to be provided under sub-
section (a) or (b).
‘‘(2) Security meets the requirements of this 
paragraph if— 
‘‘(A) the security (in the form of a bond, 
letter of credit or cash escrow) is provided to 
the trustees of the 1992 UMWA Benefit Plan, 
solely for the purpose of paying premiums for 
beneficiaries described in section 9712(b)(2)(B), 
equal in amount to 1 year’s liability of the last 
signatory operator under section 9711, deter-
mined by using the average cost of such opera-
tor’s liability during its prior 3 calendar years; 
‘‘(B) the security is in addition to any 
other security required under any other provi-
sion of this Act; and 
‘‘(C) the security remains in place for 5 
years. 
‘‘(3) Upon termination of the obligations of the 
last signatory operator providing such security or 
the expiration of 5 years, whichever occurs first, the 
full amount of such security (and earnings thereon) 
shall be refunded to the last signatory operator.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act.
SEC. 303. DEFINITION OF SUCCESSOR IN INTEREST. 
(a) IN GENERAL.—Subsection (c) of section 9701 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(8) SUCCESSOR IN INTEREST.— 
‘‘(A) SAFE HARBOR.—The term ‘successor 
in interest’ shall not include any person— 
‘‘(i) who is an unrelated person to a 
seller; and 
‘‘(ii) who purchases for fair market 
value assets, or all the stock of a related 
person, in a bona fide, arm’s-length sale 
which is subject to section 5 of the Securi-
ties Act of 1933 (15 U.S.C. 77f et seq.) or 
the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.). 
‘‘(B) UNRELATED
PERSON.—The term 
‘unrelated person’ means a purchaser who does 
not bear a relationship to the seller described in 
section 267(b).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to transactions after the date 
of the enactment of this Act. 
Æ