I 
109TH CONGRESS 
1ST SESSION H. R. 3968 
To modify the requirements applicable to locatable minerals on public domain 
lands, consistent with the principles of self-initiation of mining claims, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2005 
Mr. RAHALL (for himself, Mr. INSLEE, Mr. SHAYS, Mr. GEORGE MILLER of 
California, Mr. HINCHEY, Mr. KUCINICH, Mr. BLUMENAUER, Mr. 
GRIJALVA, and Mr. ANDREWS) introduced the following bill; which was 
referred to the Committee on Resources 
A BILL 
To modify the requirements applicable to locatable minerals 
on public domain lands, consistent with the principles 
of self-initiation of mining claims, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Mineral Development and Land Protection Eq-
uity Act of 2005’’.
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions and references. 
TITLE I—MINERAL EXPLORATION AND DEVELOPMENT 
Sec. 101. Rights under this Act. 
Sec. 102. Claim maintenance requirements. 
Sec. 103. Location fee. 
Sec. 104. Co-ownership. 
Sec. 105. Other requirements. 
Sec. 106. Fee adjustments. 
Sec. 107. Use of fees. 
Sec. 108. Prohibition. 
Sec. 109. Failure to comply. 
Sec. 110. Limitation on patents. 
Sec. 111. Royalty. 
TITLE II—PROTECTION OF SPECIAL PLACES 
Sec. 201. Lands open to location. 
Sec. 202. Unsuitability review. 
TITLE III—ENVIRONMENTAL CONSIDERATIONS OF MINERAL 
EXPLORATION AND DEVELOPMENT 
Sec. 301. Environmental protection standards. 
Sec. 302. Permits. 
Sec. 303. Operations permit. 
Sec. 304. Persons ineligible for permits. 
Sec. 305. Financial assurance. 
Sec. 306. Operation and reclamation. 
Sec. 307. State law and regulation. 
Sec. 308. Certain mineral activities covered by other law. 
TITLE IV—ABANDONED LOCATABLE MINERALS MINE 
RECLAMATION FUND 
Sec. 401. Abandoned locatable minerals mine reclamation. 
Sec. 402. Use and objectives of the fund. 
Sec. 403. Eligible lands and waters. 
Sec. 404. Fund expenditures. 
Sec. 405. Authorization of appropriations. 
TITLE V—ADMINISTRATIVE AND MISCELLANEOUS PROVISIONS 
Subtitle A—Administrative Provisions 
Sec. 501. Policy functions. 
Sec. 502. User fees. 
Sec. 503. Inspection and monitoring. 
Sec. 504. Citizens suits. 
Sec. 505. Administrative and judicial review. 
Sec. 506. Enforcement.
Sec. 507. Regulations; effective dates. 
Subtitle B—Miscellaneous Provisions 
Sec. 511. Transitional rules; surface management and environmental protection 
requirements. 
Sec. 512. Oil shale claims subject to special rules. 
Sec. 513. Purchasing power adjustment. 
Sec. 514. Savings clause. 
Sec. 515. Availability of public records. 
Sec. 516. Miscellaneous powers. 
Sec. 517. Multiple mineral development and surface resources. 
Sec. 518. Mineral materials. 
Sec. 519. Application of Act to beneficiation and processing of non-Federal 
minerals on Federal lands. 
SEC. 2. DEFINITIONS AND REFERENCES. 
(a) IN GENERAL.—As used in this Act: 
(1) The term ‘‘affiliate’’ means with respect to 
any person, any of the following: 
(A) Any person who controls, is controlled 
by, or is under common control with such per-
son. 
(B) Any partner of such person. 
(C) Any person owning at least 10 percent 
of the voting shares of such person. 
(2) The term ‘‘applicant’’ means any person ap-
plying for a permit under this Act or a modification 
to or a renewal of a permit under this Act. 
(3) The term ‘‘beneficiation’’ means the crush-
ing and grinding of locatable mineral ore and such 
processes as are employed to free the mineral from 
other constituents, including but not necessarily lim-
ited to, physical and chemical separation techniques.
(4) The term ‘‘claim holder’’ means a person 
holding a mining claim located or converted under 
this Act. Such term may include an agent of a claim 
holder. 
(5) The term ‘‘control’’ means having the abil-
ity, directly or indirectly, to determine (without re-
gard to whether exercised through one or more cor-
porate structures) the manner in which an entity 
conducts mineral activities, through any means, in-
cluding without limitation, ownership interest, au-
thority to commit the entity’s real or financial as-
sets, position as a director, officer, or partner of the 
entity, or contractual arrangement. 
(6) The term ‘‘environmental protection re-
quirements’’ means the requirements and standards 
of title II, and such other standards as are estab-
lished by the Secretary governing mineral activities 
pursuant to this Act. 
(7) The term ‘‘exploration’’ means those tech-
niques employed to locate the presence of a locatable 
mineral deposit and to establish its nature, position, 
size, shape, grade, and value not associated with 
mining, beneficiation, processing, or marketing of 
minerals.
(8) 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. 
(9) 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 recog-
nized as eligible for the special programs and serv-
ices provided by the United States to Indians be-
cause of their status as Indians. 
(10) The term ‘‘land use plans’’ means those 
plans required under section 202 of the Federal 
Land Policy and Management Act of 1976 (43 
U.S.C. 1712) or the land management plans for Na-
tional Forest System units required under section 6 
of the Forest and Rangeland Renewable Resources 
Planning Act of 1974 (16 U.S.C. 1604), whichever 
is applicable. 
(11) The term ‘‘legal subdivisions’’ means an 
aliquot quarter quarter section of land as established 
by the official records of the public land survey sys-
tem, or a single lot as established by the official 
records of the public land survey system if the perti-
nent section is irregular and contains fractional lots, 
as the case may be. 
(12)(A) The term ‘‘locatable mineral’’ 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 the following: 
(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, commonly 
known as the Materials Act of 1947 (30 U.S.C. 
601 and following). 
(iv) The Mineral Leasing for Acquired 
Lands Act (30 U.S.C. 351 and following). 
(B) The term ‘‘locatable mineral’’ does not in-
clude any mineral held in trust by the United States 
for any Indian or Indian tribe, as defined in section 
2 of the Indian Mineral Development Act of 1982 
(25 U.S.C. 2101), or any mineral owned by any In-
dian or Indian tribe, as defined in that section, that 
is subject to a restriction against alienation imposed 
by the United States.
(13) The term ‘‘millsite claim’’ means a claim 
to public land that— 
(A) does not exceed 5 acres for each 20 
acres of mining claim for a vein or lode; 
(B) is noncontiguous to such vein or lode; 
and 
(C) is needed by a mining claim holder for 
mining, milling, processing, beneficiation, or 
other similar operations in connection with the 
mining claim. 
(14) The term ‘‘mineral activities’’ means any 
activity on Federal lands for, related to, or inci-
dental to, mineral exploration, mining, beneficiation, 
processing, or reclamation activities for any locatable 
mineral. 
(15) The term ‘‘mining’’ means the processes 
employed for the extraction of a locatable mineral 
from the earth. 
(16) 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.
(17) The term ‘‘operator’’ means any person, 
conducting mineral activities subject to this Act or 
any agent of such a person. 
(18) 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. 
(19) The term ‘‘processing’’ means processes 
downstream of beneficiation employed to prepare 
locatable mineral ore into the final marketable prod-
uct, including but not limited to smelting and elec-
trolytic refining. 
(20) The term ‘‘Secretary’’ means the Secretary 
of the Interior, unless otherwise specified. 
(21) The term ‘‘temporary cessation’’ means a 
halt in mine-related production activities for a period 
no longer than 5 year. 
(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 
general mining laws on the applicable date, or 
satisfies 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 recommenda-
tion 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 re-
ferred 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. 
(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 inclu-
sion 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 ref-
erence 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). 
TITLE 
I—MINERAL 
EXPLO-
RATION AND DEVELOPMENT 
SEC. 101. RIGHTS UNDER THIS ACT. 
The holder of a mining claim located under the gen-
eral mining laws and maintained in compliance with this 
Act shall have the exclusive right of possession and use 
of the claimed land for mineral activities, including the 
right of ingress and egress to such claimed lands for such 
activities, subject to the rights of the United States under 
this Act and other applicable Federal law. Such rights of 
the claim holder shall terminate upon completion of min-
eral activities of lands to the satisfaction of the Secretary. 
In cases where an area is determined unsuitable under 
section 202, holders of claims located under the general 
mining laws shall be entitled to receive a refund of claim 
maintenance fees. 
SEC. 102. CLAIM MAINTENANCE REQUIREMENTS. 
(a) CLAIM MAINTENANCE FEE.—Except as provided 
in subsections (c), (d), and (e), the holder of each
unpatented mining claim, mill, or tunnel site located pur-
suant to the general mining laws, whether located before 
or after the enactment of this Act, shall pay to the Sec-
retary, on or before August 31 of each year, a claim main-
tenance fee of $100 per claim. Such claim maintenance 
fee shall be in lieu of the assessment work requirement 
contained in the general mining laws and the related filing 
requirements contained in section 314(a) of the Federal 
Land Policy and Management Act of 1976 (43 U.S.C. 
1744(a)). 
(b) TIME OF PAYMENT.—The claim maintenance fee 
payable pursuant to subsection (a) for any assessment 
year (as defined under the general mining laws) shall be 
paid before the commencement of the assessment year. 
(c) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEES UNDER ENERGY POLICY ACT OF 1992.— 
This section shall not apply to any oil shale claims for 
which a fee is required to be paid under section 2511(e)(2) 
of the Energy Policy Act of 1992 (106 Stat. 3111; 30 
U.S.C. 242). 
(d) WAIVER FOR PATENT APPLICANTS.—The Sec-
retary may waive the claim maintenance fee required 
under this section for a claimant who certifies in writing 
to the Secretary that on the date the payment was due, 
the claimant and all related parties—
(1) had filed a patent application with the Sec-
retary on or before September 30, 1994; and 
(2) had fully complied with all requirements es-
tablished under sections 2325 and 2326 of the Re-
vised Statutes (30 U.S.C. 29 and 30) for vein or 
lode claims and sections 2329, 2330, 2331, and 
2333 of the Revised Statutes (30 U.S.C. 35, 36, and 
37) for placer claims, and section 2337 of the Re-
vised Statutes (30 U.S.C. 42) for millsite claims, by 
that date. 
(e) EXCEPTIONS FOR CLAIMANTS HOLDING 10 OR 
FEWER MINING CLAIMS.— 
(1) IN GENERAL.—A claimant may elect to per-
form the assessment work required under the gen-
eral mining laws in lieu of paying the maintenance 
fee required under this section if the claimant cer-
tifies in writing to the Secretary that on the date the 
payment was due, the claimant and all related par-
ties— 
(A) are producing hard rock minerals 
under a valid notice or plan of operation which 
production results in not less than $1,500 and 
not more than $800,000 in gross revenues per 
year from a total of 10 or fewer claims;
(B) are performing exploration work to 
disclose, expose, or otherwise make known pos-
sible valuable mineralization on a total of 10 or 
fewer claims under a valid notice or plan of op-
eration; and 
(C) have less than 10 acres of unreclaimed 
surface disturbance from such mining activity 
or such exploration work. 
(2) CLAIMANTS ELECTING TO DO ASSESSMENT 
WORK.—A claimant holding 10 or fewer mining 
claims, who elects to do the assessment work re-
quired by the general mining laws in lieu of paying 
the claim maintenance fee required under this sec-
tion shall be required to meet the filing requirements 
of section 314(a) and (c) of the Federal Land Policy 
and Management Act (43 U.S.C. 1744(a) and (c)) 
on such 10 or fewer claims and shall certify the per-
formance of such assessment work to the Secretary 
by August 31 of each year. 
(f) CO-OWNERSHIP.—Upon the failure of any one or 
more of several co-claimants to contribute such co-claim-
ant or claimants’ portion of the fee under this section, any 
co-claimant who has paid such fee may, after the payment 
due date, give the delinquent co-claimant or claimants no-
tice of such failure in writing or by publication in the
newspaper nearest the claim for at least once a week for 
at least 90 days. If at the expiration of 90 days after such 
notice in writing or by publication, any delinquent co- 
claimant fails or refuses to contribute the co-claimant’s 
portion, the co-claimant’s interest in the claim shall be-
come the property of the co-claimants who have paid the 
required fee. The co-claimants who take over interest in 
a claim in such a manner shall assume the duty to pay 
the additional fees associated with such claim. 
(g) FUND.—All moneys received by the United States 
under this section shall be deposited in the Abandoned 
Locatable Minerals Mine Reclamation Fund established 
under title IV. 
(h) CREDIT AGAINST ROYALTY.—The amount of the 
annual claim maintenance fee required to be paid under 
this section for any claim for any period shall be credited 
against the amount of royalty required to be paid under 
section 111 for the same period with respect to that claim. 
(i) DEFINITIONS.—For purposes of this section: 
(1) With respect to any claimant, the term ‘‘re-
lated party’’ means— 
(A) the spouse and dependent children (as 
defined in section 152 of the Internal Revenue 
Code of 1986), of the claimant; and
(B) any affiliate of the claimant, including 
a person who controls, is controlled by, or is 
under common control with the claimant. 
(2) The term ‘‘control’’ includes actual control, 
legal control, and the power to exercise control, 
through or by common directors, officers, stock-
holders, a voting trust, or a holding company or in-
vestment company, or any other means. 
SEC. 103. LOCATION FEE. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, for every unpatented mining claim, mill, or 
tunnel site located after the date of enactment of this Act, 
pursuant to the general mining laws, the locator shall, at 
the time the location notice is recorded with the Bureau 
of Land Management, pay to the Secretary a location fee, 
in addition to the claim maintenance fee required by sec-
tion 102, of $25 per claim. 
(b) TIME OF PAYMENT.—The location fee imposed 
under subsection (a) shall be payable not later than 90 
days after the date of location. 
SEC. 104. CO-OWNERSHIP. 
The co-ownership provisions of the general mining 
laws shall remain in effect, except that in applying such 
provisions, the annual claim maintenance fee required
under this title shall, where applicable, replace applicable 
assessment requirements and expenditures. 
SEC. 105. OTHER REQUIREMENTS. 
Nothing in this title shall change or modify the re-
quirements of section 314(b) of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1744(b)), re-
lated to filings required by section 314(b), and such re-
quirements shall remain in effect with respect to claims 
and mill or tunnel sites for which fees are required to be 
paid under this section. 
SEC. 106. FEE ADJUSTMENTS. 
(a) INFLATION ADJUSTMENTS.—The Secretary of 
the Interior shall adjust the fees required by this section 
to reflect changes in the Consumer Price Index published 
by the Bureau of Labor Statistics of the Department of 
Labor, every 5 years after the date of the enactment of 
this Act or more frequently if the Secretary determines 
an adjustment to be reasonable. 
(b) NOTICE.—The Secretary shall provide claimants 
notice of any adjustment made under this section not later 
than July 1 of any year in which the adjustment is made. 
(c) APPLICATION OF ADJUSTMENT.—A fee adjust-
ment under this section shall begin to apply during the 
first assessment year (as defined under the general mining
laws) that begins at noon on the first day of September 
after the adjustment is made. 
SEC. 107. USE OF FEES. 
All moneys received by the United States under this 
title shall be deposited in the Abandoned Locatable Min-
erals Mine Reclamation Fund established under title IV. 
SEC. 108. PROHIBITION. 
If the Secretary prohibits the use of a mining claim 
for mineral activities pursuant to section 202 of this Act 
(relating to unsuitability), the provisions of sections 101 
through 107 shall no longer apply with respect to that 
claim. 
SEC. 109. FAILURE TO COMPLY. 
(a) FORFEITURE.—The failure of the claim holder to 
file the notice of location, to pay the location fee, or to 
comply with the claim maintenance provisions of section 
102 for a mining claim as required by this title shall be 
deemed conclusively to constitute forfeiture of the mining 
claim by operation of law. Forfeiture shall not relieve any 
person of any obligation created under this Act, including 
reclamation. 
(b) PROHIBITION.—A claim holder who has forfeited 
a claim, except as provided in subsection (c) of this sec-
tion, may not locate a new claim for a period of 5 years 
from the date such claim is deemed forfeited.
(c) RELINQUISHMENT.—A claim holder deciding not 
to pursue mineral activities on a claim may relinquish such 
claim by notifying the Secretary. A claim holder relin-
quishing a claim is responsible for reclamation as required 
by section 306 of this Act and all other applicable require-
ments. A claim holder who relinquishes a claim shall not 
be subject to the prohibition of subsection (b) of this sec-
tion unless the Secretary determines that the claim is 
being relinquished and relocated for the purpose of avoid-
ing compliance with any provision of this Act, including 
payment of the claim maintenance fee. 
SEC. 110. 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 lo-
cated under the general mining laws unless the Sec-
retary determines 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 Revised Statutes (30 U.S.C. 35, 36, and 
37) for placer claims were fully complied with 
by that date, including the parameters set forth 
in section 2(a)(12) of this Act. 
(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 
determinations 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 lo-
cated under the general mining laws unless the Sec-
retary determines 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 
patent application 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 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 
determinations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
SEC. 111. ROYALTY. 
(a) RESERVATION OF ROYALTY.—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 mining claim located 
under the general mining laws and maintained in compli-
ance with this Act, as the case may be, shall be subject 
to a royalty of 8 percent of the net smelter return from 
such production. The claim holder and 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 jointly and 
severally liable for payment of such royalties. 
(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 the United States at such times and in such man-
ner 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 liable to the 
Secretary for making proper payments for all amounts due 
for all time periods for which such person has a payment 
responsibility. Such liability for the period referred to in 
the preceding 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 operations permit designed to protect 
from theft the locatable minerals, concentrates or
products derived therefrom which are produced or 
stored on a mining claim, and such provisions shall 
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 
production begins anywhere on a mining claim, or 
production resumes after more than 90 days after 
production 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 estab-
lish and maintain any records, make any reports, and pro-
vide any information that the Secretary may reasonably 
require for 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 financial data relating to the quantity, qual-
ity, composition volume, weight, and assay of all minerals 
extracted from the mining claim. Upon the request of any 
officer or employee duly designated by the Secretary or 
any State conducting an audit or investigation pursuant 
to this section, the appropriate records, reports, or infor-
mation that may be required by this section shall be made 
available for inspection and duplication by such officer or 
employee or State. Failure by a claim holder, operator, 
or other person referred to in the first sentence to cooper-
ate with such an audit, provide data required by the Sec-
retary, or grant access to information may, at the discre-
tion of the Secretary, result in involuntary forfeiture of 
the claim. 
(2) Records required by the Secretary under this sec-
tion shall be maintained for 10 years after release of fi-
nancial assurance under section 305 unless the Secretary 
notifies 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 be maintained until the Secretary releases the oper-
ator 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 
documents 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, con-
centrates, or products derived therefrom, to carry out in-
spection, auditing, investigation, or enforcement (not in-
cluding the collection of royalties, civil or criminal pen-
alties, or other payments) 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 
cooperative agreement, the Secretary of Agriculture shall, 
upon request, have access to all royalty accounting infor-
mation in the possession of the Secretary respecting the 
production, removal, or sale of locatable minerals, con-
centrates, 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 
Freedom of Information Act, shall be made available by 
the Secretary to other Federal agencies as necessary to 
assure compliance with this Act and other Federal laws. 
The Secretary, the Secretary of Agriculture, the Adminis-
trator of the Environmental Protection Agency, and other 
Federal officials shall ensure that such information is pro-
vided protection 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 inter-
est rate as is applicable under section 6621(a)(2) of the 
Internal Revenue Code of 1986. In the case of an under-
payment, interest shall be computed and charged only on 
the amount of the deficiency and not on the total amount. 
(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 
percent of the amount of that underreporting. 
(3) For the purposes of this subsection, the term 
‘‘underreporting’’ means the difference between the roy-
alty on the value of the production that should have been 
reported 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. An 
underreporting constitutes a ‘‘substantial underreporting’’ 
if such difference exceeds 10 percent of the royalty on the 
value of production that should have been reported. 
(4) The Secretary may waive or reduce the assess-
ment provided in paragraph (2) of this subsection if the 
person liable for royalty payments under this section cor-
rects the underreporting before the date such person re-
ceives notice from the Secretary that an underreporting
may have occurred, 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 as-
sessment under paragraph (2) of this subsection attrib-
utable 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, 
(B) such person had substantial authority for 
reporting royalty on the value of the production on 
the basis on which it was reported, 
(C) such person previously had notified the Sec-
retary, in such manner as the Secretary may by rule 
prescribe, of relevant reasons or facts affecting the 
royalty treatment of specific production which led to 
the underreporting, or 
(D) such person meets any other exception 
which the Secretary may, by rule, establish. 
(6) All penalties collected under this subsection shall 
be deposited in the Abandoned Locatable Minerals Mine 
Reclamation Fund established under title IV. 
(g) DELEGATION.—For the purposes of this section, 
the term ‘‘Secretary’’ means the Secretary of the Interior
acting through the Director of the Minerals Management 
Service. 
(h) EXPANDED ROYALTY OBLIGATIONS.—Each per-
son liable for royalty payments under this section shall 
be jointly and severally liable for royalty on all locatable 
minerals, concentrates, or products derived therefrom lost 
or wasted from a mining claim located under the general 
mining laws and maintained in compliance with this Act 
when such loss or waste is due to negligence on the part 
of any person or due to the failure to comply with any 
rule, regulation, or order issued under this section. 
(i) NET SMELTER RETURN DEFINED.—For the pur-
poses of this section, for any locatable mineral, the term 
‘‘net smelter return’’ has the same meaning as the term 
‘‘gross income’’ in section 613(c)(1) of the Internal Rev-
enue Code of 1986. 
(j) EFFECTIVE DATE.—The royalty under this sec-
tion shall take effect with respect to the production of 
locatable minerals after the enactment of this Act, but any 
royalty payments attributable to production during the 
first 12 calendar months after the enactment of this Act 
shall be payable at the expiration of such 12-month period. 
(k) FAILURE TO COMPLY WITH ROYALTY REQUIRE-
MENTS.—Any person who fails to comply with the require-
ments of this section or any regulation or order issued to
implement this section shall be liable for a civil penalty 
under section 109 of the Federal Oil and Gas Royalty 
Management Act (30 U.S.C. 1719) to the same extent as 
if the claim located under the general mining laws and 
maintained in compliance with this Act were a lease under 
that Act. 
TITLE II—PROTECTION OF 
SPECIAL PLACES 
SEC. 201. LANDS OPEN TO LOCATION. 
(a) LANDS OPEN TO LOCATION.—Except as provided 
in subsection (b), mining claims may be located under this 
Act on lands and interests in lands owned by the United 
States if— 
(1) such lands and interests were open to the 
location of mining claims under the general mining 
laws on the date of enactment of this Act; or 
(2) such lands and interests are opened to the 
location of mining claims after the date of enact-
ment of this Act by reason of any administrative ac-
tion or statute. 
(b) LANDS
NOT OPEN
TO LOCATION.—Notwith-
standing any other provision of law and subject to valid 
existing rights, each of the following shall not be open to 
the location of mining claims under this Act on or after 
the date of enactment of this Act: