[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3157 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 3157
To provide for the exchange and conveyance of certain National Forest
System land and other land in southeast Arizona, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 18, 2008
Mr. Kyl introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To provide for the exchange and conveyance of certain National Forest
System land and other land in southeast Arizona, 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 TITLE.
This Act may be cited as the ``Southeast Arizona Land Exchange and
Conservation Act of 2008''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to advance the public interest by authorizing,
directing, facilitating, and expediting the conveyance and
exchange of land between the United States and Resolution
Copper Mining, LLC; and
(2) to provide for the permanent protection of cultural and
other resources and uses of the Apache Leap escarpment located
in close proximity to the town of Superior, Arizona.
SEC. 3. DEFINITIONS.
In this Act:
(1) Apache leap.--The term ``Apache Leap'' means the
approximately 695 acres of land referred to as the ``Apache
Leap Conservation Easement Area'' on the map entitled ``Apache
Leap Conservation Easement Area'', dated November 2006.
(2) Federal land.--The term ``Federal land'' means the
approximately 3,025 acres of land located in Pinal County,
Arizona, depicted on the map entitled ``Southeast Arizona Land
Exchange and Conservation Act of 2005--Federal Parcel--Oak
Flat'', dated January 2005.
(3) Grantee.--The term ``grantee'' means the 1 or more
entities that are granted the permanent conservation easement
under section 6(a).
(4) Non-federal land.--The term ``non-Federal land'' means
the land described in section 4(b)(1).
(5) Oak flat campground.--The term ``Oak Flat Campground''
means the campground that is--
(A) comprised of approximately 16 developed
campsites (including the approximately 75 acres
adjacent to the campsites); and
(B) generally depicted on the map entitled ``Oak
Flat Campground'', dated May 2008.
(6) Resolution copper.--The term ``Resolution Copper''
means--
(A) Resolution Copper Mining, LLC, a Delaware
limited liability company; and
(B) any successor, assign, affiliate, member, or
joint venturer of Resolution Copper Mining, LLC.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(8) Town.--The term ``Town'' means the Town of Superior,
Arizona, which is an incorporated municipality.
SEC. 4. LAND CONVEYANCES AND EXCHANGES..
(a) In General.--On receipt from Resolution Copper of a written
offer to convey to the United States all right, title, and interest of
Resolution Copper in and to the non-Federal land that is acceptable to
the Secretary or the Secretary of the Interior, as appropriate, and
that conforms to the title approval standards of the Attorney General
applicable to Federal land acquisitions, the Secretary shall--
(1) accept the offer; and
(2) convey to Resolution Copper all right, title, and
interest of the United States in and to the Federal land,
subject to any valid existing right or title reservation,
easement, or other exception required by law or agreed to by
the Secretary and Resolution Copper.
(b) Conveyance of Land.--On receipt of title to the Federal land
under subsection (a), Resolution Copper shall simultaneously convey--
(1) to the Secretary, all right, title, and interest that
the Secretary determines to be acceptable in and to--
(A) the approximately 147 acres of land located in
Gila County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Non-Federal Parcel--Turkey Creek'', dated
January 2005;
(B) the approximately 148 acres of land located in
Yavapai County Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Non-Federal Parcel--Tangle Creek'', dated
January 2005;
(C) the approximately 149 acres of land located in
Maricopa County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Non-Federal Parcel--Cave Creek'', dated
January 2005;
(D) the approximately 266 acres of land located in
Pinal County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Non-Federal Parcel--JI Ranch'', dated January
2005;
(E) the approximately 640 acres of land located in
Coconino County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Non-Federal Parcel--East Clear Creek'', dated
August 2005; and
(F) the approximately 95 acres of land located in
Pinal County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2008--Non-Federal Parcel--The Pond'', dated May
2008; and
(2) to the Secretary of the Interior, all right, title, and
interest that the Secretary of the Interior determines to be
acceptable in and to--
(A) the approximately 3,073 acres of land located
in Pinal County, Arizona, depicted on the map entitled
``Lower San Pedro River Parcel'', dated May 31, 2006;
(B) the approximately 160 acres of land located in
Gila and Pinal Counties, Arizona,
depicted on the map entitled ``Southeast Arizona Land
Exchange and Conservation
Act of 2005--Non-Federal Parcel--Dripping Springs'',
dated August 2005; and
(C) the approximately 956 acres of land located in
Santa Cruz County, Arizona, depicted on the map
entitled ``Southeast Arizona Land Exchange and
Conservation Act of 2008--Non-Federal Parcel--Appleton
Ranch'', dated May 2008.
(c) Conveyance of Land to Town.--
(1) In general.--Subject to paragraph (2), not later than
90 days after the date on which the exchange under subsection
(b) is completed, on receipt of a request from the Town for any
parcel of land described in paragraph (2), the Secretary shall
convey to the Town, for a price equal to market value, as
appraised under section 5 and subject to any credit under
section 5(b)(3), each parcel of land that the Town requests.
(2) Eligible parcels.--The Town may request--
(A) the approximately 30 acres of land located in
Pinal County, Arizona, occupied on the date of
enactment of this Act by the Fairview Cemetery and
depicted on the map entitled ``Southeast Arizona Land
Exchange and Conservation Act of 2005--Federal Parcel--
Fairview Cemetery'', dated January 2005;
(B) the reversionary interest, and any reserved
mineral interest, of the United States in the
approximately 265 acres of land located in Pinal
County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Federal Reversionary Interest--Superior
Airport'', dated January 2005; and
(C) the approximately 181 acres of land located in
Pinal County, Arizona, depicted on the map entitled
``Southeast Arizona Land Exchange and Conservation Act
of 2005--Federal Parcel--Superior Airport Contiguous
Parcel'', dated June 2005.
(3) Condition of conveyance.--Any conveyance of land under
paragraph (1) shall be carried out in a manner that provides
the United States manageable boundaries on any parcel retained
by the Secretary, to the maximum extent practicable.
(d) Timing of Exchange.--It is the intent of Congress that the land
exchange directed by subsection (b) should be completed not later than
1 year after the date of enactment of this Act.
(e) Costs of Conveyances and Exchanges.--In accordance with
sections 254.4 and 254.7 of title 36, Code of Federal Regulations (or
successor regulations), Resolution Copper shall assume responsibility
for--
(1) hiring any contractors determined by the Secretary to
be necessary for carrying out an exchange or conveyance under
subsection (a), (b), or (c); and
(2) paying, without compensation--
(A) the costs of each appraisal relating to the
exchange or conveyance under subsection (a), (b), or
(c), including any reasonable reimbursements to the
Secretary on request of the Secretary for the cost of
reviewing and approving an appraisal;
(B) the costs of any hazardous materials survey,
mitigation requirement, clearance, or land survey,
including any necessary land surveys conducted by the
Bureau of Land Management Cadastral Survey; and
(C) any other cost agreed to by Resolution Copper
and the Secretary.
(f) Contractor Work and Approvals.--
(1) In general.--Any work relating to the exchange or
conveyance of land that is performed by a contractor shall be
subject to the mutual agreement of the Secretary and Resolution
Copper, including any agreement with respect to--
(A) the selection of the contractor; and
(B) the scope of work performed by the contractor.
(2) Review and approval.--Any required review and approval
of work by a contractor shall be performed by the Secretary in
accordance with applicable law (including regulations).
(3) Lead actor.--The Secretary and the Secretary of the
Interior may mutually agree to designate the Secretary as the
lead actor for any action under this subsection.
(g) Pre-Exchange Processing.--Before completing the land exchange
under subsection (b), the Secretary or the Secretary of the Interior,
as appropriate, shall complete--
(1) any necessary land survey; and
(2) any required clearance, review, mitigation activity, or
approval relating to any threatened and endangered species,
cultural or historic resource, wetlands and floodplains, or
hazardous material.
(h) Post-Exchange Processing.--Before commencing production in
commercial quantities of any valuable mineral from the Federal land
conveyed to Resolution Copper pursuant to subsection (a)(2) (except for
any such production from any exploration and mine development shafts,
adits, and tunnels needed to determine feasibility and pilot plant
testing of commercial production or to access the ore body and tailings
deposition areas), the Secretary shall publish an environmental impact
statement in accordance with section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C.4322(2)(C)) regarding any
Federal agency action carried out relating to the commercial
production, including an analysis of the impacts of the production.
SEC. 5. VALUATION OF LAND EXCHANGED OR CONVEYED.
(a) Exchange Valuation.--
(1) In general.--The value of the land exchanged or
conveyed under subsection (a), (b), or (c) of section 4
(including any reversionary interest) shall be determined by
the Secretary through 1 or more appraisals conducted in
accordance with paragraph (2).
(2) Appraisals.--
(A) In general.--An appraisal under this section
shall be--
(i) performed by an appraiser mutually
agreed to by the Secretary and Resolution
Copper;
(ii) performed in accordance with--
(I) the Uniform Appraisal Standards
for Federal Land Acquisitions
(Department of Justice, 5th Edition,
December 20, 2000);
(II) the Uniform Standards of
Professional Appraisal Practice; and
(III) Forest Service appraisal
instructions; and
(iii) submitted to the Secretary for review
and approval.
(B) Reappraisals and updated appraised values.--
After the final appraised value of a parcel is
determined and approved under subparagraph (A), the
Secretary shall not be required to reappraise or update
the final appraised value--
(i) for a period of 3 years after the
approval by the Secretary of the final
appraised value under subparagraph (A)(iii); or
(ii) at all, after an exchange agreement is
entered into by Resolution Copper and the
Secretary.
(C) Public review.--Before carrying out a land
exchange under section 4, the Secretary shall make
available for public review a summary of the appraisals
of the land to be exchanged.
(3) Failure to agree.--If the Secretary and Resolution
Copper fail to agree on the value of a parcel to be exchanged,
the final value of the parcel shall be determined in accordance
with section 206(d) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1716(d)).
(4) Federal land appraisal.--
(A) Treatment as unencumbered.--
(i) In general.--Subject to clause (ii),
the value of the Federal land shall be
determined as if the land is unencumbered by
any unpatented mining claims of Resolution
Copper.
(ii) Effect.--Nothing in this Act affects
the validity of any unpatented mining claim or
right of Resolution Copper.
(B) Appraisal information.--To provide any
information necessary to calculate a value adjustment
payment for purposes of section 10, the appraisal under
this paragraph shall include a detailed royalty income
approach analysis, in accordance with the Uniform
Appraisal Standards for Federal Land Acquisition, of
the market value of the Federal land, regardless of
whether that analysis does not reflect the appraisal
approach relied on by the appraiser to determine the
final market value of the Federal land.
(b) Equalization of Value-Surplus of Federal Land Value.--
(1) In general.--If the final appraised value of the
Federal land exceeds the value of the non-Federal land,
Resolution Copper shall make a cash equalization payment to the
Secretary to equalize the values of the Federal land and non-
Federal land.
(2) Amount of payment.--Notwithstanding section 206(b) of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1716(b)), the Secretary may accept a cash equalization payment
under paragraph (1) in an amount that is greater than 25
percent of the value of the Federal land.
(3) Disposition and use of proceeds.--A cash equalization
payment received by the Secretary under paragraph (1) shall--
(A) without further appropriation, be deposited in
the Federal Land Disposal Account established by
section 206(a) of the Federal Land Transaction
Facilitation Act (43 U.S.C. 2305(a)); and
(B) regardless of whether that account is
terminated, remain available to the Secretary and the
Secretary of the Interior, as jointly determined to be
appropriate, for--
(i) the acquisition from willing sellers,
during the 2-year period beginning on the date
on which the payment is deposited in the
Federal Land Disposal Account, of land or
interests in land within the hydrographic
boundary of the San Pedro River (including
tributaries) in the State of Arizona; or
(ii) the management and protection of
endangered species and other sensitive land or
environmental values in the San Pedro Riparian
National Conservation Area established by
section 101 of the Arizona-Idaho Conservation
Act of 1988 (16 U.S.C. 460xx), including
management under any applicable cooperative
agreement between the Secretary of the Interior
and an appropriate State or local agency or
qualified organization under section 103(c) of
that Act (16 U.S.C. 460xx-2(c)).
(c) Surplus of Non-Federal Land Value.--If the final appraised
value of the non-Federal land exceeds the value of the Federal land
involved in the exchange under section 4--
(1) the Secretary shall not make a payment to Resolution
Copper to equalize the values of the land; and
(2) the surplus value of the non-Federal consideration
shall be considered a donation by Resolution Copper to the
United States.
(d) Payment for Land Conveyed to Town.--
(1) In general.--The Town shall pay the Secretary market
value for any land acquired by the Town from the Secretary
under section 4(c), as determined by the Secretary through an
appraisal conducted in accordance with subsection (a)(2).
(2) Credit.--If the final appraised value of the non-
Federal land exceeds the value of the Federal land in the
exchange under section 4, the obligation of the Town to pay the
United States under paragraph (1) shall be reduced by an amount
equal to the excess value of the non-Federal consideration.
(3) Deposits.--The Secretary shall deposit any amounts
received from the Town under this subsection in the fund
established under Public Law 90-171 (commonly known as the
``Sisk Act'') (16 U.S.C. 484a).
(4) Use of funds.--Amounts deposited under paragraph (3)
shall be available to the Secretary until expended, without
further appropriation, for the acquisition of land or interests
in land in the National Forest System in the State of Arizona.
(e) Conforming Amendment.--Section 103(c) of the Arizona-Idaho
Conservation Act of 1988 (16 U.S.C. 460xx-2(c)) is amended by inserting
``or qualified organizations (as defined in section 170(h) of the
Internal Revenue Code of l986)'' after ``State and local agencies''.
SEC. 6. APACHE LEAP NATURAL AND CULTURAL RESOURCE CONSERVATION
EASEMENT.
(a) In General.--To protect the scenic, cultural, historic,
educational, and natural resource values of the Apache Leap escarpment,
as a condition of the land exchange under section 4, Resolution Copper
shall deliver to the Secretary an executed document granting a
permanent conservation easement for the easement area to an entity that
is--
(1) a qualified unit of government or Indian tribe; or
(2) a land trust or other qualified organization as defined
in section 170(h) of the Internal Revenue Code of 1986.
(b) Easement Area.--The area of the conservation easement under
this section shall be the surface estate of Apache Leap.
(c) Terms.--The conservation easement under this section--
(1) shall--
(A) prohibit surface development of the easement
area by Resolution Copper, except for a fence, sign,
monitoring device, or other improvement for an
administrative, public health and safety, or other
appropriate purpose, as determined by Resolution Copper
and any grantee of the conservation easement;
(B) prohibit commercial mineral extraction under
the easement area; and
(C) provide for appropriate nonmotorized public
access to and use of the easement area, as determined
by Resolution Copper and any grantee of the
conservation easement; and
(2) may contain such other terms and conditions as the
grantor or grantee of the conservation easement, in
consultation with the Town, interested Indian tribes, and any
other interested parties, determines to be appropriate to
conserve, protect, enhance, and manage the cultural and
historic resources and traditional uses of the easement area.
(d) Endowment.--As a condition of the conveyance under section
4(a), Resolution Copper shall pay to the grantee of the conservation
easement under this section $250,000, to be used by the grantee of the
conservation easement--
(1) to monitor the easement;
(2) to enforce the borders of the easement;
(3) to carry out any administrative activity relating to
the easement; and
(4) to provide such additional protections, access, or
alternative access as may be determined appropriate pursuant to
subsection (f).
(e) Role of Secretary.--
(1) In general.--The Secretary--
(A) may be consulted during the preparation and
drafting of the executed document granting a permanent
conservation easement to the easement area under
subsection (a); but
(B) unless otherwise agreed to by the Secretary and
Resolution Copper, shall not be--
(i) a party to the conservation easement
under this section; or
(ii) required to carry out any activity
relating to the monitoring or enforcement of
the conservation easement under this section.
(2) Additional management.--The Secretary may manage the
Notch area labeled and depicted on the map referred to in
section 3(1) in accordance with the terms of the conservation
easement under this section.
(f) Additional Protections and Access.--Not later than 3 years
after the date of the conveyance of the Federal land, Resolution Copper
and the grantee, in consultation with the Town, interested Indian
tribes, and other interested parties, shall determine whether the area
covered by the conservation easement should be managed to establish--
(1) additional cultural and historical resource protections
or measures, including permanent or seasonal closures of any
portion of the easement area to protect cultural or
archeological resources; or
(2) additional or alternative public access routes, trails,
and trailheads to Apache Leap.
(g) Easement and Appraisal.--
(1) In general.--The requirement that Resolution Copper
grant the conservation easement under this section shall not be
considered in determining, or result in any diminution in, the
market value of the Federal land for purposes of an appraisal
under section 5.
(2) Effect.--The market value of the conservation easement
and any amount paid by Resolution Copper under subsection (d)
shall be considered to be a donation by Resolution Copper to
the United States.
(h) Mining Activities.--Except as provided in subsection (c) and
other Federal law (including regulations) relating to mining activities
on private land, the conservation easement shall not impose any
additional restrictions on mining activities carried out by Resolution
Copper outside of the easement area after the date of the conveyance
under section 4(a).
SEC. 7. INCORPORATION, MANAGEMENT, AND STATUS OF ACQUIRED LAND.
(a) Land Acquired by the Secretary.--
(1) In general.--Land acquired by the Secretary under this
Act, including any land or interest in land acquired by the
Secretary under section 4(b) shall--
(A) become part of the National Forest within which
the land is located; and
(B) be administered in accordance with the laws
(including regulations) applicable to the National
Forest System.
(2) Boundaries.--For purposes of section 7 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 4601 et seq.),
the boundaries of a National Forest in which land acquired by
the Secretary is located shall be deemed to be the boundaries
of that forest as in existence on January 1, 1965.
(3) Management of ji ranch.--
(A) In general.--On the date on which the Secretary
acquires the JI Ranch parcel described in section
4(b)(1)(A)(iv), the Secretary shall manage the land to
allow Yavapai and Apache Indian tribes--
(i) to access the land; and
(ii) to undertake traditional activities
relating to the gathering of acorns.
(B) Authority of secretary.--On receipt of a
request from the Yavapai or Apache Indian tribe, the
Secretary may temporarily or seasonally close to the
public any portion of the land described in section
4(b)(1) during the period in which the Yavapai or
Apache Indian tribe undertakes any activity described
in subparagraph (A)(ii).
(b) Land Acquired by the Secretary of the Interior.--
(1) In general.--Land acquired by the Secretary of the
Interior under this Act shall--
(A) become part of the administrative unit
(including the national conservation area, if
applicable) or other area within which the land is
located; and
(B) be managed in accordance with the laws
(including regulations) applicable to the
administrative unit, national conservation area, or
other area within which the land is located.
(2) Lower san pedro river land.--To preserve and enhance
the natural character and conservation value of the land
described in section 4(b)(1)(B)(i), on acquisition of the land
by the Secretary of the Interior, the land shall be--
(A) incorporated in, and administered as part of,
the San Pedro Riparian National Conservation Area
established by section 101 of the Arizona-Idaho
Conservation Act of 1988 (16 U.S.C. 460xx); and
(B) managed to preserve or enhance the conservation
values of the Conservation Area in accordance with that
Act.
(c) Withdrawal.--On acquisition by the United States of any land
under this Act, subject to valid existing rights and without further
action by the Secretary, the acquired land is permanently withdrawn
from all forms of entry and appropriation under--
(1) the public land laws (including the mining and mineral
leasing laws); and
(2) the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.).
SEC. 8. PUBLIC USES OF FEDERAL LAND.
(a) Replacement Campground.--
(1) In general.--Not later than 4 years after the date of
enactment of this Act, the Secretary, in consultation with
Resolution Copper, the Town, and other interested parties,
shall design and construct in the Globe Ranger District of the
Tonto National Forest 1 or more replacement campgrounds for the
Oak Flat Campground (including appropriate access routes to any
replacement campgrounds).
(2) Public facilities.--Any replacement campgrounds under
this subsection shall be designed and constructed in a manner
that adequately (as determined in the sole discretion of the
Secretary) replaces, or improves on, the facilities, functions,
and amenities available to the public at the Oak Flat
Campground.
(3) Costs of replacement.--Resolution Copper shall pay the
actual cost to the Secretary of designing, constructing, and
providing access to any replacement campgrounds under this
subsection, not to exceed $ 1,000,000.
(b) Interim Oak Flat Campground Access.--
(1) In general.--The document conveying the Federal land to
Resolution Copper under section 4(a) shall specify that--
(A) during the 4-year period beginning on the date
of enactment of this Act, the Secretary shall retain
title to, operate, and maintain the Oak Flat
Campground; and
(B) at the end of that 4-year period--
(i) the withdrawal of the Oak Flat
Campground shall be revoked; and
(ii) title to the Oak Flat Campground shall
be simultaneously conveyed to Resolution
Copper.
(2) Liability.--During the interim period described in
paragraph (1)(A), Resolution Copper shall not be liable for any
public use of the Oak Flat Campground.
(c) Mineral Exploration.--During the 4-year period described in
subsection (b)(1)(A)--
(1) the Oak Flat campground shall remain withdrawn from all
forms of entry and appropriation under the public land laws
(including the mining and mineral leasing laws); but
(2) Resolution Copper shall have the right to explore for
minerals under the Oak Flat Campground by directional drilling
or any other method that does not disturb the land surface of
the Oak Flat Campground.
(d) BoulderBlast Competition.--During 5-year period beginning on
the date of enactment of this Act, the Secretary, in consultation with
Resolution Copper, may issue not more than 1 special use permit per
calendar year to provide public access to the bouldering area on the
Federal land for purposes of the annual ``BoulderBlast'' competition.
(e) Liability.--Resolution Copper shall not be liable for any
public use of the Federal land under subsection (c) or (d).
SEC. 9. MISCELLANEOUS PROVISIONS.
(a) Revocation of Orders; Withdrawal.--
(1) Revocation of orders.--Any public land order that
withdraws the Federal land from appropriation or disposal under
a public land law shall be revoked to the extent necessary to
permit disposal of the land.
(2) Withdrawal.--On the date of enactment of this Act, if
the Federal land and any non-Federal land required to be
exchanged under this Act are not withdrawn or segregated from
entry and appropriation under a public land law (including
mining and mineral leasing laws and the Geothermal Steam Act of
l970 (30 U.S.C. 1001 et seq.)), the land shall be withdrawn
from entry and appropriation, subject to any right of
Resolution Copper, until the date of the conveyance of Federal
land under section 4(a).
(b) Maps, Estimates, and Descriptions.--
(1) Minor errors.--The Secretary and Resolution Copper, may
by mutual agreement correct any minor errors in any map,
acreage estimate, or description of any land conveyed or
exchanged under this Act.
(2) Conflict.--If there is a conflict between a map, an
acreage estimate, or a description of land under this Act, the
map shall control unless the Secretary and Resolution Copper
mutually agree otherwise.
(3) Availability.--On the date of enactment of this Act,
the Secretary shall file and make available for public
inspection in the Office of the Supervisor, Tonto National
Forest, any map referred to in this Act.
SEC. 10. VALUE ADJUSTMENT PAYMENT.
(a) Annual Production Reporting.--
(1) In general.--Beginning on February 15 of the calendar
year beginning after the date of commencement of production of
valuable locatable minerals in commercial quantities from the
Federal land, and annually thereafter, Resolution Copper shall
submit to the Secretary of the Interior a report describing the
quantity of locatable minerals in commercial quantities
produced from the Federal land during the period covered by the
report.
(2) Requirements.--Each annual report under paragraph (1)
shall be prepared in accordance with applicable Federal
recordkeeping and reporting requirements relating to the
production of valuable locatable minerals in commercial
quantities on Federal land during the period covered by the
report.
(b) Payment on Production.--
(1) In general.--If and when the cumulative production of
valuable locatable minerals in commercial quantities produced
from the Federal land exceeds the quantity of production of
locatable minerals used in the royalty income approach analysis
under the Uniform Appraisal Standards for Federal Land
Acquisitions prepared under section 5(a)(4)(B), Resolution
Copper shall pay to the United States, on or before March 15 of
the following calendar year, a value adjustment payment at a
rate equal to--
(A) the Federal royalty rate, if any, in effect for
the production of valuable locatable minerals from
Federal land before December 31, 2012; or
(B) if such a Federal royalty rate is not in effect
before December 31, 2012, the royalty rate used for
purposes of the royalty income approach analysis
prepared under section 5(a)(4)(B).
(2) Use of funds.--Any funds paid to the United States
under paragraph (1) shall--
(A) be deposited in a special account in the
Treasury of the United States; and
(B) remain available, without further
appropriation, to the Secretary and the Secretary of
the Interior, as may jointly determined to be
appropriate, for the acquisition from willing sellers
of land or interests in land in the State of Arizona.
(c) No Effect on State Law.--Nothing in this Act modifies, expands,
diminishes, amends, or otherwise affects any provision of State law
(including regulations), including any law or regulations relating to
the imposition, application, timing, or collection of a State excise or
severance tax under Arizona Revised Statutes 42-5201-5206.
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