Sec. 101. Elimination of exclusion of certain income of foreign sales corpora-
tions.
Sec. 102. Repeal of incentives for alcohol fuels.
Sec. 103. Source of income from certain sales of inventory property.
Subtitle B—Agricultural-Related Provisions
Sec. 111. Cost of water used to produce crops on production flexibility contract
acreage.
Sec. 112. Repeal of title III of Agricultural Trade Act of 1978.
Sec. 113. Repeal of section 203 of Agricultural Trade Act of 1978.
Sec. 114. Elimination of Federal subsidies for tobacco.
Subtitle C—Other Subsidies
Sec. 121. Abolition of advanced technology program.
Sec. 122. Tennessee Valley Authority funding elimination.
Sec. 123. Elimination of purchaser road credits and other Federal funding of
forest roads for logging.
Sec. 124. Prohibition against provision of Federal funds pursuant to the new
arrangements to borrow of the International Monetary Fund.
TITLE II—MINERAL EXPLORATION AND DEVELOPMENT
Subtitle A—Mineral Exploration and Development
Sec. 201. Short title, findings and purposes.
Sec. 202. Definitions and references.
Sec. 203. Lands open to location.
Sec. 204. Rights under this title.
Sec. 205. Location of mining claims.
Sec. 206. Conversion of existing claims.
Sec. 207. Claim maintenance requirements.
Sec. 208. Failure to comply.
Sec. 209. Basis for contest.
Subtitle B—Environmental Considerations of Mineral Exploration and
Development
Sec. 211. Surface management standard.
Sec. 212. Permits.
Sec. 213. Exploration permits.
Sec. 214. Operations permit.
Sec. 215. Persons ineligible for permits.
Sec. 216. Financial assurance.
Sec. 217. Reclamation.
Sec. 218. State law and regulation.
Sec. 219. Unsuitability review.
Sec. 220. Certain mineral activities covered by other law.
Subtitle C—Abandoned Locatable Minerals Mine Reclamation Fund
Sec. 231. Abandoned locatable minerals mine reclamation.
Sec. 232. Use and objectives of the fund.
Sec. 233. Eligible lands and waters.
Sec. 234. Fund expenditures.
Sec. 235. Authorization of appropriations.
Sec. 236. Royalty.
Subtitle D—Administrative and Miscellaneous Provisions
PART 1—ADMINISTRATIVE PROVISIONS
Sec. 241. Policy functions.
Sec. 242. User fees.
Sec. 243. Public participation requirements.
Sec. 244. Inspection and monitoring.
Sec. 245. Citizens suits.
Sec. 246. Administrative and judicial review.
Sec. 247. Enforcement.
Sec. 248. Regulations; effective dates.
PART 2—MISCELLANEOUS PROVISIONS
Sec. 249. Transitional rules; surface management requirements.
Sec. 250. Claims subject to special rules.
Sec. 251. Purchasing power adjustment.
Sec. 252. Savings clause.
Sec. 253. Availability of public records.
Sec. 254. Miscellaneous powers.
Sec. 255. Limitation on patent issuance.
Sec. 256. Multiple mineral development and surface resources.
Sec. 257. Mineral materials.
Sec. 258. Application of Act to beneficiation and processing of non-Federal
minerals on Federal lands.
Sec. 259. Compliance with Buy American Act.
Sec. 260. Sense of Congress.
Sec. 261. Prohibition of contracts.
Sec. 262. Severability.
Sec. 263. Award of compensation for takings from fund.
Sec. 264. Report to Congress on mining claims in the United States held by
foreign firms.
TITLE III—REVENUES DEDICATED TO DEFICIT REDUCTION
Sec. 301. Deficit reduction lock-box.
TITLE I—CORPORATE TAX AND
OTHER PROVISIONS
Subtitle A—Tax Provisions
SEC. 101. ELIMINATION OF EXCLUSION OF CERTAIN IN-
COME OF FOREIGN SALES CORPORATIONS.
(a) IN GENERAL.—Section 921 of the Internal Reve-
nue Code of 1986 (relating to exempt foreign trade income
excluded from gross income) is amended by adding at the
end the following new subsection:
‘‘(e) TERMINATION.—This section shall not apply to
any taxable year beginning after December 31, 1997.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1997.
SEC. 102. REPEAL OF INCENTIVES FOR ALCOHOL FUELS.
(a) REPEAL.—Section 40 of the Internal Revenue
Code of 1986 is repealed.
(b) CONFORMING REDUCTIONS OF OTHER INCEN-
TIVES FOR ETHANOL FUEL.—
(1) REPEAL OF REDUCED RATE ON ETHANOL
FUEL PRODUCED OTHER THAN FROM PETROLEUM
OR NATURAL GAS.—Subsection (b) of section 4041
is amended to read as follows:
‘‘(b) EXEMPTION
FOR
OFF-HIGHWAY
BUSINESS
USE.—
‘‘(1) IN GENERAL.—No tax shall be imposed by
subsection (a) or (d)(1) on liquids sold for use or
used in an off-highway business use.
‘‘(2) TAX WHERE OTHER USE.—If a liquid on
which no tax was imposed by reason of paragraph
(1) is used otherwise than in an off-highway busi-
ness use, a tax shall be imposed by paragraph
(1)(B), (2)(B), or (3)(A)(ii) of subsection (a)
(whichever is appropriate) and by the corresponding
provision of subsection (d)(1) (if any).
‘‘(3) OFF-HIGHWAY BUSINESS USE DEFINED.—
For purposes of this subsection, the term ‘off-high-
way business use’ has the meaning given to such
term by section 6421(e)(2); except that such term
shall not, for purposes of subsection (a)(1), include
use in a diesel-powered train.’’
(2) REPEAL OF REDUCED RATE ON ETHANOL
FUEL PRODUCED FROM NATURAL GAS.—Subsection
(m) of section 4041 is amended—
(A) by striking ‘‘or ethanol’’ each place it
appears (including the heading of paragraph
(2)), and
(B) by striking ‘‘, ethanol, or other alco-
hol’’ in paragraph (2) and inserting ‘‘or other
alcohol (other than ethanol)’’.
(c) CONFORMING AMENDMENTS TO EXCISE TAXES;
FUEL ALCOHOL TAXED IN SAME MANNER AS OTHER
MOTOR FUELS.—
(1) IN
GENERAL.—Paragraph (1) of section
4083(a) (defining taxable fuel) is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A), by strik-
ing the period at the end of subparagraph (B) and
inserting ‘‘, and’’, and by adding at the end the fol-
lowing:
‘‘(C) fuel alcohol.’’
(2) FUEL ALCOHOL.—Subsection (a) of section
4083 is amended by adding at the end the following
new paragraph:
‘‘(4) FUEL ALCOHOL.—The term ‘fuel alcohol’
means any alcohol (including ethanol and meth-
anol)—
‘‘(A) which is produced other than from
petroleum, natural gas, or coal (including peat),
and
‘‘(B) which is withdrawn from the distillery
where produced free of tax under chapter 51 by
reason of section 5181 or so much of section
5214(a)(1) as relates to fuel use.’’
(3) RATE
OF
TAX.—Clause (i) of section
4081(a)(2)(A) is amended by inserting ‘‘or fuel alco-
hol’’ after ‘‘gasoline’’.
(4) SPECIAL RULES FOR IMPOSITION OF TAX.—
Paragraph (1) of section 4081(a) is amended by
adding at the end the following new subparagraph:
‘‘(C) SPECIAL
RULES
FOR
FUEL
ALCO-
HOL.—In the case of fuel alcohol—
‘‘(i) the distillery where produced shall
be treated as a refinery, and
‘‘(ii) subparagraph (B) shall be ap-
plied by including transfers by truck or rail
in excess of such minimum quantities as
the Secretary shall prescribe.’’
(5) REPEAL OF REDUCED RATES ON ALCOHOL
FUELS.—
(A) Section 4041 is amended by striking
subsection (k).
(B) Section 4081 is amended by striking
subsection (c).
(C) Section 4091 is amended by striking
subsection (c).
(6) CONFORMING AMENDMENTS.—
(A) Paragraph (2) of section 4041(a) is
amended by adding at the end the following:
‘‘No tax shall be imposed by this paragraph on
the sale or use of any liquid if tax was imposed
on such liquid under section 4081 and the tax
thereon was not credited or refunded.’’
(B) Section 6427 is amended by striking
subsection (f).
(C) Subsection (i) of section 6427 is
amended by striking paragraph (3).
(D) Paragraph (2) of section 6427(k) is
amended by striking ‘‘(3)’’.
(E)(i) Paragraph (1) of section 6427(l) is
amended by striking ‘‘or’’ at the end of sub-
paragraph (A), by redesignating subparagraph
(B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subpara-
graph:
‘‘(B) any fuel alcohol (as defined in section
4083) on which tax has been imposed by sec-
tion 4081, or’’.
(ii) Paragraph (2) of section 6427(l) is
amended by striking ‘‘and’’ at the end of sub-
paragraph (A), by redesignating subparagraph
(B) as subparagraph (C), and by inserting after
subparagraph (A) the following new subpara-
graph:
‘‘(B) in the case of fuel alcohol (as so de-
fined), any use which is exempt from the tax
imposed by section 4041(a)(2) other than by
reason of a prior imposition of tax, and’’.
(iii) The heading of subsection (l) of sec-
tion 6427 is amended by inserting ‘‘, FUEL AL-
COHOL,’’ after ‘‘DIESEL FUEL’’.
(F) 
Sections 
9503(b)(1)(E) 
and
9508(b)(2) are each amended by striking ‘‘and
kerosene’’ and inserting ‘‘kerosene, and fuel al-
cohol’’.
(G) Section 9502 is amended by striking
subsection (e) and by redesignating subsection
(f) as subsection (e).
(H) Subsection (e) of section 9502 (as re-
designated by subparagraph (I)) is amended by
striking paragraph (2) and by redesignating
paragraph (3) as paragraph (2).
(I) Subsection (b) of section 9503 is
amended by striking paragraph (5).
(J) Paragraph (3) of section 9503(f) is
amended to read as follows:
‘‘(3) PARTIALLY EXEMPT METHANOL FUEL.—
In the case of a rate of tax determined under section
4041(m), the Highway Trust Fund financing rate is
the excess (if any) of the rate so determined over 4.3
cents per gallon.’’
(d) EFFECTIVE DATE.—
(1) REPEAL OF THE CREDIT.—The repeal made
by subsection (a) shall apply to taxable years begin-
ning after December 31, 1997.
(2) 
AMENDMENTS
RELATING
TO
EXCISE
TAXES.—The amendments made by subsections (b)
and (c) shall take effect on January 1, 1998.
(e) FLOOR STOCK TAXES.—
(1) IMPOSITION OF TAX.—In the case of fuel al-
cohol which is held on January 1, 1998, by any per-
son, there is hereby imposed a floor stocks tax of
18.4 cents per gallon.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing fuel alcohol on January 1, 1998, to which
the tax imposed by paragraph (1) applies shall
be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore June 30, 1998.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) FUEL ALCOHOL.—The term ‘‘fuel alco-
hol’’ has the meaning given such term by sec-
tion 4083 of the Internal Revenue Code of
1986, as amended by this section.
(B) HELD
BY
A
PERSON.—Fuel alcohol
shall be considered as ‘‘held by a person’’ if
title thereto has passed to such person (whether
or not delivery to the person has been made).
(C) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or his del-
egate.
(4) EXCEPTION FOR EXEMPT USES.—The tax
imposed by paragraph (1) shall not apply to fuel al-
cohol held by any person exclusively for any use to
the extent a credit or refund of the tax imposed by
section 4081 of the Internal Revenue Code of 1986
is allowable for such use.
(5) EXCEPTION FOR FUEL HELD IN VEHICLE
TANK.—No tax shall be imposed by paragraph (1)
on fuel alcohol held in the tank of a motor vehicle
or motorboat.
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on fuel alcohol held on
January 1, 1976, by any person if the aggre-
gate amount of fuel alcohol held by such person
on such date does not exceed 2,000 gallons.
The preceding sentence shall apply only if such
person submits to the Secretary (at the time
and in the manner required by the Secretary)
such information as the Secretary shall require
for purposes of this paragraph.
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5).
(C) CONTROLLED GROUPS.—For purposes
of this paragraph—
(i) CORPORATIONS.—
(I) IN
GENERAL.—All persons
treated as a controlled group shall be
treated as 1 person.
(II) CONTROLLED
GROUP.—The
term ‘‘controlled group’’ has the
meaning given to such term by sub-
section (a) of section 1563 of such
Code; except that for such purposes
the phrase ‘‘more than 50 percent’’
shall be substituted for the phrase ‘‘at
least 80 percent’’ each place it ap-
pears in such subsection.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i)
shall apply to a group of persons under
common control where 1 or more of such
persons is not a corporation.
(7) OTHER LAWS APPLICABLE.—All provisions
of law, including penalties, applicable with respect to
the taxes imposed by section 4081 of such Code
shall, insofar as applicable and not inconsistent with
the provisions of this subsection, apply with respect
to the floor stock taxes imposed by paragraph (1) to
the same extent as if such taxes were imposed by
such section 4081.
SEC. 103. SOURCE OF INCOME FROM CERTAIN SALES OF IN-
VENTORY PROPERTY.
(a) GENERAL RULE.—Subsection (b) of section 865
of the Internal Revenue Code of 1986 (relating to excep-
tion for inventory property) is amended to read as follows:
‘‘(b) INVENTORY PROPERTY.—
‘‘(1) INCOME ATTRIBUTABLE TO PRODUCTION
ACTIVITY.—In the case of income from the sale of
inventory property produced (in whole or in part) by
the taxpayer—
‘‘(A) a portion (determined under regula-
tions) of such income shall be allocated to pro-
duction activity (and sourced in the United
States or outside the United States depending
on where such activity occurs), and
‘‘(B) the remaining portion of such income
shall be sourced under the other provisions of
this section.
The regulations prescribed under subparagraph (A)
shall provide that at least 50 percent of such income
shall be allocated to production activities.
‘‘(2) SALES INCOME.—
‘‘(A) UNITED
STATES
RESIDENTS.—In-
come from the sale of inventory property by a
United States resident shall be sourced outside
the United States if—
‘‘(i) the property is sold for use, con-
sumption, or disposition outside the United
States and an office or another fixed place
of business of the taxpayer outside the
United States participated materially in
the sale, and
‘‘(ii) such sale is not (directly or indi-
rectly) to an affiliate of the taxpayer.
‘‘(B) NONRESIDENT.—Income from the
sale of inventory property by a nonresident
shall be sourced in the United States if—
‘‘(i) the taxpayer has an office or
other fixed place of business in the United
States, and
‘‘(ii) such sale is through such office
or other fixed place of business.
This subparagraph shall not apply if the require-
ments of clauses (i) and (ii) of subparagraph (A) are
met with respect to such sale.
‘‘(3) COORDINATION
WITH
TREATIES.—For
purposes of paragraph (2)(A)(i), a United States
resident shall not be treated as having an office or
fixed place of business in a foreign country if a trea-
ty prevents such country from imposing an income
tax on the income.’’
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to income from sales occurring
after December 31, 1997.
Subtitle B—Agricultural-Related
Provisions
SEC. 111. 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 the following
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
on acreage subject to a production flexibility contract en-
tered 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. 112. REPEAL OF TITLE III OF AGRICULTURAL TRADE
ACT OF 1978.
Title III of the Agricultural Trade Act of 1978 (7
U.S.C. 5651 et seq.) is repealed.
SEC. 113. REPEAL OF SECTION 203 OF AGRICULTURAL
TRADE ACT OF 1978.
Section 203 of the Agricultural Trade Act of 1978
(7 U.S.C. 5623) is repealed.
SEC. 114. ELIMINATION OF FEDERAL SUBSIDIES FOR TO-
BACCO.
(a) ELIMINATION OF TOBACCO PRICE SUPPORT.—
(1) ELIMINATION.—The Agricultural Act of
1949 (7 U.S.C. 1421 et seq.) is amended by striking
sections 106, 106A, and 106B (7 U.S.C. 1445,
1445–1, 1445–2).
(2) CONFORMING AMENDMENTS.—The Agricul-
tural Act of 1949 (7 U.S.C. 1421 et seq.) is further
amended—
(A) in section 101 (7 U.S.C. 1441)—
(i) in subsection (a), by striking ‘‘to-
bacco (except as otherwise provided here-
in), corn,’’ and inserting ‘‘corn’’;
(ii) by striking subsection (c); and
(iii) in subsection (d)(3), by striking
‘‘, except tobacco,’’; and
(B) in section 408 (7 U.S.C. 1428)—
(i) in subsection (c), by striking ‘‘to-
bacco,’’; and
(ii) in subsection (d), by adding before
the period at the end the following: ‘‘or to-
bacco’’.
(b) 
ELIMINATION
OF
TOBACCO
MARKETING
QUOTAS.—
(1) 
ELIMINATION.—Part 
I 
(sections 
311
through 320C) of subtitle B of title III of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1311–
1314i) is repealed.
(2) CONFORMING AMENDMENTS.—The Agricul-
tural Adjustment Act of 1938 is further amended—
(A) in section 301(b) (7 U.S.C. 1301(b))—
(i) by striking paragraphs (3)(C),
(10)(B), (14)(B), (14)(C), (14)(D), (15),
(16)(B), and (17);
(ii) in paragraph (6)(A), by striking
‘‘tobacco,’’
(iii) in the undesignated subpara-
graphs in paragraph (7), by striking
‘‘Tobacco (flue-cured), July 1–June 30;
‘‘Tobacco (other than flue-cured), October
1–September 30;’’
(iv) in paragraph (11)(B), by striking
‘‘and tobacco’’; and
(v) in paragraph (12), by striking ‘‘to-
bacco,’’;
(B) in section 303 (7 U.S.C. 1303), by
striking ‘‘rice, or tobacco’’ and inserting ‘‘or
rice’’; and
(C) in section 372(b) (7 U.S.C. 1372(b)),
by striking ‘‘Except as provided in section
320B, the amount’’ in the third sentence and
inserting ‘‘The amount’’.
(c) CONFORMING AMENDMENTS.—
(1) BURLEY TOBACCO IMPORTS.—Section 3 of
Public Law 98–59 (7 U.S.C. 625) is repealed.
(2) TRANSFER
OF
TOBACCO
ALLOTMENTS.—
Section 703 of Public Law 89–321 (7 U.S.C. 1316;
79 Stat. 1210) is amended by striking the second
sentence.
(3) 
BURLEY
TOBACCO
ACREAGE
ALLOT-
MENTS.—The Act of July 12, 1952 (7 U.S.C. 1315),
is repealed.
(d) APPLICATION OF AMENDMENTS.—The amend-
ments made by this section shall apply with respect to the
1997 and subsequent crops of tobacco. As soon as possible
after operations are completed with regard to the 1996
crop of tobacco, the Secretary of Agriculture shall termi-
nate all loan agreements entered into with tobacco pro-
ducer associations under section 106A of the Agricultural
Adjustment Act of 1938 and provide for the disposal of
all funds in the No Net Cost Tobacco Fund of those asso-
ciations and the No Net Cost Tobacco Account of the
Commodity Credit Corporation.
(e) CONTINUED LIABILITY
OF PRODUCERS.—An
amendment made by this section shall not affect the liabil-
ity of any person under any provision of law as in effect
before the date of the enactment of this Act.
(f) PROHIBITION ON SUBSEQUENT PROVISION OF
PRICE SUPPORT.—With respect to the 1997 and subse-
quent crops of tobacco, Secretary of Agriculture may not
make price support available, whether in the form of loans,
payments, purchases, or other operations, by using the
funds of the Commodity Credit Corporation or under the
authority of any law.
Subtitle C—Other Subsidies
SEC. 121. ABOLITION OF ADVANCED TECHNOLOGY PRO-
GRAM.
(a) ABOLISHMENT.—
(1) REPEAL OF SECTION 28 OF THE NATIONAL
INSTITUTE
OF
STANDARDS
AND
TECHNOLOGY
ACT.—Section 28 of the National Institute of Stand-
ards and Technology Act (15 U.S.C. 278n) is re-
pealed.
(2) CLERICAL
AMENDMENTS.—The National
Institute of Standards and Technology Act (15
U.S.C. 271 et seq.) is amended—
(A) in section 2(d), by striking ‘‘, 26, and
28’’ and inserting ‘‘and 26’’; and
(B) in section 10(h)(1), by striking ‘‘, in-
cluding the Program established under section
28,’’.
(b) RESCISSION OF UNOBLIGATED FUNDS APPRO-
PRIATED.—Any funds appropriated for the Advanced
Technology Program established under section 28 of the
National Institute of Standards and Technology Act (15
U.S.C. 278n) that are unobligated on the date of the en-
actment of this Act are hereby rescinded.
SEC. 122. TENNESSEE VALLEY AUTHORITY FUNDING ELIMI-
NATION.
Section 27 of the Tennessee Valley Authority Act of
1933 (16 U.S.C. 831z) is amended to read as follows:
‘‘SEC. 27. No appropriations are authorized to carry
out the provisions of this Act after September 30, 1997.’’.
SEC. 123. ELIMINATION OF PURCHASER ROAD CREDITS
AND OTHER FEDERAL FUNDING OF FOREST
ROADS FOR LOGGING.
(a) ELIMINATION OF PURCHASER ROAD CREDITS.—
Section 4 of Public Law 88–657 (16 U.S.C. 535; com-
monly known as the National Forest Roads and Trails
Act) is amended—
(1) by inserting ‘‘(a)’’ before the first sentence;
(2) by striking ‘‘including provisions for amorti-
zation of road costs in contracts’’ and inserting ‘‘ex-
cept that the Secretary may not provide effective
purchaser credit for road construction’’;
(3) by striking the last sentence; and
(4) by adding at the end the following new sub-
section:
‘‘(b) EFFECT ON EXISTING PURCHASER ROAD CRED-
ITS.—Effective purchaser credit for any contract awarded
before the date of the enactment of this subsection may
continue to be used in accordance with subsection (a) and
the date of the enactment of this Act for the con-
struction or reconstruction of any forest road that
will be used principally for logging, including under
section 205 of title 23, United States Code (relating
to forest development roads and trails).
(2) USE OF FUNDS FOR SPECIFICATIONS AND
REQUIREMENTS.—Paragraph (1) does not prohibit
the obligation of Federal funds for the establishment
of specifications and requirements for the construc-
tion or reconstruction of roads under timber con-
tracts and the oversight and enforcement of compli-
ance with those specifications and requirements.
(3) RECOVERY OF ROAD COSTS.—The Secretary
of Agriculture shall seek to recover from persons
who use forest roads for logging that portion of the
cost to the Federal Government of construction or
reconstruction of forest roads that is attributable to
that use.
SEC. 124. PROHIBITION AGAINST PROVISION OF FEDERAL
FUNDS PURSUANT TO THE NEW ARRANGE-
MENTS TO BORROW OF THE INTERNATIONAL
MONETARY FUND.
No officer, employee, or agent of the United States
may, directly or indirectly, provide Federal funds to, or
for the benefit of, the International Monetary Fund or any
instrumentality thereof, pursuant to the New Arrange-
ments to Borrow of the International Monetary Fund.
TITLE 
II—MINERAL 
EXPLO-
RATION AND DEVELOPMENT
Subtitle A—Mineral Exploration
and Development
SEC. 201. SHORT TITLE, FINDINGS AND PURPOSES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Mineral Exploration and Development Act of 1997’’.
(b) FINDINGS.—Congress finds and declares the fol-
lowing:
(1) The general mining laws, commonly re-
ferred to as the Mining Law of 1872, at one time
promoted the development of the West and provided
a framework for the exploitation of Federal mineral
resources.
(2) Congress recognized that the public interest
was no longer being advanced under the Mining Law
of 1872 when, in 1920, it removed energy minerals
and minerals chiefly valuable for agricultural use,
and in 1955, removed common varieties of mineral
materials, from the scope of the general mining laws
and made such minerals available under regimes
which provide for a financial return to the public for
the disposition of such minerals and which better
safeguard the environment.
(3) The Mining Law of 1872 no longer fosters
the efficient and diligent development of those min-
eral resources still under its scope, giving rise to
speculation and nonmining uses of lands chiefly val-
uable for minerals.
(4) The Mining Law of 1872 does not provide
for a financial return to the American people for use
by claim holders of public domain lands or for the
disposition of valuable mineral resources from such
lands.
(5) The Mining Law of 1872 continues to
transfer lands valuable for mineral resources from
the public domain to private ownership for less than
the fair market value of such lands and mineral re-
sources.
(6) There are a substantial number of acres of
land throughout the Nation disturbed by mining ac-
tivities conducted under the Mining Law of 1872 on
which little or no reclamation was conducted, and
the impacts from these unreclaimed lands pose a
threat to the public health, safety, and general wel-
fare and to environmental quality.
(7) Activities under the Mining Law of 1872
continue to result in disturbances of surface areas
and water resources which burden and adversely af-
fect the public welfare by destroying or diminishing
the utility of public domain lands for other appro-
priate uses and by creating hazards dangerous to
the public health and safety and to the environment.
(8) Existing Federal law and regulations, as
well as applicable State laws, have proven to be in-
adequate to ensure that active mining operations
under the Mining Law of 1872 will not leave to fu-
ture generations a new legacy of hazards associated
with unreclaimed mined lands.
(9) The public interest is no longer being served
by archaic features of the Mining Law of 1872 that
thwart the efficient exploration and development of
those minerals which remain under its scope and
which conflict with modern public land use manage-
ment philosophies.
(10) The public is justified in expecting the dili-
gent development of its mineral resources, a finan-
cial return for the use of public domain lands for
mineral activities as well as for the disposition of
valuable mineral resources from such lands.
(11) It is not in the public interest for public
domain lands to be sold far below fair market value
nor does this aspect of the Mining Law of 1872
comport with modern Federal land policy which is
grounded on the retention of public domain lands
under the principles of multiple use.
(12) Mining and reclamation technology is now
developed so that effective and reasonable regulation
of operations by the Federal Government in accord-
ance with this title is an appropriate and necessary
means to minimize so far as practicable the adverse
social, economic and environmental effects of such
mining operations.
(13) Mining activities on public domain lands
affect interstate commerce, contribute to the eco-
nomic well-being, security and general welfare of the
Nation and should be conducted in an environ-
mentally sound manner.
(14) It is necessary that any revision of the
general mining laws insure that a domestic supply of
hardrock minerals be made available to the domestic
economy of the United States.
(15) America’s economy still depends heavily on
hardrock minerals and a strong environmentally
sound mining industry is critical to the domestic
minerals supply.
(16) Many of the deposits of hardrock minerals
remain to be discovered on the Federal public do-
main.
(17) Private enterprise must be given adequate
incentive to engage in a capital-intensive industry
such as hardrock mining.
(18) The United States, as owner of the public
domain, has a dual interest in insuring a fair return
for mining on the public domain and insuring that
any royalty and fees charged do not discourage es-
sential mining activity on the public domain.
(19) The domestic mining industry provides
thousands of jobs directly and indirectly to the do-
mestic economy and those jobs must be preserved
and encouraged by a sound Federal policy regarding
mining on Federal lands.
(c) PURPOSE.—It is the purpose of this title—
(1) to devise a more socially, fiscally and envi-
ronmentally responsible regime to govern the use of
public domain lands for the exploration and develop-
ment of those minerals not subject to mineral leas-
ing acts or mineral materials statutes;
(2) to provide for a fair return to the public for
the use of public domain lands for mineral activities
and for the disposition of minerals from such lands;
(3) to foster the diligent development of mineral
resources on public domain lands in a manner that
is compatible with other resource values and envi-
ronmental quality;
(4) to promote the restoration of mined areas
left without adequate reclamation prior to the enact-
ment of this Act and which continue, in their
unreclaimed condition, to substantially degrade the
quality of the environment, prevent the beneficial
use of land or water resources, and endanger the
health and safety of the public;
(5) to assure that appropriate procedures are
provided for public participation in the development,
revision and enforcement of regulations, standards
and programs established under this title; and
(6) to, whenever necessary, exercise the full
reach of Federal constitutional powers to ensure the
protection of the public interest through the effective
control of mineral exploration and development ac-
tivities.
SEC. 202. DEFINITIONS AND REFERENCES.
(a) DEFINITIONS.—As used in this title:
(1) The term ‘‘affiliate’’ means with respect to
any person, any of the following:
(A) Any person who controls, is controlled
by, or is under common control with such per-
son.
(B) Any partner of such person.
(C) Any person owning at least 10 percent
of the voting shares of such person.
(2) The term ‘‘applicant’’ means any person ap-
plying for a permit under this title or a modification
to or a renewal of a permit under this title.
(3) The term ‘‘beneficiation’’ means the crush-
ing and grinding of locatable mineral ore and such
processes as are employed to free the mineral from
other constituents, including but not necessarily lim-
ited to, physical and chemical separation techniques.
(4) The term ‘‘claim holder’’ means a person
holding a mining claim located or converted under
this title. Such term may include an agent of a claim
holder.
(5) The term ‘‘control’’ means having the abil-
ity, directly or indirectly, to determine (without re-
gard to whether exercised through one or more cor-
porate structures) the manner in which an entity
conducts mineral activities, through any means, in-
cluding without limitation, ownership interest, au-
thority to commit the entity’s real or financial as-
sets, position as a director, officer, or partner of the
entity, or contractual arrangement. The Secretary
and the Secretary of Agriculture shall jointly pro-
mulgate such rules as may be necessary under this
paragraph.
(6) The term ‘‘exploration’’ means those tech-
niques employed to locate the presence of a locatable
mineral deposit and to establish its nature, position,
size, shape, grade and value not associated with min-
ing, beneficiation, processing or marketing of min-
erals.
(7) The term ‘‘Indian lands’’ means lands held
in trust for the benefit of an Indian tribe or individ-
ual or held by an Indian tribe or individual subject
to a restriction by the United States against alien-
ation.
(8) The term ‘‘Indian tribe’’ means any Indian
tribe, band, nation, pueblo, or other organized group
or community, including any Alaska Native village
or regional corporation as defined in or established
pursuant to the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.), which is recognized as
eligible for the special programs and services pro-
vided by the United States to Indians because of
their status as Indians.
(9) The term ‘‘land use plans’’ means those
plans required under section 202 of the Federal
Land Policy and Management Act of 1976 (43
U.S.C. 1712) or the land management plans for Na-
tional Forest System units required under section 6
of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1604), whichever
is applicable.
(10) The term ‘‘legal subdivisions’’ means an
aliquot quarter quarter section of land as established
by the official records of the public land survey sys-
tem, or a single lot as established by the official
records of the public land survey system if the perti-
nent section is irregular and contains fractional lots,
as the case may be.
(11)(A) The term ‘‘locatable mineral’’ means
any mineral, the legal and beneficial title to which
remains in the United States and which is not sub-
ject to disposition under any of the following:
(i) The Mineral Leasing Act (30 U.S.C.
181 and following).
(ii) The Geothermal Steam Act of 1970
(30 U.S.C. 1001 and following).
(iii) The Act of July 31, 1947, commonly
known as the Materials Act of 1947 (30 U.S.C.
601 and following).
(iv) The Mineral Leasing for Acquired
Lands Act (30 U.S.C. 351 and following).
(B) The term ‘‘locatable mineral’’ does not in-
clude 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.
(12) The term ‘‘mineral activities’’ means any
activity on Federal lands for, related to, or inciden-
tal to, mineral exploration, mining, beneficiation,
processing, or reclamation activities for any locatable
mineral.
(13) The term ‘‘mining’’ means the processes
employed for the extraction of a locatable mineral
from the earth.
(14) The term ‘‘mining claim’’ means a claim
for the purposes of mineral activities.
(15) The term ‘‘National Conservation System
unit’’ means any unit of the National Park System,
National Wildlife Refuge System, National Wild and
Scenic Rivers System, National Trails System, or a
National Conservation Area, National Recreation
Area, a National Forest Monument or any unit of
the National Wilderness Preservation System.
(16) The term ‘‘operator’’ means any person,
conducting mineral activities subject to this title or
any agent of such a person.
(17) The term ‘‘person’’ means an individual,
Indian tribe, partnership, association, society, joint
venture, joint stock company, firm, company, cor-
poration, cooperative or other organization and any
instrumentality of State or local government includ-
ing any publicly owned utility or publicly owned cor-
poration of State or local government.
(18) The term ‘‘processing’’ means processes
downstream of beneficiation employed to prepare
locatable mineral ore into the final marketable prod-
uct, including but not limited to, smelting and elec-
trolytic refining.
(19) The term ‘‘Secretary’’ means the Secretary
of the Interior, unless otherwise specified.
(20) The term ‘‘surface management require-
ments’’ means the requirements and standards of
subtitle B, and such other standards as are estab-
lished by the Secretary governing mineral activities
pursuant to this title.
(b) REFERENCES.—(1) Any reference in this title to
the term ‘‘general mining laws’’ is a reference to those
Acts which generally comprise chapters 2, 12A, and 16,
and sections 161 and 162 of title 30 of the United States
Code.
(2) Any reference in this title to the ‘‘Act of July
23, 1955’’, is a reference to the Act of July 23, 1955,
entitled ‘‘An Act to amend the Act of July 31, 1947 (61
Stat. 681) and the mining laws to provide for multiple
use of the surface of the same tracts of the public lands,
and for other purposes’’ (30 U.S.C. 601 and following).
SEC. 203. LANDS OPEN TO LOCATION.
(a) LANDS OPEN TO LOCATION.—Except as provided
in subsection (b), mining claims may be located under this
title on lands and interests in lands owned by the United
States if—
(1) such lands and interests were open to the
location of mining claims under the general mining
laws on the date of enactment of this Act; or
(2) such lands and interests are opened to the
location of mining claims after the date of enact-
ment of this Act by reason of any administrative ac-
tion or statute.
be eligible for inclusion in such system, pending
a final determination by the Congress of the
status of such lands.
(D) Lands withdrawn from mineral activi-
ties under authority of other law.
(2) DEFINITION.—(A) As used in this sub-
section, the term ‘‘valid existing rights’’ refers to a
mining claim located on lands described in para-
graph (1) of subsection (a) that—
(i) was properly located and maintained
under this title prior to and on the applicable
date, or
(ii) was properly located and maintained
under the general mining laws prior to the ap-
plicable date, and
(I) was supported by a discovery of a
valuable mineral deposit within the mean-
ing of the general mining laws on the ap-
plicable date, and
(II) continues to be valid under this
title.
(B) As used in this paragraph, the term ‘‘appli-
cable date’’ means one of the following:
(i) In the case of lands described in para-
graph (1)(A), such term means the date of the
recommendation referred to in paragraph
(1)(A) if such recommendation is made on or
after the enactment of this Act.
(ii) In the case of lands described in para-
graph (1)(A), if the recommendation referred to
in paragraph (1)(A) was made before the enact-
ment of this Act, such term means the earlier
of (I) the date of enactment of this Act or (II)
the date of any withdrawal of such lands from
mineral activities.
(iii) For lands described in paragraph
(1)(B), such term means the date of the enact-
ment of this Act.
(iv) For lands referred to in paragraph
(1)(C)(i), such term means the date of the en-
actment of the amendment to the Wild and Sce-
nic Rivers Act listing the river segment for
study and for lands referred to in paragraph
(1)(C)(ii), such term means the date of the eli-
gibility determination.
(v) For lands referred to in paragraph
(1)(D), such term means the date of the with-
drawal.
SEC. 204. RIGHTS UNDER THIS TITLE.
The holder of a mining claim located or converted
under this title and maintained in compliance with this
title shall have the exclusive right of possession and use
of the claimed land for mineral activities, including the
right of ingress and egress to such claimed lands for such
activities, subject to the rights of the United States under
this title and other applicable Federal law. Such rights of
the claim holder shall terminate upon completion of min-
eral activities of lands to the satisfaction of the Secretary.
In cases where an area is determined unsuitable under
section 219, holders of claims converted or located under
this title shall be entitled to receive a refund of claim
maintenance fees.
SEC. 205. LOCATION OF MINING CLAIMS.
(a) GENERAL RULE.—A person may locate a mining
claim covering lands open to the location of mining claims
by posting a notice of location, containing the person’s
name and address, the time of location (which shall be
the date and hour of location and posting), and a legal
description of the claim. The notice of location shall be
posted on a suitable, durable monument erected as near
as practicable to the northeast corner of the mining claim.
No person who is not a citizen of the United States, or
a corporation organized under the laws of the United
States or of any State or the District of Columbia may
locate or hold a claim under this title. On or after the
enactment of this Act, a mining claim for a locatable min-
eral on lands open to location—
(1) may be located only in accordance with this
title,
(2) may be maintained only as provided in this
title, and
(3) shall be subject to the requirements of this
title.
(b) USE OF PUBLIC LAND SURVEY.—Except as pro-
vided in subsection (c), each mining claim located under
this title shall (1) be located in accordance with the public
land survey system, and (2) conform to the legal subdivi-
sions thereof. Except as provided in subsection (c)(1), the
legal description of the mining claim shall be based on the
public land survey system and its legal subdivisions.
(c) EXCEPTIONS.—(1) If only a protracted survey ex-
ists for the public lands concerned, each of the following
shall apply in lieu of subsection (b):
(A) The legal description of the mining claim
shall be based on the protracted survey and the min-
ing claim shall be located as near as practicable in
conformance with a protracted legal subdivision.
(B) The mining claim shall be monumented on
the ground by the erection of a suitable, durable
monument at each corner of the claim.
(C) The legal description of the mining claim
shall include a reference to any existing survey
monument, or where no such monument can be
found within a reasonable distance, to a permanent
and conspicuous natural object.
(2) If no survey exists for the public lands concerned,
each of the following shall apply in lieu of subsection (b):
(A) The mining claim shall be a regular square,
with each side laid out in cardinal directions, 40
acres in size.
(B) The claim shall be monumented on the
ground by the erection of a suitable durable monu-
ment at each corner of the claim.
(C) The legal description of the mining claim
shall be expressed in metes and bounds and shall be
defined by and referenced to the closest existing sur-
vey monument, or where no such monument can be
found within a reasonable distance, to a permanent
and conspicuous natural object. Such description
shall be of sufficient accuracy and completeness to
permit recording of the claim upon the public land
records and to permit the claim to be readily found
upon the ground.
(3) In the case of a conflict between the boundaries
of a mining claim as monumented on the ground and the
description of such claim in the notice of location referred
to in subsection (a), the notice of location shall be deter-
minative, except where determined otherwise by the Sec-
retary.
(d) FILING WITH SECRETARY.—(1) Within 30 days
after the location of a mining claim pursuant to this sec-
tion, a copy of the notice of location referred to in sub-
section (a) shall be filed with the Secretary in an office
designated by the Secretary.
(2)(A) Whenever the Secretary receives a copy of a
notice of location of a mining claim under this title, the
Secretary shall assign a serial number to the mining claim,
and immediately return a copy of the notice of location
to the locator of the claim, together with a certificate set-
ting forth the serial number, a description of the claim,
and the claim maintenance requirements of section 207.
The Secretary shall enter the claim on the public land
records.
(B) Return of the copy of the notice of location and
provision of the certificate under subparagraph (A) shall
not constitute a determination by the Secretary that a
claim is valid. Failure by the Secretary to provide such
copy and certificate shall not constitute a defense against
cancellation of a claim for failure to follow applicable re-
quirements of this title.
(3) Notwithstanding any other provision of law, for
every unpatented mining claim located after the date of
enactment of this Act, the locator shall, at the time the
location notice is recorded with the Bureau of Land Man-
agement, pay a location fee of $25.00 per claim. The loca-
tion fee shall be in addition to the claim maintenance fee
payable under section 207.
(4) Subsections (b) and (c) of section 314 of the Fed-
eral Land Policy and Management Act of 1976 (43 U.S.C.
1744(b)) are repealed.
(e) CONVERTED CLAIMS.—For mining claims and
mill sites deemed converted under this title, for the pur-
poses of complying with the requirements of subsection
(d), upon receipt of the initial claim maintenance fee re-
quired under section 207, the Secretary shall issue a cer-
tificate referenced in subsection (d)(2) to the holder of the
mining claim or mill site.
(f) DATE OF LOCATION.—A mining claim located
under this title shall be effective based upon the time of
location.
(g) LANDS COVERED BY CLAIM.—A mining claim lo-
cated or converted under this title shall include all lands
and interests in lands open to location within the bound-
aries of the claim, subject to any prior mining claim lo-
cated or converted under this title.
(h) CONFLICTING LOCATIONS.—Any conflicts be-
tween the holders of mining claims located or converted
under this title relating to relative superiority under the
provisions of this title may be resolved in adjudication pro-
ceedings in a court with proper jurisdiction, including, as
appropriate, State courts. It shall be incumbent upon the
holder of a mining claim asserting superior rights in such
proceedings to demonstrate that such person was the sen-
ior locator, or if such person is the junior locator, that
prior to the location of the claim by such locator—
(1) the senior locator failed to file a copy of the
notice of location within the time provided under
subsection (d); or
(2) the amount of claim maintenance fee paid
by the senior locator at the time of filing the loca-
tion notice referred to in subsection (d) was less
than the amount required to be paid by such locator.
(i) EXTENT OF MINERAL DEPOSIT.—The boundaries
of a mining claim located under this title shall extend ver-
tically downward.
SEC. 206. CONVERSION OF EXISTING CLAIMS.
(a) EXISTING CLAIMS.—Notwithstanding any other
provision of law, on the effective date of this title any
unpatented mining claim for a locatable mineral located
under the general mining laws prior to the date of enact-
ment of this Act shall become subject to this title’s provi-
sions and shall be deemed a converted mining claim under
this title. Nothing in this title shall be construed to affect
extralateral rights in any valid lode mining claim existing
on the date of enactment of this Act. After the effective
date of this title, there shall be no distinction made as
to whether such claim was originally located as a lode or
placer claim.
(b) MILL AND TUNNEL SITES.—On the effective date
of this title, any unpatented mill or tunnel site located
under the general mining laws before the date of enact-
ment of this Act shall become subject to this title’s provi-
sions and shall be deemed a converted mining claim under
this title.
(c) POSTCONVERSION.—Any unpatented mining
claim or mill site located under the general mining laws
shall be deemed to be a prior claim for the purposes of
section 205(g) when converted pursuant to subsection (a)
or (b).
(d) DISPOSITION OF LAND.—In the event a mining
claim is located under this title for lands encumbered by
a prior mining claim or mill site located under the general
mining laws, such lands shall become part of the claim
located under this title if the claim or mill site located
under the general mining laws is declared null and void
under this section or is otherwise declared null and void
thereafter.
(e) CONFLICTS.—(1) Any conflicts in existence before
the effective date of this title between holders of mining
claims, mill sites and tunnel sites located under the gen-
eral mining laws shall be subject to, and shall be resolved
in accordance with, applicable laws governing such con-
flicts in effect before the effective date of enactment of
this Act in a court of proper jurisdiction.
(2) Any conflicts not relating to matters provided for
under section 205(h) between the holders of a mining
claim located under this title and a mining claim, mill,
or tunnel site located under the general mining laws aris-
ing either before or after the conversion of any such claim
or site under this section shall be resolved in a court with
proper jurisdiction.
SEC. 207. CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL.—(1) The holder of each mining
claim converted pursuant to this title shall pay to the Sec-
retary an annual claim maintenance fee of $100 per claim.
(2) The holder of each mining claim located pursuant
to this title shall pay to the Secretary an annual claim
maintenance fee of $200 per claim.
(b) TIME OF PAYMENT.—The claim maintenance fee
payable pursuant to subsection (a) for any year shall be
paid on or before August 31 of each year, except that in
the case of claims referred to in subsection (a)(2), for the
initial calendar year in which the location is made, the
locator shall pay the initial claim maintenance fee at the
time the location notice is recorded with the Bureau of
Land Management.
(c) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE-
NANCE FEES 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 section 2511(e)(2)
of the Energy Policy Act of 1992 (Public Law 102–486;
106 Stat. 3111; 30 U.S.C. 242).
(d) 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.