casual use, to evaluate the type, extent, quantity, 
or quality of minerals present; 
(B) includes mineral activities associated 
with sampling, drilling, and analyzing locatable 
mineral values; and 
(C) does not include extraction of mineral 
material for commercial use or sale. 
(8) The term ‘‘Federal land’’ means any land, 
and any interest in land, that is owned by the United 
States and open to location of mining claims under 
the general mining laws and title II of this Act. 
(9) The term ‘‘Indian lands’’ means lands held 
in trust for the benefit of an Indian tribe or indi-
vidual or held by an Indian tribe or individual sub-
ject to a restriction by the United States against 
alienation. 
(10) The term ‘‘Indian tribe’’ means any Indian 
tribe, band, nation, pueblo, or other organized group 
or community, including any Alaska Native village 
or regional corporation as defined in or established 
pursuant to the Alaska Native Claims Settlement Act 
(43 U.S.C. 1601 and following), that is recognized as 
eligible for the special programs and services provided 
by the United States to Indians because of their sta-
tus as Indians. 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
(11) The term ‘‘locatable mineral’’— 
(A) subject to subparagraph (B), means any 
mineral, the legal and beneficial title to which 
remains in the United States and that is not 
subject to disposition under any of— 
(i) the Mineral Leasing Act (30 U.S.C. 
181 and following); 
(ii) the Geothermal Steam Act of 1970 
(30 U.S.C. 1001 and following); 
(iii) the Act of July 31, 1947, com-
monly known as the Materials Act of 1947 
(30 U.S.C. 601 and following); or 
(iv) the Mineral Leasing for Acquired 
Lands Act (30 U.S.C. 351 and following); 
and 
(B) does not include any mineral that is 
subject to a restriction against alienation im-
posed by the United States and is— 
(i) held in trust by the United States 
for any Indian or Indian tribe, as defined 
in section 2 of the Indian Mineral Develop-
ment Act of 1982 (25 U.S.C. 2101); or 
(ii) owned by any Indian or Indian 
tribe, as defined in that section. 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
(12) The term ‘‘mineral activities’’ means any 
activity on a mining claim, millsite claim, or tunnel 
site claim for, related to, or incidental to, mineral ex-
ploration, mining, beneficiation, processing, or rec-
lamation activities for any locatable mineral. 
(13) The term ‘‘National Conservation System 
unit’’ means any unit of the National Park System, 
National Wildlife Refuge System, National Wild and 
Scenic Rivers System, or National Trails System, or 
a National Conservation Area, a National Recreation 
Area, a National Monument, or any unit of the Na-
tional Wilderness Preservation System. 
(14) The term ‘‘operator’’ means any person pro-
posing or authorized by a permit issued under this 
Act to conduct mineral activities and any agent of 
such person. 
(15) The term ‘‘person’’ means an individual, 
Indian tribe, partnership, association, society, joint 
venture, joint stock company, firm, company, cor-
poration, cooperative, or other organization and any 
instrumentality of State or local government includ-
ing any publicly owned utility or publicly owned cor-
poration of State or local government. 
(16) The term ‘‘processing’’ means processes 
downstream of beneficiation employed to prepare 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
locatable mineral ore into the final marketable prod-
uct, including but not limited to smelting and electro-
lytic refining. 
(17) The term ‘‘Secretary’’ means the Secretary 
of the Interior, unless otherwise specified. 
(18) The term ‘‘temporary cessation’’ means a 
halt in mine-related production activities for a con-
tinuous period of no longer than 5 years. 
(19) The term ‘‘undue degradation’’ means irrep-
arable harm to significant scientific, cultural, or en-
vironmental resources on public lands that cannot be 
effectively mitigated. 
(b) TITLE II.— 
(1) VALID EXISTING RIGHTS.—As used in title 
II, the term ‘‘valid existing rights’’ means a mining 
claim or millsite claim located on lands described in 
section 201(b), that— 
(A) was properly located and maintained 
under this Act prior to and on the applicable 
date; or 
(B)(i) was properly located and maintained 
under the general mining laws prior to the ap-
plicable date; 
(ii) was supported by a discovery of a valu-
able mineral deposit within the meaning of the 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
general mining laws on the applicable date, or 
satisfied the limitations under existing law for 
millsite claims; and 
(iii) continues to be valid under this Act. 
(2) APPLICABLE DATE.—As used in paragraph 
(1), the term ‘‘applicable date’’ means one of the fol-
lowing: 
(A) For lands described in paragraph (1) of 
section 201(b), the date of the recommendation 
referred to in paragraph (1) of that section if 
such recommendation is made on or after the 
date of the enactment of this Act. 
(B) For lands described in paragraph (1) of 
section 201(b), if the recommendation referred to 
in paragraph (1) of that section is made before 
the date of the enactment of this Act, the earlier 
of— 
(i) the date of the enactment of this 
Act; or 
(ii) the date of any withdrawal of such 
lands from mineral activities. 
(C) For lands described in paragraph 
(3)(B) of section 201(b), the date of the enact-
ment of this Act. 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
(D) For lands described in paragraph 
(3)(A) or (3)(C) of section 201(b), the date of the 
enactment of the amendment to the Wild and 
Scenic Rivers Act (16 U.S.C. 1271 and fol-
lowing) listing the river segment for study. 
(E) For lands described in paragraph 
(3)(B) of section 201(b), the date of the deter-
mination of eligibility of such lands for inclusion 
in the Wild and Scenic River System. 
(F) For lands described in paragraph (4) of 
section 201(b), the date of the withdrawal under 
other law. 
(c) REFERENCES TO OTHER LAWS.—(1) Any reference 
in this Act to the term general mining laws is a reference 
to those Acts that generally comprise chapters 2, 12A, and 
16, and sections 161 and 162, of title 30, United States 
Code. 
(2) Any reference in this Act to the Act of July 23, 
1955, is a reference to the Act entitled ‘‘An Act to amend 
the Act of July 31, 1947 (61 Stat. 681) and the mining 
laws to provide for multiple use of the surface of the same 
tracts of the public lands, and for other purposes’’ (30 
U.S.C. 601 and following). 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
SEC. 3. APPLICATION RULES. 
(a) IN GENERAL.—This Act applies to any mining 
claim, millsite claim, or tunnel site claim located under the 
general mining laws, before, on, or after the date of enact-
ment of this Act, except as provided in subsection (b). 
(b) PREEXISTING CLAIMS.—(1) Any unpatented min-
ing claim or millsite claim located under the general min-
ing laws before the date of enactment of this Act for which 
a plan of operation has not been approved or a notice filed 
prior to the date of enactment shall, upon the effective date 
of this Act, be subject to the requirements of this Act, except 
as provided in paragraphs (2) and (3). 
(2)(A) If a plan of operations is approved for mineral 
activities on any claim or site referred to in paragraph (1) 
prior to the date of enactment of this Act but such oper-
ations have not commenced prior to the date of enactment 
of this Act— 
(i) during the 10-year period beginning on the 
date of enactment of this Act, mineral activities at 
such claim or site shall be subject to such plan of op-
erations; 
(ii) during such 10-year period, modifications of 
any such plan may be made in accordance with the 
provisions of law applicable prior to the enactment of 
this Act if such modifications are deemed minor by 
the Secretary concerned; and 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
(iii) the operator shall bring such mineral activi-
ties into compliance with this Act by the end of such 
10-year period. 
(B) Where an application for modification of a plan 
of operations referred to in subparagraph (A)(ii) has been 
timely submitted and an approved plan expires prior to 
Secretarial action on the application, mineral activities 
and reclamation may continue in accordance with the 
terms of the expired plan until the Secretary makes an ad-
ministrative decision on the application. 
(c) FEDERAL LANDS SUBJECT
TO EXISTING PER-
MIT.—(1) Any Federal land shall not be subject to the re-
quirements of section 102 if the land is— 
(A) subject to an operations permit; and 
(B) producing valuable locatable minerals in 
commercial quantities prior to the date of enactment 
of this Act. 
(2) Any Federal land added through a plan modifica-
tion to an operations permit on Federal land that is sub-
mitted after the date of enactment of this Act shall be subject 
to the terms of section 102. 
(d) APPLICATION
OF ACT
TO BENEFICIATION
AND 
PROCESSING OF NON-FEDERAL MINERALS ON FEDERAL 
LANDS.—The provisions of this Act (including the environ-
mental protection requirements of title III) shall apply in 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
the same manner and to the same extent to mining claims, 
millsite 
claims, 
and 
tunnel 
site 
claims 
used 
for 
beneficiation or processing activities for any mineral with-
out regard to whether or not the legal and beneficial title 
to the mineral is held by the United States. This subsection 
applies only to minerals that are locatable minerals or min-
erals that would be locatable minerals if the legal and bene-
ficial title to such minerals were held by the United States. 
TITLE 
I—MINERAL 
EXPLO-
RATION AND DEVELOPMENT 
SEC. 101. LIMITATION ON PATENTS. 
(a) MINING CLAIMS.— 
(1) DETERMINATIONS REQUIRED.—After the date 
of enactment 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 deter-
mines that, for the claim concerned— 
(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 Revised Statutes (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 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
placer claims were fully complied with by that 
date. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations referred to in subparagraphs (A) 
and (B) of paragraph (1) for any mining claim, the 
holder of the claim 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 prior 
to the enactment of this Act, unless and until such de-
terminations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
(b) MILLSITE CLAIMS.— 
(1) DETERMINATIONS REQUIRED.—After the date 
of enactment of this Act, no patent shall be issued by 
the United States for any millsite claim located under 
the general mining laws unless the Secretary deter-
mines that for the millsite concerned— 
(A) a patent application for such land was 
filed with the Secretary on or before September 
30, 1994; and 
(B) all requirements applicable to such pat-
ent application were fully complied with by that 
date. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations referred to in subparagraphs (A) 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
and (B) of paragraph (1) for any millsite claim, the 
holder of the claim 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 prior 
to the enactment of this Act, unless and until such de-
terminations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
SEC. 102. ROYALTY. 
(a) RESERVATION OF ROYALTY.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) and subject to paragraph (3), production of 
all locatable minerals from any mining claim located 
under the general mining laws and maintained in 
compliance with this Act, or mineral concentrates or 
products derived from locatable minerals from any 
such mining claim, as the case may be, shall be sub-
ject to a royalty of 8 percent of the gross income from 
mining. The claim holder or any operator to whom 
the claim holder has assigned the obligation to make 
royalty payments under the claim and any person 
who controls such claim holder or operator shall be 
liable for payment of such royalties. 
(2) ROYALTY FOR FEDERAL LANDS SUBJECT TO 
EXISTING PERMIT.—The royalty under paragraph (1) 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
shall be 4 percent in the case of any Federal land 
that— 
(A) is subject to an operations permit on 
the date of the enactment of this Act; and 
(B) produces valuable locatable minerals in 
commercial quantities on the date of enactment 
of this Act. 
(3) FEDERAL LAND ADDED TO EXISTING OPER-
ATIONS PERMIT.—Any Federal land added through a 
plan modification to an operations permit on Federal 
land that is submitted after the date of enactment of 
this Act shall be subject to the royalty that applies to 
other Federal land that is subject to the operations 
permit before that submission under paragraph (1) or 
(2), as applicable. 
(4) OTHER APPLICATION PROVISION NOT EFFEC-
TIVE.—Section 3(c) of this Act shall have no force or 
effect. 
(5) DEPOSIT.—Amounts received by the United 
States as royalties under this subsection shall be de-
posited into the account established under section 401. 
(b) DUTIES OF CLAIM HOLDERS, OPERATORS, AND 
TRANSPORTERS.—(1) A person— 
(A) who is required to make any royalty pay-
ment under this section shall make such payments to 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
the United States at such times and in such manner 
as the Secretary may by rule prescribe; and 
(B) shall notify the Secretary, in the time and 
manner as may be specified by the Secretary, of any 
assignment that such person may have made of the 
obligation to make any royalty or other payment 
under a mining claim. 
(2) Any person paying royalties under this section 
shall file a written instrument, together with the first roy-
alty payment, affirming that such person is responsible for 
making proper payments for all amounts due for all time 
periods for which such person has a payment responsibility. 
Such responsibility for the periods referred to in the pre-
ceding sentence shall include any and all additional 
amounts billed by the Secretary and determined to be due 
by final agency or judicial action. Any person liable for 
royalty payments under this section who assigns any pay-
ment obligation shall remain jointly and severally liable 
for all royalty payments due for the claim for the period. 
(3) A person conducting mineral activities shall— 
(A) develop and comply with the site security 
provisions in the operations permit designed to pro-
tect from theft the locatable minerals, concentrates or 
products derived therefrom which are produced or 
stored on a mining claim, and such provisions shall 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
conform with such minimum standards as the Sec-
retary may prescribe by rule, taking into account the 
variety of circumstances on mining claims; and 
(B) not later than the 5th business day after pro-
duction begins anywhere on a mining claim, or pro-
duction 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 resumed. 
(4) The Secretary may by rule require any person en-
gaged in transporting a locatable mineral, concentrate, or 
product derived therefrom to carry on his or her person, 
in his or her vehicle, or in his or her immediate control, 
documentation showing, at a minimum, the amount, ori-
gin, and intended destination of the locatable mineral, con-
centrate, or product derived therefrom in such cir-
cumstances as the Secretary determines is appropriate. 
(c) RECORDKEEPING
AND
REPORTING
REQUIRE-
MENTS.—(1) A claim holder, operator, or other person di-
rectly involved in developing, producing, processing, trans-
porting, purchasing, or selling locatable minerals, con-
centrates, 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 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
the purposes of implementing this section or determining 
compliance with rules or orders under this section. Such 
records shall include, but not be limited to, periodic reports, 
records, documents, and other data. Such reports may also 
include, but not be limited to, pertinent technical and fi-
nancial data relating to the quantity, quality, composition 
volume, weight, and assay of all minerals extracted from 
the mining claim. Upon the request of any officer or em-
ployee duly designated by the Secretary conducting an 
audit or investigation pursuant to this section, the appro-
priate records, reports, or information that may be required 
by this section shall be made available for inspection and 
duplication by such officer or employee. Failure by a claim 
holder, operator, or other person referred to in the first sen-
tence to cooperate with such an audit, provide data required 
by the Secretary, or grant access to information may, at 
the discretion of the Secretary, result in involuntary for-
feiture of the claim. 
(2) Records required by the Secretary under this sec-
tion shall be maintained for 7 years after release of finan-
cial assurance under section 306 unless the Secretary noti-
fies the operator that the Secretary has initiated an audit 
or investigation involving such records and that such 
records must be maintained for a longer period. In any case 
when an audit or investigation is underway, records shall 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
be maintained until the Secretary releases the operator of 
the obligation to maintain such records. 
(d) AUDITS.—The Secretary is authorized to conduct 
such audits of all claim holders, operators, transporters, 
purchasers, processors, or other persons directly or indi-
rectly involved in the production or sales of minerals cov-
ered by this Act, as the Secretary deems necessary for the 
purposes of ensuring compliance with the requirements of 
this section. For purposes 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. 
(e) COOPERATIVE AGREEMENTS.—(1) The Secretary is 
authorized to enter into cooperative agreements with the 
Secretary of Agriculture to share information concerning 
the royalty management of locatable minerals, concentrates, 
or products derived therefrom, to carry out inspection, au-
diting, investigation, or enforcement (not including the col-
lection of royalties, civil or criminal penalties, or other pay-
ments) activities under this section in cooperation with the 
Secretary, and to carry out any other activity described in 
this section. 
(2) Except as provided in paragraph (3)(A) of this 
subsection (relating to trade secrets), and pursuant to a co-
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
operative agreement, the Secretary of Agriculture shall, 
upon request, have access to all royalty accounting informa-
tion in the possession of the Secretary respecting the pro-
duction, removal, or sale of locatable minerals, concentrates, 
or products derived therefrom from claims on lands open 
to location under this Act. 
(3) Trade secrets, proprietary, and other confidential 
information protected from disclosure under section 552 of 
title 5, United States Code, popularly known as the Free-
dom of Information Act, shall be made available by the Sec-
retary to other Federal agencies as necessary to assure com-
pliance with this Act and other Federal laws. The Sec-
retary, the Secretary of Agriculture, the Administrator of 
the Environmental Protection Agency, and other Federal of-
ficials shall ensure that such information is provided pro-
tection in accordance with the requirements of that section. 
(f) INTEREST AND SUBSTANTIAL UNDERREPORTING 
ASSESSMENTS.—(1) In the case of mining claims where 
royalty payments are not received by the Secretary on the 
date that such payments are due, the Secretary shall charge 
interest on such underpayments at the same interest rate 
as the rate applicable under section 6621(a)(2) of the Inter-
nal Revenue Code of 1986. In the case of an underpayment, 
interest shall be computed and charged only on the amount 
of the deficiency and not on the total amount. 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS
(2) If there is any underreporting of royalty owed on 
production from a claim for any production month by any 
person liable for royalty payments under this section, the 
Secretary shall assess a penalty of not greater than 25 per-
cent of the amount of that underreporting. 
(3) For the purposes of this subsection, the term 
‘‘underreporting’’ means the difference between the royalty 
on the value of the production that should have been re-
ported and the royalty on the value of the production which 
was reported, if the value that should have been reported 
is greater than the value that was reported. 
(4) The Secretary may waive or reduce the assessment 
provided in paragraph (2) of this subsection if the person 
liable for royalty payments under this section corrects the 
underreporting before the date such person receives notice 
from the Secretary that an underreporting may have oc-
curred, or before 90 days after the date of the enactment 
of this section, whichever is later. 
(5) The Secretary shall waive any portion of an assess-
ment under paragraph (2) of this subsection attributable 
to that portion of the underreporting for which the person 
responsible for paying the royalty demonstrates that— 
(A) such person had written authorization from 
the Secretary to report royalty on the value of the 
production on basis on which it was reported, 
VerDate Aug 31 2005 
22:58 Oct 29, 2007
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rwilkins on PROD1PC63 with BILLS