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TITLE I—FINDINGS AND PURPOSE;
DEFINITIONS
SEC. 101. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds and declares that—
(1) a secure and reliable supply of locatable
minerals is essential to the industrial base of the
United States, national security, and balance of
trade;
(2) many of the deposits of locatable minerals
that may be commercially developed are on Federal
lands as that term is defined in this Act, and are
difficult and expensive to discover, mine, extract and
process;
(3) the national need for locatable minerals will
continue to expand, and without a strong mining in-
dustry the demand for the minerals will exceed do-
mestic sources of supply;
(4) mining of locatable minerals is an extremely
high-risk, capital-intensive endeavor, which, to at-
tract necessary investment, requires certainty and
predictability in access to Federal lands in establish-
ment of mining titles, and in the rights of owners of
mining claims or sites to develop minerals;
(5) it is the national interest to foster and en-
courage private enterprise in the development of a
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domestic minerals industry to maintain and create
high-paying jobs and the various Federal, State, and
local taxes paid by the mining industry in the Unit-
ed States;
(6) the diversity in terrain, climate, biological,
chemical, and other physical conditions, and vari-
ation among the locatable minerals mined and the
methods of mining and processing, require that rec-
lamation standards be tailored to local and regional
conditions;
(7) there are extensive Federal and State envi-
ronmental standards that apply to mining operations
on Federal lands, including State programs for the
protection of ground water quality;
(8) every State containing Federal lands has
enacted laws and regulations governing the reclama-
tion of mined lands and, subject to the supremacy
clause of the United States Constitution, these laws
and regulations, including financial assurance re-
quirements, apply to mineral activities on Federal
lands;
(9) changes in the general mining laws of the
United States to provide more direct economic re-
turn to the United States and greater protection of
public resources are desirable, so long as the
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changes do not act as a disincentive to development
of minerals, adversely affect employment in the min-
ing industry or in industries that provide goods and
services required for mining activities, interfere with
a secure and reliable domestic supply of minerals, or
adversely affect the balance of trade of the United
States; and
(10) mining claims, mill sites and tunnel sites
located under the general mining laws are property
interests, and any law or regulation that impairs ex-
isting property rights may expose the Federal Gov-
ernment to takings claims under the fifth amend-
ment to the United States Constitution.
(b) PURPOSE.—It is the purpose of this Act to—
(1) promote exploration for and the develop-
ment of a secure and reliable domestic source of
locatable minerals;
(2) provide for increased Federal revenue from
the location and production of locatable minerals
from Federal lands through fees, patent payments
and royalties;
(3) ensure that mineral activities on Federal
lands are conducted in compliance with all applicable
Federal and State environmental regulations and
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standards, including standards governing mind land
reclamation;
(4) ensure that all Federal lands affected by
mineral activities under the general mining laws are
reclaimed as required by applicable laws;
(5) establish a program to reclaim abandoned
locatable mine sites on Federal lands; and
(6) recognize that unpatented mining claims,
mill sites and tunnel sites are property rights in the
fullest sense and avoid, to the greatest extent pos-
sible, claims of takings of existing property rights
under the general mining laws that could require
compensation under the fifth amendment to the
United States Constitution.
SEC. 102. DEFINITIONS.
When used in this Act:
(1) ‘‘Assessment year’’ means the annual period
commencing at 12 o’clock noon on the 1st day of
September and ending at 12 o’clock noon on the 1st
day of September of the following year.
(2) ‘‘Federal lands’’ means, except as provided
otherwise in title III, lands and interest in lands
owned by the United States that are open to mineral
location, or that were open to mineral location when
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a mining claim or site was located and which have
not been patented under the general mining laws.
(3) ‘‘General mining laws’’ means those Acts
which generally comprise chapters 2, 11, 12, 12A,
15, and 16, and sections 161 and 162, of title 30
of the Untied States Code, all Acts heretofore en-
acted which are amendatory of or supplementary to
any of the foregoing Acts, and the judicial and ad-
ministrative decisions interpreting such Acts.
(4) ‘‘Locatable minerals’’ means those minerals
owned by the United States and subject to location
and disposition under the general minerals laws on
or after the effective date of this Act, but not includ-
ing any mineral held in trust by the United States
for any Indian or Indian tribe, as defined in section
2 of the Indian Mineral Development Act of 1982
(25 U.S.C. 2101), or any mineral owned by any In-
dian or Indian tribe, as defined in that section, that
is subject to a restriction against alienation imposed
by the United States, or any mineral owned by any
incorporated Native group, village corporation, or re-
gional corporation and acquired by the group or cor-
poration under the provisions of the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.).
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(5) ‘‘Mineral activities’’ means any activity on
Federal lands related to, or incidental to, exploration
for 
or 
development, 
mining, 
production,
beneficiation, or processing of any locatable mineral,
or reclamation of the impacts of such activities.
(6) ‘‘Mining claim or site’’, except where pro-
vided otherwise, means a lode mining claim, placer
mining claim, mill site or tunnel site.
(7) ‘‘Operator’’ means any person conducting
mineral activities subject to this Act.
(8) ‘‘Person’’ means an individual, Indian tribe,
partnership, association, society, joint venture, joint
stock company, firm, company, limited liability com-
pany, corporation, cooperative or other organization,
and any instrumentality of State or local govern-
ment, including any publicly owned utility or publicly
owned corporation of State or local government.
(9) ‘‘Secretary’’ means (i) in titles II and V, the
Secretary of the Interior acting through the Bureau
of Land Management, (ii) in title IV, the Secretary
of Interior acting through the Bureau of Land Man-
agement or the Minerals Management Service, or
both, and (iii) elsewhere in this Act, the Secretary
of Agriculture, acting through the Forest Service,
with respect to lands under the jurisdiction of the
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Secretary of Agriculture, and the Secretary of the
Interior, acting through the Bureau of Land Man-
agement, with respect to all other land subject to the
requirements of this Act.
TITLE II—DISPOSITION OF LOCATABLE
MINERAL DEPOSITS
SEC. 201. CLAIM MAINTENANCE REQUIREMENTS.
(a) MAINTENANCE FEE.—After the date of enact-
ment of this Act, the owner of each unpatented mining
claim or site located pursuant to the general mining laws,
whether located before or after the enactment of this Act,
shall pay in advance to the Secretary annually on or before
September 1, and until a patent has been issued therefor,
a maintenance fee of $100 per mining claim or site. The
owner of each unpatented mining claim or site located
after the date of enactment of this Act pursuant to the
general mining laws shall pay to the Secretary, at the time
the copy of the notice or certificate of location is filed with
the Bureau of Land Management pursuant to section
314(b) of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1744(b)), in addition to the location
fee required under subsection (f) of this section, an initial
maintenance fee of $100 per mining claim or site for the
assessment year which includes the date of location of
such mining claim or site. If a mining claim or site is lo-
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cable to potential or proposed mineral activities on the
claim(s).’’.
(c) MAINTENANCE FEE STATEMENT.—Each pay-
ment under subsection (a) of this section shall be accom-
panied by a statement which reasonably identifies the min-
ing claim or site for which the maintenance fee is being
paid. Such statement may include the name of the mining
claim or site, the serial number assigned by the Secretary
to such mining claim or site, the description of the book
and page in which the notice or certificate of location for
such mining claim or site is recorded under State law, any
combination of the foregoing, or any other information
that reasonably identifies the mining claim or site for
which the maintenance fee is being paid. The statement
required under this subsection shall be in lieu of any an-
nual filing requirements for mining claims or sites, under
any other Federal law, but shall not supersede any such
filing requirement under applicable State law.
(d) EFFECT OF COMPLIANCE AS AGAINST SUBSE-
QUENT LOCATORS.—
(1) Except as provided in paragraph (d)(2) of
this subsection, after the date of enactment of this
Act, compliance with the requirements of this section
and sections 202 and 203 shall, from the time the
location notice or certificate is posted on the land
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under applicable State law, confer upon the owner of
any unpatented mining claim or site, whether lo-
cated before or after the date of enactment of this
Act, an exclusive right of possession, as against sub-
sequent locators, of the land included in such mining
claim or site for the purposes described in subsection
203(a). If more than one mining claim or site owned
or controlled by the same claim or site owner covers
substantially the same land, by reason of the loca-
tion of one or more mining claims or sites on such
land, the amendment or relocation of any such min-
ing claim or site, or otherwise, such exclusive right
of possession shall extend to all such mining claims
or sites, effective from the time the location notice
or certificate for the initial mining claim or site was
posted on such land under applicable State law. The
order of location, amendment, or relocation of any
such mining claims or sites on such land shall not
affect the validity of any such mining claim or site.
Such owner of the mining claim or site shall not be
required to be in actual, physical occupation of such
land and shall not be required to exclude rival loca-
tors from such land. Such exclusive right of posses-
sion shall be subject to applicable Federal law, in-
cluding the Multiple Mineral Development Act of
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1954 (30 U.S.C. 521–31), the Materials Act of 1947
(30 U.S.C. 601–604) and the Surface Resources Act
of 1955 (30 U.S.C. 611–15) to the extent applicable,
and shall neither enlarge nor diminish any rights of
such owner of the mining claim or site as against
the United States in such land. This paragraph shall
supersede the common law doctrine of pedis
possessio.
(2) Conflicts over the right of exclusive posses-
sion of land included in any mining claim or site
shall be determined in proceedings between owners
of mining claims or sites under the provisions of sec-
tion 910 of the Revised Statutes (30 U.S.C. 53) and
other applicable law, including but not limited to the
following:
(A) Any conflict based upon circumstances
existing as of the date of enactment of this Act
between mining claims or sites located before
the date of enactment of this Act, which shall
be resolved under the law in effect on the day
prior to the date of enactment of this Act, in-
cluding the common law doctrine of pedis
possessio.
(B) Any conflict arising on or after the
date of enactment of this Act between mining
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claims or sites located before, on or after the
date of enactment over whether either owner of
the mining claim or site has complied with the
requirements of this section or sections 202 or
203(a), which shall be resolved under this Act.
(e) FAILURE
OF CO-OWNER TO CONTRIBUTE.—
Upon the failure of any one or more of several co-owners
of any mining claim or site to contribute such co-owner
or owners’ portion of the location or maintenance fee
under this section, any co-owner who has paid such fee
may, after the payment due date, serve the delinquent co-
owner or owners with notice of such failure in writing or,
if such delinquent co-owner or owners cannot be located
after reasonable efforts, by publication in a general cir-
culation newspaper published in a location nearest the
mining claim or site 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 the owed portion, such co-owner or
owners’ interest shall become the property of the owner
or co-owners who have paid the required fee.
(f) LOCATION FEE.—The owner of each unpatented
mining claim or site located on or after the date of enact-
ment of this Act pursuant to the general mining laws shall
pay to the Secretary, at the time the notice or certificate
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of location is filed with the Bureau of Land Management
pursuant to subsection 314(b) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(b)), a loca-
tion fee of $25.00 per claim.
(g) CREDIT AGAINST ROYALTY.—The annual claim
maintenance fee paid for any unpatented mining claim or
site on or before September 1 or any year shall be credited
against the amount of royalty required to be paid under
title IV for such mining claim or site during the following
assessment year.
(h) FEE ADJUSTMENTS AND DISPOSITION.—
(1) At the end of each period of five assessment
years after the date of enactment of this Act, the
Secretary shall adjust the maintenance fee and the
location fee required by this section by an amount
equal to the net adjustment in the implicit price
deflator for the gross national product established by
the United States Department of Commerce over the
preceding five year period, rounded up or down to
the nearest dollar.
(2) The Secretary shall provide owners of min-
ing claims or sites with notice by publication in the
Federal Register of any adjustment made under
paragraph (1) not later than January 1 of any as-
sessment year in which the adjustment is made.
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(3) A fee adjustment under paragraph (1) shall
apply to the payment due for the next assessment
year after the assessment year in which notice is
given under paragraph (2).
(4) All maintenance and location fees received
by the Secretary under this section shall be paid into
the Treasury of the United States and be subject to
the provision of title I of Public Law 100–446, 102
Stat. 1774 (43 U.S.C. 1474) making receipts avail-
able for use by the Secretary for program operations
in Mining Law Administration.
(i) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEE 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 paragraph
2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C.
242(e)(2)).
(j) FAILURE TO COMPLY.—The failure of the owner
of the mining claim or site to pay the claim maintenance
fee or location fee for a mining claim or site on or before
the date such payment is due under subsection (a) or sub-
section (f) of this section shall constitute forfeiture of the
mining claim or site and such mining claim or site shall
be null and void, effective as of the day after the date
such payment is due: Provided, however, That, if such
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maintenance fee or location fee is paid or tendered on or
before the 30th day after such payment was due under
subsection (a) or subsection (f) of this section, such min-
ing claim or site shall not be forfeited or null or void, and
such maintenance fee or location fee shall be deemed time-
ly paid.
(k) REPEAL OF OMNIBUS BUDGET RECONCILIATION
ACT
FEE
REQUIREMENTS.—Sections 10101 through
10106 of the Omnibus Budget Reconciliation Act of 1993
(30 U.S.C. 28f through 28k) are hereby repealed.
(l) CONFORMING AMENDMENT.—The third sentence
of section 2324 of the Revised Statutes (30 U.S.C. 28)
is amended by adding the words ‘‘Except as provided in
paragraph 201(b)(1) of The Mining Law Reform Act of
1995,’’ at the beginning of such sentence and deleting the
words ‘‘that is granted a waiver under section 10101 of
the Omnibus Budget Reconciliation Act of 1993,’’.
(m) AMENDMENT
OF FLPMA FILING REQUIRE-
MENTS.—
(1) Section 314(a) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(a))
is hereby repealed.
(2) Section 314(c) of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1744(c))
is amended to read as follows:
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‘‘(c) FAILURE TO FILE AS CONSTITUTING FORFEIT-
URE; DEFECTIVE OR UNTIMELY FILING.—The failure to
timely file the copy of the notice or certificate of location
as required by subsection (b) shall constitute forfeiture of
the mining claim and such claim shall be null and void
by operation of law: Provided, however, That it shall not
be considered a failure to file if the notice or certificate
of location is defective or not timely filed for record under
other State or Federal laws permitting or requiring the
filing or recording thereof, or if the copy of the notice or
certificate is filed by or on behalf of some but not all of
the owners of the claim.’’.
SEC. 202. WAIVER AND EXEMPTION.
(a) WAIVER OF FEE.—The maintenance fee provided
for in subsection 201(a) shall be waived for the owner of
a mining claim or site who certifies in writing to the Sec-
retary, on or before the date the payment is due, that,
as of the date such payment is due, such owner and all
related persons own not more than twenty-five unpatented
mining claims or sites. Any owner of a mining claim or
site that is not required to pay a maintenance fee under
this subsection shall continue to be subject to the assess-
ment work requirements of the general mining laws or of
any other State or Federal law, subject to any suspension
or deferment of annual assessment work provided by law,
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for the assessment year following the filing of the certifi-
cation, and paragraph 201(b)(1) of this Act shall not
apply.
(b) RELATED PERSONS.—As used in subsection (a),
the term ‘‘related persons’’ includes—
(1) the spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the owner of the mining claim or site; and
(2) a person controlled by, controlling, or under
common control with the owner of the mining claim
or site.
(c) EXEMPTION.—The owner of any mining claim or
site who certifies in writing to the Secretary on or before
the first day of any assessment year that access to such
mining claim or site was denied or impeded during the
prior assessment year by the action or inaction of any
local, State, or Federal governmental officer, agency, or
court, or by any Indian tribal authority, shall be exempt
from the maintenance fee and assessment work require-
ments of subsections (a) and (b) of section 201 for the
assessment year following the filing of the certification.
SEC. 203. GOOD FAITH REQUIREMENT; RESIDENTIAL OCCU-
PANCY; DIVESTMENT AND REVERTER.
(a) GOOD FAITH HOLDING OF MINING CLAIM OR
SITE.—The location, maintenance, and use of an
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unpatented mining claim or site, whether located before
or after enactment of this Act, shall be for the purpose
of conducting mineral activities in good faith.
(b) RESIDENTIAL OCCUPANCY.—The Secretary shall
not prohibit residential occupancy of an unpatented min-
ing claim or site and shall not require removal of equip-
ment or facilities until mineral activities are completed,
if such occupancy is shown in a notice of intent or plan
of operations to be reasonably required to accomplish the
mineral activities described therein.
(c) REVERTER.—(1) Land patented under Section
204(a) shall revert to the United States if—
(A) the land is used for a purpose that is not
authorized under subsection (a);
(B) the unauthorized use is not discontinued
within a time period specified by the Secretary (but
not earlier than 90 days after the Secretary provides
the owner of the land with written notice pursuant
to paragraph (2) to discontinue the unapproved
use); and
(C) the Secretary elects to enforce the rever-
sionary interest in accordance with paragraph (2).
(2) The reversion under paragraph (1) shall take ef-
fect if—
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(A) the Secretary files a declaration of reversion
in the office of the Bureau of Land Management
designated by the Secretary of the Interior;
(B) the Secretary records the declaration in the
office of the county recorder of the county in which
the lands subject to a reversion are situated; and
(C) not later than 30 days after recording the
declaration of reversion, the Secretary serves on the
owner of the land subject to reversion a recorded
copy of the declaration, the same manner that a
summons and complaint are served under the Fed-
eral Rules of Civil Procedure, and delivers payment
for fair market value of the surface interest at the
time of the reverter.
(3) The Secretary may renounce a reversion by filing
and recording a declaration of renouncement in the same
offices in which a declaration of reversion would have been
filed under paragraph (2). The Secretary may renounce
a reversion for any reason, including a case in which—
(A) a portion of the lands included in the pat-
ent have been used for solid waste disposal or for
any other purpose that may result in the disposal,
placement, or release of a hazardous substance;
(B) continuance of the reverter serves no public
purpose; or
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(C) it would not be in the best interest of the
United States to exercise the reverter.
(4) Each patent to land acquired under section 2325,
2333, or 2337 of the Revised Statutes (30 U.S.C. 29, 37
or 42) that is subject to the limitations of this subsection
shall so state.
(d) REPEAL OF PATENTING MORATORIUM; PROCESS-
ING OF PATENT APPLICATIONS.—
(1) Sections 112 and 113 of Public Law 103–
332 are hereby repealed. The Secretary shall dili-
gently process all applications for patent and shall
make determinations for all such applications re-
garding patent issuance as expeditiously as possible.
(2) The provisions of this Act shall not apply
to any mining or mill site claim (A) for which a pat-
ent application was filed with the Secretary on or
before May 9, 1995.
TITLE III—SURFACE MANAGEMENT OF
MINERAL ACTIVITIES
SEC. 301. PURPOSE; APPLICABILITY; OPERATING AND REC-
LAMATION STANDARDS.
(a) PURPOSE.—It is the purpose of this title to pro-
vide for mineral entry, exploration, location and operations
pursuant to the general mining laws in a manner that will
not unduly hinder such activities or diminish rights, in-
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cluding but not limited to all statutory and common law
rights of access, obtained under the general mining laws
or other authorities, but will assure that such activities
are conducted in a manner that will prevent unnecessary
and undue degradation of nonmineral surface resources on
Federal lands. Compliance with the provisions of this title
shall constitute compliance with: (i) the final sentence of
subsection 302(b) of the Federal Land Policy and Man-
agement Act (43 U.S.C. 1732(b)); and (ii) any standard
related to the management of surface resources within the
National Forest System contained in or derived from the
Organic Administration Act (16 U.S.C. 473 et seq.), the
Multiple-Use Sustained-Yield Act of 1960 (16 U.S.C. 528
et seq.), the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1601 et seq.), or any
other law applicable to Federal lands subject to this title
within the National Forest System.
(b) APPLICABILITY.—This title shall apply only to
mineral activities on those Federal lands where the surface
estate is managed by the Bureau of Land Management
or the United States Forest Service.
(c) OPERATIONS.—All mineral activities on Federal
lands shall be conducted so as to prevent unnecessary and
undue degradation of Federal lands by complying with ap-
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plicable requirements of Federal and State environmental
protection laws, including but not limited to—
(1) the Atomic Energy Act of 1954 (42 U.S.C.
2011 et seq.);
(2) the Clean Air Act (42 U.S.C. 7401 et seq.);
(3) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.);
(4) the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.);
(5) the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.);
(6) the Federal Mine Safety and Health Act of
1977 (30 U.S.C. 801 et seq.);
(7) the Federal Water Pollution Control Act
(commonly referred to as the ‘‘Clean Water Act’’)
(33 U.S.C. 1251 et seq.);
(8) the Forest and Rangeland Renewable Re-
sources Planning Act of 1974 (16 U.S.C. 1600 et
seq.);
(9) the Migratory Bird Treaty Act (16 U.S.C.
703 et seq.);
(10) the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.);
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(11) the National Historic Preservation Act (16
U.S.C. 470 et seq.);
(12) title XIV of the Public Health Service Act
(commonly referred to as the ‘‘Safe Drinking Water
Act’’) (42 U.S.C. 300f et seq.);
(13) the Solid Waste Disposal Act (42 U.S.C.
6901 et seq.);
(14) the Toxic Substances Control Act (15
U.S.C. 2601 et seq.); and
(15) the Uranium Mill Tailings Radiation Con-
trol Act of 1978 (42 U.S.C. 7901 et seq.).
(d) RECLAMATION.—In order to prevent unnecessary
and undue degradation of surface resources, Federal lands
disturbed by mineral activities shall be reclaimed, to the
extent economically and technically practicable, in compli-
ance with the provisions of subsection 304(a).
(e) DESIGNATED LANDS.—Where any mineral activi-
ties are to be conducted on Federal lands administered
by the Bureau of Land Management or the Forest Service
specifically designated by any special Act of Congress that
applies a specific land management, resource protection
or reclamation standard (such as wild and scenic rivers
and designated wilderness) to such lands, such manage-
ment or protection standard shall apply to the extent of
any conflict with the provisions of this title.
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SEC. 302. AUTHORIZATION FOR MINERAL ACTIVITIES.
(a) IN GENERAL.—Except as otherwise provided in
subsections (b) and (c) of this section, no person may en-
gage in mineral activities on Federal lands unless that per-
son has filed a plan of operations with, and received ap-
proval of the plan from, the Secretary in accordance with
section 303.
(b) NOTICE REQUIRED.—
(1) A person may engage in mineral activities
on Federal lands that cause only minor, short term,
readily reclaimable impacts on surface resources, in-
cluding but not limited to initial exploratory test
hole drilling and road construction, only after filing
with the Secretary a notice of intent to conduct such
activities.
(2) Such notice shall include—
(A) the name and mailing address of the
operator;
(B) when applicable, the name of the min-
ing claim(s) or site(s), and serial number(s) as-
signed to the mining claims(s) or site(s) on
which mineral activities are proposed;
(C) a statement describing the activities
proposed and their location in sufficient detail
to locate the operations on the ground, and giv-
ing the approximate date when activities will
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begin. The statement shall include a description
and the location of any access routes to be con-
structed or improved and the type of equipment
to be used in their construction;
(D) a statement that reclamation of all
areas will be completed as required by sub-
section 301(d), and that mineral activities will
comply with the operations standard as re-
quired by subsection 301(c); and
(E) evidence of financial assurance as re-
quired by section 306.
(3) Failure of the operator to conduct mineral
activities in conformance with the notice and the re-
quirements of this title may cause the operator to be
subject to enforcement pursuant to section 308.
(4) The Secretary shall review the notice within
30 days of receipt. If the Secretary determines that
the proposed mineral activities will, or are likely to
cause more than minor, short term, readily reclaim-
able impacts on surface resources, the Secretary
shall provide a statement of reasons explaining why
the mineral activities cannot proceed under notice
and shall require in writing that the operator submit
a proposed plan of operations in accordance with the
requirements of this section. Failure of the Sec-
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retary to respond in writing within 30 days of re-
ceipt of the notice shall be deemed to be approval
of the mineral activities proposed in the notice.
(5) The Secretary shall establish by regulation
from time to time additional categories of mineral
activities which may be conducted under notice
based on the amount of surface to be disturbed, the
type of equipment to be used, the time required for
reclamation, and other relevant factors.
(c) OTHER MINERAL ACTIVITIES.—Notwithstanding
the provisions of subsections (a) and (b), any person may
conduct mineral activities on Federal lands which cause
only a minimal disturbance of surface resources, including
but not limited to claim location; exploration; geological,
geophysical or geochemical surveys; environmental base-
line monitoring; activities related to the gathering of data
related to the preparation or analysis of a notice or plan
of operations under this title, or required under any other
applicable Federal or State environmental law or regula-
tion; and other activities designated by the Secretary,
without filing a notice or plan of operations with the Sec-
retary.
(d) TRANSFER OF RIGHTS.—An operator may trans-
fer, assign or sell any rights associated with a notice with-
out approval by the Secretary: Provided, That the succes-
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sor in interest agrees in writing to assume the liabilities
and reclamation responsibilities established under sub-
section (b) and provide evidence of financial assurance as
required under section 306. The transfer, assignment or
sale shall not become effective prior to the filing of such
writing and evidence of financial assurance with the Sec-
retary. The financial assurance of the transferee shall be
substituted for the assurance previously submitted by the
transferor and the financial assurance of the transferor
shall be fully released.
SEC. 303. PLAN OF OPERATIONS; CONTENT, REVIEW AND
APPROVAL.
(a) PLAN OF OPERATIONS REQUIREMENTS.—A plan
of operations required under this title shall contain—
(1) the name and mailing address of the opera-
tor;
(2) when applicable, the name of the mining
claim(s) or site(s), and serial number(s) assigned to
the mining claim(s) or site(s) on which mineral ac-
tivities are proposed;
(3) a general description of the mineral activi-
ties proposed, including the anticipated periods dur-
ing which the proposed mineral activities will occur;
(4) a map showing existing and/or proposed
routes of surface access, or other means of access,
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and identifying areas where surface disturbance will
occur;
(5) information describing the land and water
resources of the area expected to be disturbed by the
proposed mineral activities and any proposed mitiga-
tion measures necessary to comply with the require-
ments of this title;
(6) a reclamation plan which includes proposed
measures to reclaim Federal lands disturbed by the
proposed mineral activities as required under sub-
section 301(d);
(7) evidence of adequate financial assurance as
required under section 306; and
(8) a monitoring plan to assure compliance with
the requirements of the plan of operations.
(b) PLAN
OF OPERATIONS REVIEW.—A proposed
plan of operations shall be submitted to the Secretary, who
shall promptly acknowledge receipt thereof to the opera-
tor. The Secretary shall promptly review the proposed plan
of operations and shall notify the operator within 30
days—
(1) that the plan of operations has been ap-
proved as submitted;
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(2) of all changes in, or additions to the pro-
posed plan of operations necessary to comply with
the requirements of this title; or
(3) that a specified reasonable amount of time
is necessary to complete the review, setting forth the
circumstances which justify the additional time.
(c) MINERAL ACTIVITIES PENDING REVIEW.—Any
operator who has submitted a plan of operations under
this section may continue to conduct mineral activities
otherwise authorized pursuant to subsections (b) and (c)
of section 302 within the geographic area covered by the
proposed plan of operations pending its approval.
(d) PLAN OF OPERATIONS APPROVAL.—(1) The Sec-
retary shall approve a proposed plan of operations within
a reasonable period of time if—
(A) the proposed plan of operations substan-
tially complies with the requirements of this title;
and
(B) the applicant has complied with the re-
quirements of section 306 concerning financial as-
surance.
(2) If, after review, the Secretary determines that a
proposed plan of operations will not substantially comply
with the requirements of this title, the Secretary shall
specify all deficiencies in the proposed plan, shall request
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the operator to modify the proposed plan to comply with
the requirements of this title and shall specify all nec-
essary modifications to the proposed plan.
(e) MODIFICATIONS TO AN APPROVED PLAN OF OP-
ERATIONS.—
(1) MINOR MODIFICATIONS.—At any time dur-
ing which mineral activities are being conducted
under an approved plan of operations, an operator
may make minor modifications to the approved plan
of operations by notifying the Secretary. Failure of
the Secretary to respond in writing within 30 days
of receipt of the proposed minor modification shall
be deemed to be approval of the minor modification.
For purposes of this title, a ‘‘minor modification’’ is
a change to the approved plan of operations that is
not likely to result in significant impacts to surface
resources different from those previously considered
in the approved plan of operations.
(2) REVIEW OF MINOR MODIFICATIONS.—If the
Secretary determines that a proposed minor modi-
fication may be significant, the Secretary shall pro-
vide a statement of reasons and may require the op-
erator to submit a significant modification to the
plan of operations pursuant to paragraph (3) of this
subsection.
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(3) SIGNIFICANT MODIFICATION.—At any time
during activities under an approved plan of oper-
ations, the operator may propose a significant modi-
fication to the approved plan of operations. A sig-
nificant modification must be submitted, reviewed
and approved in the same manner as a plan of oper-
ations under this section, except that the modifica-
tion need not include information required under
subsection 303(a) if the modification requires no
change to such information: Provided, however, That
approval of such modification shall neither require
nor be denied or conditioned upon retrofit, redesign,
reconstruction, closure or change in the operation of
any facility, structure or mineral activity previously
approved. For purposes of this title, a ‘‘significant
modification’’ is a change to the approved plan of
operations which is likely to result in significant im-
pacts to surface resources different from those pre-
viously considered in the approved plan of oper-
ations.
(4) REQUEST
BY
SECRETARY.—At any time
during which mineral activities are being conducted
under an approved plan of operations, the Secretary
may request that an operator submit a modification
to the approved plan of operations together with a
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written determination that such modification is nec-
essary to prevent unnecessary and undue degrada-
tion of Federal lands as required by section 301.
The Secretary’s determination that a modification is
necessary shall be subject to notice to the operator
and a right to a hearing at the request of the opera-
tor. If the Secretary has requested a modification
under this paragraph, mineral activities may con-
tinue in accordance with the approved plan of oper-
ations until the modification is submitted, reviewed,
and approved.
(f) TERM.—An approved plan of operations shall re-
main in effect as approved until the mineral activities sub-
ject to the approved plan of operations are completed or
until the plan of operations is modified.
(g) TRANSFER OF RIGHTS.—An operator may trans-
fer, assign, or sell any rights associated with an approved
plan of operations without approval by the Secretary: Pro-
vided, That the successor in interest agrees in writing to
assume the liabilities and reclamation responsibilities es-
tablished by the approved plan of operations and provide
evidence of financial assurance as required under section
306. The transfer, assignment, or sale shall not become
effective prior to the filing of such writing and evidence
of financial assurance with the Secretary. The financial
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assurance of the transferee shall be substituted for the as-
surance previously submitted by the transferor, and the
financial assurance of the transferor shall be fully re-
leased.
SEC. 304. RECLAMATION PLAN.
A reclamation plan submitted with a proposed plan
of operations pursuant to section 303 shall include appro-
priate measures to comply with substantive reclamation
requirements of the State in which the proposed mineral
activities will be located to the extent that those require-
ments are not in conflict with the purposes of the general
mining laws and this Act, and the applicable provisions
of State and Federal environmental protection laws, in-
cluding those Federal laws listed in subsection 301(c). A
proposed reclamation plan that complies with such State
and Federal requirements shall be deemed sufficient to
prevent unnecessary and undue degradation and to comply
with subsection 301(d), and certification or other approval
issued by a State or Federal agency of compliance with
such laws shall be deemed compliance with this section.
SEC. 305. TRANSITION RULES.
(a) APPLICABILITY
TO EXISTING OPERATIONS.—
Mineral activities for which an operator is authorized to
proceed under notice or for which a plan of operations has
been approved prior to the date of enactment of this Act
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shall continue under the terms and conditions of such no-
tice or plan. Notices which were filed within 30 days of
the effective date of enactment, and plans of operations
which have been submitted before but not approved on the
date of enactment of this Act, shall be reviewed based on
the law existing on the day prior to the date of enactment
of this Act. Significant modifications to approved plans
of operations shall be submitted, reviewed, and approved
pursuant to the applicable requirements of this title: Pro-
vided, however, That approval of such modifications shall
neither require nor be conditioned upon retrofit, redesign,
reconstruction or change in the operation of any facility,
structure or mineral activity previously approved.
(b) FINANCIAL ASSURANCE AND ENFORCEMENT.—
Notwithstanding the provisions of subsection (a), the en-
forcement provisions of section 308 shall apply to all min-
eral activities on the effective date of this Act and, within
one year after the effective date of this Act, all operators
operating under notice or a plan of operations shall submit
to the Secretary evidence of adequate financial assurance
as may be required under section 306.
SEC. 306. FINANCIAL ASSURANCE.
(a) EVIDENCE
OF
FINANCIAL
ASSURANCE.—(1)
Prior to the commencement of any mineral activities re-
quiring a plan of operations, an operator shall furnish evi-
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(b) REVIEW AND ADJUSTMENT.—Not later than five
years after the financial assurance is provided, and each
five years thereafter, or at the request of the operator,
the Secretary shall review its adequacy and may increase
or decrease the amount of the financial assurance based
upon changed circumstances, including a determination by
the Secretary that a portion of the reclamation has been
completed.
(c) FINANCIAL ASSURANCE FOR INCREMENTS.—Fi-
nancial assurance for increments of mineral activities may
be authorized if the financial assurance for an increment
covers all reclamation costs within the area covered by the
notice or plan of operations for that increment. After rec-
lamation is completed, an operator may apply for, and the
Secretary may grant, release of the financial assurance for
the completed increment.
SEC. 307. FEDERAL AND STATE AUTHORITY AND COOPERA-
TION.
(a) COOPERATIVE AGREEMENTS.—
(1) Upon request from a State, the Secretary
shall enter into a cooperative agreement with that
State for joint administration of the requirements of
this title relating to mineral activities requiring a no-
tice or plan of operations, financial assurances, rec-
lamation, inspection and enforcement if the Sec-
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termination of the agreement, upon a determination
that State performance under the agreement is not
in substantial compliance with the agreement or the
requirements of this title, and (ii) prior to taking
any such action, the Secretary shall provide notice to
the State allowing the State a reasonable time to
come into substantial compliance.
(b) 
EXISTING
AGREEMENTS.—Any 
cooperative
agreement or memorandum of understanding between the
Secretary and any State related to the surface manage-
ment of mineral activities on Federal lands subject to this
Act in existence on the date of enactment of this Act shall
continue in force unless the Secretary determines such
agreement or memorandum of understanding is inconsist-
ent with the provisions of this title.
SEC. 308. ENFORCEMENT, ADMINISTRATIVE AND JUDICIAL
REVIEW.
(a) INSPECTIONS.—The Secretary, or a State if the
State has entered into a cooperative agreement pursuant
to section 307, shall conduct a minimum of one complete
inspection each year of mineral activities for which a plan
of operations or notice is required under section 302 to
ensure compliance with the terms of the plan or notice.
The operator shall grant access at reasonable times and
under reasonable circumstances to the appropriate des-
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ignated representative of the Secretary or State when re-
quested. The Secretary or the State must give reasonable
notice to the operator before commencing any inspection.
The Secretary or the State may inspect more frequently,
if warranted, and may modify the inspection schedule as
necessary for mineral activities that are conducted on a
seasonal basis.
(b) COMPLIANCE ORDERS.—
(1) Whenever, on the basis of any inspection
authorized by subsection (a), the Secretary finds
that the operator is in violation of any term or con-
dition of a plan of operations or notice, the Sec-
retary may issue an order requiring the operator to
comply with such requirement, or may request the
Attorney General to bring a civil action in accord-
ance with subsection (c): Provided, however, That
the Secretary shall not request commencement of a
civil action if (i) the violation is corrected within 30
days, and (ii) the violation is neither causing nor
likely to cause irreparable harm to the environment
or a threat to human health or safety.
(2) Any order issued under this subsection shall
state with reasonable specificity the nature of the
violation and shall require compliance within a rea-
sonable period of time specified in the order. The
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Secretary may extend the time specified for compli-
ance for a reasonable period, considering the serious-
ness of the violation and any good faith efforts to
comply with the terms and conditions of the plan of
operation.
(c) CIVIL ACTIONS.—At the request of the Secretary,
the Attorney General may institute a civil action in the
district court of the United States for the district in which
the affected operation is located for a temporary restrain-
ing order, injunction, civil penalties as provided in sub-
section (d), or other appropriate remedy, when the opera-
tor (i) violates or refuses to comply with an order issued
by the Secretary under subsection (b), or (ii) refuses to
allow an inspection authorized under subsection (a).
(d) CIVIL PENALTIES.—An operator that fails to
comply with the requirements applicable to mineral activi-
ties conducted under notice pursuant to section 302 or the
terms or conditions of a plan of operations approved under
section 302, after notice of such failure and expiration of
a reasonable period allowed for abatement as specified
pursuant to subsection (b), is subject to a civil penalty
of not more than $5,000 for each day of the continuance
of such noncompliance. In determining the amount of the
penalty, the Court shall consider the existence of previous
violations at the operation, the seriousness of the violation,
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the likelihood of irreparable harm to the environment and
any hazard to the health or safety of the public, whether
the operator was negligent, and the good faith of the oper-
ator.
(e) ADMINISTRATIVE REVIEW.—
(1) Any operator issued a compliance order
under this section may apply to the Secretary for re-
view of the order within 30 days of receipt thereof,
or as the case may be, within 30 days of such order
being modified.
(2) The Secretary shall provide an opportunity
for a hearing on the record at the request of the op-
erator.
(3) Pending completion of any review proceed-
ings under this subsection, the operator may file
with the Secretary a written request that the Sec-
retary grant temporary relief from any order issued
under this section, supported by a detailed statement
of reasons for such relief. The Secretary shall expe-
ditiously issue an order or decision granting or deny-
ing such relief.
(f) FINAL AGENCY ACTION.—Final agency action
under this title shall be subject to judicial review pursuant
to 5 U.S.C. 701–706 and 28 U.S.C. 1331.
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SEC. 309. SAVINGS CLAUSE.
The provisions of this title shall supersede any provi-
sion of the general mining laws or the Federal Land Policy
and Management Act, and any standard related to the
management of surface resources within the National For-
est System contained in or derived from the Organic Ad-
ministration Act (16 U.S.C. 473 et seq.), the Multiple-
Use Sustained-Yield Act of 1960 (16 U.S.C. 528 et seq.),
the Forest and Rangeland Renewable Resources Planning
Act of 1974 (16 U.S.C. 1601 et seq.), or any other law
applicable to Federal lands subject to this title within the
National Forest System, and any rules promulgated under
such laws, only to the extent that such laws or rules con-
flict or are inconsistent with the provisions of this title.
Orders, rules and regulations in effect as of the date of
enactment of this Act which govern surface management
of mineral activities shall remain in effect under the au-
thority of this title.
TITLE IV—ROYALTY
SEC. 401. ROYALTY.
(a) IN GENERAL.—The production and sale of
locatable minerals (including associated minerals) from
any unpatented mining claim (other than those from Fed-
eral lands to which subsection 204(b) applies) or any min-
ing claim patented under subsection 204(a) shall be sub-
ject to a royalty of three percent of the net proceeds from
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such production mined and sold from such claim: Pro-
vided, That for any mine with an annual gross yield of
less than $500,000 the royalty shall be waived: And pro-
vided further, That no royalty shall be payable pursuant
to this title with respect to minerals processed at a facility
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 Devel-
opment Act of 1974 with respect to any portion of such
facility. The obligation to pay royalties hereunder shall ac-
crue only upon the sale of locatable minerals or mineral
products produced from a mining claim subject to such
royalty, and not upon the stockpiling of the same for fu-
ture processing.
(b) DEFINITIONS.—For the purposes of this title, the
term—
(1) ‘‘gross yield’’ shall mean—
(A) in the case of sales of gold and silver
ore, concentrates or bullion, or the sales of
other locatable minerals in the form of ore or
concentrates, the actual proceeds of sale of such
ore, concentrates or bullion;
(B) in the case of sales of beneficiated
products from locatable minerals other than
those subject to section 401(b)(1)(A), such as
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cathode, anode or copper rod or wire, or other
products fabricated from the locatable minerals,
the gross income from mining derived from the
first commercially marketable product deter-
mined in the same manner as under section 613
of the Internal Revenue Code;
(C) in the event that ore, concentrates,
beneficiated or fabricated products or locatable
minerals are used or consumed and are not sold
in an arms length transaction, the reasonable
fair market value of the ore, concentrates,
beneficiated or fabricated products at the mine
or wellhead determined from the first applicable
of the following:
(i) published or other competitive sell-
ing prices of locatable minerals of like kind
and grade;
(ii) any proceeds of sale;
(iii) value received in exchange for any
thing or service; or
(iv) the value of any locatable min-
erals in kind or used or consumed in a
manufacturing process or in providing a
service; and
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(D) without limiting the foregoing, the
profits or losses incurred in connection with for-
ward sales, futures or commodity options trad-
ing, metal loans, or any other price hedging or
speculative activity or arrangement shall not be
included in gross yield.
(2) ‘‘net proceeds’’ shall mean gross yield, less
the following deductions for costs incurred prior to
sale or value determination, and none other:
(A) the actual cost of extracting the
locatable mineral;
(B) the actual cost of transporting the
locatable mineral from the claim to the place or
places of reduction, beneficiation, refining, and
sale;
(C) 
the 
actual 
cost 
of 
reduction,
beneficiation, refining, and sale of the locatable
mineral.
(D) the actual cost of marketing and deliv-
ering the locatable mineral and the conversion
of the locatable mineral into money;
(E) the actual cost of maintenance and re-
pairs of—
(i) all machinery, equipment, appara-
tus, and facilities used in the mine;
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(ii) all crushing, milling, leaching, re-
fining, smelting, and reduction works,
plants, and facilities; and
(iii) all facilities and equipment for
transportation;
(F) the actual cost for support personnel
and support services at the mine site, including
without limitation, accounting, assaying, draft-
ing and mapping, computer services surveying,
housing, camp, and office expenses, safety, and
security;
(G) the actual cost of engineering, sam-
pling, and assaying pertaining to development
and production;
(H) the actual cost of permitting, reclama-
tion, environmental compliance and monitoring;
(I) the actual cost of fire and other insur-
ance on the machinery, equipment, apparatus,
works, plants, and facilities mentioned in sub-
paragraph (E);
(J) depreciation of the original capitalized
cost of the machinery, equipment, apparatus,
works, plants, and facilities listed in subpara-
graph (E). The annual depreciation charge shall
consist of amortization of the original cost in
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the manner consistent with the Internal Reve-
nue Code of 1986, as amended from time to
time. The probable life of the property rep-
resented by the original cost must be considered
in computing the depreciation charge;
(K) all money expended for premiums for
industrial insurance, and the owner paid cost of
hospital and medical attention and accident
benefits and group insurance for all employees
engaged in the production or processing of
locatable minerals;
(L) all money paid as contributions or pay-
ments under State unemployment compensation
law, all money paid as contributions under the
Federal Social Security Act, and all money paid
to State government in real property taxes and
severance or other taxes measured or levied on
production, or Federal excise tax payments and
payments as fees or charges for use of the Fed-
eral lands from which the locatable minerals are
produced; and
(M) the actual cost of the developmental
work in or about the mine or upon a group of
mines when operated as a unit; and
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(c) LIMITATIONS AND ALLOCATIONS OF NET PRO-
CEEDS, GROSS YIELD, AND ALLOWABLE COSTS.—
(1) The several deductions listed in paragraph
(b)(2) are intended to allow a reasonable allowance
for overhead: Provided, That they do not include any
expenditures for salaries, or any portion of salaries,
of any person not actually engaged in—
(A) the working of the mine;
(B) the operating of the leach pads, ponds,
plants, mills, smelters, or reduction works;
(C) the operating of the facilities or equip-
ment for transportation; or
(D) superintending the management of any
of those operations described in subparagraphs
(A)–(C).
(2) Ores or solutions of locatable minerals may
be extracted from mines comprised of mining claims
and lands other than mining claims. Ore or solutions
of locatable minerals may be commingled with ores
or solutions from lands other than mining claims:
Provided, That the operator shall first sample, weigh
or measure, and assay the same in accordance with
accepted industry standards. In the event of such
production from mines comprised of mining claims
and other lands and/or in the event of commingling
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as provided under this paragraph, gross yield, allow-
able costs and net proceeds for royalty purposes
shall be allocated in proportion to mineral products
recovered from the mining claims in accordance with
accepted industry standards.
(d) LIABILITY
FOR
ROYALTY
PAYMENTS.—The
owner or co-owners of a mining claim subject to the roy-
alty required under this section shall be liable for royalty
due to the United States on locatable minerals produced
and sold during the period of ownership to the extent of
the interest in such claim owned. As used in this sub-
section, ‘‘owner’’ or ‘‘co-owner’’ shall mean the person or
persons owning the right to mine locatable minerals from
such claim and receiving the net proceeds of such sale.
Any person who makes any royalty payment attributable
to the interest of the owner or co-owners liable therefor
shall not become liable to the United States for such roy-
alty as a result of making such payment on behalf of such
owner or co-owners.
(e) TIME AND MANNER OF PAYMENT.—
(1) Royalty payments for production from any
mining claim subject to the royalty required in this
section shall be due to the United States at the end
of the month following the end of the calendar quar-
ter in which the net proceeds from the sale of such
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production are received by the owner or co-owners.
Royalty payments may be made based upon good
faith estimates of the gross yield, net proceeds and
the 
quantity 
of 
ore, 
concentrates, 
or 
other
beneficiated or fabricated products of locatable min-
erals, subject to adjustment when the actual annual
gross yield, net proceeds and quantity are deter-
mined by the owner of the mining claim or site or
co-owners.
(2) Each royalty payment or adjustment shall
be accompanied by a statement containing—
(A) the name and Bureau of Land Man-
agement serial number of the mining claim or
claims from which ores, concentrates, solutions
or beneficiated products of locatable minerals
subject to the royalty required in this section
were produced and sold for the period covered
by such payment or adjustment;
(B) the estimated (or actual, if deter-
mined) quantity of such ore, concentrates, solu-
tions or beneficiated or fabricated products pro-
duced and sold from such mining claim or
claims for such period;
(C) the estimated (or actual, if deter-
mined) gross yield from the production and sale
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of 
such 
ore, 
concentrates, 
solutions 
or
beneficiated products for such period;
(D) the estimated (or actual, if deter-
mined) net proceeds from the production and
sale of such ores, concentrates, solutions or
beneficiated products for such period, including
an itemization of the applicable deductions de-
scribed in paragraph (b)(2); and
(E) the estimated (or actual, if deter-
mined) royalty due to the United States, or ad-
justment due to the United States or such
owner or co-owners, for such period.
(3) In lieu of receiving a refund under sub-
section (g), the owner or co-owners may elect to
apply any adjustment due to such owner or co-own-
ers as an offset against royalties due from such
owner or co-owners to the United States under this
Act, regardless of whether such royalties are due for
production and sale from the same mining claim or
claims.
(f) RECORDKEEPING
AND REPORTING REQUIRE-
MENTS.—
(1) An owner, operator, or other person directly
involved in the conduct of mineral activities, trans-
portation, purchase, or sale of locatable minerals,
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concentrates, or products derived therefrom, subject
to the royalty required in this section, through the
point of royalty computation, shall establish and
maintain any records, make any reports, and provide
any information that the Secretary may reasonably
require for the purposes of implementing this section
or determining compliance with regulations or orders
under this section. Upon the request of the Sec-
retary when conducting an audit or investigation
pursuant to subsection (h), the appropriate records,
reports, or information which may be required by
this section shall be made available for inspection
and duplication by the Secretary.
(2) Records required by the Secretary under
this section shall be maintained for three years after
the records are generated unless the Secretary noti-
fies the record holder that he or she has initiated an
audit or investigation specifically identifying and in-
volving such records and that such records must be
maintained for a longer period. When an audit or in-
vestigation is under way, such records shall be main-
tained until the earlier of the date that the Secretary
releases the record holder of the obligation to main-
tain such records or the date that the limitations pe-
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riod applicable to such audit or investigation under
subsection (h) expires.
(g) INTEREST ASSESSMENTS.—In any case in which
royalty payments are not received by the Secretary on the
date that such payments are due, or when such payments
are less than the amount due, the Secretary shall charge
interest on such late payments computed at the rate pub-
lished by the Department of the Treasury as the ‘‘Treas-
ury Current Value of Funds Rate.’’ In the case of an
underpayment or partial payment, interest shall be com-
puted and charged only on the amount of the deficiency
and not on the total amount, and only for the number
of days such payment is late. No other late payment or
underpayment charge or penalty shall be charged. In any
case in which royalty payments are made in excess of the
amount due, or amounts are held by the Secretary pending
the outcome of any appeal in which the Secretary does
not prevail, the Secretary shall promptly refund such over-
payments or pay such amounts to the person or persons
entitled thereto, together with interest thereon for the
number of days such overpayment or amounts were held
by the Secretary, with the addition of interest charged
against the United States computed at the rate published
by the Department of the Treasury as the ‘‘Treasury Cur-
rent Value of Funds Rate.’’
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(h) AUDITS, PAYMENT
DEMANDS
AND
LIMITA-
TIONS.—
(1) The Secretary may conduct, after notice,
any audit reasonably necessary and appropriate to
verify the payments required under this section.
(2) Any billing or demand letter for royalty due
on locatable minerals produced and sold from any
mining claim subject to royalty required by this sec-
tion must be sent or issued not later than three
years after the date such royalty was due and must
specifically identify the production involved, the roy-
alty allegedly due and the basis for the claim. No ac-
tion, proceeding or claim for royalty due on locatable
minerals produced and sold, or relating to such pro-
duction, may be brought by the United States, in-
cluding but not limited to any claim for additional
royalties or claim of the right to offset the amount
of such additional royalties against amounts owed to
any person by the United States, unless judicial suit
or administrative proceedings are commenced to re-
cover specific amounts claimed to be due prior to the
expiration of three years from the date such royalty
is alleged to have been due.
(i) TRANSITIONAL RULES.—Any mining claim for
which a patent is issued pursuant to subsection 204(b)
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shall not be subject to the obligation to pay the royalty
pursuant to this section. Royalty payments for any claim
processed under subsection 204(b) shall be suspended
pending final determination of the right to patent. For
any claim that does not qualify for the issuance of a patent
under subsection 204(b), royalties shall be payable under
this section on—
(1) previous production between the date of en-
actment of this Act and the date of such final deci-
sion denying the issuance of a patent, plus interest
computed at the rate published by the Department
of the Treasury as the ‘‘Treasury Current Value of
Funds Rate’’; and
(2) production subsequent to the date of such
decision.
(j) DISBURSEMENT
OF REVENUES.—The receipts
from royalties collected under this section shall be dis-
bursed as follows:
(1) One-half of such receipts shall be paid into
the Treasury of the United States and deposited as
miscellaneous receipts.
(2) One-quarter of such receipts shall be paid
by the Secretary of the Treasury to the State in
which the mining claim from which production oc-
curred is located.
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(3) One-quarter of such receipts shall be paid
into a State Fund or the Federal Fund in accord-
ance with title V; until termination as provided in
section 506.
(k) NO IMPLIED COVENANTS.—The owner of a min-
ing claim subject to the provisions of this title shall have
no obligation, express or implied, to explore for, develop,
produce or market locatable minerals as a result of the
obligation to pay a royalty hereunder, and the timing, na-
ture, extent and manner of exploring, developing, mining
and marketing such locatable minerals shall be in the sole
discretion of the claim owner.
TITLE V—ABANDONED LOCATABLE MINERALS
MINE RECLAMATION PROGRAM
SEC. 501. ABANDONED LOCATABLE MINERALS MINE REC-
LAMATION FUND.
(a) STATE FUND.—Any State within which proceeds
are collected pursuant to title IV from a mining claim and
which wishes to become eligible to receive such proceeds
allocated by paragraph 401(j)(3) shall establish and main-
tain an interest-bearing abandoned locatable mineral mine
reclamation fund (hereinafter referred to in this title as
‘‘State Fund’’) to accomplish the purposes of this title.
(b) FEDERAL FUND.—There is established on the
books of the Treasury of the United States an interest-
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bearing fund to be known as the Abandoned Locatable
Minerals Mine Reclamation Fund (hereinafter referred to
in this title as ‘‘Federal Fund’’) which shall consist of pro-
ceeds allocated by paragraph 401(j)(3) from mining
claims in a State where a State Fund has not been estab-
lished or maintained under subsection (a).
SEC. 502. ALLOCATION AND PAYMENTS.
(a) STATE FUND.—Proceeds collected pursuant to
title IV and allocated by paragraph 401(j)(3) shall be paid
by the Secretary of the Treasury to the State Fund estab-
lished pursuant to subsection 501(a) for the State where
the mining claim from which the production occurred is
located. Payments to States under this subsection with re-
spect to any moneys received by the United States, shall
be made not later than the last business day of the month
in which such moneys are warranted by the United States
Treasury to the Secretary of the Interior as having been
received, except for any portion of such moneys which is
under challenge, which shall be placed in a suspense ac-
count pending resolution of such challenge. Such warrants
shall be issued by the United States Treasury not later
than 10 days after receipt of such moneys by the Treas-
ury. Moneys placed in a suspense account which are deter-
mined to be due the United States shall be payable to a
State Fund not later than fifteen days after such challenge
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is resolved. Any such amount placed in a suspense account
pending resolution shall bear interest until the challenge
is resolved. In determining the amount of payments to
State Funds under this section, the amount of such pay-
ments shall not be reduced by any administrative or other
costs incurred by the United States.
(b) FEDERAL FUND.—Proceeds collected pursuant to
title IV, and allocated by paragraph 401(j)(3), from min-
ing claims located in the State which has not established
or maintained a State Fund, and such proceeds from min-
ing claims located in a State for which the Secretary’s au-
thority has expired under subsection 506(a), shall be cred-
ited to the Federal Fund and distributed in accordance
with subsection (c).
(c) TRANSITION.—Prior to the time a State estab-
lishes a State Fund pursuant to subsection 501(a), any
proceeds collected from a mining claim within such State
shall be deposited into the Federal Fund and allocated to
such State. Once a State establishes a State Fund under
subsection 501(a), the State allocation in the Federal
Fund with accrued interest shall be paid by the Secretary
of the Treasury to the State Fund in accordance with sub-
section (a). Commencing three years after the date of en-
actment of this Act, the Secretary of the Treasury shall
distribute proceeds then accrued or which are thereafter
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credited to the Federal Fund equally among all States
which maintain a State Fund established under subsection
501(a), and for which the Secretary of the Treasury’s au-
thority has not expired under subsection 506(a).
SEC. 503. ELIGIBLE AREA.
(a) IN GENERAL.—Subject to subsection (b), lands
and water eligible for reclamation under this title shall be
Federal lands that—
(1) have been adversely affected by past min-
eral activities on lands abandoned and left inad-
equately reclaimed prior to the date of enactment of
this Act; and
(2) for which the State determines there is no
identifiable party with a continuing reclamation re-
sponsibility under State or Federal laws.
(b) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—
The following areas shall not be eligible for expenditures
from a State Fund:
(1) Any area subject to a plan of operations
submitted or approved prior to, on or after the date
of enactment of this Act which includes remining or
reclamation of the area adversely affected by past
locatable mineral activities.
(2) Any area affected by coal mining eligible for
reclamation expenditures pursuant to section 404 of
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the Surface Mining Control and Reclamation Act
(30 U.S.C. 1234).
(3) Any area designated for remedial action
pursuant to the Uranium Mill Tailings Radiation
Control Act of 1978 (42 U.S.C. 7912).
(4) Any area that was listed on the National
Priorities List pursuant to the Comprehensive Envi-
ronmental Response, Compensation and Liability
Act of 1980 (42 U.S.C. 9605) prior to the date of
enactment of this Act, or where the Environmental
Protection Agency has initiated or caused to be initi-
ated a response action pursuant to that Act.
SEC. 504. USES AND OBJECTIVES OF FUNDS.
(a) USE OF FUNDS.—Moneys in a State Fund shall
be used for the reclamation of eligible areas. For purposes
of this section, reclamation includes—
(1) backfilling, fencing, sealing, or otherwise
controlling abandoned underground mine entries to
protect public health and safety;
(2) abatement, treatment or control of water
pollution;
(3) 
shaping, 
grading, 
contouring 
and
revegetation of land to prevent erosion and sedi-
mentation, or to enhance fish and wildlife habitat;
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(4) removal or control of toxic or hazardous
materials;
(5) analysis, curation and preservation of struc-
tures, buildings, sites or objects listed or eligible for
listing pursuant to the National Historic Preserva-
tion Act (16 U.S.C. 470a); and
(6) control or reclamation of surface subsidence
due to abandoned underground mines.
(b) PRIORITIES.—Expenditures of moneys from a
State Fund shall reflect the following priorities in the
order stated, but shall not preclude, where feasible and
appropriate, a combination of these priorities for cost-ef-
fective reclamation:
(1) The protection of public health, safety, gen-
eral welfare and property from extreme danger from
the adverse effects of past mineral activities.
(2) The protection of public health, safety, and
general welfare from the adverse effects of past min-
eral activities.
(c) LIABILITY.—No State, or a contractor for such
State engaged in approved reclamation work under this
title, or any other entity authorized by a State to conduct
approved reclamation activities, shall be liable under any
provision of Federal law for any costs or damages as a
result of action taken or omitted in the course of carrying
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out reclamation pursuant to this section. This subsection
shall not preclude liability for costs and damages as a re-
sult of gross negligence or intentional misconduct. For
purposes of the preceding sentence, reckless, willful or
wanton misconduct shall constitute gross negligence.
SEC. 505. REPORT TO CONGRESS.
Each year, each State with a State Fund under sub-
section 501(a) shall submit a report to the Congress pro-
viding an accounting of the Fund, including identifying
sites for which moneys in the Fund have been spent dur-
ing the preceding year and sites for which moneys shall
be allocated in the following year, the amounts spent or
expected to be spent on each such site, and an estimate
of the number of eligible areas that remain to be reclaimed
in the State.
SEC. 506. SUNSET PROVISIONS.
(a) TERMINATION OF AUTHORITY.—The Secretary of
the Treasury’s authority to allocate funds to a State Fund
under section 502 shall expire on the date that the State
submits an annual report to the Congress pursuant to sec-
tion 505 which reports that there are no areas in the State
which remain to be reclaimed.
(b) TERMINATION OF FUND.—Upon the termination
of authority as provided in subsection (a) with respect to
all State Funds, the Federal Fund shall also be termi-
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nated, and all proceeds thereafter remaining in the Fed-
eral Fund shall be paid into the Treasury of the United
States and deposited as miscellaneous receipts.
TITLE VI—ADMINISTRATIVE PROVISIONS
SEC. 601. EFFECTIVE DATE.
The provisions of this Act shall take effect on the
date of enactment of this Act, except as otherwise provided
in this Act.
SEC. 602. EFFECT ON FEDERAL AND STATE LAWS.
(a) EFFECT ON THE GENERAL MINING LAWS.—The
provisions of this Act shall supersede the general mining
laws only to the extent such laws conflict with the require-
ments of this Act. Where no such conflict exists, the gen-
eral mining laws, including all judicial and administrative
decisions interpreting them, shall remain in full force and
effect.
(b) EFFECT
ON
OTHER
FEDERAL
AND
STATE
LAWS.—Except as provided in subsection (a), nothing in
this Act shall be construed—
(1) as superseding, modifying, amending or re-
pealing any other provision of Federal law, State law
or Federal or State regulation enacted pursuant
thereto, not expressly superseded, modified, amended
or repealed;
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(2) without limiting the foregoing, as affecting
or intended to affect or in any way interfere with or
modify the laws of the States relating to the owner-
ship, control, appropriation, use and distribution of
ground or surface waters or the regulation by States
of surface or ground water quality; and
(3) as affecting or modifying in any way the
rights, obligations or liabilities of any person under
other provision of law.
SEC. 604. SEVERABILITY.
If any provision of this Act or the applicability there-
of to any person or circumstances is held invalid, the re-
mainder of this Act and the application of such provision
to other persons or circumstances shall not be affected
thereby.
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