duction of such locatable minerals or concentrates, as the
case may be.
(b) ROYALTY PAYMENTS.—Each person responsible
for making royalty payments under this section shall make
such payments to the Secretary not later than 30 days
after the end of the calendar month in which the mineral
or mineral concentrates are produced and first placed in
marketable condition, consistent with prevailing practices
in the industry.
(c) REPORTING REQUIREMENTS.—All persons hold-
ing mining claims located under the general mining laws
shall provide to the Secretary such information as deter-
mined necessary by the Secretary to ensure compliance
with this section, including, but not limited to, quarterly
reports, records, documents, and other data. Such reports
may also include, but not be limited to, pertinent technical
and financial data relating to the quantity, quality, and
amount of all minerals extracted from the mining claim.
(d) AUDITS.—The Secretary is authorized to conduct
such audits of all persons holding mining claims located
under the general mining laws as he deems necessary for
the purposes of ensuring compliance with the require-
ments of this section.
(e) DISPOSITION OF RECEIPTS.—All receipts from
royalties collected pursuant to this section shall be depos-
ited into the Fund established under section 3.
(f) COMPLIANCE.—Any person holding mining claims
located under the general mining laws who knowingly or
willfully prepares, maintains, or submits false, inaccurate,
or misleading information required by this section, or fails
or refuses to submit such information, shall be subject to
a civil penalty of not more than $10,000 imposed by the
Secretary.
(g) EFFECTIVE DATE.—This section shall take effect
with respect to minerals produced from a mining claim
in calendar months beginning after the enactment of this
Act.
SEC. 202. ABANDONED MINERALS MINE RECLAMATION
FUND.
(a) ESTABLISHMENT.—(1) There is established on
the books of the Treasury of the United States a trust
fund to be known as the Abandoned Minerals Mine Rec-
lamation Fund (hereinafter referred to as the Fund). The
Fund shall be administered by the Secretary.
(2) The Secretary shall notify the Secretary of the
Treasury as to what portion of the Fund is not, in his
judgment, required to meet current withdrawals. The Sec-
retary of the Treasury shall invest such portion of the
Fund in public debt securities with maturities suitable for
the needs of such Fund and bearing interest at rates de-
termined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding mar-
ketplace obligations of the United States of comparable
maturities. The income on such investments shall be cred-
ited to, and from a part of, the Fund.
(b) AMOUNTS.—The following amounts shall be cred-
ited to the Fund for the purposes of this Act:
(1) All moneys received from royalties under
section 1 of this Act and the mining claim mainte-
nance fee under section 4 of this Act.
(2) All donations by persons, corporations, as-
sociations, and foundations for the purposes of this
title.
(c) USE AND OBJECTIVES OF THE FUND.— The Sec-
retary is, subject to appropriations, authorized to use
moneys in the Fund for the reclamation and restoration
of land and water resources adversely affected by past
mineral (other than coal and fluid minerals) and mineral
material mining, including but not limited to, any of the
following:
(1) Reclamation and restoration of abandoned
surface mined areas.
(2) Reclamation and restoration of abandoned
milling and processing areas.
(3) Sealing, filling, and grading abandoned deep
mine entries.
(4) Planting of land adversely affected by past
mining to prevent erosion and sedimentation.
(5) Prevention, abatement, treatment and con-
trol of water pollution created by abandoned mine
drainage.
(6) Control of surface subsidence due to aban-
doned deep mines.
(7) Such expenses as may be necessary to ac-
complish the purposes of this section.
(d) ELIGIBLE AREAS.—(1) Land and waters eligible
for reclamation expenditures under this section shall be
those within the boundaries of States that have lands sub-
ject to the general mining laws—
(A) which were mined or processed for minerals
and mineral materials or which were affected by
such mining or processing, and abandoned or left in
an inadequate reclamation status prior to the date
of enactment of this Act;
(B) for which the Secretary makes a determina-
tion that there is no continuing reclamation respon-
sibility under State or Federal laws; and
(C) for which it can be established that such
lands do not contain minerals which could economi-
cally be extracted through the reprocessing or re-
mining of such lands.
(2) Notwithstanding paragraph (1), sites and areas
designated for remedial action pursuant to the Uranium
Mill Tailings Radiation Control Act of 1978 (42 U.S.C.
7901 and following) or which have been listed for remedial
action pursuant to the Comprehensive Environmental Re-
sponse Compensation and Liability Act of 1980 (42
U.S.C. 9601 and following) shall not be eligible for ex-
penditures from the Fund under this section.
(e) FUND EXPENDITURES.—Moneys available from
the Fund may be expended directly by the Director, Bu-
reau of Land Management. The Director may also make
such money available through grants made to the Chief
of the United States Forest Service, and the Director of
the National Park Service.
(f) AUTHORIZATION OF APPROPRIATIONS.—Amounts
credited to the Fund are authorized to be appropriated
for the purpose of this title without fiscal year limitation.
SEC. 203. LIMITATION ON PATENT ISSUANCE.
No patent shall be issued by the United States for
any mining or mill site claim located under the general
mining laws unless the Secretary determines that, for the
claim concerned a patent application was filed with the
Secretary on or before September 30, 1994, and all re-
quirements established under sections 2325 and 2326 of
the Revised Statutes (30 U.S.C. 29 and 30) for vein or
lode claims and sections 2329, 2330, 2331, and 2333 of
the Revised Statutes (30 U.S.C. 35, 36 and 37) for placer
claims, and section 2337 of the Revised Statutes (30
U.S.C. 42) for mill site claims, as the case may be, were
fully complied with by the applicant by that date.
SEC. 204. MINING CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL.—(1) Effective October 1, 1999, the
holder of each mining claim located under the general min-
ing laws prior to the date of enactment shall pay to the
Secretary an annual claim maintenance fee of $100 per
claim per calendar year.
(2) The holder of each mining claim located under
the general mining laws subsequent to the date of enact-
ment shall pay to the Secretary an annual claim mainte-
nance fee of $125 per claim per calendar year.
(b) PURCHASING POWER ADJUSTMENT.—The Sec-
retary shall adjust the amount of the claim maintenance
fee payable pursuant to subsection (a) for changes in the
purchasing power of the dollar after the calendar year
1993, employing the Consumer Price Index for all urban
consumers published by the Department of Labor as the
basis for adjustment, and rounding according to the ad-
justment process of conditions of the Federal Civil Pen-
alties Inflation Adjustment Act of 1990.
(c) TIME OF PAYMENT.—Each claim holder shall pay
the claim maintenance fee payable under subsection (a)
for any year on or before August 31 of each year, except
that for the initial calendar year in which the location is
made, the initial claim maintenance fee shall be paid at
the time the location notice is recorded with the Bureau
of Land Management.
(d) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEES UNDER ENERGY POLICY ACT OF 1992.—
The section shall not apply to any oil shale claims for
which a fee is required to be paid under section 2511(e)(2)
of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
(e) CLAIM MAINTENANCE FEES PAYABLE UNDER
1993 ACT.—The claim maintenance fees payable under
this section for any period with respect to any claim shall
be reduced by the amount of the claim maintenance fees
paid under section 10101 of the Omnibus Budget Rec-
onciliation Act of 1993 with respect to that claim and with
respect to the same period.
(f) WAIVER.—(1) The claim maintenance fee re-
quired under this section may be waived for a claim holder
who certifies in writing to the Secretary that on the date
the payment was due, the claim holder and all related par-
ties held not more than 10 mining claims on land open
to location. Such certification shall be made on or before
the date on which payment is due.
(2) For purposes of this subsection, with respect to
any claim holder, the term ‘‘related party’’ means each
of the following:
(A) The spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the claim holder.
(B) Any affiliate of the claim holder.
(g) CO-OWNERSHIP.—Upon the failure of any one or
more of several co-owners to contribute such co-owner or
owners portion of the fee under this section, any co-owner
who has paid such fee may, after the payment due date,
give the delinquent co-owner or owners notice of such fail-
ure in writing (or by publication in the newspaper nearest
the claim for at least once a week for at least 90 days).
If at the expiration of 90 days after such notice in writing
or by publication, any delinquent co-owner fails or refused
to contribute his portion, his interest, in the claim shall
become the property of the co-owners who have paid the
required fee.
SEC. 205. DEFINITIONS.
As used in this title:
(1) The term ‘‘affiliate’’ means, with respect to
any person, each of the following:
(A) Any partner of such person.
(B) Any person owning at least 10 percent
of the voting shares of such person.
(C) Any person who controls, is controlled
by, or is under common control with such per-
son.
(2) The term ‘‘locatable minerals’’ means min-
erals not subject to disposition under any of the fol-
lowing:
(A) The Mineral Leasing Act (30 U.S.C.
181 and following);
(B) The Geothermal Steam Act of 1970
(30 U.S.C. 100 and following);
(C) The Act of July 31, 1947, commonly
known as the Materials Act of 1947 (30 U.S.C.
601 and following); or
(D) the Mineral Leasing for Acquired
Lands Act (30 U.S.C. 351 and following).
(3) The term ‘‘net smelter return’’ has the
same meaning provided in section 613 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 613) for
‘‘gross income from mining’’.
(4) The term ‘‘Secretary’’ means the Secretary
of the Interior.
(5) The term ‘‘general mining laws’’ means
those Acts which generally comprise chapters 2,
12A, and 16, and sections 161 and 162 of title 30,
United States Code.
TITLE III—USE OR DISPOSAL OF
FEDERAL NATURAL RESOURCES
SEC. 301. ANNUAL DOMESTIC LIVESTOCK GRAZING FEE.
The Federal Land Policy and Management Act of
1976 is amended by inserting after section 401 (43 U.S.C.
1751) the following new section:
‘‘SEC. 401A. ESTABLISHMENT OF FAIR MARKET VALUE
GRAZING FEES.
‘‘(a) ESTABLISHMENT OF ANNUAL DOMESTIC LIVE-
STOCK GRAZING FEE.—(1) Notwithstanding any other
provision of law, the Secretary of Agriculture, with respect
to National Forest System lands in the 16 contiguous
Western States (except National Grasslands) administered
by the Forest Service where domestic livestock grazing is
permitted under applicable law, shall establish an annual
domestic livestock grazing fee equal to fair market value.
‘‘(2) Notwithstanding any other provision of law, the
Secretary of the Interior, with respect to public domain
lands administered by the Bureau of Land Management
where domestic livestock grazing is permitted under appli-
cable law, shall establish an annual domestic livestock
grazing fee equal to fair market value.
‘‘(b) CALCULATION OF FAIR MARKET VALUE.—(1)
For purposes of determining the annual domestic livestock
grazing fee under this section, the Secretary concerned
shall calculate fair market value using the following for-
mula:
Fair Market Value=
Appraised Base Value×Forage Value Index
100
‘‘(2) For purposes of the formula in paragraph (1):
‘‘(A) The term ‘Forage Value Index’ means the
Forage Value Index (FVI) computed annually by the
Economic Research Service, United States Depart-
ment of Agriculture, and set with the 1997 FVI
equal to 100; and
‘‘(B) The term ‘Appraised Base Value’ means
the 1983 Appraisal Value conclusions for mature
cattle and horses (expressed in dollars per head or
per month), as determined in the 1986 report pre-
pared jointly by the Secretary of Agriculture and the
Secretary of the Interior entitled ‘Grazing Fee Re-
view and Evaluation’, dated February 1986, on a
west-wide basis using the lowest appraised value of
the pricing areas adjusted for advanced payment
and indexed to 1997.
‘‘(c) LIMITATION
ON FLUCTUATIONS
OF FEES.—
Notwithstanding the amount calculated under subsection
(b) for a year, the domestic livestock grazing fee charged
for any given year shall not increase nor decrease by more
than 33.3 percent from the domestic livestock grazing fee
for the previous year.
‘‘(d) EFFECT
ON EXECUTIVE ORDER.—Executive
Order No. 12548, dated February 14, 1986 (51 Fed. Reg.
5985), shall not apply to grazing fees established pursuant
to this section.
‘‘(e) EFFECT ON GRAZING ADVISORY BOARDS.—The
grazing advisory boards established pursuant to Secre-
tarial action, notice of which was published in the Federal
Register on May 14, 1986 (51 Fed. Reg. 17874), are abol-
ished, effective as of the date of the enactment of this sec-
tion, and the advisory functions exercised by such boards
shall be exercised only by the appropriate councils estab-
lished under section 309 of this Act.
‘‘(f) USE
OF FEES
AND RANGE IMPROVEMENT
FUNDS.—Funds appropriated pursuant to section 5 of the
Public Rangelands Improvement Act of 1978 (43 U.S.C.
1904) or any other provision of law related to disposition
of the Federal share of receipts from fees for grazing on
public domain lands or National Forest lands in the 16
contiguous western States shall be used for restoration
and enhancement of fish and wildlife habitat, for restora-
tion and improved management of riparian areas, and for
implementation and enforcement of applicable land man-
agement plans, allotment plans, and regulations regarding
the use of such lands for domestic livestock grazing. Such
funds shall be distributed as the Secretary concerned con-
siders advisable after consultation and coordination with
the advisory councils established pursuant to section 309
of this Act and other interested parties.
‘‘(g) COMMENCEMENT DATE FOR FEES.—The first
annual domestic livestock grazing fee required by this sec-
tion shall apply with respect to the grazing season com-
mencing on March 1, 2000.
SEC. 302. ELIMINATION OF BELOW-COST SALES OF TIMBER
FROM NATIONAL FOREST SYSTEM LANDS.
(a) IN GENERAL.—The National Forest Management
Act of 1976 is amended by inserting after section 14 (16
U.S.C. 472a) the following new section:
‘‘SEC. 14A. ELIMINATION OF BELOW-COST TIMBER SALES
FROM NATIONAL FOREST SYSTEM LANDS.
‘‘(a) REQUIREMENT THAT SALE REVENUES EXCEED
COSTS.—On and after October 1, 2004, in appraising tim-
ber and setting a minimum bid for trees, portions of trees,
or forest products located on National Forest System
lands proposed for sale under section 14 or any other pro-
vision of law, the Secretary of Agriculture shall ensure
that the estimated cash returns to the United States
Treasury from each sale exceed the estimated costs to be
incurred by the Federal Government in the preparation
of the sale or as a result of the sale.
‘‘(b) COSTS TO BE CONSIDERED.—For purposes of
estimating under this section the costs to be incurred by
the Federal Government from each timber sale, the Sec-
retary shall assign to the sale the following costs:
‘‘(1) The actual appropriated expenses for sale
preparation and harvest administration incurred or
to be incurred by the Federal Government from the
sale and the payments to counties to be made as a
result of the sale.
‘‘(2) A portion of the annual timber resource
planning costs, silvicultural examination costs, other
resource support costs, road design and construction
costs, road maintenance costs, transportation plan-
ning costs, appropriated reforestation costs, timber
stand improvement costs, forest genetics costs, gen-
eral administrative costs (including administrative
costs of the national and regional offices of the For-
est Service), and facilities construction costs of the
Federal Government directly or indirectly related to
the timber harvest program conducted on National
Forest System lands.
‘‘(c) METHOD OF ALLOCATING COSTS.—The Sec-
retary shall allocate the costs referred to in subsection
(b)(2) to each unit of the National Forest System, and
each proposed timber sale in such unit, on the basis of
harvest volume.
‘‘(d) TRANSITIONAL REQUIREMENTS.—To ensure the
elimination of all below-cost timber sales by the date speci-
fied in subsection (a), the Secretary shall progressively re-
duce the number and size of below-cost timber sales on
National Forest System lands as follows:
‘‘(1) In fiscal years 2000 and 2001, the quan-
tity of timber sold in below-cost timber sales on Na-
tional Forest System lands shall not exceed 75 per-
cent of the quantity of timber sold in such sales in
the preceding fiscal year.
‘‘(2) In fiscal year 2002, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 65 percent of the
quantity of timber sold in such sales in fiscal year
2000.
‘‘(3) In fiscal year 2003, the quantity of timber
sold in below-cost timber sales on National Forest
System lands shall not exceed 50 percent of the
quantity of timber sold in such sales in the fiscal
year 2002.
‘‘(e) BELOW-COST TIMBER SALE.—For purposes of
this section, the term ‘below-cost timber sale’ means a sale
of timber in which the costs to be incurred by the Federal
Government exceed the cash returns to the United States
Treasury.’’.
(b) FINDINGS.—Section 2 of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1600) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) the practice of selling timber from Na-
tional Forest System lands for less than the cost to
the Federal Government of growing the timber and
preparing the timber for sale is not in the best inter-
ests of the United States, and such below-cost sales
should be eliminated in an orderly manner to achieve
a more economically and environmentally sound tim-
ber program for the National Forest System.’’.
SEC. 303. TIMBERLAND SUITABILITY.
Subsection (k) of section 6 of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1604) is amended to read as follows:
‘‘(k) DETERMINATION OF SUITABILITY OF LANDS
FOR TIMBER PRODUCTION.—
‘‘(1) DETERMINATION REQUIRED.—In revising
land management plans developed pursuant to this
section, the Secretary shall identify lands within the
management area that are not suited for timber pro-
duction based on physical, economic, or other rel-
evant factors. The Secretary shall review the identi-
fications made under this paragraph during each re-
vision of the forest plan.
‘‘(2) 
EVIDENCE
OF
ECONOMIC
UNSUITABILITY.—The Secretary shall identify lands
as economically unsuitable for timber production
under paragraph (1) if—
‘‘(A) the expected cash returns to the
United States Treasury that would result from
the sale of standing timber on the lands do not
exceed the expected costs that would be in-
curred by the Federal Government in prepara-
tion or as a result of such sales; or
‘‘(B) the expected cash returns to the
United States Treasury that would result from
the sale of subsequent timber stands on the
lands do not exceed the expected costs that
would be incurred by the Federal Government
in preparation or as a result of such sales.
‘‘(3) COSTS TO BE CONSIDERED.—For purposes
of estimating under paragraph (2) the costs to be in-
curred by the Federal Government from timber sales
conducted on the lands being reviewed, the Secretary
shall assign to sales on such lands the following
costs:
‘‘(A) The appropriated expenses for sale
preparation and harvest administration that
would be incurred by the Federal Government
from such sales and the payments to counties
that would be made as a result of such sales.
‘‘(B) A portion of the annual timber re-
source planning costs, silvicultural examination
costs, other resource support costs, road design
and construction costs, road maintenance costs,
transportation planning costs, appropriated re-
forestation costs, timber stand improvement
costs, forest genetics costs, general administra-
tive costs (including administrative costs of the
national and regional offices of the Forest Serv-
ice), and facilities construction costs of the Fed-
eral Government directly or indirectly related to
the timber harvest program conducted on Na-
tional Forest System lands.
‘‘(4) METHOD
OF
ALLOCATING
COSTS.—The
Secretary shall allocate the costs referred to in para-
graph (3)(B) to each unit of the National Forest
System on the basis of harvest volume.
‘‘(5) PROHIBITION ON TIMBER HARVESTS ON
UNSUITABLE LANDS.—In the case of lands identified
under paragraph (1) as unsuitable for timber pro-
duction, no timber harvesting shall occur on such
lands for a period of 10 years or the life of the plan,
whichever is greater.
‘‘(6) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) The term ‘standing timber’ means an
existing stand of timber that has not been har-
vested.
‘‘(B) The term ‘subsequent timber stand’
means a regenerated stand of timber produced
on land from which standing timber has been
harvested.’’.
SEC. 304. COST OF WATER USED TO PRODUCE CROPS ON
PRODUCTION FLEXIBILITY CONTRACT ACRE-
AGE.
Section 9 of the Act of August 4, 1939 (commonly
known as the Reclamation Project Act of 1939; 43 U.S.C.
485h) is amended by inserting at the end thereof the fol-
lowing new subsection:
‘‘(g)(1) Any contract entered into under authority of
this section or any other provision of Federal reclamation
law shall require that the organization agree by contract
with the Secretary to pay full cost for the delivery of water
used in the production of any contract commodity on acre-
age subject to a production flexibility contract entered into
under section 111 of the Agricultural Market Transition
Act (7 U.S.C. 7211).
‘‘(2) The Secretary shall announce the amount of the
full cost payment for the succeeding year on or before July
1 of each year.
‘‘(3) As used in this subsection:
‘‘(A) The term ‘full cost’ has the meaning given
such term in section 202(3) of the Reclamation Re-
form Act of 1982 (43 U.S.C. 390bb(3)).
‘‘(B) The term ‘contract commodity’ has the
meaning given such term in section 102(5) of the
Agricultural Market Transition Act (7 U.S.C.
7202(5)).
‘‘(4) Paragraph (1) shall apply to any contract en-
tered into or amended after the date of the enactment of
this subsection.’’.
SEC. 305. REDUCTION IN MAXIMUM AMOUNT OF PAYMENTS
UNDER AGRICULTURAL ASSISTANCE PRO-
GRAMS TO REFLECT RECEIPT OF FEDERAL
IRRIGATION WATER.
(a) PRICE SUPPORT PROGRAMS.—Title X of the
Food Security Act of 1985 is amended—
(1) by redesignating sections 1001D (7 U.S.C.
1308–4) and 1001E (7 U.S.C. 1308–5) as sections
1001E and 1001F, respectively; and
(2) by inserting after section 1001C (7 U.S.C.
1308–3) the following new section:
‘‘SEC. 1001D. REDUCTION OF PAYMENT LIMITATIONS TO
REFLECT RECEIPT OF FEDERAL IRRIGATION
WATER.
‘‘(a) REDUCTION
OF PAYMENT LIMITATIONS RE-
QUIRED.—If a person subject to section 1001 receives
Federal irrigation water for agricultural purposes from the
operation of a Federal reclamation project, the payment
limitations specified in paragraphs (1) and (2) of such sec-
tion and applicable to such person shall be reduced for
the year in which such person receives irrigation water.
The amount of the reduction shall be equal to the total
value during that year of the subsidy portion of the con-
tract with such person for the delivery of the irrigation
water.
‘‘(b) DETERMINATION
OF SUBSIDY PORTION
OF
WATER CONTRACT.—The subsidy portion of an irrigation
water delivery contract is equal to the amount by which
full cost for the delivery of the irrigation water exceeds
the actual contract price for the delivery of the water.
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘contract’, ‘full cost’, ‘irrigation water’, and ‘project’
have the meanings given such terms in section 202 of the
Reclamation Reform Act of 1982 (43 U.S.C. 390bb).’’.
(b) NONINSURED CROP DISASTER ASSISTANCE.—
Section 196(i) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the fol-
lowing new paragraph:
‘‘(5) EFFECT
OF
RECEIPT
OF
IRRIGATION
WATER.—
‘‘(A) REDUCTION
OF
PAYMENT
LIMITA-
TION.—If a person who receives payments
under this section also receives, during the
same year, Federal irrigation water for agricul-
tural purposes from the operation of a Federal
reclamation project, the payment limitation
specified in paragraph (2) for such person shall
be reduced for that year. The amount of the re-
duction shall be equal to the total value during
that year of the subsidy portion of the contract
with such person for the delivery of the irriga-
tion water.
‘‘(B) DETERMINATION
OF
SUBSIDY
POR-
TION OF WATER CONTRACT.—The subsidy por-
tion of an irrigation water delivery contract is
equal to the amount by which full cost for the
delivery of the irrigation water exceeds the ac-
tual contract price for the delivery of the water.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph, the terms ‘contract’, ‘full cost’, ‘irri-
gation water’, and ‘project’ have the meanings
given such terms in section 202 of the Reclama-
tion Reform Act of 1982 (43 U.S.C. 390bb).’’.
(c) 
CONFORMING
AMENDMENTS.—Section
1001(5)(A) of the Food Security Act of 1985 (7 U.S.C.
1308(5)(A)) is amended by striking ‘‘through 1001C’’ and
inserting ‘‘through 1001D’’.
SEC. 306. OFF BUDGET EXPENDITURES.
(a) KNUTSON-VANDENBERG FUND.—Section 3 of
the Act of June 9, 1930 (commonly known as the
Knutson-Vandenberg Act; 16 U.S.C. 576b), is amended
by striking ‘‘and shall constitute a special fund, which is
hereby appropriated and made available until expended,’’
in the second sentence and inserting ‘‘and are authorized
to be appropriated’’.
(b) DEPOSITS FROM BRUSH DISPOSAL.—The para-
graph relating to deposits from brush disposal under the
heading ‘‘FOREST SERVICE’’ in the Act of August 11, 1916
(39 Stat. 462; 16 U.S.C. 490), is amended by striking
‘‘and constitute a special fund, which is hereby appro-
priated and shall remain available until expended’’ and in-
serting ‘‘and are authorized to be appropriated for the
purpose of disposing of such brush and other debris’’.
(c) NATIONAL FORESTS ROADS AND TRAILS.—Sec-
tion 7 of Public Law 88–657 (commonly known as the
Forest Roads and Trails Act; 16 U.S.C. 538) is amended
by striking ‘‘may be placed in a fund to be available’’ and
inserting ‘‘are authorized to be appropriated’’.
(d) TIMBER SALVAGE SALE FUND.—Section 303(d)
of Public Law 96–451 (16 U.S.C. 1606a) is amended by
striking ‘‘The Secretary of Agriculture’’ and inserting ‘‘In
such amounts as are provided in advance in appropriations
Acts, the Secretary of Agriculture’’.
SEC. 307. DEPOSIT OF TAYLOR GRAZING ACT RECEIPTS IN
TREASURY.
Section 10 of the Act of June 28, 1934 (commonly
known as the Taylor Grazing Act; 43 U.S.C. 315i), is
amended by striking all after ‘‘miscellaneous receipts’’ and
inserting a period.
SEC. 308. REPEAL OF LIVESTOCK FEED ASSISTANCE PRO-
GRAM.
The Emergency Livestock Feed Assistance Act of
1988 (title VI of the Agricultural Act of 1949; 7 U.S.C.
1471–1471j) is repealed.
SEC. 309. RIGHT-OF-WAY PERMITS.
(a) IN GENERAL.—No permit, lease, or authorization
for the use of any area of the public lands or National
Forests for rights-of-way (including rights-of-way for
power lines, oil and gas pipelines, water conveyances, and
other utility lines) shall remain in force and effect after
October 1, 1999, unless, by such date, and by October
1 of each year thereafter, the holder of such permit, lease,
or authorization pays to the Secretary of the Interior or
the Secretary of Agriculture, as appropriate, an amount
equal to the fair market value, as determined by such Sec-
retary, of the right to use and occupy such area for such
purposes.
(b) DEFINITION.—For the purposes of this section,
the term ‘‘public lands’’ shall have the same meaning as
defined in section 103(e) of the Federal Land Policy Man-
agement Act of 1976 (43 U.S.C. 1702(e)).
SEC. 310. OIL AND GAS RENTALS.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended as follows:
(1) In section 14 by striking out ‘‘a rental of
$1 per acre’’ and inserting ‘‘a rental established by
the Secretary of the Interior’’ and by adding the fol-
lowing at the end thereof: ‘‘The Secretary shall es-
tablish fair market value rental fees under this sec-
tion based upon the rental fees which would be
charged in arm’s length transactions for comparable
leases of oil and gas resources on non-Federal
land.’’.
(2) In section 17(d) by striking out ‘‘rental of
not less than $1.50 per acre per year for the first
through fifth years of the lease and not less than $2
per acre per year for each year thereafter’’ and in-
serting ‘‘rental established by the Secretary of the
Interior’’ and by adding the following at the end
thereof: ‘‘The Secretary shall establish fair market
value rental fees under this section based upon the
rental fees which would be charged in arms length
transactions for comparable leases of oil and gas re-
sources on non-Federal land.’’.
regardless of the amount of the underreporting or
the amount of royalty owed.
‘‘(2) For purposes of this subsection, the term
‘underreporting’ means the amount by which the royalty
on the value of the production which should have been re-
ported exceeds the royalty on the value of the production
which was reported.
‘‘(3) The Secretary shall not impose the assessment
specified in paragraph (1) if the underreporting is cor-
rected before the date the person against whom the assess-
ment is made receives written notice from the Secretary
that an underreporting may have occurred.
‘‘(4) The Secretary shall not impose the assessment
specified in paragraph (1) with respect to an under-
reporting which is corrected in the course of performing
an order to correct royalty accounting and recompute and
pay royalties due. This exception does not apply to the
specific instances of underreporting discovered during
audit which formed the basis of the order to recompute
and pay.
‘‘(5)(A) The Secretary shall waive the portion of an
assessment specified in paragraph (1) attributable to that
portion of the underreporting for which a person dem-
onstrates that—
‘‘(i) the person had substantial authority for re-
porting royalty on the value of the production on the
basis on which it was reported, or
‘‘(ii) the person meets any other exception
which the Secretary may, by rule, establish.
‘‘(B) For purposes of this paragraph, the term ‘sub-
stantial authority’ means any of the following:
‘‘(i) A controlling judicial or administrative de-
cision which has not been reversed, vacated, or over-
ruled, or a controlling regulation.
‘‘(ii) A body of judicial or administrative deci-
sions or regulations which provide a reasoned basis
to support the person’s action. Such a reasoned
basis must be more than a merely arguable theory
which is unlikely to prevail in court upon a complete
review of the relevant facts and authorities.
‘‘(iii) A legal question of first impression.
‘‘(6) Interest shall not accrue on the amount of an
assessment under this subsection during the pendency of
any administrative appeal of the assessment which may
be allowed by rule. No hearing on the record in such ap-
peal shall be necessary before an assessment is made. No
surety instrument shall be required to secure the amount
of the assessment pending administrative appeal.
‘‘(7) An assessment under this subsection shall apply
only to an underreporting occurring after the date of en-
actment of this subsection.
‘‘(8) Notwithstanding any provision of section 206 of
this Act, all assessments collected under this subsection
shall be deposited to the same accounts in the Treasury
or paid to the same recipients in the same manner as the
royalty with respect to which such assessment is made.
‘‘(9) For purposes of this subsection, the definitions
in section 2 of this Act shall be deemed to also apply to
coal, any other mineral, geothermal steam, or associated
geothermal resources.’’.
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