cable to the area subject to mineral activities and 
are returned to a productive use. 
(D) The area subject to the proposed plan is 
open to location for the types of mineral activities 
proposed. 
(E) The proposed operation has been designed 
to prevent material damage to the hydrologic bal-
ance outside the permit area. 
(F) The applicant will fully comply with the re-
quirements of section 306 (relating to financial as-
surance) prior to the initiation of operations. 
(G) Neither the applicant nor operator, nor any 
subsidiary, affiliate, or person controlled by or under 
common control with the applicant or operator, is in-
eligible to receive a permit under section 305. 
(H) The reclamation plan demonstrates that 10 
years following mine closure, no treatment of surface 
or ground water for carcinogens or toxins will be re-
quired to meet water quality standards at the point 
of discharge. 
(2) With respect to any activities specified in the rec-
lamation plan referred to in subsection (b) that constitutes 
a removal or remedial action under section 101 of the 
Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601 et seq.), the
Secretary shall consult with the Administrator of the En-
vironmental Protection Agency prior to the issuance of an 
operations permit. The Administrator shall ensure that 
the reclamation plan does not require activities that would 
increase the costs or likelihood of removal or remedial ac-
tions under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
et seq.) or corrective actions under the Solid Waste Dis-
posal Act (42 U.S.C. 6901 et seq.). 
(d) TERM OF PERMIT; RENEWAL.— 
(1) An operations permit— 
(A) shall be for a term that is no longer 
than the shorter of— 
(i) the period necessary to accomplish 
the proposed mineral activities subject to 
the permit; and 
(ii) 20 years; and 
(B) shall be renewed for an additional 20- 
year period if the operation is in compliance 
with the requirements of this Act and other ap-
plicable law. 
(2) Failure by the operator to commence min-
eral activities within 2 years of the date scheduled 
in an operations permit shall require a modification 
of the permit if the Secretary concerned determines
that modifications are necessary to comply with sec-
tion 201. 
(e) PERMIT MODIFICATION.— 
(1) During the term of an operations permit 
the operator may submit an application to modify 
the permit (including the operations plan or rec-
lamation plan, or both). 
(2) The Secretary, or for National Forest Sys-
tem lands the Secretary of Agriculture, may, at any 
time, require reasonable modification to any oper-
ations plan or reclamation plan upon a determina-
tion that the requirements of this Act cannot be met 
if the plan is followed as approved. Such determina-
tion shall be based on a written finding and subject 
to public notice and hearing requirements estab-
lished by the Secretary concerned. 
(3) A permit modification is required before 
changes are made to the approved plan of oper-
ations, or if unanticipated events or conditions exist 
on the mine site, including in the case of— 
(A) development of acid or toxic drainage; 
(B) loss of springs or water supplies; 
(C) water quantity, water quality, or other 
resulting water impacts that are significantly
different than those predicted in the applica-
tion; 
(D) the need for long-term water treat-
ment; 
(E) significant reclamation difficulties or 
reclamation failure; 
(F) the discovery of significant scientific, 
cultural, or biological resources that were not 
addressed in the original plan; or 
(G) the discovery of hazards to public safe-
ty. 
(f) TEMPORARY CESSATION OF OPERATIONS.—(1) 
An operator conducting mineral activities under an oper-
ations permit in effect under this title may not temporarily 
cease mineral activities for a period greater than 180 days 
unless the Secretary concerned has approved such tem-
porary cessation or unless the temporary cessation is per-
mitted under the original permit. Any operator tempo-
rarily ceasing mineral activities for a period greater than 
90 days under an operations permit issued before the date 
of the enactment of this Act shall submit, before the expi-
ration of such 90-day period, a complete application for 
temporary cessation of operations to the Secretary con-
cerned for approval unless the temporary cessation is per-
mitted under the original permit.
(2) An application for approval of temporary ces-
sation of operations shall include such information re-
quired under subsection (b) and any other provisions pre-
scribed by the Secretary concerned to minimize impacts 
on the environment. After receipt of a complete applica-
tion for temporary cessation of operations such Secretary 
shall conduct an inspection of the area for which tem-
porary cessation of operations has been requested. 
(3) To approve an application for temporary ces-
sation of operations, the Secretary concerned shall make 
each of the following determinations: 
(A) A determination that the methods for se-
curing surface facilities and restricting access to the 
permit area, or relevant portions thereof, will effec-
tively ensure against hazards to the health and safe-
ty of the public and fish and wildlife. 
(B) A determination that reclamation is in com-
pliance with the approved reclamation plan, except 
in those areas specifically designated in the applica-
tion for temporary cessation of operations for which 
a delay in meeting such standards is necessary to fa-
cilitate the resumption of operations. 
(C) A determination that the amount of finan-
cial assurance filed with the permit application is 
sufficient to assure completion of the reclamation ac-
tivities identified in the approved reclamation plan in 
the event of forfeiture. 
(D) A determination that any outstanding no-
tices of violation and cessation orders incurred in 
connection with the plan for which temporary ces-
sation is being requested are either stayed pursuant 
to an administrative or judicial appeal proceeding or 
are in the process of being abated to the satisfaction 
of the Secretary concerned. 
(g) PERMIT REVIEWS.—The Secretary, or for Na-
tional Forest System lands the Secretary of Agriculture, 
shall review each permit issued under this section every 
10 years during the term of such permit, shall provide 
public notice of the permit review, and, based upon a writ-
ten finding, such Secretary shall require the operator to 
take such actions as the Secretary deems necessary to as-
sure that mineral activities conform to the permit, includ-
ing adjustment of financial assurance requirements. 
(h) 
TRANSFER, 
ASSIGNMENT, 
OR
SALE
OF 
RIGHTS.—(1) No transfer, assignment, or sale of rights 
granted by a permit under this section shall be made with-
out the prior written approval of the Secretary, or for Na-
tional Forest System lands the Secretary of Agriculture. 
(2) The Secretary, or for National Forest System 
lands, the Secretary of Agriculture, may allow a person
holding a permit to transfer, assign, or sell rights under 
the permit to a successor, if such Secretary finds, in writ-
ing, that the successor— 
(A) has submitted information required and is 
eligible to receive a permit in accordance with sec-
tion 305; 
(B) has submitted evidence of financial assur-
ance satisfactory under section 306; and 
(C) meets any other requirements specified by 
such Secretary. 
(3) The successor in interest shall assume the liability 
and reclamation responsibilities established by the existing 
permit and shall conduct the mineral activities in full com-
pliance with this Act, and the terms and conditions of the 
permit as in effect at the time of transfer, assignment, 
or sale. 
(4) Each application for approval of a permit trans-
fer, assignment, or sale pursuant to this subsection shall 
be accompanied by a fee payable to the Secretary of the 
Interior, or for National Forest System lands, the Sec-
retary of Agriculture, in such amount as may be estab-
lished by such Secretary, or for National Forest System 
lands, by the Secretary of Agriculture. Such amount shall 
be equal to the actual or anticipated cost to the Secretary 
or, for National Forest System lands, to the Secretary of
Agriculture, of reviewing and approving or disapproving 
such transfer, assignment, or sale, as determined by such 
Secretary. 
(i) PUBLIC PARTICIPATION.—The Secretary of the 
Interior and the Secretary of Agriculture shall jointly pro-
mulgate regulations to ensure transparency and public 
participation in permit decisions required under this Act, 
consistent with any requirements that apply to such deci-
sions under section 102 of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332). 
SEC. 305. PERSONS INELIGIBLE FOR PERMITS. 
(a) CURRENT VIOLATIONS.—Unless corrective action 
has been taken in accordance with subsection (c), no per-
mit under this title shall be issued or transferred to an 
applicant if the applicant or any agent of the applicant, 
the operator (if different than the applicant) of the claim 
concerned, any claim holder (if different than the appli-
cant) of the claim concerned, or any affiliate or officer 
or director of the applicant is currently in violation of any 
of the following: 
(1) A provision of this Act or any regulation 
under this Act. 
(2) An applicable State or Federal toxic sub-
stance, solid waste, air, water quality, or fish and 
wildlife conservation law or regulation at any site
where mining, beneficiation, or processing activities 
are occurring or have occurred. 
(3) The Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1201 et seq.) or any 
regulation implementing that Act at any site where 
surface coal mining operations have occurred or are 
occurring. 
(b) SUSPENSION.—The Secretary, or for National 
Forest System lands the Secretary of Agriculture, shall 
suspend an operations permit, in whole or in part, if such 
Secretary determines that any of the entities described in 
subsection (a) were in violation of any requirement listed 
in subsection (a) at the time the permit was issued. 
(c) CORRECTION.—(1) The Secretary, or for National 
Forest System lands the Secretary of Agriculture, may 
issue or reinstate a permit under this title if the applicant 
submits proof that the violation referred to in subsection 
(a) or (b) has been corrected or is in the process of being 
corrected to the satisfaction of such Secretary and the reg-
ulatory authority involved or if the applicant submits proof 
that the violator has filed and is presently pursuing, a di-
rect administrative or judicial appeal to contest the exist-
ence of the violation. For purposes of this section, an ap-
peal of any applicant’s relationship to an affiliate shall not
constitute a direct administrative or judicial appeal to con-
test the existence of the violation. 
(2) Any permit which is issued or reinstated based 
upon proof submitted under this subsection shall be condi-
tionally approved or conditionally reinstated, as the case 
may be. If the violation is not successfully abated or the 
violation is upheld on appeal, the permit shall be sus-
pended or revoked. 
(d) PATTERN OF WILLFUL VIOLATIONS.—No permit 
under this Act may be issued to any applicant if there 
is a demonstrated pattern of willful violations of the envi-
ronmental protection requirements of this Act by the ap-
plicant, any affiliate of the applicant, or the operator or 
claim holder if different than the applicant. 
SEC. 306. FINANCIAL ASSURANCE. 
(a) FINANCIAL ASSURANCE REQUIRED.—(1) After a 
permit is issued under this title and before any exploration 
or operations begin under the permit, the operator shall 
file with the Secretary, or for National Forest System 
lands the Secretary of Agriculture, evidence of financial 
assurance payable to the United States. The financial as-
surance shall be provided in the form of a surety bond, 
a trust fund, letters of credits, government securities, cer-
tificates of deposit, cash, or an equivalent form approved 
by such Secretary.
(2) The financial assurance shall cover all lands with-
in the initial permit area and all affected waters that may 
require restoration, treatment, or other management as a 
result of mineral activities, and shall be extended to cover 
all lands and waters added pursuant to any permit modi-
fication made under section 303(f) (relating to exploration 
permits) or section 304(e) (relating to operations per-
mits), or affected by mineral activities. 
(b) AMOUNT.—The amount of the financial assur-
ance required under this section shall be sufficient to as-
sure the completion of reclamation and restoration satis-
fying the requirements of this Act if the work were to be 
performed by the Secretary concerned in the event of for-
feiture, including the construction and maintenance costs 
for any treatment facilities necessary to meet Federal and 
State environmental requirements. The calculation of such 
amount shall take into account the maximum level of fi-
nancial exposure which shall arise during the mineral ac-
tivity and administrative costs associated with a govern-
ment agency reclaiming the site. 
(c) DURATION.—The financial assurance required 
under this section shall be held for the duration of the 
mineral activities and for an additional period to cover the 
operator’s responsibility for reclamation, restoration, and
long-term maintenance, and effluent treatment as speci-
fied in subsection (g). 
(d) ADJUSTMENTS.—The amount of the financial as-
surance and the terms of the acceptance of the assurance 
may be adjusted by the Secretary concerned from time to 
time as the area requiring coverage is increased or de-
creased, or where the costs of reclamation or treatment 
change, or pursuant to section 304(f) (relating to tem-
porary cessation of operations), but the financial assur-
ance shall otherwise be in compliance with this section. 
The Secretary concerned shall review the financial guar-
antee every 3 years and as part of the permit application 
review under section 304(c). 
(e) RELEASE.—Upon request, and after notice and 
opportunity for public comment, and after inspection by 
the Secretary, or for National Forest System lands, the 
Secretary of Agriculture, such Secretary may, after con-
sultation with the Administrator of the Environmental 
Protection Agency, release in whole or in part the financial 
assurance required under this section if the Secretary 
makes both of the following determinations: 
(1) A determination that reclamation or res-
toration covered by the financial assurance has been 
accomplished as required by this Act.
(2) A determination that the terms and condi-
tions of any other applicable Federal requirements, 
and State requirements applicable pursuant to coop-
erative agreements under section 308, have been ful-
filled. 
(f) RELEASE SCHEDULE.—The release referred to in 
subsection (e) shall be according to the following schedule: 
(1) After the operator has completed any re-
quired backfilling, regrading, and drainage control of 
an area subject to mineral activities and covered by 
the financial assurance, and has commenced revege-
tation on the regraded areas subject to mineral ac-
tivities in accordance with the approved plan, that 
portion of the total financial assurance secured for 
the area subject to mineral activities attributable to 
the completed activities may be released except that 
sufficient assurance must be retained to address 
other required reclamation and restoration needs 
and to assure the long-term success of the revegeta-
tion. 
(2) After the operator has completed success-
fully all remaining mineral activities and reclamation 
activities and all requirements of the operations plan 
and the reclamation plan, and all other requirements