competitive leases under paragraph (3) at the end of 
the applicable period under paragraph (1) or (2) 
shall be void. 
(c) EXISTING
CLAIMS
WITH
PLAN
OF
OPER-
ATIONS.— 
(1) IN GENERAL.—In the case of any claim 
under the general mining laws for which a plan of 
operations has been approved but for which oper-
ations have not commenced before the on the effec-
tive date of this Act— 
(A) during the 10-year period beginning on 
the effective date of this Act— 
(i) mineral activities on lands subject 
to such claim shall be subject to such plan 
of operations; and 
(ii) the Secretary shall allow the oper-
ator to make changes to such plan subject 
to applicable law as in effect on the day 
before the effective date of this Act if the 
Secretary determines that the requested 
changes are minor; and 
(B) the operator shall bring such mineral 
activities into compliance with this Act by the 
end of such 10-year period. 
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(2) ACTIVITIES PENDING DECISION ON MODI-
FICATION TO PLAN OF OPERATIONS.—If an applica-
tion for modification of a plan of operations referred 
to in paragraph (1)(A)(ii) has been timely submitted 
by the claim holder and an approved plan of oper-
ations expires before the Secretary concerned takes 
action on such application, mineral activities and 
reclamation may continue in accordance with the 
terms of the expired plan of operations until the 
Secretary concerned makes an administrative deci-
sion on the application. 
(3) CONVERSION REQUIREMENT.— 
(A) IN GENERAL.—A claim described in 
paragraph (1) may remain in effect for a period 
of not more than 10 years. 
(B) FEE.—A claim described in paragraph 
(1) that is not converted to a noncompetitive 
lease pursuant to the regulations issued under 
subsection (d) before the end of such period 
shall, beginning on the first date after the end 
of such period, be subject to a fee of $100 per 
acre per day until such claim is converted to a 
noncompetitive lease. 
(d) CONVERSION REGULATIONS.— 
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(1) IN GENERAL.—Not later than 1 year after 
the effective date of this Act, the Secretary shall 
issue regulations regarding the conversion of existing 
mining claims to noncompetitive mining leases. 
(2) CONTENT.—Such regulations shall— 
(A) prohibit the conversion of a mining 
claim to a mining lease by a claim holder who 
is in violation of this Act or other State or Fed-
eral environmental, health, or worker safety 
laws; 
(B) allow the Secretary to exercise discre-
tion to include nonmineral lands within the 
boundaries of any millsite associated with the 
mining claim to be converted to a noncompeti-
tive lease; 
(C) prohibit the area in any noncompetitive 
mining lease issued under this section from ex-
ceeding the maximum area authorized by this 
Act to be leased to any person; 
(D) require the consent of the surface 
managing agency for conversion of a mining 
claim to a noncompetitive mining lease; 
(E) require the financial terms of the con-
verted noncompetitive mining lease to be the 
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same as those provided in this Act for other 
hardrock mining leases; and 
(F) include any other terms the Secretary 
considers appropriate. 
(e) NATIONAL ENVIRONMENTAL POLICY ACT.—The 
Secretary is not required to conduct an environmental 
analysis under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) to issue a noncompetitive 
mining lease under this section, unless such noncompeti-
tive mining lease modifies or extends the surface disturb-
ance already authorized under a mine plan of operations 
covering the mining claim that is converted. 
SEC. 102. LIMITATION ON PATENTS. 
(a) MINING CLAIMS.— 
(1) DETERMINATIONS
REQUIRED.—After the 
effective date of this Act, no patent shall be issued 
by the United States for any mining claim located 
under the general mining laws unless the Secretary 
determines that, for such mining claim— 
(A) a patent application was filed with the 
Secretary on or before September 30, 1994; 
and 
(B) all requirements established under sec-
tions 2325 and 2326 of the Mining Law of 
1872 (30 U.S.C. 29 and 30), in the case of a 
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vein or lode claim, or sections 2329, 2330, 
2331, and 2333 of that Act (30 U.S.C. 35, 36, 
and 37), in the case of a placer claim, were 
fully complied with by that date. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations required under paragraph (1) for 
any mining claim, the claim holder shall be entitled 
to the issuance of a patent in the same manner and 
degree to which such claim holder would have been 
entitled to before the effective date of this Act, un-
less such determinations are withdrawn or invali-
dated by the Secretary or by a court of the United 
States. 
(b) MILLSITES.— 
(1) DETERMINATIONS
REQUIRED.—After the 
effective date of this Act, no patent shall be issued 
by the United States for any millsite located under 
the general mining laws unless the Secretary deter-
mines that, for such millsite— 
(A) a patent application was filed with the 
Secretary on or before September 30, 1994; 
and 
(B) all requirements applicable to such 
patent application were fully complied with be-
fore that date. 
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(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations required under paragraph (1) for 
any millsite, the claim holder shall be entitled to the 
issuance of a patent in the same manner and degree 
to which such claim holder would have been entitled 
to before the effective date of this Act, unless such 
determinations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
SEC. 
103. 
PROSPECTING 
LICENSES 
AND 
HARDROCK 
LEASES. 
(a) IN GENERAL.—No person may conduct mineral 
prospecting for commercial purposes for any hardrock 
mineral on Federal land without a prospecting license or 
a small miner’s lease. 
(b) PROSPECTING LICENSES.— 
(1) IN GENERAL.—The Secretary may, under 
such regulations as the Secretary may issue and 
with the concurrence of the relevant surface manage-
ment agency, grant an applicant a prospecting li-
cense that shall give the exclusive right to prospect 
for specified hardrock minerals on Federal land for 
a period not longer than 2 years. 
(2) MAXIMUM AREA.—The area subject to a 
prospecting license granted under paragraph (1) 
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shall not exceed 2,560 acres of land, in reasonably 
compact form. 
(3) 
PROSPECTING
LICENSE
APPLICATION 
FEE.—The Secretary shall charge a fee for each 
prospecting license application to cover the costs of 
reviewing such application. 
(4) ANNUAL
RENTAL.—Each prospecting li-
cense granted under paragraph (1) shall be subject 
to annual rentals equal to $10 per acre per year. 
(5) TERMS AND CONDITIONS.—A prospecting li-
cense shall conform with the terms and conditions of 
a comprehensive land use plan approved under— 
(A) the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1701 et seq.); or 
(B) the Forest and Rangeland Renewable 
Resources Planning Act of 1974 (16 U.S.C. 
1600 et seq.). 
(6) AREAS WITHOUT APPROVED COMPREHEN-
SIVE
LAND
USE
PLAN.—For land covered by a 
prospecting license for which a comprehensive land 
use plan treating hardrock mining as a multiple-use 
activity has not been completed, the Secretary con-
cerned shall ensure that such land is suitable for 
mineral activities. 
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(7) EXTENSION.—The Secretary may extend a 
prospecting license granted under this subsection for 
not more than additional 4 years upon a showing by 
the licensee that— 
(A) the licensee explored with reasonable 
diligence and was unable to determine the exist-
ence and workability of a valuable mineral de-
posit covered by the license; or 
(B) if the licensee failed to perform dili-
gent prospecting activities, such failure was due 
to conditions beyond the control of the licensee. 
(c) NONCOMPETITIVE LEASES.— 
(1) IN GENERAL.—Upon a showing to the satis-
faction of the Secretary by a prospecting licensee 
under subsection (a) that a valuable mineral deposit 
has been discovered by the licensee within an area 
covered by the prospecting license and with the con-
sent of the surface agency, the licensee shall be enti-
tled to a lease for any or all of the land included in 
the prospecting license, as well as any nonmineral 
lands necessary for processing or milling operations, 
at a royalty of not less than 12.5 percent of the 
gross value of production of hardrock minerals or 
mineral concentrates or products derived from 
hardrock minerals under the lease. 
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(2) RENTALS.— 
(A) IN
GENERAL.—Rentals for a lease 
under this section shall be set by the Secretary 
at not less than $10 per acre per year, with 
rentals paid in any 1 year credited against roy-
alties accruing for that year. 
(B) OPERATIONS PERMIT.—A lessee under 
this section is not entitled to an operations per-
mit. 
(3) LEASE PERIOD.— 
(A) IN GENERAL.—A lease under this sub-
section shall be for a period of 20 years, with 
the right to renew for successive periods of 10 
years if hardrock minerals are being produced 
in commercial quantities under the lease. 
(B) EXTENSION
DURING
NONPRODUC-
TION.—The Secretary may issue not more than 
1 10-year extension of a lease under this sub-
section if hardrock minerals are not being pro-
duced in commercial quantities at the end of 
the primary, or any subsequent, term of such 
lease and— 
(i) it is in the interest of conservation 
or reclamation maintenance; 
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(ii) the lessee shows that the lease 
cannot be successfully operated at a profit; 
or 
(iii) the Secretary determines that 
issuing such extension is appropriate. 
(C) DEFINITION
OF
COMMERCIAL
QUAN-
TITIES.—In this paragraph, the term ‘‘commer-
cial quantities’’ means any economic amount 
sold, bartered, or traded for profit. 
(d) CUMULATIVE ACREAGE LIMITATION.—No person 
may take, hold, own, or control at 1 time, whether ac-
quired directly from the Secretary under this Act or other-
wise, hardrock mining leases or licenses for an aggregate 
of more than 20,480 acres in any 1 State. 
(e) REDUCTION OF ROYALTY RATE.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary— 
(A) may reduce the royalty rate for a lease 
under this section upon a showing by clear and 
convincing evidence by the operator that pro-
duction would not occur without the reduction 
in royalty rate; and 
(B) may reduce the royalty and rental 
rates for a lease under this section to encourage 
exploration for and development of critical min-
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erals (as such term is defined in section 
7002(a) of the Energy Act of 2020 (30 U.S.C. 
1606(a)). 
(2) LIMITATION.—The Secretary may not re-
duce the royalty rate for a lease pursuant to para-
graph (1) to less than 6.25 percent. 
(f) PROTECTION
OF
LAND
AND
OTHER
RE-
SOURCES.—The Secretary, in consultation with any appli-
cable surface management agency, may include in any 
lease or license issued under this Act such provisions as 
are necessary to adequately protect land and other re-
sources in the vicinity of the area subject to the lease or 
license. 
SEC. 104. COMPETITIVE LEASING. 
(a) IN GENERAL.—Subject to sections 111 and 112, 
Federal land known to contain valuable mineral deposits 
that is not covered by claims, licenses, or leases issued 
under this Act may only be open to hardrock mineral ex-
ploration or development through competitive leasing by 
the Secretary through such methods the Secretary may 
adopt by regulation and in such areas as the Secretary 
may determine, including nonmineral lands the Secretary 
considers necessary for processing or milling operations. 
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(b) LIMITATION.—The total area of land subject to 
a competitive lease under this section shall not exceed 
2,560 acres. 
(c) TERMS AND REQUIREMENTS.—All terms and re-
quirements for competitive leases under this section shall 
be the same as if the leases were issued noncompetitively 
under section 103(c). 
SEC. 105. SMALL MINER’S LEASE. 
(a) IN GENERAL.—The Secretary may issue a small 
miner’s lease to a qualified small miner that applies, under 
such regulations as the Secretary may issue, including 
conditions to require diligent development of such lease 
and to ensure protection of surface resources and ground 
water. 
(b) EXCLUSIVE RIGHT.—A small miner’s lease shall 
give the lessee the exclusive right to prospect for hardrock 
minerals for 3 years on not more than 200 acres of contig-
uous or noncontiguous Federal land. 
(c) APPLICATION FEE.—The Secretary shall charge 
a reasonable application fee for a small miner’s lease 
under this subsection (a). 
(d) RENTALS.—Annual rentals for a small miner’s 
lease issued under this section shall be $5 per acre per 
year for the first 3 years. 
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(e) RENEWAL.—A small miner’s leases issued under 
this section may be renewed for any number of additional 
3-year periods. The rental for such a renewed lease shall 
be $10 per acre per year rental charged. 
(f) CHALLENGE.— 
(1) IN GENERAL.—Any individual may file a 
challenge with the Secretary that a lessee is in viola-
tion of the diligence terms of a small miner’s lease 
or does not qualify as a small miner. 
(2) RENEWAL
WHEN
SUBJECT
TO
CHAL-
LENGE.—A small miner’s lease that is subject to a 
challenge under paragraph (1) may not be renewed 
unless the Secretary has determined that the lessee 
is a small miner and is in compliance with all the 
terms of the small miner’s lease. 
(g) NO ROYALTIES.—The Secretary shall not charge 
royalties for commercial production under a small miner’s 
lease. 
(h) CONVERSION OF EXISTING CLAIMS.—A claim ex-
isting on the effective date of this Act that belongs to an 
individual that qualifies as a small miner may be converted 
to a small miner’s lease under the same terms and condi-
tions that apply to a small miner’s lease under this sec-
tion, except that such lease— 
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(1) shall not be subject to rental during the pri-
mary term of the lease; 
(2) shall be subject to a rental of $5 per acre 
per year for the first 3-year renewal of the lease; 
and 
(3) shall be subject to a rental of $10 per acre 
per year for any subsequent 3-year renewal of the 
lease. 
(i) LIMITATIONS.—A small miner’s lease— 
(1) may only be held by the primary lease hold-
er, a spouse thereof, or a direct descendent thereof; 
(2) may not be sold or transferred, other than 
to a spouse or direct descendent of the primary lease 
holder; and 
(3) is subject to all permitting requirements 
under this Act. 
(j) CONVERSION TO HARDROCK MINERAL LEASE.— 
(1) IN GENERAL.—If, with regard to a small 
miner’s lease, the lessee does not qualify as a small 
miner at the time such lessee applies for a renewal 
of such lease, such lessee shall not be eligible to 
renew such lease, but shall be eligible for a non-
competitive hardrock mineral lease issued under sec-
tion 103(c). 
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(2) 
ROYALTIES.—Notwithstanding 
section 
103(c)(1), royalties under a small miner’s lease con-
verted to a hardrock mineral lease under this sub-
section shall only be due on the gross income that 
exceeds $50,000 annually or the amount of gross in-
come specified by the Secretary as of the time such 
noncompetitive lease is issued. 
SEC. 106. LAND CONTAINING NONHARDROCK MINERALS; 
OTHER USES. 
(a) IN GENERAL.—In issuing licenses and leases 
under this Act for land that contains deposits of coal or 
other nonhardrock minerals, the Secretary shall reserve to 
the United States such nonhardrock minerals for disposal 
under applicable laws. 
(b) OTHER
USES
OF
LICENSED
AND
LEASED 
LANDS.— 
(1) IN
GENERAL.—The Secretary shall issue 
regulations to allow for other uses of the land cov-
ered by a prospecting license under this Act, includ-
ing leases for other minerals, if such other uses 
would not unreasonably interfere with operations 
under the prospecting license. 
(2) TERMS AND CONDITIONS.—The Secretary 
shall include in each prospecting license issued under 
section 103(b) such terms and conditions as the Sec-
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retary determines necessary to avoid unreasonable 
interference with other uses occurring on, or other 
leases of, the licensed land. 
(3) LEASES.—The Secretary shall include in 
leases issued under this Act stipulations to allow for 
simultaneous operations under other leases for the 
same land. 
SEC. 107. ROYALTY. 
(a) EXISTING PRODUCTION.— 
(1) IN GENERAL.—Production of hardrock min-
erals, mineral concentrates, or products derived from 
hardrock minerals on Federal land under an oper-
ations permit from which valuable hardrock minerals 
were produced in commercial quantities before the 
effective date of this Act, other than production 
under a small miner’s lease, shall be subject to a 
royalty established by the Secretary of not less than 
8 percent of the gross value of such production. 
(2) ADDITIONAL FEDERAL LAND.—Production 
of hardrock minerals, mineral concentrates, or prod-
ucts derived from hardrock minerals on Federal land 
added through a plan modification to an operations 
permit that is submitted after the effective date of 
this Act shall be subject to a royalty established by 
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the Secretary for such lease of not less than 12.5 
percent of the gross value such production. 
(b) LIABILITY.—The claim holder or lessee, or any 
operator to whom the claim holder or lessee has assigned 
the obligation to make royalty payments under the claim 
or lease and any person who controls such claim or lease 
holder or operator, shall be liable for payment of such roy-
alties. 
(c) DISPOSITION.—Of the revenues collected under 
this title, including rents, royalties, claim maintenance 
fees, interest charges, fines, and penalties— 
(1) 25 percent shall be paid to the State within 
the boundaries of which the leased, licensed, or 
claimed lands, or operations subject to such interest 
charges, fines, or penalties are or were located; and 
(2) the remainder shall be made available to 
carry out, to remain available until expended without 
fiscal year limitation, the Abandoned Hardrock Mine 
Reclamation Program. 
(d) DUTIES OF CLAIM HOLDERS, LESSEES, OPERA-
TORS, AND TRANSPORTERS.— 
(1) REGULATION.—The Secretary shall issue 
regulations regarding the time and manner in which 
a person who is required to make a royalty payment 
under this section shall— 
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(A) make such payment; and 
(B) notify the Secretary of any assignment 
that such person may have made of the obliga-
tion to make any royalty or other payment 
under a mining claim or lease under this title. 
(2) WRITTEN INSTRUMENT.—Any person pay-
ing royalties under this section shall file a written 
instrument, together with the first royalty payment, 
affirming that such person is responsible for making 
proper payments for all amounts due for all time pe-
riods for which such person has a payment responsi-
bility. 
(3) ADDITIONAL
AMOUNTS.—Such responsi-
bility for the periods referred to in paragraph (2) 
shall include any and all additional amounts billed 
by the Secretary and determined to be due by final 
agency or judicial action. 
(4) JOINT AND SEVERAL LIABILITY.—Any per-
son liable for royalty payments under this section 
who assigns any payment obligation shall remain 
jointly and severally liable for such royalty pay-
ments. 
(5) OBLIGATIONS.—A person conducting min-
eral activities shall— 
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(A) develop and comply with the site secu-
rity provisions in the operations permit de-
signed to protect from theft the hardrock min-
erals, concentrates, or products derived there-
from that are produced or stored on the area 
subject to a mining claim or lease, and such 
provisions shall conform with such minimum 
standards as the Secretary may issue by regula-
tion, taking into account the variety of cir-
cumstances on areas subject to mining claims 
and leases; and 
(B) not later than the fifth business day 
after production begins anywhere on an area 
subject to a mining claim or lease, or produc-
tion resumes after more than 90 days after pro-
duction was suspended, notify the Secretary, in 
the manner prescribed by the Secretary, of the 
date on which such production has begun or re-
sumed. 
(6) REQUIRED
DOCUMENTATION.—The Sec-
retary may by regulation require any person engaged 
in transporting a hardrock mineral, concentrate, or 
product derived therefrom to carry on his or her per-
son, in his or her vehicle, or in his or her immediate 
control, documentation showing, at a minimum, the 
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amount, origin, and intended destination of the 
hardrock mineral, concentrate, or product derived 
therefrom in such circumstances as the Secretary 
determines appropriate. 
(e) RECORDKEEPING
AND REPORTING REQUIRE-
MENTS.— 
(1) IN GENERAL.— 
(A) REQUIREMENT.—A claim holder or 
lessee, operator, or other person directly in-
volved in developing, producing, processing, 
transporting, purchasing, or selling hardrock 
minerals, concentrates, or products derived 
therefrom, subject to this Act, through the 
point of royalty computation shall establish and 
maintain any records, make any reports, and 
provide any information that the Secretary may 
reasonably require for the purposes of imple-
menting this section or determining compliance 
with regulations or orders under this section. 
(B) INCLUSIONS.— 
(i) RECORDS.—Records described in 
subparagraph (A) shall include periodic re-
ports, records, documents, and other data. 
(ii) REPORTS.—Reports described in 
subparagraph (A) may include pertinent 
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technical and financial data relating to the 
quantity, 
quality, 
composition 
volume, 
weight, and assay of all minerals extracted 
from the mining claim or lease. 
(2) AVAILABILITY FOR INSPECTION.—Upon the 
request of any officer or employee duly designated 
by the Secretary to conduct an audit or investigation 
pursuant to this section, the appropriate records, re-
ports, or information that may be required by this 
section shall be made available for inspection and 
duplication by such officer or employee. 
(3) FORFEITURE.—Failure by a claim holder or 
lessee, operator, or other person referred to in para-
graph (1)(A) to cooperate with an audit or investiga-
tion under paragraph (2), provide data required by 
the Secretary, or grant access to information may, 
at the discretion of the Secretary, result in involun-
tary forfeiture of the claim or lease. 
(4) MAINTENANCE OF RECORDS.— 
(A) IN
GENERAL.—Records required by 
the Secretary under this section shall be main-
tained for 7 years after release of financial as-
surance under section 306 unless the Secretary 
notifies the operator that the Secretary has ini-
tiated an audit or investigation involving such 
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records and that such records must be main-
tained for a longer period. 
(B) AUDIT
OR
INVESTIGATION.—In any 
case when an audit or investigation is under-
way, records shall be maintained until the Sec-
retary releases the operator of the obligation to 
maintain such records. 
(f) AUDITS.— 
(1) IN GENERAL.—The Secretary is authorized 
to conduct such audits of all claim holders or lessees, 
operators, transporters, purchasers, processors, or 
other persons directly or indirectly involved in the 
production or sale of minerals covered by this Act, 
as the Secretary determines necessary for the pur-
poses of ensuring compliance with the requirements 
of this section. 
(2) AVAILABILITY OF INFORMATION.—For pur-
poses of performing such audits, the Secretary shall, 
at reasonable times and upon request, have access 
to, and may copy, all books, papers, and other docu-
ments that relate to compliance with any provision 
of this section by any person. 
(g) COOPERATIVE AGREEMENTS.— 
(1) IN GENERAL.—The Secretary is authorized 
to enter into cooperative agreements with the Sec-
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Land Policy and Management Act of 1976 (43 
U.S.C. 1702)). 
(5) Units of the National Conservation System. 
(6) Areas designated for inclusion in the Na-
tional Wild and Scenic Rivers System pursuant to 
the Wild and Scenic Rivers Act (16 U.S.C. 1271 et 
seq.), areas designated for potential addition to such 
system pursuant to section 5(a) of that Act (16 
U.S.C. 1276(a)), and areas determined to be eligible 
for inclusion in such system pursuant to section 5(d) 
of such Act (16 U.S.C. 1276(d)). 
(7) Inventoried Roadless Areas under the 
Roadless Area Conservation Rule, part 294 of title 
36, Code of Federal Regulations, Colorado Roadless 
Areas, or Idaho Roadless Areas. 
SEC. 112. SUITABILITY DETERMINATION. 
(a) IN GENERAL.—In accordance with subsection (b), 
the Secretary concerned shall make each determination of 
whether land is suitable for mineral activities that is re-
quired by this Act. 
(b) SUITABILITY.— 
(1) IN
GENERAL.—The Secretary concerned 
shall consider land suitable for mineral activities if 
the Secretary concerned finds that such mineral ac-
tivities would not result in unnecessary or undue 
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