I 111th CONGRESS 1st Session H. R. 3201 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.

1.

Short title

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

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.