(2) The term ‘‘applicant’’ means any person ap-
plying for a permit under this Act or a modification 
to or a renewal of a permit under this Act. 
(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 ‘‘casual use’’— 
(A) subject to subparagraphs (B) and (C), 
means mineral activities that do not ordinarily 
result in any disturbance of public lands and re-
sources; 
(B) includes collection of geochemical, 
rock, 
soil, 
or 
mineral 
specimens 
using 
handtools, hand panning, or nonmotorized sluic-
ing; and 
(C) does not include— 
(i) the use of mechanized earth-mov-
ing equipment, suction dredging, or explo-
sives; 
(ii) the use of motor vehicles in areas 
closed to off-road vehicles; 
(iii) the construction of roads or drill 
pads; and 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(iv) the use of toxic or hazardous ma-
terials. 
(5) The term ‘‘claim holder’’ means a person 
holding a mining claim, millsite claim, or tunnel site 
claim located under the general mining laws and 
maintained in compliance with such laws and this 
Act. Such term may include an agent of a claim 
holder. 
(6) 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. 
(7) The term ‘‘exploration’’— 
(A) subject to subparagraphs (B) and (C), 
means creating surface disturbance other than 
casual use, to evaluate the type, extent, quan-
tity, or quality of minerals present; 
(B) includes mineral activities associated 
with sampling, drilling, and analyzing locatable 
mineral values; and 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(C) does not include extraction of mineral 
material for commercial use or sale. 
(8) The term ‘‘Federal land’’ means any land, 
and any interest in land, that is owned by the 
United States and open to location of mining claims 
under the general mining laws and title II of this 
Act. 
(9) The term ‘‘Indian lands’’ means lands held 
in trust for the benefit of an Indian tribe or indi-
vidual or held by an Indian tribe or individual sub-
ject to a restriction by the United States against 
alienation. 
(10) 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.), that is recognized as 
eligible for the special programs and services pro-
vided by the United States to Indians because of 
their status as Indians. 
(11) The term ‘‘locatable mineral’’— 
(A) subject to subparagraph (B), means 
any mineral, the legal and beneficial title to 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
which remains in the United States and that is 
not subject to disposition under any of— 
(i) the Mineral Leasing Act (30 
U.S.C. 181 et seq.); 
(ii) the Geothermal Steam Act of 
1970 (30 U.S.C. 1001 et seq.); 
(iii) the Act of July 31, 1947, com-
monly known as the Materials Act of 1947 
(30 U.S.C. 601 et seq.); or 
(iv) the Mineral Leasing for Acquired 
Lands Act (30 U.S.C. 351 et seq.); and 
(B) does not include any mineral that is 
subject to a restriction against alienation im-
posed by the United States and is— 
(i) held in trust by the United States 
for any Indian or Indian tribe, as defined 
in section 2 of the Indian Mineral Develop-
ment Act of 1982 (25 U.S.C. 2101); or 
(ii) owned by any Indian or Indian 
tribe, as defined in that section. 
(12) The term ‘‘mineral activities’’ means any 
activity on a mining claim, millsite claim, or tunnel 
site claim for, related to, or incidental to, mineral 
exploration, mining, beneficiation, processing, or rec-
lamation activities for any locatable mineral. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(13) The term ‘‘National Conservation System 
unit’’ means any unit of the National Park System, 
National Wildlife Refuge System, National Wild and 
Scenic Rivers System, or National Trails System, or 
a National Conservation Area, a National Recreation 
Area, a National Monument, or any unit of the Na-
tional Wilderness Preservation System. 
(14) The term ‘‘operator’’ means any person 
proposing or authorized by a permit issued under 
this Act to conduct mineral activities and any agent 
of such person. 
(15) 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. 
(16) 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. 
(17) The term ‘‘Secretary’’ means the Secretary 
of the Interior, unless otherwise specified. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(18) The term ‘‘temporary cessation’’ means a 
halt in mine-related production activities for a con-
tinuous period of no longer than 5 years. 
(19) The term ‘‘undue degradation’’ means ir-
reparable harm to significant scientific, cultural, or 
environmental resources on public lands that cannot 
be effectively mitigated. 
(b) VALID EXISTING RIGHTS.—As used in this Act, 
the term ‘‘valid existing rights’’ means a mining claim or 
millsite claim located on lands described in section 201(b), 
that— 
(1) was properly located and maintained under 
the general mining laws prior to the date of enact-
ment of this Act; 
(2) was supported by a discovery of a valuable 
mineral deposit within the meaning of the general 
mining laws on the date of enactment of this Act, 
or satisfied the limitations under existing law for 
millsite claims; and 
(3) continues to be valid under this Act. 
(c) REFERENCES TO OTHER LAWS.—(1) Any ref-
erence in this Act to the term general mining laws is a 
reference to those Acts that generally comprise chapters 
2, 12A, and 16, and sections 161 and 162, of title 30, 
United States Code. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(2) Any reference in this Act to the Act of July 23, 
1955, is a reference to the Act 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 et seq.). 
(d) REFERENCES TO THIS ACT.—Except as other-
wise expressly provided, any reference to ‘‘this Act’’ con-
tained in this section, section 3, or titles I through V shall 
be treated as referring only to the provisions of this sec-
tion, section 3, and titles I through V. 
SEC. 3. APPLICATION RULES. 
(a) IN GENERAL.—This Act applies to any mining 
claim, millsite claim, or tunnel site claim located under 
the general mining laws, before, on, or after the date of 
enactment of this Act, except as provided in subsection 
(b). 
(b) PREEXISTING CLAIMS.—(1) Any unpatented min-
ing claim or millsite claim located under the general min-
ing laws before the date of enactment of this Act for which 
a plan of operation has not been approved or a notice filed 
prior to the date of enactment shall, upon the effective 
date of this Act, be subject to the requirements of this 
Act, except as provided in paragraph (2). 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(2)(A) If a plan of operations is approved for mineral 
activities on any claim or site referred to in paragraph 
(1) prior to the date of enactment of this Act but such 
operations have not commenced prior to the date of enact-
ment of this Act— 
(i) during the 10-year period beginning on the 
date of enactment of this Act, mineral activities at 
such claim or site shall be subject to such plan of 
operations; 
(ii) during such 10-year period, modifications of 
any such plan may be made in accordance with the 
provisions of law applicable prior to the enactment 
of this Act if such modifications are deemed minor 
by the Secretary concerned; and 
(iii) the operator shall bring such mineral ac-
tivities into compliance with this Act by the end of 
such 10-year period. 
(B) Where an application for modification of a plan 
of operations referred to in subparagraph (A)(ii) has been 
timely submitted and an approved plan expires prior to 
Secretarial action on the application, mineral activities 
and reclamation may continue in accordance with the 
terms of the expired plan until the Secretary makes an 
administrative decision on the application. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(c) FEDERAL LANDS SUBJECT TO EXISTING PER-
MIT.—(1) Any Federal land shall be subject to the require-
ments of section 102(a)(2) if the land is— 
(A) subject to an operations permit; and 
(B) producing valuable locatable minerals in 
commercial quantities prior to the date of enactment 
of this Act. 
(2) Any Federal land added through a plan modifica-
tion to an operations permit on Federal land that is sub-
mitted after the date of enactment of this Act shall be 
subject to the terms of section 102(a)(3). 
(d) APPLICATION OF ACT TO BENEFICIATION AND 
PROCESSING OF NON-FEDERAL MINERALS ON FEDERAL 
LANDS.—The provisions of this Act (including the envi-
ronmental protection requirements of title III) shall apply 
in the same manner and to the same extent to mining 
claims, millsite claims, and tunnel site claims used for 
beneficiation or processing activities for any mineral with-
out regard to whether or not the legal and beneficial title 
to the mineral is held by the United States. This sub-
section applies only to minerals that are locatable minerals 
or minerals that would be locatable minerals if the legal 
and beneficial title to such minerals were held by the 
United States. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
TITLE 
I—MINERAL 
EXPLO-
RATION AND DEVELOPMENT 
SEC. 101. LIMITATION ON PATENTS. 
(a) MINING CLAIMS.— 
(1) DETERMINATIONS
REQUIRED.—After the 
date of enactment of this Act, no patent shall be 
issued by the United States for any mining claim lo-
cated under the general mining laws unless the Sec-
retary determines that, for the claim concerned— 
(A) a patent application was filed with the 
Secretary on or before September 30, 1994; 
and 
(B) all requirements established under sec-
tions 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 were fully complied with 
by that date. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations referred to in subparagraphs (A) 
and (B) of paragraph (1) for any mining claim, the 
holder of the claim shall be entitled to the issuance 
of a patent in the same manner and degree to which 
such claim holder would have been entitled to prior 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
to the enactment of this Act, unless and until such 
determinations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
(b) MILLSITE CLAIMS.— 
(1) DETERMINATIONS
REQUIRED.—After the 
date of enactment of this Act, no patent shall be 
issued by the United States for any millsite claim lo-
cated under the general mining laws unless the Sec-
retary determines that for the millsite concerned— 
(A) a patent application for such land was 
filed with the Secretary on or before September 
30, 1994; and 
(B) all requirements applicable to such 
patent application were fully complied with by 
that date. 
(2) RIGHT TO PATENT.—If the Secretary makes 
the determinations referred to in subparagraphs (A) 
and (B) of paragraph (1) for any millsite claim, the 
holder of the claim shall be entitled to the issuance 
of a patent in the same manner and degree to which 
such claim holder would have been entitled to prior 
to the enactment of this Act, unless and until such 
determinations are withdrawn or invalidated by the 
Secretary or by a court of the United States. 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
SEC. 102. ROYALTY. 
(a) RESERVATION OF ROYALTY.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) and subject to paragraph (3), production 
of all locatable minerals from any mining claim lo-
cated under the general mining laws and maintained 
in compliance with this Act, or mineral concentrates 
or products derived from locatable minerals from 
any such mining claim, as the case may be, shall be 
subject to a royalty of 8 percent of the gross income 
from mining. The claim holder or any operator to 
whom the claim holder has assigned the obligation 
to make royalty payments under the claim and any 
person who controls such claim holder or operator 
shall be liable for payment of such royalties. 
(2) ROYALTY FOR FEDERAL LANDS SUBJECT 
TO
EXISTING
PERMIT.—The royalty under para-
graph (1) shall be 4 percent in the case of any Fed-
eral land that— 
(A) is subject to an operations permit on 
the date of the enactment of this Act; and 
(B) produces valuable locatable minerals in 
commercial quantities on the date of enactment 
of this Act. 
(3) FEDERAL LAND ADDED TO EXISTING OPER-
ATIONS PERMIT.—Any Federal land added through 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
a plan modification to an operations permit that is 
submitted after the date of enactment of this Act 
shall be subject to the royalty that applies to Fed-
eral land under paragraph (1). 
(4) DEPOSIT.—Amounts received by the United 
States as royalties under this subsection shall be de-
posited into the account established under section 
401. 
(5) LIMITATION ON APPLICATION.— 
(A) IN GENERAL.—Any royalty under this 
subsection shall not apply for a person for any 
tax year for which the person certifies to the 
Secretary in writing that the person and all re-
lated parties with respect to such person, in the 
aggregate, had annual gross income from min-
eral production in an amount less than 
$100,000. 
(B) AGGREGATION OF INCOME.—The dol-
lar amount in subparagraph (A) shall be ap-
plied, for a person, to the aggregate of all an-
nual gross income from mineral production 
under all mining claims held by or assigned to 
such person or any related parties with respect 
to such person, including mining claims located 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
or for which a patent was issued before the date 
of the enactment of this Act. 
(C) RELATED PARTIES DEFINED.—For the 
purposes of this paragraph, the term ‘‘related 
parties’’ means, with respect to a person— 
(i) the spouse and all dependents (as 
defined in section 152 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 152)) of the 
person; or 
(ii) another person who is affiliated 
with the person, including— 
(I) another person controlled by, 
controlling, or under common control 
with the person; and 
(II) a subsidiary or parent com-
pany or corporation of the person. 
(b) DUTIES OF CLAIM HOLDERS, OPERATORS, AND 
TRANSPORTERS.—(1) A person— 
(A) who is required to make any royalty pay-
ment under this section shall make such payments 
to the United States at such times and in such man-
ner as the Secretary may by rule prescribe; and 
(B) shall notify the Secretary, in the time and 
manner as may be specified by the Secretary, of any 
assignment that such person may have made of the 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
obligation to make any royalty or other payment 
under a mining claim. 
(2) Any person paying royalties under this section 
shall file a written instrument, together with the first roy-
alty payment, affirming that such person is responsible for 
making proper payments for all amounts due for all time 
periods for which such person has a payment responsi-
bility. Such responsibility for the periods referred to in the 
preceding sentence shall include any and all additional 
amounts billed by the Secretary and determined to be due 
by final agency or judicial action. Any person liable for 
royalty payments under this section who assigns any pay-
ment obligation shall remain jointly and severally liable 
for all royalty payments due for the claim for the period. 
(3) A person conducting mineral activities shall— 
(A) develop and comply with the site security 
provisions in the operations permit designed to pro-
tect from theft the locatable minerals, concentrates 
or products derived therefrom which are produced or 
stored on a mining claim, and such provisions shall 
conform with such minimum standards as the Sec-
retary may prescribe by rule, taking into account the 
variety of circumstances on mining claims; and 
(B) not later than the 5th business day after 
production begins anywhere on a mining claim, or 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
production resumes after more than 90 days after 
production was suspended, notify the Secretary, in 
the manner prescribed by the Secretary, of the date 
on which such production has begun or resumed. 
(4) The Secretary may by rule require any person en-
gaged in transporting a locatable mineral, concentrate, or 
product derived therefrom to carry on his or her person, 
in his or her vehicle, or in his or her immediate control, 
documentation showing, at a minimum, the amount, ori-
gin, and intended destination of the locatable mineral, con-
centrate, or product derived therefrom in such cir-
cumstances as the Secretary determines is appropriate. 
(c) RECORDKEEPING
AND REPORTING REQUIRE-
MENTS.—(1) A claim holder, operator, or other person di-
rectly involved in developing, producing, processing, trans-
porting, purchasing, or selling locatable minerals, con-
centrates, or products derived therefrom, subject to this 
Act, through the point of royalty computation shall estab-
lish and maintain any records, make any reports, and pro-
vide any information that the Secretary may reasonably 
require for the purposes of implementing this section or 
determining compliance with rules or orders under this 
section. Such records shall include, but not be limited to, 
periodic reports, records, documents, and other data. Such 
reports may also include, but not be limited to, pertinent 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
technical and financial data relating to the quantity, qual-
ity, composition volume, weight, and assay of all minerals 
extracted from the mining claim. Upon the request of any 
officer or employee duly designated by the Secretary con-
ducting an audit or investigation pursuant to this section, 
the appropriate records, reports, or information that may 
be required by this section shall be made available for in-
spection and duplication by such officer or employee. Fail-
ure by a claim holder, operator, or other person referred 
to in the first sentence to cooperate with such an audit, 
provide data required by the Secretary, or grant access 
to information may, at the discretion of the Secretary, re-
sult in involuntary forfeiture of the claim. 
(2) Records required by the Secretary under this sec-
tion shall be maintained for 7 years after release of finan-
cial assurance under section 306 unless the Secretary noti-
fies the operator that the Secretary has initiated an audit 
or investigation involving such records and that such 
records must be maintained for a longer period. In any 
case when an audit or investigation is underway, records 
shall be maintained until the Secretary releases the oper-
ator of the obligation to maintain such records. 
(d) AUDITS.—The Secretary is authorized to conduct 
such audits of all claim holders, operators, transporters, 
purchasers, processors, or other persons directly or indi-
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
rectly involved in the production or sales of minerals cov-
ered by this Act, as the Secretary deems necessary for the 
purposes of ensuring compliance with the requirements of 
this section. For purposes of performing such audits, the 
Secretary shall, at reasonable times and upon request, 
have access to, and may copy, all books, papers and other 
documents that relate to compliance with any provision 
of this section by any person. 
(e) COOPERATIVE AGREEMENTS.—(1) The Secretary 
is authorized to enter into cooperative agreements with the 
Secretary of Agriculture to share information concerning 
the royalty management of locatable minerals, con-
centrates, or products derived therefrom, to carry out in-
spection, auditing, investigation, or enforcement (not in-
cluding the collection of royalties, civil or criminal pen-
alties, or other payments) activities under this section in 
cooperation with the Secretary, and to carry out any other 
activity described in this section. 
(2) Except as provided in paragraph (3)(A) of this 
subsection (relating to trade secrets), and pursuant to a 
cooperative agreement, the Secretary of Agriculture shall, 
upon request, have access to all royalty accounting infor-
mation in the possession of the Secretary respecting the 
production, removal, or sale of locatable minerals, con-
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
centrates, or products derived therefrom from claims on 
lands open to location under this Act. 
(3) Trade secrets, proprietary, and other confidential 
information protected from disclosure under section 552 
of title 5, United States Code, popularly known as the 
Freedom of Information Act, shall be made available by 
the Secretary to other Federal agencies as necessary to 
assure compliance with this Act and other Federal laws. 
The Secretary, the Secretary of Agriculture, the Adminis-
trator of the Environmental Protection Agency, and other 
Federal officials shall ensure that such information is pro-
vided protection in accordance with the requirements of 
that section. 
(f) INTEREST AND SUBSTANTIAL UNDERREPORTING 
ASSESSMENTS.—(1) In the case of mining claims where 
royalty payments are not received by the Secretary on the 
date that such payments are due, the Secretary shall 
charge interest on such underpayments at the same inter-
est rate as the rate applicable under section 6621(a)(2) 
of the Internal Revenue Code of 1986. In the case of an 
underpayment, interest shall be computed and charged 
only on the amount of the deficiency and not on the total 
amount. 
(2) If there is any underreporting of royalty owed on 
production from a claim for any production month by any 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
person liable for royalty payments under this section, the 
Secretary shall assess a penalty of not greater than 25 
percent of the amount of that underreporting. 
(3) For the purposes of this subsection, the term 
‘‘underreporting’’ means the difference between the roy-
alty on the value of the production that should have been 
reported and the royalty on the value of the production 
which was reported, if the value that should have been 
reported is greater than the value that was reported. 
(4) The Secretary may waive or reduce the assess-
ment provided in paragraph (2) of this subsection if the 
person liable for royalty payments under this section cor-
rects the underreporting before the date such person re-
ceives notice from the Secretary that an underreporting 
may have occurred, or before 90 days after the date of 
the enactment of this section, whichever is later. 
(5) The Secretary shall waive any portion of an as-
sessment under paragraph (2) of this subsection attrib-
utable to that portion of the underreporting for which the 
person responsible for paying the royalty demonstrates 
that— 
(A) such person had written authorization from 
the Secretary to report royalty on the value of the 
production on the basis on which it was reported; 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(B) such person had substantial authority for 
reporting royalty on the value of the production on 
the basis on which it was reported; 
(C) such person previously had notified the Sec-
retary, in such manner as the Secretary may by rule 
prescribe, of relevant reasons or facts affecting the 
royalty treatment of specific production which led to 
the underreporting; or 
(D) such person meets any other exception 
which the Secretary may, by rule, establish. 
(6) All penalties collected under this subsection shall 
be deposited in the Locatable Minerals Fund established 
under title IV. 
(g) DELEGATION.—For the purposes of this section, 
the term ‘‘Secretary’’ means the Secretary of the Interior 
acting through the Director of the Minerals Management 
Service. 
(h) EXPANDED ROYALTY OBLIGATIONS.—Each per-
son liable for royalty payments under this section shall 
be jointly and severally liable for royalty on all locatable 
minerals, concentrates, or products derived therefrom lost 
or wasted from a mining claim located under the general 
mining laws and maintained in compliance with this Act 
when such loss or waste is due to negligence on the part 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
of any person or due to the failure to comply with any 
rule, regulation, or order issued under this section. 
(i) GROSS INCOME FROM MINING DEFINED.—For 
the purposes of this section, for any locatable mineral, the 
term ‘‘gross income from mining’’ has the same meaning 
as the term ‘‘gross income’’ in section 613(c) of the Inter-
nal Revenue Code of 1986. 
(j) EFFECTIVE DATE.—The royalty under this sec-
tion shall take effect with respect to the production of 
locatable minerals after the enactment of this Act, but any 
royalty payments attributable to production during the 
first 12 calendar months after the enactment of this Act 
shall be payable at the expiration of such 12-month period. 
(k) FAILURE TO COMPLY WITH ROYALTY REQUIRE-
MENTS.—Any person who fails to comply with the require-
ments of this section or any regulation or order issued to 
implement this section shall be liable for a civil penalty 
under section 109 of the Federal Oil and Gas Royalty 
Management Act (30 U.S.C. 1719) to the same extent as 
if the claim located under the general mining laws and 
maintained in compliance with this Act were a lease under 
that Act. 
SEC. 103. HARDROCK MINING CLAIM MAINTENANCE FEE. 
(a) FEE.— 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
(1) Except as provided in section 2511(e)(2) of 
the Energy Policy Act of 1992 (relating to oil shale 
claims), for each unpatented mining claim, mill or 
tunnel site on federally owned lands, whether located 
before, on, or after enactment of this Act, each 
claimant shall pay to the Secretary, on or before Au-
gust 31 of each year, a claim maintenance fee of 
$200 per claim to hold such unpatented mining 
claim, mill or tunnel site for the assessment year be-
ginning at noon on the next day, September 1. Such 
claim maintenance fee shall be in lieu of the assess-
ment work requirement contained in the Mining Law 
of 1872 (30 U.S.C. 28 et seq.) and the related filing 
requirements contained in section 314 (a) and (c) of 
the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1744 (a) and (c)). 
(2)(A) The claim maintenance fee required 
under this subsection shall be waived for a claimant 
who certifies in writing to the Secretary that on the 
date the payment was due, the claimant and all re-
lated parties— 
(i) held not more than 10 mining claims, 
mill sites, or tunnel sites, or any combination 
thereof, on public lands; and 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS
surface coal mining operations have occurred or are 
occurring. 
(b) SUSPENSION.—The Secretary, or for National 
Forest System lands, the Secretary of Agriculture, shall 
suspend an operations permit, in whole or in part, if such 
Secretary determines that any of the entities described in 
subsection (a) were in violation of any requirement listed 
in subsection (a) at the time the permit was issued. 
(c) CORRECTION.—(1) The Secretary, or for National 
Forest System lands, the Secretary of Agriculture, may 
issue or reinstate a permit under this title if the applicant 
submits proof that the violation referred to in subsection 
(a) or (b) has been corrected or is in the process of being 
corrected to the satisfaction of such Secretary and the reg-
ulatory authority involved or if the applicant submits proof 
that the violator has filed and is presently pursuing, a di-
rect administrative or judicial appeal to contest the exist-
ence of the violation. For purposes of this section, an ap-
peal of any applicant’s relationship to an affiliate shall not 
constitute a direct administrative or judicial appeal to con-
test the existence of the violation. 
(2) Any permit which is issued or reinstated based 
upon proof submitted under this subsection shall be condi-
tionally approved or conditionally reinstated, as the case 
may be. If the violation is not successfully abated or the 
VerDate Mar 15 2010 
02:34 Jul 16, 2014
Jkt 039200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H5060.IH
H5060
jbell on DSK4SPTVN1PROD with BILLS