retary or the Secretary of Agriculture, as appro-
priate, of reviewing and approving or disapproving 
such transfer, assignment, or sale, as determined by 
the Secretary of the Interior. 
SEC. 304. OPERATIONS PERMIT. 
(a) OPERATIONS PERMIT.—(1) Any applicant that is 
in compliance with all provisions of this Act may apply 
to the Secretary concerned for an operations permit au-
thorizing the applicant to carry out mineral activities, 
other than casual use, on— 
(A) any valid mining claim, valid millsite claim, 
valid tunnel site claim, or lease issued under this 
Act; and 
(B) such additional Federal land as the Sec-
retary may determine is necessary to conduct the 
proposed mineral activities, if the operator obtains a 
right-of-way permit for use of such additional lands 
under title V of the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1761 et seq.) and 
agrees to pay all fees required under that title for 
the permit under that title. 
(2) If the Secretary decides to issue such permit, the 
permit shall include such terms and conditions as pre-
scribed by such Secretary to carry out this title. 
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(b) PERMIT APPLICATION REQUIREMENTS.—An ap-
plication for an operations permit under this section shall 
be submitted in a manner satisfactory to the Secretary 
concerned and shall contain site characterization data, an 
operations plan, a reclamation plan, monitoring plans, 
long-term maintenance plans, to the extent necessary, and 
such documentation as necessary to ensure compliance 
with applicable Federal and State environmental laws and 
regulations. If the proposed mineral activities will be car-
ried out in conjunction with mineral activities on adjacent 
non-Federal lands, information on the location and nature 
of such operations may be required by the Secretary. 
(c) PERMIT ISSUANCE OR DENIAL.—(1) After pro-
viding for public participation pursuant to subsection (i), 
the Secretary concerned shall issue an operations permit 
if such Secretary makes each of the following determina-
tions in writing, and shall deny a permit if such Secretary 
finds that the application and applicant do not fully meet 
the following requirements: 
(A) The permit application, including the site 
characterization data, operations plan, and reclama-
tion plan, are complete and accurate and sufficient 
for developing a good understanding of the antici-
pated impacts of the mineral activities and the effec-
tiveness of proposed mitigation and control. 
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(B) The applicant has demonstrated that the 
proposed reclamation in the operation and reclama-
tion plan can be and is likely to be accomplished by 
the applicant and will not cause undue degradation. 
(C) The condition of the land, including the fish 
and wildlife resources and habitat contained thereon, 
will be restored after the completion of mineral ac-
tivities. 
(D) The area subject to the proposed plan is 
not listed in section 111 or otherwise ineligible for 
mineral activities. 
(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 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-
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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 constitute 
a removal or remedial action under section 101 of the 
Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9601), the Secretary 
shall consult with the Administrator of the Environmental 
Protection Agency prior to the issuance of an operations 
permit. The Administrator of the Environmental Protec-
tion Agency shall ensure that the reclamation plan does 
not require activities that would increase the costs or like-
lihood of removal or remedial actions under the Com-
prehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.) or correc-
tive actions under the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.). 
(d) TERM OF PERMIT; RENEWAL.— 
(1) IN GENERAL.—An operations permit— 
(A) shall be for an initial term not longer 
than the shorter of— 
(i) the period necessary to accomplish 
the proposed mineral activities subject to 
the permit; and 
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(ii) the length of time remaining on 
the applicant’s hardrock mining lease; 
(B) shall be renewed for an additional 10- 
year period if the operation is in compliance 
with the requirements of this Act and other ap-
plicable law; and 
(C) shall expire 5 years following the com-
mencement of a temporary cessation unless, 
prior to the expiration of the 5 years, the mine 
operator has filed with the Secretary a request 
for approval to resume operations. 
(2) FAILURE TO COMMENCE MINERAL ACTIVI-
TIES.—Failure by the operator to commence mineral 
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 section 
111. 
(e) PERMIT MODIFICATION.— 
(1) APPLICATION.—During the term of an op-
erations permit the operator may submit an applica-
tion to modify the permit (including the operations 
plan or reclamation plan). 
(2) MODIFICATION BY THE SECRETARY CON-
CERNED.—The Secretary concerned may, at any 
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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) 
UNANTICIPATED
EVENTS
OR
CONDI-
TIONS.—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 or 
biological resources that were not addressed in 
the original plan; 
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(G) the discovery of a properties eligible 
for listing on the National Register of Historic 
Places; or 
(H) the discovery of hazards to public safe-
ty. 
(f) TEMPORARY CESSATION OF OPERATIONS.— 
(1) SECRETARIAL
APPROVAL
REQUIRED.—An 
operator conducting mineral activities under an op-
erations permit in effect under this title may not 
temporarily cease mineral activities for a period 
greater than 180 days unless the Secretary con-
cerned has approved such temporary cessation or 
unless the temporary cessation is permitted under 
the original permit. 
(2) PREVIOUSLY
ISSUED
OPERATIONS
PER-
MITS.—Any operator temporarily ceasing mineral ac-
tivities for a period greater than 90 days under an 
operations permit issued before the date of enact-
ment of this Act shall submit, before the expiration 
of such 90-day period, a complete application for 
temporary cessation of operations to the Secretary 
concerned for approval unless the temporary ces-
sation is permitted under the original permit. 
(3) REQUIRED INFORMATION.—An application 
for approval of temporary cessation of operations 
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shall include such information required under sub-
section (b) and any other provisions prescribed by 
the Secretary concerned to minimize impacts on 
human health, the environment, or properties eligible 
for listing on the National Register of Historic 
Places. After receipt of a complete application for 
temporary cessation of operations such Secretary 
shall conduct an inspection of the area for which 
temporary cessation of operations has been re-
quested. 
(4) CONDITIONS FOR APPROVAL.—To approve 
an application for temporary cessation of operations, 
the Secretary concerned shall make each of the fol-
lowing determinations: 
(A) A determination that the methods for 
securing surface facilities and restricting access 
to the permit area, or relevant portions thereof, 
will effectively protect against hazards to the 
health and safety of the public and fish and 
wildlife or damage to properties eligible for list-
ing on the National Register of Historic Places. 
(B) A determination that reclamation is in 
compliance with the approved reclamation plan, 
except in those areas specifically designated in 
the application for temporary cessation of oper-
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ations for which a delay in meeting such stand-
ards is necessary to facilitate the resumption of 
operations. 
(C) A determination that the amount of fi-
nancial assurance filed with the permit applica-
tion is sufficient to assure completion of the 
reclamation activities identified in the approved 
reclamation plan in the event of forfeiture. 
(D) A determination that any outstanding 
notices of violation and cessation orders in-
curred in connection with the plan for which 
temporary cessation is being requested are ei-
ther stayed pursuant to an administrative or ju-
dicial appeal proceeding or are in the process of 
being abated to the satisfaction of the Secretary 
concerned. 
(g) PERMIT REVIEWS.—The Secretary concerned 
shall review each permit issued under this section every 
10 years during the term of such permit, and before ap-
proving the resumption of operations under subsection (f), 
such Secretary shall require the operator to take such ac-
tions as the Secretary deems necessary to assure that min-
eral activities conform to the permit, including adjustment 
of financial assurance requirements. 
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(h) 
TRANSFER, 
ASSIGNMENT, 
OR
SALE
OF 
RIGHTS.— 
(1) WRITTEN APPROVAL.—No transfer, assign-
ment, or sale of rights granted by a permit under 
this section shall be made without the prior written 
approval of the Secretary concerned. 
(2) CONDITIONS OF APPROVAL.—The Secretary 
concerned may allow a person holding a permit to 
transfer, assign, or sell rights under the permit to 
a successor, if such Secretary finds, in writing, that 
the successor— 
(A) has submitted all required information 
and is eligible to receive a permit in accordance 
with section 305; 
(B) has submitted evidence of financial as-
surance satisfactory under section 306; and 
(C) meets any other requirements specified 
by such Secretary. 
(3) ASSUMED LIABILITY.—The successor in in-
terest shall assume the liability and reclamation re-
sponsibilities established by the existing permit and 
shall conduct the mineral activities in full compli-
ance with this Act, and the terms and conditions of 
the permit as in effect at the time of transfer, as-
signment, or sale. 
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(4) FEE.—Each application for approval of a 
permit transfer, assignment, or sale pursuant to this 
subsection shall be accompanied by a fee payable to 
the Secretary concerned in such amount as may be 
established by such Secretary. Such amount shall be 
equal to the actual or anticipated cost of reviewing 
and approving or disapproving such transfer, assign-
ment, 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), any claim, 
license, or lease holder (if different than the applicant) of 
the claim, license, or lease concerned, or any affiliate or 
officer or director of the applicant is currently in violation 
of any of the following: 
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(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 concerned 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) 
REINSTATEMENT.—The 
Secretary 
con-
cerned 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 cor-
rected or is in the process of being corrected to the 
satisfaction of such Secretary and the regulatory au-
thority involved or if the applicant submits proof 
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that the violator has filed and is presently pursuing, 
a direct administrative or judicial appeal to contest 
the existence of the violation. For purposes of this 
section, an appeal of any applicant’s relationship to 
an affiliate shall not constitute a direct administra-
tive or judicial appeal to contest the existence of the 
violation. 
(2) 
CONDITIONAL
APPROVAL.—Any 
permit 
which is issued or reinstated based upon proof sub-
mitted under this subsection shall be conditionally 
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 
suspended or revoked. 
(d) PATTERN OF WILLFUL VIOLATIONS.—No permit 
may be issued under this Act 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, license, or lease holder if different than the appli-
cant. 
SEC. 306. FINANCIAL ASSURANCE. 
(a) FINANCIAL ASSURANCE REQUIRED.— 
(1) FORM OF ASSURANCE.—After a permit is 
issued under this title and before any exploration or 
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operations begin under the permit, the operator shall 
file with the Secretary concerned evidence of finan-
cial assurance payable to the United States. The fi-
nancial assurance shall be provided in the form of a 
surety bond, letters of credit, certificates of deposit, 
or cash. 
(2) COVERED ACTIVITIES.—The financial assur-
ance shall cover all lands within the initial permit 
area and all affected waters that may require res-
toration, treatment, or other management as a re-
sult of mineral activities, and shall be extended to 
cover all lands and waters added pursuant to any 
permit modification made under section 303(e) or 
section 304(e), 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-
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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), but the financial 
assurance shall otherwise be in compliance with this sec-
tion. The Secretary concerned shall review the financial 
guarantee every 3 years and as part of the permit applica-
tion review under section 304(g). 
(e) RELEASE.—Upon request, and after notice and 
opportunity for public comment, and after inspection by 
the Secretary concerned, 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: 
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(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 
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111 
er, license holder, lease holder, or operator (or any 
person who controls the claim holder, license holder, 
lease holder, or operator) as will most likely bring 
about abatement in the most expeditious manner 
possible. Such alternative enforcement action may 
include seeking appropriate injunctive relief to bring 
about abatement. Nothing in this paragraph shall 
preclude the Secretary concerned from taking alter-
native enforcement action prior to the expiration of 
30 days. 
(5) FAILURE OR DEFAULT.—If a claim holder, 
license holder, lease holder, or operator (or any per-
son who controls the claim holder, license holder, 
lease holder, or operator) fails to abate a violation 
or defaults on the terms of the permit, the Secretary 
concerned shall forfeit the financial assurance for 
the plan as necessary to ensure abatement and rec-
lamation under this Act. The Secretary concerned 
may prescribe conditions under which a surety may 
perform reclamation in accordance with the ap-
proved plan in lieu of forfeiture. 
(6) PENDING
REVIEW.—The Secretary con-
cerned shall not cause forfeiture of the financial as-
surance while administrative or judicial review is 
pending. 
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