for temporary cessation of operations for which a 
delay in meeting such standards is necessary to facili-
tate the resumption of operations. 
(C) A determination that the amount of finan-
cial assurance filed with the permit application is 
sufficient to assure completion of the reclamation ac-
tivities identified in the approved reclamation plan 
in the event of forfeiture. 
(D) A determination that any outstanding no-
tices of violation and cessation orders incurred in 
connection with the plan for which temporary ces-
sation is being requested are either stayed pursuant 
to an administrative or judicial appeal proceeding or 
are in the process of being abated to the satisfaction 
of the Secretary concerned. 
(g) PERMIT REVIEWS.—The Secretary, or for National 
Forest System lands the Secretary of Agriculture, shall re-
view each permit issued under this section every 10 years 
during the term of such permit, shall provide public notice 
of the permit review, and, based upon a written finding, 
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) No transfer, assignment, or sale of rights granted by 
a permit under this section shall be made without the prior 
written approval of the Secretary, or for National Forest 
System lands the Secretary of Agriculture. 
(2) The Secretary, or for National Forest System 
lands, the Secretary of Agriculture, may allow a person 
holding a permit to transfer, assign, or sell rights under 
the permit to a successor, if such Secretary finds, in writ-
ing, that the successor— 
(A) has submitted information required and is 
eligible to receive a permit in accordance with section 
305; 
(B) has submitted evidence of financial assur-
ance satisfactory under section 306; and 
(C) meets any other requirements specified by 
such Secretary. 
(3) The successor in interest shall assume the liability 
and reclamation responsibilities established by the existing 
permit and shall conduct the mineral activities in full com-
pliance with this Act, and the terms and conditions of the 
permit as in effect at the time of transfer, assignment, or 
sale. 
(4) Each application for approval of a permit transfer, 
assignment, or sale pursuant to this subsection shall be ac-
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companied by a fee payable to the Secretary of the Interior, 
or for National Forest System lands, the Secretary of Agri-
culture, in such amount as may be established by such Sec-
retary, or for National Forest System lands, by the Sec-
retary of Agriculture. Such amount shall be equal to the 
actual or anticipated cost to the Secretary or, for National 
Forest System lands, to the Secretary of Agriculture, of re-
viewing and approving or disapproving such transfer, as-
signment, or sale, as determined by such Secretary. All 
moneys received under this subsection shall be deposited in 
the Locatable Minerals Fund established under title IV. 
(i) PUBLIC PARTICIPATION.—The Secretary of the In-
terior and the Secretary of Agriculture shall jointly promul-
gate regulations to ensure transparency and public partici-
pation in permit decisions required under this Act, con-
sistent with any requirements that apply to such decisions 
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 permit 
under this title shall be issued or transferred to an appli-
cant if the applicant or any agent of the applicant, the op-
erator (if different than the applicant) of the claim con-
cerned, any claim holder (if different than the applicant) 
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of the claim concerned, or any affiliate or officer or director 
of the applicant is currently in violation of any of the fol-
lowing: 
(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 and following) or 
any regulation implementing that Act at any site 
where surface coal mining operations have occurred 
or are occurring. 
(b) SUSPENSION.—The Secretary, or for National For-
est 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 sub-
mits proof that the violation referred to in subsection (a) 
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or (b) has been corrected or is in the process of being cor-
rected to the satisfaction of such Secretary and the regu-
latory 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 appeal 
of any applicant’s relationship to an affiliate shall not con-
stitute a direct administrative or judicial appeal to contest 
the existence of the violation. 
(2) Any permit which is issued or reinstated based 
upon proof submitted under this subsection shall be condi-
tionally approved or conditionally reinstated, as the case 
may be. If the violation is not successfully abated or the 
violation is upheld on appeal, the permit shall be suspended 
or revoked. 
(d) PATTERN OF WILLFUL VIOLATIONS.—No permit 
under this Act may be issued to any applicant if there is 
a demonstrated pattern of willful violations of the environ-
mental protection requirements of this Act by the applicant, 
any affiliate of the applicant, or the operator or claim hold-
er if different than the applicant. 
SEC. 306. FINANCIAL ASSURANCE. 
(a) FINANCIAL ASSURANCE REQUIRED.—(1) After a 
permit is issued under this title and before any exploration 
or operations begin under the permit, the operator shall file 
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with the Secretary, or for National Forest System lands the 
Secretary of Agriculture, evidence of financial assurance 
payable to the United States. The financial assurance shall 
be provided in the form of a surety bond, a trust fund, let-
ters of credits, government securities, certificates of deposit, 
cash, or an equivalent form approved by such Secretary. 
(2) The financial assurance shall cover all lands with-
in the initial permit area and all affected waters that may 
require restoration, treatment, or other management as a 
result of mineral activities, and shall be extended to cover 
all lands and waters added pursuant to any permit modi-
fication made under section 303(f) (relating to exploration 
permits) or section 304(e) (relating to operations permits), 
or affected by mineral activities. 
(b) AMOUNT.—The amount of the financial assurance 
required under this section shall be sufficient to assure the 
completion of reclamation and restoration satisfying the re-
quirements of this Act if the work were to be performed by 
the Secretary concerned in the event of forfeiture, including 
the construction and maintenance costs for any treatment 
facilities necessary to meet Federal and State environ-
mental requirements. The calculation of such amount shall 
take into account the maximum level of financial exposure 
which shall arise during the mineral activity and adminis-
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trative costs associated with a government agency reclaim-
ing the site. 
(c) DURATION.—The financial assurance required 
under this section shall be held for the duration of the min-
eral activities and for an additional period to cover the op-
erator’s responsibility for reclamation, restoration, and 
long-term maintenance, and effluent treatment as specified 
in subsection (g). 
(d) ADJUSTMENTS.—The amount of the financial as-
surance and the terms of the acceptance of the assurance 
may be adjusted by the Secretary concerned from time to 
time as the area requiring coverage is increased or de-
creased, or where the costs of reclamation or treatment 
change, or pursuant to section 304(f) (relating to temporary 
cessation of operations), but the financial assurance shall 
otherwise be in compliance with this section. The Secretary 
concerned shall review the financial guarantee every 3 years 
and as part of the permit application review under section 
304(c). 
(e) RELEASE.—Upon request, and after notice and op-
portunity for public comment, and after inspection by the 
Secretary, or for National Forest System lands, the Sec-
retary of Agriculture, such Secretary may, after consulta-
tion with the Administrator of the Environmental Protec-
tion Agency, release in whole or in part the financial assur-
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ance required under this section if the Secretary makes both 
of the following determinations: 
(1) A determination that reclamation or restora-
tion covered by the financial assurance has been ac-
complished 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 revegeta-
tion on the regraded areas subject to mineral activi-
ties in accordance with the approved plan, that por-
tion of the total financial assurance secured for the 
area subject to mineral activities attributable to the 
completed activities may be released except that suffi-
cient assurance must be retained to address other re-
quired reclamation and restoration needs and to as-
sure the long-term success of the revegetation. 
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(2) After the operator has completed successfully 
all remaining mineral activities and reclamation ac-
tivities and all requirements of the operations plan 
and the reclamation plan, and all other requirements 
of this Act have been fully met, the remaining portion 
of the financial assurance may be released. 
During the period following release of the financial assur-
ance as specified in paragraph (1), until the remaining 
portion of the financial assurance is released as provided 
in paragraph (2), the operator shall be required to comply 
with the permit issued under this title. 
(g) EFFLUENT.—Notwithstanding section 307(b)(4), 
where any discharge or other water-related condition result-
ing from the mineral activities requires treatment in order 
to meet the applicable effluent limitations and water qual-
ity standards, the financial assurance shall include the esti-
mated cost of maintaining such treatment for the projected 
period that will be needed after the cessation of mineral ac-
tivities. The portion of the financial assurance attributable 
to such estimated cost of treatment shall not be released 
until the discharge has ceased for a period of 5 years, as 
determined by ongoing monitoring and testing, or, if the 
discharge continues, until the operator has met all applica-
ble effluent limitations and water quality standards for 5 
full years without treatment. 
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(h) ENVIRONMENTAL HAZARDS.—If the Secretary, or 
for National Forest System lands, the Secretary of Agri-
culture, determines, after final release of financial assur-
ance, that an environmental hazard resulting from the min-
eral activities exists, or the terms and conditions of the ex-
plorations or operations permit of this Act were not fulfilled 
in fact at the time of release, such Secretary shall issue an 
order under section 506 requiring the claim holder or oper-
ator (or any person who controls the claim holder or oper-
ator) to correct the condition such that applicable laws and 
regulations and any conditions from the plan of operations 
are met. 
SEC. 307. OPERATION AND RECLAMATION. 
(a) GENERAL RULE.—(1) The operator shall restore 
lands subject to mineral activities carried out under a per-
mit issued under this title to a condition capable of sup-
porting— 
(A) the uses which such lands were capable of 
supporting prior to surface disturbance by the oper-
ator, or 
(B) other beneficial uses which conform to appli-
cable land use plans as determined by the Secretary, 
or for National Forest System lands, the Secretary of 
Agriculture. 
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(2) Reclamation shall proceed as contemporaneously 
as practicable with the conduct of mineral activities. In the 
case of a cessation of mineral activities beyond that pro-
vided for as a temporary cessation under this Act, reclama-
tion activities shall begin immediately. 
(b) OPERATION AND RECLAMATION STANDARDS.—The 
Secretary of the Interior and the Secretary of Agriculture 
shall jointly promulgate regulations that establish operation 
and reclamation standards for mineral activities permitted 
under this Act. The Secretaries may determine whether out-
come-based performance standards or technology-based de-
sign standards are most appropriate. The regulations shall 
address the following: 
(1) Segregation, protection, and replacement of 
topsoil or other suitable growth medium, and the pre-
vention, where possible, of soil contamination. 
(2) Maintenance of the stability of all surface 
areas. 
(3) Control of sediments to prevent erosion and 
manage drainage. 
(4) Minimization of the formation and migra-
tion of acidic, alkaline, metal-bearing, or other delete-
rious leachate. 
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