[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1102 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1102

 To amend the general mining laws to provide a reasonable royalty from 
      mineral activities on Federal lands, to specify reclamation 
requirements for mineral activities on Federal lands, to create a State 
  program for the reclamation of abandoned hard rock mining sites on 
                 Federal lands, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 1997

    Mr. Craig (for himself, Mr. Murkowski, Mr. Reid, Mr. Bryan, Mr. 
 Bennett, Mr. Burns, Mr. Hatch, Mr. Thomas, Mr. Campbell, Mr. Stevens, 
and Mr. Kempthorne) introduced the following bill; which was read twice 
     and referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the general mining laws to provide a reasonable royalty from 
      mineral activities on Federal lands, to specify reclamation 
requirements for mineral activities on Federal lands, to create a State 
  program for the reclamation of abandoned hard rock mining sites on 
                 Federal lands, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 101. SHORT TITLE.

    This Act may be cited as the ``Mining Law Reform Act of 1997''.

SEC. 102. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds and declares that--
            (1) a secure and reliable supply of locatable minerals is 
        essential to the industrial base of the United States, national 
        security, and balance of trade;
            (2) many of the deposits of locatable minerals that may be 
        commercially developed are on Federal lands as that term is 
        defined in this Act, and are difficult and expensive to 
        discover, mine, extract and process;
            (3) the national need for locatable minerals will continue 
        to expand, and without a strong mining industry the demand for 
        the minerals will exceed domestic sources of supply;
            (4) mining of locatable minerals is an extremely high-risk, 
        capital-intensive endeavor, which, to attract necessary 
        investment, requires certainty and predictability in access to 
        Federal lands in establishment of mining titles, and in the 
        rights of owners of mining claims or sites 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 and the 
        various Federal, State, and local taxes paid by the mining 
        industry in the United States;
            (6) the diversity in terrain, climate, biological, 
        chemical, and other physical conditions, and variation among 
        the locatable minerals mined and the methods of mining and 
        processing, require that reclamation standards be tailored to 
        local and regional conditions;
            (7) there are extensive Federal and State environmental 
        standards that apply to mining operations on Federal lands, 
        including State programs for the protection of groundwater 
        quality;
            (8) every State containing Federal lands has enacted laws 
        and regulations governing the reclamation of mined lands and, 
        subject to the Supremacy Clause of the United States 
        Constitution, these laws and regulations, including financial 
        assurance requirements, apply to mineral activities on Federal 
        lands;
            (9) changes in the general mining laws of the United States 
        to provide more direct economic return to the United States and 
        greater protection of public resources are desirable, so long 
        as the changes do not act as a disincentive to development of 
        minerals, 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 
        domestic supply of minerals, or adversely affect the balance of 
        trade of the United States; and
            (10) mining claims, mill sites and tunnel sites located 
        under the general mining laws are property interests, and any 
        law or regulation that impairs existing property rights may 
        expose the Federal Government to taking claims under the fifth 
        amendment to the United States Constitution.
    (b) Purpose.--It is the purpose of this Act to--
            (1) promote exploration for and the development of a secure 
        and reliable domestic source of locatable minerals;
            (2) provide for increased Federal revenue from the location 
        and production of locatable minerals from Federal lands through 
        fees, patent payments and royalties;
            (3) ensure that mineral activities on Federal lands are 
        conducted in compliance with all applicable Federal and State 
        environmental regulations and standards, including standards 
        governing mined land reclamation;
            (4) ensure that all Federal lands affected by mineral 
        activities under the general mining laws are reclaimed as 
        required by applicable laws;
            (5) establish a program to reclaim abandoned locatable mine 
        sites on Federal lands; and
            (6) recognize that unpatented mining claims, mill sites and 
        tunnel sites are property rights in the fullest sense and 
        avoid, to the greatest extent possible, claims of takings of 
        existing property rights under the general mining laws that 
        could require compensation under the fifth amendment to the 
        United States Constitution.

SEC. 103. DEFINITIONS.

    When used in this Act:
            (1) ``Assessment year'' means the annual period commencing 
        at 12 o'clock noon on the first day of September and ending at 
        12 o'clock noon on the first day of September of the following 
        year.
            (2) ``Federal lands'' means, except as provided otherwise 
        in title III, lands and interests in lands owned by the United 
        States that are open to mineral location, or that were open to 
        mineral location when a mining claim or site was located and 
        which have not been patented under the general mining laws.
            (3) ``General mining laws'' means those Acts which 
        generally comprise chapters 2, 11, 12, 12A, 15, and 16, and 
        sections 161 and 162, of title 30 of the United States Code, 
        all Acts heretofore enacted which are amendatory of or 
        supplementary to any of the foregoing Acts, and the judicial 
        and administrative decisions interpreting such Acts.
            (4) ``Locatable minerals'' means those minerals owned by 
        the United States and subject to location and disposition under 
        the general mining laws on or after the effective date of this 
        Act, but not including any mineral held in trust by the United 
        States for any Indian or Indian tribe, as defined in section 2 
        of the Indian Mineral Development Act of 1982 (25 U.S.C. 2101), 
        or any mineral owned by any Indian or Indian tribe, as defined 
        in that section, that is subject to a restriction against 
        alienation imposed by the United States, or any mineral owned 
        by any incorporated Native group, village corporation, or 
        regional corporation and acquired by the group or corporation 
        under the provisions of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1601 et seq.).
            (5) ``Mineral activities'' means any activity on Federal 
        lands related to, or incidental to, exploration for or 
        development, mining, production, beneficiation, or processing 
        of any locatable mineral or mineral that would be locatable if 
        it were subject to disposition under the general mining laws, 
        or reclamation of the impacts of such activities.
            (6) ``Mining claim or site'', except where provided 
        otherwise, means a lode mining claim, placer mining claim, mill 
        site or tunnel site.
            (7) ``Operator'' means any person conducting mineral 
        activities subject to this Act.
            (8) ``Person'' means an individual, Indian tribe, 
        partnership, association, society, joint venture, joint stock 
        company, firm, company, limited liability company, corporation, 
        cooperative or other organization, and any instrumentality of 
        State or local government, including any publicly owned utility 
        or publicly owned corporation of State or local government.
            (9) ``Secretary'' means (i) in titles II and V, the 
        Secretary of the Interior acting through the Bureau of Land 
        Management, (ii) in title IV, the Secretary of the Interior 
        acting through the Bureau of Land Management or the Minerals 
        Management Service, or both, and (iii) elsewhere in this Act, 
        the Secretary of Agriculture, acting through the Forest 
        Service, with respect to lands under the jurisdiction of the 
        Secretary of Agriculture, and the Secretary of the Interior, 
        acting through the Bureau of Land Management, with respect to 
        all other lands subject to the requirements of this Act.

          TITLE II--DISPOSITION OF LOCATABLE MINERAL DEPOSITS

SEC. 201. CLAIM MAINTENANCE REQUIREMENTS.

    (a) Maintenance Fee.--After the date of enactment of this Act, the 
owner of each unpatented mining claim or site located pursuant to the 
general mining laws, whether located before or after the enactment of 
this Act, shall pay in advance to the Secretary annually on or before 
September 1, and until a patent has been issued therefor, a maintenance 
fee of $100 per mining claim or site. The owner of each unpatented 
mining claim or site located after the date of enactment of this Act 
pursuant to the general mining laws shall pay to the Secretary, at the 
time the copy of the notice or certificate of location is filed with 
the Bureau of Land Management pursuant to section 314(b) of the Federal 
Land Policy and Management Act of 1976 (43 U.S.C. 1744(b)), in addition 
to the location fee required under subsection (f) of this section, an 
initial maintenance fee of $100 per mining claim or site for the 
assessment year which includes the date of location of such mining 
claim or site. If a mining claim or site is located within ninety days 
before September 1 and the copy of the notice or certificate of 
location is timely filed with the Bureau of Land Management under 
subsection 314(b) of the Federal Land Policy and Management Act of 1976 
after September 1, the annual maintenance fee payable under the first 
sentence of this subsection, for the following assessment year, shall 
be paid at the time such notice or certificate of location is filed, in 
addition to the location fee and the initial $100 maintenance fee. No 
maintenance fee shall be required if the fee is waived or the owner of 
the mining claim or site is exempt as provided in section 202 of this 
Act.
    (b) Assessment Work Requirements.--
            (1) For the first five assessment years following the 
        assessment year which includes the date of location of any 
        unpatented mining claim or site located on or after the date of 
        enactment of this Act, or for the first five assessment years 
        following the assessment year which includes the date of 
        enactment of this Act for any unpatented mining claim or site 
        located before the date of enactment, the annual maintenance 
        fee under subsection (a) of this section shall be in lieu of 
        the assessment work requirements of the general mining laws and 
        of any other Federal law. Beginning with the sixth assessment 
        year following the assessment year which includes such date of 
        location or enactment, such assessment work requirements shall 
        apply in addition to such annual maintenance fee, subject to 
        any suspension or deferment of annual assessment work provided 
        by law.
            (2)(A) Section 1 of the Act of September 2, 1958 (30 U.S.C. 
        28-1), is amended by inserting ``mineral activities, 
        environmental baseline monitoring, and'' after ``without being 
        limited to'' and before ``geological, geochemical and 
        geophysical surveys''.
            (B) Section 2(d) of the Act of September 2, 1958 (30 U.S.C. 
        28-2(d)), is amended by inserting ``environmental baseline 
        monitoring or'' after ``experience to conduct'' and before 
        ``geological, geochemical or geophysical surveys''.
            (C) Section 2 of the Act of September 2, 1958 (30 U.S.C. 
        28-2), is amended by adding at the end the following new 
        subsection:
    ``(e) The term `environmental baseline monitoring' means activities 
for collecting, reviewing and analyzing information concerning soil, 
vegetation, wildlife, mineral, air, water, cultural, historical, 
archeological or other resources related to planning for or complying 
with Federal and State environmental or permitting requirements 
applicable to potential or proposed mineral activities on the 
claim(s).''.
    (c) Maintenance Fee Statement.--Each payment under subsection (a) 
of this section shall be accompanied by a statement which reasonably 
identifies the mining claim or site for which the maintenance fee is 
being paid. Such statement may include the name of the mining claim or 
site, the serial number assigned by the Secretary to such mining claim 
or site, the description of the book and page in which the notice or 
certificate of location for such mining claim or site is recorded under 
State law, any combination of the foregoing, or any other information 
that reasonably identifies the mining claim or site for which the 
maintenance fee is being paid. The statement required under this 
subsection shall be in lieu of any annual filing requirements for 
mining claims or sites, under any other Federal law, but shall not 
supersede any such filing requirement under applicable State law.
    (d) Effect of Compliance as Against Subsequent Locators.--
            (1) Except as provided in paragraph (d)(2) of this 
        subsection, after the date of enactment of this Act, compliance 
        with the requirements of this section and sections 202 and 
        203(a) shall, from the time the location notice or certificate 
        is posted on the land under applicable State law, confer upon 
        the owner of any unpatented mining claim or site, whether 
        located before or after the date of enactment of this Act, an 
        exclusive right of possession, as against subsequent locators, 
        of the land included in such mining claim or site for the 
        purposes described in subsection 203(a). If more than one 
        mining claim or site owned or controlled by the same claim or 
        site owner covers substantially the same land, by reason of the 
        location of one or more mining claims or sites on such land, 
        the amendment or relocation of any such mining claim or site, 
        or otherwise, such exclusive right of possession shall extend 
        to all such mining claims or sites, effective from the time the 
        location notice or certificate for the initial mining claim or 
        site was posted on such land under applicable State law. The 
        order of location, amendment, or relocation of any such mining 
        claims or sites on such land shall not affect the validity of 
        any such mining claim or site. Such owner of the mining claim 
        or site shall not be required to be in actual, physical 
        occupation of such land and shall not be required to exclude 
        rival locators from such land. Such exclusive right of 
        possession shall be subject to applicable Federal law, 
        including the Multiple Mineral Development Act of 1954 (30 
        U.S.C. 521-31), the Materials Act of 1947 (30 U.S.C. 601-604) 
        and the Surface Resources Act of 1955 (30 U.S.C. 611-15) to the 
        extent applicable, and shall neither enlarge nor diminish any 
        rights of such owner of the mining claim or site as against the 
        United States in such land. This paragraph shall supersede the 
        common law doctrine of pedis possessio.
            (2) Conflicts over the right of exclusive possession of 
        land included in any mining claim or site shall be determined 
        in proceedings between owners of mining claims or sites under 
        the provisions of section 910 of the Revised Statutes (30 
        U.S.C. 53) and other applicable law, including but not limited 
        to the following:
                    (A) Any conflict based upon circumstances existing 
                as of the date of enactment of this Act between 
mining claims or sites located before the date of enactment of this 
Act, which shall be resolved under the law in effect on the day prior 
to the date of enactment of this Act, including the common law doctrine 
of pedis possessio.
                    (B) Any conflict arising on or after the date of 
                enactment of this Act between mining claims or sites 
                located before, on or after the date of enactment over 
                whether either owner of the mining claim or site has 
                complied with the requirements of this section or 
                section 202 or 203(a), shall be resolved under this 
                Act.
    (e) Failure of Co-Owner To Contribute.--Upon the failure of any one 
or more of several co-owners of any mining claim or site to contribute 
such co-owner or owners' portion of the location or maintenance fee 
under this section, any co-owner who has paid such fee may, after the 
payment due date, serve the delinquent co-owner or owners with notice 
of such failure in writing or, if such delinquent co-owner or owners 
cannot be located after reasonable efforts, by publication in a general 
circulation newspaper published in a location nearest the mining claim 
or site at least once a week for at least ninety days. If at the 
expiration of ninety days after such notice in writing or by 
publication, any delinquent co-owner fails or refuses to contribute the 
owed portion, such co-owner or owners' interest shall become the 
property of the owner or co-owners who have paid the required fee.
    (f) Location Fee.--The owner of each unpatented mining claim or 
site located on or after the date of enactment of this Act pursuant to 
the general mining laws shall pay to the Secretary, at the time the 
notice or certificate of location is filed with the Bureau of Land 
Management pursuant to subsection 314(b) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1744(b)), a location fee of $25 per 
claim.
    (g) Credit Against Royalty.--The annual claim maintenance fee paid 
for any unpatented mining claim or site on or before September 1 of any 
year shall be credited against the amount of royalty required to be 
paid under title IV for such mining claim or site during the following 
assessment year.
    (h) Fee Adjustments and Disposition.--
            (1) At the end of each period of five assessment years 
        after the date of enactment of this Act, the Secretary shall 
        adjust the maintenance fee and the location fee required by 
        this section by an amount equal to the net adjustment in the 
        implicit price deflator for the gross national product 
        established by the United States Department of Commerce over 
        the preceding five-year period, rounded up or down to the 
        nearest dollar.
            (2) The Secretary shall provide owners of mining claims or 
        sites with notice by publication in the Federal Register and in 
        local widely circulated newspapers of any adjustment made under 
        paragraph (1) not later than January 1 of any assessment year 
        in which the adjustment is made.
            (3) A fee adjustment under paragraph (1) shall apply to the 
        payment due for the next assessment year after the assessment 
        year in which notice is given under paragraph (2).
            (4) Subject to appropriations, all maintenance and location 
        fees received by the Secretary under this section shall be paid 
        into a State Fund or Federal Fund in accordance with sections 
        501 and 502, until termination as provided in section 506 of 
        this Act.
    (i) Oil Shale Claims Subject to Claim Maintenance Fee Under Energy 
Policy Act of 1992.--This section shall not apply to any oil shale 
claims for which a fee is required to be paid under paragraph 
2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
    (j) Failure To Comply.--The failure of the owner of the mining 
claim or site to pay the claim maintenance fee or location fee for a 
mining claim or site on or before the date such payment is due under 
subsection (a) or subsection (f) of this section shall constitute 
forfeiture of the mining claim or site and such mining claim or site 
shall be null and void, effective as of the day after the date such 
payment is due: Provided, however, That, if such maintenance fee or 
location fee is paid or tendered on or before the thirtieth day after 
such payment was due under subsection (a) or subsection (f) of this 
section, such mining claim or site shall not be forfeited or null or 
void, and such maintenance fee or location fee shall be deemed timely 
paid.
    (k) Repeal of Omnibus Budget Reconciliation Act Fee Requirements.--
Sections 10101 through 10106 of the Omnibus Budget Reconciliation Act 
of 1993 (30 U.S.C. 28f-28k) are hereby repealed.
    (l) Conforming Amendment.--The third sentence of section 2324 of 
the Revised Statutes (30 U.S.C. 28) is amended by adding the words 
``Except as provided in paragraph 201(b)(1) of the Mining Law Reform 
Act of 1997,'' at the beginning of such sentence and deleting the words 
``that is granted a waiver under section 10101 of the Omnibus Budget 
Reconciliation Act of 1993,''.
    (m) Amendment of FLPMA Filing Requirements.--
            (1) Section 314(a) of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1744(a)) is hereby repealed.
            (2) Section 314(c) of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1744(c)) is amended to read 
        as follows:
    ``(c) Failure To File as Constituting Forfeiture; Defective or 
Untimely Filing.--The failure to timely file the copy of the notice or 
certificate of location as required by subsection (b) shall constitute 
forfeiture of the mining claim and such claim shall be null and void by 
operation of law: Provided, however, That it shall not be considered a 
failure to file if the notice or certificate of location is defective 
or not timely filed for record under other State or Federal laws 
permitting or requiring the filing or recording thereof, or if the copy 
of the notice or certificate is filed by or on behalf of some but not 
all of the owners of the claim.''.

SEC. 202. WAIVER AND EXEMPTION.

    (a) Waiver of Fee.--The maintenance fee provided for in subsection 
201(a) shall be waived for the owner of a mining claim or site who 
certifies in writing to the Secretary, on or before the date the 
payment is due, that, as of the date such payment is due, such owner 
and all related persons own not more than twenty-five unpatented mining 
claims or sites. Any owner of a mining claim or site that is not 
required to pay a maintenance fee under this subsection shall continue 
to be subject to the assessment work requirements of the general mining 
laws or of any other State or Federal law, subject to any suspension or 
deferment of annual assessment work provided by law, for the assessment 
year following the filing of the certification, and paragraph 201(b)(1) 
of this Act shall not apply.
    (b) Related Persons.--As used in subsection (a), the term ``related 
persons'' includes--
            (1) the spouse and dependent children (as defined in 
        section 152 of the Internal Revenue Code of 1986), of the owner 
        of the mining claim or site; and
            (2) a person controlled by, controlling, or under common 
        control with the owner of the mining claim or site.
    (c) Exemption.--The owner of any mining claim or site who certifies 
in writing to the Secretary on or before the first day of any 
assessment year that access to such mining claim or site was denied or 
in any way impeded during the prior assessment year by the action or 
inaction of any local, State, or Federal governmental officer, agency, 
or court, or by any Indian tribal authority, shall be exempt from the 
maintenance fee and assessment work requirements of subsections (a) and 
(b) of section 201 for the assessment year following the filing of the 
certification.

SEC. 203. GOOD FAITH REQUIREMENT AND RESIDENTIAL OCCUPANCY; DIVESTMENT.

    (a) Good Faith Holding of Mining Claim or Site.--The location, 
maintenance, and use of an unpatented mining claim or site, whether 
located before or after enactment of this Act, shall be for the purpose 
of conducting mineral activities in good faith.
    (b) Residential Occupancy.--The Secretary shall not prohibit 
residential occupancy of an unpatented mining claim or site and shall 
not require removal of equipment or facilities until mineral activities 
are completed, if such occupancy is shown in a notice of intent or plan 
of operations to be reasonably required to accomplish the mineral 
activities described therein.

SEC. 204. PATENTS.

    (a) In General.--Except as provided in subsection (c), any patent 
issued by the United States under the general mining laws after the 
date of enactment of this Act shall be issued only--
            (1) upon payment by the owner of the claim 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 or the use of the land for mineral activities; and
            (2) subject to reservation by the United States of the 
        royalty provided in title IV.
    (b) Right of Reentry.--
            (1) Except as provided in subsection (c), and 
        notwithstanding any other provision of law, the United States 
        shall retain a right of reentry in lands patented under this 
        section.
            (2) Such right of reentry of the United States shall ripen 
        if--
                    (A) the Secretary, after engaging in good faith 
                discussions with the patentee, or any subsequent 
                owners, about the use of the land, concludes that the 
                patentee, or any subsequent owners, has used the land 
                for any purpose other than conducting mineral 
                activities in good faith;
                    (B) the Secretary has served on the patentee, or 
                subsequent owners, in the manner prescribed for service 
                of summons and complaint under the Federal Rule of 
                Civil Procedure, notice specifying such unauthorized 
                use and providing at least 90 days in which such 
                unauthorized use must be terminated. The giving of such 
                notice shall constitute final agency action appealable 
                by the patentee, or any subsequent owners;
                    (C) such use is not discontinued within the time 
                period specified by the Secretary in the notice 
                provided under subparagraph (B) or within sixty days 
                after all appeal rights have expired and any appeals of 
                such notice have been finally determined; and
                    (D) the Secretary elects to assert the right of 
                reentry in accordance with paragraph (3).
            (3) The ripened right of reentry retained by the United 
        States pursuant to subparagraph (2) shall vest and all right, 
        title and interest in such patented estate shall revert to the 
        United States only if--
                    (A) the Secretary files a declaration of reentry 
                within 6 months of the requisite occurrences under 
                paragraph (2) with the Office of the Bureau of Land 
                Management in the state where the lands subject to such 
                right of reentry are situated; and
                    (B) the Secretary records such declaration in the 
                office of the county recorder of the county in which 
                the lands subject to such right of reentry are situated 
                within 30 days of the filing under subparagraph (A).
            (4) One year after the patentee, or any subsequent owners, 
        provides written notice to the Secretary that all mineral 
        activities are completed and applicable reclamation is 
        completed, the right of reentry held by the United States and 
        created under this subsection shall expire unless within such 
        period the Secretary notifies the patentee, or any subsequent 
        owners, in writing that the right of reentry held by the United 
        States will be exercised. At such time, ownership of the 
        patented lands shall automatically revert to the United States, 
        notwithstanding the provisions of paragraph (2). The Secretary 
        may decline to exercise the right of reentry and such rights 
        shall continue if--
                    (A) solid waste or hazardous substances released on 
                or from the patented estate may pose a threat to public 
                safety or the environment; or
                    (B) acceptance of title would expose the United 
                States to liability for past mineral activities on the 
                patented estate.
    (c) Protection of Valid Existing Rights.--Notwithstanding any other 
provision of law, the requirements of this Act (except with respect to 
claim maintenance fees in accordance with section 201)--
            (1) shall not apply to the mining claims and sites 
        contained within those mineral patent applications pending at 
        the Department as of September 30, 1997, which shall be 
        processed under the general mining laws in effect immediately 
        prior to the date of enactment of this Act; and
            (2) likewise shall not apply to the mining claims or sites 
        for which there is on the date of enactment of this Act a 
        vested possessory property right against the United States 
        under the general mining laws in effect immediately prior to 
        the date of enactment of this Act.

          TITLE III--SURFACE MANAGEMENT OF MINERAL ACTIVITIES

SEC. 301. PURPOSE; APPLICABILITY; OPERATING AND RECLAMATION STANDARDS.

    (a) Purpose.--It is the purpose of this title to provide for 
mineral entry, exploration, location and operations pursuant to the 
general mining laws in a manner that will not unduly hinder such 
activities or diminish rights, including but not limited to all 
statutory and common law rights of access, obtained under the general 
mining laws or other authorities, but will assure that such activities 
are conducted in a manner that will prevent unnecessary and undue 
degradation of nonmineral surface resources on Federal lands. 
Compliance with the provisions of this title shall constitute a 
compliance with (i) the final sentence of subsection 302(b) of the 
Federal Land Policy and Management Act (43 U.S.C. 1732(b)); and (ii) 
any standard related to the management of surface resources within the 
National Forest System contained in or derived from the Organic 
Administration Act (16 U.S.C. 473 et seq.), the Multiple-Use Sustained-
Yield Act of 1960 (16 U.S.C. 528 et seq.), the Forest and Rangeland 
Renewable Resources Planning Act of 1974 (16 U.S.C. 1601 et seq.), or 
any other law applicable to Federal lands subject to this title within 
the National Forest System.
    (b) Applicability.--This title shall apply only to mineral 
activities on those Federal lands where the surface estate is managed 
by the Bureau of Land Management or the Forest Service.
    (c) Operations.--All mineral activities on Federal lands shall be 
conducted so as to prevent unnecessary and undue degradation of Federal 
lands by complying with applicable requirements of Federal and State 
environmental protection laws, including but not limited to--
            (1) the Atomic Energy Act of 1952 (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 (14 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.).
    (d) Reclamation.--In order to prevent unnecessary and undue 
degradation of surface resources, Federal lands disturbed by mineral 
activities shall be reclaimed, to the extent economically and 
technically practicable, in compliance with the provisions of section 
304.
    (e) Designated Lands.--Where any mineral activities are to be 
conducted on Federal lands administered by the Bureau of Land 
Management or the Forest Service specifically designated by any special 
Act of Congress that applies a specific land management, resource 
protection or reclamation standard (such as wild and scenic rivers and 
designated wilderness) to such lands, such management or protection 
standard shall apply to the extent of any conflict with the provisions 
of this title.

SEC. 302. AUTHORIZATION FOR MINERAL ACTIVITIES.

    (a) In General.--Except as otherwise provided in subsections (b) 
and (c) of this section, no person may engage in mineral activities on 
Federal lands unless that person has filed a plan of operations with, 
and received approval of the plan from, the Secretary in accordance 
with section 303.
    (b) Notice Required.--
            (1) A person may engage in mineral activities on Federal 
        lands that cause only minor, short term, readily reclaimable 
        impacts on surface resources, including but not limited to 
        initial exploratory test hole drilling and road limited to 
        initial exploratory test hole drilling and road construction, 
        only after filing with the Secretary a notice of intent to 
        conduct such activities.
            (2) Such notice shall include--
                    (A) the name and mailing address of the operator;
                    (B) when applicable, the name of the mining 
                claim(s) or site(s), and serial number(s) assigned to 
                the mining claim(s) or site(s) on which mineral 
                activities are proposed;
                    (C) a statement describing the activities proposed 
                and their location in sufficient detail to locate the 
                operations on the ground, and giving the approximate 
                date when activities will begin. The statement shall 
                include a description and the location of any access 
                routes to be constructed or improved and the type of 
                equipment to be used in their construction;
                    (D) a statement that reclamation of all areas will 
                be completed as required by subsection 301(d), and that 
                mineral activities will comply with the operations 
                standard as required by subsection 301(c); and
                    (E) evidence of financial assurance as required by 
                section 306.
            (3) Failure of the operator to conduct mineral activities 
        in conformance with the notice and the requirements of this 
        title may cause the operator to be subject to enforcement 
        pursuant to section 308.
            (4) The Secretary shall review the notice within thirty 
        days of receipt. If the Secretary determines that the proposed 
        mineral activities will, or are likely to cause more than 
        minor, short term, readily reclaimable impacts on surface 
        resources, the Secretary shall provide a statement of reasons 
        explaining why the mineral activities cannot proceed under 
        notice and shall require in writing that the operator submit a 
        proposed plan of operations in accordance with the requirements 
        of section 303. Failure of the Secretary to respond in writing 
        within thirty days of receipt of the notice shall be deemed to 
        be approval of the mineral activities proposed in the notice.
            (5) The Secretary shall establish by regulation from time 
        to time additional categories of mineral activities which may 
        be conducted under notice based on the amount of surface to be 
        disturbed, the type of equipment to be used, the time required 
        for reclamation, and other relevant factors.
    (c) Other Mineral Activities.--Notwithstanding the provisions of 
subsections (a) and (b), any person may conduct mineral activities on 
Federal lands which cause only a minimal disturbance of surface 
resources, including but not limited to claim location; exploration; 
geological, geophysical or geochemical surveys; environmental baseline 
monitoring; activities related to the gathering of data related to the 
preparation or analysis of a notice or plan of operations under this 
title, or required under any other applicable Federal or State 
environmental law or regulation; and other activities designated by the 
Secretary, without filing a notice or plan of operations with the 
Secretary.
    (d) Transfer of Rights.--An operator may transfer, assign or sell 
any rights associated with a notice without approval by the Secretary: 
Provided, That the successor in interest agrees in writing to assume 
the liabilities and reclamation responsibilities established under 
subsection (b) and provides evidence of financial assurance as required 
under section 306. The transfer, assignment or sale shall not become 
effective prior to the filing of such writing and evidence of financial 
assurance with the Secretary. The financial assurance of the transferee 
shall be substituted for the assurance previously submitted by the 
transferor and the financial assurance of the transferor shall be fully 
released.

SEC. 303. PLAN OF OPERATIONS; CONTENT, REVIEW AND APPROVAL.

    (a) Plan of Operations Requirements.--A plan of operations required 
under this title shall contain--
            (1) the name and mailing address of the operator;
            (2) when applicable, the name of the mining claim(s) or 
        site(s), and serial number(s) assigned to the mining claim(s) 
        or site(s) on which mineral activities are proposed;
            (3) a general description of the mineral activities 
        proposed, including the anticipated periods during which the 
        proposed mineral activities will occur;
            (4) a map showing existing and/or proposed routes of 
        surface access, or other means of access, and identifying areas 
        where surface disturbance will occur;
            (5) information describing the land and water resources of 
        the area expected to be disturbed by the proposed mineral 
        activities and any proposed mitigation measures necessary to 
        comply with the requirements of this title;
            (6) a reclamation plan which includes proposed measures to 
        reclaim Federal lands disturbed by the proposed mineral 
        activities as required under subsection 301(d);
            (7) evidence of adequate financial assurance as required 
        under section 306; and
            (8) a monitoring plan to assure compliance with the 
        requirements of the plan of operations.
    (b) Plan of Operations Review.--A proposed plan of operations shall 
be submitted to the Secretary, who shall promptly acknowledge receipt 
thereof to the operator. The Secretary shall promptly review the 
proposed plan of operations and shall notify the operator within thirty 
days--
            (1) that the plan of operations has been approved as 
        submitted;
            (2) of all changes in, or additions to the proposed plan of 
        operations necessary to comply with the requirements of this 
        title; or
            (3) that a specified reasonable amount of time is necessary 
        to complete the review, setting forth the circumstances which 
        justify the additional time.
    (c) Mineral Activities Pending Review.--Any operator who has 
submitted a plan of operations under this section may continue to 
conduct mineral activities otherwise authorized pursuant to subsections 
(b) and (c) of section 302 within the geographic area covered by the 
proposed plan of operations pending its approval.
    (d) Plan of Operations Approval.--
            (1) The Secretary shall approve a proposed plan of 
        operations within a reasonable period of time if--
                    (A) the proposed plan of operations substantially 
                complies with the requirements of this title; and
                    (B) the applicant has complied with the 
                requirements of section 306 concerning financial 
                assurance.
            (2) If, after review, the Secretary determines that a 
        proposed plan of operations will not substantially comply with 
        the requirements of this title, the Secretary shall specify all 
        deficiencies in the proposed plan, shall request the operator 
        to modify the proposed plan to comply with the requirements of 
        this title and shall specify all necessary modifications to the 
        proposed plan.
    (e) Modifications to an Approved Plan of Operations.--
            (1) Minor modifications.--At any time during which mineral 
        activities are being conducted under an approved plan of 
        operations, an operator may make minor modifications to the 
        approved plan of operations by notifying the Secretary. Failure 
        of the Secretary to respond in writing within thirty days of 
        receipt of the proposed minor modification shall be deemed to 
        be approval of the minor modification. For purposes of this 
        title, a ``minor modification'' is a change to the approved 
        plan of operations that is not likely to result in significant 
        impacts to surface resources different from those previously 
        considered in the approved plan of operations.
            (2) Review of minor modifications.--If the Secretary 
        determines that a proposed minor modification may be 
        significant, the Secretary shall provide a statement of reasons 
        and may require the operator to submit a significant 
        modification to the plan of operations pursuant to paragraph 
        (3) of this subsection.
            (3) Significant modification.--At any time during 
        activities under an approved plan of operations, the operator 
        may propose a significant modification to the approved plan of 
operations. A significant modification must be submitted, reviewed and 
approved in the same manner as a plan of operations under this section, 
except that the modification need not include information required 
under subsection 303(a) if the modification requires no change to such 
information: Provided, however, That approval of such modification 
shall neither require nor be denied or conditioned upon retrofit, 
redesign, reconstruction, closure or change in the operation of any 
facility, structure or mineral activity previously approved. For 
purposes of this title, a ``significant modification'' is a change to 
the approved plan of operations which is likely to result in 
significant impacts to surface resources different from those 
previously considered in the approved plan of operations.
            (4) Request by secretary.--At any time during which mineral 
        activities are being conducted under an approved plan of 
        operations, the Secretary may request that an operator submit a 
        modification to the approved plan of operations together with a 
        written determination that such modification is necessary to 
        prevent unnecessary and undue degradation of Federal lands as 
        required by section 301. The Secretary's determination that a 
        modification is necessary shall be subject to notice to the 
        operator and a right to a hearing at the request of the 
        operator. If the Secretary has requested a modification under 
        this paragraph, mineral activities may continue in accordance 
        with the approved plan of operations until the modification is 
        submitted, reviewed and approved.
    (f) Term.--An approved plan of operations shall remain in effect as 
approved until the mineral activities subject to the approved plan of 
operations are completed or until the plan of operations are completed 
or until the plan of operations is modified.
    (g) Transfer of Rights.--An operator may transfer, assign or sell 
any rights associated with an approved plan of operations without 
approval by the Secretary, provided that the successor in interest 
agrees in writing to assume the liabilities and reclamation 
responsibilities established by the approved plan of operations and 
provide evidence of financial assurance as required under section 306. 
The transfer, assignment or sale shall not become effective prior to 
the filing of such writing and evidence of financial assurance with the 
Secretary. The financial assurance of the transferee shall be 
substituted for the assurance previously submitted by the transferor, 
and the financial assurance of the transferor shall be fully released.

SEC. 304. RECLAMATION.

    A reclamation plan submitted with a proposed plan of operations 
pursuant to section 303 shall include appropriate measures to comply 
with substantive reclamation requirements of the State in which the 
proposed mineral activities will be located to the extent that those 
requirements are not in conflict with the purposes of the general 
mining laws and this Act, and the applicable provisions of State and 
Federal environmental protection laws, including those Federal laws 
listed in subsection 301(c). A proposed reclamation plan that complies 
with such State and Federal requirements shall be deemed sufficient to 
prevent unnecessary and undue degradation and to comply with subsection 
301(d), and certification or other approval issued by a State or 
Federal agency of compliance with such laws shall be deemed compliance 
with this section.

SEC. 305. TRANSITION RULES.

    (a) Applicability to Existing Operations.--Mineral activities for 
which an operator is authorized to proceed under notice or for which a 
plan of operations has been approved prior to the date of enactment of 
this Act shall continue under the terms and conditions of such notice 
or plan. Notices which were filed within thirty days of the effective 
date of enactment of this Act, and plans of operations which have been 
submitted before but not approved on the date of enactment of this Act, 
shall be reviewed based on the law existing on the day prior to the 
date of enactment of this Act. Significant modifications to approved 
plans of operations shall be submitted, reviewed, and approved pursuant 
to the applicable requirements of this title: Provided, however, That 
approval of such modifications shall neither require nor be conditioned 
upon retrofit, redesign, reconstruction, closure or change in the 
operation of any facility, structure or mineral activity previously 
approved.
    (b) Enforcement and Financial Assurance.--Notwithstanding the 
provisions of subsection (a), the enforcement provisions of section 308 
shall apply to all mineral activities on the effective date of this Act 
and, within one year after the effective date of this Act, all 
operators operating under notice or a plan of operations shall submit 
to the Secretary evidence of adequate financial assurance as may be 
required under section 306.

SEC. 306. FINANCIAL ASSURANCE.

    (a) Evidence of Financial Assurance.--
            (1) Prior to the commencement of any mineral activities 
        requiring a plan of operations, an operator shall furnish 
        evidence to the Secretary of a bond, surety, self-insurance or 
        other financial assurance (including the use of bonding pools 
        or a financial assurance instrument posted with a State or 
        another Federal agency) in an amount sufficient to cover the 
        reasonably estimated cost to complete reclamation as required 
        by the plan of operations.
            (2)(A) Prior to conducing notice activities subject 
to subsection 302(b), the operator shall comply with the financial 
assurance requirements promulgated by the Secretary applicable to such 
notice activities. Such requirements shall allow operators or owners of 
mining claims or sites to use bonding pools or statewide or nationwide 
bonds. Statewide or nationwide bonds shall be in amounts fixed by 
regulation that cover notice activities at multiple locations statewide 
or nationwide, as appropriate.
            (B) For such notice activities conducted between the date 
        of enactment of this Act and the effective date of such 
        regulations, the operator or owner of the mining claim or site 
        shall provide evidence of financial assurance, in the form and 
        manner authorized by the Secretary's regulations in effect on 
        the date of enactment of this Act, in an amount sufficient to 
        cover the reasonable estimated cost of reclamation required as 
        a result of such notice activities.
    (b) Review and Adjustment.--Not later than five years after the 
financial assurance is provided, and each five years thereafter, or at 
the request of the operator, the Secretary shall review its adequacy 
and may increase or decrease the amount of the financial assurance 
based upon changed circumstances, including a determination by the 
Secretary that a portion of the reclamation has been completed.
    (c) Financial Assurance for Increments.--Financial assurance for 
increments of mineral activities may be authorized if the financial 
assurance for an increment covers all reclamation costs within the area 
covered by the notice or plan of operations for that increment. After 
reclamation is completed, an operator may apply for, and the Secretary 
may grant, release of the financial assurance for the completed 
increment.

SEC. 307. FEDERAL AND STATE AUTHORITY AND COOPERATION.

    (a) Cooperative Agreement.--
            (1) Upon request from a State, the Secretary shall enter 
        into a cooperative agreement with that State for joint 
        administration of the requirements of this title relating to 
        mineral activities requiring a notice or plan of operations, 
        financial assurances, reclamation, inspection and enforcement 
        if the Secretary determines in writing that such State has the 
        capability to implement the agreement in a manner consistent 
        with the purposes of this title. A cooperative agreement may 
        cover (i) some or all of the responsibilities enumerated in 
        this paragraph, and (ii) some or all mineral activities on 
        Federal lands within a State.
            (2) Under a cooperative agreement, a State and the 
        Secretary may jointly administer mineral activities on Federal 
        lands. The State and the Secretary shall make an independent 
        and timely decision regarding individual plans of operation 
        under this title, but in no event shall the State's authority 
        under applicable Federal environmental protection statutes be 
        restricted.
            (3) Under a cooperative agreement, the State may conduct 
        inspections and monitoring activities, and take enforcement 
        actions deemed necessary to determine or require compliance 
        with the requirements of this Act, other than recommending 
        civil actions under section 308. The Secretary may not take 
        enforcement action where a State under a cooperative agreement 
        already has initiated appropriate enforcement action unless the 
        State requests that the Secretary recommend initiation of a 
        civil action under section 308.
            (4) Under a cooperative agreement, the financial assurance 
        sufficient to cover reclamation of Federal lands shall be 
        calculated based on the completion of both the Federal and 
        State reclamation requirements, and may be held as one bond. 
        The financial assurance shall be approved by both the Secretary 
        and the State prior to approval of a plan of operations, and 
        the Secretary and the State may agree that the financial 
        assurance may not be released without Federal and State 
        concurrence. Financial assurance that duplicates financial 
        assurance required under other State or Federal law shall not 
        be required under this title.
            (5) If a cooperative agreement is entered into pursuant to 
        this section, the Secretary shall, subject to appropriations, 
        reimburse the State for its regulatory costs in an amount 
        approximating, but not exceeding, the reasonably estimated 
        amount the Secretary would have reasonably expended absent a 
        cooperative agreement.
            (6) Each cooperative agreement entered into pursuant to 
        this section shall provide that (i) the Secretary shall take 
        appropriate action, including termination of the agreement, 
        upon a determination that State performance under the agreement 
        is not in substantial compliance with the agreement or the 
        requirements of this title, and (ii) prior to taking any such 
        action, the Secretary shall provide notice to the State 
        allowing the State a reasonable time to come into substantial 
        compliance.
    (b) Existing Agreements.--Any cooperative agreement or memorandum 
of understanding between the Secretary and any State related to the 
surface management of mineral activities on Federal lands subject to 
this Act in existence on the date of enactment of this Act shall 
continue in force unless the Secretary determines such agreement or 
memorandum of understanding is inconsistent with the provisions of this 
title.

SEC. 308. ENFORCEMENT, ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Inspections.--The Secretary, or a State if the State has 
entered into a cooperative agreement pursuant to section 307, shall 
conduct a minimum of one complete inspection each year of mineral 
activities for which a plan of operations or notice is required under 
section 302 to ensure compliance with the terms of the plan or notice. 
The operator shall grant access at reasonable times and under 
reasonable circumstances to the appropriate designated representative 
of the Secretary or State when requested. The Secretary or the State 
must give reasonable notice to the operator before commencing any 
inspection. The Secretary or the State may inspect more frequently, if 
warranted, and may modify the inspection schedule as necessary for 
mineral activities that are conducted on a seasonal basis.
    (b) Compliance Orders.--
            (1) Whenever, on the basis of any inspection authorized by 
        subsection (a), the Secretary finds that the operator is in 
        violation of any term or condition of a plan of operations or 
        notice, the Secretary may issue an order requiring the operator 
        to comply with such requirement, or may request the Attorney 
        General to bring a civil action in accordance with subsection 
        (c): Provided, however, That the Secretary shall not request 
        commencement of a civil action if (i) the violation is 
        corrected within thirty days, and (ii) the violation is neither 
        causing nor likely to cause irreparable harm to the environment 
        or a threat to human health or safety.
            (2) Any order issued under this subsection shall state with 
        reasonable specificity the nature of the violation and shall 
        require compliance within a reasonable period of time specified 
        in the order. The Secretary may extend the time specified for 
        compliance for a reasonable period, considering the seriousness 
        of the violation and any good faith efforts to comply with the 
        terms and conditions of the plan of operation.
    (c) Civil Actions.--At the request of the Secretary, the Attorney 
General may institute a civil action in the district court of the 
United States for the district in which the affected operation is 
located for a temporary restraining order, injunction, civil penalties 
as provided in subsection (d), or other appropriate remedy, when the 
operator (i) violates or refuses to comply with an order issued by the 
Secretary under subsection (b), or (ii) refuses to allow an inspection 
authorized under subsection (a).
    (d) Civil Penalties.--An operator that fails to comply with the 
requirements applicable to mineral activities conducted under notice 
pursuant to section 302 or the terms or conditions of a plan of 
operations approved under section 302, after notice of such failure and 
expiration of a reasonable period allowed for abatement as specified 
pursuant to subsection (b), is subject to a civil penalty of not more 
than $5,000 for each day of the continuance of such noncompliance. In 
determining the amount of the penalty, the court shall consider the 
existence of previous violations at the operation, the seriousness of 
the violation, the likelihood of irreparable harm to the environment 
and any hazard to the health or safety of the public, whether the 
operator was negligent, and the good faith of the operator.
    (e) Administrative Review.--
            (1) Any operator issued a compliance order under this 
        section may apply to the Secretary for review of the order 
        within thirty days of receipt thereof, or as the case may be, 
        within thirty days of such order being modified.
            (2) The Secretary shall provide an opportunity for a 
        hearing on the record at the request of the operator.
            (3) Pending completion of any review proceedings under this 
        subsection, the operator may file with the Secretary a written 
        request that the Secretary grant temporary relief from any 
        order issued under this section, supported by a detailed 
        statement of reasons for such relief. The Secretary shall 
        expeditiously issue an order or decision granting or denying 
        such relief.
    (f) Final Agency Action.-- Final agency action under this title 
shall be subject to judicial review pursuant to 5 U.S.C. 701-706 and 28 
U.S.C. 1331.

SEC. 309. SAVINGS CLAUSE.

    The provisions of this title shall supersede any provision of the 
general mining laws or the Federal Land Policy and Management Act, and 
any standard related to the management of surface resources within the 
National Forest System contained in or derived from the Organic 
Administration Act (16 U.S.C. 473 et seq.), the Multiple-Use Sustained-
Yield Act of 1960 (16 U.S.C. 528 et seq.), the Forest and Rangeland 
Renewable Resources Planning Act of 1974 (16 U.S.C. 1601 et seq.), or 
any other law applicable to Federal lands subject to this title within 
the National Forest System, and any rules promulgated under such laws, 
only to the extent that such laws or rules conflict or are inconsistent 
with the provisions of this title. Orders, rules and regulations in 
effect as of the date of enactment of this Act which govern surface 
management of mineral activities shall remain in effect under the 
authority of this title.

                           TITLE IV--ROYALTY

SEC. 401. ROYALTY.

    (a) In General.--The production and sale of locatable minerals 
(including associated minerals) from any unpatented mining claim (other 
than those from Federal lands to which subsection 204(b) applies) or 
any mining claim patented under subsection 204(a) shall be subject to a 
royalty of 5 percent of the Net Proceeds from such production mined and 
sold from such claim.
    (b) Royalty Exclusion.--
            (1) The royalty payable under this title shall be waived 
        for any person with annual Net Proceeds from mineral production 
        subject to subsection (a) of less than $50,000.
            (2) The obligation to pay royalties hereunder shall accrue 
        only upon the sale of locatable minerals or mineral products 
        produced from a mining claim subject to such royalty, and not 
        upon the stockpiling of the same for future processing.
            (3) Where mining operations subject to this section are 
        conducted in two or more places by the same person and qualify 
        for a waiver under subsection 202(a) the operations shall be 
        considered a single operation the aggregate Net Proceeds from 
        which shall be subject to the $50,000 limitation set forth in 
        this subsection.
            (4) No royalty shall be payable pursuant to this title with 
        respect to minerals processed at a facility by the same person 
        or entity which extracted the minerals if an urban development 
        action grant has been made under section 119 of the Housing and 
        Community Development Act of 1974 with respect to any portion 
        of such facility.
    (c) Definitions.--For the purposes of this title, the term:
            (1) ``Gross Yield'' shall mean--
                    (A) in the case of sales of gold and silver ore, 
                concentrates or bullion, or the sales of other 
                locatable minerals in the form of ore or concentrates, 
                the actual proceeds of sale of such ore, concentrates 
                or bullion;
                    (B) in the case of sales of beneficiated products 
                from locatable minerals other than those subject to 
                section 401(c)(1)(A), such as cathode, anode or copper 
                rod or wire, or other products fabricated from the 
                locatable minerals, the gross income from mining 
                derived from the first commercially marketable product 
                determined in the same manner as under section 613 of 
                the Internal Revenue Code of 1986;
                    (C) in the event that ore, concentrates, 
                beneficiated or fabricated products or locatable 
                minerals are used or consumed and are not sold in an 
                arms length transaction, the reasonable fair market 
                value of the ore, concentrates, beneficiated or 
                fabricated products at the mine or wellhead determined 
                from the first applicable of the following:
                            (i) published or other competitive selling 
                        prices of locatable minerals of like kind and 
                        grade;
                            (ii) any proceeds of sale;
                            (iii) value received in exchange for any 
                        thing or service; or
                            (iv) the value of any locatable minerals in 
                        kind or used or consumed in a manufacturing 
                        process or in providing a service; and
                    (D) without limiting the foregoing, the profits or 
                losses incurred in connection with forward sales, 
                futures or commodity options trading, metal loans, or 
                any other price hedging or speculative activity or 
                arrangement shall not be included in Gross yield.
            (2) ``Net Proceeds'' shall mean Gross Yield, less the sum 
        of the following allowable deductions for costs incurred prior 
        to sale or value determination, and none other:
                    (A) The actual cost of extracting the locatable 
                mineral.
                    (B) The actual cost of transporting the locatable 
                mineral from the claim to the place or places of 
                reduction, beneficiation, refining, and sale.
                    (C) The actual cost of reduction, beneficiation, 
                refining, and sale of the locatable mineral.
                    (D) The actual cost of marketing and delivering the 
                locatable mineral and the conversion of the locatable 
                mineral into money.
                    (E) The actual cost of maintenance and repairs of--
                            (i) all machinery, equipment, apparatus, 
                        and facilities used in the mine;
                            (ii) all crushing, milling, leaching, 
                        refining, smelting, and reduction works, 
                        plants, and facilities; and
                            (iii) all facilities and equipment for 
                        transportation.
                    (F) The actual cost for support personnel and 
                support services at the mine site, including without 
                limitation, accounting, assaying, drafting and mapping, 
                computer services surveying, housing, camp, and office 
                expenses, safety, and security.
                    (G) The actual cost of engineering, sampling, and 
                assaying pertaining to development and production.
                    (H) The actual cost of permitting, reclamation, 
                environmental compliance and monitoring.
                    (I) The actual cost of fire and other insurance on 
                the machinery, equipment, apparatus, works, plants, and 
                facilities mentioned in subparagraph (E).
                    (J) Depreciation of the original capitalized cost 
                of the machinery, equipment, apparatus, works, plants, 
                and facilities listed in subparagraph (E). The annual 
                depreciation charge shall consist of amortization of 
                the original cost in a manner consistent with the 
                Internal Revenue Code of 1986, as amended from time to 
                time. The probable life of the property represented by 
                the original cost must be considered in computing the 
                depreciation charge.
                    (K) All money expended for premiums for industrial 
                insurance, and the owner paid cost of hospital and 
                medical attention and accident benefits and group 
                insurance for all employees engaged in the production 
                or processing of locatable minerals.
                    (L) All money paid as contributions or payments 
                under State unemployment compensation law, all money 
                paid as contributions under the Federal Social Security 
                Act, and all money paid to State government in real 
                property taxes and severance or other taxes measured or 
                levied on production, or Federal excise tax payments 
                and payments as fees or charges for use of the Federal 
                lands from which the locatable minerals are produced.
                    (M) The actual cost of developmental work in or 
                about the mine or upon a group of mines when operated 
                as a unit.
    (d) Limitations and Allocations of Net Proceeds, Gross Yield, and 
Allowable Deductions.--
            (1) The several deductions listed in subparagraph (c)(2) 
        are intended to allow a reasonable allowance for overhead: 
        Provided, That they do not include any expenditures for 
        salaries, or any portion of salaries, of any person not 
        actually engaged in--
                    (A) the working of the mine;
                    (B) the operating of the leach pads, ponds, plants, 
                mills, smelters, or reduction works;
                    (C) the operating of the facilities or equipment 
                for transportation; or
                    (D) superintending the management of any of those 
                operations described in subparagraphs (A)-(C).
            (2) Ores or solutions of locatable minerals, subject to the 
        royalty requirements of this title, may be extracted from mines 
        comprised of mining claims and lands other than mining claims. 
        Ore or solutions of locatable minerals, subject to the royalty 
        requirements of this section, may be commingled with ores or 
        solutions from lands other than mining claims. In any such 
        case, for the purposes of determining the amount of royalties 
        payable under this title--
                    (A) the operator shall first sample, weigh or 
                measure, and assay the same in accordance with accepted 
                industry standards; and
                    (B) Gross Yield, allowable costs and Net Proceeds 
                for royalty purposes shall be allocated in proportion 
                to mineral products recovered from the mining claims in 
                accordance with accepted industry standards.
    (e) Liability for Royalty Payments.--The owner or co-owners of a 
mining claim subject to a royalty under this title shall be liable for 
such royalty to the extent of the interest in such claim owned. As used 
in this subsection, ``owner'' and ``co-owner'' mean the person or 
persons owning the right to mine locatable minerals from such claim and 
receiving the Net Proceeds of such sale. No person who makes any 
royalty payment attributable to the interest of the owner or co-owners 
liable therefor shall become liable to the United States for such 
royalty as a result of making such payment on behalf of such owner or 
co-owners.
    (f) Time and Manner of Payments.--
            (1) Royalty payments for production from any mining claim 
        subject to a royalty under this title shall be due to the 
        United States at the end of the month following the end of the 
        calendar quarter in which the Net Proceeds from the sale of 
        such production are received by the owner or co-owners. Royalty 
        payments may be made based upon good faith estimates of the 
        Gross Yield, Net Proceeds and the quantity of ore, 
        concentrates, or other beneficiated or fabricated products of 
        locatable minerals, subject to adjustment when the actual 
        annual Gross Yield, Net Proceeds and quantity are determined by 
        the owner or co-owners of the mining claim.
            (2) Each royalty payment or adjustment shall be accompanied 
        by a statement containing each of the following:
                    (A) the name and Bureau of Land Management serial 
                number of the mining claim or claims from which ores, 
                concentrates, solutions or beneficiated products of 
                locatable minerals subject to the royalty required in 
                this section were produced and sold for the period 
                covered by such payment or adjustment;
                    (B) the estimated (or actual, if determined) 
                quantity of such ore, concentrates, solutions or 
                beneficiated or fabricated products produced and sold 
                from such mining claim or claims for such period;
                    (C) the estimated (or actual, if determined) Gross 
                Yield from the production and sale of such ore, 
                concentrates, solutions or beneficiated products for 
                such period;
                    (D) the estimated (or actual, if determined) Net 
                Proceeds from the production and sale of such 
ores, concentrates, solutions or beneficiated products for such period, 
including an itemization of the applicable deductions described in 
paragraph (c)(2); and
                    (E) the estimated (or actual, if determined) 
                royalty due to the United States, or adjustment due to 
                the United States from such owner or co-owners, for 
                such period.
            (3) In lieu of receiving a refund under subsection (h)(2), 
        the owner of co-owners may elect to apply any adjustment due to 
        such owner or co-owners as an offset against royalties due from 
        such owner or co-owners to the United States under this Act, 
        regardless of whether such royalties are due for production and 
        sale from the same mining claim or claims.
    (g) Recordkeeping and Reporting Requirements.--
            (1) An owner, operator, or other person directly involved 
        in conducting mineral activities, transportating, purchasing, 
        or selling of locatable minerals, concentrates, or products 
        derived therefrom, subject to a royalty under this title, 
        through the point of royalty computation, shall establish and 
        maintain any records, make any reports, and provide any 
        information that the Secretary may reasonably require for the 
        purposes of implementing this title or determining compliance 
        with regulations or orders under this title. Upon the request 
        of the Secretary when conducting an audit or investigation 
        pursuant to subsection (i), the appropriate records, reports, 
        or information which may be required by this title shall be 
        made available for inspection and duplication by the Secretary.
            (2) Records required by the Secretary under this title 
        shall be maintained for three years after the records are 
        generated unless the Secretary notifies the record holder that 
        he or she has initiated an audit or investigation specifically 
        identifying and involving such records and that such records 
        must be maintained for a longer period. When an audit or 
        investigation is under way, such records shall be maintained 
        until the earlier of the date that the Secretary releases the 
        record holder of the obligation to maintain such records or the 
        date that the limitations period applicable to such audit or 
        investigation under subsection (i) expires.
    (h) Interest Assessments.--
            (1) If any royalty payments under this title are not 
        received by the Secretary on the date that such payments are 
        due, or if such payments are less than the amount due, the 
        Secretary shall charge interest on such unpaid amount. Interest 
        under this subsection shall be computed at the rate published 
        by the Department of the Treasury as the ``Treasury Current 
        Value of Funds Rate''. In the case of an underpayment or 
        partial payment, interest shall be computed and charged only on 
        the amount of the deficiency and not on the total amount, and 
        only for the number of days such payment is late. No other late 
        payment or underpayment charge or penalty shall be charged with 
        respect to royalties under this title.
            (2) In any case in which royalty payments are made in 
        excess of the amount due, or amounts are held by the Secretary 
        pending the outcome of any appeal in which the Secretary does 
        not prevail, the Secretary shall promptly refund such 
        overpayments or pay such amounts to the person or persons 
        entitled thereto, together with interest thereon for the number 
        of days such overpayment or amounts were held by the Secretary, 
        with the addition of interest charged against the United States 
        computed at the rate published by the Department of the 
        Treasury as the ``Treasury Current Value of Funds Rate''.
    (i) Audits, Payment Demands, and Limitations.--
            (1) The Secretary may conduct, after notice, any audit 
        reasonably necessary and appropriate to verify the royalty 
        payment required under this title. Notice of such audit shall 
        be provided to all owners, co-owners, and mine managers.
            (2) The Secretary shall send or issue any billing or demand 
        letter for royalty due on locatable minerals produced and sold 
        from any mining claim subject to a royalty under this title not 
        later than three years after the date such royalty was due and 
        must specifically identify the production involved, the royalty 
        allegedly due and the basis for the claim. No action, 
        proceeding or claim for royalty due on locatable minerals 
        produced and sold, or relating to such production, may be 
        brought by the United States, including but not limited to any 
        claim for additional royalties or claim of the right to offset 
        the amount of such additional royalties against amounts owed to 
        any person by the United States, unless judicial suit or 
        administrative proceedings are commenced to recover specific 
        amounts claimed to be due prior to the expiration of three 
        years from the date such royalty is alleged to have been due.
    (j) Confidentialty.--The Secretary shall maintain the 
confidentiality of all information obtained under this title.
    (k) Transitional Rules.--Any mining claim for which a patent is 
issued pursuant to subsection 204(c) shall not be subject to the 
obligation to pay the royalty pursuant to this section. Royalty 
payments for any claim processed under subsection 204(c) shall be 
suspended pending final determination of the right to patent. For any 
claim that does not qualify for the issuance of a patent under 
subsection 204(c), royalties shall be payable under this title on 
production after the date of enactment of this Act, plus interest 
computed at the rate published by the Department of the Treasury as the 
``Treasury Current Value of Funds Rate'' on production after such date 
of enactment and before the date of such determination.
    (l) Disbursement of Revenues.--Subject to appropriations, all 
receipts from royalties collected under this section shall be paid into 
a State Fund or Federal Fund in accordance with sections 501 and 502; 
until termination as provided in section 506 of this Act.
    (m) No Implied Covenants.--The owner of a mining claim subject to 
the provisions of this title shall have no obligation, expressed or 
implied, to explore for, develop, produce or market locatable minerals 
as a result of the obligation to pay royalty hereunder, and the timing, 
nature, extent and manner of exploring, developing, mining and 
marketing such locatable minerals shall be in the sole discretion of 
the claim owner.
    (n) Penalties.--Any person who withholds payment or royalties under 
this title after a final, nonappealable determination of liability may 
be liable for civil penalties of up to $5,000 per day that payment is 
withheld after becoming due.

    TITLE V--ABANDONED LOCAT- ABLE MINERALS MINE RECLAMATION PROGRAM

SEC. 501. ABANDONED LOCATABLE MINERAL MINE RECLAMATION FUND.

    (a) State Fund.--Any State within which royalties, maintenance fees 
or location fees are collected pursuant to this Act from a mining claim 
and which elects to become eligible to receive such funds shall 
establish and maintain an interest-bearing abandoned locatable mineral 
mine reclamation fund (referred to in this Act as the ``State Fund'') 
to accomplish the purposes of this title. States with existing 
abandoned locatable mineral mine reclamation programs shall qualify to 
receive funds under this Act.
    (b) Federal Fund.--There is established on the books of the 
Treasury of the United States an interest-bearing fund to be known as 
the Abandoned Locatable Minerals Mine Reclamation Fund (referred to in 
this Act as the ``Federal Fund'') which shall consist of royalty 
proceeds, maintenance fees and location fees collected from mining 
claims in a State where a State Fund has not been established or 
maintained under subsection (a).

SEC. 502. ALLOCATION AND PAYMENTS.

    (a) State Fund.--Royalties, maintenance fees and location fees 
collected pursuant to this Act shall be paid by the Secretary of the 
Treasury to the State Fund established pursuant to subsection 501(a) 
for the State where the mining is located. Payments to States under 
this subsection with respect to any funds received by the United 
States, shall be made not later than the last business day of the month 
in which such funds are warranted by the United States Treasury to the 
Secretary of the Interior as having been received, except for any 
portion of such funds which is under challenge, which shall be placed 
in a suspense account pending resolution of such challenge. Such 
warrants shall be issued by the United States Treasury not later than 
ten days after receipt of such funds by the Treasury. Funds placed in a 
suspense account which are determined to be due the United States shall 
be payable to a State Fund not later than fifteen days after such 
challenge is resolved. Any such amount placed in a suspense account 
pending resolution shall bear interest until the challenge is resolved. 
In determining the amount of payments to State Funds under this 
section, the amount of such payments shall not be reduced by any 
administrative or other costs incurred by the United States.
    (b) Federal Fund.--Royalties, maintenance fees and location fees 
collected pursuant to this Act from mining claims located in a State 
which has not established or maintained a State Fund, and such proceeds 
from mining claims located in a State for which the Secretary's 
authority has expired under subsection 506(a), shall be credited to the 
Federal Fund and distributed in accordance with subsection (c).
    (c) Transition.--Prior to the time a State establishes a State Fund 
pursuant to subsection 501(a), any funds collected from a mining claim 
within such State shall be deposited into the Federal Fund and 
allocated to such State. Once a State establishes a State Fund under 
subsection 501(a), the State allocation in the Federal Fund with 
accrued interest shall be paid by the Secretary of the Treasury to the 
State Fund in accordance with subsection (a). Commencing three years 
after the date of enactment of this Act, the Secretary of the Treasury 
shall distribute funds then accrued or which are thereafter credited to 
the Federal Fund equally among all States which maintain a State Fund 
established under subsection 501(a), and for which the Secretary of the 
Treasury's authority has not expired under subsection 506(a).

SEC. 503. ELIGIBLE AREA.

    (a) In General.--Subject to subsection (b), lands and water 
eligible for reclamation under this title shall be Federal lands that--
            (1) have been adversely affected by past mineral activities 
        on lands abandoned and left inadequately reclaimed prior to the 
        date of enactment of this Act; and
            (2) for which the State determines there is no identifiable 
        party with a continuing reclamation responsibility under State 
        or Federal laws.
    (b) Specific Sites and Areas Not Eligible.-- The following areas 
shall not be eligible for expenditures from a State Fund:
            (1) Any area subject to a plan of operations submitted or 
        approved prior to, on or after the date of enactment of this 
        Act which includes remining or reclamation of the area 
        adversely affected by past locatable mineral activities.
            (2) Any area affected by coal mining eligible for 
        reclamation expenditures pursuant to section 404 of the Surface 
        Mining Control and Reclamation Act (30 U.S.C. 1234),
            (3) Any area designated for remedial action pursuant to the 
        Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 
        7912), and
            (4) Any area that was listed on the National Priorities 
        List pursuant to the Comprehensive Environmental Response, 
        Compensation and Liability Act of 1980 (42 U.S.C. 9605) prior 
        to the date of enactment of this Act, or where the 
        Environmental Protection Agency has initiated or caused to be 
        initiated a response action pursuant to that Act.

SEC. 504. USES AND OBJECTIVES OF FUNDS.

    (a) Use of Funds.-- Moneys in a State Fund shall be used for the 
reclamation of eligible areas. For purposes of this section, 
reclamation includes--
            (1) backfilling, fencing, sealing, or otherwise controlling 
        abandoned underground mine entries to protect public health and 
        safety;
            (2) abatement, treatment or control of water pollution;
            (3) shaping, grading, contouring and revegetation of land 
        to prevent erosion and sedimentation, or to enhance fish and 
        wildlife habitat;
            (4) removal or control of toxic or hazardous materials;
            (5) analysis, curation and preservation of structures, 
        buildings, sites or objects listed or eligible for listing 
        pursuant to the National Historic Preservation Act (16 U.S.C. 
        470a); and
            (6) control or reclamation of surface subsidence due to 
        abandoned underground mines.
    (b) Priorities.-- Expenditures of moneys from a State Fund shall 
reflect the following priorities in the order stated, but shall not 
preclude, where feasible and appropriate, a combination of these 
priorities for cost-effective reclamation:
            (1) The protection of public health, safety, general 
        welfare and property from extreme danger from the adverse 
        effects of past mineral activities.
            (2) The protection of public health, safety, and general 
        welfare from the adverse effects of past mineral activities.
    (c) Liability.--No State, or a contractor for such State engaged in 
approved reclamation work under this title, or any other entity 
authorized by a State to conduct approved reclamation activities, shall 
be liable under any provision of Federal law for any costs or damages 
as a result of action taken or omitted in the course of carrying out 
reclamation pursuant to this section. This subsection shall not 
preclude liability for costs and damages as a result of gross 
negligence or intentional misconduct. For purposes of the preceding 
sentence, reckless, willful or wanton misconduct shall constitute gross 
negligence.

SEC. 505. REPORT TO CONGRESS.

    Annually, each State with a State Fund shall submit a report to the 
Congress providing an accounting of the State Fund, including 
identifying sites for which moneys in the State Fund have been spent 
during the preceding year and sites for which moneys shall be allocated 
in the following year, the amounts spent or expected to be spent on 
each such site, and an estimate of the number of eligible areas that 
remain to be reclaimed in the State.

SEC. 506. SUNSET PROVISIONS.

    (a) Termination of Authority.-- The Secretary of the Treasury's 
authority to allocate funds to a State Fund under section 502 shall 
expire on the date that the State submits a report to the Congress 
pursuant to section 505 which reports that there are no areas in the 
State which remain to be reclaimed and the Secretary of the Interior 
has verified such report.
    (b) Termination of Fund.-- Upon the termination of authority as 
provided in subsection (a) with respect to all State Funds, the Federal 
Fund shall also be terminated, and all funds thereafter shall be 
disbursed as follows:
            (1) 50 percent of such funds shall be paid into the 
        Treasury of the United States and deposited as miscellaneous 
        receipts; and
            (2) the remaining 50 percent of such funds shall be paid by 
        the Secretary of the Treasury to the state in which the mining 
        claim is located.

                      TITLE VI--MINERAL MATERIALS

SEC. 601. DETERMINATIONS.

    Section 3 of the Act of July 23, 1955 (30 U.S.C. 611), is amended 
as follows: Insert ``(a)'' before the first sentence. Add the following 
new subsection at the end thereof:
            ``(1) Subject to valid existing rights, after the date of 
        enactment of this subsection, notwithstanding the reference to 
        common varieties in subsection (a) and to the exception to such 
        term relating to a deposit of materials with some property 
        giving it distinct and special value, all deposits of mineral 
        materials referred to in such subsection, including the block 
        pumice referred to in such subsection, shall be subject to 
        disposal only under the terms and conditions of the Materials 
        Act of 1947.
            ``(2) For purposes of paragraph (1), the term `valid 
        existing rights' means that a mining claim located for any such 
        mineral material had some property giving it the distinct and 
        special value referred to in subsection (a), or as the case may 
        be, met the definition of block pumice referred to in such 
        subsection, was properly located and maintained under the 
        general mining laws prior to the date of the enactment of this 
        subsection, and was supported by a discovery of a valuable 
        mineral deposit within the meaning of the general mining laws 
        as in effect immediately prior to such date of enactment and 
        that such claim continues to be valid under this Act.''.

SEC. 602. IDENTIFIED DEPOSITS.

    The Act entitled ``An Act to provide for the disposal of materials 
on the public lands of the United States'', approved July 31, 1947 (30 
U.S.C. 602), is amended by adding at the end the following:
    ``(b) Identified Deposits.--
            ``(1) Lands known to contain valuable deposits of mineral 
        materials subject to this Act and subsequent amendments and not 
        covered by any contract, permit, or lease, for uncommon 
        varieties of mineral materials under this section or by a valid 
        mining claim for an uncommon variety of a mineral material 
        under the general mining laws shall be subject to disposition 
        by lease under this Act by the Secretary through advertisement, 
        competitive bidding, or such other methods as he may by general 
        regulations adopt, and in such reasonably compact areas as he 
        shall fix.
            ``(2) All leases will be conditioned upon--
                    ``(A) the payment by the lessee of such royalty as 
                may be fixed in the lease, not less than two percent of 
                the quantity or gross value of the output of mineral 
                materials, and
                    ``(B) the payment in advance of a rental of 25 
                cents per acre for the first calendar year or fraction 
                thereof; 50 cents per acre for the second, third, 
                fourth, and fifth years, respectively; and $1 per acre 
                per annum thereafter during the continuance of the 
                lease, such rental for that year being credited against 
                royalties accruing for that year.
            ``(3)(A) Any lease issued under this subsection shall be 
        for a term of 20 years and so long thereafter as the lessee 
        complies with the terms and conditions of the lease and upon 
        the further condition that at the end of each 20-year period 
        succeeding the date of the lease such reasonable adjustment of 
        the terms and conditions thereof may be made therein as may be 
        prescribed by the Secretary unless otherwise provided by law at 
        the expiration of such periods.
            ``(B) Leases shall be conditioned upon a minimum annual 
        production or the payment of a minimum royalty in lieu thereof, 
        except when production is interrupted by strikes, the elements, 
        or casualties not attributable to the lessee.
            ``(C) The Secretary may permit suspension of operations 
        under any such leases when marketing conditions are such that 
        the leases cannot be operated except at a loss.
            ``(D) The Secretary upon application by the lessee prior to 
        the expiration of any existing lease in good standing shall 
        amend such lease to provide for the same tenure and to contain 
        the same conditions, including adjustment at the end of each 
        20-year period succeeding the date of said lease, as provided 
        for in this subsection.
    ``(c) Other Lands.--
            ``(1) The Secretary is hereby authorized, under such rules 
        and regulations as he may prescribe, to grant to any qualified 
        applicant a prospecting permit which shall give the exclusive 
        right to prospect for mineral materials in lands belonging to 
        the United States which are not subject to subsection (b), and 
        are not covered by a contract, permit, or lease under this Act, 
        except that a prospecting permit shall not exceed a period of 2 
        years and the area to be included in such a permit shall not 
        exceed 2,560 acres of land in reasonably compact form.
            ``(2) The Secretary shall reserve and may exercise the 
        authority to cancel any prospecting permit upon failure by the 
        permittee to exercise due diligence in the prosecution of the 
        prospecting work in accordance with the terms and conditions 
        stated in the permit, and shall insert in every such permit 
        issued under the provisions of this Act appropriate provisions 
        for its cancellation by him,
            ``(3)(A) Upon showing to the satisfaction of the Secretary 
        that valuable deposits of one of the mineral materials subject 
        to the Materials Act of 1947 have been discovered by the 
        permittee within the area covered by his permit, and that such 
        land is valuable therefor, the permittee shall be entitled to a 
        lease for any or all of the land embraced in the prospecting 
        permit, at a royalty of not less than two percent of the 
        quantity or gross value of the output of the mineral materials 
        at the point of shipment to market, such lease to be taken in 
        compact form by legal subdivisions of the public land surveys, 
        or if the land be not surveyed, by survey executed at the cost 
        of the permittee in accordance with regulations prescribed by 
        the Secretary.
            ``(B) Persons holding valid mining claims for uncommon 
        varieties of mineral materials shall be entitled to receive a 
        lease under this subsection.
    ``(d) Mineral Materials Disposal Clarification.--Section 4 July 23, 
1955 (30 U.S.C. 612), is amended as follows:
            ``(1) In subsection (b) insert `and mineral material' after 
        `vegetative'.
            ``(2) In subsection (c) insert `and mineral material' after 
        `vegetative'.
    ``(e) Authorization for Disposal of Mineral Materials by 
Contract.--Section 2(a) of the Act entitled `An Act to provide for the 
disposal of materials on the public lands of the United States', 
approved July 31, 1947 (30 U.S.C. 602(a)), is amended--
            ``(1) by striking the period at the end of paragraph (3) 
        and inserting `or, if', and
            ``(2) by adding after paragraph (3) the following:
            ```(4) the material is a mineral material.'.''.

                  TITLE VII--ADMINISTRATIVE PROVISIONS

SEC. 701. EFFECTIVE DATE.

    The provisions of this Act shall take effect on the date of 
enactment of this Act, except as otherwise provided in this Act.

SEC. 702. EFFECT ON FEDERAL AND STATE LAWS.

    (a) Effect on the General Mining Laws.--The provisions of this Act 
shall supersede the general mining laws only to the extent such laws 
conflict with the requirements of this Act. Where so such conflict 
exists, the general mining laws, including all judicial and 
administrative decisions interpreting them, shall remain in full force 
and effect.
    (b) Effect on Other Federal and State Laws.--Except as provided in 
subsection (a), nothing in this Act shall be construed--
            (1) as superseding, modifying, amending or repealing any 
        other provision of Federal law, State law or Federal or State 
        regulation enacted pursuant thereto, not expressly superseded, 
        modified, amended or repealed;
            (2) without limiting the foregoing, as affecting or 
        intended to affect or in any way interfere with or modify the 
        laws of the States relating to the ownership, control, 
        appropriation, use and distribution of ground or surface waters 
        or the regulation by States of surface or ground water quality; 
        and
            (3) as affecting or modifying in any way the rights, 
        obligations or liabilities of any person under other provision 
        of law.

SEC. 703. SEVERABILITY.

    If any provision of this Act or the applicability thereof to any 
person or circumstances is held invalid, the remainder of the Act and 
the application of such provision to other persons or circumstances 
shall not be affected thereby.
                                 <all>