[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [S. 775 Introduced in Senate (IS)] 103d CONGRESS 1st Session S. 775 To modify the requirements applicable to locatable minerals on public lands, consistent with the principles of self-initiation of mining claims, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 5 (legislative day, March 3), 1993 Mr. Craig (for himself, Mr. Wallop, Mr. Murkowski, Mr. Bennett, Mr. Burns, Mr. Hatch, and Mr. Stevens) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources _______________________________________________________________________ A BILL To modify the requirements applicable to locatable minerals on public lands, consistent with the principles of self-initiation of mining claims, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLES. (a) In General.--This Act may be cited as the ``Hardrock Mining Reform Act of 1993''. (b) Surface Resources Act of 1955.--The Act of July 23, 1955 (69 Stat. 367, chapter 375; 30 U.S.C. 611 et seq.) is amended by adding at the end the following new section: ``SEC. 8. SHORT TITLE. ``This Act may be cited as the `Surface Resources Act of 1955'.''. (c) Materials Act of 1947.--The Act of July 31, 1947 (61 Stat. 681, chapter 406; 30 U.S.C. 601 et seq.) is amended by adding at the end the following new section: ``SEC. 5. SHORT TITLE. ``This Act may be cited as the `Materials Act of 1947'.''. SEC. 2. FINDINGS AND PURPOSE. (a) Findings.--Congress finds and declares that-- (1) a secure and reliable supply of nonfuel minerals is essential to the industrial base of the United States, national security, and balance of trade; (2) many of the deposits of nonfuel hard minerals that may be commercially developed are on Federal public lands, and are difficult and expensive to discover and process; (3) the national need for nonfuel hard minerals will continue to expand and the demand for the minerals will exceed domestic sources of supply without a strong mining industry; (4) mining of nonfuel hard minerals is an extremely high- risk, capital-intensive endeavor, which, to attract necessary investment, requires certainty and predictability in access to public lands, establishment of mining titles, and the rights of claimants to develop minerals; (5) it is in the national interest to foster and encourage private enterprise in the development of a domestic minerals industry to maintain and create high paying jobs in the United States; (6) mining activities on public lands should be consistent with applicable Federal land use plans and should be conducted in compliance with all applicable Federal and State environmental regulations and standards, including standards governing mined land reclamation; (7) the diversity in terrain, climate, biological, chemical, and other physical conditions, and variation among the minerals mined and the methods of mining and processing, require that reclamation standards should be tailored to local and regional conditions; and (8) changes in the general mining laws of the United States to provide more direct economic return to the United States and greater protection for public resources are desirable, so long as the changes do not adversely affect employment in the mining industry or in industries that provide goods and services required for mining activities, interfere with a secure and reliable supply of minerals, or adversely affect the balance of trade of the United States. (b) Purpose.--It is the purpose of this Act to-- (1) provide for increased Federal revenue from the location and production of ores and nonfuel hard minerals through increased fees and royalties; (2) provide for the payment of fair market value for the surface of any land patented under the general mining laws of the United States; (3) ensure that all public lands affected by nonfuel minerals mining activities under the general mining laws are reclaimed, in concert with State and local reclamation authorities; and (4) establish a program to help reclaim nonfuel, hardrock mineral abandoned mines. SEC. 3. DEFINITIONS. (1) Locatable Mineral.--The term ``locatable mineral'' means any mineral not subject to disposition under-- (A) the Mineral Leasing Act (30 U.S.C. 181 et seq.); (B) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.); (C) the Materials Act of 1947 (30 U.S.C. 601 et seq.); or (D) the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.). (2) Mouth of the Mine.--The term ``mouth of the mine'' means the portal of an underground mine, the point of exit of ore from an open pit mine, or the wellhead of a solution mine. (3) Value.-- (A) In general.--The term ``value'' means the fair market value of the ore or solutions as they emerge from the mine or well, less the direct and indirect costs of mining, including related mine exploration and development expenses, determined in accordance with generally accepted accounting principles. (B) No market at mouth of mine.-- (i) If there is no market for ore in its raw or crude state, the term ``value'' means the gross income (computed in accordance with subparagraph (C)) from the mining of the ore or the production of the solutions, less the direct and indirect costs associated with the mining or production, determined in accordance with generally accepted accounting principles. (C) Gross income from the mining of the ore or the production of the solutions.--Gross income from the mining of the ore or the production of the solutions shall be computed by multiplying-- (i) gross sales (actual or, where there are no sales, constructive) of the minerals or metals contained in the ore or solutions by a fraction whose numerator is the sum of all direct and indirect mining costs incurred to bring the ore or solutions to the mouth of the mine (excluding in-pit crushing), and whose denominator is the total of all mining and nonmining costs incurred to produce, sell, and transport the product. (4) Secretary.--Unless the context otherwise requires, the term ``Secretary'' means the Secretary of the Interior. SEC. 4. LOCATION AND MAINTENANCE REQUIREMENTS. (a) Location Fee.--For each claim located after date of enactment of this Act, a claimant shall pay the Secretary a location fee of $25.00 not later than 90 days after the date of location. (b) Annual Maintenance Fee.--Commencing the first calendar year after the date of enactment of this Act, a claimant shall pay the Secretary on or before December 31 of each year, a maintenance fee of $100 per claim to maintain the claim for the following calendar year. (c) Indexing.-- (1) In general.--The Secretary shall adjust the fees required by this section to reflect changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor every 5 years after the date of enactment of this Act, or more frequently if the Secretary determines an adjustment to be reasonable. (2) Notice.--The Secretary shall provide claimants notice of any adjustment made under this subsection not later than July 1 of any year in which the adjustment is made. (3) Effective date of adjustment.--A fee adjustment under this subsection shall begin to apply the calendar year following the calendar year in which it is made. (d) Failure To Pay Fee.--Failure to timely pay the location fee or maintenance fee required by this section for a claim shall be deemed an abandonment of the claim. The claim shall be deemed null and void by operation of law effective at noon on the date that is 30 days after the date upon which the payment was due. (e) Exception for Holders of Fewer Than 50 Claims.-- (1) Eligibility.--The claim maintenance fees required under this section shall be waived or reduced in accordance with paragraph (3) for a claimant who certifies in writing to the Secretary that on the date the payment was due the claimant-- (A) was the holder (as defined in paragraph (2)) of not more than 50 mining claims on public lands; and (B) has performed assessment work sufficient to maintain the mining claims held by the claimant for the assessment year ending on noon of September 1 of the calendar year in which the maintenance fee payment was due. (2) Holder.--As used in paragraph (1), the term ``holder'' includes-- (A) the claimant; (B) the spouse and dependent children (as defined in section 152 of the Internal Revenue Code of 1986), of the claimant; and (C) a person affiliated with the claimant, including-- (i) a person controlled by, controlling, or under common control with the claimant; and (ii) a subsidiary or parent company or corporation of the claimant. (3) Waived or reduced maintenance fees.-- (A) 10 or fewer claims.--The maintenance fee shall be waived in its entirety for 10 or fewer claims held by a claimant eligible under paragraph (1). (B) 11 or more claims.-- (i) In general.--Subject to clause (ii), the maintenance fee shall be reduced to $25 per claim for each claim in excess of 10. (ii) Limitation.--The reduction in this subparagraph shall be available for no more than 50 claims held by a claimant who is eligible under paragraph (1). (g) Existing Requirements.-- (1) Payment in lieu of annual labor requirements.--The third sentence of 2324 of the Revised Statutes (30 U.S.C. 28) is amended by inserting after ``On each claim located after the 10th day of May, 1872,'' the following: ``that is eligible for a waiver or reduced fee under section 4(e) of the Hardrock Mining Reform Act of 1993,''. (2) Federal filing requirements.--Section 314 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744) is amended-- (A) by striking subsection (a); (B) by redesignating subsections (b), (c), and (d) as subsections (a), (b), and (c), respectively; and (C) in subsection (b) (as so redesignated) by striking ``subsections (a) and (b)'' and inserting ``subsection (a)''. (3) Conforming amendment.--Section 2511(e) of the Energy Policy Act of 1992 (30 U.S.C. 242(e)) is amended by striking the second sentence. SEC. 5. ROYALTY. (a) In General.--The production and sale of locatable minerals (including associated minerals) from any mining claim located after the date of enactment of this Act shall be subject to a royalty of 2 percent of the value of the minerals measured at the mouth of the mine. (b) Payment of Royalty.--Royalty payments shall be made not later than 45 days after the end of each calendar quarter during which the minerals are sold. The payments shall be subject to adjustment, if required, at the end of each calendar year. (c) Audit.--The Secretary may audit the payments under this section at any time upon notice to the claimant. (d) Royalty Deduction.--The Secretary may reduce the royalties under this section whenever the Secretary determines it is necessary to promote development or whenever the claims cannot be successfully operated under the terms of this section. (e) Hardrock Mining Royalty Review Commission.-- (1) Establishment.--There is established the Hardrock Mining Royalty Review Commission (referred to in this section as the ``Commission''). (2) Membership.--The Commission shall be comprised of 9 members appointed by the Secretary who have experience in the economics of the hardrock mining industry. (3) Chairperson.--The Secretary shall designate 1 member to serve as a Chairperson of the Commission. (4) Compensation.--Members of the Commission shall serve without compensation but shall be reimbursed for travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission. (5) Duties of commission.--Not later than 18 months after the date of enactment of this section, the Commission shall review the effect of the royalty provisions under this section on the domestic hardrock mining industry and present its findings and recommendations to the Secretary and to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives. In conducting its review, the Commission shall-- (A) consider the economic effect of different royalty rates on the domestic hardrock mining industry, employment, local and regional economics, the balance of trade, national security, and strategic supplies; (B) determine whether there are sufficient differences between various minerals or means of production to support different royalty rates for specific minerals or means of production; (C) estimate the long-term effect of different royalty rates on competition within the industry and between domestic and foreign production; and (D) consider the multiplier effect of different royalty rates. (6) Powers of the commission.--The Commission may-- (A) hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission considers advisable; (B) use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government; (C) enter into contracts or agreements for studies and surveys with public and private organizations and transfer funds to Federal agencies to carry out such functions of the Commission as the Commission determines to be necessary; and (D) incur such necessary expenses and exercise such other powers as are consistent with, and reasonably required to perform, the functions of the Commission under this section. (7) Support.--The Secretary shall provide such office space, furnishings, and equipment as may be required to enable the Commission to carry out this section. The Secretary shall also furnish the Commission with such staff, including clerical support, as the Commission may require. (8) Other federal agencies.-- (A) In general.--Upon request of the Commission, the Secretary may request the head of any Federal department or agency-- (i) to assist the Commission in carrying out this section; and (ii) to provide such information as the Commission requires. (B) Detail of government employees.--Any Federal Government employee may be detailed to the Commission. The detail shall be without interruption or loss of privilege, seniority, pay, or other employee status. The Commission shall reimburse the cooperating Federal agency for the detail of an employee. (9) Financial and administrative services.--The Secretary of the Interior shall provide financial and administrative services (including those related to budgeting, accounting, financial reporting, personnel, and procurement) to the Commission. (10) Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section. SEC. 6. LIMITATIONS ON PATENTS. (a) In General.--After the date of enactment of this Act, a patent issued by the United States for any claim shall be subject to the requirements of subsection (b) unless the Secretary determines that-- (1) a mineral survey application has been filed with the Secretary or patent application was filed with the Secretary within six months of date of enactment of this Act; and (2) the claimant has made a discovery of valuable minerals and has met or can meet all requirements applicable to vein, lode, or placer claims and all requirements applicable to mill site claims, as appropriate. (b) Limitations on Patented Estate.--A patent issued by the United States after the date of enactment of this Act shall be issued only-- (1) upon payment by the claimant of the fair market value for the interest in the land owned by the United States exclusive of and without regard to the mineral deposits in the land; and (2) upon reservation by the United States of a royalty as provided in section 5. SEC. 7. PLANS OF OPERATION AND RECLAMATION REQUIREMENTS. (a) In General.--Except as otherwise provided in this subsection, no person may engage in mineral activities on Federal land that cause more than a minimal disturbance of surface resources (as defined in subsection (b)) unless the person has filed a plan of operations with, and received approval of the plan from, the Secretary. (b) Minimal Disturbance of Surface Resources.--As used in this section, ``minimal disturbance of surface resources'' means minor, short-term alteration of surface resources. The Secretary may establish categories of activities that do not constitute minimal disturbance of surface resources. (c) Environmental, Land Use, and Reclamation Requirements.--All operations conducted under a plan of operations referred to in subsection (a) shall be conducted in accordance with all applicable Federal and State environmental laws, including-- (1) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.); (2) the Clean Air Act (42 U.S.C. 7401 et seq.); (3) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.); (4) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); (5) the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.); (6) the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 801 et seq.); (7) the Federal Water Pollution Control Act (commonly referred to as the ``Clean Water Act'') (33 U.S.C. 1251 et seq.); (8) the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.); (9) the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.); (10) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); (11) the National Historic Preservation Act (16 U.S.C. 470 et seq.); (12) title XIV of the Public Health Service Act (commonly referred to as the ``Safe Drinking Water Act'') (42 U.S.C. 300f et seq.); (13) the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.); (14) the Toxic Substances Control Act (15 U.S.C. 2601 et seq.); and (15) the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7901 et seq.). (c) Inspection and Enforcement.-- (1) Inspections.--The Secretary shall inspect an operation conducted under a plan of operations once each calendar quarter to ensure compliance with the terms of an approved plan of operations. The Secretary may, at the discretion of the Secretary, conduct inspections more frequently than once each calendar quarter. (2) Enforcement.-- (A) In general.--Subject to subparagraphs (B) and (C), a claimant who fails to obtain a plan of operations required by this section, engages in unauthorized occupancy under section 9, or who fails to comply with the terms of an approved plan of operations, shall be subject to a fine of not more than $2,000 per day per violation. (B) Corrective action.--A claimant shall not be assessed a fine under subparagraph (A) if the violation is corrected, or a means to correct the violation is in place, within 30 days after the date on which the claimant is notified in writing of a violation. (C) Hearing.--No fine shall be assessed under this paragraph unless the claimant has been given an opportunity for a hearing on the record before the Secretary. (d) Reclamation of Land Patented After Enactment.-- (1) Applicable law.--Land patented after the date of enactment of this Act shall be subject to the mining reclamation laws of the State in which the land is located. (2) Absence of applicable state law.--In the absence of applicable State mining reclamation laws, land patented after the date of enactment of this Act shall be subject to the Federal mining reclamation laws that would have applied had the land remained in Federal ownership. (3) Recitation.--Each patent issued after the date of enactment of this Act shall recite that as a condition of the patent, the land patented shall be subject to the requirements of this subsection. (4) Reclamation.--Public lands disturbed by operations approved by the Secretary shall be reclaimed as required by applicable Federal and State laws concerning mined land reclamation. SEC. 8. FINANCIAL ASSURANCES. (a) Financial Assurances Required.--Prior to the commencement of any operations on a claim that requires a plan of operation, a claimant shall-- (1) furnish evidence of a bond, surety, or other financial guarantee in an amount determined by the Secretary that is not less than the estimated cost to complete reclamation of the land disturbed by operations as required by this Act and other applicable mining laws; or (2) provide evidence satisfactory to the Secretary that the area to be affected is covered by a bonding pool that will provide for reclamation of the land disturbed by operations as required by this Act and other applicable mining laws. (b) Review.--Not later than 5 years after an assurance is provided under subsection (a), and at least each 5 years thereafter, the Secretary shall, after consultation with representatives of the affected States, review the financial assurances. (c) Phased Guarantees.--The Secretary may adjust the amount of the financial guarantee provided under subsection (a) upon a determination by the Secretary that a portion of reclamation is completed as required by this Act and other applicable mining laws. (d) Release.--Prior to any reduction in, or final release of, a bond or other financial guarantee, the Secretary shall provide for public notice and comment. SEC. 9. OCCUPANCY AND RESIDENCY OF CLAIMS. (a) Prohibition.--Subject to the other provisions of this section and valid existing rights, full- or part-time residential occupancy of a mining claim, including the construction, presence, or maintenance of a temporary or permanent structure that may be used for residential occupancy purposes, shall be prohibited. (b) Transitory Occupancy.--Residential occupancy of a claim for purposes reasonably incident to prospecting, mining, or processing that does not involve surface disturbance extending beyond the period of occupancy shall be permitted for a duration of no more than 14 days upon notice to the Secretary. (c) Temporary occupancy.--The Secretary may approve residential occupancy of a claim for a period in excess of 14 days as part of a plan of operations required under applicable law, if the Secretary determines that the occupancy is reasonably required to accomplish such plan. Occupancy under this subsection shall of no greater duration or extent than is necessary to accomplish the prospecting, mining, or processing incident to the plan. SEC. 10. MINERAL MATERIALS. (a) Determinations.--Section 3 of the Surface Resources Act of 1955 (30 U.S.C. 611) is amended-- (1) by striking ``Sec. 3. No deposit'' and inserting the following: ``SEC. 3 MINERAL MATERIALS. ``(a) Varieties of Minerals Not Deemed Valuable Mineral Deposits.-- No deposit''; (2) in the first sentence, by striking ``or cinders'' and inserting ``cinders, or clay''; and (3) by adding at the end the following new subsection: ``(b) Disposal.-- ``(1) In general.--Subject to valid existing rights (as defined in paragraph (2)), after the date of enactment of this section, deposits of minerals referred to in subsection (a) (except deposits of bentonite and gypsum) shall be subject to disposal under the terms and conditions of the Materials Act of 1947 (30 U.S.C. 601 et seq.). ``(2) Valid existing rights defined.--As used in paragraph (1), the term `valid existing rights' means a mining claim located for a mineral material that-- ``(A) has some property that gives the claim distinct and special value as described in subsection (a), including so-called `block pumice' as described in subsection (a); ``(B) was properly located and maintained under the general mining laws on the date of enactment of this subsection; ``(C) was supported by a discovery of a valuable mineral deposit within the meaning of the general mining law on the date of enactment of this subsection; and ``(D) continues to be valid.''. (b) Mineral Materials Subject to Right of the United States for Disposal and Severance.--Subsections (b) and (c) of section 4 of the Surface Resources Act of 1955 (30 U.S.C. 612) is amended by inserting ``and mineral material'' after ``vegetative'' both places it appears . (c) Conforming Amendment.--The first sentence of section 1 of the Materials Act of 1947 (30 U.S.C. 601) is amended by striking ``common varieties of''. SEC. 11. RECEIPTS. Two-thirds of the receipts from location and maintenance fees required by section 4, royalties required by section 5, and payments required by section 6 shall be paid into the Treasury of the United States and deposited as miscellaneous receipts. One-third of the receipts from any claim, patent, or millsite shall be paid by the Secretary of the Treasury to the treasury of the State in which such claim, patent, or millsite is located. SEC. 12. ABANDONED HARDROCK MINE RECLAMATION PROGRAM. (a) Establishment.--There is established a program to be known as the Abandoned Hardrock Mine Reclamation Program (referred to in this section as the ``Program''). The Program shall be administered by the Secretary of the Interior acting through the Director of the Bureau of Land Management. (b) Description of Program.-- (1) In general.--The Secretary is authorized to make grants to eligible States (as defined in subsection (e)) for the reclamation and restoration of land and water resources adversely affected by past hardrock mining (other than coal and fluid known minerals). The grants may be used for-- (A) the reclamation and restoration of abandoned surface mined areas; (B) the reclamation and restoration of abandoned milling and processing areas; (C) the sealing, filling, and grading of abandoned deep mine entries; (D) the planting of land adversely affected by past mining to prevent erosion and sedimentation; (E) the prevention, abatement, treatment, and control of water pollution created by abandoned mine drainage; (F) the control of surface subsidence due to abandoned deep mines; and (G) such other projects as may be necessary to accomplish this Act. (2) Priorities.--Expenditure of grant funds by the Secretary shall reflect the following priorities in the order stated: (A) The protection of public health, safety, and general welfare from the adverse effects of past hardrock mining practices. (B) The restoration of land and water resources previously degraded by the adverse effects of past minerals and mineral materials mining practices. (c) Eligible Areas.-- (1) Eligibility in general.--Subject to paragraph (2), land and water eligible for reclamation expenditures under this section shall be those-- (A) that were mined or processed for minerals and mineral materials or abandoned or left in an inadequate reclamation status prior to the date of enactment of this section; (B) for which the Secretary (or State) makes a determination that there is no continuing reclamation responsibility under Federal or State laws; and (C) for which it can be established that the land does not contain minerals that could economically be extracted through the reprocessing or remining, unless the consideration is in conflict with the priorities set forth under subparagraphs (A) and (B) of subsection (b)(2). (2) Specific sites and areas not eligible.--Areas designated for remedial action pursuant to the Uranium Mill Tailing Radiation Control Act of 1978 (42 U.S.C. 7901 et seq.) or that have been listed for remedial action pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) shall not be eligible for expenditure under this section. (d) Allocation and Expenditures.-- (1) Allocations.-- (A) In general.--Funds available for expenditure by the Secretary shall be allocated on an annual basis in the form of grants to eligible States, or in the form of expenditures under subsection (d)(2), to carry out this Act. (B) Distribution.--The Secretary shall distribute the funds equitably to eligible States, giving due consideration to the priorities stated in subsection (b)(2). (2) Direct federal expenditures.--The Secretary makes grants to States not eligible under subsection (e) based on the greatest need for the funds pursuant to the priorities stated in subsection (b)(2). (e) State Reclamation Programs.-- (1) Eligible states.--For the purpose of subsection (d), the term ``eligible States'' are States that the Secretary determines meets each of the following requirements: (A) Within the State there are mined lands, waters, and facilities eligible for reclamation under subsection (c). (B) The State has developed an inventory of affected areas following the priorities established under subsection (b)(2). (C) The State has established, and the Secretary has approved, a State abandoned minerals and mineral materials mine reclamation program for the purpose of receiving and administering grants under this section. (2) Monitoring.--The Secretary shall monitor the expenditure of State grants to ensure that the grants are being utilized to carry out this Act. (3) State programs.--The Secretary shall approve any State abandoned minerals mine reclamation program submitted to the Secretary by a State under this section if the Secretary finds that the State has the means and necessary State legislation to implement the program and that the program complies with this section. (f) Authorization of Appropriations.-- (1) In general.--Subject to paragraph (2), there are authorized to be appropriated such sums as are necessary to carry out this section. (2) Limitation.--The amount annually authorized to be appropriated under this subsection shall not exceed the sums paid into the Treasury of the United States, and deposited as miscellaneous receipts, pursuant to section 11 for the fiscal year preceding the authorization. <all> S 775 IS----2 S 775 IS----3