[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 775 Reported in Senate (RS)]

                                                        Calendar No. 65

103d CONGRESS

  1st Session

                                 S. 775

                          [Report No. 103-45]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                May 19 (legislative day, April 19), 1993

                       Reported without amendment





                                                        Calendar No. 65
103d CONGRESS
  1st Session
                                 S. 775

                          [Report No. 103-45]

 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, Mr. Stevens, Mr. Simpson, Mr. Bryan, Mr. Reid, Mr. 
  Brown, Mr. Thurmond, and Mr. Gorton) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

                May 19 (legislative day, April 19), 1993

              Reported by Mr. Johnston, without amendment

_______________________________________________________________________

                                 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.
S 775 RS----2