I 
108TH CONGRESS 
1ST SESSION 
H. R. 504
To provide for the reclamation of abandoned hardrock mines, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2003
Mr. UDALL of Colorado introduced the following bill; which was referred to 
the Committee on Resources, and in addition to the Committee on Trans-
portation and Infrastructure, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To provide for the reclamation of abandoned hardrock mines, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, FINDINGS, AND PURPOSE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Abandoned Hardrock Mines Reclamation Act’’. 
(b) FINDINGS.—The Congress finds that: 
(1) Through various laws and policies, including 
the Act of May 10, 1872 (commonly known as the 
General Mining Law of 1872; 30 U.S.C. 22 et seq.),
the Federal Government has encouraged the develop-
ment of gold, silver, and other mineral resources, es-
pecially in the western States, and development of 
these resources has helped create a strong economy 
and provided needed materials for many critical 
products and services. 
(2) However, historically mining activities have 
occurred in recurrent cycles of ‘‘boom’’ followed by 
‘‘bust’’, with many mines left inactive or abandoned 
at the end of each cycle. 
(3) As a result of this history, the United 
States has been left an unwelcome legacy of inactive 
or abandoned mines, including thousands of such 
mines in the western States. 
(4) Many of these inactive or abandoned mines 
pose safety hazards to the public, and the drainage 
and runoff from such mines has damaged thousands 
of stream miles to the detriment of water quality, 
particularly in several western States. 
(5) The environmental cleanup of these inactive 
or abandoned mines is hampered by lack of funding 
and concerns about liability. In many cases, a re-
sponsible party for the mine site cannot be identified 
or the responsible party lacks the economic resources 
to respond to the adverse environmental effects of a
site. Federal and State agencies and Indian tribes 
are often unable to afford to make cleanup of these 
mine sites a high priority. Other parties have been 
reluctant to undertake remedial actions of such a 
mine site because of the possibility that they would 
be considered to have assumed liability with regard 
to the site. 
(6) It is in the national interest to facilitate the 
cleanup of inactive or abandoned mines through ap-
propriate legislation that reduces these obstacles. 
(c) PURPOSE.—The purpose of this Act is to facili-
tate cleanup of inactive and abandoned mine sites by es-
tablishing a source of funding for that purpose and by lim-
iting the potential liability of parties undertaking to carry 
out such cleanup. 
(d) SCOPE.—Nothing in this Act is intended to facili-
tate new mining activities or any reduction in liability as-
sociated with any current or new mining or processing ac-
tivities. 
TITLE I—FUNDING FOR 
ABANDONED MINE CLEANUPS 
SEC. 101. DEFINITIONS. 
In this title: 
(1) The term ‘‘gross proceeds’’ means the value 
of any extracted hardrock mineral that was—
(A) sold; 
(B) exchanged for any thing or service; 
(C) removed from the country in a form 
ready for use or sale; or 
(D) initially used in a manufacturing proc-
ess or in providing a service. 
(2) The term ‘‘net proceeds’’ means gross pro-
ceeds less the sum of the following deductions: 
(A) The actual cost of extracting the min-
eral. 
(B) The actual cost of transporting the 
mineral to the place or places of reduction, re-
fining, and sale. 
(C) The actual cost of reduction, refining, 
and sale. 
(D) The actual cost of marketing and de-
livering the mineral and the conversion of the 
mineral into money. 
(E) The actual cost of maintenance and re-
pairs of—
(i) all machinery, equipment, appa-
ratus, and facilities used in the mine; 
(ii) all milling, refining, smelting and 
reduction works, plants and facilities; and
(iii) all facilities and equipment for 
transportation. 
(F) The actual cost of fire insurance on 
such machinery, equipment, apparatus, works, 
plants, and facilities. 
(G) Depreciation of the original capitalized 
cost of such machinery, equipment, apparatus, 
works, plants, and facilities. 
(H) All money expended for premiums for 
industrial insurance, and the actual cost of hos-
pital and medical attention and accident bene-
fits and group insurance for all employees. 
(I) The actual cost of developmental work 
in or about the mine or upon a group of mines 
when operated as a unit. 
(J) All royalties and severance taxes paid 
to the Federal Government or State govern-
ments. 
(3) The term ‘‘hardrock minerals’’ means any 
mineral other than a mineral that would be subject 
to disposition under any of the following laws if lo-
cated on land subject to the general mining laws: 
(A) The Mineral Leasing Act (30 U.S.C. 
181 et seq.).
(B) The Geothermal Steam Act of 1970 
(30 U.S.C. 1001 et seq.). 
(C) The Act of July 31, 1947, commonly 
known as the Materials Act of 1947 (30 U.S.C. 
601 et seq.). 
(D) The Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.). 
(4) The term ‘‘Secretary’’ means the Secretary 
of the Interior. 
(5) The term ‘‘patented mining claim’’ means 
an interest in land which has been obtained pursu-
ant to sections 2325 and 2326 of the Revised Stat-
utes (30 U.S.C. 29 and 30) for vein or lode claims 
and sections 2329, 2330, 2331, and 2333 of the Re-
vised Statutes (30 U.S.C. 35, 36, and 37) for placer 
claims, or section 2337 of the Revised Statutes (30 
U.S.C. 42) for mill site claims. 
(6) The term ‘‘general mining laws’’ means 
those provisions of law that generally comprise chap-
ters 2, 12A, and 16, and sections 161 and 162, of 
title 30, United States Code. 
(7) The term ‘‘Fund’’ means the Abandoned 
Minerals Mine Reclamation Fund.
(c) PAYMENT.—The amount of all fees payable under 
this section for any calendar year shall be paid to the Sec-
retary within 60 days after the end of such year. 
(d) DEPOSIT OF REVENUES.—The Secretary shall 
deposit amounts received under subsection (c) in the 
Abandoned Minerals Mine Reclamation Fund. 
(e) RELATION TO STATE FEES.—Nothing in this Act 
shall be construed to require a reduction in, or otherwise 
affect, a similar fee provided for under State law. 
(f) REDUCTION OF FEES.—The Secretary shall re-
duce a fee required by this section by an amount equal 
to a royalty paid pursuant to an Act of Congress that pro-
vides for crediting to the Fund of royalties paid to the 
Secretary with respect to production of hardrock minerals. 
(g) EFFECTIVE DATE.—This section shall take effect 
with respect to hardrock minerals produced after Decem-
ber 31, 2002, except that subsection (f) shall take effect 
one year after the date of the enactment of the law de-
scribed in such subsection. 
SEC. 103. ABANDONED MINERALS MINE RECLAMATION 
FUND. 
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established in the 
Treasury of the United States an interest-bearing 
fund to be known as the Abandoned Minerals Mine
Reclamation Fund. The Fund shall be administered 
by the Secretary. 
(2) INVESTMENT.—The Secretary shall notify 
the Secretary of the Treasury as to what portion of 
the Fund is not, in the Secretary’s judgment, re-
quired to meet current withdrawals. The Secretary 
of the Treasury shall invest such portion of the 
Fund in public debt securities with maturities suit-
able for the needs of such Fund and bearing interest 
at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields 
on outstanding marketplace obligations of the 
United States of comparable maturities. The income 
on such investments shall be credited to, and form 
a part of, the Fund. 
(3) ADMINISTRATION.—The Secretary shall use 
the existing Federal program for abandoned mine 
reclamation authorized by title IV of the Surface 
Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1231 et seq.) to administer the Fund and for 
making expenditures from the Fund. 
(b) USE AND OBJECTIVES OF THE FUND.—
(1) IN GENERAL.—Amounts in the Fund shall 
be available to the Secretary, without further appro-
priation and until expended, to perform or support
reclamation and restoration activities affecting eligi-
ble areas, including any of the following: 
(A) Reclamation and restoration of aban-
doned surface mined areas. 
(B) Reclamation and restoration of aban-
doned milling and processing areas. 
(C) Sealing, filling, and grading abandoned 
deep mine entries. 
(D) Planting of land adversely affected by 
past mining to prevent erosion and sedimenta-
tion. 
(E) Prevention, abatement, treatment, and 
control of water pollution created by abandoned 
mine drainage. 
(F) Control of surface subsidence due to 
abandoned deep mines. 
(2) METHODS OF USE.—Subject to the special 
disbursement 
requirements 
of 
subsection 
(g), 
amounts in the Fund may be expended directly by 
the Secretary or by making grants to approved State 
reclamation programs, as described in subsection 
(d). The Secretary shall consult and coordinate with 
eligible States on those projects funded directly or in 
conjunction with other Federal agencies.
(c) ELIGIBLE
AREAS.—Reclamation expenditures 
under this section shall be made only in States described 
in subsection (e) and shall be used only for the reclamation 
of lands (and related waters)—
(1) that were, but are no longer, actively mined 
for hardrock minerals (and not in temporary shut-
down) as of the date of the enactment of this Act; 
(2) that are not identified for remedial action 
under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.) and for which there is no identifiable 
owner or operator for the mine or mine facilities; 
(3) that are not designated for remedial action 
pursuant to the Uranium Mill Tailings Radiation 
Control Act of 1978 (42 U.S.C. 7901 et seq.); and 
(4) for which no evidence exists that the lands 
contain minerals that economically could be ex-
tracted through the mining, reprocessing, or re-
mining of the lands. 
(d) ELIGIBLE STATES.—
(1) ELIGIBILITY
REQUIREMENTS.—Except as 
provided in paragraph (2), expenditures from the 
Fund shall be made only for reclamation of lands 
and water in States that—
(A) contain lands subject to the general 
mining laws; and 
(B) have completed a statewide inventory 
of abandoned hardrock sites within the State el-
igible to receive funding under this Act. 
(2) INVENTORY FUNDING.—A State that con-
tains lands subject to the general mining laws, but 
that has not completed a statewide inventory as de-
scribed in paragraph (1)(B), may receive grants not 
exceeding $2,000,000 annually to assist in the com-
pletion of the required inventory. 
(3) APPROVED
STATE
RECLAMATION
PRO-
GRAMS.—In the case of a State described in para-
graph (1), the Secretary may make expenditures 
from the Fund to the State for a State reclamation 
program that meets the requirements of section 405 
of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1235) and is applicable to 
hardrock mining. 
(4) STATES WITHOUT APPROVED PROGRAMS.—
If a State described in paragraph (1) does not have 
an approved State program under section 405 of the 
Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1235) that is applicable to 
hardrock mining, the Secretary may provide funds to
the State after the Secretary determines that the 
State has authority to implement a hardrock aban-
doned mine land program, and that State authority, 
at a minimum, includes the establishment of a State 
reclamation plan for abandoned hardrock mines and 
clear authorization for the administration and ex-
penditure of funds for eligible areas described in 
subsection (c). 
(e) PRIORITIES.—Expenditures from the Fund shall 
reflect the following priorities, in the following order of 
priority: 
(1) EXTREME
DANGER.—Protection of public 
health, safety, general welfare, and property from 
extreme danger of adverse effects of past mining ac-
tivity. 
(2) ADVERSE EFFECTS.—Protection of public 
health, safety, general welfare, and property from 
the adverse effects of past mineral activity, including 
the restoration of land, water, and fish and wildlife 
resources degraded by the adverse effects of past 
mining activity. 
(f) ELIGIBLE REMEDIATING PARTIES.—The Sec-
retary may authorize expenditures from the Fund for re-
mediation activities conducted by a Federal agency or by 
remediating parties who are permittees under the aban-