I 
112TH CONGRESS 
1ST SESSION H. R. 3446 
To direct the Secretary of the Interior to establish an annual production 
incentive fee with respect to Federal onshore and offshore lands that 
are subject to a lease for production of oil or natural gas under which 
production is not occurring, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 16, 2011 
Mr. MARKEY (for himself, Mr. HOLT, Mr. KILDEE, Mr. GRIJALVA, Ms. 
BORDALLO, Mrs. NAPOLITANO, Mr. PIERLUISI, and Mrs. CHRISTENSEN) 
introduced the following bill; which was referred to the Committee on 
Natural Resources 
A BILL 
To direct the Secretary of the Interior to establish an annual 
production incentive fee with respect to Federal onshore 
and offshore lands that are subject to a lease for produc-
tion of oil or natural gas under which production is 
not occurring, 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 ‘‘Fair Payment for En-
ergy and Mineral Production on Public Lands Act’’. 
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SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is the following: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—USE IT ACT 
Sec. 101. Short title. 
Sec. 102. Production incentive fee. 
TITLE II—DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES 
Sec. 201. Short title. 
Sec. 202. Eligibility for new leases and the transfer of leases. 
Sec. 203. Price thresholds for royalty suspension provisions. 
Sec. 204. Repeal of royalty relief provisions. 
TITLE III—OCS FACILITY INSPECTIONS 
Sec. 301. Short title. 
Sec. 302. OCS facility inspection fees. 
TITLE IV—GULF COAST OIL AND GAS ROYALTY GIVEAWAY 
REPEAL 
Sec. 401. Short title. 
Sec. 402. Disposition of qualified outer Continental Shelf revenues from 181 
Area, 181 South Area, and 2002–2007 planning areas of Gulf 
of Mexico. 
TITLE V—HARDROCK MINING REFORM 
Sec. 501. Short title. 
Sec. 502. Definitions and references. 
Sec. 503. Application rules. 
Subtitle A—Mineral Exploration and Development 
Sec. 511. Royalty. 
Sec. 512. Hardrock mining claim maintenance fee. 
Sec. 513. Effect of payments for use and occupancy of claims. 
Sec. 514. Limitation on patents. 
Subtitle B—Protection of Special Places 
Sec. 521. Lands open to location. 
Sec. 522. Withdrawal petitions by States, political subdivisions, and Indian 
tribes. 
Subtitle C—Environmental Considerations of Mineral Exploration and 
Development 
Sec. 531. General standard for hardrock mining on Federal land. 
Sec. 532. Permits. 
Sec. 533. Exploration permit. 
Sec. 534. Operations permit. 
Sec. 535. Persons ineligible for permits. 
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Sec. 536. Financial assurance. 
Sec. 537. Operation and reclamation. 
Sec. 538. State law and regulation. 
Sec. 539. Limitation on the issuance of permits. 
Subtitle D—Administrative and Miscellaneous Provisions 
Sec. 541. Policy functions. 
Sec. 542. User fees. 
Sec. 543. Inspection and monitoring. 
Sec. 544. Citizens suits. 
Sec. 545. Administrative and judicial review. 
Sec. 546. Enforcement. 
Sec. 547. Regulations. 
Sec. 548. Effective date. 
Sec. 549. Oil shale claims. 
Sec. 550. Savings clause. 
Sec. 551. Availability of public records. 
Sec. 552. Miscellaneous powers. 
Sec. 553. Multiple mineral development and surface resources. 
Sec. 554. Mineral materials. 
TITLE VI—ABANDONED MINE RECLAMATION 
Sec. 601. Short title. 
Sec. 602. Definitions and references. 
Subtitle A—Hardrock Mining Reclamation 
Sec. 611. Displaced material reclamation fee. 
Subtitle B—Abandoned Mine Cleanup Fund 
Sec. 621. Establishment of fund. 
Sec. 622. Use and objectives of the fund. 
Sec. 623. Eligible lands and waters. 
Subtitle C—Priority Abandoned Coal Mine Reclamation 
Sec. 631. Amendments to the Surface Mining Control and Reclamation Act. 
Subtitle D—Administative Provisions 
Sec. 641. Effective date. 
Sec. 642. Fees adjustments. 
Sec. 643. Inspection and monitoring. 
Sec. 644. Regulations. 
Sec. 645. Availability of public records. 
TITLE VII—ADMINISTRATIVE COST RECOVERY 
Sec. 701. Short title. 
Sec. 702. Making permanent net receipts sharing for energy minerals. 
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(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 203. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
The Secretary of the Interior shall agree to a request 
by any lessee to amend any lease issued for any Central 
and Western Gulf of Mexico tract in the period of January 
1, 1996, through November 28, 2000, to incorporate price 
thresholds applicable to royalty suspension provisions, that 
are equal to or less than the price thresholds described 
in clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer 
Continental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1337(a)(3)(C)). Any amended lease shall impose the new 
or revised price thresholds effective October 1, 2012. Ex-
isting lease provisions shall prevail through September 30, 
2012. 
SEC. 204. REPEAL OF ROYALTY RELIEF PROVISIONS. 
(a) REPEAL OF PROVISIONS OF ENERGY POLICY ACT 
OF 2005.—The following provisions of the Energy Policy 
Act of 2005 (Public Law 109–58) are repealed: 
(1) Section 344 (42 U.S.C. 15904; relating to 
incentives for natural gas production from deep wells 
in shallow waters of the Gulf of Mexico). 
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(2) Section 345 (42 U.S.C. 15905; relating to 
royalty relief for deep water production in the Gulf 
of Mexico). 
(b) REPEAL OF PROVISIONS RELATING TO PLAN-
NING AREAS OFFSHORE ALASKA.—Section 8(a)(3)(B) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ‘‘and in the Plan-
ning Areas offshore Alaska’’. 
TITLE III—OCS FACILITY 
INSPECTIONS 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘No Free Inspections 
for Oil Companies Act’’. 
SEC. 302. OCS FACILITY INSPECTION FEES. 
Section 22 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1348) is amended by adding at the end of the 
section the following: 
‘‘(g) INSPECTION FEES.— 
‘‘(1) ESTABLISHMENT.—The Secretary of the 
Interior shall establish, by rule, and collect from the 
operators of facilities subject to inspection under 
subsection (c) nonrefundable fees for such inspec-
tions— 
‘‘(A) at an aggregate level equal to the 
amount necessary to offset the annual expenses 
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of inspections of outer Continental Shelf facili-
ties (including mobile offshore drilling units) by 
the Department of the Interior; and 
‘‘(B) using a schedule that reflects the dif-
ferences in complexity among the classes of fa-
cilities to be inspected. 
‘‘(2) OCEAN ENERGY ENFORCEMENT FUND.— 
There is established in the Treasury a fund, to be 
known as the ‘Ocean Energy Enforcement Fund’ 
(referred to in this subsection as the ‘Fund’), into 
which shall be deposited amounts collected as fees 
under paragraph (1) and which shall be available as 
provided under paragraph (3). 
‘‘(3) AVAILABILITY OF FEES.—Notwithstanding 
section 3302 of title 31, United States Code, all 
amounts collected by the Secretary under this sec-
tion— 
‘‘(A) shall be credited as offsetting collec-
tions; 
‘‘(B) shall be available for expenditure only 
for purposes of carrying out inspections of 
outer Continental Shelf facilities (including mo-
bile offshore drilling units) and the administra-
tion of the inspection program under this sec-
tion; 
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‘‘(C) shall be available only to the extent 
provided for in advance in an appropriations 
Act; and 
‘‘(D) shall remain available until expended. 
‘‘(4) ANNUAL REPORTS.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the end of each fiscal year beginning 
with fiscal year 2011, the Secretary shall sub-
mit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on 
Natural Resources of the House of Representa-
tives a report on the operation of the Fund dur-
ing the fiscal year. 
‘‘(B) CONTENTS.—Each report shall in-
clude, for the fiscal year covered by the report, 
the following: 
‘‘(i) A statement of the amounts de-
posited into the Fund. 
‘‘(ii) A description of the expenditures 
made from the Fund for the fiscal year, in-
cluding the purpose of the expenditures. 
‘‘(iii) Recommendations for additional 
authorities to fulfill the purpose of the 
Fund. 
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‘‘(iv) A statement of the balance re-
maining in the Fund at the end of the fis-
cal year.’’. 
TITLE IV—GULF COAST OIL AND 
GAS ROYALTY GIVEAWAY RE-
PEAL 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Gulf Coast Oil and 
Gas Royalty Giveaway Repeal and Deficit Reduction Act’’. 
SEC. 402. DISPOSITION OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES FROM 181 AREA, 
181 SOUTH AREA, AND 2002–2007 PLANNING 
AREAS OF GULF OF MEXICO. 
Section 105 of the Gulf of Mexico Energy Security 
Act of 2006 (43 U.S.C. 1331 note) is amended to read 
as follows: 
‘‘SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES FROM 181 AREA, 
181 SOUTH AREA, AND 2002–2007 PLANNING 
AREAS OF GULF OF MEXICO. 
‘‘(a) IN GENERAL.—Notwithstanding section 9 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 
subject to the other provisions of this section, for each ap-
plicable fiscal year, the Secretary of the Treasury shall 
deposit— 
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‘‘(1) 87.5 percent of qualified outer Continental 
Shelf revenues in the general fund of the Treasury; 
and 
‘‘(2) 12.5 percent of qualified outer Continental 
Shelf revenues in a special account in the Treasury 
from which the Secretary shall disburse 100 percent 
to provide financial assistance to States in accord-
ance with section 6 of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 460l–8), 
which shall be considered income to the Land and 
Water Conservation Fund for purposes of section 2 
of that Act (16 U.S.C. 460l–5). 
‘‘(b) USE OF AMOUNTS FOR DEFICIT REDUCTION.— 
Notwithstanding any other provision of law, any amounts 
received by the United States as rentals or royalties under 
leases covered by this title shall be deposited in the Treas-
ury and used for Federal budget deficit reduction or, if 
there is no Federal budget deficit, for reducing the Fed-
eral debt in such manner as the Secretary of the Treasury 
considers appropriate.’’. 
TITLE V—HARDROCK MINING 
REFORM 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Hardrock Mining Re-
form and Deficit Reduction Act of 2011’’. 
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SEC. 502. DEFINITIONS AND REFERENCES. 
(a) IN GENERAL.—As used in this title: 
(1) The term ‘‘affiliate’’ means with respect to 
any person, any of the following: 
(A) Any person who controls, is controlled 
by, or is under common control with such per-
son. 
(B) Any partner of such person. 
(C) Any person owning at least 10 percent 
of the voting shares of such person. 
(2) The term ‘‘applicant’’ means any person ap-
plying for a permit under this title or a modification 
to or a renewal of a permit under this title. 
(3) The term ‘‘beneficiation’’ means the crush-
ing and grinding of locatable mineral ore and such 
processes as are employed to free the mineral from 
other constituents, including but not necessarily lim-
ited to, physical and chemical separation techniques. 
(4) The term ‘‘casual use’’— 
(A) subject to subparagraphs (B) and (C), 
means mineral activities that do not ordinarily 
result in any disturbance of public lands and re-
sources; 
(B) includes collection of geochemical, 
rock, 
soil, 
or 
mineral 
specimens 
using 
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handtools, hand panning, or nonmotorized sluic-
ing; and 
(C) does not include— 
(i) the use of mechanized earth-mov-
ing equipment, suction dredging, or explo-
sives; 
(ii) the use of motor vehicles in areas 
closed to off-road vehicles; 
(iii) the construction of roads or drill 
pads; and 
(iv) the use of toxic or hazardous ma-
terials. 
(5) The term ‘‘claim holder’’ means a person 
holding a mining claim, millsite claim, or tunnel site 
claim located under the general mining laws and 
maintained in compliance with such laws and this 
title. Such term may include an agent of a claim 
holder. 
(6) The term ‘‘control’’ means having the abil-
ity, directly or indirectly, to determine (without re-
gard to whether exercised through one or more cor-
porate structures) the manner in which an entity 
conducts mineral activities, through any means, in-
cluding without limitation, ownership interest, au-
thority to commit the entity’s real or financial as-
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sets, position as a director, officer, or partner of the 
entity, or contractual arrangement. 
(7) The term ‘‘exploration’’— 
(A) subject to subparagraphs (B) and (C), 
means creating surface disturbance other than 
casual use, to evaluate the type, extent, quan-
tity, or quality of minerals present; 
(B) includes mineral activities associated 
with sampling, drilling, and analyzing locatable 
mineral values; and 
(C) does not include extraction of mineral 
material for commercial use or sale. 
(8) The term ‘‘Federal land’’ means any land, 
and any interest in land, that is owned by the 
United States and open to location of mining claims 
under the general mining laws and subtitle B of this 
title. 
(9) The term ‘‘Indian lands’’ means lands held 
in trust for the benefit of an Indian tribe or indi-
vidual or held by an Indian tribe or individual sub-
ject to a restriction by the United States against 
alienation. 
(10) The term ‘‘Indian tribe’’ means any Indian 
tribe, band, nation, pueblo, or other organized group 
or community, including any Alaska Native village 
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or regional corporation as defined in or established 
pursuant to the Alaska Native Claims Settlement 
Act (43 U.S.C. 1601 et seq.), that is recognized as 
eligible for the special programs and services pro-
vided by the United States to Indians because of 
their status as Indians. 
(11) The term ‘‘locatable mineral’’— 
(A) subject to subparagraph (B), means 
any mineral, the legal and beneficial title to 
which remains in the United States and that is 
not subject to disposition under any of— 
(i) the Mineral Leasing Act (30 
U.S.C. 181 et seq.); 
(ii) the Geothermal Steam Act of 
1970 (30 U.S.C. 1001 et seq.); 
(iii) the Act of July 31, 1947, com-
monly known as the Materials Act of 1947 
(30 U.S.C. 601 et seq.); or 
(iv) the Mineral Leasing for Acquired 
Lands Act (30 U.S.C. 351 et seq.); and 
(B) does not include any mineral that is 
subject to a restriction against alienation im-
posed by the United States and is— 
(i) held in trust by the United States 
for any Indian or Indian tribe, as defined 
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in section 2 of the Indian Mineral Develop-
ment Act of 1982 (25 U.S.C. 2101); or 
(ii) owned by any Indian or Indian 
tribe, as defined in that section. 
(12) The term ‘‘mineral activities’’ means any 
activity on a mining claim, millsite claim, or tunnel 
site claim for, related to, or incidental to, mineral 
exploration, mining, beneficiation, processing, or rec-
lamation activities for any locatable mineral. 
(13) The term ‘‘mining claim’’— 
(A) subject to subparagraph (B), means a 
claim located under the Mining Law of 1872 
within the boundaries of which exist locatable 
minerals the claimant intends to extract; 
(B) does not include a claim located for 
the purpose of securing Federal lands for a 
waste rock dump, tailings pile, or other pur-
poses incident to processing locatable minerals 
extracted elsewhere. 
(14) The term ‘‘National Conservation System 
unit’’ means any unit of the National Park System, 
National Wildlife Refuge System, National Wild and 
Scenic Rivers System, or National Trails System, or 
a National Conservation Area, a National Recreation 
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Area, a National Monument, or any unit of the Na-
tional Wilderness Preservation System. 
(15) The term ‘‘operator’’ means any person 
proposing or authorized by a permit issued under 
this title to conduct mineral activities and any agent 
of such person. 
(16) The term ‘‘person’’ means an individual, 
Indian tribe, partnership, association, society, joint 
venture, joint stock company, firm, company, cor-
poration, cooperative, or other organization and any 
instrumentality of State or local government includ-
ing any publicly owned utility or publicly owned cor-
poration of State or local government. 
(17) The term ‘‘processing’’ means processes 
downstream of beneficiation employed to prepare 
locatable mineral ore into the final marketable prod-
uct, including smelting and electrolytic refining. 
(18) The term ‘‘Secretary’’ means the Secretary 
of the Interior, unless otherwise specified. 
(19) The term ‘‘temporary cessation’’ means a 
halt in mine-related production activities for a con-
tinuous period of no longer than 5 years. 
(20) The term ‘‘undue degradation’’ means, 
based on consideration of other resource values that 
may be affected, the operation or proposed operation 
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fails to comply with the performance standards in 
this title or can reasonably be expected to cause sig-
nificant environmental harm to wildlife; land, air, or 
water resources; or scientific or cultural resources. 
(21) The term ‘‘valid existing rights’’ means a 
mining claim or millsite claim located on lands de-
scribed in section 521(b), that— 
(A) was properly located and maintained 
under the general mining laws prior to the date 
of enactment of this Act; 
(B) was supported by a discovery of a val-
uable mineral deposit within the meaning of the 
general mining laws on the date of enactment 
of this Act, and, for millsite claims, does not in-
volve more than one mill site for every mining 
claim located for that operation; and 
(C) continues to be valid under this title. 
(b) REFERENCES TO OTHER LAWS.— 
(1) Any reference in this title to the term gen-
eral mining laws is a reference to those Acts that 
generally comprise chapters 2, 12A, and 16, and sec-
tions 161 and 162, of title 30, United States Code. 
(2) Any reference in this title to the Act of July 
23, 1955, is a reference to the Act entitled ‘‘An Act 
to amend the Act of July 31, 1947 (61 Stat. 681) 
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and the mining laws to provide for multiple use of 
the surface of the same tracts of the public lands, 
and for other purposes’’ (30 U.S.C. 601 et seq.). 
SEC. 503. APPLICATION RULES. 
(a) IN GENERAL.—This title applies to any mining 
claim, millsite claim, or tunnel site claim located under 
the general mining laws, before, on, or after the date of 
enactment of this Act, except as provided in subsection 
(b). 
(b) PREEXISTING CLAIMS.— 
(1) Any unpatented mining claim or millsite 
claim located under the general mining laws before 
the date of enactment of this Act for which a plan 
of operation has not been approved or a notice filed 
prior to the date of enactment shall, upon the effec-
tive date of this title, be subject to the requirements 
of this title, except as provided in paragraphs (2) 
and (3). 
(2)(A) If a plan of operations is approved for 
mineral activities on any claim or site referred to in 
paragraph (1) prior to the date of enactment of this 
Act but such operations have not commenced prior 
to the date of enactment of this Act— 
(i) during the 5-year period beginning 
on the date of enactment of this Act, min-
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eral activities at such claim or site shall be 
subject to such plan of operations; 
(ii) during such 5-year period, modi-
fications of any such plan may be made in 
accordance with the provisions of law ap-
plicable prior to the enactment of this Act 
if such modifications are deemed minor by 
the Secretary concerned; and 
(iii) the operator shall bring such min-
eral activities into compliance with this 
title by the end of such 5-year period. 
(B) Where an application for modification 
of a plan of operations referred to in subpara-
graph (A)(ii) has been timely submitted and an 
approved plan expires prior to Secretarial ac-
tion on the application, mineral activities and 
reclamation may continue in accordance with 
the terms of the expired plan until the Sec-
retary makes an administrative decision on the 
application. 
(c) FEDERAL LANDS SUBJECT TO EXISTING PER-
MIT.— 
(1) Any Federal land shall be subject to the re-
quirements of section 512(a)(2) if the land is— 
(A) subject to an operations permit; and 
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(B) producing valuable locatable minerals 
in commercial quantities prior to the date of en-
actment of this Act. 
(2) Any Federal land added through a plan 
modification to an operations permit on Federal land 
that is submitted after the date of enactment of this 
Act shall be subject to the terms of section 
512(a)(3). 
(d) APPLICATION OF TITLE TO BENEFICIATION AND 
PROCESSING OF NON-FEDERAL MINERALS ON FEDERAL 
LANDS.—The provisions of this title (including the envi-
ronmental protection requirements of subtitle C) shall 
apply in the same manner and to the same extent to min-
ing claims, millsite claims, and tunnel site claims used for 
beneficiation or processing activities or activities related 
to, or incidental to, such mineral activities for any mineral 
without regard to whether or not the legal and beneficial 
title to the mineral is held by the United States. This sub-
section applies only to minerals that are locatable minerals 
or minerals that would be locatable minerals if the legal 
and beneficial title to such minerals were held by the 
United States. 
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Subtitle A—Mineral Exploration 
and Development 
SEC. 511. ROYALTY. 
(a) RESERVATION OF ROYALTY.— 
(1) IN
GENERAL.—Subject to paragraph (2) 
production of all locatable minerals from any mining 
claim located under the general mining laws and 
maintained in compliance with this title, or mineral 
concentrates or products derived from locatable min-
erals from any such mining claim, as the case may 
be, shall be subject to a royalty of 12.5 percent of 
the gross income from mining. The claim holder or 
any operator to whom the claim holder has assigned 
the obligation to make royalty payments under the 
claim and any person who controls such claim holder 
or operator shall be liable for payment of such royal-
ties. 
(2) FEDERAL LAND ADDED TO EXISTING OPER-
ATIONS PERMIT.—Any Federal land added through 
a plan modification to an operations permit that is 
submitted after the date of enactment of this Act 
shall be subject to the royalty that applies to Fed-
eral land under paragraph (1). 
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(3) DEPOSIT.—Amounts received by the United 
States as royalties under this subsection shall be de-
posited into the Treasury. 
(b) DUTIES OF CLAIM HOLDERS, OPERATORS, AND 
TRANSPORTERS.— 
(1) A person— 
(A) who is required to make any royalty 
payment under this section shall make such 
payments to the United States at such times 
and in such manner as the Secretary may by 
rule prescribe; and 
(B) shall notify the Secretary, in the time 
and manner as may be specified by the Sec-
retary, of any assignment that such person may 
have made of the obligation to make any roy-
alty or other payment under a mining claim. 
(2) Any person paying royalties under this sec-
tion shall file a written instrument, together with the 
first royalty payment, affirming that such person is 
responsible for making proper payments for all 
amounts due for all time periods for which such per-
son has a payment responsibility. Such responsibility 
for the periods referred to in the preceding sentence 
shall include any and all additional amounts billed 
by the Secretary and determined to be due by final 
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agency or judicial action. Any person liable for roy-
alty payments under this section who assigns any 
payment 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 secu-
rity provisions in the operations permit de-
signed to protect from theft the locatable min-
erals, concentrates or products derived there-
from which are produced or stored on a mining 
claim, and such provisions shall conform with 
such minimum standards as the Secretary may 
prescribe by rule, taking into account the vari-
ety 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 per-
son engaged in transporting a locatable mineral, 
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concentrate, or product derived there from 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, origin, and intended des-
tination of the locatable mineral, concentrate, or 
product derived there from in such circumstances 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, 
transporting, purchasing, or selling locatable min-
erals, concentrates, or products derived therefrom, 
subject to this title, through the point of royalty 
computation shall establish and maintain any 
records, make any reports, and provide any informa-
tion that the Secretary may reasonably require for 
the purposes of implementing this section or deter-
mining compliance with rules or orders under this 
section. Such records shall include, but not be lim-
ited 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, quality, composition volume, 
weight, and assay of all minerals extracted from the 
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mining claim. Upon the request of any officer or em-
ployee duly designated by the Secretary conducting 
an audit or investigation pursuant to this section, 
the appropriate records, reports, or information that 
may be required by this section shall be made avail-
able for inspection and duplication by such officer or 
employee. Failure by a claim holder, operator, or 
other person referred to in the first sentence to co-
operate with such an audit, provide data required by 
the Secretary, or grant access to information may, 
at the discretion of the Secretary, result in involun-
tary forfeiture of the claim. 
(2) Records required by the Secretary under 
this section shall be maintained for 7 years after re-
lease of financial assurance under section 536 unless 
the Secretary notifies the operator that the Sec-
retary has initiated an audit or investigation involv-
ing 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-
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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 Agri-
culture to share information concerning the royalty 
management of locatable minerals, concentrates, or 
products derived therefrom, to carry out inspection, 
auditing, investigation, or enforcement (not includ-
ing the collection of royalties, civil or criminal pen-
alties, or other payments) activities under this sec-
tion in cooperation with the Secretary, and to carry 
out any other activity described in this section. 
(2) Except as provided in paragraph (3)(A) of 
this subsection (relating to trade secrets), and pur-
suant to a cooperative agreement, the Secretary of 
Agriculture shall, upon request, have access to all 
royalty accounting information in the possession of 
the Secretary respecting the production, removal, or 
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and subsection (b) to mineral activities or reclama-
tion on lands subject to this title. 
(2) In such instances where the proposed min-
eral activities would affect lands not subject to this 
title in addition to lands subject to this title, in 
order to approve a plan of operations the Secretary 
concerned shall enter into a cooperative agreement 
with the State that sets forth a common regulatory 
framework consistent with the requirements of this 
title for the purposes of such plan of operations. Any 
such common regulatory framework shall not negate 
the authority of the Federal Government to inde-
pendently inspect mines and operations and bring 
enforcement actions for violations. 
(3) The Secretary concerned shall not enter 
into a cooperative agreement with any State under 
this section until after notice in the Federal Register 
and opportunity for public comment and hearing. 
(d) PRIOR AGREEMENTS.—Any cooperative agree-
ment or such other understanding between the Secretary 
concerned and any State, or political subdivision thereof, 
relating to the management of mineral activities on lands 
subject to this title that was in existence on the date of 
enactment of this Act may only continue in force until 1 
year after the date of enactment of this Act. During such 
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132 
an approved reclamation program under Section 405 may 
submit to the Secretary an application for the administra-
tive support of the approved reclamation program, the im-
plementation of specific reclamation projects, or both. 
‘‘(b) CONTENTS OF APPLICATION FOR AN ADMINIS-
TRATIVE GRANT.—The application shall include— 
‘‘(1) a description of the program administra-
tive activities to be accomplished during the grant 
period; 
‘‘(2) estimated costs of proposed activities; and 
‘‘(3) 
information 
and 
assessments 
dem-
onstrating that the amounts requested are necessary 
to support specific reclamation objectives that will be 
submitted to the Secretary or projects funded by 
grants awarded prior to the date of enactment of 
this Act. 
‘‘(c) CONTENTS OF APPLICATION FOR A RECLAMA-
TION GRANT.—The application shall include— 
‘‘(1) a general description of each proposed 
project, including the type of reclamation to be per-
formed, the general location, and the name of the 
landowner; 
‘‘(2) an explanation as to why the State or 
Tribe selected each proposed project from among all 
of the eligible lands and water in its jurisdiction, in-
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