value that should have been reported is greater than 
the value that was reported. 
(4) The Secretary may waive or reduce the as-
sessment provided in paragraph (2) of this sub-
section if the person liable for royalty payments 
under this section corrects the underreporting before 
the date such person receives notice from the Sec-
retary 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 
assessment under paragraph (2) of this subsection 
attributable 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 basis on which it was 
reported; 
(B) such person had substantial authority 
for reporting royalty on the value of the produc-
tion on the basis on which it was reported; 
(C) such person previously had notified the 
Secretary, in such manner as the Secretary may 
by rule prescribe, of relevant reasons or facts 
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affecting the royalty treatment of specific pro-
duction which led to the underreporting; or 
(D) such person meets any other exception 
which the Secretary may, by rule, establish. 
(g) 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 title 
when such loss or waste is due to negligence on the part 
of any person or due to the failure to comply with any 
rule, regulation, or order issued under this section. 
(h) 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. 
(i) 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. 
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(j) 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 title were a lease under 
that Act. 
(k) USE OF AMOUNTS FOR DEFICIT REDUCTION.— 
Notwithstanding any other provision of law, any amounts 
received by the United States as royalties under this sec-
tion shall be deposited in the Treasury and used for Fed-
eral budget deficit reduction or, if there is no Federal 
budget deficit, for reducing the Federal debt in such man-
ner as the Secretary of the Treasury considers appro-
priate. 
SEC. 112. HARDROCK MINING CLAIM MAINTENANCE FEE. 
(a) FEE.— 
(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-
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