[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3201 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3201

  To amend the General Mining Law to provide for a fair return to the 
public, security of tenure to holders of mining claims and mill sites, 
      and cleanup of abandoned mine lands, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2009

    Mr. Lamborn (for himself and Mr. Bishop of Utah) introduced the 
    following bill; which was referred to the Committee on Natural 
                               Resources

_______________________________________________________________________

                                 A BILL


 
  To amend the General Mining Law to provide for a fair return to the 
public, security of tenure to holders of mining claims and mill sites, 
      and cleanup of abandoned mine 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 1. SHORT TITLE.

    This Act may be cited as the ``Locatable Mineral Royalty and 
Reclamation Act of 2009''.

SEC. 2. FINDINGS AND PURPOSE.

    The Congress finds the following:
            (1) It is in the national interest to ensure that mining of 
        locatable minerals on Federal lands occurs in a fair, 
        predictable, and efficient legal and regulatory climate to 
        ensure a secure and reliable domestic supply of minerals.
            (2) The domestic mining industry provides hundreds of 
        thousands of high-wage jobs directly and indirectly to the 
        domestic economy and those jobs, the majority of which are in 
        rural parts of our Nation, must be preserved and encouraged by 
        a sound Federal policy regarding mining on Federal lands.
            (3) Mining of locatable minerals on Federal lands should 
        provide a fair return to the government in the form of a net 
        royalty on minerals produced from new mining claims on Federal 
        lands.
            (4) Royalty funds collected from the mining of locatable 
        minerals on Federal lands should be used to fund the cleanup of 
        hardrock abandoned mine lands.
            (5) The certainty needed to attract investment in mining 
        activities on Federal lands must be provided for by ensuring 
        security of land tenure to pursue mineral activities from the 
        time of location through mine reclamation and closure.
            (6) A United States citizen has the right to enter upon 
        Federal lands open to location under the general mining laws 
        and to use and occupy those lands for the purpose of making a 
        discovery and developing a mineral deposit.
            (7) There are extensive Federal and State environmental 
        standards that apply to mining operations and these standards 
        have been found by the National Academy of Sciences to be 
        generally effective in protecting the environment.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Claim.--The term ``claim'' means an unpatented mining 
        claim, mill site, or tunnel site.
            (2) Claim holder and claimant.--The terms ``claim holder'' 
        and ``claimant'' means the owner or holder of a claim.
            (3) Federal lands.--The term ``Federal lands'' means lands 
        and interests in lands owned by the United States that are open 
        to mineral entry and location, or that were open to mineral 
        entry and location at the time of entry or location.
            (4) General mining laws.--The term ``general mining laws'' 
        means those Acts that generally comprise chapters 2, 11, 12, 
        12A, 15, and 16, and sections 161 and 162, of title 30, United 
        States Code, all Acts that are amendatory of or supplementary 
        to any of the foregoing Acts, and the judicial and 
        administrative decisions interpreting such Acts.
            (5) Locatable minerals.--The term ``locatable minerals'' 
        means those minerals owned by the United States and not subject 
        to disposition under--
                    (A) the Mineral Leasing Act (30 U.S.C. 181 et 
                seq.);
                    (B) the Geothermal Steam Act of 1970 (30 U.S.C. 
                1001 et seq.);
                    (C) the Materials Act of 1947 (30 U.S.C. 601 et 
                seq.); or
                    (D) the Mineral Leasing Act for Acquired Lands (30 
                U.S.C. 351 et seq.).
            (6) Mineral activities.--The term ``mineral activities'' 
        means any activity on Federal lands on claims with or without a 
        discovery, or off of claims, for mineral prospecting, 
        exploration, development, mining, extraction, milling, 
        beneficiation, processing, storage of mined or processed 
        materials, or reclamation activities for any locatable mineral 
        and uses reasonably incident thereto, including the 
        construction and use of roads, transmission lines, water wells, 
        pipelines, utility corridors, and other means of access across 
        Federal lands for ancillary facilities used in conjunction with 
        such activity.
            (7) Mining claim or site.--The term ``mining claim or 
        site'' means an unpatented lode claim, placer claim, mill site, 
        or tunnel site located under the general mining laws.
            (8) Person.--The term ``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.--The term ``Secretary'' means the Secretary 
        of the Interior, unless otherwise specified.

SEC. 4. LIMITATION ON PATENTS.

    (a) Mining Claims.--
            (1) Determinations required.--After the date of enactment 
        of this Act, no patent shall be issued by the United States for 
        any mining claim located under the general mining laws unless 
        the Secretary determines that, for the claim concerned--
                    (A) a patent application was filed with the 
                Secretary on or before September 30, 1994; and
                    (B) all requirements established under sections 
                2325 and 2326 of the Revised Statutes (30 U.S.C. 29 and 
                30) for vein or lode claims and sections 2329, 2330, 
                2331, and 2333 of the Revised Statutes (30 U.S.C. 35, 
                36, and 37) for placer claims were fully complied with 
                by that date.
            (2) Right to patent.--If the Secretary makes the 
        determinations referred to in subparagraphs (A) and (B) of 
        paragraph (1) for any mining claim, the holder of the claim 
        shall be entitled to the issuance of a patent in the same 
        manner and degree to which such claim holder would have been 
        entitled prior to the date of enactment of this Act, unless and 
        until such determinations are withdrawn or invalidated by the 
        Secretary or by a court of the United States.
    (b) Mill Sites.--
            (1) Determinations required.--After the date of enactment 
        of this Act, no patent shall be issued by the United States for 
        any mill site located under the general mining laws unless the 
        Secretary determines that for the mill site concerned--
                    (A) a patent application for such mill site was 
                filed with the Secretary on or before September 30, 
                1994; and
                    (B) all requirements applicable to the patent 
                application were fully complied with by September 30, 
                1994.
            (2) Right to patent.--If the Secretary makes the 
        determinations referred to in subparagraphs (A) and (B) of 
        paragraph (1) for any mill site, the holder of the mill site 
        shall be entitled to the issuance of a patent in the same 
        manner and degree to which such person would have been entitled 
        prior to the enactment of this Act, unless and until such 
        determinations are withdrawn or invalidated by the Secretary or 
        by a court of the United States.

SEC. 5. LOCATION, ABANDONED LOCATABLE MINE LAND AND MAINTENANCE 
              REQUIREMENTS.

    (a) Location Fee.--For each claim located after the date of 
enactment of this Act, a claimant shall pay the Secretary a location 
fee of $35 not later than 90 days after the date of location.
    (b) Abandoned Locatable Mine Land Fee.--Commencing the first 
calendar year after the date of enactment of this Act, a claimant shall 
pay the Secretary on or before August 31 of each year, an abandoned 
locatable mine land fee of $25 per claim.
    (c) Annual Maintenance Fee.--Commencing the first calendar year 
after the date of enactment of this Act, a claimant shall pay the 
Secretary on or before August 31 of each year, a maintenance fee of 
$125 per claim to maintain the claim for the following assessment year 
beginning at noon on September 1. Payment of such claim maintenance fee 
shall be in lieu of the assessment work requirement contained in the 
general mining laws and the related filing requirements contained in 
section 314 (a) and (c) of the Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1744 (a) and (c)).
    (d) Failure To Pay Fee.--
            (1) In general.--Failure to timely pay the location fee or 
        maintenance fee required by this section shall subject a claim 
        to forfeiture by the claim holder as provided in this 
        subsection.
            (2) Notice and opportunity to cure.--The Secretary shall 
        provide the claim holder with notice of the failure and the 
        opportunity to cure within 45 calendar days after the claim 
        holder's receipt of the notice.
            (3) Forfeiture.--Failure by the claim holder to make a 
        timely and proper payment in the amount specified in the notice 
        by the Secretary, within 45 days after the claim holder's 
        receipt of the notice, shall constitute a forfeiture of the 
        mining claim, mill site, or tunnel site by the claim holder by 
        operation of law.
    (e) Exception for Holders of Fewer Than 50 Claims.--
            (1) In general.--The claim maintenance fees required under 
        this section shall be waived or reduced in accordance with 
        paragraph (3) for a claimant who certifies in writing to the 
        Secretary that on the date the payment was due the claimant--
                    (A) was the holder of not more than 50 claims on 
                Federal lands; and
                    (B) has performed assessment work sufficient to 
                maintain the claims held by the claimant for the 
                assessment year ending on noon of September 1 of the 
                calendar year in which the maintenance fee payment was 
                due.
            (2) Holder.--As used in paragraph (1), the term ``holder'' 
        includes--
                    (A) the claimant;
                    (B) the spouse and dependent children (as defined 
                in section 152 of the Internal Revenue Code of 1986), 
                of the claimant; and
                    (C) a person affiliated with the claimant, 
                including--
                            (i) a person controlled by, controlling, or 
                        under common control with the claimant; and
                            (ii) a subsidiary or parent company or 
                        corporation of the claimant.
            (3) Waived or reduced maintenance fees.--
                    (A) 10 or fewer claims.--The maintenance fee shall 
                be waived in its entirety for 10 or fewer claims held 
                by a claimant eligible for a waiver under paragraph 
                (1).
                    (B) 11 or more claims.--
                            (i) In general.--Subject to clause (ii), 
                        the maintenance fee shall be reduced to $25 per 
                        claim for each claim in excess of 10.
                            (ii) Limitations.--The reduction in this 
                        subparagraph shall be available for no more 
                        than 50 claims held by a claimant who is 
                        eligible for a waiver under paragraph (1).
            (4) Waived or reduced abandoned locatable mine land fees.--
                    (A) 10 or fewer claims.--The abandoned locatable 
                mine land fee shall be waived in its entirety for 10 or 
                fewer claims held by a claimant eligible for a waiver 
                under paragraph (1).
                    (B) 11 or more claims.--
                            (i) In general.--Subject to clause (ii), 
                        the abandoned locatable mine land fee shall be 
                        reduced to $5 per claim for each claim in 
                        excess of 10.
                            (ii) Limitations.--The reduction in this 
                        subparagraph shall be available for no more 
                        than 50 claims held by a claimant who is 
                        eligible for a waiver under paragraph (1).
    (f) Existing Requirements.--
            (1) Payment in lieu of annual labor requirements.--The 
        third sentence of section 2324 of the Revised Statutes (30 
        U.S.C. 28) is amended by inserting ``or section 5(g) of the 
        Locatable Mineral Royalty and Reclamation Act of 2009'' after 
        ``Act of 1993''.
            (2) Federal filing requirements.--Section 314 of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744) 
        is amended--
                    (A) by striking subsection (a);
                    (B) by redesignating subsections (b), (c), and (d) 
                as subsections (a), (b), and (c), respectively; and
                    (C) in subsection (b) (as so redesignated) by 
                striking ``subsections (a) and (b)'' and inserting 
                ``subsection (a)''.
            (3) Conforming amendment.--Section 2511(e) of the Energy 
        Policy Act of 1992 (30 U.S.C. 242(e)) is amended by striking 
        the second sentence.
    (g) Effects of Payment.--
            (1) In general.--Timely payment of the location and claim 
        maintenance fees secures the rights of the holder of a mining 
        claim, mill site, or tunnel site, both prior to and after 
        discovery of valuable mineral deposits, to use and occupy 
        Federal lands under the provisions of the general mining laws 
        for all mineral activities.
            (2) Waiver of claim maintenance fee.--In the case of claim 
        holders who qualify for a waiver of payment of the claim 
        maintenance fee, timely payment of the location fee and 
        compliance with the assessment work required under the general 
        mining laws (30 U.S.C. 28-28e) secures the rights of the holder 
        of a mining claim, mill site, or tunnel site, both prior to and 
        after discovery of valuable mineral deposits, to use and occupy 
        Federal lands under the provisions of the general mining laws 
        for all mineral activities.
    (h) Relationship to Other Law.--Section 102(a)(9) of Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1701(a)(9)) is 
inapplicable to mineral activities.

SEC. 6. ROYALTY.

    (a) In General.--
            (1) Imposition of royalty.--The production of locatable 
        minerals from any mining claim located on Federal lands after 
        the date of enactment of this Act shall be subject to a royalty 
        of two percent of the net proceeds from such production.
            (2) No duty to produce.--The imposition of a royalty under 
        this section shall not create any duty to produce locatable 
        minerals from any mining claim. In no event shall the value of 
        locatable minerals not extracted from a claim or lost in 
        processing be included in ``gross yield'', as that term is 
        defined in subsection (c)(2).
            (3) Stockpiling.--The stockpiling of locatable minerals or 
        mineral products for future processing shall not constitute a 
        sale or use of such locatable minerals for determining net 
        proceeds.
    (b) Royalty Exclusion.--
            (1) Waiver for limited production.--The royalty payable 
        under this section shall be waived for any person with annual 
        net proceeds from mineral production subject to subsection (a) 
        of less than $100,000. The Secretary shall adjust the $100,000 
        limitation annually to reflect changes in the Consumer Price 
        Index published by the Bureau of Labor Statistics of the 
        Department of Labor.
            (2) Operations in two or more places.--Where mining 
        operations subject to this section are conducted in two or more 
        places by the same person, the operations shall be considered a 
        single operation the aggregate net proceeds from which shall be 
        subject to the limitation set forth in paragraph (1).
            (3) Encouragement of recovery and interest in 
        conservation.--The Secretary, for the purpose of encouraging 
        the greatest ultimate recovery of minerals and in the interest 
        of conservation of natural resources, may waive, suspend, or 
        reduce the royalty established in subsection (a) on any mining 
        claim or group of mining claims, whenever in the Secretary's 
        judgment it is necessary to do so in order to promote 
        development, or whenever in the Secretary's judgment the claim 
        or claims and other lands comprising a single operation cannot 
        be successfully operated under the royalty established in 
        subsection (a).
    (c) Definitions.--For the purposes of this section:
            (1) Net proceeds.--The term ``net proceeds'' means gross 
        yield less the sum of all deductions, determined without 
        duplication in accordance with generally accepted accounting 
        principles in the United States, for the following:
                    (A) Extracting the locatable mineral.
                    (B) Transporting the locatable mineral from the 
                claim to the place or places of reduction, 
                beneficiation, refining, and sale.
                    (C) Reduction, beneficiation, refining, and sale of 
                the locatable mineral, including expenses of replacing, 
                expanding, modifying, or changing from time to time the 
                machinery, equipment, apparatus, works, plants, and 
                facilities used for reduction, beneficiation, refining, 
                and sale of the locatable mineral.
                    (D) Marketing and delivering the locatable mineral, 
                including an allowance for commissions at rates that 
                are normal and customary in the industry.
                    (E) Maintenance and repairs of all machinery, 
                equipment, apparatus, works, plants, and facilities 
                used in extraction, reduction, beneficiation, refining, 
                transportation, and sale.
                    (F) Support personnel and support services used in 
                extraction, reduction, beneficiation, refining, 
                transportation, and sale, including without limitation, 
                accounting, assaying, drafting and mapping, computer 
                services, surveying, housing, camp, and head office 
                expenses, safety, and security.
                    (G) Engineering, sampling, and assaying pertaining 
                to development and production.
                    (H) Permitting, reclamation, environmental 
                compliance, and monitoring.
                    (I) Fire and other insurance on the machinery, 
                equipment, apparatus, works, plants, and facilities 
                described in subparagraph (E).
                    (J) Depreciation of the original capitalized cost 
                of the machinery, equipment, apparatus, works, plants, 
                and facilities described in subparagraph (E), except 
                that--
                            (i) the annual depreciation charge shall 
                        consist of amortization of the original cost in 
                        the manner consistent with the Internal Revenue 
                        Code of 1986, as amended from time to time; and
                            (ii) the probable life of the property 
                        represented by the original cost must be 
                        considered in computing the depreciation 
                        charge.
                    (K) 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 the 
                locatable mineral.
                    (L) Contributions or payments under State 
                unemployment compensation law; contributions under the 
                Federal Social Security Act; State and local real 
                property taxes, personal property taxes, and other 
                taxes, other than income taxes, applicable to mining 
                operations; severance, ad valorem, or other taxes 
                measured or levied on production; and Federal excise 
                taxes, maintenance fees, and other charges for use of 
                the Federal lands from which the locatable mineral is 
                produced.
                    (M) Developmental work upon a claim or group of 
                claims and other lands when operated as a unit.
                    (N) All royalties, overriding royalties, production 
                payments, or similar payments measured by production 
                (other than the royalty under this section) of the 
                locatable mineral paid to any person.
                    (O) Any other deduction permitted by the Secretary.
            (2) Gross yield.--The term ``gross yield'' means the 
        following, determined without duplication:
                    (A) In the case of sales of the locatable mineral 
                ore by the owner or co-owners, the actual proceeds of 
                sale of such ore.
                    (B) In the case of sales by the owner or co-owners 
                of concentrates, bullion, or other beneficiated 
                products from the locatable mineral (including 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 
                ``gross income from the property'' is determined under 
                section 613(c) of the Internal Revenue Code of 1986.
                    (C) If the locatable mineral or ore, concentrates, 
                bullion, or other beneficiated or fabricated products 
                containing the locatable mineral are actually recovered 
                by the owner or co-owners, but are used or consumed by 
                the owner or co-owners or are not sold in an arms-
                length sale, the term ``gross yield'' means the 
                reasonable fair market value of the locatable mineral 
                contained therein at the mine or wellhead, determined 
                from the first applicable of the following:
                            (i) Published or other competitive selling 
                        prices of the locatable mineral of like kind 
                        and grade.
                            (ii) Any proceeds of sale.
                            (iii) Value received in exchange for any 
                        thing or service.
                            (iv) The value of any locatable mineral in 
                        kind or used or consumed in a manufacturing 
                        process or in providing a service.
                            (v) In such other manner determined by the 
                        Secretary that arrives at a reasonable value 
                        for the locatable mineral contained therein at 
                        the mine or wellhead.
                Any 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.
            (3) Extracting and extraction.--The terms ``extracting'' 
        and ``extraction'' includes all mining and extraction methods 
        for removing the locatable mineral from the ground, including 
        placer mining, open pit mining, underground mining, leaching, 
        and solution mining.
            (4) Reduction, benefication, and refining.--The terms 
        ``reduction'', ``beneficiation'', and ``refining'' include all 
        treatment processes necessary or incidental to the mining of 
        the locatable mineral and the preparation of a commercially 
        marketable product, including crushing, milling, flotation, 
        leaching, smelting, reduction, agglomeration, refining, 
        electro-winning, and other beneficiation of the locatable 
        mineral ore or the products thereof.
            (5) Intent of deductions.--The deductions set forth in 
        paragraph (1) are intended to allow, without duplication, a 
        reasonable allowance for overhead associated with the mining 
        operations and other activities described in paragraph (1), 
        including administrative supervision, accounting, data 
        processing, personnel administration, billing and 
        recordkeeping, tax administration, legal services, rentals and 
        other charges for office and records storage space, 
        telecommunications service, office equipment and supplies.
    (d) Allocations of Net Proceeds, Gross Yield and Allowable 
Deductions.--Ores or solutions of locatable minerals subject to a 
royalty under this section may be extracted from mines that include 
mining claims and lands that are not subject to a royalty under this 
section. The locatable minerals from mining claims subject to a royalty 
under this section, and the ores and solutions thereof, may be 
commingled with locatable minerals, ores, or solutions from mining on 
such other mining claims and lands. In any such case, for purposes of 
determining the amount of a royalty payable under this section--
            (1) prior to commingling, the operator shall first sample, 
        weigh or measure, and assay the same in accordance with 
        accepted industry standards; and
            (2) gross yield, allowable deductions, and net proceeds for 
        royalty purposes shall be allocated in proportion to the 
        quantity of locatable minerals produced from the mining claims 
        subject to a royalty under this section compared to the mining 
        claims and other lands not subject to a royalty under this 
        section, 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 section shall be liable 
for such royalty to the extent of the interest in such claim owned. No 
person (including any contract miner) who makes any royalty payment 
under this section attributable to the interest of any owner or co-
owner liable therefore shall become liable to the United States for 
such royalty payment as a result of making such payment to the United 
States on behalf of such owner or co-owner.
    (f) Time and Manner of Payment.--
            (1) In general.--
                    (A) Time of payment.--Royalty payments for 
                production from any mining claim subject to a royalty 
                payable under this section 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 determined in respect of 
                the owner or co-owners thereof under subsection (c)(1).
                    (B) Payment based on estimates.--Royalty payments 
                under this section 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 under subsection (h)(3).
            (2) Required statement.--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 a royalty under this 
                section were calculated 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 for which net 
                proceeds were calculated for such period.
                    (C) The estimated (or actual, if determined) gross 
                yield from such ore, concentrates, solutions, or 
                beneficiated products for such period.
                    (D) The estimated (or actual, if determined) net 
                proceeds from such ores, concentrates, solutions, or 
                beneficiated products for such period, including an 
                itemization of the applicable deductions described in 
                subsection (c)(1).
                    (E) The estimated (or actual, if determined) 
                royalty due to the United States, or adjustment due to 
                the United States, for such period.
                    (F) The amount of any royalty collected and paid to 
                the United States on behalf of any co-owner liable 
                therefore under subsection (e).
            (3) Adjustment in lieu of refund.--In lieu of receiving a 
        refund under subsection (h), the owner or 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 section, regardless of whether 
        such royalties are due for production and sale from the same 
        mining claim or claims.
    (g) Recordkeeping and Reporting Requirements.--
            (1) In general.--An owner or co-owner subject to a royalty 
        under this section 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 section or determining compliance with 
        regulations or orders under this section. Upon the request of 
        the Secretary when conducting an audit or investigation 
        pursuant to subsection (i), the appropriate records, reports, 
        or information required by this subsection shall be made 
        available for inspection and duplication by the Secretary.
            (2) Maintenance.--Records required by the Secretary under 
        this section shall be maintained for 3 years after the date the 
        royalty to which such records relate was due, unless the 
        Secretary notifies the record holder that the Secretary 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) In general.--
                    (A) Authority to charge interest.--If royalty 
                payments under this section 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.
                    (B) Computation.--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''.
                    (C) Underpayment or partial payment.--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.
                    (D) Other charge or penalty prohibited.--No other 
                late payment or underpayment charge or penalty shall be 
                charged with respect to royalties under this section.
            (2) Refund of overpayment.--In any case in which royalty 
        payments under this section 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''.
            (3) Reconciliation.--
                    (A) In general.--Within 90 days after the end of 
                each calendar year, the owner or co-owner shall provide 
                an annual reconciliation of the quarterly payments of 
                royalty under this section made during the preceding 
                calendar year.
                    (B) Overpayments and underpayments.--At the time of 
                the annual reconciliation, any overpayments shall be 
                credited to the next quarterly payments and any 
                underpayments shall be paid.
    (i) Audits, Payment Demands, and Limitations.--
            (1) In general.--The Secretary may conduct, after notice, 
        any audit reasonably necessary and appropriate to verify the 
        payments required under this section.
            (2) Payment demands.--The Secretary shall send or issue any 
        billing or demand letter for royalty due on locatable minerals 
        calculated with respect to any mining claim subject to a 
        royalty required by this section not later than 3 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.
            (3) Limitation on actions, proceedings, and claims.--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 3 years 
        from the date such royalty is alleged to have been due.
    (j) Owner and Co-owner Defined.--As used in this section, the terms 
``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 production from the claim, but shall not include a person 
that is engaged in contract mining for such owner or co-owners or a 
person that owns only a royalty, overriding royalty, production 
payment, or similar interest or payment measured by production from 
such claim.

SEC. 7. ABANDONED LOCATABLE MINE RECLAMATION FUNDS.

    (a) Establishment; Administration; State Funds.--There is created 
on the books of the Treasury of the United States a separate account to 
be known as the Abandoned Locatable Mine Reclamation Fund (hereinafter 
in this section referred to as the ``fund'') which shall be 
administered by the Secretary of the Interior to provide funds for the 
Abandoned Locatable Mine Reclamation Program established by this Act. A 
State or tribal abandoned mine reclamation fund (in this section 
referred to as a ``State fund'') shall be established pursuant to a 
State or Indian tribe program approved under section 8(e) by each State 
and each Indian tribe that receives a grant under this Act, and shall 
be comprised of the funds provided as such grant.
    (b) Sources of Deposits to Fund.--There shall be deposited into the 
fund amounts derived from--
            (1) the abandoned locatable mine land fee levied under 
        section 5;
            (2) location and claim maintenance fees in excess of that 
        amount appropriated annually for mining law administration;
            (3) royalties required under section 6, and any interest 
        due to late payment or underpayment of royalties and any 
        earnings on such royalties; and
            (4) donations by persons, corporations, associations, and 
        foundations for the purposes of this Act.
    (c) Distribution of Funds.--One hundred percent of the abandoned 
locatable mine land fees deposited in the fund shall be available for 
grants under section 8. All other deposits into the fund shall be 
available subject to appropriations as authorized in section 8(f).

SEC. 8. ABANDONED LOCATABLE MINERALS MINE RECLAMATION PROGRAM.

    (a) Establishment.--There is established a program to be known as 
the Abandoned Locatable Minerals Mine Reclamation Program (referred to 
in this section as the ``Program''). The Program shall be administered 
by the Secretary acting through the Director of the Office of Surface 
Mining.
    (b) Description of Program.--
            (1) In general.--The Secretary may under the Program make 
        grants for the reclamation of land and water resources 
        adversely affected by past hardrock mining to--
                    (A) eligible States and Indian tribes; and
                    (B) Federal agencies.
            (2) Use.--A grant under this subsection may be used for--
                    (A) the reclamation of abandoned hardrock surface 
                mined areas and associated adversely affected water 
                resources;
                    (B) the reclamation of abandoned hardrock milling 
                and processing areas and associated adversely affected 
                water resources;
                    (C) the sealing, filling, and grading of abandoned 
                locatable deep mine entries;
                    (D) the planting of land adversely affected by past 
                locatable mining to prevent erosion and sedimentation;
                    (E) the prevention, abatement, treatment, and 
                control of water pollution created by abandoned 
                locatable mine drainage;
                    (F) the control of surface subsidence due to 
                abandoned locatable deep mines; and
                    (G) such other projects as may be necessary to 
                carry out this Act.
            (3) Priorities.--In making grants under this section, the 
        Secretary shall give priority (in order of priority stated) 
        to--
                    (A) the protection of public health, safety, and 
                general welfare from the adverse effects of past 
                locatable mineral mining practices; and
                    (B) the reclamation of land and water resources 
                previously degraded by the adverse effects of past 
                locatable minerals and mineral materials mining 
                practices.
    (c) Eligible Areas.--
            (1) Eligibility in general.--Subject to paragraph (2), 
        grants under this section may be used to carry out reclamation 
        activities only on land and water in a State or on Indian 
        tribal land--
                    (A) that was mined or processed for locatable 
                minerals and mineral materials, and was abandoned or 
                left in an inadequate reclamation status prior to the 
                date of enactment of this section;
                    (B) for which the Secretary, a State, or an Indian 
                tribe makes a determination that there is no continuing 
                reclamation responsibility under Federal or State law; 
                and
                    (C) for which it can be established that the land 
                or water does not contain minerals that could 
                economically be extracted through reprocessing or 
                remining, unless this subparagraph conflicts with the 
                priorities set forth under subsection (b)(2).
            (2) Specific sites and areas not eligible.--Areas 
        designated for remedial action pursuant to the Uranium Mill 
        Tailing Radiation Control Act of 1978 (42 U.S.C. 7901 et seq.) 
        or that have been listed for remedial action pursuant to the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.) shall not be 
        eligible for expenditure under this section.
    (d) Allocations and Expenditures.--
            (1) Allocations.--
                    (A) In general.--The Secretary shall allocate funds 
                under this section for each fiscal year in the form 
                of--
                            (i) grants to eligible States or Indian 
                        tribes in accordance with this section (other 
                        than paragraph (2));
                            (ii) grants to other States and Indian 
                        tribes in accordance with paragraph (2); and
                            (iii) grants to Federal agencies with 
                        abandoned mine lands programs for hardrock 
                        mines (locatable minerals) and mineral 
                        materials.
                    (B) States and indian tribes without a state 
                fund.--States and Indian tribes that have not 
                established or maintained a State fund shall be 
                eligible for grants from the Federal fund under 
                paragraph (2).
                    (C) Distribution.--The Secretary shall distribute 
                the funds to eligible States, other States, Indian 
                tribes, and Federal agencies giving due consideration 
                to the priorities stated in subsection (b)(2) according 
                to the following schedule:
                            (i) 60 percent to States and Indian tribes 
                        that are eligible States or Indian tribes under 
                        subsection (e).
                            (ii) 15 percent to other States and Indian 
                        tribes in accordance with paragraph (2).
                            (iii) 25 percent to Federal agencies with 
                        abandoned mine lands programs for hardrock 
                        mines (locatable minerals) and mineral 
                        materials.
            (2) Direct federal expenditures from federal fund.--The 
        Secretary shall make grants to States and Indian tribes that 
        are not eligible States or Indian tribes under subsection (e) 
        based on the greatest need for the funds pursuant to the 
        priorities stated in subsection (b)(2).
    (e) State and Tribal Reclamation Programs.--
            (1) Eligible state or indian tribe defined.--For the 
        purpose of this section, the term ``eligible State or Indian 
        tribe'' means a State or Indian tribe that the Secretary 
        determines meets each of the following requirements:
                    (A) Within the State or Indian tribal lands there 
                are mined lands, waters, and facilities eligible for 
                reclamation under subsection (c).
                    (B) The State or Indian tribe has developed an 
                inventory of affected areas following the priorities 
                established under subsection (b)(2).
                    (C) The State or Indian tribe has established, and 
                the Secretary has approved, a State or Indian tribe 
                abandoned locatable minerals and mineral materials mine 
                reclamation program for the purpose of receiving and 
                administering grants under this section, including by 
                establishing and maintaining a State fund in accordance 
                with section 7(a).
            (2) Monitoring.--The Secretary shall monitor the 
        expenditure of State and Indian tribe grants to ensure that the 
        grants are being utilized to carry out this Act.
            (3) State and indian tribe programs.--The Secretary shall 
        approve any State or Indian tribe abandoned locatable minerals 
        mine reclamation program submitted to the Secretary by a State 
        or Indian tribe under this section if the Secretary finds that 
        the State or Indian tribe has the means and necessary State or 
        tribal legislation to implement the program and that the 
        program complies with this section.
            (4) Approval of existing programs.--Any State program for 
        reclamation of abandoned mines approved under title IV of the 
        Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
        1231 et seq.) before the date of enactment of this Act and in 
        good standing with the Secretary as of that date shall be 
        considered approved under this title.
    (f) Authorization of Appropriations.--
            (1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as are necessary to 
        carry out this section.
            (2) Limitation.--The amount annually authorized to be 
        appropriated under this subsection shall not exceed the sums 
        paid into the Treasury of the United States, pursuant to 
        section 7 for the fiscal year preceding the authorization.

SEC. 9. ESTABLISHMENT OF OFFICE OF ECONOMIC GEOLOGY.

    (a) In General.--From the existing staff and budget assets of the 
Department of the Interior and the United States Geological Survey, the 
Secretary shall within 90 days after the date of enactment of this Act 
establish the Office of Economic Geology, which shall be directly 
supervised by the Director of the United Sates Geological Survey.
    (b) Functions.--
            (1) In general.--The Office of Economic Geology shall have 
        responsibility for all policy, planning, and program direction 
        for all of the activities of the energy and mineral resource 
        programs, including research, within the United States 
        Geological Survey. The Office and shall have direct 
        responsibility for--
                    (A) the National Mineral Resource Inventory 
                required by section 10; and
                    (B) all energy resource surveys, studies, 
                investigations or inventories assigned to the United 
                States Geological Survey by legislation.
            (2) In general.--The Director of the United States 
        Geological Survey, through the Office of Economic Geology, 
        shall annually prepare, publish, and submit to the Congress a 
        report on the state of the domestic exploration, mining, 
        minerals, and mineral reclamation industries, including--
                    (A) a statement of the trend in utilization and 
                depletion of the domestic supplies of mineral 
                commodities;
                    (B) a description of ongoing research, studies, 
                investigations, and inventories being carried out under 
                the direction of the Office; and
                    (C) a detailed report on the status of the National 
                Minerals Inventory and Assessment Program established 
                by section 10.

SEC. 10. MANDATORY NATIONAL COOPERATIVE MINERAL RESOURCE INVENTORY AND 
              ASSESSMENT PROGRAM.

    (a) In General.--The Secretary shall conduct quantitative national 
minerals assessments of the mineral resources in the United States and 
insular areas on a recurring basis to ensure adequate knowledge of all 
potential and actual domestic mineral supplies and to provide for 
effective stewardship of the Nation's resources. All such assessments 
shall be cooperative activities that provide funding to non-Federal 
participants, including State governments, academic institutions, and 
private persons, at a rate of not less than $2 in Federal funds for 
each dollar of non-Federal funds expended to carry out the assessments.
    (b) Preparation for Assessments.--Not later than 90 days after the 
date of enactment of this Act, the Secretary, in advance of the 
national assessments, shall direct appropriate personnel of the 
Department of the Interior--
            (1) to identify all critical commodities to be assessed on 
        a priority basis, using the process identified by the National 
        Academy report entitled ``Minerals, Critical Minerals, and the 
        U.S. Economy'';
            (2) update all existing mineral deposit models and develop 
        such new ones found, after public comment;
            (3) conduct historical analyses pertaining to exploration 
        and discovery of the mineral deposits described in the existing 
        mineral deposit models and any newly developed, paying 
        particular attention to those containing critical commodities 
        identified under paragraph (1), including making of estimates 
        of exploration expenditures; and
            (4) update, maintain, supplement, and expand on a 
        continuing basis, the information contained in USGS 
        Professional Paper 820, entitled ``United States Mineral 
        Resources''.
    (c) Update of Methodology and Software.--The Secretary shall ensure 
that the analytical methodology and software critical to conducting the 
assessment is updated, and shall develop economic sensitivity measures 
to filter and refine numerical assessment data and develop measures of 
assessment uncertainty.
    (d) Digitization; Global Mineral Resource Context.--The Secretary 
shall digitally systemize national-scale earth science data and develop 
a conceptual framework for placing the updated national mineral 
resource assessment in the context of a global mineral resource 
assessment.
    (e) Public Input.--The Secretary shall engage the general public 
and users of the resource assessment and solicit input concerning how 
best to develop, conduct, and communicate the results of the 
assessment.

SEC. 11. URANIUM POLICY SUMMIT.

    (a) Short Title.--This section may be cited as the ``National 
Uranium Summit Act''.
    (b) Findings.--The Congress finds the following:
            (1) It is necessary to preserve access to domestic uranium 
        reserves and resources in order to meet the United States' 
        demand for clean noncarbon emitting energy. Doing so will 
        contribute to the Nation's effort to seek energy independence 
        and enhance our national and economic security.
            (2) United States utilities currently use approximately 
        56,000,000 pounds of uranium each year. Meanwhile, total United 
        States uranium production is only approximately 3,000,000 to 
        4,000,000 pounds each year, or less than 10 percent of the 
        Nation's annual need.
            (3) To meet the United States demand for uranium, the 
        United States imports uranium from Russia, Canada, Australia, 
        and Kazakhstan. In 2004, nearly 50 percent of imported uranium 
        came from Russia.
            (4) If climate change legislation results in a doubling of 
        our domestic nuclear energy production, we would need to 
        increase our domestic production by a factor of 10 simply to 
        supply one third of our demand.
            (5) American industry can easily produce 20,000,000 to 
        30,000,000 pounds of uranium each year from domestic resources.
            (6) To produce those resources we must preserve access to 
        the Nation's uranium reserves and resources found within the 
        northern Arizona strip, northwestern New Mexico, Wyoming, 
        Virginia, and other parts of the United States.
            (7) The Arizona strip region, located in the Utah-Arizona 
        border region, is estimated to contain a resource endowment of 
        375,000,000 pounds of uranium oxide (United States Geological 
        Survey Circular 1051), making it the second most important 
        uranium region in the United States after to Wyoming. The 
        energy potential of this quantity of uranium rivals the energy 
        equivalence of the total recoverable oil discovered at Prudhoe 
        Bay Alaska, the largest oil field in North America. This 
        quantity of uranium comprises over 40 percent of the Nation's 
        estimated uranium resource endowment, and Arizona Strip area 
        uranium is by far the highest grade uranium nationally. 
        Development of these resources would promote energy 
        independence and protect our national security.
            (8) Development of these resources would prevent the United 
        States from being over reliant on less stable foreign sources 
        of uranium.
            (9) The importance of developing these resources is crucial 
        as the rest of the world is embracing nuclear power, including 
        China, India, Russia, Europe, the Middle East, Japan, and 
        Korea, resulting in a exponential demand for known and 
        undiscovered uranium resources.
    (c) Convening of Uranium Policy Summit.--
            (1) In general.--The Secretary of the Interior, working 
        with the Secretary of Energy, shall convene a national summit 
        on uranium by no later than 180 days after the date of the 
        enactment of this Act, to produce a report for Congress by no 
        later than 1 year after the date of the enactment of this Act 
        that includes an assessment of the Nation's uranium resources 
        and provides policy recommendations to ensure access to these 
        resources for private sector development in an environmentally 
        responsible manner. A principal policy objective of the summit 
        and report shall be to domestically produce enough uranium to 
        meet 30 percent of our national uranium demand by 2030.
            (2) Participants.--The national summit on uranium shall 
        include--
                    (A) representatives from mining, enrichment, 
                utility, and disposal sectors of the uranium industry; 
                and
                    (B) experts in hydrology, geology, mine 
                reclamation, and safety.
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