Such securities shall bear interest at rates determined by 
the Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable obliga-
tions of the United States of comparable maturities. The 
income on such investments shall be credited to, and form 
a part of, the fund.’’. 
(7) In section 401, insert a new subsection (f) 
as follows: 
‘‘(f) TRANSFERS TO COMBINED BENEFIT FUND.— 
‘‘(1) Notwithstanding any other provision of 
law, at the beginning of each fiscal year, the Sec-
retary shall transfer from the fund to the United 
Mine Workers of America Combined Benefit Fund 
(referred to as the ‘Combined Fund’ in this title of 
this Act), as established under section 9702 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9702), 
an amount equal to the amount of expenditures that 
the trustees of the Combined Fund estimate will be 
debited against the unassigned beneficiaries pre-
mium account under section 9704(e) of the Internal 
Revenue Code of 1986 (26 U.S.C. 9704(e)) for the 
fiscal year of the Combined Fund in which the 
transfer is made: Provided, That the amount trans-
ferred shall not exceed the amount available under 
paragraph (2) of this subsection.
‘‘(2) In making the transfers, the Secretary 
shall first use the interest that has been earned by 
and paid to the fund during the preceding year, fol-
lowed by any interest earned in prior years and not 
previously transferred. 
‘‘(3) If, for any fiscal year, the amount trans-
ferred is more or less than the actual expenditures 
for the unassigned beneficiaries premium account in 
that year, the Secretary shall appropriately adjust 
the amount transferred for the next fiscal year.’’. 
(8) Section 402(b) is amended by— 
(A) striking ‘‘Such fee’’ and inserting in 
its place ‘‘Reclamation fees’’; and 
(B) striking ‘‘2005’’ and all that follows 
and inserting in its place ‘‘2019’’. 
(9) Section 402(c) is amended to read as fol-
lows: 
‘‘(c) SUBMISSION OF QUARTERLY REPORTS.— 
‘‘(1) All operators of surface coal mining oper-
ations shall submit a report no later than 30 days 
after the end of each calendar quarter. The report 
shall include— 
‘‘(A) a statement of the amount of coal 
produced during the calendar quarter, the 
method of coal removal and the type of coal;
‘‘(B) an identification of the permittee and 
the operator of the surface coal mining oper-
ation, the owner of the coal, the preparation 
plant or tipple receiving the coal or the loading 
point for the coal, and the person purchasing 
the coal from the operator or permittee; 
‘‘(C) the number of the permit required 
under section 506 of this Act; and 
‘‘(D) the identification number issued by 
the Mine Safety and Health Administration for 
the operation. 
‘‘(2) Each quarterly report shall contain a noti-
fication of any changes in the information required 
by paragraph (1) of this subsection since the date of 
the preceding quarterly report. 
‘‘(3) The operator must certify, under penalty 
of perjury, that the information in each report is 
true, correct, and complete. Any person, corporate 
officer, agent or director who, on behalf of a coal 
mine operator, knowingly makes any false statement, 
representation or certification or knowingly fails to 
make any statement, representation or certification 
required in this section shall, upon conviction, be 
punished by a fine of not more than $10,000, or by 
imprisonment for not more than 1 year, or both.
‘‘(4) The information contained in the quarterly 
reports submitted under this subsection shall be 
maintained by the Secretary in a computerized data-
base.’’. 
(10) Section 402(d) is amended by— 
(A) striking the word ‘‘PENALTY’’ from the 
title and inserting in its place the word ‘‘AU-
DITS’’ ; 
(B) striking paragraph (1); 
(C) redesignating paragraph (2) as para-
graph (1); and 
(D) inserting paragraph (2) to read as fol-
lows: 
‘‘(2) The Secretary is authorized to audit com-
pliance with the excise tax payment requirements of 
section 4121 of the Internal Revenue Code of 1986 
(26 U.S.C. 4121) when conducting audits under this 
subsection.’’. 
(11) Section 402(f) is amended to read as fol-
lows: 
‘‘(f) COOPERATION FROM OTHER AGENCIES.—All 
Federal and State agencies shall fully cooperate with the 
Secretary of the Interior in the enforcement of this sec-
tion. Whenever the Secretary of the Interior believes that 
any person has not paid the full amount of the fee payable
under section 402(a) of this Act or the excise tax payable 
under section 4121 of the Internal Revenue Code of 1986 
(26 U.S.C. 4121), he or she shall notify the Federal agen-
cy responsible for enforcing the provisions of section 4121 
of the Internal Revenue Code of 1986 (26 U.S.C. 4121).’’. 
(12) Section 402(g) is amended by— 
(A) amending the subsection heading to 
read ‘‘ALLOCATION
OF FEE RECEIPTS
AND 
OTHER
MONIES
PRIOR
TO
OCTOBER
1, 
2005.—’’; 
(B) in paragraph (1), striking ‘‘Except as 
provided in subsection (h)’’ and inserting in its 
place ‘‘Except as otherwise provided in this 
Act’’; 
(C) amending paragraphs (1)(A)(ii) and 
(1)(B)(ii) to read as follows: 
‘‘(ii) Lands and waters which are eli-
gible pursuant to section 404 (in the case 
of a State not certified under section 411). 
In the case of a State certified under sec-
tion 411, eligible lands and waters shall be 
those which were mined or processed for 
minerals or which were affected by such 
mining or processing, and abandoned or 
left in an inadequate reclamation status
prior to August 3, 1977; and for which 
there is no continuing reclamation respon-
sibility under State or other Federal 
laws.’’; 
(D) striking ‘‘section 401(c)(2)’’ at the end 
of paragraph (2) and inserting in its place ‘‘for 
the purposes of section 406’’; 
(E) striking everything in paragraph (4) 
after ‘‘subparagraph (A)’’ in subparagraph (B) 
and inserting in its place ‘‘if the requirements 
of section 404(b) are met.’’; 
(F) striking paragraph (5) in its entirety 
and inserting in its place ‘‘This subsection ap-
plies only to fees and other monies payable to 
the fund as of the expiration of September 30, 
2005, and to monies appropriated from the 
fund as of that date. Sections 401(d) and 
403(b) of this Act govern allocations and dis-
bursements after that date.’’; 
(G) striking paragraphs (6) through (8) in 
their entirety; and 
(H) striking subsection (h) in its entirety. 
(13) Section 403 is amended by— 
(A) amending the title to read ‘‘FUND 
OBJECTIVES AND EXPENDITURES.’’;
(B) striking the phrase ‘‘except as pro-
vided for under section 411’’ in subsection (a) 
and inserting in its place ‘‘except as otherwise 
provided in this section, section 401(c), or sec-
tion 411’’; 
(C) striking the period at the end of sub-
section (a)(3) and inserting a semicolon in its 
place; 
(D) amending subsection (b) to read as 
follows: 
‘‘(b) ALLOCATION OF FUNDS AFTER SEPTEMBER 30, 
2005.— 
‘‘(1) ALLOCATIONS TO STATES AND TRIBES.— 
‘‘(A) At the beginning of each fiscal year 
beginning after September 30, 2005, or as soon 
thereafter as practicable, the Secretary shall al-
locate the monies appropriated from the fund 
for that year for grants to States and Indian 
tribes under section 405(h) of this Act. An allo-
cation shall be made to each State and tribe 
that is eligible to receive a payment under sec-
tion 401(d)(2)(C) of this Act and to each State 
and tribe that— 
‘‘(i) has an approved abandoned mine 
reclamation program under section 405 of
this Act that is not subject to the prohibi-
tion in paragraph (c) of that section; 
‘‘(ii) is not certified under section 411 
of this Act; and 
‘‘(iii) 
has 
within 
its 
jurisdiction 
unreclaimed lands or waters that are eligi-
ble pursuant to section 404 and that meet 
one of the priorities stated in paragraphs 
(1) and (2) of subsection (a) of this sec-
tion: Provided, That, when all States and 
Indian tribes have completed or provided 
for completion of reclamation of all lands 
and waters meeting the priorities in para-
graphs (1) and (2) of subsection (a) of this 
section, this criterion will no longer apply. 
‘‘(B) In making these allocations, the Sec-
retary shall use a formula based on historical 
coal production prior to August 3, 1977, in 
those States and tribes: Provided, That— 
‘‘(i) donations received under section 
401(b)(3) shall be allocated in accordance 
with any stipulations by the donor; 
‘‘(ii) no State or Indian tribe shall re-
ceive an allocation of less than $3,000,000 
under this paragraph;
‘‘(iii) Tennessee shall receive an allo-
cation of not less than $3,000,000; and 
‘‘(iv) no State or Indian tribe shall re-
ceive an allocation of more than 25 percent 
of the total monies appropriated for grants 
under section 405(h): Provided further, 
That this restriction shall expire when 
fewer than eight States are eligible to re-
ceive an allocation under paragraph (1) of 
this subsection. 
‘‘(C) The amount dedicated by section 
401(d)(2)(B) of this Act to each State or In-
dian tribe that is not certified under section 
411 of this Act shall be reduced by the amount 
allocated to that State or tribe under this para-
graph. 
‘‘(D) Amounts allocated to States and In-
dian tribes under this paragraph may be used 
to fund projects that protect, repair, replace, 
construct, or enhance facilities relating to water 
supply, including water distribution facilities 
and treatment plants, to replace water supplies 
adversely affected by coal mining practices. In 
making funding decisions on these projects, the 
State or tribe need not consider the priorities in
subsection (a) of this section. If the adverse ef-
fect on water supplies occurred both prior to 
and after August 3, 1977 (or other applicable 
date under section 404), section 404 shall not 
be construed to prohibit a State or Indian tribe 
from using funds under this paragraph if the 
State or Indian tribe determines that such ad-
verse effects occurred predominantly prior to 
August 3, 1977 (or other applicable date under 
section 404). 
‘‘(2) FEDERAL EXPENDITURES.—To the extent 
authorized by annual appropriations, the Secretary 
may expend monies from the fund for any of the fol-
lowing purposes— 
‘‘(A) providing assistance to small opera-
tors under section 507(c) of this Act, either di-
rectly or through grants to the States, subject 
to the limitation contained in section 401(c)(11) 
of this Act; 
‘‘(B) conducting emergency reclamation 
activities and projects under section 410 of this 
Act, either directly or through grants to the 
States and Indian tribes; 
‘‘(C) meeting the objectives of the fund set 
forth in paragraph (a) of this section for eligi-
ble lands and waters pursuant to section 404 of 
this Act in States and on Indian lands where 
the State or Indian tribe does not have an ap-
proved abandoned mine reclamation program 
pursuant to section 405 of this Act; 
‘‘(D) the administration of this title of this 
Act by the Secretary; 
‘‘(E) making supplemental grants to 
States and Indian tribes for the purposes of 
this title of this Act; 
‘‘(F) implementation of section 401(c)(6) 
of this Act; and 
‘‘(G) conducting other activities consistent 
with this title of this Act.’’; 
(E) in subsection (c), redesignating the 
first sentence as paragraph (1), the second and 
third sentences as paragraph (2), the fourth 
sentence as paragraph (3), and the last sen-
tence as paragraph (4); and 
(F) striking ‘‘section 411(a)’’ in paragraph 
(c)(1) and inserting in its place ‘‘section 411’’. 
(14) Section 404 is amended to read as follows: 
‘‘SEC. 404. ELIGIBLE LANDS AND WATERS. 
‘‘(a) IN GENERAL.—
‘‘(1) Lands and waters eligible for reclamation 
or drainage abatement expenditures under this title 
of this Act are those which were mined for coal, or 
which were affected by such mining, waste banks, 
coal processing, or other coal mining processes, and 
abandoned or left in an inadequate reclamation sta-
tus prior to August 3, 1977, and for which there is 
no continuing reclamation responsibility under State 
or other Federal laws. For other provisions relating 
to lands and waters eligible for such expenditures, 
see subsections (b) and (c) of this section and sec-
tions 402(g)(1), 403(b)(1), and 409 of this Act. 
‘‘(2) Surface coal mining operations on lands el-
igible for remining shall not affect the eligibility of 
such lands for reclamation and restoration under 
this title of this Act after the release of the bond or 
deposit for any such operation as provided under 
section 519 of this Act. In the event the bond or de-
posit for a surface coal mining operation on lands el-
igible for remining is forfeited, funds available under 
this title of this Act may be used if the amount of 
such bond or deposit is not sufficient to provide for 
adequate reclamation or abatement. If conditions 
warrant, the Secretary, State, or Indian tribe shall