I 
109TH CONGRESS 
1ST SESSION H. R. 1265 
To provide a source of funding for the reclamation of abandoned hardrock 
mines, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2005 
Mr. UDALL of Colorado introduced the following bill; which was referred to 
the Committee on Resources 
A BILL 
To provide a source of funding for the reclamation of 
abandoned hardrock mines, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, FINDINGS, AND PURPOSE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Abandoned Hardrock Mines Reclamation Funding Act’’. 
(b) FINDINGS.—The Congress finds the following: 
(1) Through various laws and policies, including 
the Act of May 10, 1872 (commonly known as the 
General Mining Law of 1872; 30 U.S.C. 22 et seq.), 
the Federal Government has encouraged the develop-
ment of gold, silver, and other mineral resources, es-
pecially in the western States, and development of 
these resources has helped create a strong economy 
and provided needed materials for many critical 
products and services. 
(2) However, historically mining activities have 
occurred in recurrent cycles of ‘‘boom’’ followed by 
‘‘bust’’, with many mines left inactive or abandoned 
at the end of each cycle. 
(3) As a result of this history, the United 
States has been left an unwelcome legacy of inactive 
or abandoned mines, including thousands of such 
mines in the western States. 
(4) Many of these inactive or abandoned mines 
pose safety hazards to the public, and the drainage 
and runoff from such mines has damaged thousands 
of stream miles to the detriment of water quality, 
particularly in several western States. 
(5) The environmental cleanup of these inactive 
or abandoned mines is hampered by lack of funding. 
Federal and State agencies and Indian tribes are 
often unable to afford to make cleanup of these mine 
sites a high priority.
(6) It is in the national interest to facilitate the 
cleanup of inactive or abandoned mines through ap-
propriate legislation that reduces this obstacle. 
(c) PURPOSE.—The purpose of this Act is to facili-
tate cleanup of inactive and abandoned mine sites by es-
tablishing a source of funding for that purpose. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) The term ‘‘gross proceeds’’ means the value 
of any extracted hardrock mineral that was— 
(A) sold; 
(B) exchanged for any thing or service; 
(C) removed from the country in a form 
ready for use or sale; or 
(D) initially used in a manufacturing proc-
ess or in providing a service. 
(2) The term ‘‘net proceeds’’ means gross pro-
ceeds less the sum of the following deductions: 
(A) The actual cost of extracting the min-
eral. 
(B) The actual cost of transporting the 
mineral to the place or places of reduction, re-
fining, and sale. 
(C) The actual cost of reduction, refining, 
and sale.
(D) The actual cost of marketing and de-
livering the mineral and the conversion of the 
mineral into money. 
(E) The actual cost of maintenance and re-
pairs of— 
(i) all machinery, equipment, appa-
ratus, and facilities used in the mine; 
(ii) all milling, refining, smelting and 
reduction works, plants and facilities; and 
(iii) all facilities and equipment for 
transportation. 
(F) The actual cost of fire insurance on 
such machinery, equipment, apparatus, works, 
plants, and facilities. 
(G) Depreciation of the original capitalized 
cost of such machinery, equipment, apparatus, 
works, plants, and facilities. 
(H) All money expended for premiums for 
industrial insurance, and the actual cost of hos-
pital and medical attention and accident bene-
fits and group insurance for all employees. 
(I) The actual cost of developmental work 
in or about the mine or upon a group of mines 
when operated as a unit.
(J) All royalties and severance taxes paid 
to the Federal Government or State govern-
ments. 
(3) The term ‘‘hardrock minerals’’ means any 
mineral other than a mineral that would be subject 
to disposition under any of the following laws if lo-
cated on land subject to the general mining laws: 
(A) The Mineral Leasing Act (30 U.S.C. 
181 et seq.). 
(B) The Geothermal Steam Act of 1970 
(30 U.S.C. 1001 et seq.). 
(C) The Act of July 31, 1947, commonly 
known as the Materials Act of 1947 (30 U.S.C. 
601 et seq.). 
(D) The Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.). 
(4) The term ‘‘Secretary’’ means the Secretary 
of the Interior. 
(5) The term ‘‘patented mining claim’’ means 
an interest in land which has been obtained pursu-
ant to sections 2325 and 2326 of the Revised Stat-
utes (30 U.S.C. 29 and 30) for vein or lode claims 
and sections 2329, 2330, 2331, and 2333 of the Re-
vised Statutes (30 U.S.C. 35, 36, and 37) for placer