I 
111TH CONGRESS 
1ST SESSION H. R. 3201 
To amend the General Mining Law to provide for a fair return to the 
public, security of tenure to holders of mining claims and mill sites, 
and cleanup of abandoned mine lands, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2009 
Mr. LAMBORN (for himself and Mr. BISHOP of Utah) introduced the following 
bill; which was referred to the Committee on Natural Resources 
A BILL 
To amend the General Mining Law to provide for a fair 
return to the public, security of tenure to holders of 
mining claims and mill sites, and cleanup of abandoned 
mine lands, 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. 
This Act may be cited as the ‘‘Locatable Mineral 
Royalty and Reclamation Act of 2009’’. 
SEC. 2. FINDINGS AND PURPOSE. 
The Congress finds the following: 
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(1) It is in the national interest to ensure that 
mining of locatable minerals on Federal lands occurs 
in a fair, predictable, and efficient legal and regu-
latory climate to ensure a secure and reliable domes-
tic supply of minerals. 
(2) The domestic mining industry provides hun-
dreds of thousands of high-wage jobs directly and in-
directly to the domestic economy and those jobs, the 
majority of which are in rural parts of our Nation, 
must be preserved and encouraged by a sound Fed-
eral policy regarding mining on Federal lands. 
(3) Mining of locatable minerals on Federal 
lands should provide a fair return to the government 
in the form of a net royalty on minerals produced 
from new mining claims on Federal lands. 
(4) Royalty funds collected from the mining of 
locatable minerals on Federal lands should be used 
to fund the cleanup of hardrock abandoned mine 
lands. 
(5) The certainty needed to attract investment 
in mining activities on Federal lands must be pro-
vided for by ensuring security of land tenure to pur-
sue mineral activities from the time of location 
through mine reclamation and closure. 
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(6) A United States citizen has the right to 
enter upon Federal lands open to location under the 
general mining laws and to use and occupy those 
lands for the purpose of making a discovery and de-
veloping a mineral deposit. 
(7) There are extensive Federal and State envi-
ronmental standards that apply to mining operations 
and these standards have been found by the Na-
tional Academy of Sciences to be generally effective 
in protecting the environment. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CLAIM.—The term ‘‘claim’’ means an 
unpatented mining claim, mill site, or tunnel site. 
(2) CLAIM
HOLDER
AND
CLAIMANT.—The 
terms ‘‘claim holder’’ and ‘‘claimant’’ means the 
owner or holder of a claim. 
(3) FEDERAL
LANDS.—The term ‘‘Federal 
lands’’ means lands and interests in lands owned by 
the United States that are open to mineral entry 
and location, or that were open to mineral entry and 
location at the time of entry or location. 
(4) GENERAL MINING LAWS.—The term ‘‘gen-
eral mining laws’’ means those Acts that generally 
comprise chapters 2, 11, 12, 12A, 15, and 16, and 
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sections 161 and 162, of title 30, United States 
Code, all Acts that are amendatory of or supple-
mentary to any of the foregoing Acts, and the judi-
cial and administrative decisions interpreting such 
Acts. 
(5) 
LOCATABLE
MINERALS.—The 
term 
‘‘locatable minerals’’ means those minerals owned by 
the United States and not subject to disposition 
under— 
(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 Materials Act of 1947 (30 U.S.C. 
601 et seq.); or 
(D) the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.). 
(6) MINERAL ACTIVITIES.—The term ‘‘mineral 
activities’’ means any activity on Federal lands on 
claims with or without a discovery, or off of claims, 
for mineral prospecting, exploration, development, 
mining, extraction, milling, beneficiation, processing, 
storage of mined or processed materials, or reclama-
tion activities for any locatable mineral and uses 
reasonably incident thereto, including the construc-
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tion and use of roads, transmission lines, water 
wells, pipelines, utility corridors, and other means of 
access across Federal lands for ancillary facilities 
used in conjunction with such activity. 
(7) MINING CLAIM OR SITE.—The term ‘‘min-
ing claim or site’’ means an unpatented lode claim, 
placer claim, mill site, or tunnel site located under 
the general mining laws. 
(8) PERSON.—The term ‘‘person’’ means an in-
dividual, Indian tribe, partnership, association, soci-
ety, joint venture, joint stock company, firm, com-
pany, limited liability company, corporation, coopera-
tive, or other organization, and any instrumentality 
of State or local government, including any publicly 
owned utility or publicly owned corporation of State 
or local government. 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, unless otherwise speci-
fied. 
SEC. 4. 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-
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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. 
(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 prior to 
the date of 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) MILL SITES.— 
(1) DETERMINATIONS
REQUIRED.—After the 
date of enactment of this Act, no patent shall be 
issued by the United States for any mill site located 
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under the general mining laws unless the Secretary 
determines that for the mill site concerned— 
(A) a patent application for such mill site 
was filed with the Secretary on or before Sep-
tember 30, 1994; and 
(B) all requirements applicable to the pat-
ent application were fully complied with by Sep-
tember 30, 1994. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations referred to in subparagraphs (A) 
and (B) of paragraph (1) for any mill site, the hold-
er of the mill site shall be entitled to the issuance 
of a patent in the same manner and degree to which 
such person would have been entitled prior to the 
enactment of this Act, unless and until such deter-
minations are withdrawn or invalidated by the Sec-
retary or by a court of the United States. 
SEC. 5. LOCATION, ABANDONED LOCATABLE MINE LAND 
AND MAINTENANCE REQUIREMENTS. 
(a) LOCATION FEE.—For each claim located after 
the date of enactment of this Act, a claimant shall pay 
the Secretary a location fee of $35 not later than 90 days 
after the date of location. 
(b) ABANDONED LOCATABLE MINE LAND FEE.— 
Commencing the first calendar year after the date of en-
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actment of this Act, a claimant shall pay the Secretary 
on or before August 31 of each year, an abandoned 
locatable mine land fee of $25 per claim. 
(c) ANNUAL MAINTENANCE FEE.—Commencing the 
first calendar year after the date of enactment of this Act, 
a claimant shall pay the Secretary on or before August 
31 of each year, a maintenance fee of $125 per claim to 
maintain the claim for the following assessment year be-
ginning at noon on September 1. Payment of 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) 
and (c) of the Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1744 (a) and (c)). 
(d) FAILURE TO PAY FEE.— 
(1) IN GENERAL.—Failure to timely pay the lo-
cation fee or maintenance fee required by this sec-
tion shall subject a claim to forfeiture by the claim 
holder as provided in this subsection. 
(2) NOTICE AND OPPORTUNITY TO CURE.—The 
Secretary shall provide the claim holder with notice 
of the failure and the opportunity to cure within 45 
calendar days after the claim holder’s receipt of the 
notice. 
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(3) FORFEITURE.—Failure by the claim holder 
to make a timely and proper payment in the amount 
specified in the notice by the Secretary, within 45 
days after the claim holder’s receipt of the notice, 
shall constitute a forfeiture of the mining claim, mill 
site, or tunnel site by the claim holder by operation 
of law. 
(e) EXCEPTION FOR HOLDERS OF FEWER THAN 50 
CLAIMS.— 
(1) IN GENERAL.—The claim maintenance fees 
required under this section shall be waived or re-
duced in accordance with paragraph (3) for a claim-
ant who certifies in writing to the Secretary that on 
the date the payment was due the claimant— 
(A) was the holder of not more than 50 
claims on Federal lands; and 
(B) has performed assessment work suffi-
cient to maintain the claims held by the claim-
ant for the assessment year ending on noon of 
September 1 of the calendar year in which the 
maintenance fee payment was due. 
(2) HOLDER.—As used in paragraph (1), the 
term ‘‘holder’’ includes— 
(A) the claimant; 
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(B) the spouse and dependent children (as 
defined in section 152 of the Internal Revenue 
Code of 1986), of the claimant; and 
(C) a person affiliated with the claimant, 
including— 
(i) a person controlled by, controlling, 
or under common control with the claim-
ant; and 
(ii) a subsidiary or parent company or 
corporation of the claimant. 
(3) 
WAIVED
OR
REDUCED
MAINTENANCE 
FEES.— 
(A) 10 OR FEWER CLAIMS.—The mainte-
nance fee shall be waived in its entirety for 10 
or fewer claims held by a claimant eligible for 
a waiver under paragraph (1). 
(B) 11 OR MORE CLAIMS.— 
(i) IN
GENERAL.—Subject to clause 
(ii), the maintenance fee shall be reduced 
to $25 per claim for each claim in excess 
of 10. 
(ii) LIMITATIONS.—The reduction in 
this subparagraph shall be available for no 
more than 50 claims held by a claimant 
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who is eligible for a waiver under para-
graph (1). 
(4) 
WAIVED
OR
REDUCED
ABANDONED 
LOCATABLE MINE LAND FEES.— 
(A) 10 OR
FEWER
CLAIMS.—The aban-
doned locatable mine land fee shall be waived in 
its entirety for 10 or fewer claims held by a 
claimant eligible for a waiver under paragraph 
(1). 
(B) 11 OR MORE CLAIMS.— 
(i) IN
GENERAL.—Subject to clause 
(ii), the abandoned locatable mine land fee 
shall be reduced to $5 per claim for each 
claim in excess of 10. 
(ii) LIMITATIONS.—The reduction in 
this subparagraph shall be available for no 
more than 50 claims held by a claimant 
who is eligible for a waiver under para-
graph (1). 
(f) EXISTING REQUIREMENTS.— 
(1) PAYMENT IN LIEU OF ANNUAL LABOR RE-
QUIREMENTS.—The third sentence of section 2324 
of the Revised Statutes (30 U.S.C. 28) is amended 
by inserting ‘‘or section 5(g) of the Locatable Min-
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eral Royalty and Reclamation Act of 2009’’ after 
‘‘Act of 1993’’. 
(2) FEDERAL FILING REQUIREMENTS.—Section 
314 of the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1744) is amended— 
(A) by striking subsection (a); 
(B) by redesignating subsections (b), (c), 
and (d) as subsections (a), (b), and (c), respec-
tively; and 
(C) in subsection (b) (as so redesignated) 
by striking ‘‘subsections (a) and (b)’’ and in-
serting ‘‘subsection (a)’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
2511(e) of the Energy Policy Act of 1992 (30 
U.S.C. 242(e)) is amended by striking the second 
sentence. 
(g) EFFECTS OF PAYMENT.— 
(1) IN GENERAL.—Timely payment of the loca-
tion and claim maintenance fees secures the rights 
of the holder of a mining claim, mill site, or tunnel 
site, both prior to and after discovery of valuable 
mineral deposits, to use and occupy Federal lands 
under the provisions of the general mining laws for 
all mineral activities. 
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(2) WAIVER OF CLAIM MAINTENANCE FEE.—In 
the case of claim holders who qualify for a waiver 
of payment of the claim maintenance fee, timely 
payment of the location fee and compliance with the 
assessment work required under the general mining 
laws (30 U.S.C. 28–28e) secures the rights of the 
holder of a mining claim, mill site, or tunnel site, 
both prior to and after discovery of valuable mineral 
deposits, to use and occupy Federal lands under the 
provisions of the general mining laws for all mineral 
activities. 
(h) 
RELATIONSHIP
TO
OTHER
LAW.—Section 
102(a)(9) of Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1701(a)(9)) is inapplicable to mineral 
activities. 
SEC. 6. ROYALTY. 
(a) IN GENERAL.— 
(1) IMPOSITION OF ROYALTY.—The production 
of locatable minerals from any mining claim located 
on Federal lands after the date of enactment of this 
Act shall be subject to a royalty of two percent of 
the net proceeds from such production. 
(2) NO DUTY TO PRODUCE.—The imposition of 
a royalty under this section shall not create any duty 
to produce locatable minerals from any mining 
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claim. In no event shall the value of locatable min-
erals not extracted from a claim or lost in processing 
be included in ‘‘gross yield’’, as that term is defined 
in subsection (c)(2). 
(3) STOCKPILING.—The stockpiling of locatable 
minerals or mineral products for future processing 
shall not constitute a sale or use of such locatable 
minerals for determining net proceeds. 
(b) ROYALTY EXCLUSION.— 
(1) WAIVER FOR LIMITED PRODUCTION.—The 
royalty payable under this section shall be waived for 
any person with annual net proceeds from mineral 
production subject to subsection (a) of less than 
$100,000. The Secretary shall adjust the $100,000 
limitation annually to reflect changes in the Con-
sumer Price Index published by the Bureau of Labor 
Statistics of the Department of Labor. 
(2) OPERATIONS IN TWO OR MORE PLACES.— 
Where mining operations subject to this section are 
conducted in two or more places by the same person, 
the operations shall be considered a single operation 
the aggregate net proceeds from which shall be sub-
ject to the limitation set forth in paragraph (1). 
(3) ENCOURAGEMENT OF RECOVERY AND IN-
TEREST IN CONSERVATION.—The Secretary, for the 
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purpose of encouraging the greatest ultimate recov-
ery of minerals and in the interest of conservation 
of natural resources, may waive, suspend, or reduce 
the royalty established in subsection (a) on any min-
ing claim or group of mining claims, whenever in the 
Secretary’s judgment it is necessary to do so in 
order to promote development, or whenever in the 
Secretary’s judgment the claim or claims and other 
lands comprising a single operation cannot be suc-
cessfully operated under the royalty established in 
subsection (a). 
(c) DEFINITIONS.—For the purposes of this section: 
(1) NET PROCEEDS.—The term ‘‘net proceeds’’ 
means gross yield less the sum of all deductions, de-
termined without duplication in accordance with 
generally accepted accounting principles in the 
United States, for the following: 
(A) Extracting the locatable mineral. 
(B) Transporting the locatable mineral 
from the claim to the place or places of reduc-
tion, beneficiation, refining, and sale. 
(C) Reduction, beneficiation, refining, and 
sale of the locatable mineral, including expenses 
of replacing, expanding, modifying, or changing 
from time to time the machinery, equipment, 
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apparatus, works, plants, and facilities used for 
reduction, beneficiation, refining, and sale of 
the locatable mineral. 
(D) Marketing and delivering the locatable 
mineral, including an allowance for commissions 
at rates that are normal and customary in the 
industry. 
(E) Maintenance and repairs of all ma-
chinery, equipment, apparatus, works, plants, 
and facilities used in extraction, reduction, 
beneficiation, refining, transportation, and sale. 
(F) Support personnel and support serv-
ices used in extraction, reduction, beneficiation, 
refining, transportation, and sale, including 
without limitation, accounting, assaying, draft-
ing and mapping, computer services, surveying, 
housing, camp, and head office expenses, safety, 
and security. 
(G) Engineering, sampling, and assaying 
pertaining to development and production. 
(H) 
Permitting, 
reclamation, 
environ-
mental compliance, and monitoring. 
(I) Fire and other insurance on the ma-
chinery, equipment, apparatus, works, plants, 
and facilities described in subparagraph (E). 
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(J) Depreciation of the original capitalized 
cost of the machinery, equipment, apparatus, 
works, plants, and facilities described in sub-
paragraph (E), except that— 
(i) the annual depreciation charge 
shall consist of amortization of the original 
cost in the manner consistent with the In-
ternal Revenue Code of 1986, as amended 
from time to time; and 
(ii) the probable life of the property 
represented by the original cost must be 
considered in computing the depreciation 
charge. 
(K) Premiums for industrial insurance, 
and the owner-paid cost of hospital and medical 
attention and accident benefits and group in-
surance for all employees engaged in the pro-
duction or processing of the locatable mineral. 
(L) Contributions or payments under State 
unemployment compensation law; contributions 
under the Federal Social Security Act; State 
and local real property taxes, personal property 
taxes, and other taxes, other than income taxes, 
applicable to mining operations; severance, ad 
valorem, or other taxes measured or levied on 
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production; and Federal excise taxes, mainte-
nance fees, and other charges for use of the 
Federal lands from which the locatable mineral 
is produced. 
(M) Developmental work upon a claim or 
group of claims and other lands when operated 
as a unit. 
(N) All royalties, overriding royalties, pro-
duction payments, or similar payments meas-
ured by production (other than the royalty 
under this section) of the locatable mineral paid 
to any person. 
(O) Any other deduction permitted by the 
Secretary. 
(2) GROSS
YIELD.—The term ‘‘gross yield’’ 
means the following, determined without duplication: 
(A) In the case of sales of the locatable 
mineral ore by the owner or co-owners, the ac-
tual proceeds of sale of such ore. 
(B) In the case of sales by the owner or 
co-owners of concentrates, bullion, or other 
beneficiated products from the locatable mineral 
(including cathode, anode or copper rod or wire, 
or other products fabricated from the locatable 
minerals), the gross income from mining de-
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rived from the first commercially marketable 
product, determined in the same manner as 
‘‘gross income from the property’’ is determined 
under section 613(c) of the Internal Revenue 
Code of 1986. 
(C) If the locatable mineral or ore, con-
centrates, bullion, or other beneficiated or fab-
ricated products containing the locatable min-
eral are actually recovered by the owner or co- 
owners, but are used or consumed by the owner 
or co-owners or are not sold in an arms-length 
sale, the term ‘‘gross yield’’ means the reason-
able fair market value of the locatable mineral 
contained therein at the mine or wellhead, de-
termined from the first applicable of the fol-
lowing: 
(i) Published or other competitive sell-
ing prices of the locatable mineral of like 
kind and grade. 
(ii) Any proceeds of sale. 
(iii) Value received in exchange for 
any thing or service. 
(iv) The value of any locatable min-
eral in kind or used or consumed in a man-
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ufacturing process or in providing a serv-
ice. 
(v) In such other manner determined 
by the Secretary that arrives at a reason-
able value for the locatable mineral con-
tained therein at the mine or wellhead. 
Any profits or losses incurred in connection 
with forward sales, futures or commodity op-
tions trading, metal loans, or any other price 
hedging or speculative activity or arrangement 
shall not be included in gross yield. 
(3) 
EXTRACTING
AND
EXTRACTION.—The 
terms ‘‘extracting’’ and ‘‘extraction’’ includes all 
mining and extraction methods for removing the 
locatable mineral from the ground, including placer 
mining, open pit mining, underground mining, leach-
ing, and solution mining. 
(4) REDUCTION, BENEFICATION, AND
REFIN-
ING.—The terms ‘‘reduction’’, ‘‘beneficiation’’, and 
‘‘refining’’ include all treatment processes necessary 
or incidental to the mining of the locatable mineral 
and the preparation of a commercially marketable 
product, including crushing, milling, flotation, leach-
ing, smelting, reduction, agglomeration, refining, 
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electro-winning, and other beneficiation of the 
locatable mineral ore or the products thereof. 
(5) INTENT OF DEDUCTIONS.—The deductions 
set forth in paragraph (1) are intended to allow, 
without duplication, a reasonable allowance for over-
head associated with the mining operations and 
other activities described in paragraph (1), including 
administrative supervision, accounting, data proc-
essing, personnel administration, billing and record-
keeping, tax administration, legal services, rentals 
and other charges for office and records storage 
space, telecommunications service, office equipment 
and supplies. 
(d) ALLOCATIONS OF NET PROCEEDS, GROSS YIELD 
AND ALLOWABLE DEDUCTIONS.—Ores or solutions of 
locatable minerals subject to a royalty under this section 
may be extracted from mines that include mining claims 
and lands that are not subject to a royalty under this sec-
tion. The locatable minerals from mining claims subject 
to a royalty under this section, and the ores and solutions 
thereof, may be commingled with locatable minerals, ores, 
or solutions from mining on such other mining claims and 
lands. In any such case, for purposes of determining the 
amount of a royalty payable under this section— 
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(1) prior to commingling, the operator shall 
first sample, weigh or measure, and assay the same 
in accordance with accepted industry standards; and 
(2) gross yield, allowable deductions, and net 
proceeds for royalty purposes shall be allocated in 
proportion to the quantity of locatable minerals pro-
duced from the mining claims subject to a royalty 
under this section compared to the mining claims 
and other lands not subject to a royalty under this 
section, in accordance with accepted industry stand-
ards. 
(e) LIABILITY
FOR
ROYALTY
PAYMENTS.—The 
owner or co-owners of a mining claim subject to a royalty 
under this section shall be liable for such royalty to the 
extent of the interest in such claim owned. No person (in-
cluding any contract miner) who makes any royalty pay-
ment under this section attributable to the interest of any 
owner or co-owner liable therefore shall become liable to 
the United States for such royalty payment as a result 
of making such payment to the United States on behalf 
of such owner or co-owner. 
(f) TIME AND MANNER OF PAYMENT.— 
(1) IN GENERAL.— 
(A) TIME
OF
PAYMENT.—Royalty pay-
ments for production from any mining claim 
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subject to a royalty payable under this section 
shall be due to the United States at the end of 
the month following the end of the calendar 
quarter in which the net proceeds from the sale 
of such production are determined in respect of 
the owner or co-owners thereof under sub-
section (c)(1). 
(B) PAYMENT
BASED
ON
ESTIMATES.— 
Royalty payments under this section may be 
made based upon good faith estimates of the 
gross yield, net proceeds, and the quantity of 
ore, concentrates, or other beneficiated or fab-
ricated products of locatable minerals, subject 
to adjustment when the actual annual gross 
yield, net proceeds, and quantity are determined 
by the owner or co-owners of the mining claim 
under subsection (h)(3). 
(2) REQUIRED STATEMENT.—Each royalty pay-
ment or adjustment shall be accompanied by a state-
ment containing each of the following: 
(A) The name and Bureau of Land Man-
agement serial number of the mining claim or 
claims from which ores, concentrates, solutions, 
or beneficiated products of locatable minerals 
subject to a royalty under this section were cal-
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culated for the period covered by such payment 
or adjustment. 
(B) The estimated (or actual, if deter-
mined) quantity of such ore, concentrates, solu-
tions, or beneficiated or fabricated products for 
which net proceeds were calculated for such pe-
riod. 
(C) The estimated (or actual, if deter-
mined) gross yield from such ore, concentrates, 
solutions, or beneficiated products for such pe-
riod. 
(D) The estimated (or actual, if deter-
mined) net proceeds from such ores, con-
centrates, solutions, or beneficiated products for 
such period, including an itemization of the ap-
plicable deductions described in subsection 
(c)(1). 
(E) The estimated (or actual, if deter-
mined) royalty due to the United States, or ad-
justment due to the United States, for such pe-
riod. 
(F) The amount of any royalty collected 
and paid to the United States on behalf of any 
co-owner liable therefore under subsection (e). 
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(3) ADJUSTMENT IN LIEU OF REFUND.—In lieu 
of receiving a refund under subsection (h), the 
owner or co-owners may elect to apply any adjust-
ment due to such owner or co-owners as an offset 
against royalties due from such owner or co-owners 
to the United States under this section, regardless 
of whether such royalties are due for production and 
sale from the same mining claim or claims. 
(g) RECORDKEEPING
AND REPORTING REQUIRE-
MENTS.— 
(1) IN GENERAL.—An owner or co-owner sub-
ject to a royalty under this section shall establish 
and maintain any records, make any reports, and 
provide any information that the Secretary may rea-
sonably require for the purposes of implementing 
this section or determining compliance with regula-
tions or orders under this section. Upon the request 
of the Secretary when conducting an audit or inves-
tigation pursuant to subsection (i), the appropriate 
records, reports, or information required by this sub-
section shall be made available for inspection and 
duplication by the Secretary. 
(2) MAINTENANCE.—Records required by the 
Secretary under this section shall be maintained for 
3 years after the date the royalty to which such 
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records relate was due, unless the Secretary notifies 
the record holder that the Secretary has initiated an 
audit or investigation specifically identifying and in-
volving such records and that such records must be 
maintained for a longer period. When an audit or in-
vestigation is under way, such records shall be main-
tained until the earlier of the date that the Secretary 
releases the record holder of the obligation to main-
tain such records or the date that the limitations pe-
riod applicable to such audit or investigation under 
subsection (i) expires. 
(h) INTEREST ASSESSMENTS.— 
(1) IN GENERAL.— 
(A) AUTHORITY TO CHARGE INTEREST.— 
If royalty payments under this section are not 
received by the Secretary on the date that such 
payments are due, or if such payments are less 
than the amount due, the Secretary shall 
charge interest on such unpaid amount. 
(B) COMPUTATION.—Interest under this 
subsection shall be computed at the rate pub-
lished by the Department of the Treasury as 
the ‘‘Treasury Current Value of Funds Rate’’. 
(C) UNDERPAYMENT
OR
PARTIAL
PAY-
MENT.—In the case of an underpayment or 
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partial payment, interest shall be computed and 
charged only on the amount of the deficiency 
and not on the total amount, and only for the 
number of days such payment is late. 
(D) OTHER CHARGE OR PENALTY PROHIB-
ITED.—No other late payment or underpayment 
charge or penalty shall be charged with respect 
to royalties under this section. 
(2) REFUND OF OVERPAYMENT.—In any case 
in which royalty payments under this section are 
made in excess of the amount due, or amounts are 
held by the Secretary pending the outcome of any 
appeal in which the Secretary does not prevail, the 
Secretary shall promptly refund such overpayments 
or pay such amounts to the person or persons enti-
tled thereto, together with interest thereon for the 
number of days such overpayment or amounts were 
held by the Secretary, with the addition of interest 
charged against the United States computed at the 
rate published by the Department of the Treasury as 
the ‘‘Treasury Current Value of Funds Rate’’. 
(3) RECONCILIATION.— 
(A) IN GENERAL.—Within 90 days after 
the end of each calendar year, the owner or co- 
owner shall provide an annual reconciliation of 
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the quarterly payments of royalty under this 
section made during the preceding calendar 
year. 
(B) 
OVERPAYMENTS
AND
UNDERPAY-
MENTS.—At the time of the annual reconcili-
ation, any overpayments shall be credited to the 
next quarterly payments and any underpay-
ments shall be paid. 
(i) AUDITS, PAYMENT
DEMANDS, AND
LIMITA-
TIONS.— 
(1) IN GENERAL.—The Secretary may conduct, 
after notice, any audit reasonably necessary and ap-
propriate to verify the payments required under this 
section. 
(2) PAYMENT DEMANDS.—The Secretary shall 
send or issue any billing or demand letter for royalty 
due on locatable minerals calculated with respect to 
any mining claim subject to a royalty required by 
this section not later than 3 years after the date 
such royalty was due and must specifically identify 
the production involved, the royalty allegedly due, 
and the basis for the claim. 
(3) LIMITATION
ON
ACTIONS, PROCEEDINGS, 
AND CLAIMS.—No action, proceeding, or claim for 
royalty due on locatable minerals produced and sold, 
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or relating to such production, may be brought by 
the United States, including but not limited to any 
claim for additional royalties or claim of the right to 
offset the amount of such additional royalties 
against amounts owed to any person by the United 
States, unless judicial suit or administrative pro-
ceedings are commenced to recover specific amounts 
claimed to be due prior to the expiration of 3 years 
from the date such royalty is alleged to have been 
due. 
(j) OWNER AND CO-OWNER DEFINED.—As used in 
this section, the terms ‘‘owner’’ and ‘‘co-owner’’ mean the 
person or persons owning the right to mine locatable min-
erals from such claim and receiving the net proceeds of 
production from the claim, but shall not include a person 
that is engaged in contract mining for such owner or co- 
owners or a person that owns only a royalty, overriding 
royalty, production payment, or similar interest or pay-
ment measured by production from such claim. 
SEC. 7. ABANDONED LOCATABLE MINE RECLAMATION 
FUNDS. 
(a) 
ESTABLISHMENT; 
ADMINISTRATION; 
STATE 
FUNDS.—There is created on the books of the Treasury 
of the United States a separate account to be known as 
the Abandoned Locatable Mine Reclamation Fund (here-
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inafter in this section referred to as the ‘‘fund’’) which 
shall be administered by the Secretary of the Interior to 
provide funds for the Abandoned Locatable Mine Rec-
lamation Program established by this Act. A State or trib-
al abandoned mine reclamation fund (in this section re-
ferred to as a ‘‘State fund’’) shall be established pursuant 
to a State or Indian tribe program approved under section 
8(e) by each State and each Indian tribe that receives a 
grant under this Act, and shall be comprised of the funds 
provided as such grant. 
(b) SOURCES OF DEPOSITS TO FUND.—There shall 
be deposited into the fund amounts derived from— 
(1) the abandoned locatable mine land fee levied 
under section 5; 
(2) location and claim maintenance fees in ex-
cess of that amount appropriated annually for min-
ing law administration; 
(3) royalties required under section 6, and any 
interest due to late payment or underpayment of 
royalties and any earnings on such royalties; and 
(4) donations by persons, corporations, associa-
tions, and foundations for the purposes of this Act. 
(c) DISTRIBUTION OF FUNDS.—One hundred percent 
of the abandoned locatable mine land fees deposited in the 
fund shall be available for grants under section 8. All 
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other deposits into the fund shall be available subject to 
appropriations as authorized in section 8(f). 
SEC. 8. ABANDONED LOCATABLE MINERALS MINE REC-
LAMATION PROGRAM. 
(a) ESTABLISHMENT.—There is established a pro-
gram to be known as the Abandoned Locatable Minerals 
Mine Reclamation Program (referred to in this section as 
the ‘‘Program’’). The Program shall be administered by 
the Secretary acting through the Director of the Office 
of Surface Mining. 
(b) DESCRIPTION OF PROGRAM.— 
(1) IN GENERAL.—The Secretary may under 
the Program make grants for the reclamation of 
land and water resources adversely affected by past 
hardrock mining to— 
(A) eligible States and Indian tribes; and 
(B) Federal agencies. 
(2) USE.—A grant under this subsection may 
be used for— 
(A) the reclamation of abandoned hardrock 
surface mined areas and associated adversely 
affected water resources; 
(B) the reclamation of abandoned hardrock 
milling and processing areas and associated ad-
versely affected water resources; 
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(C) the sealing, filling, and grading of 
abandoned locatable deep mine entries; 
(D) the planting of land adversely affected 
by past locatable mining to prevent erosion and 
sedimentation; 
(E) the prevention, abatement, treatment, 
and control of water pollution created by aban-
doned locatable mine drainage; 
(F) the control of surface subsidence due 
to abandoned locatable deep mines; and 
(G) such other projects as may be nec-
essary to carry out this Act. 
(3) PRIORITIES.—In making grants under this 
section, the Secretary shall give priority (in order of 
priority stated) to— 
(A) the protection of public health, safety, 
and general welfare from the adverse effects of 
past locatable mineral mining practices; and 
(B) the reclamation of land and water re-
sources previously degraded by the adverse ef-
fects of past locatable minerals and mineral ma-
terials mining practices. 
(c) ELIGIBLE AREAS.— 
(1) ELIGIBILITY
IN
GENERAL.—Subject to 
paragraph (2), grants under this section may be 
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used to carry out reclamation activities only on land 
and water in a State or on Indian tribal land— 
(A) that was mined or processed for 
locatable minerals and mineral materials, and 
was abandoned or left in an inadequate rec-
lamation status prior to the date of enactment 
of this section; 
(B) for which the Secretary, a State, or an 
Indian tribe makes a determination that there 
is no continuing reclamation responsibility 
under Federal or State law; and 
(C) for which it can be established that the 
land or water does not contain minerals that 
could economically be extracted through reproc-
essing or remining, unless this subparagraph 
conflicts with the priorities set forth under sub-
section (b)(2). 
(2) SPECIFIC
SITES
AND
AREAS
NOT
ELIGI-
BLE.—Areas designated for remedial action pursu-
ant to the Uranium Mill Tailing Radiation Control 
Act of 1978 (42 U.S.C. 7901 et seq.) or that have 
been listed for remedial action pursuant to the Com-
prehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 et seq.) 
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shall not be eligible for expenditure under this sec-
tion. 
(d) ALLOCATIONS AND EXPENDITURES.— 
(1) ALLOCATIONS.— 
(A) IN GENERAL.—The Secretary shall al-
locate funds under this section for each fiscal 
year in the form of— 
(i) grants to eligible States or Indian 
tribes in accordance with this section 
(other than paragraph (2)); 
(ii) grants to other States and Indian 
tribes in accordance with paragraph (2); 
and 
(iii) grants to Federal agencies with 
abandoned 
mine 
lands 
programs 
for 
hardrock mines (locatable minerals) and 
mineral materials. 
(B) STATES AND INDIAN TRIBES WITHOUT 
A STATE FUND.—States and Indian tribes that 
have not established or maintained a State fund 
shall be eligible for grants from the Federal 
fund under paragraph (2). 
(C) DISTRIBUTION.—The Secretary shall 
distribute the funds to eligible States, other 
States, Indian tribes, and Federal agencies giv-
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ing due consideration to the priorities stated in 
subsection (b)(2) according to the following 
schedule: 
(i) 60 percent to States and Indian 
tribes that are eligible States or Indian 
tribes under subsection (e). 
(ii) 15 percent to other States and In-
dian tribes in accordance with paragraph 
(2). 
(iii) 25 percent to Federal agencies 
with abandoned mine lands programs for 
hardrock mines (locatable minerals) and 
mineral materials. 
(2) DIRECT
FEDERAL
EXPENDITURES
FROM 
FEDERAL FUND.—The Secretary shall make grants 
to States and Indian tribes that are not eligible 
States or Indian tribes under subsection (e) based 
on the greatest need for the funds pursuant to the 
priorities stated in subsection (b)(2). 
(e) STATE AND TRIBAL RECLAMATION PROGRAMS.— 
(1) ELIGIBLE
STATE
OR
INDIAN
TRIBE
DE-
FINED.—For the purpose of this section, the term 
‘‘eligible State or Indian tribe’’ means a State or In-
dian tribe that the Secretary determines meets each 
of the following requirements: 
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(A) Within the State or Indian tribal lands 
there are mined lands, waters, and facilities eli-
gible for reclamation under subsection (c). 
(B) The State or Indian tribe has devel-
oped an inventory of affected areas following 
the priorities established under subsection 
(b)(2). 
(C) The State or Indian tribe has estab-
lished, and the Secretary has approved, a State 
or Indian tribe abandoned locatable minerals 
and mineral materials mine reclamation pro-
gram for the purpose of receiving and admin-
istering grants under this section, including by 
establishing and maintaining a State fund in 
accordance with section 7(a). 
(2) MONITORING.—The Secretary shall monitor 
the expenditure of State and Indian tribe grants to 
ensure that the grants are being utilized to carry out 
this Act. 
(3) STATE
AND
INDIAN
TRIBE
PROGRAMS.— 
The Secretary shall approve any State or Indian 
tribe abandoned locatable minerals mine reclamation 
program submitted to the Secretary by a State or 
Indian tribe under this section if the Secretary finds 
that the State or Indian tribe has the means and 
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necessary State or tribal legislation to implement the 
program and that the program complies with this 
section. 
(4) APPROVAL OF EXISTING PROGRAMS.—Any 
State program for reclamation of abandoned mines 
approved under title IV of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 1231 
et seq.) before the date of enactment of this Act and 
in good standing with the Secretary as of that date 
shall be considered approved under this title. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
there are authorized to be appropriated such sums 
as are necessary to carry out this section. 
(2) LIMITATION.—The amount annually au-
thorized to be appropriated under this subsection 
shall not exceed the sums paid into the Treasury of 
the United States, pursuant to section 7 for the fis-
cal year preceding the authorization. 
SEC. 9. ESTABLISHMENT OF OFFICE OF ECONOMIC GEOL-
OGY. 
(a) IN GENERAL.—From the existing staff and budg-
et assets of the Department of the Interior and the United 
States Geological Survey, the Secretary shall within 90 
days after the date of enactment of this Act establish the 
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Office of Economic Geology, which shall be directly super-
vised by the Director of the United Sates Geological Sur-
vey. 
(b) FUNCTIONS.— 
(1) IN GENERAL.—The Office of Economic Ge-
ology shall have responsibility for all policy, plan-
ning, and program direction for all of the activities 
of the energy and mineral resource programs, in-
cluding research, within the United States Geologi-
cal Survey. The Office and shall have direct respon-
sibility for— 
(A) the National Mineral Resource Inven-
tory required by section 10; and 
(B) all energy resource surveys, studies, in-
vestigations or inventories assigned to the 
United States Geological Survey by legislation. 
(2) IN GENERAL.—The Director of the United 
States Geological Survey, through the Office of Eco-
nomic Geology, shall annually prepare, publish, and 
submit to the Congress a report on the state of the 
domestic exploration, mining, minerals, and mineral 
reclamation industries, including— 
(A) a statement of the trend in utilization 
and depletion of the domestic supplies of min-
eral commodities; 
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(B) a description of ongoing research, 
studies, investigations, and inventories being 
carried out under the direction of the Office; 
and 
(C) a detailed report on the status of the 
National Minerals Inventory and Assessment 
Program established by section 10. 
SEC. 10. MANDATORY NATIONAL COOPERATIVE MINERAL 
RESOURCE INVENTORY AND ASSESSMENT 
PROGRAM. 
(a) IN GENERAL.—The Secretary shall conduct quan-
titative national minerals assessments of the mineral re-
sources in the United States and insular areas on a recur-
ring basis to ensure adequate knowledge of all potential 
and actual domestic mineral supplies and to provide for 
effective stewardship of the Nation’s resources. All such 
assessments shall be cooperative activities that provide 
funding to non-Federal participants, including State gov-
ernments, academic institutions, and private persons, at 
a rate of not less than $2 in Federal funds for each dollar 
of non-Federal funds expended to carry out the assess-
ments. 
(b) PREPARATION
FOR ASSESSMENTS.—Not later 
than 90 days after the date of enactment of this Act, the 
Secretary, in advance of the national assessments, shall 
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direct appropriate personnel of the Department of the In-
terior— 
(1) to identify all critical commodities to be as-
sessed on a priority basis, using the process identi-
fied by the National Academy report entitled ‘‘Min-
erals, Critical Minerals, and the U.S. Economy’’; 
(2) update all existing mineral deposit models 
and develop such new ones found, after public com-
ment; 
(3) conduct historical analyses pertaining to ex-
ploration and discovery of the mineral deposits de-
scribed in the existing mineral deposit models and 
any newly developed, paying particular attention to 
those containing critical commodities identified 
under paragraph (1), including making of estimates 
of exploration expenditures; and 
(4) update, maintain, supplement, and expand 
on a continuing basis, the information contained in 
USGS Professional Paper 820, entitled ‘‘United 
States Mineral Resources’’. 
(c) UPDATE OF METHODOLOGY AND SOFTWARE.— 
The Secretary shall ensure that the analytical method-
ology and software critical to conducting the assessment 
is updated, and shall develop economic sensitivity meas-
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ures to filter and refine numerical assessment data and 
develop measures of assessment uncertainty. 
(d) DIGITIZATION; GLOBAL MINERAL RESOURCE 
CONTEXT.—The Secretary shall digitally systemize na-
tional-scale earth science data and develop a conceptual 
framework for placing the updated national mineral re-
source assessment in the context of a global mineral re-
source assessment. 
(e) PUBLIC INPUT.—The Secretary shall engage the 
general public and users of the resource assessment and 
solicit input concerning how best to develop, conduct, and 
communicate the results of the assessment. 
SEC. 11. URANIUM POLICY SUMMIT. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘National Uranium Summit Act’’. 
(b) FINDINGS.—The Congress finds the following: 
(1) It is necessary to preserve access to domes-
tic uranium reserves and resources in order to meet 
the United States’ demand for clean noncarbon 
emitting energy. Doing so will contribute to the Na-
tion’s effort to seek energy independence and en-
hance our national and economic security. 
(2) United States utilities currently use ap-
proximately 56,000,000 pounds of uranium each 
year. Meanwhile, total United States uranium pro-
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duction 
is 
only 
approximately 
3,000,000 
to 
4,000,000 pounds each year, or less than 10 percent 
of the Nation’s annual need. 
(3) To meet the United States demand for ura-
nium, the United States imports uranium from Rus-
sia, Canada, Australia, and Kazakhstan. In 2004, 
nearly 50 percent of imported uranium came from 
Russia. 
(4) If climate change legislation results in a 
doubling of our domestic nuclear energy production, 
we would need to increase our domestic production 
by a factor of 10 simply to supply one third of our 
demand. 
(5) American industry can easily produce 
20,000,000 to 30,000,000 pounds of uranium each 
year from domestic resources. 
(6) To produce those resources we must pre-
serve access to the Nation’s uranium reserves and 
resources found within the northern Arizona strip, 
northwestern New Mexico, Wyoming, Virginia, and 
other parts of the United States. 
(7) The Arizona strip region, located in the 
Utah-Arizona border region, is estimated to contain 
a resource endowment of 375,000,000 pounds of 
uranium oxide (United States Geological Survey Cir-
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cular 1051), making it the second most important 
uranium region in the United States after to Wyo-
ming. The energy potential of this quantity of ura-
nium rivals the energy equivalence of the total recov-
erable oil discovered at Prudhoe Bay Alaska, the 
largest oil field in North America. This quantity of 
uranium comprises over 40 percent of the Nation’s 
estimated uranium resource endowment, and Ari-
zona Strip area uranium is by far the highest grade 
uranium nationally. Development of these resources 
would promote energy independence and protect our 
national security. 
(8) Development of these resources would pre-
vent the United States from being over reliant on 
less stable foreign sources of uranium. 
(9) The importance of developing these re-
sources is crucial as the rest of the world is embrac-
ing nuclear power, including China, India, Russia, 
Europe, the Middle East, Japan, and Korea, result-
ing in a exponential demand for known and undis-
covered uranium resources. 
(c) CONVENING OF URANIUM POLICY SUMMIT.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior, working with the Secretary of Energy, shall 
convene a national summit on uranium by no later 
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than 180 days after the date of the enactment of 
this Act, to produce a report for Congress by no 
later than 1 year after the date of the enactment of 
this Act that includes an assessment of the Nation’s 
uranium resources and provides policy recommenda-
tions to ensure access to these resources for private 
sector development in an environmentally responsible 
manner. A principal policy objective of the summit 
and report shall be to domestically produce enough 
uranium to meet 30 percent of our national uranium 
demand by 2030. 
(2) PARTICIPANTS.—The national summit on 
uranium shall include— 
(A) representatives from mining, enrich-
ment, utility, and disposal sectors of the ura-
nium industry; and 
(B) experts in hydrology, geology, mine 
reclamation, and safety. 
Æ 
VerDate Nov 24 2008 
22:38 Jul 15, 2009
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