claims, or section 2337 of the Revised Statutes (30 
U.S.C. 42) for mill site claims. 
(6) The term ‘‘general mining laws’’ means 
those provisions of law that generally comprise chap-
ters 2, 12A, and 16, and sections 161 and 162, of 
title 30, United States Code. 
(7) The term ‘‘Fund’’ means the Abandoned 
Minerals Mine Reclamation Fund. 
SEC. 3. SOURCE OF REVENUES FOR ABANDONED MINE 
CLEANUP. 
(a) RECLAMATION FEE.— 
(1) FEE
IMPOSED.—Any person producing 
hardrock 
minerals 
from 
a 
mine 
within 
an 
unpatented mining claim or a mine on land that was 
patented under the general mining laws shall pay a 
reclamation fee to the Secretary under this section. 
(2) FEE AS PERCENTAGE OF NET PROCEEDS.— 
The amount of the fee under this section shall be 
equal to a percentage of the net proceeds derived 
from the mine. The percentage shall be based upon 
the ratio of the net proceeds to the gross proceeds 
related to mineral production from the mine in ac-
cordance with the following table:
Net proceeds as percentage 
Rate of fee as percentage 
of gross proceeds 
of net proceeds 
Less than 10 ......................................................................................
2.00 
10 or more but less than 18 ..............................................................
2.50 
18 or more but less than 26 ..............................................................
3.00 
26 or more but less than 34 ..............................................................
3.50 
34 or more but less than 42 ..............................................................
4.00 
42 or more but less than 50 ..............................................................
4.50 
50 or more .........................................................................................
5.00 
(b) EXEMPTION.—Gross proceeds of less than 
$500,000 from minerals produced in any calendar year 
shall be exempt from the reclamation fee under this sec-
tion for that year if such proceeds are from one or more 
mines located in a single patented claim or on two or more 
contiguous patented claims. 
(c) PAYMENT.—The amount of all fees payable under 
this section for any calendar year shall be paid to the Sec-
retary within 60 days after the end of such year. 
(d) DEPOSIT OF REVENUES.—The Secretary shall 
deposit amounts received under subsection (c) in the 
Abandoned Minerals Mine Reclamation Fund. 
(e) RELATION TO STATE FEES.—Nothing in this Act 
shall be construed to require a reduction in, or otherwise 
affect, a similar fee provided for under State law. 
(f) REDUCTION OF FEES.—The Secretary shall re-
duce a fee required by this section by an amount equal 
to a royalty paid pursuant to an Act of Congress that pro-
vides for crediting to the Fund of royalties paid to the 
Secretary with respect to production of hardrock minerals.
(g) EFFECTIVE DATE.—This section shall take effect 
with respect to hardrock minerals produced after Decem-
ber 31, 2004, except that subsection (f) shall take effect 
one year after the date of the enactment of the law de-
scribed in such subsection. 
SEC. 4. ABANDONED MINERALS MINE RECLAMATION FUND. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established in the 
Treasury of the United States an interest-bearing 
fund to be known as the Abandoned Minerals Mine 
Reclamation Fund. The Fund shall be administered 
by the Secretary. 
(2) INVESTMENT.—The Secretary shall notify 
the Secretary of the Treasury as to what portion of 
the Fund is not, in the Secretary’s judgment, re-
quired to meet current withdrawals. The Secretary 
of the Treasury shall invest such portion of the 
Fund in public debt securities with maturities suit-
able for the needs of such Fund and bearing interest 
at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields 
on outstanding marketplace obligations of the 
United States of comparable maturities. The income 
on such investments shall be credited to, and form 
a part of, the Fund.
(3) ADMINISTRATION.—The Secretary shall use 
the existing Federal program for abandoned mine 
reclamation authorized by title IV of the Surface 
Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1231 et seq.) to administer the Fund and for 
making expenditures from the Fund. 
(b) USE AND OBJECTIVES OF THE FUND.— 
(1) IN GENERAL.—Amounts in the Fund shall 
be available to the Secretary, without further appro-
priation and until expended, to perform or support 
reclamation and restoration activities affecting eligi-
ble areas, including any of the following: 
(A) Reclamation and restoration of aban-
doned surface mined areas. 
(B) Reclamation and restoration of aban-
doned milling and processing areas. 
(C) Sealing, filling, and grading abandoned 
deep mine entries. 
(D) Planting of land adversely affected by 
past mining to prevent erosion and sedimenta-
tion. 
(E) Prevention, abatement, treatment, and 
control of water pollution created by abandoned 
mine drainage.
(F) Control of surface subsidence due to 
abandoned deep mines. 
(2) METHODS OF USE.—Subject to the special 
disbursement 
requirements 
of 
subsection 
(g), 
amounts in the Fund may be expended directly by 
the Secretary or by making grants to approved State 
reclamation programs, as described in subsection 
(d). The Secretary shall consult and coordinate with 
eligible States on those projects funded directly or in 
conjunction with other Federal agencies. 
(c) ELIGIBLE
AREAS.—Reclamation expenditures 
under this section shall be made only in States described 
in subsection (e) and shall be used only for the reclamation 
of lands (and related waters)— 
(1) that were, but are no longer, actively mined 
for hardrock minerals (and not in temporary shut-
down) as of the date of the enactment of this Act; 
(2) that are not identified for remedial action 
under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.) and for which there is no identifiable 
owner or operator for the mine or mine facilities; 
(3) that are not designated for remedial action 
pursuant to the Uranium Mill Tailings Radiation 
Control Act of 1978 (42 U.S.C. 7901 et seq.); and
(4) for which no evidence exists that the lands 
contain minerals that economically could be ex-
tracted through the mining, reprocessing, or re-
mining of the lands. 
(d) ELIGIBLE STATES.— 
(1) ELIGIBILITY
REQUIREMENTS.—Except as 
provided in paragraph (2), expenditures from the 
Fund shall be made only for reclamation of lands 
and water in States that— 
(A) contain lands subject to the general 
mining laws; and 
(B) have completed a statewide inventory 
of abandoned hardrock sites within the State el-
igible to receive funding under this Act. 
(2) INVENTORY FUNDING.—A State that con-
tains lands subject to the general mining laws, but 
that has not completed a statewide inventory as de-
scribed in paragraph (1)(B), may receive grants not 
exceeding $2,000,000 annually to assist in the com-
pletion of the required inventory. 
(3) APPROVED
STATE
RECLAMATION
PRO-
GRAMS.—In the case of a State described in para-
graph (1), the Secretary may make expenditures 
from the Fund to the State for a State reclamation 
program that meets the requirements of section 405
of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1235) and is applicable to 
hardrock mining. 
(4) STATES WITHOUT APPROVED PROGRAMS.— 
If a State described in paragraph (1) does not have 
an approved State program under section 405 of the 
Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1235) that is applicable to 
hardrock mining, the Secretary may provide funds to 
the State after the Secretary determines that the 
State has authority to implement a hardrock aban-
doned mine land program, and that State authority, 
at a minimum, includes the establishment of a State 
reclamation plan for abandoned hardrock mines and 
clear authorization for the administration and ex-
penditure of funds for eligible areas described in 
subsection (c). 
(e) PRIORITIES.—Expenditures from the Fund shall 
reflect the following priorities, in the following order of 
priority: 
(1) EXTREME
DANGER.—Protection of public 
health, safety, general welfare, and property from 
extreme danger of adverse effects of past mining ac-
tivity.
(2) ADVERSE EFFECTS.—Protection of public 
health, safety, general welfare, and property from 
the adverse effects of past mineral activity, including 
the restoration of land, water, and fish and wildlife 
resources degraded by the adverse effects of past 
mining activity. 
(f) ELIGIBLE REMEDIATING PARTIES.—The Sec-
retary may authorize expenditures from the Fund for re-
mediation activities conducted by a Federal agency or by 
remediating parties who are permittees under the aban-
doned or inactive mine land waste remediation permit pro-
gram, as provided for in section 402(r) of the Federal 
Water Pollution Control Act (33 U.S.C. 1342(r)). 
(g) SPECIAL DISBURSEMENT REQUIREMENTS.— 
(1) SET-ASIDE.—Of the funds collected under 
section 3 with regard to a mine for a calendar year 
and deposited in the Fund— 
(A) 25 percent shall be expended in the eli-
gible State in which the mine is located, pursu-
ant to an approved abandoned mine land rec-
lamation program under subsection (d)(3); and 
(B) 50 percent shall be expended in the eli-
gible States based on each eligible State’s per-
centage of the value of total national hardrock 
mineral production during the years 1900
through 1980, which the Secretary shall deter-
mine using United States Geological Survey 
Minerals Yearbooks and published metal prices. 
(2) RELEASE.—If funds allocated pursuant to 
paragraph (1)(A) have not been expended within 
three years after collection, the Secretary shall make 
such funds available to other eligible States as deter-
mined appropriate by the Secretary. 
Æ