I
104TH CONGRESS
1ST SESSION
H. R. 721
To establish fair market value pricing of Federal natural assets, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 27, 1995
Mr. MILLER of California (for himself, Mr. VENTO, Mr. TORRES, Mr.
HINCHEY, Mr. GEJDENSON, Mr. RAHALL, Mr. MEEHAN, Mr. YATES,
Mrs. MALONEY, Ms. SLAUGHTER, Mr. NADLER, Mr. STARK, Mr. FRANK
of Massachusetts, Ms. ROYBAL-ALLARD, Mr. GOSS, Mr. ABERCROMBIE,
Mr. ACKERMAN, and Mr. SANDERS) introduced the following bill; which
was referred to the Committee on Resources and, in addition, to the
Committees on Ways and Means, Agriculture, and Government Reform
and Oversight, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To establish fair market value pricing of Federal natural
assets, 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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Public Resources Deficit Reduction Act of 1995’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Fair market value for resource disposal.
Sec. 102. Fees from program beneficiaries.
Sec. 103. Revenues from sale, lease, and transfer of assets.
TITLE II—REVENUE FROM MINING CLAIMS
Sec. 201. Definitions.
Sec. 202. Mining claim maintenance requirements.
Sec. 203. Royalty.
Sec. 204. Severance tax.
Sec. 205. Fund for abandoned locatable minerals mine reclamation.
Sec. 206. Limitation on patent issuance.
Sec. 207. Purchasing power adjustment.
Sec. 208. Savings clause.
Sec. 209. Effective date.
TITLE III—HELIUM
Sec. 301. Amendment of helium act.
Sec. 302. Authority of Secretary.
Sec. 303. Sale of crude helium.
Sec. 304. Elimination of stockpile.
Sec. 305. Repeal of authority to borrow.
TITLE IV—USE OR DISPOSAL OF FEDERAL NATURAL RESOURCES
Sec. 401. Annual domestic livestock grazing fee.
Sec. 402. Elimination of below-cost timber sales of timber from National Forest
System lands.
Sec. 403. Timberland suitability.
Sec. 404. Cost of water used to produce surplus crops.
Sec. 405. Reduction in maximum amount of payments under agricultural as-
sistance programs to reflect receipt of Federal irrigation water.
Sec. 406. Off budget expenditures.
Sec. 407. Deposit of Taylor Grazing Act receipts in Treasury.
Sec. 408. Repeal of livestock feed assistance program.
Sec. 409. Communication permits.
Sec. 410. Oil and gas rentals.
TITLE V—NATIONAL PARK CONCESSIONS
Sec. 501. Findings and policy.
Sec. 502. Definitions.
Sec. 503. Repeal of Concessions Policy Act of 1965.
Sec. 504. Concession contracts and other authorizations.
Sec. 505. Competitive selection process.
Sec. 506. Franchise fees.
Sec. 507. Use of franchise fees.
Sec. 508. Duration of contract.
Sec. 509. Transfer of contract.
Sec. 510. Protection of concessioner investment.
Sec. 511. Rates and charges to public.
Sec. 512. Concessioner performance evaluation.
Sec. 513. Recordkeeping requirements.
Sec. 514. Exemption from certain lease requirements.
Sec. 515. No effect on ANILCA provisions.
Sec. 516. Implementation.
Sec. 517. Authorization of appropriations.
TITLE I—GENERAL PROVISIONS
SEC. 101. FAIR MARKET VALUE FOR RESOURCE DISPOSAL.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no timber, minerals, forage, or other natural
resource owned by the United States, no Federally owned
water, and no hydroelectric energy generated at a Federal
facility may be sold, leased, or otherwise disposed of by
any department, agency, or instrumentality of the United
States for an amount less than fair market value, as deter-
mined by such department, agency, or instrumentality.
(b) EXISTING CONTRACTS, LEASES, ETC.—
(1) EXISTING ARRANGEMENTS.—The provisions
of subsection (a) shall not apply to any existing con-
tract, lease, or other binding arrangement entered
into before the date of the enactment of this Act un-
less such contract, lease or other arrangement is re-
newed or extended after such date of enactment.
(2) ARRANGEMENTS ENTERED INTO IN 5-YEAR
PERIOD.—The provisions of subsection (a) shall take
effect on the date 5 years after the date of enact-
ment of this Act in the case of any contract, lease,
or other binding arrangement entered into or re-
newed or extended after such date but before the
date 5 years after such date.
(3) ARRANGEMENTS ENTERED INTO AFTER 5
YEARS.—The provisions of subsection (a) shall apply
immediately to all contracts, leases, or other binding
arrangements entered into or renewed or extended
after the date 5 years after the enactment of this
Act.
(c) WAIVER.—The President may waive the require-
ments of subsection (a) whenever the President deter-
mines that such waiver is in the national interest. The
President shall submit a notice to Congress containing an
explanation of the reasons for any such determination
within 60 days after the date of the determination.
SEC. 102. FEES FROM PROGRAM BENEFICIARIES.
(a) GENERAL AUTHORITY.—The Secretary of the In-
terior and the Secretary of Agriculture are each author-
ized to establish and collect from persons subject to pro-
grams administered by each such Secretary such user fees
as may be necessary to reimburse the United States for
the expenses incurred in administering such programs.
The aggregate amount of fees that may be assessed and
collected under this section by each such Secretary in any
fiscal year from persons subject to any such program shall
not exceed the aggregate amount of expenses incurred in
administering such program in such fiscal year.
(b) EFFECTIVE DATE; OIL AND GAS LEASE TRANS-
FERS.—The Secretary of the Interior and the Secretary
of Agriculture may, by rule, establish the applicable effec-
tive date of any fee to be imposed under this section, ex-
cept that fees shall be established and collected under this
section from each person receiving a transfer of a Federal
onshore oil and gas lease after the date of the enactment
of this section.
SEC. 103. REVENUES FROM SALE, LEASE, AND TRANSFER
OF ASSETS.
(a) IN GENERAL.—Section 1105(a) of chapter 11 of
title 31, United States Code, is amended by inserting at
the end the following new paragraph:
‘‘(28) a separate statement of—
‘‘(A) projected revenues during the fiscal
year for which the budget is submitted from the
anticipated sale, lease, or transfer of any phys-
ical asset; and
‘‘(B) the estimated price at which this
asset or a comparable asset would be sold in an
arms length transaction in the private sector;
asset by asset and aggregated by major functional
category.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective for fiscal year 1997
and shall be fully reflected in the fiscal year 1997 budget
submitted by the President in February 1996 as required
by section 1105(a) of title 31, United States Code.
TITLE II—REVENUE FROM
MINING CLAIMS
SEC. 201. DEFINITIONS.
(a) DEFINITIONS.—As used in this title:
(1) The term ‘‘locatable mineral’’ means any
mineral not subject to disposition under any of the
following:
(A) the Mineral Leasing Act (30 U.S.C.
181 and following);
(B) the Geothermal Steam Act of 1970
(30 U.S.C. 100 and following);
(C) the Act of July 31, 1947, commonly
known as the Materials Act of 1947 (30 U.S.C.
601 and following); or
(D) the Mineral Leasing for Acquired
Lands Act (30 U.S.C. 351 and following).
(2) The term ‘‘mineral activities’’ means any
activity for, related to or incidental to mineral explo-
ration, mining, beneficiation and processing activi-
ties for any locatable mineral, including access.
When used with respect to this term—
(A) The term ‘‘exploration’’ means those
techniques employed to locate the presence of a
locatable mineral deposit and to establish its
nature, position, size, shape, grade and value.
(B) The term ‘‘mining’’ means the proc-
esses employed for the extraction of a locatable
mineral from the earth.
(C) The term ‘‘beneficiation’’ means the
crushing and grinding of locatable mineral ore
and such processes as are employed to free the
mineral from other constituents, including but
not necessarily limited to, physical and chemical
separation techniques.
(D) The term ‘‘processing’’ means proc-
esses downstream of beneficiation employed to
prepare locatable mineral ore into the final
marketable product, including but not limited
to, smelting and electrolytic refining.
(3) The term ‘‘mining claim’’ means a claim for
the purposes of mineral activities.
(4) The term ‘‘Secretary’’ means, unless other-
wise provided in this title, the Secretary of the Inte-
rior acting through the Director of the Minerals
Management Service.
SEC. 202. MINING CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL.—The holder of each mining claim
located on lands open to location shall pay to the Secretary
an annual claim maintenance fee of $100 per claim per
calendar year.
(b) TIME OF PAYMENT.—The claim maintenance fee
payable pursuant to subsection (a) for any year shall be
paid on or before August 31 of each year, except that for
the initial calendar year in which the location is made,
the locator shall pay the initial claim maintenance fee at
the time the location notice is recorded with the Bureau
of Land Management.
(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) CLAIM MAINTENANCE FEES PAYABLE UNDER
1993 ACT.—The claim maintenance fees payable under
this section for any period with respect to any claim shall
be reduced by the amount of the claim maintenance fees
paid under section 10101 of the Omnibus Budget Rec-
onciliation Act of 1993 with respect to that claim and with
respect to the same period.
(e) WAIVER.—(1) The claim maintenance fee re-
quired under this section may be waived for a claim holder
who certifies in writing to the Secretary that on the date
the payment was due, the claim holder and all related par-
ties held not more than 10 mining claims on lands open
to location. Such certification shall be made on or before
the date on which payment is due.
(2) For purposes of paragraph (1), with respect to
any claim holder, the term ‘‘related party’’ means each
of the following:
(A) The spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the claim holder.
(B) Any affiliate of the claim holder.
(f) CO-OWNERSHIP.—Upon the failure of any one or
more of several co-owners to contribute such co-owner or
owners’ portion of the fee under this section, any co-owner
who has paid such fee may, after the payment due date,
give the delinquent co-owner or owners notice of such fail-
ure 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-owner fails or refuses
to contribute his portion, his interest in the claim shall
become the property of the co-owners who have paid the
required fee.
SEC. 203. ROYALTY.
(a) RESERVATION OF ROYALTY.—Production of all
locatable minerals from any mining claim located under
the general mining laws, or mineral concentrates or prod-
ucts derived from locatable minerals from any mining
claim located under the general mining laws, as the case
may be, shall be subject to a royalty of 8 percent of the
gross income from such production. The claimholder and
any operator to whom the claimholder has assigned the
obligation to make royalty payments under the claim and
any person who controls such claimholder or operator shall
be jointly and severally liable for payment of such royal-
ties.
(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 as 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 which may be required by this section shall be
made available for inspection and duplication by such offi-
cer or employee or State.
(2) Records required by the Secretary under this sec-
tion shall be maintained for 6 years after cessation of all
mining activity at the claim concerned unless the Sec-
retary notifies the operator that he or she 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 operator of the obligation to maintain such records.
(d) AUDITS.—The Secretary is authorized to conduct
such audits of all claim holders, operators, transporters,
purchasers, processors, or other persons directly or indi-
rectly involved in the production or sales of minerals cov-
ered by this title, as the Secretary deems necessary for
the purposes of ensuring compliance with the require-
ments 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 (4)(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 the general mining laws.
(3) Trade secrets, proprietary, and other confidential
information shall be made available by the Secretary pur-
suant to a cooperative agreement under this subsection to
the Secretary of Agriculture upon request only if—
(A) the Secretary of Agriculture consents in
writing to restrict the dissemination of the informa-
tion to those who are directly involved in an audit
or investigation under this section and who have a
need to know;
(B) the Secretary of Agriculture accepts liabil-
ity for wrongful disclosure; and
(C) the Secretary of Agriculture demonstrates
that such information is essential to the conduct of
an audit or investigation under this subsection.
(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 under payments 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
underpayment, 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 may assess a penalty of 10 percent of the
amount of that underreporting.
(3) If there is a substantial underreporting of royalty
owed on production from a claim for any production
month by any person responsible for paying the royalty,
the Secretary may assess an additional penalty of 10 per-
cent of the amount of that underreporting.
(4) For the purposes of this subsection, the term
‘‘underreporting’’ means the difference between the roy-
alty on the value of the production which should have been
reported and the royalty on the value of the production
which was reported, if the value which should have been
reported is greater than the value which was reported. An
underreporting constitutes a ‘‘substantial underreporting’’
if such difference exceeds 10 percent of the royalty on the
value of production which should have been reported.
(5) The Secretary shall not impose the assessment
provided in paragraphs (2) or (3) 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.
(6) The Secretary shall waive any portion of an as-
sessment under paragraph (2) or (3) of this subsection
attributable to that portion of the underreporting for
which the person responsible for paying the royalty dem-
onstrates 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, or
(B) such person had substantial authority for
reporting royalty on the value of the production on
the basis on which it was reported, or
(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.
(7) All penalties collected under this subsection shall
be deposited in the Treasury.
(g) 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 or converted under
this section 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 sec-
tion.
(h) EXCEPTION.—No royalty shall be payable under
subsection (a) with respect to minerals processed at a fa-
cility by the same person or entity which extracted the
minerals if an urban development action grant has been
made under section 119 of the Housing and Community
Development Act of 1974 with respect to any portion of
such facility.
(i) 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.
SEC. 204. SEVERANCE TAX.
(a) SEVERANCE TAX ON MINERALS.—Chapter 36 of
the Internal Revenue Code of 1986 (relating to certain
other excise taxes) is amended by adding at the end the
following new subchapter:
‘‘Subchapter G—Tax on Severance of
Locatable Minerals
‘‘SEC. 4500. TAX ON SEVERANCE OF LOCATABLE MINERALS.
‘‘(a) IN GENERAL.—There is hereby imposed a tax
on gross income resulting from the severance of any
locatable mineral, or mineral concentrates or products,
from a mine or other natural deposit located within the
United States.
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) shall be 8 percent of the gross
income derived from the locatable mineral, or from the
mineral concentrates or products, severed as described in
such subsection.
‘‘(c) EXCEPTION IF ROYALTY IMPOSED.—Subsection
(a) shall not apply to gross income with respect to which
a royalty is imposed by section 203 of the Public Re-
sources Deficit Reduction Act of 1995.’’.
(b) CONFORMING AMENDMENT.—The table of sub-
chapters for chapter 36 of such Code (relating to certain
other excise taxes) is amended by adding at the end the
following new item:
‘‘SUBCHAPTER G. Tax on severance of locatable minerals.’’.
SEC. 205. FUND FOR ABANDONED LOCATABLE MINERALS
MINE RECLAMATION.
(a) ESTABLISHMENT OF FUND.—(1) There is estab-
lished on the books of the Treasury of the United States
a trust fund to be known as the Abandoned Locatable
Minerals Mine Reclamation Fund (hereinafter in this title
referred to as the ‘Fund’). The Fund shall be administered
by the Secretary acting through the Director of the Office
of Surface Mining Reclamation and Enforcement.
(2) The Secretary shall notify the Secretary of the
Treasury as to what portion of the Fund is not, in the
Secretary’s judgment, required to meet current withdraw-
als. The Secretary of the Treasury shall invest such por-
tion of the Fund in public debt securities with maturities
suitable for the needs of such Fund and bearing interest
at rates determined by the Secretary of the Treasury, tak-
ing into consideration current market yields on outstand-
ing marketplace obligations of the United States of com-
parable maturities. The income on such investments shall
be credited to, and form a part of, the Fund.
(b) AMOUNTS.—The following amounts shall be cred-
ited to the Fund:
(1) All moneys received from royalties under
section 203.
(2) All taxes collected under section 4500 of the
Internal Revenue Code of 1986.
(3) All donations by persons, corporations, as-
sociations, and foundations for the purposes of this
section.
(c) USE AND OBJECTIVES OF THE FUND.—The Sec-
retary is authorized, subject to appropriations, to use
moneys in the Fund for the reclamation and restoration
of land and water resources adversely affected by past
mineral activities on lands the legal and beneficial title to
which resides in the United States, land within the exte-
rior boundary of any National Forest System unit.
(d) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—
The provisions of section 411(d) of the Surface Mining
Control and Reclamation Act of 1977 shall apply to ex-
penditures made from the Fund established under this
section.
(e) FUND EXPENDITURES.—Moneys available from
the Fund may be expended for the purposes specified in
subsection (d) directly by the Director of the Office of Sur-
face Mining Reclamation and Enforcement. The Director
may also make such money available for such purposes
to the Director of the Bureau of Land Management, the
Chief of the United States Forest Service, the Director
of the National Park Service, Director of the United
States Fish and Wildlife Service, to any other agency of
the United States, to an Indian tribe, or to any public
entity that volunteers to develop and implement, and that
has the ability to carry out, all or a significant portion
of a reclamation program under this title.
(f) AUTHORIZATION OF APPROPRIATIONS.—Amounts
credited to the Fund are authorized to be appropriated
for the purpose of this section without fiscal year limita-
tion.
SEC. 206. LIMITATION ON PATENT ISSUANCE.
(a) MINING CLAIMS.—After the date of enactment of
this Act, no patent shall be issued by the United States
for any mining claim located under the general mining
laws unless the Secretary determines that, for the claim
concerned—
(1) a patent application was filed with the Sec-
retary on or before January 27, 1995; and
(2) all requirements established under sections
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.
If the Secretary makes the determinations referred to in
paragraphs (1) and (2) 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) MILL SITES.—After the date of enactment of this
Act, no patent shall be issued by the United States for
any mill site claim located under the general mining laws
unless the Secretary determines that for the mill site con-
cerned—
(1) a patent application for such land was filed
with the Secretary on or before January 27, 1995;
and
(2) all requirements applicable to such patent
application were fully complied with by that date.
If the Secretary makes the determinations referred to in
paragraphs (1) and (2) for any mill site 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. 207. PURCHASING POWER ADJUSTMENT.
The Secretary shall adjust all dollar amounts estab-
lished in this title for changes in the purchasing power
of the dollar every 10 years following the date of enact-
ment of this Act, employing the Consumer Price Index for
all-urban consumers published by the Department of
Labor as the basis for adjustment, and rounding accord-
ing to the adjustment process of conditions of the Federal
Civil Penalties Inflation Adjustment Act of 1990 (104
Stat. 890).
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—(1) The Secretary may enter into
agreements with private parties for the recovery and dis-
posal of helium on Federal lands upon such terms and
conditions as he deems fair, reasonable and necessary. The
Secretary may grant leasehold rights to any such helium.
The Secretary may not enter into any agreement by which
the Secretary sells such helium other than to a private
party with whom the Secretary has an agreement for re-
covery and disposal of helium. Such agreements may be
subject to such rules and regulations as may be prescribed
by the Secretary.
‘‘(2) Any agreement under this subsection shall be
subject to the existing rights of any affected Federal oil
and gas lessee. Each such agreement (and any extension
or renewal thereof) shall contain such terms and condi-
tions as deemed appropriate by the Secretary.
‘‘(3) This subsection shall not in any manner affect
or diminish the rights and obligations of the Secretary and
private parties under agreements to dispose of helium pro-
duced from Federal lands in existence at the enactment
of the Public Resources Deficit Reduction Act of 1995 ex-
cept to the extent that such agreements are renewed or
extended after such date.
‘‘(b) STORAGE, TRANSPORTATION AND SALE.—The
Secretary is authorized to store, transport, and sell helium
only in accordance with this Act.
‘‘(c) MONITORING AND REPORTING.—The Secretary
is authorized to monitor helium production and helium re-
serves in the United States and to periodically prepare re-
ports regarding the amounts of helium produced and the
quantity of crude helium in storage in the United States.
‘‘SEC. 4. STORAGE AND TRANSPORTATION OF CRUDE HE-
LIUM.
‘‘(a) STORAGE
AND TRANSPORTATION.—The Sec-
retary is authorized to store and transport crude helium
and to maintain and operate existing crude helium storage
at the Bureau of Mines Cliffside Field, together with relat-
ed helium transportation and withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Effective one year after the date of enact-
ment of the Public Resources Deficit Reduction Act of
1995, the Secretary shall cease producing, refining and
marketing refined helium and shall cease carrying out all
other activities relating to helium which the Secretary was
authorized to carry out under this Act before the date of
enactment of the Public Resources Deficit Reduction Act
of 1995, except those activities described in subsection (a).
‘‘(c) DISPOSAL OF FACILITIES.—(1) Within one year
after the date of enactment of the Public Resources Defi-
cit Reduction Act of 1995, the Secretary shall dispose of
all facilities, equipment, and other real and personal prop-
erty, together with all interests therein, held by the United
States for the purpose of producing, refining and market-
ing refined helium. The disposal of such property shall be
in accordance with the provisions of law governing the dis-
posal of excess or surplus properties of the United States.
‘‘(2) All proceeds accruing to the United States by
reason of the sale or other disposal of such property shall
be treated as moneys received under this chapter for pur-
poses of section 6(f). All costs associated with such sale
and disposal (including costs associated with termination
of personnel) and with the cessation of activities under
subsection (b) shall be paid from amounts available in the
helium production fund established under section 6(f).
‘‘(3) Paragraph (1) shall not apply to any facilities,
equipment, or other real or personal property, or any in-
terest therein, necessary for the storage and transpor-
tation of crude helium.
‘‘(d) EXISTING CONTRACTS.—All contracts which
were entered into by any person with the Secretary for
the purchase by such person from the Secretary of refined
helium and which are in effect on the date of the enact-
ment of the Public Resources Deficit Reduction Act of
1995 shall remain in force and effect until the date on
which the facilities referred to in subsection (c) are dis-
posed of. Any costs associated with the termination of
such contracts shall be paid from the helium production
fund established under section 6(f).
‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH-
DRAWAL.
‘‘Whenever the Secretary provides helium storage,
withdrawal, or transportation services to any person, the
Secretary is authorized and directed to impose fees on
such person to reimburse the Secretary for the full costs
of providing such storage, transportation, and withdrawal.
All such fees received by the Secretary shall be treated
as moneys received under this Act for purposes of section
6(f).’’.
SEC. 303. SALE OF CRUDE HELIUM.
Section 6 is amended as follows:
(1) Subsection (a) is amended by striking out
‘‘from the Secretary’’ and inserting ‘‘from persons
who have entered into enforceable contracts to pur-
chase an equivalent amount of crude helium from
the Secretary’’.
(2) Subsection (b) is amended by inserting
‘‘crude’’ before ‘‘helium’’ and by adding the follow-
ing at the end thereof: ‘‘Except as may be required
by reason of subsection (a), sales of crude helium
under this section shall be in amounts as the Sec-
retary determines, in consultation with the helium
industry, necessary to carry out this subsection with
minimum market disruption.
(3) Subsection (c) is amended by inserting
‘‘crude’’ before ‘‘helium’’ after the words ‘‘Sales of’’
and by striking ‘‘together with interest as provided
in subsection’’ and all that follows down through the
period at the end of such subsection and inserting
the following:
‘‘all funds required to be repaid to the United States as
of October 1, 1994 under this section (hereinafter referred
to as ‘repayable amounts’). The price at which crude he-
lium is sold by the Secretary shall not be less than the
amount determined by the Secretary as follows:
‘‘(1) Divide the outstanding amount of such re-
payable amounts by the volume (in mcf) of crude he-
lium owned by the United States and stored in the
Bureau of Mines Cliffside Field at the time of the
sale concerned.
‘‘(2) Adjust the amount determined under para-
graph (1) by the Consumer Price Index for years be-
ginning after December 31, 1994.’’.
(4) Subsection (d) is amended to read as fol-
lows:
‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON
FEDERAL LANDS.—All moneys received by the Secretary
from the sale or disposition of helium on Federal lands
shall be paid to the Treasury and credited against the
amounts required to be repaid to the Treasury under sub-
section (c) of this section.’’.
(5) Subsection (e) is repealed.
(6) Subsection (f) is amended by inserting
‘‘(1)’’ after ‘‘(f)’’ and by adding the following at the
end thereof:
‘‘(2) Within 7 days after the commencement of each
fiscal year after the disposal of the facilities referred to
in section 4(c), all amounts in such fund in excess of
$2,000,000 (or such lesser sum as the Secretary deems
necessary to carry out this Act during such fiscal year)
shall be paid to the Treasury and credited as provided in
paragraph (1). Upon repayment of all amounts referred
to in subsection (c), the fund established under this sec-
tion shall be terminated and all moneys received under this
Act shall be deposited in the Treasury as General Reve-
nues.’’.
SEC. 304. ELIMINATION OF STOCKPILE.
Section 8 is amended to read as follows:
‘‘SEC. 8. ELIMINATION OF STOCKPILE.
‘‘(a) REVIEW OF RESERVES.—The Secretary shall re-
view annually the known helium reserves in the United
States and make a determination as to the expected life
of the domestic helium reserves (other than federally
owned helium stored at the Cliffside Reservoir) at that
time.
‘‘(b) Sales.—Not later than January 1, 2005, the
Secretary shall commence making sales of crude helium
from helium reserves owned by the United States in such
amounts as may be necessary to dispose of all such helium
reserves in excess of 600 million cubic feet (mcf) by Janu-
ary 1, 2015. The sales shall be at such times and in such
lots as the Secretary determines, in consultation with the
helium industry, to be necessary to carry out this sub-
section with minimum market disruption. The price for
all such sales, as determined by the Secretary in consulta-
tion with the helium industry, shall be such as will ensure
repayment of the amounts required to be repaid to the
Treasury under section 6(c).
‘‘(c) DISCOVERY OF ADDITIONAL RESERVES.—The
discovery of additional helium reserves shall not affect the
duty of the Secretary to make sales of helium as provided
in subsection (b), as the case may be.’’.
SEC. 305. REPEAL OF AUTHORITY TO BORROW.
Sections 12 and 15 are repealed.
TITLE IV—USE OR DISPOSAL OF
FEDERAL NATURAL RESOURCES
SEC. 401. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.
Section 401 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1751) is hereby amended
by adding at the end the following new subsections:
‘‘(c)(1) Notwithstanding any other provision of law,
the Secretary of Agriculture, with respect to National For-
est lands in the 16 contiguous Western States (except Na-
tional Grasslands) administered by the United States For-
est Service where domestic livestock grazing is permitted
under applicable law, and the Secretary of the Interior
with respect to public domain lands administered by the
Bureau of Land Management where domestic livestock
grazing is permitted under applicable law, shall establish
beginning with the grazing season which commences on
March 1, 1996, an annual domestic livestock grazing fee
equal to fair market value: Provided, That the fee charged
for any given year shall not increase nor decrease by more
than 33.3 percent from the previous year’s grazing fee.
‘‘(2)(A) For purposes of this subsection, the term
‘fair market value’ is defined as follows:
Fair Market Value=
Appraised Base Value×Forage Value Index
100
‘‘(B) For the purposes of subparagraph (A)—
‘‘(i) the term ‘Forage Value Index’ means the
Forage Value Index (FVI) computed annually by the
Economic Research Service, United States Depart-
ment of Agriculture, and set with the 1996 FVI
equal to 100; and
‘‘(ii) the term ‘Appraised Base Value’ means
the 1983 Appraisal Value conclusions for mature
cattle and horses (expressed in dollars per head or
per month), as determined in the 1986 report pre-
pared jointly by the Secretary of Agriculture and the
Secretary of the Interior entitled ‘Grazing Fee Re-
view and Evaluation’, dated February 1986, on a
westwide basis using the lowest appraised value of
the pricing areas adjusted for advanced payment
and indexed to 1996.
‘‘(3) Executive Order No. 12548, dated February 14,
1986, shall not apply to grazing fees established pursuant
to this Act.
‘‘(d) The grazing advisory boards established pursu-
ant to Secretarial action, notice of which was published
in the Federal Register on May 14, 1986 (51 Fed. Reg.
17874), are hereby abolished, and the advisory functions
exercised by such boards, shall, after the date of enact-
ment of this sentence, be exercised only by the appropriate
councils established under this section.
‘‘(e) Funds appropriated pursuant to section 5 of the
Public Rangelands Improvement Act of 1978 (43 U.S.C.
1904) or any other provision of law related to disposition
of the Federal share of receipts from fees for grazing on
public domain lands or National Forest lands in the 16
contiguous western States shall be used for restoration
and enhancement of fish and wildlife habitat, for restora-
tion and improved management of riparian areas, and for
implementation and enforcement of applicable land man-
agement plans, allotment plans, and regulations regarding
the use of such lands for domestic livestock grazing. Such
funds shall be distributed as the Secretary concerned
deems advisable after consultation and coordination with
the advisory councils established pursuant to section 309
of this Act and other interested parties.’’.
SEC. 402. ELIMINATION OF BELOW-COST TIMBER SALES OF
TIMBER FROM NATIONAL FOREST SYSTEM
LANDS.
(a) IN GENERAL.—The National Forest Management
Act of 1976 is amended by inserting after section 14 (16
U.S.C. 472a) the following new section:
‘‘SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES
FROM NATIONAL FOREST SYSTEM LANDS.
‘‘(a) REQUIREMENT THAT SALE REVENUES EXCEED
COSTS.—On and after October 1, 2001, in appraising tim-
ber and setting a minimum bid for trees, portions of trees,
or forest products located on National Forest System
lands proposed for sale under section 14 or other provision
of law, the Secretary of Agriculture shall ensure that the
estimated cash returns to the United States Treasury
from each sale exceed the estimated costs to be incurred
by the Federal Government in preparation or as a result
of that sale.
‘‘(b) COSTS TO BE CONSIDERED.—For purposes of
estimating under this section the costs to be incurred by
the Federal Government from each timber sale, the Sec-
retary shall assign to the sale the following costs:
‘‘(1) The actual appropriated expenses for sale
preparation and harvest administration incurred or
to be incurred by the Federal Government from the
sale and the payments to counties to be made as a
result of the sale.
‘‘(2) A portion of the annual timber resource
planning costs, silvicultural examination costs, other
resource support costs, road design and construction
costs, road maintenance costs, transportation plan-
ning costs, appropriated reforestation costs, timber
stand improvement costs, forest genetics costs, gen-
eral administrative costs (including administrative
costs of the national and regional offices of the For-
est Service), and facilities construction costs of the
Federal Government directly or indirectly related to
the timber harvest program conducted on National
Forest System lands.
‘‘(c) METHOD OF ALLOCATING COSTS.—The Sec-
retary shall allocate the costs referred to in subsection
(b)(2) to each unit of the National Forest System, and
each proposed timber sale in such unit, on the basis of
harvest volume.
‘‘(d) TRANSITIONAL REQUIREMENTS.—To ensure the
elimination of all below-cost timber sales by the date speci-
fied in subsection (a), the Secretary shall progressively re-
duce the number and size of below-cost timber sales on
National Forest System lands as follows:
‘‘(1) In fiscal years 1996, 1997, and 1998, the
quantity of timber sold in below-cost timber sales on
National Forest System lands shall not exceed 75
percent of the quantity of timber sold in such sales
in the preceding fiscal year.
‘‘(2) In fiscal year 1999, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 65 percent of the
quantity of timber sold in such sales in fiscal year
1998.
‘‘(3) In fiscal year 2000, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 50 percent of the
quantity of timber sold in such sales in the fiscal
year 1999.
‘‘(e) BELOW-COST TIMBER SALE.—For purposes of
this section, the term ‘below-cost timber sale’ means a sale
of timber in which the costs to be incurred by the Federal
Government exceed the cash returns to the United States
Treasury.’’.
(b) FINDINGS.—Section 2 of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1600) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) the practice of selling timber from Na-
tional Forest System lands for less than the cost to
the Federal Government of growing the timber and
preparing the timber for sale is not in the best inter-
ests of the United States, and such below-cost sales
should be eliminated in an orderly manner to achieve
a more economically and environmentally sound tim-
ber program for the National Forest System.’’.
SEC. 403. TIMBERLAND SUITABILITY.
Section 6(k) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604(k)) is
amended to read as follows:
‘‘(k) DETERMINATION OF SUITABILITY OF LANDS
FOR TIMBER PRODUCTION.—
‘‘(1) DETERMINATION REQUIRED.—In revising
land management plans developed pursuant to this
section, the Secretary shall identify lands within the
management area that are not suited for timber pro-
duction based on physical, economic, or other rel-
evant factors. The Secretary shall review the identi-
fications made under this paragraph during each re-
vision of the forest plan.
‘‘(2) 
EVIDENCE
OF
ECONOMIC
UNSUITABILITY.—The Secretary shall identify lands
as economically unsuitable for timber production
under paragraph (1) if—
‘‘(A) the expected cash returns to the
United States Treasury that would result from
the sale of standing timber on the lands do not
exceed the expected costs that would be in-
curred by the Federal Government in prepara-
tion or as a result of such sales; or
‘‘(B) the expected cash returns to the
United States Treasury that would result from
the sale of subsequent timber stands on the
lands do not exceed the expected costs that
would be incurred by the Federal Government
in preparation or as a result of such sales.
‘‘(3) COSTS TO BE CONSIDERED.—For purposes
of estimating under paragraph (2) the costs to be in-
curred by the Federal Government from timber sales
conducted on the lands being reviewed, the Secretary
shall assign to sales on such lands the following
costs:
‘‘(A) The appropriated expenses for sale
preparation and harvest administration that
would be incurred by the Federal Government
from such sales and the payments to counties
that would be made as a result of such sales.
‘‘(B) A portion of the annual timber re-
source planning costs, silvicultural examination
costs, other resource support costs, road design
and construction costs, road maintenance costs,
transportation planning costs, appropriated re-
forestation costs, timber stand improvement
costs, forest genetics costs, general administra-
tive costs (including administrative costs of the
national and regional offices of the Forest Serv-
ice), and facilities construction costs of the Fed-
eral Government directly or indirectly related to
the timber harvest program conducted on Na-
tional Forest System lands.
‘‘(4) METHOD
OF
ALLOCATING
COSTS.—The
Secretary shall allocate the costs referred to in para-
graph (3)(B) to each unit of the National Forest
System on the basis of harvest volume.
‘‘(5) PROHIBITION ON TIMBER HARVESTS ON
UNSUITABLE LANDS.—In the case of lands identified
under paragraph (1) as unsuitable for timber pro-
duction, no timber harvesting shall occur on such
lands for a period of 10 years or the life of the plan,
whichever is greater.
‘‘(6) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) The term ‘standing timber’ means an
existing stand of timber that has not been har-
vested.
‘‘(B) The term ‘subsequent timber stand’
means a regenerated stand of timber produced
on land from which standing timber has been
harvested.’’.
SEC. 404. COST OF WATER USED TO PRODUCE SURPLUS
CROPS.
Section 9 of the Reclamation Project Act of 1939 (43
U.S.C. 485h) is amended by inserting at the end thereof
the following new subsection:
‘‘(g)(1) Any contract entered into under authority of
this section or any other provision of Federal reclamation
law shall require that the organization agree by contract
with the Secretary to pay full cost for the delivery of water
used in the production of any crop of an agricultural com-
modity for which an acreage reduction program is in effect
under the provisions of the Agricultural Act of 1949 (7
U.S.C. 1421 et seq.).
‘‘(2) The Secretary shall announce the amount of the
full cost payment for the succeeding year on or before July
1 of each year.
‘‘(3) As used in this subsection, the term ‘full cost’
shall have the meaning given such term in paragraph (3)
of section 202 of the Reclamation Reform Act of 1982
(43 U.S.C. 390bb(3)).
‘‘(4) Paragraph (1) shall apply to any contract en-
tered into or amended after the date of enactment of this
subsection.’’.
SEC. 405. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS
UNDER AGRICULTURAL ASSISTANCE PRO-
GRAMS TO REFLECT RECEIPT OF FEDERAL
IRRIGATION WATER.
(a) PRICE SUPPORT PROGRAMS.—Title X of the
Food Security Act of 1985 is amended—
(1) by redesignating sections 1001D (7 U.S.C.
1308–4) and 1001E (7 U.S.C. 1308–5) as sections
1001E and 1001F, respectively; and
(2) by inserting after section 1001C (7 U.S.C.
1308–3) the following new section:
‘‘SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO
REFLECT RECEIPT OF FEDERAL IRRIGATION
WATER.
‘‘(a) REDUCTION
OF PAYMENT LIMITATIONS RE-
QUIRED.—If a person subject to section 1001 receives
Federal irrigation water for agricultural purposes from the
operation of a Federal reclamation project, the payment
limitations specified in paragraphs (1) and (2) of such sec-
tion and applicable to such person shall be reduced for
the year in which such person receives irrigation water.
The amount of the reduction shall be equal to the total
value during that year of the subsidy portion of the con-
tract with such person for the delivery of the irrigation
water.
‘‘(b) DETERMINATION
OF SUBSIDY PORTION
OF
WATER CONTRACT.—The subsidy portion of an irrigation
water delivery contract is equal to the amount by which
full cost for the delivery of the irrigation water exceeds
the actual contract price for the delivery of the water.
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘contract’, ‘full cost’, ‘irrigation water’, and ‘project’
have the meanings given such terms in section 202 of the
Reclamation Reform Act of 1982 (43 U.S.C. 390bb).’’.
(b) NONINSURED CROP DISASTER ASSISTANCE.—
Subsection (h) of section 519 of the Federal Crop Insur-
ance Act (7 U.S.C. 1519), as added by section 112 of the
Federal Crop Insurance Reform Act of 1994 (title I of
Public Law 103–354; 108 Stat. 3202), is amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) EFFECT
OF
RECEIPT
OF
IRRIGATION
WATER.—
‘‘(A) REDUCTION
OF
PAYMENT
LIMITA-
TION.—If a person who receives payments
under this title also receives, during the same
year, Federal irrigation water for agricultural
purposes from the operation of a Federal rec-